Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | G | |
Entity Registrant Name | GENPACT LTD | |
Entity Central Index Key | 1,398,659 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 212,690,181 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 467,504 | $ 461,788 |
Accounts receivable, net | 549,438 | 525,754 |
Deferred tax assets | 35,529 | 45,486 |
Prepaid expenses and other current assets | 183,048 | 155,480 |
Total current assets | 1,235,519 | 1,188,508 |
Property, plant and equipment, net | 163,848 | 175,936 |
Deferred tax assets | 75,587 | 59,135 |
Investment in equity affiliates | 5,747 | 494 |
Intangible assets, net | 102,933 | 114,544 |
Goodwill | 1,042,539 | 1,057,214 |
Other assets | 162,832 | 146,706 |
Total assets | 2,789,005 | 2,742,537 |
Current liabilities | ||
Short-term borrowings | 21,500 | 135,000 |
Current portion of long-term debt | 39,122 | 4,288 |
Accounts payable | 15,288 | 15,544 |
Income taxes payable | 71,852 | 13,586 |
Deferred tax liabilities | 1,394 | 1,239 |
Accrued expenses and other current liabilities | 436,825 | 452,457 |
Total current liabilities | 585,981 | 622,114 |
Long-term debt, less current portion | 747,118 | 649,314 |
Deferred tax liabilities | 6,266 | 6,671 |
Other liabilities | 168,289 | 179,302 |
Total liabilities | $ 1,507,654 | $ 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 213,612,787 issued and outstanding as of December 31, 2014 and September 30, 2015, respectively | $ 2,133 | $ 2,184 |
Additional paid-in capital | 1,322,959 | 1,296,730 |
Retained earnings | 415,003 | 398,706 |
Accumulated other comprehensive income (loss) | (458,744) | (412,484) |
Genpact Limited shareholders' equity | 1,281,351 | 1,285,136 |
Non-controlling interest | 0 | 0 |
Total equity | $ 1,281,351 | $ 1,285,136 |
Commitments and contingencies | ||
Total liabilities and equity | $ 2,789,005 | $ 2,742,537 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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 | 213,612,787 | 218,684,205 |
Common shares, outstanding | 213,612,787 | 218,684,205 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net revenues | ||||
Net revenues from services | $ 617,831 | $ 588,107 | $ 1,814,516 | $ 1,677,908 |
Cost of revenue | ||||
Services | 375,830 | 354,475 | 1,099,610 | 1,018,889 |
Gross profit | 242,001 | 233,632 | 714,906 | 659,019 |
Operating expenses: | ||||
Selling, general and administrative expenses | 144,723 | 153,148 | 442,701 | 418,361 |
Amortization of acquired intangible assets | 7,219 | 7,989 | 21,875 | 20,617 |
Other operating (income) expense, net | 2,716 | (372) | (416) | (3,124) |
Income from operations | 87,343 | 72,867 | 250,746 | 223,165 |
Foreign exchange (gains) losses, net | (4,210) | 4,671 | (4,098) | 12,093 |
Other income (expense), net | (1,868) | (6,439) | (26,976) | (19,477) |
Income before equity-method investment activity, net and income tax expense | 89,685 | 61,757 | 227,868 | 191,595 |
Loss (gain) on equity-method investment activity, net | 3,432 | (33) | 7,995 | (87) |
Income before income tax expense | 86,253 | 61,790 | 219,873 | 191,682 |
Income tax expense | 18,203 | 15,124 | 44,469 | 45,263 |
Net income | 68,050 | 46,666 | 175,404 | 146,419 |
Net income (loss) attributable to non-controlling interest | 13 | 169 | ||
Net income attributable to Genpact Limited shareholders | 68,050 | 46,653 | 175,404 | 146,250 |
Net income available to Genpact Limited common shareholders | $ 68,050 | $ 46,653 | $ 175,404 | $ 146,250 |
Earnings per common share attributable to Genpact Limited common shareholders | ||||
Basic | $ 0.32 | $ 0.22 | $ 0.80 | $ 0.66 |
Diluted | $ 0.31 | $ 0.21 | $ 0.80 | $ 0.65 |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | ||||
Basic | 215,311,322 | 216,472,908 | 217,909,722 | 222,036,262 |
Diluted | 217,595,704 | 220,535,530 | 220,301,712 | 226,440,350 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 68,050 | $ 46,666 | $ 175,404 | $ 146,419 |
Other comprehensive income: | ||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (507) | 14,757 | 11,153 | 77,337 |
Other comprehensive income (loss) | (46,260) | 66,132 | ||
Non-controlling interest | ||||
Net income | 13 | 169 | ||
Other comprehensive income: | ||||
Currency translation adjustments | (1) | (11) | ||
Other comprehensive income (loss) | (1) | (11) | ||
Comprehensive income (loss) | 12 | 158 | ||
Parent Company | ||||
Net income | 68,050 | 46,653 | 175,404 | 146,250 |
Other comprehensive income: | ||||
Currency translation adjustments | (36,503) | (30,386) | (57,173) | (11,395) |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (507) | 14,757 | 11,153 | 77,337 |
Retirement benefits, net of taxes | (352) | 45 | (240) | 201 |
Other comprehensive income (loss) | (37,362) | (15,584) | (46,260) | 66,143 |
Comprehensive income (loss) | $ 30,688 | $ 31,069 | $ 129,144 | $ 212,393 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common shares | Additional Paid- in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling interest |
Beginning balance, value (in shares) at Dec. 31, 2013 | 231,262,576 | |||||
Beginning balance, value at Dec. 31, 2013 | $ 1,324,068 | $ 2,310 | $ 1,268,344 | $ 511,699 | $ (459,614) | $ 1,329 |
Issuance of common shares upon exercise of options (Note 15) (in shares) | 1,448,044 | |||||
Issuance of common shares upon exercise of options (Note 15) | 4,022 | $ 14 | 4,008 | |||
Issuance of common shares under the employee stock purchase plan (Note 15) (in shares) | 117,305 | |||||
Issuance of common shares under the employee stock purchase plan (Note 15) | 1,793 | $ 1 | 1,792 | |||
Net settlement on vesting of restricted share units (Note 15) | (910) | $ 1 | (911) | |||
Net settlement on vesting of restricted share units (Note 15), shares | 131,070 | |||||
Net settlement on vesting of performance units (Note 15) | (6,491) | $ 9 | (6,500) | |||
Net settlement on vesting of performance units (Note 15), shares | 913,939 | |||||
Stock repurchased and retired (Note 16) | (302,625) | $ (173) | (302,452) | |||
Stock repurchased and retired ( Note16) (in shares) | (17,292,842) | |||||
Expenses related to stock purchase (Note 16) | (2,543) | (2,543) | ||||
Distribution to non-controlling interest | (1,487) | (1,487) | ||||
Stock-based compensation expense (Note 15) | 20,153 | 20,153 | ||||
Comprehensive income: | ||||||
Net income | 146,419 | 146,250 | 169 | |||
Other comprehensive income | 66,132 | 66,143 | $ (11) | |||
End balance, value (in shares) at Sep. 30, 2014 | 216,580,092 | |||||
End balance, value at Sep. 30, 2014 | $ 1,248,531 | $ 2,162 | 1,286,886 | 352,954 | (393,471) | |
Beginning balance, value (in shares) at Dec. 31, 2014 | 218,684,205 | 218,684,205 | ||||
Beginning balance, value at Dec. 31, 2014 | $ 1,285,136 | $ 2,184 | 1,296,730 | 398,706 | (412,484) | |
Issuance of common shares upon exercise of options (Note 15) (in shares) | 931,067 | 931,067 | ||||
Issuance of common shares upon exercise of options (Note 15) | $ 8,058 | $ 9 | 8,049 | |||
Issuance of common shares under the employee stock purchase plan (Note 15) (in shares) | 97,603 | |||||
Issuance of common shares under the employee stock purchase plan (Note 15) | 1,982 | $ 1 | 1,981 | |||
Net settlement on vesting of restricted share units (Note 15) | (1,300) | $ 2 | (1,302) | |||
Net settlement on vesting of restricted share units (Note 15), shares | 163,951 | |||||
Net settlement on vesting of performance units (Note 15) | $ 8 | (8) | ||||
Net settlement on vesting of performance units (Note 15), shares | 846,114 | |||||
Stock repurchased and retired (Note 16) | $ (159,036) | $ (71) | (158,965) | |||
Stock repurchased and retired ( Note16) (in shares) | (7,110,153) | (7,110,153) | ||||
Expenses related to stock purchase (Note 16) | $ (142) | (142) | ||||
Stock-based compensation expense (Note 15) | 17,509 | 17,509 | ||||
Comprehensive income: | ||||||
Net income | 175,404 | 175,404 | ||||
Other comprehensive income | $ (46,260) | (46,260) | ||||
End balance, value (in shares) at Sep. 30, 2015 | 213,612,787 | 213,612,787 | ||||
End balance, value at Sep. 30, 2015 | $ 1,281,351 | $ 2,133 | $ 1,322,959 | $ 415,003 | $ (458,744) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities | ||
Net income attributable to Genpact Limited shareholders | $ 175,404 | $ 146,250 |
Net income attributable to non-controlling interest | 169 | |
Net income | 175,404 | 146,419 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 40,185 | 37,784 |
Amortization of debt issuance costs (including loss on extinguishment of debt) | 13,154 | 2,425 |
Amortization of acquired intangible assets | 21,875 | 20,617 |
Intangible asset write-down | 10,714 | |
Reserve for doubtful receivables | 1,493 | 2,322 |
Unrealized (gain) loss on revaluation of foreign currency asset/liability | (6,320) | 4,873 |
Equity-method investment activity, net | 7,995 | (87) |
Stock-based compensation expense | 17,509 | 20,153 |
Deferred income taxes | (15,958) | (6,583) |
Others, net | (275) | 1,133 |
Change in operating assets and liabilities: | ||
Increase in accounts receivable | (34,282) | (24,328) |
Increase in prepaid expenses and other current assets and other assets | (46,157) | (65,973) |
Increase (decrease) in accounts payable | 1,255 | (5,563) |
Increase in accrued expenses and other current liabilities and other liabilities | 6,952 | 5,125 |
Increase in income taxes payable | 60,036 | 40,486 |
Net cash provided by operating activities | 253,580 | 178,803 |
Investing activities | ||
Purchase of property, plant and equipment | (44,880) | (48,192) |
Proceeds from sale of property, plant and equipment | 1,353 | 550 |
Investment in equity affiliates | (13,520) | |
Short-term deposits placed | (25,000) | |
Payment for business acquisitions, net of cash acquired | (21,363) | (123,701) |
Net cash used for investing activities | (78,410) | (196,343) |
Financing activities | ||
Repayment of capital lease obligations | (1,645) | (1,525) |
Payment of debt issuance and refinancing costs | (6,584) | |
Proceeds from long-term debt | 800,000 | |
Repayment of long-term debt | (674,875) | (5,062) |
Proceeds from short-term borrowings | 1,451,500 | 195,000 |
Repayment of short-term borrowings | (1,565,000) | (30,000) |
Proceeds from issuance of common shares under stock-based compensation plans | 10,040 | 11,866 |
Payment for net settlement of stock-based awards | (6,826) | (15,174) |
Payment of earn-out consideration | (230) | (1,088) |
Distribution to non-controlling interest | (1,487) | |
Payment for stock purchased and retired | (159,036) | (302,625) |
Payment for expenses related to stock purchase | (142) | (2,543) |
Net cash used for financing activities | (152,798) | (152,638) |
Effect of exchange rate changes | (16,656) | (1,899) |
Net increase/(decrease) in cash and cash equivalents | 22,372 | (170,178) |
Cash and cash equivalents at the beginning of the period | 461,788 | 571,276 |
Cash and cash equivalents at the end of the period | 467,504 | 399,199 |
Supplementary information | ||
Cash paid during the period for interest | 17,304 | 20,152 |
Cash paid during the period for income taxes | 38,735 | 64,176 |
Property, plant and equipment acquired under capital lease obligations | $ 1,362 | $ 1,840 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization | 1. Organization The Company is a former division of the General Electric Company and has served GE businesses since 1997. Prior to December 30, 2004, the business of the Company was conducted through various entities and divisions of 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 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 General Atlantic (“GA”) and Oak Hill Capital Partners (“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 GA and 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.” The 2012 credit facility was amended in 2013, and in June 2015 the Company entered into a new credit facility as described in Note 12. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 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 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 non-controlling interest disclosed in the accompanying unaudited interim consolidated financial statements represents the non-controlling partners’ interest in the operation of Genpact Netherlands B.V. and the profits or losses associated with such non-controlling interest. The non-controlling partners of Genpact Netherlands B.V. are individually liable for the tax obligations on their shares of profit as it is a partnership. Accordingly, non-controlling 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 non-controlling interest, as a result of which the Company has 100% control of Genpact Netherlands B.V. (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 and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. Intangible assets acquired individually or with a group of other assets or in a business combination 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, 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 18% of receivables as of December 31, 2014 and September 30, 2015, respectively. GE accounted for 21% and 19% of revenues for the nine months ended September 30, 2014 and 2015, respectively, and 20% and 19% of revenues for the three months ended September 30, 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
