Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 210,520,443 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 429,795 | $ 450,907 |
Accounts receivable, net | 605,598 | 590,137 |
Prepaid expenses and other current assets | 198,535 | 154,025 |
Total current assets | 1,233,928 | 1,195,069 |
Property, plant and equipment, net | 179,699 | 175,396 |
Deferred tax assets | 103,906 | 99,395 |
Investment in equity affiliates | 8,315 | 6,677 |
Intangible assets, net | 89,648 | 98,601 |
Goodwill | 1,055,737 | 1,038,346 |
Other assets | 172,331 | 180,005 |
Total assets | 2,843,564 | 2,793,489 |
Current liabilities | ||
Short-term borrowings | 81,500 | 21,500 |
Current portion of long-term debt | 39,148 | 39,134 |
Accounts payable | 9,222 | 10,086 |
Income taxes payable | 33,079 | 24,122 |
Accrued expenses and other current liabilities | 427,420 | 499,638 |
Total current liabilities | 590,369 | 594,480 |
Long-term debt, less current portion | 727,538 | 737,332 |
Deferred tax liabilities | 1,977 | 2,093 |
Other liabilities | 170,455 | 155,228 |
Total liabilities | 1,490,339 | $ 1,489,133 |
Redeemable non-controlling interest | $ 3,621 | |
Shareholders' equity | ||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | ||
Common shares, $0.01 par value, 500,000,000 authorized, 211,472,312 and 210,490,107 issued and outstanding as of December 31, 2015 and March 31, 2016, respectively | $ 2,100 | $ 2,111 |
Additional paid-in capital | 1,354,406 | 1,342,022 |
Retained earnings | 437,043 | 411,508 |
Accumulated other comprehensive income (loss) | (443,945) | (451,285) |
Total equity | $ 1,349,604 | $ 1,304,356 |
Commitments and contingencies | ||
Total liabilities, redeemable non-controlling interest and equity | $ 2,843,564 | $ 2,793,489 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
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 | 210,490,107 | 211,472,312 |
Common shares, outstanding | 210,490,107 | 211,472,312 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net revenues | $ 609,703 | $ 587,153 |
Cost of revenue | 372,848 | 357,476 |
Gross profit | 236,855 | 229,677 |
Operating expenses: | ||
Selling, general and administrative expenses | 160,149 | 148,748 |
Amortization of acquired intangible assets | 6,145 | 7,341 |
Other operating (income) expense, net | (5,061) | (462) |
Income from operations | 75,622 | 74,050 |
Foreign exchange gains (losses), net | (998) | (7,545) |
Interest income (expense), net | (2,838) | (9,025) |
Other income (expense), net | 878 | 458 |
Income before equity-method investment activity, net and income tax expense | 72,664 | 57,938 |
Gain (loss) on equity-method investment activity, net | (2,145) | (2,223) |
Income before income tax expense | 70,519 | 55,715 |
Income tax expense | 12,243 | 11,062 |
Net income | 58,276 | 44,653 |
Net loss (income) attributable to non-controlling interest | 289 | |
Net income attributable to Genpact Limited shareholders | 58,565 | 44,653 |
Net income available to Genpact Limited common shareholders | $ 58,565 | $ 44,653 |
Earnings per common share attributable to Genpact Limited common shareholders | ||
Basic | $ 0.28 | $ 0.20 |
Diluted | $ 0.27 | $ 0.20 |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | ||
Basic | 210,780,165 | 219,892,695 |
Diluted | 213,892,964 | 222,347,101 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net Income (loss) | $ 58,276 | $ 44,653 |
Other comprehensive income: | ||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 1,970 | 21,833 |
Genpact Limited Shareholders | ||
Net Income (loss) | 58,565 | 44,653 |
Other comprehensive income: | ||
Currency translation adjustments | 5,217 | (11,179) |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 1,970 | 21,833 |
Retirement benefits, net of taxes | 153 | 286 |
Other comprehensive income (loss) | 7,340 | 10,940 |
Comprehensive income (loss) | 65,905 | $ 55,593 |
Redeemable non-controlling interest | ||
Net Income (loss) | (289) | |
Other comprehensive income: | ||
Comprehensive income (loss) | $ (289) |
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) | Total Equity | Redeemable non-controlling interest |
Beginning balance, value (in shares) at Dec. 31, 2014 | 218,684,205 | ||||||
Beginning balance, value at Dec. 31, 2014 | $ 2,184 | $ 1,296,730 | $ 398,706 | $ (412,484) | $ 1,285,136 | ||
Issuance of common shares on exercise of options (Note 15) (in shares) | 659,257 | ||||||
Issuance of common shares on exercise of options (Note 15) | $ 7 | 5,834 | 5,841 | ||||
Issuance of common shares under the employee stock purchase plan (Note 15) (in shares) | 34,162 | ||||||
Issuance of common shares under the employee stock purchase plan (Note 15) | 683 | 683 | |||||
Net settlement on vesting of restricted share units (Note 15) | $ 1 | (79) | (78) | ||||
Net settlement on vesting of restricted share units (Note 15), shares | 65,244 | ||||||
Net settlement on vesting of performance units (Note 15) | $ 8 | (8) | |||||
Net settlement on vesting of performance units (Note 15), shares | 845,524 | ||||||
Stock repurchased and retired (Note 16) | $ (6) | (13,292) | (13,298) | ||||
Stock repurchased and retired (Note 16), shares | (590,713) | (590,713) | |||||
Expenses related to stock purchase (Note 16) | (12) | (12) | |||||
Stock-based compensation expense (Note 15) | 4,660 | 4,660 | |||||
Comprehensive income: | |||||||
Net income | $ 44,653 | 44,653 | 44,653 | ||||
Other comprehensive income | 10,940 | 10,940 | |||||
End balance, value (in shares) at Mar. 31, 2015 | 219,697,679 | ||||||
End balance, value at Mar. 31, 2015 | $ 2,194 | 1,307,820 | 430,055 | (401,544) | 1,338,525 | ||
Beginning balance, value (in shares) at Dec. 31, 2015 | 211,472,312 | 211,472,312 | |||||
Beginning balance, value at Dec. 31, 2015 | $ 2,111 | 1,342,022 | 411,508 | (451,285) | 1,304,356 | ||
Issuance of common shares on exercise of options (Note 15) (in shares) | 248,316 | 248,316 | |||||
Issuance of common shares on exercise of options (Note 15) | $ 2 | 4,210 | 4,212 | ||||
Issuance of common shares under the employee stock purchase plan (Note 15) (in shares) | 30,487 | ||||||
Issuance of common shares under the employee stock purchase plan (Note 15) | 725 | 725 | |||||
Net settlement on vesting of restricted share units (Note 15) | $ 1 | (50) | (49) | ||||
Net settlement on vesting of restricted share units (Note 15), shares | 95,191 | ||||||
Net settlement on vesting of performance units (Note 15), shares | 0 | ||||||
Stock repurchased and retired (Note 16) | $ (14) | (33,003) | (33,017) | ||||
Stock repurchased and retired (Note 16), shares | (1,356,199) | (1,356,199) | |||||
Excess tax benefit on stock-based Compensation | 2,163 | 2,163 | |||||
Expenses related to stock purchase (Note 16) | (27) | (27) | |||||
Stock-based compensation expense (Note 15) | 5,336 | 5,336 | |||||
Acquisition of redeemable non-controlling interest | $ 3,910 | ||||||
Comprehensive income: | |||||||
Net income | $ 58,276 | 58,565 | 58,565 | (289) | |||
Other comprehensive income | 7,340 | 7,340 | |||||
End balance, value (in shares) at Mar. 31, 2016 | 210,490,107 | 210,490,107 | |||||
End balance, value at Mar. 31, 2016 | $ 2,100 | $ 1,354,406 | $ 437,043 | $ (443,945) | $ 1,349,604 | $ 3,621 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | ||
Net income attributable to Genpact Limited shareholders | $ 58,565 | $ 44,653 |
Net income (loss) attributable to non-controlling interest | (289) | |
Net income | 58,276 | 44,653 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 13,155 | 13,517 |
Amortization of debt issuance costs (including loss on extinguishment of debt) | 385 | 1,840 |
Amortization of acquired intangible assets | 6,145 | 7,341 |
Intangible assets write-down | 4,943 | |
Reserve for doubtful receivables | 3,120 | 872 |
Unrealized loss on revaluation of foreign currency asset/liability | 354 | 5,632 |
Equity-method investment activity, net | 2,145 | 2,223 |
Excess tax benefit on stock-based compensation | (2,163) | |
Stock-based compensation expense | 5,336 | 4,660 |
Deferred income taxes | (5,118) | (2,559) |
Others, net | 63 | (44) |
Change in operating assets and liabilities: | ||
Increase in accounts receivable | (17,697) | (13,449) |
Increase in prepaid expenses, other current assets and other assets | (27,123) | (10,414) |
Increase (decrease) in accounts payable | (70) | 177 |
Decrease in accrued expenses, other current liabilities and other liabilities | (64,360) | (42,376) |
Increase in income taxes payable | 10,823 | 12,215 |
Net cash provided by (used for) operating activities | (11,786) | 24,288 |
Investing activities | ||
Purchase of property, plant and equipment | (25,495) | (13,991) |
Proceeds from sale of property, plant and equipment | 132 | 576 |
Investment in equity affiliates | (3,783) | (6,701) |
Payment for business acquisitions, net of cash acquired | (2,339) | (11,678) |
Net cash used for investing activities | (31,485) | (31,794) |
Financing activities | ||
Repayment of capital lease obligations | (454) | (539) |
Payment of debt issuance and refinancing costs | (1,045) | |
Repayment of long-term debt | (10,000) | (1,687) |
Proceeds from short-term borrowings | 60,000 | 1,410,000 |
Repayment of short-term borrowings | (1,410,000) | |
Proceeds from issuance of common shares under stock-based compensation plans | 4,937 | 6,524 |
Payment for net settlement of stock-based awards | (49) | (5,603) |
Payment of earn-out/deferred consideration | (965) | (126) |
Payment for stock purchased and retired | (33,017) | (13,298) |
Payment for expenses related to stock purchase | (27) | (12) |
Excess tax benefit on stock-based compensation | 2,163 | |
Net cash provided by (used for) financing activities | 22,588 | (15,786) |
Effect of exchange rate changes | (429) | (4,186) |
Net decrease in cash and cash equivalents | (20,683) | (23,292) |
Cash and cash equivalents at the beginning of the period | 450,907 | 461,788 |
Cash and cash equivalents at the end of the period | 429,795 | 434,310 |
Supplementary information | ||
Cash paid during the period for interest | 3,968 | 6,943 |
Cash paid during the period for income taxes | 23,229 | 13,120 |
Property, plant and equipment acquired under capital lease obligations | $ 283 | $ 372 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2016 | |
