Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | G | ||
Entity Registrant Name | GENPACT LTD | ||
Entity Central Index Key | 1,398,659 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 198,970,955 | ||
Entity Public Float | $ 4,049,244,809 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 422,623 | $ 450,907 |
Accounts receivable, net | 615,265 | 590,137 |
Prepaid expenses and other current assets | 189,149 | 154,025 |
Total current assets | 1,227,037 | 1,195,069 |
Property, plant and equipment, net | 200,115 | 175,396 |
Deferred tax assets | 70,143 | 99,395 |
Investment in equity affiliates | 4,800 | 6,677 |
Intangible assets, net | 72,049 | 98,601 |
Goodwill | 1,069,408 | 1,038,346 |
Other assets | 242,328 | 180,005 |
Total assets | 2,885,880 | 2,793,489 |
Current liabilities | ||
Short-term borrowings | 160,000 | 21,500 |
Current portion of long-term debt | 39,181 | 39,134 |
Accounts payable | 9,768 | 10,086 |
Income taxes payable | 24,159 | 24,122 |
Accrued expenses and other current liabilities | 498,247 | 499,638 |
Total current liabilities | 731,355 | 594,480 |
Long-term debt, less current portion | 698,152 | 737,332 |
Deferred tax liabilities | 2,415 | 2,093 |
Other liabilities | 162,790 | 155,228 |
Total liabilities | 1,594,712 | 1,489,133 |
Redeemable non-controlling interest | 4,520 | |
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 198,794,052 issued and outstanding as of December 31, 2015 and December 31, 2016, respectively | 1,984 | 2,111 |
Additional paid-in capital | 1,384,468 | 1,342,022 |
Retained earnings | 358,121 | 411,508 |
Accumulated other comprehensive income (loss) | (457,925) | (451,285) |
Total equity | 1,286,648 | 1,304,356 |
Commitments and contingencies | ||
Total liabilities, redeemable non-controlling interest and equity | $ 2,885,880 | $ 2,793,489 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
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 | 198,794,052 | 211,472,312 |
Common shares, outstanding | 198,794,052 | 211,472,312 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net revenues | $ 2,570,756 | $ 2,461,044 | $ 2,279,438 |
Cost of revenue | 1,554,707 | 1,493,547 | 1,378,088 |
Gross profit | 1,016,049 | 967,497 | 901,350 |
Operating expenses: | |||
Selling, general and administrative expenses | 653,029 | 608,114 | 585,646 |
Amortization of acquired intangible assets | 27,183 | 28,513 | 28,543 |
Other operating (income) expense, net | (4,940) | (3,322) | (6,870) |
Income from operations | 340,777 | 334,192 | 294,031 |
Foreign exchange gains (losses), net | 2,630 | 5,269 | (12,363) |
Interest income (expense), net | (16,184) | (31,267) | (29,395) |
Other income (expense), net | 10,120 | 4,360 | 2,112 |
Income before equity-method investment activity, net and income tax expense | 337,343 | 312,554 | 254,385 |
Gain (loss) on equity-method investment activity, net | (7,698) | (10,800) | (4,795) |
Income before income tax expense | 329,645 | 301,754 | 249,590 |
Income tax expense | 62,098 | 61,937 | 57,419 |
Net income | 267,547 | 239,817 | 192,171 |
Net loss (income) attributable to non-controlling interest/ redeemable non-controlling interest | 2,137 | (169) | |
Net income attributable to Genpact Limited shareholders | 269,684 | 239,817 | 192,002 |
Net income available to Genpact Limited common shareholders | $ 269,684 | $ 239,817 | $ 192,002 |
Earnings per common share attributable to Genpact Limited common shareholders | |||
Basic | $ 1.30 | $ 1.11 | $ 0.87 |
Diluted | $ 1.28 | $ 1.09 | $ 0.85 |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||
Basic | 206,861,536 | 216,606,542 | 220,847,098 |
Diluted | 210,126,023 | 219,145,044 | 225,168,665 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income (loss) | $ 267,547 | $ 239,817 | $ 192,171 |
Other comprehensive income: | |||
Net gain (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 43,742 | 22,880 | 90,200 |
Retirement benefits, net of taxes | 4,042 | ||
Other comprehensive income (loss) | (38,801) | 47,119 | |
Genpact Limited Shareholders | |||
Net income (loss) | 269,684 | 239,817 | 192,002 |
Other comprehensive income: | |||
Currency translation adjustments | (46,340) | (64,504) | (41,964) |
Net gain (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 43,742 | 22,880 | 90,200 |
Retirement benefits, net of taxes | (4,042) | 2,823 | (1,106) |
Other comprehensive income (loss) | (6,640) | (38,801) | 47,130 |
Comprehensive income (loss) | 263,044 | $ 201,016 | 239,132 |
Redeemable non-controlling interest | |||
Net income (loss) | (2,137) | 169 | |
Other comprehensive income: | |||
Currency translation adjustments | 104 | (11) | |
Other comprehensive income (loss) | 104 | (11) | |
Comprehensive income (loss) | $ (2,033) | $ 158 |
Consolidated Statements of Equi
Consolidated Statements of Equity and Redeemable Non-controlling Interest - USD ($) $ in Thousands | Total | Common shares | Additional Paid- in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Redeemable non-controlling interest | Total Equity | |
Beginning balance, value (in shares) at Dec. 31, 2013 | 231,262,576 | |||||||
Beginning balance, value at Dec. 31, 2013 | $ 1,324,068 | $ 2,310 | $ 1,268,344 | $ 511,699 | $ (459,614) | $ 1,329 | ||
Net settlement on issuance of common shares on exercise of options (in shares) | 3,972,535 | [1] | 3,319,760 | |||||
Net settlement on issuance of common shares on exercise of options | $ 16,051 | $ 33 | 16,018 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 151,461 | |||||||
Issuance of common shares under the employee stock purchase plan | 2,347 | $ 2 | 2,345 | |||||
Net settlement on vesting of restricted share units | (2,358) | $ 3 | (2,361) | |||||
Net settlement on vesting of restricted share units, shares | 329,311 | |||||||
Net settlement on vesting of performance units | (15,672) | $ 9 | (15,681) | |||||
Net settlement on vesting of performance units, shares | 913,939 | |||||||
Stock repurchased and retired | (302,625) | $ (173) | (302,452) | |||||
Stock repurchased and retired, shares | (17,292,842) | |||||||
Excess tax benefit on stock-based Compensation | 0 | |||||||
Expenses related to stock purchase | (2,543) | (2,543) | ||||||
Distribution to non-controlling interest | (1,487) | (1,487) | ||||||
Stock-based compensation expense | 28,065 | 28,065 | ||||||
Comprehensive income: | ||||||||
Net income (loss) | 192,171 | 192,002 | 169 | $ 192,002 | ||||
Other comprehensive income | 47,119 | 47,130 | (11) | 47,130 | ||||
End balance, value (in shares) at Dec. 31, 2014 | 218,684,205 | |||||||
End balance, value at Dec. 31, 2014 | 1,285,136 | $ 2,184 | 1,296,730 | 398,706 | (412,484) | |||
Comprehensive income: | ||||||||
Net income (loss) | $ 192,171 | 192,002 | 169 | 192,002 | ||||
Net settlement on issuance of common shares on exercise of options (in shares) | 1,428,605 | 1,428,605 | ||||||
Net settlement on issuance of common shares on exercise of options | $ 13,564 | $ 14 | 13,550 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 121,485 | |||||||
Issuance of common shares under the employee stock purchase plan | 2,524 | $ 1 | 2,523 | |||||
Net settlement on vesting of restricted share units | (2,306) | $ 3 | (2,309) | |||||
Net settlement on vesting of restricted share units, shares | 259,776 | |||||||
Net settlement on vesting of performance units | $ 8 | (8) | ||||||
Net settlement on vesting of performance units, shares | 846,114 | |||||||
Stock repurchased and retired | $ (226,917) | $ (99) | (226,818) | |||||
Stock repurchased and retired, shares | (9,867,873) | (9,867,873) | ||||||
Excess tax benefit on stock-based Compensation | $ 6,560 | 6,560 | ||||||
Expenses related to stock purchase | (197) | (197) | ||||||
Stock-based compensation expense | 24,976 | 24,976 | ||||||
Net income (loss) | 239,817 | 239,817 | 239,817 | |||||
Other comprehensive income | $ (38,801) | (38,801) | (38,801) | |||||
End balance, value (in shares) at Dec. 31, 2015 | 211,472,312 | 211,472,312 | ||||||
End balance, value at Dec. 31, 2015 | $ 1,304,356 | $ 2,111 | 1,342,022 | 411,508 | (451,285) | 1,304,356 | ||
Comprehensive income: | ||||||||
Net income (loss) | $ 239,817 | 239,817 | 239,817 | |||||
Net settlement on issuance of common shares on exercise of options (in shares) | 994,155 | 994,155 | ||||||
Net settlement on issuance of common shares on exercise of options | $ 10 | 14,886 | 14,896 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 146,685 | |||||||
Issuance of common shares under the employee stock purchase plan | $ 1 | 3,331 | 3,332 | |||||
Net settlement on vesting of restricted share units | $ 1 | (884) | (883) | |||||
Net settlement on vesting of restricted share units, shares | 121,682 | |||||||
Stock repurchased and retired | $ (139) | (345,061) | (345,200) | |||||
Stock repurchased and retired, shares | (13,940,782) | (13,940,782) | ||||||
Excess tax benefit on stock-based Compensation | $ 0 | |||||||
Expenses related to stock purchase | (279) | (279) | (279) | |||||
Stock-based compensation expense | 25,113 | 25,113 | ||||||
Redeemable non-controlling interest | 3,910 | |||||||
Change in fair value of redeemable non-controlling interest | (2,643) | 2,643 | (2,643) | |||||
Deferred tax assets recognized on early adoption of ASU 2016-09 | 24,912 | 24,912 | ||||||
Net income (loss) | $ 267,547 | 269,684 | (2,137) | 269,684 | ||||
Other comprehensive income | (6,640) | 104 | (6,640) | |||||
End balance, value (in shares) at Dec. 31, 2016 | 198,794,052 | 198,794,052 | ||||||
End balance, value at Dec. 31, 2016 | $ 1,984 | $ 1,384,468 | 358,121 | $ (457,925) | 4,520 | 1,286,648 | ||
Comprehensive income: | ||||||||