Business acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Japan Finance and Accounting Service Delivery | |
Business acquisitions | 3. Business acquisitions (a) Acquisition of Wealth Management business in the U.K. On August 18, 2015, the Company acquired certain assets and assumed certain liabilities from Citibank, N.A. comprising a portion of its U.K. wealth management operations for cash consideration of $3,418, which amount was adjusted to account for certain employee-related liabilities. Together with the asset purchase, the Company hired certain U.K.-based employees of the seller. With this transaction, the Company has expanded upon its end-to-end, technology-enabled wealth management service offering acquired from Citibank in January 2015, described below. In connection with the transaction, the Company recorded $2,200 in customer-related intangible assets, which have a weighted average amortization period of eight years and against which a deferred tax liability of $440 has been recorded. Goodwill arising from the acquisition amounted to $1,209, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. In connection with the transaction the Company also acquired property, plant and equipment with a value of $1,059 and assumed certain employee-related liabilities amounting to $610. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s Consolidated Financial Statements with effect from August 18, 2015, the date of the acquisition. As of September 30, 2015, $226 is receivable from the seller with respect to an employee-related liability, representing a purchase price adjustment. (b) Acquisition of delivery center in Slovakia On April 1, 2015, the Company acquired certain assets and assumed certain liabilities of a finance-and-accounting service delivery center in Bratislava, Slovakia, for cash consideration of $6,100. As part of the transaction, the Company hired certain employees of the seller. There are no contingent consideration arrangements in connection with the acquisition. This acquisition strengthens the Company’s finance-and-accounting services domain expertise in the consumer product goods industry and adds incremental European language capacity. In connection with the transaction, the Company recorded $3,000 in customer-related intangible assets, which have an amortization period of five years. Goodwill arising from the acquisition amounted to $3,065, which has been allocated to the Company’s European reporting unit and is deductible for tax purposes. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s Consolidated Financial Statements with effect from April 1, 2015, the date of the acquisition. (c) Acquisition of Wealth Management business in the U.S. On January 16, 2015, the Company acquired certain assets and assumed certain liabilities from Citibank, N.A. comprising a portion of its U.S. wealth management operations for cash consideration of $11,678. Together with its asset purchase, 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. In connection with the transaction, 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, which 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 of $798 have been included in selling, general and administrative expenses as incurred. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s Consolidated Financial Statements with effect from January 16, 2015, the date of the acquisition. (d) Acquisition of delivery center in Japan On November 4, 2014, the Company acquired a finance-and-accounting service delivery center 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 closing net assets value and preliminary adjustment for pension underfunding $ 10,539 Fair value of contingent earn-out consideration (ranging from $0 to $15,750) 11,198 Total preliminary estimated purchase consideration $ 21,737 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 the Company paid at the closing of the acquisition was $7,108, net of cash acquired of $3,491. This acquisition expands the Company’s presence in Japan and strengthens its finance-and-accounting service offerings. As of the date of these financial statements, the purchase consideration is pending final adjustment for pension underfunding and closing date net assets, 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. During the quarter ended June 30, 2015, the Company recorded a measurement period adjustment that resulted in a $60 decrease in the purchase consideration with a corresponding decrease in goodwill. The measurement period adjustment did not have a significant impact on the Company’s Consolidated Statements of Income, Balance Sheets or Cash Flows in any period and, thus, was recorded during the quarter ended June 30, 2015. 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 the acquisition: Preliminary estimated purchase price $ 21,737 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 17,034 Total $ 21,737 Goodwill has been allocated to the Company’s China reporting unit and is not deductible for tax purposes as the Company has not recorded any tax benefit for amortization. The customer-related intangible assets in the foregoing table have a weighted average amortization period of seven 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. (e) 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 adjustment for net debt and working capital $ 126,069 Fair value of contingent earn-out consideration (ranging from $0 to $27,405) 12,730 Total purchase consideration $ 138,799 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. 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. During the quarter ended June 30, 2015, the Company recorded a measurement period adjustment that resulted in a $168 increase in the purchase consideration, with a corresponding increase in goodwill. These measurement period adjustments did not have a significant impact on the Company’s Consolidated Statements of Income, Balance Sheets or Cash Flows in any period and, thus, were recorded during the quarters ended December 31, 2014 and June 30, 2015, respectively. The following table summarizes the allocation of the purchase price based on the fair value of the assets acquired and liabilities assumed as of the date of the acquisition, including measurement period adjustments: Purchase price $ 138,799 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 110,121 Total $ 138,799 Goodwill has been allocated to the India reporting unit and is not deductible for tax purposes. The intangible assets consist of customer-related and marketing-related intangible assets with a weighted average amortization period of six 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 | 9 Months Ended |
Sep. 30, 2015 | |
Cash and cash equivalents | 4. Cash and cash equivalents Cash and cash equivalents as of December 31, 2014 and September 30, 2015 comprise: As of December 31, 2014 As of September 30, 2015 Deposits with banks $ 130,610 $ 250,095 Other cash and bank balances 331,178 217,409 Total $ 461,788 $ 467,504 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 9 Months Ended |
Sep. 30, 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, 2014 Nine months ended Opening Balance as of January 1 $ 16,560 $ 15,192 Additions due to acquisitions 178 — Additions charged to cost and expense 3,107 1,493 Deductions (4,653 ) (3,149 ) Closing Balance $ 15,192 $ 13,536 Accounts receivable were $540,946 and $562,974, and the reserves for doubtful receivables were $15,192 and $13,536, resulting in net accounts receivable balances of $525,754 and $549,438 as of December 31, 2014 and September 30, 2015, respectively. In addition, accounts receivable due after one year of $11,635 and $9,231 as of December 31, 2014 and September 30, 2015, respectively, are included under other assets in the Consolidated Balance Sheets. Accounts receivable from related parties were $5,840 and $2,069 as of December 31, 2014 and September 30, 2015, respectively. There are no reserves for doubtful receivables in respect of amounts due from related parties. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 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 September 30, 2015: As of December 31, 2014 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Other Significant Other 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 September 30, 2015 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Other Significant Other Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a) $ 33,598 $ — $ 33,598 $ — Total $ 33,598 $ — $ 33,598 $ — Liabilities Derivative instruments (Note b) $ 81,479 $ — $ 81,479 $ — Total $ 81,479 $ — $ 81,479 $ — (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 relevant currencies. The quotes are taken from an independent market database. |
Derivative financial instrument
Derivative financial instruments | 9 Months Ended |
Sep. 30, 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 on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities and foreign currency denominated forecasted cash flows. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts mature between 0 and 63 months, and the forecasted transactions are expected to occur during the same period. The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of As of As of As of Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,282,800 $ 1,193,900 $ (86,913 ) $ (72,968 ) United States Dollars (sell) Mexican Peso (buy) 5,640 11,430 (514 ) (1,501 ) United States Dollars (sell) Philippines Peso (buy) 72,900 45,350 (738 ) (1,898 ) Euro (sell) United States Dollars (buy) 98,903 139,216 5,458 8,368 Euro (sell) Romanian Leu (buy) 81,072 50,138 562 1,801 Japanese Yen (sell) Chinese Renminbi (buy) 28,586 42,281 2,766 327 Pound Sterling (sell) United States Dollars (buy) 133,435 102,942 4,278 6,038 Australian Dollars (sell) United States Dollars (buy) 104,362 71,306 7,552 11,952 $ (67,549 ) $ (47,881 ) (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 uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items such as receivables and intercompany borrowings denominated in currencies other than the Company’s underlying functional currency. The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of As of As of As of Assets Prepaid expenses and other current assets $ 16,636 $ 19,705 $ 202 $ 943 Other assets $ 17,129 $ 12,950 $ — $ — Liabilities Accrued expenses and other current liabilities $ 64,650 $ 40,633 $ 965 $ 250 Other liabilities $ 35,901 $ 40,596 $ — $ — 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 September 30, Nine months ended September 30, 2014 2015 2014 2015 Before- Tax Net of Before- Tax Net of Before- Tax Net of Before- Tax Net of tax Opening balance $ (110,016 ) $ 39,256 $ (70,760 ) $ (48,640 ) $ 17,160 $ (31,480 ) $ (205,952 ) $ 72,612 $ (133,340 ) $ (66,786 ) $ 23,646 $ (43,140 ) Net gains (losses) reclassified into statement of income upon completion of hedged transactions (13,341 ) 4,809 (8,532 ) (16,096 ) 6,061 (10,035 ) (38,395 ) 13,637 (24,758 ) (34,009 ) 12,374 (21,635 ) Changes in fair value of effective portion of outstanding derivatives, net 10,144 (3,919 ) 6,225 (16,030 ) 5,488 (10,542 ) 81,026 (28,447 ) 52,579 (15,797 ) 5,315 (10,482 ) Gain (loss) on cash flow hedging derivatives, net 23,485 (8,728 ) 14,757 66 (573 ) (507 ) 119,421 (42,084 ) 77,337 18,212 (7,059 ) 11,153 Closing balance as of September 30 $ (86,531 ) $ 30,528 $ (56,003 ) $ (48,574 ) $ 16,587 $ (31,987 ) $ (86,531 ) $ 30,528 $ (56,003 ) $ (48,574 ) $ 16,587 $ (31,987 ) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Location of reclassified from OCI into Statement of Location of Derivatives Amount of Gain Amount of Gain (Loss) reclassified from OCI into Amount of Gain (Loss) recognized in Income on Nine months Three months ended September 30, Nine months ended September 30, Three months ended September 30, Nine months ended 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Forward foreign exchange contracts $ 81,026 $ (15,797 ) Revenue $ (2,089 ) $ 2,768 $ (4,591 ) $ 9,078 Foreign exchange (gains) losses, net $ — $ — $ — $ — Cost of revenue (8,992 ) (15,282 ) (26,829 ) (34,722 ) Selling, general and administrative expenses (2,260 ) (3,582 ) (6,975 ) (8,365 ) $ 81,026 $ (15,797 ) $ (13,341 ) $ (16,096 ) $ (38,395 ) $ (34,009 ) $ — $ — $ — $ — Non-designated Hedges Derivatives not designated Location of (Gain) Loss recognized in Statement of Income on Amount of (Gain) Loss recognized in Statement of Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Forward foreign exchange contracts (Note a) Foreign exchange (gains) losses, net $ (197 ) $ (723 ) $ 66 $ (4,563 ) $ (197 ) $ (723 ) $ 66 $ (4,563 ) (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized (gains) losses and changes in the fair value of these derivatives are recorded in foreign exchange (gains) losses, net in the consolidated statements of income. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 9 Months Ended |