Organization | 1. Organization The Company is a provider of digitally-powered business process management and services. The architect of the Lean Digital SM SM SM 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. On October 25, 2012, Glory Investments A Limited, formerly known as South Asia Private Investments, an affiliate of Bain Capital Investors, LLC (“Bain Capital”), became the Company’s largest shareholder when, together with its affiliated assignees and two additional co-investors, it purchased 67,750,678 common shares of the Company from the Company’s initial private equity investors. |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015. 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. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in-capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to non-controlling interest in the consolidated statements of income. (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, 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 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 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 18% and 18% of receivables as of December 31, 2015 and March 31, 2016, respectively. GE accounted for 19% and 18% of revenues for the three months ended March 31, 2015 and March 31, 2016, respectively. (e) Recently adopted accounting pronouncements The following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures: Effective January 1, 2016, the Company has adopted FASB ASU 2015-01 (Topic 225): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the financial statements. Effective January 1, 2016, the Company has adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. Effective January 1, 2016, the Company has adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Effective January 1, 2016, the Company has adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. |
Business acquisitions
Business acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Business acquisitions | 3. Business acquisitions (a) Strategic Sourcing Excellence LLC On January 8, 2016, the Company acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company, for initial cash consideration of $2,550, subject to adjustment for closing date working capital, transaction expenses and indebtedness. The equity purchase agreement also provides for contingent earn-out consideration of up to $20,000, payable based on future performance relative to the thresholds specified in the earn-out calculation. Up to $9,800 of the total potential earn-out consideration, representing the selling equityholders’ 49% interest in SSE, is payable only if either the put or call option, each as described below, is exercised. The equity purchase agreement grants the Company a call option to purchase the remaining 49% equity interest in SSE, which option the Company has the right to exercise between January 1, 2018 and January 31, 2018. If the Company does not exercise its call option during such period, the selling equityholders have the right to exercise a put option between March 1, 2018 and April 30, 2018 to require the Company to purchase their 49% interest in SSE at a price ranging from $2,450 to $2,950. This acquisition strengthens the Company’s procurement consulting, transformation and strategic sourcing capabilities. Acquisition-related costs of $164 have been included in selling, general and administrative expenses as incurred. Through this transaction, the Company has acquired assets with a value of $327 and assumed liabilities amounting to $617. The preliminary estimated purchase consideration for the Company’s interest in SSE is $14,490, including the fair value of earn-out consideration and a preliminary adjustment for working capital, transaction expenses and indebtedness. The results of operations of the acquired business, the fair value of the acquired assets and assumed liabilities, and the redeemable non-controlling interest are included in the Company’s Consolidated Financial Statements with effect from the date of the acquisition. In connection with the transaction, the Company recorded $300 in customer-related intangible assets, with an amortization period of five years. Goodwill arising from the acquisition amounted to $14,479, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. |
Cash and cash equivalents
Cash and cash equivalents | 3 Months Ended |
Mar. 31, 2016 | |
Cash and cash equivalents | 4. Cash and cash equivalents Cash and cash equivalents as of December 31, 2015 and March 31, 2016 are comprised of: As of December 31, As of March 31, 2015 2016 Deposits with banks $ 231,367 $ 170,715 Other cash and bank balances 219,540 259,080 Total $ 450,907 $ 429,795 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 3 Months Ended |
Mar. 31, 2016 | |
Accounts receivable, net of reserve for doubtful receivables | 5. Accounts receivable, net of reserve for doubtful receivables The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, Three months ended 2015 March 31, 2016 Opening Balance as of January 1 $ 15,192 $ 11,530 Additions charged to cost and expense 2,449 3,120 Deductions/effect of exchange rate fluctuations (6,111 ) 27 Closing Balance $ 11,530 $ 14,677 Accounts receivable were $601,667 and $620,275 and the reserves for doubtful receivables were $11,530 and $14,677, resulting in net accounts receivable balances of $590,137 and $605,598 as of December 31, 2015 and March 31, 2016, respectively. In addition, accounts receivable due after one year of $8,348 and $7,198 as of December 31, 2015 and March 31, 2016, respectively, are included under other assets in the consolidated balance sheets. Accounts receivable from related parties were $1,980 and $1,121 as of December 31, 2015 and March 31, 2016, respectively. There are no reserves for doubtful receivables in respect of amounts due from related parties. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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 items were determined using the following inputs as of December 31, 2015 and March 31, 2016: As of March 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices Significant Other Significant Other Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a, c) $ 33,467 $ — $ 33,467 $ — Total $ 33,467 $ — $ 33,467 $ — Liabilities Earn-out consideration (Note b, d) $ 20,853 $ — $ — $ 20,853 Derivative instruments (Note b, c) $ 59,110 $ — $ 59,110 $ — Total $ 79,963 $ — $ 59,110 $ 20,853 Redeemable non-controlling interest (Note e) $ 3,621 $ — $ — $ 3,621 As of December 31, 2015 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Other Significant Other Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a, c) $ 30,380 $ — $ 30,380 $ — Total $ 30,380 $ — $ 30,380 $ — Liabilities Earn-out consideration (Note b, d) $ 22,820 $ — $ — $ 22,820 Derivative instruments (Note b, c) $ 59,620 $ — $ 59,620 $ — Total $ 82,440 $ — $ 59,620 $ 22,820 (a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. (b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of the acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. (e) The Company’s estimate of the fair value of redeemable non-controlling interest as of March 31, 2016 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions. The following table provides a roll-forward of the fair value of the contingent consideration categorized as level 3 for the three months ended March 31, 2015 and 2016: Three months ended 2015 2016 Opening Balance $ 33,990 $ 22,820 Earn-out consideration payable in connection with acquisitions — 8,120 Payments made on earn-out consideration (126 ) (965 ) Change in fair value and others (449 ) (9,122 ) Ending balance $ 33,415 $ 20,853 |
Derivative financial instrument
Derivative financial instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 along with exposure to interest rate fluctuation risk on its indebtedness. The Company has established risk management policies, including the use of derivative financial instruments, to hedge foreign currency assets and liabilities, foreign currency denominated forecasted cash flows and interest rate risk. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature between 0 and 57 months and the forecasted transactions are expected to occur during the same period. The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts Balance sheet exposure asset As of December 31, As of March 31, As of December 31, As of March 31, Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,139,400 $ 1,122,400 $ (48,197 ) $ (31,954 ) United States Dollars (sell) Mexican Peso (buy) 8,520 6,570 (1,163 ) (824 ) United States Dollars (sell) Philippines Peso (buy) 58,500 53,075 (1,387 ) 224 Euro (sell) United States Dollars (buy) 146,719 140,385 9,109 3,787 Euro (sell) Romanian Leu (buy) 39,027 31,516 567 1,036 Japanese Yen (sell) Chinese Renminbi (buy) 62,740 61,317 (1,379 ) (4,765 ) Pound Sterling (sell) United States Dollars (buy) 118,438 105,771 7,496 9,178 Australian Dollars (sell) United States Dollars (buy) 106,544 99,000 5,714 (399 ) Interest rate swaps (floating to fixed) — 200,000 — (1,926 ) (29,240 ) (25,643 ) (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 Balance Sheet. In accordance with the FASB guidance on Derivatives and Hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover future variability in exchange rates that affect the Company’s forecasted revenues and its purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, 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 December 31, As of March 31, As of December 31, As of March 31, Assets Prepaid expenses and other current assets $ 17,400 $ 18,164 $ 884 $ 1,872 Other assets $ 12,096 $ 13,431 $ — $ — Liabilities Accrued expenses and other current liabilities $ 34,576 $ 28,510 $ 34 $ 208 Other liabilities $ 25,010 $ 30,392 $ — $ — Cash flow hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred. In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Three months ended March 31, 2015 2016 Before- Tax Net of Before- Tax Net of Opening balance as of January 1 $ (66,786 ) $ 23,646 $ (43,140 ) $ (30,090 ) $ 9,830 $ (20,260 ) Net gains (losses) reclassified into statement of income on completion of hedged transactions (9,254 ) 3,251 (6,003 ) (2,902 ) 702 (2,200 ) Changes in fair value of effective portion of outstanding derivatives, net 24,564 (8,734 ) 15,830 (79 ) (151 ) (230 ) Gain (loss) on cash flow hedging derivatives, net 33,818 (11,985 ) 21,833 2,823 (853 ) 1,970 Closing balance as of March 31 $ (32,968 ) $ 11,661 $ (21,307 ) $ (27,267 ) $ 8,977 $ (18,290 ) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Derivatives in Cash Flow Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Three months ended Three months ended Three months ended 2015 2016 2015 2016 2015 2016 Forward foreign exchange contracts $ 24,564 $ 1,847 Revenue $ 2,495 $ 3,871 Foreign exchange (gains) losses, net $ — $ — Interest rate swaps — (1,926 ) Cost of revenue (9,427 ) (5,312 ) Selling, general and administrative expenses (2,322 ) (1,461 ) $ 24,564 $ (79 ) $ (9,254 ) $ (2,902 ) $ — $ — Non-designated Hedges Derivatives not designated as hedging instruments Location of (Gain) Loss Amount of (Gain) Loss Three months ended March 31, 2015 2016 Forward foreign exchange contracts (Note a) Foreign exchange (gains) losses, net $ (2,244 ) $ (1,134 ) $ (2,244 ) $ (1,134 ) (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized (gains) losses and changes in the fair value of these derivatives are recorded in foreign exchange (gains) losses, net in the consolidated statements of income. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 3 Months Ended |