Net income (loss) | $ 267,547 | $ 269,684 | $ (2,137) | $ 269,684 | ||||
[1] | 2,138,601 of these options were net settled upon exercise by issuing 1,485,826 shares (net of minimum statutory withholding taxes). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net income attributable to Genpact Limited shareholders | $ 269,684 | $ 239,817 | $ 192,002 |
Net income (loss) attributable to non-controlling interest/redeemable non-controlling interest | (2,137) | 169 | |
Net income (loss) | 267,547 | 239,817 | 192,171 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 54,553 | 54,286 | 51,064 |
Amortization of debt issuance costs (including loss on extinguishment of debt) | 1,531 | 13,546 | 3,240 |
Amortization of acquired intangible assets | 27,183 | 28,513 | 28,543 |
Intangible assets write-down | 11,195 | 10,714 | |
Reserve for doubtful receivables | 7,282 | 2,449 | 3,107 |
Unrealized (gain) loss on revaluation of foreign currency asset/liability | 1,717 | (4,999) | 9,419 |
Equity-method investment activity, net | 7,698 | 10,800 | 4,795 |
Excess tax benefit on stock-based compensation | (1,004) | (6,560) | 0 |
Stock-based compensation expense | 25,113 | 24,976 | 28,065 |
Deferred income taxes | 30,454 | (18,713) | (12,252) |
Gain on divestiture | (5,214) | ||
Others, net | (41) | (238) | 1,291 |
Change in operating assets and liabilities: | |||
Increase in accounts receivable | (48,612) | (78,923) | (24,088) |
Increase in prepaid expenses, other current assets and other assets | (62,852) | (32,602) | (31,657) |
Increase (decrease) in accounts payable | (463) | (3,988) | (7,268) |
Increase (decrease) in accrued expenses, other current liabilities and other liabilities | 27,977 | 69,606 | 27,500 |
Increase (decrease) in income taxes payable | 704 | 18,757 | (2,092) |
Net cash provided by operating activities | 345,772 | 327,441 | 271,838 |
Investing activities | |||
Purchase of property, plant and equipment | (88,772) | (62,173) | (62,577) |
Proceeds from sale of property, plant and equipment | 547 | 1,486 | 564 |
Investment in equity affiliates | (9,620) | (18,423) | |
Short-term deposits placed | (25,000) | ||
Redemption of short-term deposits | 25,000 | ||
Payment for business acquisitions, net of cash acquired | (45,162) | (21,363) | (130,809) |
Proceeds from divestiture of business, net of cash divested | 17,242 | ||
Net cash used for investing activities | (125,765) | (100,473) | (192,822) |
Financing activities | |||
Repayment of capital lease obligations | (1,793) | (2,035) | (2,095) |
Payment of debt issuance and refinancing costs | (6,584) | ||
Proceeds from long-term debt | 800,000 | ||
Repayment of long-term debt | (40,000) | (684,875) | (6,750) |
Proceeds from short-term borrowings | 200,000 | 1,451,500 | 195,000 |
Repayment of short-term borrowings | (61,500) | (1,565,000) | (60,000) |
Proceeds from issuance of common shares under stock-based compensation plans | 18,228 | 16,088 | 30,144 |
Payment for net settlement of stock-based awards | (769) | (7,194) | (25,975) |
Payment of earn-out/deferred consideration | (1,485) | (230) | (1,088) |
Distribution to non-controlling interest | (1,487) | ||
Payment for stock purchased and retired | (345,200) | (226,917) | (302,625) |
Payment for expenses related to stock purchase | (279) | (197) | (2,543) |
Excess tax benefit on stock-based compensation | 6,560 | ||
Net cash used for financing activities | (232,798) | (218,884) | (177,419) |
Effect of exchange rate changes | (15,493) | (18,965) | (11,085) |
Net increase (decrease) in cash and cash equivalents | (12,791) | 8,084 | (98,403) |
Cash and cash equivalents at the beginning of the period | 450,907 | 461,788 | 571,276 |
Cash and cash equivalents at the end of the period | 422,623 | 450,907 | 461,788 |
Supplementary information | |||
Cash paid during the period for interest | 17,860 | 20,950 | 27,175 |
Cash paid during the period for income taxes | 46,731 | 72,102 | 83,803 |
Property, plant and equipment acquired under capital lease obligations | $ 2,206 | $ 1,656 | $ 2,176 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization (a) Nature of Operations The Company is a provider of digitally-powered business process management and services. The architect of the Lean Digital SM SM SM (b) Organization 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 investors. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of preparation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over 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 redeemable 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. 2. Summary of significant accounting policies (Continued) 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) Revenue recognition The Company derives its revenue primarily from business process outsourcing and information technology services, which are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been rendered and collectability is reasonably assured. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues on these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. Revenue with respect to fixed-price contracts for the development of software and related services is recognized in accordance with the percentage-of-completion method. Guidance has been drawn from Financial Accounting Standards Board (“FASB”) guidance on Software—Revenue Recognition to account for revenue from fixed-price arrangements for software development and related services in conformity with FASB guidance on Revenue Recognition—Construction—Type and Production-Type Contracts. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of its services. Revenue from multiple-element arrangements is recognized, for each element, based on (1) the attainment of the delivery criterion; (2) its fair value, which is determined using the selling price hierarchy of vendor-specific objective evidence (“VSOE”) of fair value, third-party evidence or best estimated selling price, as applicable, and (3) its allocated selling price, which is based on the relative sales price method. (d) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial condition, the amount of receivables 2. Summary of significant accounting policies (Continued) in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. (e) Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. (f) Short-term investments All liquid investments with an original maturity greater than 90 days but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative or trading purposes. (g) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Software 4-7 Leasehold improvements Lesser of lease period or 10 years Vehicles 3-4 The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. Capitalized software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. Advances paid towards the acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress.” (h) Research and development expense Development costs incurred for software to be sold, if any, are expensed as incurred as research and development costs until technological feasibility has been established for the product. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. 2. Summary of significant accounting policies (Continued) Thereafter, all software production costs will be capitalized and amortized over their useful lives and reported at the lower of unamortized cost and net realizable value. (i) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 3-9 years Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. In business combinations, where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income. (j) Impairment of long-lived assets Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. (k) Foreign currency The Company’s consolidated financial statements are reported in U.S. dollars, the Company’s functional currency. The functional currency for the Company’s subsidiaries organized in Europe, other than the United Kingdom, the Czech Republic and one subsidiary in Poland, is the euro, and the functional currencies of the 2. Summary of significant accounting policies (Continued) Company’s subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Israel, Japan, Morocco, South Africa, the Philippines, the United Kingdom, Poland, the Czech Republic, Hong Kong, Singapore, Australia, Canada and United Arab Emirates are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the Company’s subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. (l) Derivative instruments and hedging activities In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates. The Company purchases forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and forecasted transactions denominated in foreign currencies and interest rate swaps to mitigate interest rate fluctuation risk on its indebtedness. The Company recognizes derivative instruments and hedging activities as either assets or liabilities in its consolidated balance sheets and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Changes in the fair values of derivatives designated as cash flow hedges are deferred and recorded as a component of other comprehensive income (loss) reported under accumulated other comprehensive income (loss) until the hedged transactions occur and are then recognized in the consolidated statements of income along with the underlying hedged item and disclosed as part of “Total net revenues,” “Cost of revenue,” “Selling, general and administrative expenses,” and “Interest expense,” as applicable. Changes in the fair value of derivatives not designated as hedging instruments, and the ineffective portion of derivatives designated as cash flow hedges are recognized in the consolidated statements of income and are included in foreign exchange gains (losses), net, and other income (expense), net, respectively. With respect to derivatives designated as hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the inception of the hedge and on a quarterly basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative or portion thereof is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, the Company will prospectively discontinue hedge accounting with respect to that derivative. In all situations in which hedge accounting is discontinued and the derivative is retained, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent change in its fair value in the consolidated statements of income. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately, in foreign exchange gains (losses), net in the consolidated statements of income, the gains and losses attributable to such derivative that were accumulated in other comprehensive income (loss). (m) Income taxes The Company accounts for income taxes using the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current 2. Summary of significant accounting policies (Continued) year. In addition, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and all operating loss and tax credit carry forwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period that includes the enactment date or the filing or approval date of the tax status change. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company applies a two-step approach for recognizing and measuring the benefit of tax positions. The first step is to evaluate the tax position for recognition by determining, based on the technical merits, that the position will more likely than not be sustained upon examination. The second step is to measure the tax benefit as the largest amount of the tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company includes interest and penalties related to unrecognized tax benefits within income tax expense. (n) Employee benefit plans Contributions to defined contribution plans are charged to consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. (o) Stock-based compensation The Company recognizes and measures compensation expense for all stock-based awards based on the grant date fair value. For option awards, grant date fair value is determined under the option-pricing model (Black-Scholes-Merton) and for awards other than option awards, grant date fair value is determined on the basis of the fair market value of a Company common share on the date of grant of such awards. The Company recognizes compensation expense for stock-based awards net of estimated forfeitures. Stock-based compensation recognized in the consolidated statements of income for the years ended December 31, 2014, 2015 and 2016 is based on awards ultimately expected to vest. As a result, the expense has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from such estimates. (p) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, 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 2. Summary of significant accounting policies (Continued) for 18% and 15% of the Company’s receivables as of December 31, 2015 and 2016, respectively. GE accounted for 20%, 19% and 16% of the Company’s revenues in the years ended December 31, 2014, 2015 and 2016, respectively. (q) Earnings (loss) per share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. (r) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. (s) Recently adopted accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the company’s consolidated financial statements. The following recently released accounting standard has been adopted by the Company: In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the requirement for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in income tax expense or in additional paid-in capital. The Company elected to early adopt ASU 2016-09 on January 1, 2016 which will be applied using a modified retrospective approach. The treatment of forfeitures has not changed as we are electing to continue our current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, we have elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. The following recently released accounting standards have been adopted by the Company and 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. 2. Summary of significant accounting policies (Continued) 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 | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business acquisitions | 3. Business acquisitions A. Certain acquisitions (a) PNMSoft Ltd. On August 4, 2016, the Company acquired 100% of the outstanding equity interest in PNMSoft Limited (“PNM”), a company incorporated under the laws of Israel. The total purchase consideration paid by the Company to acquire PNM is $35,341. This amount includes the estimated fair value of contingent earn-out consideration, cash consideration of $28,128, net of cash acquired of $2,853, and an adjustment for working capital, transaction expenses and net debt. During the quarter ended December 31, 2016, the Company recorded a measurement period adjustment that resulted in a $155 decrease in the purchase consideration upon the recognition of an additional reserve for doubtful receivables with a value of $136 and a non-current liability with a value of $19. This adjustment also resulted in the creation of a deferred tax asset amounting to $25 with a corresponding impact on goodwill. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. The purchase agreement between the Company and the sellers of PNM provides for contingent earn-out consideration ranging from $0 to $9,000, payable by the Company to the sellers of PNM based on future performance relative to the thresholds specified in the earn-out calculation. This acquisition enhances the Company’s digital capabilities by adding dynamic workflow solutions and implementation services. In connection with this acquisition, the Company recorded $1,700 in customer-related intangibles, $1,630 in marketing-related intangibles and $5,110 in other intangible assets, which have a weighted average amortization period of two years. Goodwill arising from the acquisition amounted to $25,101, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $1,273 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company acquired assets with a value of $7,110, assumed liabilities amounting to $4,366 and recognized a net deferred tax liability of $944. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. 3. Business acquisitions (Continued) (b) Endeavour Software Technologies Private Limited On April 13, 2016, the Company acquired 100% of the outstanding equity interest in Endeavour Software Technologies Private Limited (“Endeavour”), a private limited company incorporated under the laws of India. The preliminary estimated total consideration paid by the Company for the acquisition of Endeavour is $14,443, subject to adjustment for closing date working capital and net debt. This amount includes the estimated fair value of contingent earn-out consideration, cash consideration of $10,028, net of cash acquired of $2,345, and a preliminary adjustment for working capital and net debt. Of this amount, $95 is payable by the Company to one of the sellers. The purchase agreement between the Company and the sellers of Endeavour also provides for contingent earn-out consideration ranging from $0 to $3,500, payable by the Company to the sellers based on future performance relative to the thresholds specified in the earn-out calculation. This acquisition enhances the Company’s digital capabilities by adding end-to-end mobility services. In connection with the transaction, the Company recorded $800 in customer-related intangibles, $900 in marketing-related intangibles and $950 in other intangible assets, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $8,870, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the capabilities in end-to-end mobility services, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $338 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company acquired certain assets with a value of $5,691, assumed certain liabilities amounting to $1,853 and recognized a new deferred tax liability of $915. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. (c) Strategic Sourcing Excellence Limited On January 8, 2016, the Company acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company. The total consideration paid by the Company to the selling equityholders for the acquired interest in SSE is $14,541. This amount includes the fair value of earn-out consideration, cash consideration of $2,550, and an adjustment for working capital, transaction expenses and indebtedness. During the quarter ended December 31, 2016, the Company recorded a measurement period adjustment that resulted in a $51 increase in the purchase consideration and the recognition of $69 in current assets and $16 in non-current assets, with a corresponding impact on goodwill of $34. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows in any period. The equity purchase agreement between the Company and the selling equityholders of SSE also provides for contingent earn-out consideration of up to $20,000, payable by the Company to the selling equityholders 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 sourcing and procurement consulting domain expertise. Acquisition-related costs of $164 have been included in selling, general and administrative expenses as incurred. Through this transaction, the Company acquired assets with a value of $412 and assumed liabilities amounting to $617. The results of operations of the acquired business, the fair value of the acquired assets and assumed liabilities, and redeemable non-controlling interest are included in the Company’s Consolidated Financial Statements with effect from the date of the acquisition. 