Sep. 30, 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 September 30, Advance taxes $ 61,251 $ 84,399 Deferred transition costs 40,185 35,390 Derivative instruments 16,838 20,648 Prepaid expenses 12,949 18,016 Customer acquisition cost 5,557 6,365 Employee advances 5,816 5,003 Deposits 1,754 1,460 Advances to suppliers 3,358 1,168 Others 7,772 10,599 $ 155,480 $ 183,048 |
Property, plant and equipment,
Property, plant and equipment, net | 9 Months Ended |
Sep. 30, 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 September 30, Property, plant and equipment, gross $ 531,960 $ 536,138 Less: Accumulated depreciation and amortization (356,024 ) (372,290 ) Property, plant and equipment, net $ 175,936 $ 163,848 Depreciation expense on property, plant and equipment for the nine months ended September 30, 2014 and 2015 was $32,701 and $35,163, respectively, and for the three months ended September 30, 2014 and 2015 was $11,044 and $11,849, respectively. Computer software amortization for the nine months ended September 30, 2014 and 2015 amounted to $6,679 and $6,992, respectively, and for the three months ended September 30, 2014 and 2015 amounted to $2,271 and $2,335, respectively. The depreciation and amortization expenses set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $1,596 and $1,970 for the nine months ended September 30, 2014 and 2015, respectively, and $525 and $810 for the three months ended September 30, 2014 and 2015, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and intangible assets | 10. Goodwill and intangible assets The following table presents the changes in goodwill for the year ended December 31, 2014 and nine months ended September 30, 2015: As of December 31, 2014 As of September 30, 2015 Opening balance $ 953,849 $ 1,057,214 Goodwill relating to acquisitions consummated during the period 127,047 7,674 Impact of measurement period adjustments — 108 Effect of exchange rate fluctuations (23,682 ) (22,457 ) Closing balance $ 1,057,214 $ 1,042,539 The total amount of goodwill deductible for tax purposes is $37,628 and $40,724 as of December 31, 2014 and September 30, 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 September 30, 2015 Gross Accumulated Net Gross Accumulated Net Customer-related intangible assets $ 310,069 $ 228,095 $ 81,974 $ 316,773 $ 240,312 $ 76,461 Marketing-related intangible assets 43,137 23,801 19,336 42,813 25,866 16,947 Other intangible assets 19,002 5,768 13,234 27,060 17,535 9,525 $ 372,208 $ 257,664 $ 114,544 $ 386,646 $ 283,713 $ 102,933 Amortization expenses for intangible assets in the nine months ended September 30, 2014 and 2015 were $20,617 and $21,875, respectively, and in the three months ended September 30, 2014 and 2015 were $7,989 and $7,219, respectively, and are disclosed in the consolidated statements of income under amortization of acquired intangible assets. During the three months ended September 30, 2015, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset. Based on the results of such testing, the Company determined that the carrying value of the intangible asset exceeded its fair value by $10,714 and recorded a charge to reduce the carrying value by this amount. The Company used the discounted cash flow or income approach to determine the fair value of the intangible asset for the purpose of calculating the resulting charge. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income. |
Short-term borrowings
Short-term borrowings | 9 Months Ended |
Sep. 30, 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 September 30, 2015, the limits available were $14,282 and $16,001, respectively, of which $8,138 and $10,124 was utilized, constituting non-funded drawdown. (b ) A fund-based and non-fund based revolving credit facility of $350,000, which the company obtained in June 2015 as described in note 12. This facility replaces the Company’s $250,000 facility initially entered into in August 2012 and subsequently amended in June 2013. As of December 31, 2014 and September 30, 2015, a total of $137,224 and $26,247, respectively, was utilized, of which $135,000 and $21,500, respectively, constituted funded drawdown and $2,224 and $4,747, respectively, constituted non-funded drawdown. The revolving facility expires in June 2020. The funded drawdown amount bore interest at a rate equal to LIBOR plus a margin of 2.50% as of December 31, 2014. As of September 30, 2015, the revolving facility bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum. The unutilized amount on the revolving facility bore a commitment fee of 0.5% and 0.25% as of December 31, 2014 and September 30, 2015, respectively. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the nine months ended September 30, 2015, the Company was in compliance with 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. |
Long-term debt
Long-term debt | 9 Months Ended |
Sep. 30, 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. In June 2013, the Company amended this credit facility to reduce interest payments thereunder. 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. As a result of the amendment, the Company extinguished $118,036 of the outstanding term loan under the previous facility and obtained additional funding amounting to $121,410, increasing the total term loan outstanding to $675,000. 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 were to be amortized over the duration of the term loan and revolving facility, which by their terms were to expire on August 30, 2019 and August 30, 2017, respectively. In June 2015, the Company refinanced its 2012 facility through a new credit facility, comprised of an $800,000 term loan and a $350,000 revolving credit facility. Borrowings under the new facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus an applicable margin equal to 1.50% per annum or a base rate plus an applicable margin equal to 0.50% per annum, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.50% per annum. As a result of the June 2015 refinancing, the gross outstanding term loan under the previous facility, which amounted to $663,188 as of June 30, 2015, was extinguished, and the Company expensed $10,050, representing accelerated amortization of the existing unamortized debt issuance costs related to the prior facility. Additionally, the refinancing of the revolving facility resulted in the accelerated amortization of $65 relating to the existing unamortized debt issuance cost. The remaining unamortized costs for the revolving facility, together with the fees paid to the Company’s lenders and third parties in connection with the new term loan and revolving facility, will be amortized over the term of the refinanced facility, which ends on June 30, 2020. As of December 31, 2014 and September 30, 2015, the amount outstanding under the term loan, net of debt amortization expense of $11,274 and $3,759, was $653,602 and $786,240, respectively. As of December 31, 2014, the term loan bore interest at a rate equal to LIBOR (subject to a floor of 0.75%) plus an applicable margin of 2.75% per annum. As of September 30, 2015 the term loan bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum. Indebtedness under the refinanced facility is unsecured. The amount outstanding on the term loan as of September 30, 2015 will be repaid through quarterly payments of $10,000, and the balance will be repaid upon the maturity of the term loan on June 30, 2020. The maturity profile of the term loan, net of debt amortization expense, is as follows: Year ended Amount 2015 $ 9,775 2016 39,134 2017 39,181 2018 39,226 2019 39,272 2020 619,652 $ 786,240 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Accrued expenses and other current liabilities | 13. Accrued expenses and other current liabilities As of December 31, 2014 As of September 30, 2015 Accrued expenses $ 114,770 $ 115,651 Accrued employee cost 143,829 140,033 Deferred transition revenue 49,792 44,441 Statutory liabilities 24,713 20,613 Retirement benefits 16,807 20,846 Derivative instruments 65,615 40,883 Advance from customers 19,857 21,037 Earn-out consideration 3,232 17,270 Other liabilities 12,399 14,727 Capital lease obligations 1,443 1,324 $ 452,457 $ 436,825 |
Employee benefit plans
Employee benefit plans | 9 Months Ended |
Sep. 30, 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 sponsor defined benefit retirement programs. Net defined benefit plan costs for the three and nine months ended September 30, 2014 and 2015 include the following components: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Service costs $ 1,213 $ 1,327 $ 3,629 $ 4,100 Interest costs 631 660 1,888 2,013 Amortization of actuarial loss 80 61 239 244 Expected return on plan assets (460 ) (521 ) (1,371 ) (1,628 ) Net Gratuity Plan costs $ 1,464 $ 1,527 $ 4,385 $ 4,729 Defined contribution plans During the three and nine months ended September 30, 2014 and 2015, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 India $ 3,883 $ 4,199 $ 11,565 $ 12,217 U.S. 1,415 1,474 4,045 6,110 U.K. 934 1,106 2,335 3,761 China 3,785 3,896 10,703 10,949 Other Regions 1,001 916 3,376 3,234 Total $ 11,018 $ 11,591 $ 32,024 $ 36,271 |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Sep. 30, 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, including employees, directors and certain other persons associated with the Company. With respect to options granted under the 2005, 2006 and 2007 Plans before the date of adoption of the 2007 Omnibus Plan, if an award granted under any such plan is forfeited or otherwise expires, terminates, or is cancelled without the delivery of shares, then the shares covered by the forfeited, expired, terminated, or cancelled award will be added to the number of shares otherwise available for grant under the respective plans. Beginning on July 13, 2007, the date of adoption of the 2007 Omnibus Plan, shares underlying options forfeited, expired, terminated, or cancelled under any of the plans are 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 was 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 on outstanding options 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 outstanding stock-based awards as a result of the special cash dividend. Stock-based compensation costs relating to the foregoing plans during the nine months ended September 30, 2014 and 2015 were $19,932 and $17,279, respectively, and for the three months ended September 30, 2014 and 2015 were $8,196 and $6,124, respectively. These costs have been allocated to cost of revenue and selling, general, and administrative expenses. Stock options All options granted under the 2007 Omnibus Plan or any prior plans are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. Compensation cost is determined on 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 nine months ended September 30, 2014 and September 30, 2015. Nine months ended Nine months ended Dividend yield — — Expected life (in months) 84 84 Risk free rate of interest 2.18-2.29 % 1.99 % Volatility 37.27-38.34 % 34.97 % A summary of stock option activity during the nine months ended September 30, 2015 is set out below: Nine months ended September 30, 2015 Shares arising Weighted average Weighted average Aggregate Outstanding as of January 1, 2015 7,371,727 $ 15.44 5.9 $ — Granted 170,000 22.77 — — Forfeited (125,000 ) 19.35 — — Expired (1,277 ) 14.32 — — Exercised (931,067 ) 8.65 — 13,924 Outstanding as of September 30, 2015 6,484,383 $ 16.54 5.7 $ 46,700 Vested as of September 30, 2015 and expected to vest thereafter (Note a) 6,151,670 $ 16.25 5.7 $ 45,251 Vested and exercisable as of September 30, 2015 2,681,384 $ 12.37 2.7 $ 30,141 Weighted average grant date fair value of grants during the period $ 9.15 a) Options expected to vest reflect an estimated forfeiture rate. As of September 30, 2015, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $15,759, which will be recognized over the weighted average remaining requisite vesting period of 2.6 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. 