Mar. 31, 2016 | |
Prepaid expenses and other current assets | 8. Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: As of December 31, As of March 31, 2015 2016 Advance income and non-income taxes $ 52,953 $ 97,466 Deferred transition costs 36,620 37,594 Derivative instruments 18,284 20,036 Prepaid expenses 12,565 13,231 Customer acquisition cost 6,687 8,282 Employee advances 3,878 4,787 Deposits 1,820 1,745 Advances to suppliers 8,028 7,309 Others 13,190 8,085 $ 154,025 $ 198,535 |
Property, plant and equipment,
Property, plant and equipment, net | 3 Months Ended |
Mar. 31, 2016 | |
Property, plant and equipment, net | 9. Property, plant and equipment, net Property, plant and equipment, net consist of the following: As of December 31, As of March 31, 2015 2016 Property, plant and equipment, gross $ 556,518 $ 569,559 Less: Accumulated depreciation and amortization (381,122 ) (389,860 ) Property, plant and equipment, net $ 175,396 $ 179,699 Depreciation expense on property, plant and equipment for the three months ended March 31, 2015 and 2016 was $11,717 and $11,104, respectively. Computer software amortization for the three months ended March 31, 2015 and 2016 amounted to $2,362 and $2,345, 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 $562 and $294 for the three months ended March 31, 2015 and 2016, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and intangible assets | 10. Goodwill and intangible assets The following table presents the changes in goodwill for the year ended December 31, 2015 and three months ended March 31, 2016: As of December 31, As of March 31, 2015 2016 Opening balance $ 1,057,214 $ 1,038,346 Goodwill relating to acquisitions consummated during the period 7,674 14,479 Impact of measurement period adjustments (135 ) — Effect of exchange rate fluctuations (26,407 ) 2,912 Closing balance $ 1,038,346 $ 1,055,737 The total amount of goodwill deductible for tax purposes is $36,390 and $38,070 as of December 31, 2015 and March 31, 2016, 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, 2015 As of March 31, 2016 Gross carrying Accumulated Net Gross Accumulated Net Customer-related intangible assets $ 319,035 $ 247,463 $ 71,572 $ 320,177 $ 252,899 $ 67,278 Marketing-related intangible assets 42,749 27,021 15,728 42,697 27,763 14,934 Other intangible assets 29,729 18,427 11,301 31,137 23,701 7,436 $ 391,513 $ 292,911 $ 98,601 $ 394,011 $ 304,363 $ 89,648 Amortization expenses for intangible assets disclosed in the consolidated statements of income under amortization of acquired intangible assets for the three months ended March 31, 2015 and 2016 were $7,341 and $6,145, respectively. During the three months ended March 31, 2016, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset. Based on the results of such testing, the Company determined that the carrying value of the intangible asset exceeded the estimated undiscounted cash flows by $4,943 and recorded an additional charge to further reduce the carrying value by this amount. The Company used a combination of the income and cost approaches to determine the fair value of the intangible asset for the purpose of calculating the charge. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income. |
Short-term borrowings
Short-term borrowings | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 and March 31, 2016, the limits available were $15,781 and $15,502, respectively, of which $10,301 and $10,630 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, 2015 and March 31, 2016, a total of $22,947 and $82,947, respectively, was utilized, of which $21,500 and $81,500, respectively, constituted funded drawdown and $1,447 and $1,447, respectively, constituted non-funded drawdown. The revolving facility expires in June 2020. The funded drawdown amount bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum as of December 31, 2015. As of March 31, 2016, the revolving facility bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum. The unutilized amount on the revolving facility bore a commitment fee of 0.25% as of December 31, 2015 and March 31, 2016. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. For the three months ended March 31, 2016, the Company was in compliance with the financial covenants. (c) On January 27, 2015 and March 23, 2015, the Company obtained short-term loans 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 | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 and March 31, 2016, the amount outstanding under the term loan, net of debt amortization expense of $3,534 and $3,314, was $776,466 and $766,686, respectively. As of December 31, 2015 and March 31, 2016, 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 March 31, 2016 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 2016 $ 29,353 2017 39,181 2018 39,226 2019 39,272 2020 619,654 Total $ 766,686 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Accrued expenses and other current liabilities | 13. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: As of December 31, As of March 31, 2015 2016 Accrued expenses $ 161,672 $ 147,140 Accrued employee cost 158,054 96,541 Deferred transition revenue 44,974 45,157 Statutory liabilities 32,149 45,056 Retirement benefits 17,930 22,665 Derivative instruments 34,610 28,718 Advance from customers 19,815 23,649 Earn-out consideration 16,896 4,742 Other liabilities 12,210 12,468 Capital lease obligations 1,328 1,284 $ 499,638 $ 427,420 |
Employee benefit plans
Employee benefit plans | 3 Months Ended |
Mar. 31, 2016 | |
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 covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines and Japan sponsor defined benefit retirement programs. Net defined benefit plan costs for the three months ended March 31, 2015 and 2016 include the following components: Three months ended March 31, 2015 2016 Service costs $ 1,384 $ 1,403 Interest costs 678 698 Amortization of actuarial loss 85 56 Expected return on plan assets (549 ) (486 ) Net defined benefit plan costs $ 1,598 $ 1,671 Defined contribution plans During the three months ended March 31, 2015 and 2016, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended March 31, 2015 2016 India $ 3,909 $ 4,303 U.S. 2,628 3,532 U.K. 1,040 1,652 China 3,516 3,753 Other regions 1,106 1,265 Total $ 12,199 $ 14,505 |
Stock-based compensation
Stock-based compensation | 3 Months Ended |
Mar. 31, 2016 | |
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. During the year ended December 31, 2012, the number of common shares authorized for issuance under the 2007 Omnibus Plan and the 2005 Plan was increased by 8,858,823 and 495,915 shares, respectively, as a result of an adjustment to outstanding unvested share awards. Stock-based compensation costs relating to the foregoing plans during the three months ended March 31, 2015 and 2016 were $4,579 and $5,250, 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 three months ended March 31, 2015. No options were granted in the three months ended March 31, 2016. Three months ended Dividend yield — Expected life (in months) 84 Risk free rate of interest 1.99 % Volatility 34.97 % A summary of stock option activity during the three months ended March 31, 2016 is set out below: Three months ended March 31, 2016 Shares arising Weighted average Weighted average remaining Aggregate Outstanding as of January 1, 2016 5,986,845 $ 16.99 5.8 $ — Granted — — — — Forfeited (25,000 ) 19.35 — — Expired — — — — Exercised (248,316 ) 16.96 — 2,539 Outstanding as of March 31, 2016 5,713,529 $ 16.98 5.5 $ 59,157 Vested as of March 31, 2016 and expected to vest thereafter (Note a) 5,541,849 $ 16.76 5.5 $ 57,790 Vested and exercisable as of March 31, 2016 3,492,030 $ 15.34 4.3 $ 41,382 Weighted average grant date fair value of grants during the period $ — a) Options expected to vest reflect an estimated forfeiture rate. As of March 31, 2016, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $12,484, which will be recognized over the weighted average remaining requisite vesting period of 2.2 years. Restricted Share Units The Company has granted restricted share units, or RSUs, under the 2007 Omnibus Plan. Each RSU represents the right to receive one Company 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 three months ended March 31, 2016 is set out below: Three months ended March 31, 2016 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2016 157,390 $ 17.67 Granted — — Vested (Note a) (5,256 ) 14.87 Forfeited (1,135 ) 14.18 Outstanding as of March 31, 2016 150,999 $ 17.80 Expected to vest (Note b) 143,800 (a) RSUs that vested during the period covered were net settled upon vesting by issuing 3,228 shares (net of minimum statutory tax withholding). (b) The number of RSUs expected to vest reflects an estimated forfeiture rate. 92,692 RSUs vested in the year ended December 31, 2014, in respect of which 91,963 shares were issued in January 2016 after withholding shares to the extent of the minimum statutory withholding taxes. 