3. Business acquisitions (Continued) 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 $14,445, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents future economic benefits the Company expects to derive from its expanded presence in the sourcing and procurement consulting domains, operating synergies and other anticipated benefits of combining the acquired operations with those of the Company. (d) Acquisition of delivery center in Japan On November 4, 2014, the Company acquired from Hitachi Management Partner, Corp. a finance-and-accounting service delivery center in Japan. In connection with the acquisition, the Company entered into a five-year business process outsourcing agreement with Hitachi Ltd. The purchase consideration for the acquisition is set forth below: Cash consideration after adjustment for pension underfunding and closing net assets value $ 10,539 Fair value of contingent earn-out consideration (ranging from $0 to $15,750) 11,198 Total estimated purchase consideration $ 21,737 The contingent earn-out consideration for this acquisition is based on additional work contracted by the delivery center for the period from November 4, 2014 to November 4, 2021. The total consideration paid by the Company at the closing of the transaction was $7,108, net of cash acquired of $3,491. With this acquisition, the Company has expanded its presence in Japan and strengthened its finance-and-accounting service offering. During the quarter ended December 31, 2015, the Company recorded a measurement period adjustment that resulted in a $96 increase in pension assets and the recognition of a current asset with a value of $147 with a corresponding impact on goodwill. The measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows in any period and were accordingly recorded during the period ended December 31, 2015. In connection with the transaction, the Company recorded $7,522 in customer-related intangible assets, which have a weighted average amortization period of seven years and against which a deferred tax liability of $2,496 was recorded. Goodwill arising from the acquisition, including measurement period adjustments, amounted to $16,791, which has been allocated to the Company’s China reporting unit and is non-deductible for tax purposes as the Company has not recorded any tax benefit for amortization. The goodwill primarily represents the cost savings, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. In connection with the transaction, the Company also assumed net liabilities amounting to $80, including measurement period adjustments. The results of operations of the delivery center and the fair value of its assets and liabilities are included in the Company’s consolidated financial statements with effect from November 4, 2014, the date of the acquisition. Acquisition-related costs of $796 have been included in selling, general and administrative expenses as incurred. 3. Business acquisitions (Continued) (e) Pharmalink Consulting Limited and Pharmalink Consulting Inc. On May 29, 2014, the Company acquired 100% of the outstanding equity interest in each of Pharmalink Consulting Limited, a company incorporated under the laws of England and Wales, and Pharmalink Consulting Inc., a California corporation (collectively referred to as “Pharmalink”). The purchase consideration for the acquisition is set forth below: Cash consideration after adjustment for net debt and working capital $ 126,069 Fair value of contingent earn-out consideration (ranging from $0 to $27,405) $ 12,730 Total estimated purchase consideration $ 138,799 The contingent earn-out consideration was based on gross profits and order bookings of sustainable outsourcing contracts for the period from June 1, 2014 to June 30, 2016. The total consideration paid at closing for the Company’s acquisition of Pharmalink was $123,701, net of cash acquired of $2,200. Pharmalink is a provider of regulatory affairs services to the life sciences industry. With this acquisition, the Company added regulatory consulting, outsourcing and operations capabilities for clients in the life sciences industry. The goodwill represents future economic benefits the Company expects to derive from its expanded presence in the regulatory affairs services industry, cost savings, operating synergies and other anticipated benefits of combining the acquired operations with those of the Company. During the quarter ended December 31, 2014, the Company recorded a measurement period adjustment that resulted in a non-current liability of $585 and a corresponding indemnification asset with no impact on goodwill. During the quarter ended June 30, 2015, the Company recorded a measurement period adjustment that resulted in a $168 increase in the purchase consideration, with a corresponding increase in goodwill. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows in any period and were accordingly recorded during the quarters ended December 31, 2014 and June 30, 2015, respectively. The following table summarizes the allocation of the estimated purchase price based on the fair value of the assets acquired and the liabilities assumed as of the date of acquisition, including measurement period adjustments: Purchase price $ 138,799 Acquisition-related costs included in selling, general and administrative expenses as incurred 1,977 Recognized amounts of identifiable assets acquired and liabilities assumed Net assets acquired 7,174 Intangible assets 29,923 Deferred tax asset (liability), net (8,419 ) Total identifiable net assets acquired $ 28,678 Goodwill 110,121 Total $ 138,799 Goodwill has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The intangible assets consist of customer-related and marketing-related intangible assets with a weighted average amortization period of six years. The results of operations of Pharmalink and the fair value of its assets and liabilities are included in the Company’s consolidated financial statements with effect from May 29, 2014, the date of the acquisition. 3. Business acquisitions (Continued) B. Divestiture (a) Atyati Technologies Private Limited In September 2016, the Company completed the sale of its cloud-hosted technology platform for the Indian rural banking sector (the “Business”), which the Company acquired in 2012. Net sale proceeds from the sale of the Business were $17,155, net of selling expenses of $427 and cash divested of $854. During the year ended December 31, 2016, the Business recorded net revenues of $14,958 and a net profit of $64. The Company recorded a gain of $5,214 in its consolidated statement of income in connection with the sale of the Business, calculated as follows: Net sale proceeds $ 17,155 Net assets of the business, including intangible assets, allocated goodwill and the translation impact thereof 11,941 Gain on divestiture included in other income (expense), net $ 5,214 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2016 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents As of December 31, 2015 2016 Cash and other bank balances $ 450,907 $ 422,623 Total $ 450,907 $ 422,623 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
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, 2014 2015 2016 Opening Balance as of January 1 $ 16,560 $ 15,192 $ 11,530 Additions due to acquisitions 178 — — Additions charged to cost and expense 3107 2,449 7,282 Deductions/effect of exchange rate fluctuations (4,653 ) (6,111 ) (3,293 ) Closing Balance $ 15,192 $ 11,530 $ 15,519 Accounts receivable were $601,667 and $630,784, and reserves for doubtful receivables were $11,530 and $15,519, resulting in net accounts receivable balances of $590,137 and $615,265 as of December 31, 2015 and 2016, respectively. In addition, accounts receivable due after one year of $8,348 and $3,272 as of December 31, 2015 and 2016, respectively, are included under other assets in the consolidated balance sheets. Accounts receivable from related parties were $1,980and $2,490 as of December 31, 2015 and 2016, respectively. There are no reserves for doubtful receivables for amounts due from related parties. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 6. Fair Value Measurements The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2015 and 2016: As of December 31, 2015 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Notes a,c) $ 30,380 $ — $ 30,380 $ — Total $ 30,380 $ — $ 30,380 $ — Liabilities Earn-out consideration (Notes b,d) $ 22,820 $ — $ — $ 22,820 Derivative instruments (Notes b,c) $ 59,620 $ — $ 59,620 $ — Total $ 82,440 $ — $ 59,620 $ 22,820 As of December 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices Active Markets Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Notes a,c) $ 55,386 $ — $ 55,386 $ — Total $ 55,386 $ — $ 55,386 $ — Liabilities Earn-out consideration (Notes b,d) $ 22,435 $ — $ — $ 22,435 Derivative instruments (Notes b,c) 17,353 — 17,353 — Total $ 39,788 $ — $ 17,353 $ 22,435 Redeemable non-controlling interest (Note e) $ 4,520 $ — $ — $ 4,520 (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 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 December 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. 