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 nine months ended September 30, 2015 is set out below: Nine months ended September 30, 2015 Number of Restricted Share Weighted Average Grant Date Outstanding as of January 1, 2015 488,418 $ 15.36 Granted 53,546 20.88 Vested (Note a) (162,801 ) 14.97 Forfeited (29,828 ) 14.06 Outstanding as of September 30, 2015 349,335 $ 16.49 Expected to vest (Note b) 327,903 (a) Vested RSUs have been net settled upon vesting by issuing 104,124 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 shares 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 September 30, 2015, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $2,362, which will be recognized over the weighted average remaining requisite vesting period of 1.9 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. PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. During the performance period, the Company’s estimate of the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the nine months ended September 30, 2015 is set out below: Nine months ended September 30, 2015 Number of Weighted Maximum Shares Eligible to Outstanding as of January 1, 2015 1,292,750 $ 16.78 2,648,626 Granted 1,375,650 22.72 2,965,475 Vested (Note a) (855 ) 16.78 (855 ) Forfeited (119,178 ) 17.67 (136,153 ) Addition due to achievement of higher than target performance goals (Note b) 51,595 16.78 Reduction due to achievement of lower than maximum performance goals (Note c) (1,296,105 ) Outstanding as of September 30, 2015 2,599,962 $ 19.88 4,180,988 Expected to vest (Note d) 2,065,807 (a) Vested PUs have been net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). (b) Represents additional shares awarded ranging from 0.8% to 6.6% of the target shares as a result of achievement of higher-than-target performance for the PUs granted in April 2014. (c) 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. (d) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (e) 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 September 30, 2015, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $26,199, which will be recognized over the weighted average remaining requisite vesting period of 2.0 years. Employee Stock Purchase Plan (ESPP) On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day 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 nine months ended September 30, 2014 and 2015, 117,305 and 97,603 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 ESPP is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for ESPP during the nine months ended September 30, 2014 and 2015 was $221 and $230, respectively, and for the three months ended September 30, 2014 and 2015 was $77 and $72, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Share Repurchases
Share Repurchases | 9 Months Ended |
Sep. 30, 2015 | |
Share Repurchases | 16. Share Repurchases 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 purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the nine months and three months ended September 30, 2015, the Company purchased 7,110,153 and 3,481,704 of its common shares, respectively, at a weighted average price of $22.37 and $22.30 per share, respectively, for an aggregate cash amount of $159,036 and $77,636, respectively. The purchased shares have been retired. On April 8, 2014, the Company purchased 17,292,842 of its common shares at a price of $17.50 per share for an aggregate cash amount of $302,625 pursuant to the Company’s modified “Dutch Auction” self-tender offer announced on March 5, 2014. Under the terms of the offer, the Company was authorized to purchase up to $300,000 in value of its common shares. The number of shares accepted for purchase included the Company’s exercise of its right to upsize the offer by up to 2% of the Company’s shares then outstanding. The 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 nine months ended September 30, 2014 and 2015, $2,543 and $142, respectively, was deducted from retained earnings in direct costs related to share repurchases. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 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 outstanding of the Company. The calculation of basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the respective periods. 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 inclusion would be anti-dilutive is 3,467,390 and 3,704,667 for the nine months ended September 30, 2014 and 2015, respectively, and 3,567,728 and 3,593,000 for the three months ended September 30, 2014 and 2015, respectively. Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Net income available to Genpact Limited common shareholders $ 46,653 $ 68,050 $ 146,250 $ 175,404 Weighted average number of common shares used in computing basic earnings per common share 216,472,908 215,311,322 222,036,262 217,909,722 Dilutive effect of stock-based awards 4,062,622 2,284,382 4,404,088 2,391,990 Weighted average number of common shares used in computing dilutive earnings per common share 220,535,530 217,595,704 226,440,350 220,301,712 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.22 $ 0.32 $ 0.66 $ 0.80 Diluted $ 0.21 $ 0.31 $ 0.65 $ 0.80 |
Cost of revenue
Cost of revenue | 9 Months Ended |
Sep. 30, 2015 | |
Cost of revenue | 18. Cost of revenue Cost of revenue consists of the following: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Personnel expenses $ 244,466 $ 257,289 $ 701,469 $ 750,606 Operational expenses 98,841 106,593 284,329 313,687 Depreciation and amortization 11,168 11,948 33,091 35,317 $ 354,475 $ 375,830 $ 1,018,889 $ 1,099,610 |
Selling, general and administra
Selling, general and administrative expenses | 9 Months Ended |
Sep. 30, 2015 | |
Selling, general and administrative expenses | 19. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Personnel expenses $ 111,427 $ 103,640 $ 302,115 $ 316,858 Operational expenses 39,574 38,847 109,957 119,005 Depreciation and amortization 2,147 2,236 6,289 6,838 $ 153,148 $ 144,723 $ 418,361 $ 442,701 |
Other operating (income) expens
Other operating (income) expense, net | 9 Months Ended |
Sep. 30, 2015 | |
Other operating (income) expense, net | 20. Other operating (income) expense, net Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Other operating (income) expense $ (372 ) $ (656 ) $ (926 ) $ (1,688 ) Provision for impairment of intangible assets — 10,714 — 10,714 Change in fair value of earn-out and deferred consideration (relating to business acquisitions) — (7,342 ) (2,198 ) (9,442 ) Other operating (income) expense, net $ (372 ) $ 2,716 $ (3,124 ) $ (416 ) |
Other income (expense), net
Other income (expense), net | 9 Months Ended |
Sep. 30, 2015 | |
Other income (expense), net | 21. Other income (expense), net Other income (expense), net consists of the following: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Interest income $ 1,597 $ 2,343 $ 3,582 $ 5,540 Interest expense (8,986 ) (5,210 ) (24,395 ) (24,669 ) Loss on extinguishment of debt (Note 12) — — — (10,115 ) Other income (expense) 950 999 1,336 2,268 Other income (expense), net $ (6,439 ) $ (1,868 ) $ (19,477 ) $ (26,976 ) |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income taxes | 22. Income taxes The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. 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 September 30, 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 (373 ) Effect of exchange rate changes (1,023 ) Closing Balance at September 30 $ 21,324 The Company’s unrecognized tax benefits as of September 30, 2015 include an amount of $19,912, which, if recognized, would impact the effective tax rate. As of December 31, 2014 and September 30, 2015, the Company had accrued approximately $3,417 and $3,647, respectively, in interest relating to unrecognized tax benefits. During the year ended December 31, 2014 and the nine months ended September 30, 2015, the company recognized approximately $44 and $229, respectively, in interest expense. As of December 31, 2014 and September 30, 2015, the Company had accrued approximately $561 and $543, respectively, for penalties. |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 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 For the nine months ended September 30, 2014 and 2015, the Company recognized net revenues of $214 and $251, respectively, and for the three months ended September 30, 2014 and 2015, the Company recognized net revenues of $72 and $75, respectively, from a client that is a significant shareholder of the Company. For the nine months ended September 30, 2015, the Company recognized net revenues of $5,876, and for the three months ended September 30, 2015, the Company recognized net revenues of $1,712, from a client that is a non-consolidating affiliate of the Company. $2,044 of this amount is receivable as of September 30, 2015. Cost of revenue from services The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, which are included in cost of revenue. For the nine months ended September 30, 2014 and 2015, cost of revenue includes an amount of $1,635 and $1,376, respectively, and for three months ended September 30, 2014 and 2015, cost of revenue includes an amount of $662 and $346, respectively, attributable to the cost of services from the company’s non-consolidating affiliates. Selling, general and administrative expenses The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the nine months ended September 30, 2014 and 2015, selling, general and administrative expenses includes an amount of $482 and $287, respectively, and for three months ended September 30, 2014 and 2015, selling, general and administrative expenses includes an amount of $179 and $47, respectively, attributable to the cost of services provided by the company’s non-consolidating affiliates. During the nine and three months ended September 30, 2015, the Company engaged a significant shareholder of the Company to provide services to the company at a cost of $421 and $0, respectively, of which $57 is payable as of September 30, 2015. Investment in equity affiliates During the nine months ended September 30, 2015, the Company invested $13,277 in its non-consolidating affiliates and made payments of $13,520, of which $5,146 was outstanding as of December 31, 2014 and $8,374 represents investments made during the nine months ended September 30, 2015. As of September 30, 2015, an investment amounting to $4,903 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 September 30, 2015, the Company’s investments in its non-consolidating affiliates amounted to $494 and $5,747, respectively. Others During the nine and three months ended September 30, 2015, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $1,602 and $379, respectively, of which $379 is receivable as of September 30, 2015. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and contingencies | 24. Commitments and contingencies Capital commitments As of December 31, 2014 and September 30, 2015, the Company has committed to spend $6,073 and $5,024, respectively, under agreements to purchase property, plant and equipment. These amounts are net of capital advances paid in respect of such purchases. Bank guarantees The Company has outstanding bank guarantees amounting to $10,362 and $14,871 as of December 31, 2014 and September 30, 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 (“STPI”) units under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events | 25. Subsequent Events Pursuant to its share repurchase program, the Company repurchased 999,416 of its common shares between Oct 1, 2015 and November 6, 2015, at a weighted average price of $23.73 per share for an aggregate cash amount of $23,711. |
Summary of significant accoun33
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 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 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 non-controlling interest disclosed in the accompanying unaudited interim consolidated financial statements represents the non-controlling partners’ interest in the operation of Genpact Netherlands B.V. and the profits or losses associated with such non-controlling interest. The non-controlling partners of Genpact Netherlands B.V. are individually liable for the tax obligations on their shares of profit as it is a partnership. Accordingly, non-controlling 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 non-controlling interest, as a result of which the Company has 100% control of Genpact Netherlands B.V. |
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 and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. In business combinations, where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income. |