53,546 RSUs vested in the year ended December 31, 2015, shares in respect of which will be issuable on December 31, 2016 after withholding shares to the extent of minimum statutory withholding taxes. As of March 31, 2016, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $1,298, which will be recognized over the weighted average remaining requisite vesting period of 2.0 years. Performance Units The Company also grants stock awards in the form of performance units, or PUs, under the 2007 Omnibus Plan. Each PU represents the right to receive one Company 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 three months ended March 31, 2016 is set out below: Three months ended March 31, 2016 Number of Performance Weighted Average Maximum Outstanding as of January 1, 2016 2,499,322 $ 19.95 2,499,322 Granted — — — Vested — — — Forfeited (62,411 ) 19.56 (62,411 ) Adjustment upon final determination of level of performance goal achievement (Note a) 7,274 22.72 Adjustment upon final determination of level of performance goal achievement (Note a) 7,274 Outstanding as of March 31, 2016 2,444,185 $ 19.96 2,444,185 Expected to vest (Note b) 2,211,468 (a) Represents an adjustment made in March 2016 to the number of shares subject to the PUs granted in 2015 upon certification of the level of achievement of the performance targets underlying such awards. (b) The number of PUs expected to vest has been adjusted by an estimated forfeiture rate. As of March 31, 2016, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $20,591, which will be recognized over the weighted average remaining requisite vesting period of 1.5 years. Employee Stock Purchase Plan (ESPP) On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day in the subsequent May, August, November and February of each year. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP. During the three months ended March 31, 2015 and 2016, 34,162 and 30,487 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 the ESPP during the three months ended March 31, 2015 and 2016 was $81 and $86, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital stock
Capital stock | 3 Months Ended |
Mar. 31, 2016 | |
Capital stock | 16. Capital stock 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. On February 4, 2016, the Company announced that its Board of Directors approved an additional $250 million share repurchase program, bringing the total authorization under the Company’s existing program to $500 million. During the three months ended March 31, 2015 and 2016, the Company purchased 590,713 and 1,356,199 of its common shares, respectively at a weighted average price of $22.51 and $24.35 per share, respectively, for an aggregate cash amount of $13,298 and $33,017, respectively. The purchased shares have been retired. The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the three months ended March 31, 2015 and 2016, $12 and $27, respectively, was deducted from retained earnings in direct costs related to share repurchases. |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2016 | |
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 Company common shares. 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 number of 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 3,928,000 and 317,081 for the three months ended March 31, 2015 and 2016, respectively. Three months ended March 31, 2015 2016 Net income available to Genpact Limited common shareholders $ 44,653 $ 58,565 Weighted average number of common shares used in computing basic earnings per common share 219,892,695 210,780,165 Dilutive effect of stock-based awards 2,454,406 3,112,799 Weighted average number of common shares used in computing dilutive earnings per common share 222,347,101 213,892,964 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.20 $ 0.28 Diluted $ 0.20 $ 0.27 |
Cost of revenue
Cost of revenue | 3 Months Ended |
Mar. 31, 2016 | |
Cost of revenue | 18. Cost of revenue Cost of revenue consists of the following: Three months ended March 31, 2015 2016 Personnel expenses $ 242,948 $ 254,028 Operational expenses 102,797 107,542 Depreciation and amortization 11,731 11,278 $ 357,476 $ 372,848 |
Selling, general and administra
Selling, general and administrative expenses | 3 Months Ended |
Mar. 31, 2016 | |
Selling, general and administrative expenses | 19. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Three months ended March 31, 2015 2016 Personnel expenses $ 105,838 $ 108,400 Operational expenses 40,562 49,578 Depreciation and amortization 2,348 2,171 $ 148,748 $ 160,149 |
Other operating (income) expens
Other operating (income) expense, net | 3 Months Ended |
Mar. 31, 2016 | |
Other operating (income) expense, net | 20. Other operating (income) expense, net Three months ended March 31, 2015 2016 Other operating (income) expense $ (462 ) $ (498 ) Provision for impairment of intangible assets — 4,943 Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) — (9,506 ) Other operating (income) expense, net $ (462 ) $ (5,061 ) |
Interest income (expense), net
Interest income (expense), net | 3 Months Ended |
Mar. 31, 2016 | |
Interest income (expense), net | 21. Interest income (expense), net Three months ended March 31, 2015 2016 Interest income $ 1,196 $ 2,364 Interest expense (10,221 ) (5,202 ) Interest income (expense), net $ (9,025 ) $ (2,838 ) |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015, the Company had unrecognized tax benefits amounting to $26,357, including an amount of $24,935, 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, 2016 to March 31, 2016: 2016 Opening Balance at January 1 $ 26,357 Increase related to prior year tax positions, including recorded in acquisition accounting 13 Decrease related to prior year tax positions (764 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (166 ) Decrease related to settlements with tax authorities (2,000 ) Effect of exchange rate changes 119 Closing Balance at March 31 $ 23,559 The Company’s unrecognized tax benefits as of March 31, 2016 include an amount of $22,136, which, if recognized, would impact the effective tax rate. As of December 31, 2015 and March 31, 2016, the Company had accrued approximately $4,223 and $3,682, respectively, for interest relating to unrecognized tax benefits. During the year ended December 31, 2015 and the three months ended March 31, 2016, the company recognized approximately $1,152 and ($533), respectively, excluding exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2015 and March 31, 2016, the Company had accrued approximately $958 and $958, respectively, for penalties. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2015 and 2016, the Company recognized net revenues of $99 and $79, respectively, from a client that is a significant shareholder of the Company. For the three months ended March 31, 2015 and 2016, the Company recognized net revenues of $2,039 and $1,652, respectively, from a client that is a non-consolidating affiliate of the Company. $1,095 of this amount is receivable as of March 31, 2016. Cost of revenue from services The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, which are included in cost of revenue. For the three months ended March 31, 2015 and 2016, cost of revenue includes $390 and $498, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates. Selling, general and administrative expenses The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the three months ended March 31, 2015 and 2016, selling, general and administrative expenses includes $95 and $67, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates. During the three months ended March 31, 2015 and 2016, the Company engaged a significant shareholder to provide services to the Company at a cost of $399 and $15 respectively. Investment in equity affiliates During the three months ended March 31, 2016, the Company invested $3,783 in its non-consolidating affiliates. As of December 31, 2015 and March 31, 2016, $3,736 and $3,736, respectively, in investments in equity affiliates was accrued but not paid and has been included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. As of December 31, 2015 and March 31, 2016, the Company’s investments in its non-consolidating affiliates amounted to $6,677 and $8,315, respectively. Others During the three months ended March 31, 2016, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $329. As of December 31, 2015 and March 31, 2016, $853 and $329 is receivable, respectively. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and contingencies | 24. Commitments and contingencies Capital commitments As of December 31, 2015 and March 31, 2016, the Company has committed to spend $8,237 and $7,337, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases. Bank guarantees The Company has outstanding bank guarantees amounting to $11,748 and $12,077 as of December 31, 2015 and March 31, 2016, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purposes of maintaining bonded warehouses. These guarantees may be revoked by such government agencies if they suffer any losses or damages through the breach of any 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. |
Summary of significant accoun32
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015. 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. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in-capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to non-controlling interest in the consolidated statements of income. |
Use of estimates | (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, 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 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 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. |
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 18% and 18% of receivables as of December 31, 2015 and March 31, 2016, respectively. GE accounted for 19% and 18% of revenues for the three months ended March 31, 2015 and March 31, 2016, respectively. |
Recently adopted accounting pronouncements | (e) Recently adopted accounting pronouncements The following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures: Effective January 1, 2016, the Company has adopted FASB ASU 2015-01 (Topic 225): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the financial statements. Effective January 1, 2016, the Company has adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. Effective January 1, 2016, the Company has adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Effective January 1, 2016, the Company has adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. |
Summary of significant accoun33
Summary of significant accounting policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Cash And Cash Equivalents | Cash and cash equivalents as of December 31, 2015 and March 31, 2016 are comprised of: As of December 31, As of March 31, 2015 2016 Deposits with banks $ 231,367 $ 170,715 Other cash and bank balances 219,540 259,080 Total $ 450,907 $ 429,795 |