6. Fair Value Measurements (Continued) The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the years ended December 31, 2015 and 2016: As of December 31 2015 2016 Opening Balance $ 33,990 $ 22,820 Earn-out consideration payable in connection with acquisitions — 14,550 Payments made on earn-out consideration (126 ) (1,611 ) Change in fair value and others (11,046 ) (13,324 ) Ending balance $ 22,820 $ 22,435 |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | 7. Derivative financial instruments The Company is exposed to the risk of rate fluctuations on foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities and foreign currency denominated forecasted cash flows and interest rate risks. 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 over periods of up to 60 months and the forecasted transactions are expected to occur during the same periods. The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2015 As of December 2016 As of December 31, 2015 As of December 31, 2016 Foreign exchange forward contracts denominated in: United States dollars (sell) Indian rupees (buy) $ 1,139,400 $ 1,108,400 $ (48,197 ) $ 6,669 United States dollars (sell) Mexican peso (buy) 8,520 9,120 (1,163 ) (187 ) United States dollars (sell) Philippines peso (buy) 58,500 70,050 (1,387 ) (1,036 ) Euro (sell) United States dollars (buy) 146,719 138,613 9,109 9,180 Euro (sell) Romanian leu (buy) 39,027 29,805 567 (152 ) Japanese yen (sell) Chinese renminbi (buy) 62,740 77,267 (1,379 ) (742 ) Pound sterling (sell) United States dollars (buy) 118,438 104,142 7,496 14,228 Australian dollars (sell) United States dollars (buy) 106,544 114,412 5,714 2,328 Interest rate swaps (floating to fixed) — 456,810 — 7,746 (29,240 ) 38,034 (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 7. Derivative financial instruments (Continued) hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenue and 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, that are 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, 2015 As of December 31, 2016 As of December 31, 2015 As of December 31, 2016 Assets Prepaid expenses and other current assets $ 17,400 $ 33,921 $ 884 $ 809 Other assets $ 12,096 $ 20,657 $ — $ — Liabilities Accrued expenses and other current liabilities $ 34,576 $ 4,540 $ 34 $ 237 Other liabilities $ 25,010 $ 12,576 $ — $ — Cash flow hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred. In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Year ended December 31, 2014 2015 2016 Before- tax Amount Tax (Expense) or Benefit Net of tax Amount Before- tax Amount Tax (Expense) or Benefit Net of tax Amount Before- tax Amount Tax (Expense) or Benefit Net of tax Amount Opening balance as of January 1 $ (205,952 ) $ 72,612 $ (133,340 ) $ (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 (49,161 ) 17,498 (31,663 ) (42,106 ) 15,346 (26,760 ) (6,799 ) 409 (6,390 ) Changes in fair value of effective portion of outstanding derivatives, net 90,005 (31,468 ) 58,537 (5,410 ) 1,530 (3,880 ) 60,752 (23,400 ) 37,352 Gain (loss) on cash flow hedging derivatives, net 139,166 (48,966 ) 90,200 36,696 (13,816 ) 22,880 67,551 (23,809 ) 43,742 Closing balance as of December 31 $ (66,786 ) $ 23,646 $ (43,140 ) $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) Location of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) Year ended December 31, Year ended December 31, 2014 2015 2016 2014 2015 2016 Forward foreign exchange contracts $ 90,005 $ (5,410 ) $ 54,664 Revenue $ (4,301 ) $ 13,667 $ 12,859 Interest rate swaps — — 6,088 Cost of revenue (35,539 ) (44,634 ) (14,223 ) Selling, general and administrative expenses (9,321 ) (11,139 ) (3,765 ) Interest Expense — — (1,670 ) $ 90,005 $ (5,410 ) $ 60,752 $ (49,161 ) $ (42,106 ) $ (6,799 ) Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 as of December 31, 2014, 2015 and 2016. Non-designated Hedges Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives Amount of Gain (Loss) recognized in Statement of Income on Derivatives Year ended December 31, 2014 2015 2016 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 287 $ 6,566 $ 2,921 $ 287 $ 6,566 $ 2,921 (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 | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
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, 2015 2016 Advance income and non-income taxes $ 52,953 $ 50,676 Deferred transition costs 36,620 45,252 Derivative instruments 18,284 34,730 Prepaid expenses 12,565 22,222 Customer acquisition cost 6,687 11,126 Employee advances 3,878 6,880 Deposits 1,820 2,688 Advances to suppliers 8,028 10,059 Others 13,190 5,516 $ 154,025 $ 189,149 |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | 9. Property, plant and equipment, net Property, plant and equipment, net consist of the following: As of December 31, 2015 2016 Land $ 9,873 $ 9,635 Buildings 47,718 44,487 Furniture and fixtures 33,356 37,421 Computer equipment and servers 172,086 187,119 Plant, machinery and equipment 79,599 84,677 Computer software 110,153 119,648 Leasehold improvements 86,997 92,313 Vehicles 6,009 6,753 Capital work in progress 10,727 25,398 Property, plant and equipment, gross $ 556,518 $ 607,451 Less: Accumulated depreciation and amortization (381,122 ) (407,336 ) Property, plant and equipment, net $ 175,396 $ 200,115 Depreciation expense on property, plant and equipment for the years ended December 31, 2014, 2015 and 2016 was $44,029, $47,673 and $45,826, respectively. Software amortization for the years ended December 31, 2014, 2015 and 2016 amounted to $9,105, $9,114 and $9,471, 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 $2,070, $2,501 and $744 for the years ended December 31, 2014, 2015 and 2016, respectively. Property, plant and equipment, net include assets held under capital lease arrangements amounting to $2,797 and $3,183 as of December 31, 2015 and December 31, 2016, respectively. Depreciation expense in respect of these assets was $1,786, $1,594 and $1,564 for the years ended December 31, 2014, 2015 and 2016, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | 10. Goodwill and intangible assets The following table presents the changes in goodwill for the years ended December 31, 2015 and 2016: As of December 31, 2015 2016 Opening balance $ 1,057,214 $ 1,038,346 Goodwill relating to acquisitions consummated during the period 7,674 51,535 Goodwill relating to divestitures during the period — (2,226 ) Impact of measurement period adjustments (135 ) (59 ) Effect of exchange rate fluctuations (26,407 ) (18,188 ) Closing balance $ 1,038,346 $ 1,069,408 Goodwill has been allocated to the following reporting units, which represent different business units of the Company, as follows: As of December 31, 2015 2016 India $ 461,383 $ 493,084 China 59,250 58,139 Europe 38,242 36,584 Americas 46,583 48,713 IT services 432,888 432,888 $ 1,038,346 $ 1,069,408 In the year ended December 31, 2016, in accordance with ASU 2011-08, the Company performed an assessment of qualitative factors to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on such assessment, as at December 31, 2016, the Company concluded that it is not more likely than not that the fair values of all of the Company’s reporting units are less than their carrying amounts other than its IT services reporting unit primarily due to decline in planned revenues. Accordingly, the Company performed quantitative assessment of goodwill impairment for its IT services reporting unit. Based on such quantitative assessment, the Company concluded that no impairment is warranted for the year ended December 31, 2016 and that the fair value of its IT services reporting unit substantially exceeded its carrying value as of December 31, 2016. In the year ended December 31, 2015, in accordance with ASU 2011-08, the Company performed an assessment of qualitative factors to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on its assessment, the Company concluded that it is not more likely than not that the fair value of any of the Company’s reporting units is less than its carrying amount. The total amount of the Company’s goodwill deductible for tax purposes is $36,390 and $39,032 as of December 31, 2015 and 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 December 31, 2016 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 319,035 $ 247,463 $ 71,572 $ 310,277 $ 259,460 $ 50,817 Marketing-related intangible assets 42,749 27,021 15,728 42,587 29,277 13,310 Other intangible assets 29,729 18,427 11,301 33,266 25,344 7,922 $ 391,513 $ 292,911 $ 98,601 $ 386,130 $ 314,081 $ 72,049 10. Goodwill and intangible assets (Continued) Amortization expenses for intangible assets disclosed in the consolidated statements of income under amortization of acquired intangible assets for the years ended December 31, 2014, 2015 and 2016 were $28,543, $28,513 and $27,183, respectively. During the year ended 2016, the Company tested for recoverability an intangible software asset as a result of a downward revision to the forecasted cash flows with respect to the use of the asset and a customer-related intangible asset as a result of the termination of a client contract. Based on the results of such testing, the Company determined that the carrying values of the intangible assets exceed their estimated undiscounted cash flows by $11,195 and recorded a charge to reduce the carrying values by this amount. The Company used a combination of the income and cost approaches to determine the fair values of these intangible assets for the purpose of calculating the resulting charge. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income. During the year ended December 31, 2015, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset. Based on the results of such testing, the Company determined that the carrying value of the intangible asset exceeded its fair value by $10,714 and recorded a charge to reduce the carrying value by this amount. The Company used the discounted cash flow, or income, approach to determine the fair value of the intangible asset for the purpose of calculating the resulting charge. This charge had been recorded in other operating (income) expenses, net in the consolidated statement of income. The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: For the year ending December 31: 2017 $ 24,397 2018 18,194 2019 13,084 2020 9,289 2021 and beyond 7,085 $ 72,049 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other assets | 11. Other assets Other assets consist of the following: As of December 31, 2015 2016 Customer acquisition cost $ 13,458 $ 30,996 Advance income and non-income taxes 50,123 60,203 Deferred transition costs 56,759 74,462 Deposits 24,107 29,853 Derivative instruments 12,096 20,657 Prepaid expenses 4,435 3,179 Accounts receivable due after one year 8,348 3,272 Others 10,679 19,706 $ 180,005 $ 242,328 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases | 12. Leases The Company has leased vehicles, furniture and fixtures, computer equipment and servers, and plants, machinery and equipment from various lessors under capital lease arrangements which are not material to the consolidated financial statements. The Company conducts its operations using facilities under non-cancellable operating lease agreements that expire at various dates. Future minimum lease payments under these agreements are as follows: As of December 31: 2017 $ 52,612 2018 48,897 2019 43,886 2020 39,305 2021 35,354 2022 and beyond 115,921 Total minimum lease payments $ 335,975 Rental expenses in agreements with rent holidays and scheduled rent increases are recorded on a straight-line basis over the applicable lease term. Rent expenses under cancellable and non-cancellable operating leases were $57,178, $50,342 and $50,827 for the years ended December 31, 2014, 2015 and 2016, respectively. The rental expenses set out above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts amounting to $1,823, $2,037 and $598 for the years ended December 31, 2014, 2015 and 2016, respectively. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
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, 2015 2016 Accrued expenses $ 161,672 $ 163,400 Accrued employee cost 158,054 179,360 Deferred transition revenue 44,974 50,552 Statutory liabilities 32,149 36,878 Retirement benefits 17,930 17,616 Derivative instruments 34,610 4,777 Advance from customers 19,815 21,969 Earn-out consideration 16,896 6,885 Other liabilities 12,210 15,461 Capital lease obligations 1,328 1,349 $ 499,638 $ 498,247 |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term debt | 14. Long-term debt 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 a margin of 1.50% per annum or a base rate plus a margin of 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. For the year ended 2016, the Company was in compliance with the financial covenants. As of December 31, 2015 and December 31, 2016, the amount outstanding under the Company’s term loan, net of debt amortization expense of $3,534 and $2,667, was $776,466 and $737,333, respectively. As of December 31, 2015, the term loan bore interest at a rate equal to LIBOR (subject to a floor of 0.75%) plus a margin of 1.50% per annum. As of December 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 December 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 2017 $ 39,181 2018 39,226 2019 39,272 2020 619,654 Total $ 737,333 |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | 15. Short-term borrowings The Company has the following borrowing facilities: (a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2015 and December 31, 2016, the limits available were $15,781 and $15,382, respectively, of which $10,301 and $10,980 was utilized, constituting non-funded drawdown. 15. Short-term borrowings (Continued) (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 14. 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 December 31, 2016, a total of $22,947 and $160,978 respectively, was utilized, of which $21,500 and $160,000, respectively, constituted funded drawdown and $1,447 and $978, 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% as of December 31, 2015. As of December 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% and 0.25% as of December 31, 2015 and December 31, 2016, respectively. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the year ended December 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 in the amount of $672,500 and $737,500, respectively, from Morgan Stanley Senior Funding, Inc. in connection with certain internal reorganization transactions. These loans bore interest at a rate of 2.00% per annum and were fully repaid on January 30, 2015 and March 26, 2015, respectively. The Company recorded $1,045 in debt issuance expenses and $235 in interest with respect to the amounts borrowed under the short-term loans. |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 16. Other liabilities Other liabilities consist of the following: As of December 31, 2015 2016 Accrued employee cost $ 6,901 $ 3,976 Deferred transition revenue 66,737 72,560 Retirement benefits 29,689 39,020 Derivative instruments 25,010 12,576 Amount received from GE under indemnification arrangement, pending adjustment 3,549 3,159 Advance from customers 4,485 2,371 Earn-out consideration 5,924 15,550 Others 10,729 11,078 Capital lease obligations 2,204 2,500 $ 155,228 $ 162,790 |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plans | 17. Employee benefit plans The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees. Defined benefit plans In accordance with Indian law, the Company provides a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. The Gratuity Plan provides a lump-sum payment to vested employees upon retirement or termination of employment in an amount based on each employee’s salary and duration of employment with the Company. The Gratuity Plan benefit cost for the year is calculated on an actuarial basis. The Company contributes the required funding for all ascertained liabilities to the Gratuity Plan. Trustees administer contributions made to the trust, and contributions are invested in specific designated instruments as permitted by Indian law. The Company’s overall investment strategy is to invest predominantly in fixed income funds managed by asset management companies. These funds further invest in debt securities such as money market instruments, government securities and public and private bonds. During the years ended December 31, 2014, 2015 and 2016, all of the plan assets were primarily invested in debt securities. In addition, in accordance with Mexican law, the Company provides certain termination benefits (the “Mexican Plan”) to all of its Mexican employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Mexican Plan is calculated on an actuarial basis. In addition, certain of the Company’s subsidiaries organized or operating in the Philippines and Japan have sponsored defined benefit retirement programs (respectively, the “Philippines Plan” and the “Japan Plan”). The full-year benefit costs of the Japan Plan and the Philippines Plan are calculated on an actuarial basis. Company contributions in respect of these plans are made to insurer-managed funds or to a trust. The trust contributions are further invested in government bonds. In addition, in accordance with Israeli law, the Company provides certain termination benefits (the “Israeli Plan”) to all of its Israeli employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Israeli Plan is calculated on an actuarial basis. Current service costs for defined benefit plans are accrued in the year to which they relate on a monthly basis. Actuarial gains or losses, or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees or over the average remaining life expectancies for inactive employees if most of the plan obligations are payable to inactive employees. 17. Employee benefit plans (Continued) The following table sets forth the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of December 31, 2015 and 2016. As of December 31, 2015 2016 Change in benefit obligation Projected benefit obligation at the beginning of the year $ 36,445 $ 35,617 Service cost 5,578 5,661 Actuarial loss (gain) (3,459 ) 6,749 Interest cost 2,629 2,585 Liabilities assumed on acquisition — 693 Benefits paid (3,846 ) (4,967 ) Effect of exchange rate changes (1,730 ) (1,055 ) Projected benefit obligation at the end of the year $ 35,617 $ 45,283 Change in fair value of plan assets Fair value of plan assets at the beginning of the year $ 29,721 $ 28,549 Employer contributions 1,283 5,776 Actual gain on plan assets 2,465 1,777 Assets assumed on acquisition — 170 Acturial gain/(loss) — — Benefits paid (3,763 ) (4,897 ) Effect of exchange rate changes (1,157 ) (504 ) Fair value of plan assets at the end of the year $ 28,549 $ 30,871 Amounts included in other comprehensive income (loss) as of December 31, 2015 and 2016 were as follows: As of December 31, 2015 2016 Net actuarial loss (3,051 ) (8,979 ) Deferred tax assets 874 2,759 Other comprehensive income (loss), net (2,177 ) (6,220 ) Changes in other comprehensive income (loss) during the year ended December 31, 2016 were as follows: 2016 Net actuarial loss $ (7,141 ) Amortization of net actuarial loss (75 ) Deferred income taxes 1,885 Effect of exchange rate changes 1,289 Other comprehensive income (loss), net $ (4,042 ) 17. Employee benefit plans (Continued) Net defined benefit plan costs for the years ended December 31, 2014, 2015 and 2016 include the following components: Year ended December 31, 2014 2015 2016 Service costs $ 4,721 $ 5,578 $ 5,661 Interest costs 2,410 2,629 2,585 Amortization of actuarial loss 419 330 (113 ) Expected return on plan assets (1,719 ) (2,154 ) (2,043 ) Net defined benefit plan costs $ 5,831 $ 6,383 $ 6,090 The amount in other comprehensive loss that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $758. The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2015 and 2016 are presented below: As of December 31, 2015 2016 Discount rate 8.30% - 8.45% 7.10% - 7.5% Rate of increase in compensation per annum 5.20%-11.00% 5.20%-11.00% The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2014, 2015 and 2016 are presented below: Year ended December 31, 2014 2015 2016 Discount rate 9.50% - 9.55% 8.50% - 8.55% 8.30% - 8.45% Rate of increase in compensation per annum 5.20% - 11.00% 5.20% - 11.00% 5.20% - 11.00% Expected long-term rate of return on plan assets per annum 8.50% 8.50% 7.50% The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2015 and 2016 are presented below: Year ended December 31, 2015 2016 Discount rate 6.50 % 6.80 % Rate of increase in compensation per annum 5.50 % 5.50 % The weighted average assumptions used to determine the costs of the Mexican Plan for the years ended December 31, 2014, 2015 and 2016 are presented below: Year ended December 31, 2014 2015 2016 Discount rate 6.50 % 6.50 % 6.50 % Rate of increase in compensation per annum 5.50 % 5.50 % 5.50 % Expected long-term rate of return on plan assets per annum 0.00 % 0.00 % 0.00 % 17. Employee benefit plans (Continued) The weighted average assumptions used to determine the benefit obligation of the Japan Plan as of December 31, 2015 and 2016 are presented below: Year ended December 31, 2015 2016 Discount rate 0.24% - 1.30% 0.08% - 1.30% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% The weighted average assumptions used to determine the costs of the Japan Plan for the years ended December 31, 2014, 2015 and 2016 are presented below: Year ended December 31, 2014 2015 2016 Discount rate 0.50% - 1.44% 0.20% - 1.30% 0.24% - 1.30% Rate of increase in compensation per annum 0.00% 0.00% - 3.55% 0.00% - 3.55% Expected long-term rate of return on plan assets per annum 2.69% 2.69% - 3.44% 0.00% - 3.77% The expected returns on plan assets set forth above are based on the Company’s expectation of the average long-term rate of return expected to prevail over the next 15 to 20 years on the types of investments prescribed by applicable statute. The Company evaluates these assumptions based on projections of the Company’s long-term growth and prevalent industry standards. Unrecognized actuarial loss is amortized over the average remaining service period of the active employees expected to receive benefits under the plan. The fair values of the Company’s plan assets as of December 31, 2015 and 2016 by asset category are as follows: As of December 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Cash $ 4,809 $ 4,809 $ - $ - Fixed income securities (Note a) 23,659 3,001 20,658 - Other securities (Note b) 2,403 2,191 212 - Total $ 30,871 $ 10,001 $ 20,870 $ - 17. Employee benefit plans (Continued) As of December 31, 2015 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Cash $ 2,460 $ 2,460 $ — $ — Fixed income securities (Note a) 23,190 3,520 19,670 — Other securities (Note b) 2,899 1,234 1,665 — Total $ 28,549 $ 7,214 $ 21,335 $ — (a) Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. (b) Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. The expected benefit plan payments set forth below reflect expected future service: Year ending December 31, 2017 $ 6,577 2018 $ 6,654 2019 $ 7,013 2020 $ 7,819 2021 $ 8,268 2022 - 2026 $ 38,886 $ 75,217 The Company’s expected benefit plan payments are based on the same assumptions that were used to measure the Company’s benefit obligations as of December 31, 2016. Defined contribution plans During the years ended December 31, 2014, 2015 and 2016, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Year ended December 31, 2014 2015 2016 India $ 15,272 $ 15,915 $ 19,074 U.S. 5,565 8,148 10,379 U.K. 3,361 4,453 6,593 China 14,518 14,511 15,512 Other regions 4,355 4,690 4,684 Total $ 43,071 $ 47,717 $ 56,242 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | 18. Stock-based compensation The Company has issued options under the Genpact Global Holdings 2005 Plan (the “2005 Plan”), the Genpact Global Holdings 2006 Plan (the “2006 Plan”), the Genpact Global Holdings 2007 Plan (the “2007 Plan”) and the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) to eligible persons, including employees, directors and certain other persons associated with the Company. 18. Stock-based compensation (Continued) 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 the result of a one-time adjustment to outstanding unvested share awards in connection with a special dividend payment. A brief summary of each plan is provided below: 2005 Plan Under the 2005 Plan, which was adopted on July 26, 2005, the Company is authorized to issue up to 12,706,665 options to eligible persons. 2006 Plan Under the 2006 Plan, which was adopted on February 27, 2006, the Company is authorized to issue up to 4,942,369 options to eligible persons. 2007 Plan Under the 2007 Plan, which was adopted on March 27, 2007, the Company is authorized to issue up to 16,733,250 options to eligible persons. 2007 Omnibus Plan The Company adopted the 2007 Omnibus Plan on July 13, 2007 and amended and restated it on April 11, 2012. The 2007 Omnibus Plan provides for the grant of awards intended to qualify as incentive stock options, non-qualified stock options, share appreciation rights, restricted share awards, restricted share units, performance units, cash incentive awards and other equity-based or equity-related awards. Under the 2007 Omnibus Plan, the Company is authorized to grant awards for the issuance of up to a total of 23,858,823 common shares. Stock-based compensation costs relating to the foregoing plans during the years ended December 31, 2014, 2015 and 2016, were $27,773, $24,684 and $24,686, respectively, and have been allocated to cost of revenue and selling, general, and administrative expenses. Tax benefits recognized in relation to stock-based compensation charges, excluding excess benefits, during the years ended December 31, 2014, 2015 and 2016 were $6,366, $6,125 and $ 6,446, respectively. 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 at the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model. 18. Stock-based compensation (Continued) The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in 2014, 2015 and 2016: 2014 2015 2016 Dividend yield — — — Expected life (in months) 84 84 84 Risk-free rate of interest for expected life 2.18% - 2.29% 1.99% 1.42%-1.56% Volatility 37.27% - 38.34% 34.97% 25.60%-27.22% Volatility was calculated based on the historical volatility of the Company during a period equivalent to the estimated term of the option. The Company estimates the expected term of an option using the “simplified method,” which is based on the average of its contractual vesting term. The risk-free interest rate that the Company uses in the option valuation model is based on U.S. Treasury bonds with a term similar to the expected term of the options. The Company has not paid any regular cash dividends in the last two fiscal years. The Company has issued, and intends to continue to issue, new common shares upon stock option exercises and the vesting of share awards under its equity-based incentive compensation plans. A summary of stock option activity during the years ended December 31, 2014, 2015 and 2016 is set out below: Year ended December 31, 2014 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2014 11,102,163 $ 12.40 5.2 $ — Granted 520,000 17.54 — — Forfeited (250,673 ) 19.20 — — Expired (27,228 ) 12.32 — — Exercised (Note b) (3,972,535 ) 7.00 — 47,399 Outstanding as of December 31, 2014 7,371,727 $ 15.44 5.9 $ 27,886 Vested as of December 31, 2014 and expected to vest thereafter (Note a) 7,073,004 $ 15.19 5.9 $ 27,755 Vested and exercisable as of December 31, 2014 3,542,821 $ 11.37 3.1 $ 26,781 Weighted average grant-date fair value of options granted during the period $ 7.54 18. Stock-based compensation (Continued) Year ended December 31, 2015 Shares arising out of options Weighted average exercise Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2015 7,371,727 $ 15.44 5.9 $ — Granted 170,000 22.77 — — Forfeited (125,000 ) 19.35 — — Expired (1,277 ) 14.32 — — Exercised (1,428,605 ) 9.49 — 22,122 Outstanding as of December 31, 2015 5,986,845 $ 16.99 5.8 $ 48,661 Vested as of December 31, 2015 and expected to vest thereafter (Note a) 5,754,969 $ 16.76 5.8 $ 47,325 Vested and exercisable as of December 31, 2015 2,183,846 $ 12.67 2.7 $ 26,892 Weighted average grant-date fair value of options granted during the period $ 9.15 Year ended December 31, 2016 Shares arising out of options Weighted average exercise Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2016 5,986,845 $ 16.99 5.8 $ — Granted 860,000 26.80 — — Forfeited (145,000 ) 17.77 — — Expired — — — — Exercised (994,155 ) 14.98 — 9,301 Outstanding as of December 31, 2016 5,707,690 $ 18.65 5.8 $ 34,641 Vested as of December 31, 2016 and expected to vest thereafter (Note a) 5,457,701 $ 18.42 5.8 $ 34,150 Vested and exercisable as of December 31, 2016 2,746,191 $ 15.62 4.0 $ 23,960 Weighted average grant-date fair value of options granted during the period $ 8.50 (a) Options expected to vest reflect an estimated forfeiture rate. (b) 2,138,601 of these options were net settled upon exercise by issuing 1,485,826 shares (net of minimum statutory withholding taxes). Cash received by the Company upon the exercise of stock options amounted to $16,051, $13,564 and $14,896. Cash tax benefits realized by the Company upon the exercise of stock options during the years ended December 31, 2014 and 2015 and cash tax benefits received by the Company upon the exercise of stock options during the year ended December 31, 2016 were $761, $6,982 and $1,548 (including excess tax benefits of $0, $6,560, $1,004), respectively. As of December 31, 2016, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $12,683, which will be recognized over the weighted average remaining requisite vesting period of 2.5 years. 