Goodwill | Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. |
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, 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 18% of receivables as of December 31, 2014 and September 30, 2015, respectively. GE accounted for 21% and 19% of revenues for the nine months ended September 30, 2014 and 2015, respectively, and 20% and 19% of revenues for the three months ended September 30, 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 accoun34
Summary of significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 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 (Tables)
Business acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 the acquisition: Preliminary estimated purchase price $ 21,737 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 17,034 Total $ 21,737 |
Japan Finance and Accounting Service Delivery | |
Purchase Consideration for the Acquisition | The purchase consideration for the acquisition is set forth below: Cash consideration after closing net assets value and preliminary adjustment for pension underfunding $ 10,539 Fair value of contingent earn-out consideration (ranging from $0 to $15,750) 11,198 Total preliminary estimated purchase consideration $ 21,737 |
Pharmalink Consulting Inc | |
Purchase Consideration for the Acquisition | The purchase consideration for the acquisition is set forth below: Cash consideration after adjustment for net debt and working capital $ 126,069 Fair value of contingent earn-out consideration (ranging from $0 to $27,405) 12,730 Total purchase consideration $ 138,799 |
Purchase Price Allocation Based on Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase price based on the fair value of the assets acquired and liabilities assumed as of the date of the acquisition, including measurement period adjustments: Purchase price $ 138,799 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 110,121 Total $ 138,799 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cash And Cash Equivalents | Cash and cash equivalents as of December 31, 2014 and September 30, 2015 comprise: As of December 31, 2014 As of September 30, 2015 Deposits with banks $ 130,610 $ 250,095 Other cash and bank balances 331,178 217,409 Total $ 461,788 $ 467,504 |
Accounts receivable, net of r37
Accounts receivable, net of reserve for doubtful receivables (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reserve for Doubtful Receivables | The following table provides details of the reserve for doubtful receivables recorded by the Company: Year ended December 31, 2014 Nine months ended Opening Balance as of January 1 $ 16,560 $ 15,192 Additions due to acquisitions 178 — Additions charged to cost and expense 3,107 1,493 Deductions (4,653 ) (3,149 ) Closing Balance $ 15,192 $ 13,536 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015: As of December 31, 2014 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Other Significant Other 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 September 30, 2015 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Other Significant Other Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a) $ 33,598 $ — $ 33,598 $ — Total $ 33,598 $ — $ 33,598 $ — Liabilities Derivative instruments (Note b) $ 81,479 $ — $ 81,479 $ — Total $ 81,479 $ — $ 81,479 $ — (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 instrume39
Derivative financial instruments (Tables) | 9 Months Ended |
Sep. 30, 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 (note a) Balance sheet exposure asset (liability) (note b) As of As of As of As of Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,282,800 $ 1,193,900 $ (86,913 ) $ (72,968 ) United States Dollars (sell) Mexican Peso (buy) 5,640 11,430 (514 ) (1,501 ) United States Dollars (sell) Philippines Peso (buy) 72,900 45,350 (738 ) (1,898 ) Euro (sell) United States Dollars (buy) 98,903 139,216 5,458 8,368 Euro (sell) Romanian Leu (buy) 81,072 50,138 562 1,801 Japanese Yen (sell) Chinese Renminbi (buy) 28,586 42,281 2,766 327 Pound Sterling (sell) United States Dollars (buy) 133,435 102,942 4,278 6,038 Australian Dollars (sell) United States Dollars (buy) 104,362 71,306 7,552 11,952 $ (67,549 ) $ (47,881 ) (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 Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of As of As of As of Assets Prepaid expenses and other current assets $ 16,636 $ 19,705 $ 202 $ 943 Other assets $ 17,129 $ 12,950 $ — $ — Liabilities Accrued expenses and other current liabilities $ 64,650 $ 40,633 $ 965 $ 250 Other liabilities $ 35,901 $ 40,596 $ — $ — |
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 September 30, Nine months ended September 30, 2014 2015 2014 2015 Before- Tax Net of Before- Tax Net of Before- Tax Net of Before- Tax Net of tax Opening balance $ (110,016 ) $ 39,256 $ (70,760 ) $ (48,640 ) $ 17,160 $ (31,480 ) $ (205,952 ) $ 72,612 $ (133,340 ) $ (66,786 ) $ 23,646 $ (43,140 ) Net gains (losses) reclassified into statement of income upon completion of hedged transactions (13,341 ) 4,809 (8,532 ) (16,096 ) 6,061 (10,035 ) (38,395 ) 13,637 (24,758 ) (34,009 ) 12,374 (21,635 ) Changes in fair value of effective portion of outstanding derivatives, net 10,144 (3,919 ) 6,225 (16,030 ) 5,488 (10,542 ) 81,026 (28,447 ) 52,579 (15,797 ) 5,315 (10,482 ) Gain (loss) on cash flow hedging derivatives, net 23,485 (8,728 ) 14,757 66 (573 ) (507 ) 119,421 (42,084 ) 77,337 18,212 (7,059 ) 11,153 Closing balance as of September 30 $ (86,531 ) $ 30,528 $ (56,003 ) $ (48,574 ) $ 16,587 $ (31,987 ) $ (86,531 ) $ 30,528 $ (56,003 ) $ (48,574 ) $ 16,587 $ (31,987 ) |
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Location of reclassified from OCI into Statement of Location of Derivatives Amount of Gain Amount of Gain (Loss) reclassified from OCI into Amount of Gain (Loss) recognized in Income on Nine months Three months ended September 30, Nine months ended September 30, Three months ended September 30, Nine months ended 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Forward foreign exchange contracts $ 81,026 $ (15,797 ) Revenue $ (2,089 ) $ 2,768 $ (4,591 ) $ 9,078 Foreign exchange (gains) losses, net $ — $ — $ — $ — Cost of revenue (8,992 ) (15,282 ) (26,829 ) (34,722 ) Selling, general and administrative expenses (2,260 ) (3,582 ) (6,975 ) (8,365 ) $ 81,026 $ (15,797 ) $ (13,341 ) $ (16,096 ) $ (38,395 ) $ (34,009 ) $ — $ — $ — $ — Non-designated Hedges Derivatives not designated Location of (Gain) Loss recognized in Statement of Income on Amount of (Gain) Loss recognized in Statement of Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Forward foreign exchange contracts (Note a) Foreign exchange (gains) losses, net $ (197 ) $ (723 ) $ 66 $ (4,563 ) $ (197 ) $ (723 ) $ 66 $ (4,563 ) (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized (gains) losses and changes in the fair value of these derivatives are recorded in foreign exchange (gains) losses, net in the consolidated statements of income. |
Prepaid expenses and other cu40
Prepaid expenses and other current assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: As of December 31, As of September 30, Advance taxes $ 61,251 $ 84,399 Deferred transition costs 40,185 35,390 Derivative instruments 16,838 20,648 Prepaid expenses 12,949 18,016 Customer acquisition cost 5,557 6,365 Employee advances 5,816 5,003 Deposits 1,754 1,460 Advances to suppliers 3,358 1,168 Others 7,772 10,599 $ 155,480 $ 183,048 |
Property, plant and equipment41
Property, plant and equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, plant and equipment, net | Property, plant and equipment, net consist of the following: As of December 31, As of September 30, Property, plant and equipment, gross $ 531,960 $ 536,138 Less: Accumulated depreciation and amortization (356,024 ) (372,290 ) Property, plant and equipment, net $ 175,936 $ 163,848 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Changes in Goodwill | The following table presents the changes in goodwill for the year ended December 31, 2014 and nine months ended September 30, 2015: As of December 31, 2014 As of September 30, 2015 Opening balance $ 953,849 $ 1,057,214 Goodwill relating to acquisitions consummated during the period 127,047 7,674 Impact of measurement period adjustments — 108 Effect of exchange rate fluctuations (23,682 ) (22,457 ) Closing balance $ 1,057,214 $ 1,042,539 |
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 September 30, 2015 Gross Accumulated Net Gross Accumulated Net Customer-related intangible assets $ 310,069 $ 228,095 $ 81,974 $ 316,773 $ 240,312 $ 76,461 Marketing-related intangible assets 43,137 23,801 19,336 42,813 25,866 16,947 Other intangible assets 19,002 5,768 13,234 27,060 17,535 9,525 $ 372,208 $ 257,664 $ 114,544 $ 386,646 $ 283,713 $ 102,933 |
Long-term debt (Tables)
Long-term debt (Tables) | 9 Months Ended |
Sep. 30, 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 $ 9,775 2016 39,134 2017 39,181 2018 39,226 2019 39,272 2020 619,652 $ 786,240 |
Accrued expenses and other cu44
Accrued expenses and other current liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses and Other Current Liabilities | As of December 31, 2014 As of September 30, 2015 Accrued expenses $ 114,770 $ 115,651 Accrued employee cost 143,829 140,033 Deferred transition revenue 49,792 44,441 Statutory liabilities 24,713 20,613 Retirement benefits 16,807 20,846 Derivative instruments 65,615 40,883 Advance from customers 19,857 21,037 Earn-out consideration 3,232 17,270 Other liabilities 12,399 14,727 Capital lease obligations 1,443 1,324 $ 452,457 $ 436,825 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the three and nine months ended September 30, 2014 and 2015 include the following components: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Service costs $ 1,213 $ 1,327 $ 3,629 $ 4,100 Interest costs 631 660 1,888 2,013 Amortization of actuarial loss 80 61 239 244 Expected return on plan assets (460 ) (521 ) (1,371 ) (1,628 ) Net Gratuity Plan costs $ 1,464 $ 1,527 $ 4,385 $ 4,729 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the three and nine months ended September 30, 2014 and 2015, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 India $ 3,883 $ 4,199 $ 11,565 $ 12,217 U.S. 1,415 1,474 4,045 6,110 U.K. 934 1,106 2,335 3,761 China 3,785 3,896 10,703 10,949 Other Regions 1,001 916 3,376 3,234 Total $ 11,018 $ 11,591 $ 32,024 $ 36,271 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2014 and September 30, 2015. Nine months ended Nine months ended Dividend yield — — Expected life (in months) 84 84 Risk free rate of interest 2.18-2.29 % 1.99 % Volatility 37.27-38.34 % 34.97 % |
Summary of Stock Option Activity | A summary of stock option activity during the nine months ended September 30, 2015 is set out below: Nine months ended September 30, 2015 Shares arising Weighted average Weighted average Aggregate Outstanding as of January 1, 2015 7,371,727 $ 15.44 5.9 $ — Granted 170,000 22.77 — — Forfeited (125,000 ) 19.35 — — Expired (1,277 ) 14.32 — — Exercised (931,067 ) 8.65 — 13,924 Outstanding as of September 30, 2015 6,484,383 $ 16.54 5.7 $ 46,700 Vested as of September 30, 2015 and expected to vest thereafter (Note a) 6,151,670 $ 16.25 5.7 $ 45,251 Vested and exercisable as of September 30, 2015 2,681,384 $ 12.37 2.7 $ 30,141 Weighted average grant date fair value of grants 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 nine months ended September 30, 2015 is set out below: Nine months ended September 30, 2015 Number of Restricted Share Weighted Average Grant Date Outstanding as of January 1, 2015 488,418 $ 15.36 Granted 53,546 20.88 Vested (Note a) (162,801 ) 14.97 Forfeited (29,828 ) 14.06 Outstanding as of September 30, 2015 349,335 $ 16.49 Expected to vest (Note b) 327,903 (a) Vested RSUs have been net settled upon vesting by issuing 104,124 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 nine months ended September 30, 2015 is set out below: Nine months ended September 30, 2015 Number of Weighted Maximum Shares Eligible to Outstanding as of January 1, 2015 1,292,750 $ 16.78 2,648,626 Granted 1,375,650 22.72 2,965,475 Vested (Note a) (855 ) 16.78 (855 ) Forfeited (119,178 ) 17.67 (136,153 ) Addition due to achievement of higher than target performance goals (Note b) 51,595 16.78 Reduction due to achievement of lower than maximum performance goals (Note c) (1,296,105 ) Outstanding as of September 30, 2015 2,599,962 $ 19.88 4,180,988 Expected to vest (Note d) 2,065,807 (a) Vested PUs have been net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). (b) Represents additional shares awarded ranging from 0.8% to 6.6% of the target shares as a result of achievement of higher-than-target performance for the PUs granted in April 2014. (c) 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. (d) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (e) 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) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share | Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Net income available to Genpact Limited common shareholders $ 46,653 $ 68,050 $ 146,250 $ 175,404 Weighted average number of common shares used in computing basic earnings per common share 216,472,908 215,311,322 222,036,262 217,909,722 Dilutive effect of stock-based awards 4,062,622 2,284,382 4,404,088 2,391,990 Weighted average number of common shares used in computing dilutive earnings per common share 220,535,530 217,595,704 226,440,350 220,301,712 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.22 $ 0.32 $ 0.66 $ 0.80 Diluted $ 0.21 $ 0.31 $ 0.65 $ 0.80 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Cost of Revenue | Cost of revenue consists of the following: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Personnel expenses $ 244,466 $ 257,289 $ 701,469 $ 750,606 Operational expenses 98,841 106,593 284,329 313,687 Depreciation and amortization 11,168 11,948 33,091 35,317 $ 354,475 $ 375,830 $ 1,018,889 $ 1,099,610 |