Accounts receivable, net of r35
Accounts receivable, net of reserve for doubtful receivables (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Reserve for Doubtful Receivables | The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, Three months ended 2015 March 31, 2016 Opening Balance as of January 1 $ 15,192 $ 11,530 Additions charged to cost and expense 2,449 3,120 Deductions/effect of exchange rate fluctuations (6,111 ) 27 Closing Balance $ 11,530 $ 14,677 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 items were determined using the following inputs as of December 31, 2015 and March 31, 2016: As of March 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices Significant Other Significant Other Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a, c) $ 33,467 $ — $ 33,467 $ — Total $ 33,467 $ — $ 33,467 $ — Liabilities Earn-out consideration (Note b, d) $ 20,853 $ — $ — $ 20,853 Derivative instruments (Note b, c) $ 59,110 $ — $ 59,110 $ — Total $ 79,963 $ — $ 59,110 $ 20,853 Redeemable non-controlling interest (Note e) $ 3,621 $ — $ — $ 3,621 As of December 31, 2015 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Other Significant Other Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a, c) $ 30,380 $ — $ 30,380 $ — Total $ 30,380 $ — $ 30,380 $ — Liabilities Earn-out consideration (Note b, d) $ 22,820 $ — $ — $ 22,820 Derivative instruments (Note b, c) $ 59,620 $ — $ 59,620 $ — Total $ 82,440 $ — $ 59,620 $ 22,820 (a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. (b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of the acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. (e) The Company’s estimate of the fair value of redeemable non-controlling interest as of March 31, 2016 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions. |
Fair Value of Contingent Consideration | The following table provides a roll-forward of the fair value of the contingent consideration categorized as level 3 for the three months ended March 31, 2015 and 2016: Three months ended 2015 2016 Opening Balance $ 33,990 $ 22,820 Earn-out consideration payable in connection with acquisitions — 8,120 Payments made on earn-out consideration (126 ) (965 ) Change in fair value and others (449 ) (9,122 ) Ending balance $ 33,415 $ 20,853 |
Derivative financial instrume37
Derivative financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure | The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts Balance sheet exposure asset As of December 31, As of March 31, As of December 31, As of March 31, Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,139,400 $ 1,122,400 $ (48,197 ) $ (31,954 ) United States Dollars (sell) Mexican Peso (buy) 8,520 6,570 (1,163 ) (824 ) United States Dollars (sell) Philippines Peso (buy) 58,500 53,075 (1,387 ) 224 Euro (sell) United States Dollars (buy) 146,719 140,385 9,109 3,787 Euro (sell) Romanian Leu (buy) 39,027 31,516 567 1,036 Japanese Yen (sell) Chinese Renminbi (buy) 62,740 61,317 (1,379 ) (4,765 ) Pound Sterling (sell) United States Dollars (buy) 118,438 105,771 7,496 9,178 Australian Dollars (sell) United States Dollars (buy) 106,544 99,000 5,714 (399 ) Interest rate swaps (floating to fixed) — 200,000 — (1,926 ) (29,240 ) (25,643 ) (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 December 31, As of March 31, As of December 31, As of March 31, Assets Prepaid expenses and other current assets $ 17,400 $ 18,164 $ 884 $ 1,872 Other assets $ 12,096 $ 13,431 $ — $ — Liabilities Accrued expenses and other current liabilities $ 34,576 $ 28,510 $ 34 $ 208 Other liabilities $ 25,010 $ 30,392 $ — $ — |
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Three months ended March 31, 2015 2016 Before- Tax Net of Before- Tax Net of Opening balance as of January 1 $ (66,786 ) $ 23,646 $ (43,140 ) $ (30,090 ) $ 9,830 $ (20,260 ) Net gains (losses) reclassified into statement of income on completion of hedged transactions (9,254 ) 3,251 (6,003 ) (2,902 ) 702 (2,200 ) Changes in fair value of effective portion of outstanding derivatives, net 24,564 (8,734 ) 15,830 (79 ) (151 ) (230 ) Gain (loss) on cash flow hedging derivatives, net 33,818 (11,985 ) 21,833 2,823 (853 ) 1,970 Closing balance as of March 31 $ (32,968 ) $ 11,661 $ (21,307 ) $ (27,267 ) $ 8,977 $ (18,290 ) |
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Derivatives in Cash Flow Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Location of Gain Amount of Gain (Loss) Three months ended Three months ended Three months ended 2015 2016 2015 2016 2015 2016 Forward foreign exchange contracts $ 24,564 $ 1,847 Revenue $ 2,495 $ 3,871 Foreign exchange (gains) losses, net $ — $ — Interest rate swaps — (1,926 ) Cost of revenue (9,427 ) (5,312 ) Selling, general and administrative expenses (2,322 ) (1,461 ) $ 24,564 $ (79 ) $ (9,254 ) $ (2,902 ) $ — $ — Non-designated Hedges Derivatives not designated as hedging instruments Location of (Gain) Loss Amount of (Gain) Loss Three months ended March 31, 2015 2016 Forward foreign exchange contracts (Note a) Foreign exchange (gains) losses, net $ (2,244 ) $ (1,134 ) $ (2,244 ) $ (1,134 ) (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 cu38
Prepaid expenses and other current assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: As of December 31, As of March 31, 2015 2016 Advance income and non-income taxes $ 52,953 $ 97,466 Deferred transition costs 36,620 37,594 Derivative instruments 18,284 20,036 Prepaid expenses 12,565 13,231 Customer acquisition cost 6,687 8,282 Employee advances 3,878 4,787 Deposits 1,820 1,745 Advances to suppliers 8,028 7,309 Others 13,190 8,085 $ 154,025 $ 198,535 |
Property, plant and equipment39
Property, plant and equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, plant and equipment, net | Property, plant and equipment, net consist of the following: As of December 31, As of March 31, 2015 2016 Property, plant and equipment, gross $ 556,518 $ 569,559 Less: Accumulated depreciation and amortization (381,122 ) (389,860 ) Property, plant and equipment, net $ 175,396 $ 179,699 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Changes in Goodwill | The following table presents the changes in goodwill for the year ended December 31, 2015 and three months ended March 31, 2016: As of December 31, As of March 31, 2015 2016 Opening balance $ 1,057,214 $ 1,038,346 Goodwill relating to acquisitions consummated during the period 7,674 14,479 Impact of measurement period adjustments (135 ) — Effect of exchange rate fluctuations (26,407 ) 2,912 Closing balance $ 1,038,346 $ 1,055,737 |
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, 2015 As of March 31, 2016 Gross carrying Accumulated Net Gross Accumulated Net Customer-related intangible assets $ 319,035 $ 247,463 $ 71,572 $ 320,177 $ 252,899 $ 67,278 Marketing-related intangible assets 42,749 27,021 15,728 42,697 27,763 14,934 Other intangible assets 29,729 18,427 11,301 31,137 23,701 7,436 $ 391,513 $ 292,911 $ 98,601 $ 394,011 $ 304,363 $ 89,648 |
Long-term debt (Tables)
Long-term debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 2016 $ 29,353 2017 39,181 2018 39,226 2019 39,272 2020 619,654 Total $ 766,686 |
Accrued expenses and other cu42
Accrued expenses and other current liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of December 31, As of March 31, 2015 2016 Accrued expenses $ 161,672 $ 147,140 Accrued employee cost 158,054 96,541 Deferred transition revenue 44,974 45,157 Statutory liabilities 32,149 45,056 Retirement benefits 17,930 22,665 Derivative instruments 34,610 28,718 Advance from customers 19,815 23,649 Earn-out consideration 16,896 4,742 Other liabilities 12,210 12,468 Capital lease obligations 1,328 1,284 $ 499,638 $ 427,420 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the three months ended March 31, 2015 and 2016 include the following components: Three months ended March 31, 2015 2016 Service costs $ 1,384 $ 1,403 Interest costs 678 698 Amortization of actuarial loss 85 56 Expected return on plan assets (549 ) (486 ) Net defined benefit plan costs $ 1,598 $ 1,671 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the three months ended March 31, 2015 and 2016, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended March 31, 2015 2016 India $ 3,909 $ 4,303 U.S. 2,628 3,532 U.K. 1,040 1,652 China 3,516 3,753 Other regions 1,106 1,265 Total $ 12,199 $ 14,505 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Payment Award, Stock Options Granted, Valuation Assumptions | The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in the three months ended March 31, 2015. No options were granted in the three months ended March 31, 2016. Three months ended Dividend yield — Expected life (in months) 84 Risk free rate of interest 1.99 % Volatility 34.97 % |
Summary of Stock Option Activity | A summary of stock option activity during the three months ended March 31, 2016 is set out below: Three months ended March 31, 2016 Shares arising Weighted average Weighted average remaining Aggregate Outstanding as of January 1, 2016 5,986,845 $ 16.99 5.8 $ — Granted — — — — Forfeited (25,000 ) 19.35 — — Expired — — — — Exercised (248,316 ) 16.96 — 2,539 Outstanding as of March 31, 2016 5,713,529 $ 16.98 5.5 $ 59,157 Vested as of March 31, 2016 and expected to vest thereafter (Note a) 5,541,849 $ 16.76 5.5 $ 57,790 Vested and exercisable as of March 31, 2016 3,492,030 $ 15.34 4.3 $ 41,382 Weighted average grant date fair value of grants during the period $ — a) Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Units Granted | A summary of RSUs granted during the three months ended March 31, 2016 is set out below: Three months ended March 31, 2016 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2016 157,390 $ 17.67 Granted — — Vested (Note a) (5,256 ) 14.87 Forfeited (1,135 ) 14.18 Outstanding as of March 31, 2016 150,999 $ 17.80 Expected to vest (Note b) 143,800 (a) RSUs that vested during the period covered were net settled upon vesting by issuing 3,228 shares (net of minimum statutory tax withholding). (b) The number of RSUs expected to vest reflects an estimated forfeiture rate. |
Summary of Performance Units Activity | A summary of PU activity during the three months ended March 31, 2016 is set out below: Three months ended March 31, 2016 Number of Performance Weighted Average Maximum Outstanding as of January 1, 2016 2,499,322 $ 19.95 2,499,322 Granted — — — Vested — — — Forfeited (62,411 ) 19.56 (62,411 ) Adjustment upon final determination of level of performance goal achievement (Note a) 7,274 22.72 Adjustment upon final determination of level of performance goal achievement (Note a) 7,274 Outstanding as of March 31, 2016 2,444,185 $ 19.96 2,444,185 Expected to vest (Note b) 2,211,468 (a) Represents an adjustment made in March 2016 to the number of shares subject to the PUs granted in 2015 upon certification of the level of achievement of the performance targets underlying such awards. (b) The number of PUs expected to vest has been adjusted by an estimated forfeiture rate. |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per share | Three months ended March 31, 2015 2016 Net income available to Genpact Limited common shareholders $ 44,653 $ 58,565 Weighted average number of common shares used in computing basic earnings per common share 219,892,695 210,780,165 Dilutive effect of stock-based awards 2,454,406 3,112,799 Weighted average number of common shares used in computing dilutive earnings per common share 222,347,101 213,892,964 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.20 $ 0.28 Diluted $ 0.20 $ 0.27 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Cost of Revenue | Cost of revenue consists of the following: Three months ended March 31, 2015 2016 Personnel expenses $ 242,948 $ 254,028 Operational expenses 102,797 107,542 Depreciation and amortization 11,731 11,278 $ 357,476 $ 372,848 |
Selling, general and administ47
Selling, general and administrative expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: Three months ended March 31, 2015 2016 Personnel expenses $ 105,838 $ 108,400 Operational expenses 40,562 49,578 Depreciation and amortization 2,348 2,171 $ 148,748 $ 160,149 |
Other operating (income) expe48
Other operating (income) expense, net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Operating (Income) Expense, Net | Three months ended March 31, 2015 2016 Other operating (income) expense $ (462 ) $ (498 ) Provision for impairment of intangible assets — 4,943 Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) — (9,506 ) Other operating (income) expense, net $ (462 ) $ (5,061 ) |
Interest income (expense), net
Interest income (expense), net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Interest Income (Expense), Net | Three months ended March 31, 2015 2016 Interest income $ 1,196 $ 2,364 Interest expense (10,221 ) (5,202 ) Interest income (expense), net $ (9,025 ) $ (2,838 ) |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 to March 31, 2016: 2016 Opening Balance at January 1 $ 26,357 Increase related to prior year tax positions, including recorded in acquisition accounting 13 Decrease related to prior year tax positions (764 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (166 ) Decrease related to settlements with tax authorities (2,000 ) Effect of exchange rate changes 119 Closing Balance at March 31 $ 23,559 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016EmployeeCountryCustomer | Oct. 25, 2012shares | |
Organization [Line Items] | ||
Number of professionals around the globe, minimum | Employee | 70,000 | |
Number of countries in which entity operates | Country | 25 | |
Common stock shares purchased by affiliates of Bain Capital Partners | shares | 67,750,678 | |
Minimum | Fortune Global 500 | ||
Organization [Line Items] | ||
Number of clients | Customer | 100 |
Estimated Useful Lives of Intan
Estimated Useful Lives of Intangible Assets Acquired (Detail) | 3 Months Ended |
Mar. 31, 2016 | |
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 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Additional Information (Detail) - General Electric Company | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of accounts receivables | 18.00% | 18.00% | |
Percentage of revenues | 18.00% | 19.00% |
Business Acquisitions and Dives
Business Acquisitions and Divestitures - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 08, 2016 | Apr. 30, 2018 | Jan. 31, 2018 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,055,737 | $ 1,038,346 | $ 1,057,214 | |||
Strategic Sourcing Excellence LLC | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage acquired | 51.00% | |||||
Cash consideration to acquired certain assets and assumed certain liabilities | $ 2,550 | |||||
Contingent earn-out consideration-High end | 20,000 | |||||
Acquisition related cost | 164 | |||||
Acquired assets | 327 | |||||
Liabilities assumed | 617 | |||||
Preliminary estimated purchase consideration | 14,490 | |||||
Customer related intangible assets | $ 300 | |||||
Acquired intangible assets, weighted average amortization period | 5 years | |||||
Goodwill | $ 14,479 | |||||
Strategic Sourcing Excellence LLC | If either the call or put option is exercised | ||||||
Business Acquisition [Line Items] | ||||||
Equity method investment ownership percentage | 49.00% | |||||
Strategic Sourcing Excellence LLC | If either the call or put option is exercised | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Contingent earn-out consideration-High end | $ 9,800 | |||||
Strategic Sourcing Excellence LLC | Call Option | Scenario, Forecast | ||||||
Business Acquisition [Line Items] | ||||||
Equity method investment ownership percentage | 49.00% | |||||
Strategic Sourcing Excellence LLC | Selling Equityholders Put Option | Scenario, Forecast | ||||||
Business Acquisition [Line Items] | ||||||
Equity method investment ownership percentage | 49.00% | |||||
Strategic Sourcing Excellence LLC | Selling Equityholders Put Option | Scenario, Forecast | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Selling equity holders put option exercise price | $ 2,950 | |||||
Strategic Sourcing Excellence LLC | Selling Equityholders Put Option | Scenario, Forecast | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Selling equity holders put option exercise price | $ 2,450 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Line Items] | ||||
Deposits with banks | $ 170,715 | $ 231,367 | ||
Other cash and bank balances | 259,080 | 219,540 | ||
Total | $ 429,795 | $ 450,907 | $ 434,310 | $ 461,788 |
Reserve for Doubtful Receivable
Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Provisions for Doubtful Accounts [Line Items] | |||
Opening Balance | $ 11,530 | $ 15,192 | $ 15,192 |
Additions charged to cost and expense | 3,120 | $ 872 | 2,449 |
Deductions/effect of exchange rate fluctuations | 27 | (6,111) | |
Closing Balance | $ 14,677 | $ 11,530 |
Accounts Receivable, Net of R57
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross accounts receivable | $ 620,275,000 | $ 601,667,000 | |
Reserve for doubtful receivables | 14,677,000 | 11,530,000 | $ 15,192,000 |
Net accounts receivable | 605,598,000 | 590,137,000 | |
Accounts receivable due after one year | 7,198,000 | 8,348,000 | |
Accounts receivable from related parties | 1,121,000 | 1,980,000 | |
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 | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative instrument, asset | [1],[2] | $ 33,467 | $ 30,380 |
Total, assets | 33,467 | 30,380 | |
Earn-out consideration | [3],[4] | 20,853 | 22,820 |
Derivative instrument, liability | [2],[3] | 59,110 | 59,620 |
Total, liabilities | 79,963 | 82,440 | |
Redeemable non-controlling interest | [5] | 3,621 | |
Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative instrument, asset | [1],[2] | 33,467 | 30,380 |
Total, assets | 33,467 | 30,380 | |
Derivative instrument, liability | [2],[3] | 59,110 | 59,620 |
Total, liabilities | 59,110 | 59,620 | |
Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Earn-out consideration | [3],[4] | 20,853 | 22,820 |
Total, liabilities | 20,853 | $ 22,820 | |
Redeemable non-controlling interest | [5] | $ 3,621 | |
[1] | Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. | ||
[2] | The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. | ||
[3] | Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. | ||
[4] | The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of the acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company's estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. | ||
[5] | The Company's estimate of the fair value of redeemable non-controlling interest as of March 31, 2016 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3-Business Acquisitions. |
Fair Value of Contingent Consid
Fair Value of Contingent Consideration (Detail) - Fair Value, Inputs, Level 3 - Business Acquisition Contingent Consideration - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Opening Balance | $ 22,820 | $ 33,990 |
Earn-out consideration payable in connection with acquisitions | 8,120 | |
Payments made on earn-out consideration | (965) | (126) |
Change in fair value and others | (9,122) | (449) |
Ending balance | $ 20,853 | $ 33,415 |
Derivative Financial Instrume60
Derivative Financial Instruments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative [Line Items] | |
Forward foreign exchange contracts, minimum maturity period | 0 months |
Forward foreign exchange contracts, maximum maturity period | 57 months |
Aggregate Notional Principal Am
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (25,643) | $ (29,240) |
United States Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,122,400 | 1,139,400 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (31,954) | (48,197) |
United States Dollars (sell) Mexican Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 6,570 | 8,520 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (824) | (1,163) |
United States Dollars (sell) Philippines Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 53,075 | 58,500 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 224 | (1,387) |
Euro (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 140,385 | 146,719 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 3,787 | 9,109 |
Euro (sell) Romanian Leu (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 31,516 | 39,027 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 1,036 | 567 |
Japanese Yen (sell) Chinese Renminbi (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 61,317 | 62,740 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (4,765) | (1,379) |
Pound Sterling (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 105,771 | 118,438 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 9,178 | 7,496 |
Australian Dollars (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 99,000 | 106,544 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (399) | $ 5,714 |