Selling, general and administ49
Selling, general and administrative expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Personnel expenses $ 111,427 $ 103,640 $ 302,115 $ 316,858 Operational expenses 39,574 38,847 109,957 119,005 Depreciation and amortization 2,147 2,236 6,289 6,838 $ 153,148 $ 144,723 $ 418,361 $ 442,701 |
Other operating (income) expe50
Other operating (income) expense, net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Operating (Income) Expense, Net | Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Other operating (income) expense $ (372 ) $ (656 ) $ (926 ) $ (1,688 ) Provision for impairment of intangible assets — 10,714 — 10,714 Change in fair value of earn-out and deferred consideration (relating to business acquisitions) — (7,342 ) (2,198 ) (9,442 ) Other operating (income) expense, net $ (372 ) $ 2,716 $ (3,124 ) $ (416 ) |
Other income (expense), net (Ta
Other income (expense), net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Income (Expense), Net | Other income (expense), net consists of the following: Three months ended September 30, Nine months ended September 30, 2014 2015 2014 2015 Interest income $ 1,597 $ 2,343 $ 3,582 $ 5,540 Interest expense (8,986 ) (5,210 ) (24,395 ) (24,669 ) Loss on extinguishment of debt (Note 12) — — — (10,115 ) Other income (expense) 950 999 1,336 2,268 Other income (expense), net $ (6,439 ) $ (1,868 ) $ (19,477 ) $ (26,976 ) |
Income taxes (Tables)
Income taxes (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 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 (373 ) Effect of exchange rate changes (1,023 ) Closing Balance at September 30 $ 21,324 |
Organization - Additional Infor
Organization - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 30, 2012 | Aug. 31, 2007 | Dec. 31, 2012 | Dec. 14, 2012 | Aug. 01, 2012 | Mar. 24, 2010 |
Organization [Line Items] | ||||||
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% |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Genpact Netherlands BV | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Ownership interest | 100.00% | ||||
General Electric Company | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Percentage of accounts receivables | 18.00% | 18.00% | 25.00% | ||
Percentage of revenues | 19.00% | 20.00% | 19.00% | 21.00% |
Estimated Useful Lives of Intan
Estimated Useful Lives of Intangible Assets Acquired (Detail) | 9 Months Ended |
Sep. 30, 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 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) | Aug. 18, 2015 | Apr. 01, 2015 | Jan. 16, 2015 | Nov. 04, 2014 | May. 29, 2014 | Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 1,042,539,000 | $ 1,057,214,000 | $ 953,849,000 | |||||||
Payment for business acquisitions, net of cash acquired | 21,363,000 | $ 123,701,000 | ||||||||
Decrease in Goodwill | (108,000) | |||||||||
Pharmalink Consulting Inc | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Customer related intangible assets | $ 29,923,000 | |||||||||
Acquired intangible assets, weighted average amortization period | 6 years | |||||||||
Goodwill | $ 110,121,000 | |||||||||
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 | |||||||||
Increase in purchase consideration | $ 168,000 | |||||||||
Slovakia Finance and Accounting Service Delivery | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration to acquired certain assets and assumed certain liabilities | $ 6,100,000 | |||||||||
Customer related intangible assets | $ 3,000,000 | |||||||||
Acquired intangible assets, weighted average amortization period | 5 years | |||||||||
Goodwill | $ 3,065,000 | |||||||||
Contingent consideration arrangements | $ 0 | |||||||||
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 | $ 17,034,000 | |||||||||
Cash and cash equivalents | 3,491,000 | |||||||||
Payment for business acquisitions, net of cash acquired | $ 7,108,000 | |||||||||
Decrease in Goodwill | $ 60,000 | |||||||||
Citibank NA | Wealth Management Business | U.S. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration to acquired certain assets and assumed certain liabilities | $ 11,678,000 | |||||||||
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 | |||||||||
Citibank NA | Wealth Management Business | U.K. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration to acquired certain assets and assumed certain liabilities | $ 3,418,000 | |||||||||
Customer related intangible assets | $ 2,200,000 | |||||||||
Acquired intangible assets, weighted average amortization period | 8 years | |||||||||
Goodwill | $ 1,209,000 | |||||||||
Liabilities assumed | 610,000 | |||||||||
Deferred tax liability | 440,000 | |||||||||
Property plant and equipment | $ 1,059,000 | |||||||||
Employee related liability, receivable | $ 226,000 |
Purchase Consideration for Acqu
Purchase Consideration for Acquisition, Japan Finance and Accounting Service Delivery (Detail) - Japan Finance and Accounting Service Delivery $ in Thousands | Nov. 04, 2014USD ($) |
Business Acquisition [Line Items] | |
Cash consideration after closing net assets value and preliminary adjustment for pension underfunding | $ 10,539 |
Fair value of contingent earn-out consideration (ranging from $0 to $15,750) | 11,198 |
Total preliminary estimated purchase consideration | $ 21,737 |
Purchase Consideration for Ac58
Purchase Consideration for Acquisition, Japan Finance and Accounting Service Delivery (Parenthetical) (Detail) - Japan Finance and Accounting Service Delivery $ in Thousands | Nov. 04, 2014USD ($) |
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, Pharmalink (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Nov. 04, 2014 | May. 29, 2014 | Dec. 31, 2013 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Goodwill | $ 1,042,539 | $ 1,057,214 | $ 953,849 | ||
Pharmalink Consulting Inc | |||||
Business Acquisition [Line Items] | |||||
Preliminary estimated purchase price | $ 138,799 | ||||
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 | ||||
Customer related intangible assets | 29,923 | ||||
Deferred tax asset (liability), net | (8,419) | ||||
Total identifiable net assets acquired | 28,678 | ||||
Goodwill | 110,121 | ||||
Total preliminary estimated purchase consideration | $ 138,799 | ||||
Japan Finance and Accounting Service Delivery | |||||
Business Acquisition [Line Items] | |||||
Preliminary estimated purchase price | $ 21,737 | ||||
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 | 17,034 | ||||
Total preliminary estimated purchase consideration | $ 21,737 |
Purchase Consideration for Ac60
Purchase Consideration for Acquisition (Detail) - Pharmalink Consulting Inc $ in Thousands | May. 29, 2014USD ($) |
Business Acquisition [Line Items] | |
Cash consideration after adjustment for net debt and working capital | $ 126,069 |
Fair value of contingent earn-out consideration (ranging from $0 to $27,405) | 12,730 |
Total preliminary estimated purchase consideration | $ 138,799 |
Purchase Consideration for Ac61
Purchase Consideration for Acquisition (Parenthetical) (Detail) - Pharmalink Consulting Inc $ in Thousands | May. 29, 2014USD ($) |
Business Acquisition [Line Items] | |
Contingent earn-out component-Low end | $ 0 |
Contingent earn-out component-High end | $ 27,405 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Cash and Cash Equivalents [Line Items] | ||||
Deposits with banks | $ 250,095 | $ 130,610 | ||
Other cash and bank balances | 217,409 | 331,178 | ||
Total | $ 467,504 | $ 461,788 | $ 399,199 | $ 571,276 |
Reserve for Doubtful Receivable
Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 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 | 1,493 | $ 2,322 | 3,107 |
Deductions | (3,149) | (4,653) | |
Closing Balance | $ 13,536 | $ 15,192 |
Accounts Receivable, Net of R64
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross accounts receivable | $ 562,974,000 | $ 540,946,000 | |
Reserve for doubtful receivables | 13,536,000 | 15,192,000 | $ 16,560,000 |
Net accounts receivable | 549,438,000 | 525,754,000 | |
Accounts receivable due after one year | 9,231,000 | 11,635,000 | |
Accounts receivable from related parties | 2,069,000 | 5,840,000 | |
Reserve for doubtful receivables from related parties | $ 0 | $ 0 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative instrument, asset | [1] | $ 33,598 | $ 33,967 |
Total, assets | 33,598 | 33,967 | |
Derivative instrument, liability | [2] | 81,479 | 101,516 |
Total, liabilities | 81,479 | 101,516 | |
Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative instrument, asset | [1] | 33,598 | 33,967 |
Total, assets | 33,598 | 33,967 | |
Derivative instrument, liability | [2] | 81,479 | 101,516 |
Total, liabilities | $ 81,479 | $ 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. |
Derivative Financial Instrume66
Derivative Financial Instruments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative [Line Items] | |
Forward foreign exchange contracts, minimum maturity period | 0 months |
Forward foreign exchange contracts, maximum maturity period | 63 months |
Aggregate Notional Principal Am
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (47,881) | $ (67,549) |
United States Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,193,900 | 1,282,800 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (72,968) | (86,913) |
United States Dollars (sell) Mexican Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 11,430 | 5,640 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (1,501) | (514) |
United States Dollars (sell) Philippines Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 45,350 | 72,900 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (1,898) | (738) |
Euro (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 139,216 | 98,903 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 8,368 | 5,458 |
Euro (Sell) Romanian Leu (Buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 50,138 | 81,072 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 1,801 | 562 |
Japanese Yen (sell) Chinese Renminbi (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 42,281 | 28,586 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 327 | 2,766 |
Pound Sterling (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 102,942 | 133,435 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 6,038 | 4,278 |
Australian Dollars (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 71,306 | 104,362 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 11,952 | $ 7,552 |
[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 Instru
Fair Value of Derivative Instruments and Location in Financial Statements (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | $ 943 | $ 202 |
Not Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | 250 | 965 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | 19,705 | 16,636 |
Cash Flow Hedges | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | 12,950 | 17,129 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | 40,633 | 64,650 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | $ 40,596 | $ 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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Opening balance, before-tax amount | $ (48,640) | $ (110,016) | $ (66,786) | $ (205,952) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount | (16,096) | (13,341) | (34,009) | (38,395) |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | (16,030) | 10,144 | (15,797) | 81,026 |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | 66 | 23,485 | 18,212 | 119,421 |