Interest Rate Swap Floating To Fixed [Member] | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 200,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (1,926) | |
[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 | Mar. 31, 2016 | Dec. 31, 2015 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | $ 1,872 | $ 884 |
Not Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | 208 | 34 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | 18,164 | 17,400 |
Cash Flow Hedges | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of assets | 13,431 | 12,096 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | 28,510 | 34,576 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of liabilities | $ 30,392 | $ 25,010 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Opening balance, before-tax amount | $ (30,090) | $ (66,786) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount | (2,902) | (9,254) |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | (79) | 24,564 |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | 2,823 | 33,818 |
Closing balance, before-tax amount | (27,267) | (32,968) |
Opening balance, tax (expense) or benefit | 9,830 | 23,646 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit | 702 | 3,251 |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | (151) | (8,734) |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | (853) | (11,985) |
Closing balance, tax (expense) or benefit | 8,977 | 11,661 |
Opening balance, net of tax amount | (20,260) | (43,140) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount | (2,200) | (6,003) |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | (230) | 15,830 |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | 1,970 | 21,833 |
Closing balance, net of tax amount | $ (18,290) | $ (21,307) |
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 | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $ (79) | $ 24,564 | |
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | 0 | 0 | |
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (2,902) | (9,254) | |
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | (1,134) | (2,244) | |
Net revenues | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 3,871 | 2,495 | |
Cost of Revenue | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (5,312) | (9,427) | |
Selling, General and Administrative Expenses | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (1,461) | (2,322) | |
Foreign Exchange Contract | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | 1,847 | 24,564 | |
Amount of Gain (Loss) recognized in income on Derivative (Ineffective Portion and Amount excluded from Effectiveness Testing) | 0 | 0 | |
Foreign Exchange Contract | Foreign Exchange (Gains) Losses, Net | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | [1] | (1,134) | $ (2,244) |
Interest Rate Swap | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $ (1,926) | ||
[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 Cu65
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Prepaid Expenses And Other Current Assets [Line Items] | ||
Advance income and non-income taxes | $ 97,466 | $ 52,953 |
Deferred transition costs | 37,594 | 36,620 |
Derivative instruments | 20,036 | 18,284 |
Prepaid expenses | 13,231 | 12,565 |
Customer acquisition cost | 8,282 | 6,687 |
Employee advances | 4,787 | 3,878 |
Deposits | 1,745 | 1,820 |
Advances to suppliers | 7,309 | 8,028 |
Others | 8,085 | 13,190 |
Prepaid expenses and other current assets, net | $ 198,535 | $ 154,025 |
Property, Plant and Equipment66
Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 569,559 | $ 556,518 |
Less: Accumulated depreciation and amortization | (389,860) | (381,122) |
Property, plant and equipment, net | $ 179,699 | $ 175,396 |
Property, Plant and Equipment67
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 13,155 | $ 13,517 |
Depreciation Expense on Property, Plant And Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | 11,104 | 11,717 |
Computer Software Amortization | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | 2,345 | 2,362 |
Effect of Reclassification of Foreign Exchange (Gains) Losses | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 294 | $ 562 |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Opening balance | $ 1,038,346 | $ 1,057,214 |
Goodwill relating to acquisitions consummated during the period | 14,479 | 7,674 |
Impact of measurement period adjustments | (135) | |
Effect of exchange rate fluctuations | 2,912 | (26,407) |
Closing balance | $ 1,055,737 | $ 1,038,346 |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill deductible for tax purposes | $ 38,070 | $ 36,390 | |
Amortization of acquired intangible assets | 6,145 | $ 7,341 | |
Intangible assets write-down | $ 4,943 |
Intangible Assets Acquired Eith
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 394,011 | $ 391,513 |
Accumulated amortization | 304,363 | 292,911 |
Net | 89,648 | 98,601 |
Customer-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 320,177 | 319,035 |
Accumulated amortization | 252,899 | 247,463 |
Net | 67,278 | 71,572 |
Marketing-Related Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 42,697 | 42,749 |
Accumulated amortization | 27,763 | 27,021 |
Net | 14,934 | 15,728 |
Other Intangible Assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 31,137 | 29,729 |
Accumulated amortization | 23,701 | 18,427 |
Net | $ 7,436 | $ 11,301 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | 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 | $ 15,502 | $ 15,781 | ||||
Utilization of credit facility for non fund-based usage | 10,630 | 10,301 | ||||
Credit facility, maximum borrowing capacity | $ 925,000 | |||||
Credit facility, amount utilized | $ 82,947 | $ 22,947 | ||||
Margin over LIBOR | 1.50% | 1.50% | 1.50% | |||
Percentage of commitment fee | 0.25% | 0.25% | ||||
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 | $ 81,500 | $ 21,500 | ||||
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 | $ 81,500 | $ 21,500 | ||||
Margin over LIBOR | 1.50% | 1.50% | ||||
Non-Fund-Based Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility, amount utilized | $ 1,447 | $ 1,447 | ||||
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 | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2013 | Mar. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | 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% | 1.50% | |||
Term loan amounts outstanding | $ 766,686 | $ 776,466 | ||||
Debt amortization expense | 3,314 | $ 3,534 | ||||
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Long-Term Debt | ||
2,016 | $ 29,353 | |
2,017 | 39,181 | |
2,018 | 39,226 | |
2,019 | 39,272 | |
2,020 | 619,654 | |
Term loan amounts outstanding | $ 766,686 | $ 776,466 |
Accrued Expenses and Other Cu74
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Accrued expenses | $ 147,140 | $ 161,672 |
Accrued employee cost | 96,541 | 158,054 |
Deferred transition revenue | 45,157 | 44,974 |
Statutory liabilities | 45,056 | 32,149 |
Retirement benefits | 22,665 | 17,930 |
Derivative instruments | 28,718 | 34,610 |
Advance from customers | 23,649 | 19,815 |
Earn-out consideration | 4,742 | 16,896 |
Other liabilities | 12,468 | 12,210 |
Capital lease obligations | 1,284 | 1,328 |
Accrued expenses and other current liabilities, net | $ 427,420 | $ 499,638 |
Net Defined Benefit Plan Costs
Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service costs | $ 1,403 | $ 1,384 |
Interest costs | 698 | 678 |
Amortization of actuarial loss | 56 | 85 |
Expected return on plan assets | (486) | (549) |
Net defined benefit plan costs | $ 1,671 | $ 1,598 |
Amounts Contributed to Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | $ 14,505 | $ 12,199 |
India | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 4,303 | 3,909 |
U.S. | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 3,532 | 2,628 |
U.K. | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 1,652 | 1,040 |
China | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 3,753 | 3,516 |
Other regions | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | $ 1,265 | $ 1,106 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 11, 2012 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation cost | $ 5,250 | $ 4,579 | ||
Options granted, contractual period, years | 10 years | |||
Unrecognized stock-based compensation cost for options | $ 12,484 | |||
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 | 5,593,200 | 8,858,823 | ||
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 2 months 12 days | |||
Restricted Share Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining requisite vesting period | 2 years | |||
Unrecognized stock-based compensation cost | $ 1,298 | |||
Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining requisite vesting period | 1 year 6 months | |||
Unrecognized stock-based compensation cost | $ 20,591 | |||
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of fair value per share allowed to eligible employees to purchase through payroll deductions | 90.00% | |||
Maximum percentage of employee's base salary allowed to be purchased | 15.00% | |||
Maximum dollar amount of common shares allowed to be purchased | $ 25 | |||
Common shares reserved for issuance | 4,200,000 | |||
Number of common shares issued under ESPP | 30,487 | 34,162 | ||
Compensation expense for ESPP | $ 86 | $ 81 |
Significant Assumptions used in
Significant Assumptions used in Determination of Fair Value of Options Granted (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Assumptions used to Determine Fair Value Options [Line Items] | |
Dividend yield | 0.00% |
Expected life (in months) | 84 months |
Risk free rate of interest | 1.99% |
Volatility | 34.97% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | ||
Shares arising out of options | |||
Outstanding, shares arising out of options, beginning balance | 5,986,845 | ||
Granted, shares arising out of options | 0 | ||
Forfeited, shares arising out of options | (25,000) | ||
Expired, shares arising out of options | 0 | ||
Exercised, shares arising out of options | (248,316) | ||
Outstanding, shares arising out of options, ending balance | 5,713,529 | 5,986,845 | |
Vested and expected to vest thereafter, shares arising out of options | [1] | 5,541,849 | |
Vested and exercisable, shares arising out of options | 3,492,030 | ||
Weighted average grant date fair value of grants during the period | $ 0 | ||
Weighted average exercise price | |||
Outstanding weighted average exercise price, beginning balance | 16.99 | ||
Granted, weighted average exercise price | 0 | ||
Forfeited, weighted average exercise price | 19.35 | ||
Expired, weighted average exercise price | 0 | ||
Exercised, weighted average exercise price | 16.96 | ||
Outstanding weighted average exercise price, ending balance | 16.98 | $ 16.99 | |
Vested and expected to vest thereafter, weighted average exercise price | [1] | 16.76 | |
Vested and exercisable, weighted average exercise price | $ 15.34 | ||
Weighted average remaining contractual life (years) | |||
Outstanding weighted average remaining contractual life (years) | 5 years 6 months | 5 years 9 months 18 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [1] | 5 years 6 months | |
Vested and exercisable, weighted average remaining contractual life (years) | 4 years 3 months 18 days | ||
Aggregate intrinsic value | |||
Exercised, aggregate intrinsic value | $ 0 | ||
Outstanding aggregate intrinsic value, ending balance | 59,157 | ||
Vested and expected to vest thereafter, aggregate intrinsic value | [1] | 57,790 | |
Vested and exercisable, aggregate intrinsic value | $ 41,382 | ||
[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 | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Number of Restricted Share Units | |||||
Outstanding number of shares (Units), beginning balance | 157,390 | ||||
Granted, number of shares (Units) | 0 | ||||
Vested, number of shares (Units) | [1] | (5,256) | |||
Forfeited, number of shares (Units) | (1,135) | ||||
Outstanding number of shares (Units), ending balance | 150,999 | 157,390 | |||
Expected to vest, number of shares (Units) | [2] | 143,800 | |||
Weighted Average Grant Date Fair Value | |||||
Outstanding weighted average grant date fair value, beginning balance | $ 17.67 | ||||
Granted, weighted average grant date fair value | 0 | ||||
Vested, weighted average grant date fair value | [1] | 14.87 | |||
Forfeited, weighted average grant date fair value | 14.18 | ||||
Outstanding weighted average grant date fair value, ending balance | $ 17.80 | $ 17.67 | |||
Vested RSU against which shares to be issued | 53,546 | 92,692 | |||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 3,228 | 91,963 | |||
[1] | RSUs that vested during the period covered were net settled upon vesting by issuing 3,228 shares (net of minimum statutory tax withholding). | ||||
[2] | The number of RSUs expected to vest reflects an estimated forfeiture rate. |
Summary of Restricted Share U81
Summary of Restricted Share Units Granted (Parenthetical) (Detail) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jan. 31, 2016 | |
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) | 3,228 | 91,963 |
Summary of Performance Units Ac
Summary of Performance Units Activity (Detail) - Performance Units | 3 Months Ended | |
Mar. 31, 2016$ / sharesshares | ||
Number of Share Units | ||
Outstanding number of shares (Units), beginning balance | 2,499,322 | |
Granted, number of shares (Units) | 0 | |
Vested, number of shares (Units) | 0 | |
Forfeited, number of shares (Units) | (62,411) | |
Adjustment upon final determination of level of performance goal achievement | 7,274 | [1] |
Outstanding number of shares (Units), ending balance | 2,444,185 | |
Expected to vest, number of shares | 2,211,468 | [2] |
Weighted Average Grant Date Fair Value | ||
Outstanding weighted average grant date fair value, beginning balance | $ / shares | $ 19.95 | |
Granted, weighted average grant date fair value | $ / shares | 0 | |
Vested, weighted average grant date fair value | $ / shares | 0 | |
Forfeited, weighted average grant date fair value | $ / shares | 19.56 | |
Adjustment upon final determination of level of performance goal achievement | $ / shares | 22.72 | [1] |
Outstanding weighted average grant date fair value, ending balance | $ / shares | $ 19.96 | |
Maximum shares eligible to receive | ||
Outstanding maximum shares eligible to receive, beginning balance | 2,499,322 | |
Granted, maximum shares eligible to receive | 0 | |
Vested, maximum shares eligible to receive | 0 | |
Forfeited, maximum shares eligible to receive | (62,411) | |
Adjustment upon final determination of level of performance goal achievement | 7,274 | [1] |
Outstanding maximum shares eligible to receive, ending balance | 2,444,185 | |
[1] | Represents an adjustment made in March 2016 to the number of shares subject to the PUs granted in 2015 upon certification of the level of achievement of the performance targets underlying such awards. | |
[2] | The number of PUs expected to vest has been adjusted by an estimated forfeiture rate. |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Feb. 04, 2016 | Feb. 28, 2015 | |
Class of Stock [Line Items] | ||||
Stock repurchase authorized amount | $ 250,000,000 | |||
Shares repurchased and retired (in shares) | 1,356,199 | 590,713 | ||
Common stock shares repurchased price per share | $ 24.35 | $ 22.51 | ||
Aggregate amount of common stock shares repurchased | $ 33,017,000 | $ 13,298,000 | ||
Expenses related to stock purchases | $ 27,000 | $ 12,000 | ||
February 2015 Stock Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Stock repurchase authorized amount | $ 500,000,000 | |||
Maximum | ||||
Class of Stock [Line Items] | ||||
Stock repurchase authorized amount | $ 250,000,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | 317,081 | 3,928,000 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share (Abstract) | ||
Net income available to Genpact Limited common shareholders | $ 58,565 | $ 44,653 |
Weighted average number of common shares used in computing basic earnings per common share | 210,780,165 | 219,892,695 |
Dilutive effect of stock-based awards | 3,112,799 | 2,454,406 |
Weighted average number of common shares used in computing dilutive earnings per common share | 213,892,964 | 222,347,101 |
Earnings per common share attributable to Genpact Limited common shareholders, Basic | $ 0.28 | $ 0.20 |
Earnings per common share attributable to Genpact Limited common shareholders, Diluted | $ 0.27 | $ 0.20 |
Cost of Revenue (Detail)
Cost of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Component of Operating Other Cost and Expense [Abstract] | ||
Cost of revenue | $ 372,848 | $ 357,476 |
Personnel expenses | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Cost of revenue | 254,028 | 242,948 |
Operational expenses | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Cost of revenue | 107,542 | 102,797 |
Depreciation and amortization | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Cost of revenue | $ 11,278 | $ 11,731 |
Selling, General and Administ87
Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Component of Operating Other Cost and Expense [Abstract] | ||
Selling, general and administrative expenses | $ 160,149 | $ 148,748 |
Personnel expenses | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Selling, general and administrative expenses | 108,400 | 105,838 |
Operational expenses | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Selling, general and administrative expenses | 49,578 | 40,562 |
Depreciation and amortization | ||
Component of Operating Other Cost and Expense [Abstract] | ||
Selling, general and administrative expenses | $ 2,171 | $ 2,348 |
Other Operating Income (Expense
Other Operating Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Components of Other Operating Income [Line Items] | ||
Other operating (income) expense | $ (498) | $ (462) |
Provision for impairment of intangible assets | 4,943 | |
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | (9,506) | |
Other operating (income) expense, net | $ (5,061) | $ (462) |
Interest Income (Expense), Ne89
Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest Income Expense Net [Line Items] | ||
Interest income | $ 2,364 | $ 1,196 |
Interest expense | (5,202) | (10,221) |
Interest income (expense), net | $ (2,838) | $ (9,025) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Line Items] | ||
Unrecognized tax benefits | $ 23,559 | $ 26,357 |
Unrecognized tax benefits that would impact effective tax rate | 22,136 | 24,935 |
Unrecognized tax benefits, interest on income taxes accrued | 3,682 | 4,223 |
Unrecognized tax benefits, excluding exchange rate differences in interest expense recognized | (533) | 1,152 |
Accrued penalties | $ 958 | $ 958 |
Activities Related to Unrecogni
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Income Tax Contingency [Line Items] | |
Beginning balance | $ 26,357 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 13 |
Decrease related to prior year tax positions | (764) |
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (166) |
Decrease related to settlements with tax authorities | (2,000) |
Effect of exchange rate changes | 119 |
Ending balance | $ 23,559 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Accounts receivable from related parties | $ 1,121 | $ 1,980 | |
Investment in equity affiliates | 8,315 | 6,677 | |
Affiliate of Significant Shareholder | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 79 | $ 99 | |
Customer In Which Companys Non-consolidating Affiliate | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 1,652 | 2,039 | |
Accounts receivable from related parties | 1,095 | ||
Non-Consolidating Affiliates | |||
Related Party Transaction [Line Items] | |||
Cost of revenue | 498 | 390 | |
Selling, general and administrative expenses, net of recovery | 67 | 95 | |
Investment in equity affiliates | 3,783 | ||
Investment in equity affiliates | 8,315 | 6,677 | |
Cost reimbursements from non-consolidating affiliates | 329 | ||
Non-Consolidating Affiliates | Accrued Expenses and Other Current Liabilities | |||
Related Party Transaction [Line Items] | |||
Investment in equity affiliates outstanding | 3,736 | 3,736 | |
Non-Consolidating Affiliates | Prepaid Expenses and Other Current Assets | |||
Related Party Transaction [Line Items] | |||
Reimbursements receivable | 329 | $ 853 | |
Significant Shareholder of Company | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative expenses, net of recovery | $ 15 | $ 399 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Line Items] | ||
Bank guarantees, outstanding | $ 12,077 | $ 11,748 |
Capital Addition Purchase Commitments | ||
Commitments and Contingencies [Line Items] | ||
Commitments and contingencies | $ 7,337 | $ 8,237 |