Closing balance, before-tax amount | (48,574) | (86,531) | (48,574) | (86,531) |
Opening balance, tax (expense) or benefit | 17,160 | 39,256 | 23,646 | 72,612 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit | 6,061 | 4,809 | 12,374 | 13,637 |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | 5,488 | (3,919) | 5,315 | (28,447) |
Gain (loss) on cash flow hedging derivatives, net | (573) | (8,728) | (7,059) | (42,084) |
Closing balance, tax (expense) or benefit | 16,587 | 30,528 | 16,587 | 30,528 |
Opening balance, net of tax amount | (31,480) | (70,760) | (43,140) | (133,340) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount | (10,035) | (8,532) | (21,635) | (24,758) |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | (10,542) | 6,225 | (10,482) | 52,579 |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | (507) | 14,757 | 11,153 | 77,337 |
Closing balance, net of tax amount | $ (31,987) | $ (56,003) | $ (31,987) | $ (56,003) |
Gains or Losses Recorded as Com
Gains or Losses Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $ (15,797) | $ 81,026 | |||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | $ (16,096) | $ (13,341) | (34,009) | (38,395) | |
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | |
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | (723) | (197) | (4,563) | 66 | |
Net revenues | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 2,768 | (2,089) | 9,078 | (4,591) | |
Cost of Revenue | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (15,282) | (8,992) | (34,722) | (26,829) | |
Selling, General and Administrative Expenses | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (3,582) | (2,260) | (8,365) | (6,975) | |
Foreign Exchange Contract | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | (15,797) | 81,026 | |||
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | |
Foreign Exchange Contract | Foreign Exchange (Gains) Losses, Net | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | [1] | $ (723) | $ (197) | $ (4,563) | $ 66 |
[1] | These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized (gains) losses and changes in the fair value of these derivatives are recorded in foreign exchange (gains) losses, net in the consolidated statements of income. |
Prepaid Expenses and Other Cu71
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Prepaid Expenses And Other Current Assets [Line Items] | ||
Advance taxes | $ 84,399 | $ 61,251 |
Deferred transition costs | 35,390 | 40,185 |
Derivative instruments | 20,648 | 16,838 |
Prepaid expenses | 18,016 | 12,949 |
Customer acquisition cost | 6,365 | 5,557 |
Employee advances | 5,003 | 5,816 |
Deposits | 1,460 | 1,754 |
Advances to suppliers | 1,168 | 3,358 |
Others | 10,599 | 7,772 |
Prepaid expenses and other current assets, net | $ 183,048 | $ 155,480 |
Property, Plant and Equipment72
Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 536,138 | $ 531,960 |
Less: Accumulated depreciation and amortization | (372,290) | (356,024) |
Property, plant and equipment, net | $ 163,848 | $ 175,936 |
Property, Plant and Equipment73
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 40,185 | $ 37,784 | ||
Depreciation Expense on Property, Plant And Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 11,849 | $ 11,044 | 35,163 | 32,701 |
Computer Software Amortization | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | 2,335 | 2,271 | 6,992 | 6,679 |
Effect of Reclassification of Foreign Exchange (Gains) Losses | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 810 | $ 525 | $ 1,970 | $ 1,596 |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Opening balance | $ 1,057,214 | $ 953,849 |
Goodwill relating to acquisitions consummated during the period | 7,674 | 127,047 |
Impact of measurement period adjustments | 108 | |
Effect of exchange rate fluctuations | (22,457) | (23,682) |
Closing balance | $ 1,042,539 | $ 1,057,214 |
Goodwill and Intangible Asset75
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill deductible for tax purposes | $ 40,724 | $ 40,724 | $ 37,628 | ||
Amortization of acquired intangible assets | 7,219 | $ 7,989 | 21,875 | $ 20,617 | |
Intangible asset write-down | $ 10,714 | $ 10,714 |
Intangible Assets Acquired Eith
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 386,646 | $ 372,208 |
Accumulated amortization & impairment | 283,713 | 257,664 |
Net | 102,933 | 114,544 |
Customer-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 316,773 | 310,069 |
Accumulated amortization & impairment | 240,312 | 228,095 |
Net | 76,461 | 81,974 |
Marketing-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 42,813 | 43,137 |
Accumulated amortization & impairment | 25,866 | 23,801 |
Net | 16,947 | 19,336 |
Other Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 27,060 | 19,002 |
Accumulated amortization & impairment | 17,535 | 5,768 |
Net | $ 9,525 | $ 13,234 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Mar. 23, 2015 | Jan. 27, 2015 | Aug. 30, 2012 | |
Line of Credit Facility [Line Items] | ||||||
Fund-based and non-fund-based credit facilities limits available | $ 16,001 | $ 14,282 | ||||
Utilization of credit facility for non fund-based usage | 10,124 | 8,138 | ||||
Credit facility, maximum borrowing capacity | $ 925,000 | |||||
Credit facility, amount utilized | $ 26,247 | $ 137,224 | ||||
Margin over LIBOR | 1.50% | 1.50% | 2.75% | |||
Percentage of commitment fee | 0.25% | 0.50% | ||||
Revolving credit facility, expiration month and year | 2020-06 | |||||
Line of credit covenant condition | The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. | |||||
Short term loans | $ 21,500 | $ 135,000 | ||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, maximum borrowing capacity | 350,000 | $ 250,000 | ||||
Fund-Based Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, amount utilized | $ 21,500 | $ 135,000 | ||||
Margin over LIBOR | 1.50% | 2.50% | ||||
Non-Fund-Based Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, amount utilized | $ 4,747 | $ 2,224 | ||||
Morgan Stanley Senior Funding, Inc | ||||||
Line of Credit Facility [Line Items] | ||||||
Short term loans | $ 737,500 | $ 672,500 | ||||
Short term borrowings fixed interest rate | 2.00% | |||||
Debt issuance cost | $ 1,045 | |||||
Interest expense | $ 235 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2013 | Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Aug. 30, 2012 | |
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 925,000 | |||||
Term loan amounts outstanding, gross | $ 671,625 | |||||
Unmodified portion of Term Loan | 553,589 | |||||
Extinguishment of outstanding term loan | 118,036 | $ 663,188 | ||||
Increase in outstanding term loan | 121,410 | |||||
Acceleration amortization of debt issuance cost | $ 10,050 | |||||
Margin over LIBOR | 1.50% | 1.50% | 2.75% | |||
Term loan amounts outstanding | $ 786,240 | $ 653,602 | ||||
Debt amortization expense | 3,759 | $ 11,274 | ||||
LIBOR floor rate | 0.75% | |||||
Principal amount of term loan | $ 10,000 | |||||
Credit facility, frequency of payments | Quarterly | |||||
Maturity date of term loan agreement | Jun. 30, 2020 | |||||
New Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Margin over LIBOR | 1.50% | |||||
Credit facility, base rate | 0.50% | 0.50% | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 350,000 | $ 250,000 | ||||
Acceleration amortization of debt issuance cost | 54 | $ 65 | ||||
Revolving Credit Facility | New Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 350,000 | 350,000 | ||||
Term Loan Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | 675,000 | |||||
Term Loan Credit Facility | New Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 800,000 | $ 800,000 | ||||
Term Loans | ||||||
Debt Instrument [Line Items] | ||||||
Acceleration amortization of debt issuance cost | $ 3,103 |
Maturity Profile of Term Loan N
Maturity Profile of Term Loan Net of Debt Amortization Expense (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Long-Term Debt | ||
2,015 | $ 9,775 | |
2,016 | 39,134 | |
2,017 | 39,181 | |
2,018 | 39,226 | |
2,019 | 39,272 | |
2,020 | 619,652 | |
Term loan amounts outstanding | $ 786,240 | $ 653,602 |
Accrued Expenses and Other Cu80
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Accrued expenses | $ 115,651 | $ 114,770 |
Accrued employee cost | 140,033 | 143,829 |
Deferred transition revenue | 44,441 | 49,792 |
Statutory liabilities | 20,613 | 24,713 |
Retirement benefits | 20,846 | 16,807 |
Derivative instruments | 40,883 | 65,615 |
Advance from customers | 21,037 | 19,857 |
Earn-out consideration | 17,270 | 3,232 |
Other liabilities | 14,727 | 12,399 |
Capital lease obligations | 1,324 | 1,443 |
Accrued expenses and other current liabilities, net | $ 436,825 | $ 452,457 |
Net Defined Benefit Plan Costs
Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service costs | $ 1,327 | $ 1,213 | $ 4,100 | $ 3,629 |
Interest costs | 660 | 631 | 2,013 | 1,888 |
Amortization of actuarial loss | 61 | 80 | 244 | 239 |
Expected return on plan assets | (521) | (460) | (1,628) | (1,371) |
Net Gratuity Plan costs | $ 1,527 | $ 1,464 | $ 4,729 | $ 4,385 |
Amounts Contributed to Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | $ 11,591 | $ 11,018 | $ 36,271 | $ 32,024 |
India | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 4,199 | 3,883 | 12,217 | 11,565 |
U.S. | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 1,474 | 1,415 | 6,110 | 4,045 |
U.K. | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 1,106 | 934 | 3,761 | 2,335 |
China | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 3,896 | 3,785 | 10,949 | 10,703 |
Other Regions | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | $ 916 | $ 1,001 | $ 3,234 | $ 3,376 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2012 | Sep. 24, 2012 | Aug. 30, 2012 | Apr. 11, 2012 | Jan. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Dividend per share | $ 2.24 | |||||||||||
Stock based compensation cost | $ 6,124 | $ 8,196 | $ 17,279 | $ 19,932 | ||||||||
Options granted, contractual period, years | 10 years | |||||||||||
Unrecognized stock-based compensation cost for options | 15,759 | $ 15,759 | ||||||||||
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 | 2 years 7 months 6 days | |||||||||||
Performance Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Weighted average remaining requisite vesting period | 2 years | |||||||||||
Vested, number of shares (units) | 855 | [1] | 1,329,270 | |||||||||
Unrecognized stock-based compensation cost | 26,199 | $ 26,199 | ||||||||||
Restricted Share Units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Weighted average remaining requisite vesting period | 1 year 10 months 24 days | |||||||||||
Minimum vesting schedules, months | 3 months | |||||||||||
Maximum vesting schedules, years | 4 years | |||||||||||
Vested, number of shares (units) | 162,801 | [2] | 92,692 | 61,057 | ||||||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 59,827 | 104,124 | ||||||||||
Unrecognized stock-based compensation cost | $ 2,362 | $ 2,362 | ||||||||||
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% | 90.00% | ||||||||||
Maximum percentage of employee's base salary allowed to be purchased | 15.00% | 15.00% | ||||||||||
Maximum dollar amount of common shares allowed to be purchased | $ 25 | |||||||||||
Common shares reserved for issuance | 4,200,000 | 4,200,000 | ||||||||||
Number of common shares issued under ESPP | 97,603 | 117,305 | ||||||||||
Compensation expense for ESPP | $ 72 | $ 77 | $ 230 | $ 221 | ||||||||
[1] | Vested PUs have been net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). | |||||||||||
[2] | Vested RSUs have been net settled upon vesting by issuing 104,124 shares (net of minimum statutory tax withholding) |
Significant Assumptions used in
Significant Assumptions used in Determination of Fair Value of Options Granted (Detail) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Assumptions used to Determine Fair Value Options [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected life (in months) | 84 months | 84 months |
Risk free rate of interest for expected life | 1.99% | |
Risk free rate of interest for expected life, minimum | 2.18% | |
Risk free rate of interest for expected life, maximum | 2.29% | |
Volatility | 34.97% | |
Volatility, minimum | 37.27% | |
Volatility, maximum | 38.34% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | 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 | ||
Forfeited, shares arising out of options | (125,000) | ||
Expired, shares arising out of options | (1,277) | ||
Exercised, shares arising out of options | (931,067) | ||
Outstanding, shares arising out of options, ending balance | 6,484,383 | 7,371,727 | |
Vested and expected to vest thereafter, shares arising out of options | [1] | 6,151,670 | |
Vested and exercisable, shares arising out of options | 2,681,384 | ||
Weighted average grant date fair value of grants 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 | 19.35 | ||
Expired, weighted average exercise price | 14.32 | ||
Exercised, weighted average exercise price | 8.65 | ||
Outstanding weighted average exercise price, ending balance | 16.54 | $ 15.44 | |
Vested and expected to vest thereafter, weighted average exercise price | [1] | 16.25 | |
Vested and exercisable, weighted average exercise price | $ 12.37 | ||
Weighted average remaining contractual life (years) | |||
Outstanding weighted average remaining contractual life (years) | 5 years 8 months 12 days | 5 years 10 months 24 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [1] | 5 years 8 months 12 days | |
Vested and exercisable, weighted average remaining contractual life (years) | 2 years 8 months 12 days | ||
Aggregate intrinsic value | |||
Exercised, aggregate intrinsic value | $ 13,924 | ||
Outstanding aggregate intrinsic value, ending balance | 46,700 | ||
Vested and expected to vest thereafter, aggregate intrinsic value | [1] | 45,251 | |
Vested and exercisable, aggregate intrinsic value | $ 30,141 | ||
[1] | Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Uni
Summary of Restricted Share Units Granted (Detail) - Restricted Share Units (RSUs) - $ / shares | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Number of Restricted Share Units | |||||
Outstanding number of shares (Units), beginning balance | 488,418 | ||||
Granted, number of shares (Units) | 53,546 | ||||
Vested, number of shares (Units) | (162,801) | [1] | (92,692) | (61,057) | |
Forfeited, number of shares (Units) | (29,828) | ||||
Outstanding number of shares (Units), ending balance | 349,335 | 488,418 | |||
Expected to vest, number of shares (Units) | [2] | 327,903 | |||
Weighted Average Grant Date Fair Value | |||||
Outstanding weighted average grant date fair value, beginning balance | $ 15.36 | ||||
Granted, weighted average grant date fair value | 20.88 | ||||
Vested, weighted average grant date fair value | [1] | 14.97 | |||
Forfeited, weighted average grant date fair value | 14.06 | ||||
Outstanding weighted average grant date fair value, ending balance | $ 16.49 | [2] | $ 15.36 | ||
[1] | Vested RSUs have been net settled upon vesting by issuing 104,124 shares (net of minimum statutory tax withholding) | ||||
[2] | RSUs expected to vest reflect an estimated forfeiture rate |
Summary of Restricted Share U87
Summary of Restricted Share Units Granted (Parenthetical) (Detail) - shares | 1 Months Ended | 9 Months Ended |
Jan. 31, 2015 | Sep. 30, 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 | 104,124 |
Summary of Performance Units Ac
Summary of Performance Units Activity (Detail) - Performance Units - $ / shares | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | |||
Number of Share Units | ||||
Outstanding number of shares (Units), beginning balance | 1,292,750 | |||
Granted, number of shares (Units) | 1,375,650 | |||
Vested, number of shares (Units) | (855) | [1] | (1,329,270) | |
Forfeited, number of shares (Units) | (119,178) | |||
Addition due to achievement of higher than target performance goals | [2] | 51,595 | ||
Outstanding number of shares (Units), ending balance | 2,599,962 | 1,292,750 | ||
Expected to vest, number of shares | [3] | 2,065,807 | ||
Weighted Average Grant Date Fair Value | ||||
Outstanding weighted average grant date fair value, beginning balance | $ 16.78 | |||
Granted, weighted average grant date fair value | 22.72 | |||
Vested, weighted average grant date fair value | [1] | 16.78 | ||
Forfeited, weighted average grant date fair value | 17.67 | |||
Addition due to achievement of higher than target performance goals, weighted average grant date fair value | [2] | 16.78 | ||
Outstanding weighted average grant date fair value, ending balance | $ 19.88 | $ 16.78 | ||
Maximum shares eligible to receive | ||||
Outstanding maximum shares eligible to receive, beginning balance | 2,648,626 | |||
Granted, maximum shares eligible to receive | 2,965,475 | |||
Vested, maximum shares eligible to receive | [1] | (855) | ||
Forfeited, maximum shares eligible to receive | (136,153) | |||
Reduction due to achievement of lower than maximum performance goals, maximum shares eligible to receive | [4] | (1,296,105) | ||
Outstanding maximum shares eligible to receive, ending balance | 4,180,988 | 2,648,626 | ||
[1] | Vested PUs have been net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). | |||
[2] | Represents additional shares awarded ranging from 0.8% to 6.6% of the target shares as a result of achievement of higher-than-target performance for the PUs granted in April 2014. | |||
[3] | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | |||
[4] | 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 89
Summary of Performance Units Activity (Parenthetical) (Detail) - shares | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance shares settled on vesting by issuing shares (net of minimum tax withholding) | 845,524 | 590 | ||
Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested, number of shares (units) | 855 | [1] | 1,329,270 | |
Performance Units | 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% | |||
Performance Units | 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% | |||
[1] | Vested PUs have been net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). |
Share Repurchases - Additional
Share Repurchases - Additional Information (Detail) - USD ($) | Apr. 08, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Feb. 28, 2015 | Mar. 05, 2014 |
Class of Stock [Line Items] | ||||||
Shares repurchased and retired (in shares) | 17,292,842 | 3,481,704 | 7,110,153 | |||
Common stock shares repurchased price per share | $ 17.50 | $ 22.30 | $ 22.37 | |||
Aggregate amount of common stock shares repurchased | $ 302,625,000 | $ 77,636,000 | $ 159,036,000 | $ 302,625,000 | ||
Expenses related to stock repurchase | $ 142,000 | $ 2,543,000 | ||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase authorized amount | $ 250,000,000 | $ 300,000,000 | ||||
Percentage of right to upsize the number of shares to be purchased | 2.00% |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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 | 3,593,000 | 3,567,728 | 3,704,667 | 3,467,390 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share (Abstract) | ||||
Net income available to Genpact Limited common shareholders | $ 68,050 | $ 46,653 | $ 175,404 | $ 146,250 |
Weighted average number of common shares used in computing basic earnings per common share | 215,311,322 | 216,472,908 | 217,909,722 | 222,036,262 |
Dilutive effect of stock-based awards | 2,284,382 | 4,062,622 | 2,391,990 | 4,404,088 |
Weighted average number of common shares used in computing dilutive earnings per common share | 217,595,704 | 220,535,530 | 220,301,712 | 226,440,350 |
Earnings per common share attributable to Genpact Limited common shareholders, Basic | $ 0.32 | $ 0.22 | $ 0.80 | $ 0.66 |
Earnings per common share attributable to Genpact Limited common shareholders, Diluted | $ 0.31 | $ 0.21 | $ 0.80 | $ 0.65 |
Cost of Revenue (Detail)
Cost of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Component of Operating Other Cost and Expense [Abstract] | ||||
Cost of revenue | $ 375,830 | $ 354,475 | $ 1,099,610 | $ 1,018,889 |
Personnel expenses | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Cost of revenue | 257,289 | 244,466 | 750,606 | 701,469 |
Operational expenses | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Cost of revenue | 106,593 | 98,841 | 313,687 | 284,329 |
Depreciation and amortization | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Cost of revenue | $ 11,948 | $ 11,168 | $ 35,317 | $ 33,091 |
Selling, General and Administ94
Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Component of Operating Other Cost and Expense [Abstract] | ||||
Selling, general and administrative expenses | $ 144,723 | $ 153,148 | $ 442,701 | $ 418,361 |
Personnel expenses | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Selling, general and administrative expenses | 103,640 | 111,427 | 316,858 | 302,115 |
Operational expenses | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Selling, general and administrative expenses | 38,847 | 39,574 | 119,005 | 109,957 |
Depreciation and amortization | ||||
Component of Operating Other Cost and Expense [Abstract] | ||||
Selling, general and administrative expenses | $ 2,236 | $ 2,147 | $ 6,838 | $ 6,289 |
Other Operating Income (Expense
Other Operating Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Components of Other Operating Income [Line Items] | ||||
Other operating (income) expense | $ (656) | $ (372) | $ (1,688) | $ (926) |
Provision for impairment of intangible assets | 10,714 | 10,714 | ||
Change in fair value of earn-out and deferred consideration (relating to business acquisitions) | (7,342) | (9,442) | (2,198) | |
Other operating (income) expense, net | $ 2,716 | $ (372) | $ (416) | $ (3,124) |
Other Income (Expense), Net (De
Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income (Expense), Net | ||||
Interest income | $ 2,343 | $ 1,597 | $ 5,540 | $ 3,582 |
Interest expense | (5,210) | (8,986) | (24,669) | (24,395) |
Loss on extinguishment of debt (Note 12) | (10,115) | |||
Other income (expense) | 999 | 950 | 2,268 | 1,336 |
Other income (expense), net | $ (1,868) | $ (6,439) | $ (26,976) | $ (19,477) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | ||
Amount of unrecognized tax benefits | $ 21,324 | $ 22,718 |
Unrecognized tax benefits that would impact effective tax rate | 19,912 | 21,268 |
Unrecognized tax benefits, interest on income taxes accrued | 3,647 | 3,417 |
Unrecognized tax benefits, interest expense recognized | 229 | 44 |
Accrued penalties | $ 543 | $ 561 |
Activities Related to Unrecogni
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
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 | (373) |
Effect of exchange rate changes | (1,023) |
Ending Balance | $ 21,324 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 21 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||||
Accounts receivable from related parties | $ 2,069 | $ 2,069 | $ 2,069 | $ 5,840 | ||
Investment in equity affiliates | 5,747 | 5,747 | 5,747 | 494 | ||
Non-Consolidating Affiliates | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of revenue | 346 | $ 662 | 1,376 | $ 1,635 | ||
Selling, general and administrative expenses, net of recovery | 47 | 179 | 287 | 482 | ||
Investment in equity affiliates | 8,374 | 13,277 | ||||
Payment to acquire investment | 13,520 | |||||
Investment in equity affiliates | 5,747 | 5,747 | 5,747 | 494 | ||
Cost reimbursements from non-consolidating affiliates | 379 | 1,602 | ||||
Non-Consolidating Affiliates | Accrued Expenses and Other Current Liabilities | ||||||
Related Party Transaction [Line Items] | ||||||
Investment in equity affiliates outstanding | 4,903 | 4,903 | 4,903 | $ 5,146 | ||
Non-Consolidating Affiliates | Prepaid Expenses and Other Current Assets | ||||||
Related Party Transaction [Line Items] | ||||||
Reimbursements receivable | 379 | 379 | 379 | |||
Significant Shareholder of Company | ||||||
Related Party Transaction [Line Items] | ||||||
Recognized net revenues | 75 | $ 72 | 251 | $ 214 | ||
Selling, general and administrative expenses, net of recovery | 0 | 421 | ||||
Selling, general and administrative expenses, net of recovery outstanding | 57 | 57 | 57 | |||
Affiliate of Significant Shareholder | ||||||
Related Party Transaction [Line Items] | ||||||
Recognized net revenues | 1,712 | 5,876 | ||||
Accounts receivable from related parties | $ 2,044 | $ 2,044 | $ 2,044 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies [Line Items] | ||
Bank guarantees, outstanding | $ 14,871 | $ 10,362 |
Capital Addition Purchase Commitments | ||
Commitments and Contingencies [Line Items] | ||
Commitments and contingencies | $ 5,024 | $ 6,073 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 08, 2014 | Nov. 06, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Subsequent Event [Line Items] | |||||
Shares repurchased and retired (in shares) | 17,292,842 | 3,481,704 | 7,110,153 | ||
Common stock shares repurchased price per share | $ 17.50 | $ 22.30 | $ 22.37 | ||
Aggregate amount of common stock shares repurchased | $ 302,625 | $ 77,636 | $ 159,036 | $ 302,625 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Shares repurchased and retired (in shares) | 999,416 | ||||
Common stock shares repurchased price per share | $ 23.73 | ||||
Aggregate amount of common stock shares repurchased | $ 23,711 |