18. Stock-based compensation (Continued) Restricted Share Units The Company has granted restricted share units, or RSUs, under the 2007 Omnibus Plan. Each RSU represents the right to receive one common share. The fair value of each RSU is the market price of one common share of the Company on the date of grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSUs granted during the years ended December 31, 2014, 2015 and 2016 is set out below: Year ended December 31, 2014 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2014 871,772 $ 13.96 Granted 227,248 16.58 Vested (Note b) (511,513 ) 13.83 Forfeited (99,089 ) 13.77 Outstanding as of Dec 31, 2014 488,418 $ 15.36 Expected to vest (Note a) 451,721 Year ended December 31, 2015 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2015 488,418 $ 15.36 Granted 53,546 20.88 Vested (Note c) (351,338 ) 15.29 Forfeited (33,236 ) 14.00 Outstanding as of December 31, 2015 157,390 $ 17.67 Expected to vest (Note a) 147,226 Year ended December 31, 2016 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2016 157,390 $ 17.67 Granted 95,553 25.49 Vested (Note d) (133,903 ) 20.66 Forfeited (1,135 ) 14.18 Outstanding as of December 31, 2016 117,905 $ 20.65 Expected to vest (Note a) 107,366 (a) RSUs expected to vest reflect an estimated forfeiture rate. (b) 418,821 of these RSUs were net settled upon vesting by issuing 285,706 shares (net of minimum statutory withholding taxes). 92,692 RSUs vested in the year ended December 31, 2014, 91,963 shares in respect of which were issued in 2016 after withholding shares to the extent of minimum statutory withholding taxes. (c) Vested RSUs were net settled by issuing 199,949 shares (net of minimum statutory tax withholding). 53,546 RSUs vested in the year ended December 31, 2015, shares in respect of which will be issuable in 2017 after withholding shares to the extent of minimum statutory withholding taxes. (d) Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016, shares in respect of which will be issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. 18. Stock-based compensation (Continued) 61,057 RSUs vested in the year ended December 31, 2013, in respect of which 59,827 shares were issued in January 2015 after withholding shares to the extent of minimum statutory withholding taxes. 48,819 RSUs vested in the year ended December 31, 2012. 2,059 common shares underlying 4,533 of such RSUS were issued in April 2013 after withholding shares to the extent of applicable minimum statutory withholding taxes. Shares underlying the remaining 44,286 of such RSUs were issued in January 2014 after withholding 681 shares to the extent of the minimum applicable statutory withholding taxes. As of December 31, 2016, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $1,520, which will be recognized over the weighted average remaining requisite vesting period of 2.6 years. Performance Units The Company also grants stock awards in the form of Performance Units, or PUs, under the 2007 Omnibus Plan. Each PU represents the right to receive one common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. During the performance period, the Company’s estimate of the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the years ended December 31, 2014, 2015 and 2016 is set out below: Year ended December 31, 2014 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2014 3,913,733 $ 16.44 6,149,018 Granted 1,337,750 16.78 2,729,125 Vested (Note b) (1,469,200 ) 14.50 (1,469,183 ) Forfeited (Note d) (2,629,463 ) 17.30 (2,664,980 ) Adjustment due to achievement of higher-than-target performance (Note c) 139,930 12.04 Adjustment due to achievement of lower-than-maximum performance (Note e) (2,095,354 ) Outstanding as of December 31, 2014 1,292,750 $ 16.78 2,648,626 Expected to vest (Note a) 1,153,277 18. Stock-based compensation (Continued) Year ended December 31, 2015 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2015 1,292,750 $ 16.78 2,648,626 Granted 1,375,650 22.72 2,965,475 Vested (Note f) (855 ) 16.78 (855 ) Forfeited (136,216 ) 17.82 (156,194 ) Adjustment due to achievement of lower-than-target performance (Note g) (32,007 ) 20.45 Adjustment due to achievement of lower-than-maximum performance (Note h) (2,957,730 ) Outstanding as of December 31, 2015 2,499,322 $ 19.95 2,499,322 Expected to vest (Note a) 2,184,906 Year ended December 31, 2016 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2016 2,499,322 $ 19.95 2,499,322 Granted 1,518,374 27.93 3,343,335 Vested — — — Forfeited (252,842 ) 21.88 (325,817 ) Adjustment upon final determination of level of performance goal achievement 7,274 22.72 Adjustment upon final determination of level of performance goal achievement (Note i) 7,274 Outstanding as of December 31, 2016 3,772,128 $ 23.04 5,524,114 Expected to vest (Note a) 2,226,489 (a) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (b) Vested PUs as of December 31, 2014 include 775,904 shares issued in 2014 with respect to grants made in 2011 after withholding shares to the extent of the minimum statutory withholding taxes. (c) Represents 139,930 additional shares issued in 2014 (included in note (b) above) for PUs granted in 2011. (d) Includes 251,427 shares underlying PUs granted in May 2011, 1,244,507 shares underlying PUs granted in March 2013 and 630,000 shares underlying PUs granted in May 2013, all of which were forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. 18. Stock-based compensation (Continued) (e) Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest with respect to PUs granted in March 2011 and June 2011, respectively, as a result of the compensation committee’s certification of the level of achievement of the performance conditions based on the Company’s audited financial statements. Also includes a reduction of 616,568 shares for grants made in March 2013, 985,500 shares for grants made in May 2013 and 121,000 shares for grants made in May 2011, due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. (f) Vested PUs were net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). (g) Represents a 5.2% to 6.7% reduction, depending on the targets under the PU award granted, in the number of target shares as a result of achievement of lower-than-target performance for the PUs granted in 2015, partially offset by a 0.8% to 6.6% increase in the number of target shares as a result of achievement of higher-than-target performance for the PUs granted in 2014. (h) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2015 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2014 based on the certified level of achievement of the performance goals. (i) Represents an adjustment made in March 2016 to the number of shares underlying the PUs granted in 2015 upon certification of the level of achievement of the performance targets for such awards. 231,029 shares vested in the year ended December 31, 2012 in respect of PUs granted in August 2010. 138,035 shares (net of minimum statutory tax withholding) in respect of such PUs were issued in January 2014. Outstanding PUs as of December 31, 2016 include 1,452,424 awards granted in 2016, the performance conditions of which are not expected to be fulfilled. The non-fulfillment of the performance conditions of these awards will be certified by the compensation committee following the final determination of the performance goals achieved for the performance period. As of December 31, 2016, the total remaining unrecognized stock-based compensation cost related to PUs amounted to $8,947 which will be recognized over the weighted average remaining requisite vesting period of 1.0 year. Employee Stock Purchase Plan (ESPP) On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the fair value of a Company common share on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. 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 years ended December 31, 2014, 2015 and 2016, 151,461, 121,485 and 146,685 common shares, respectively, were issued under the ESPP. The ESPP is considered compensatory under FASB guidance on Compensation-Stock Compensation. The compensation expense for the employee stock purchase plan is recognized in accordance with FASB guidance on compensation-stock compensation. The compensation expense for the ESPP during the years ended December 31, 2014, 2015 and 2016 was $292, $292 and $428, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital stock
Capital stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capital stock | 19. Capital stock The Company’s authorized capital stock as of December 31, 2015 and 2016 consisted of 500 million common shares with a par value of $0.01 per share, and 250 million preferred shares with a par value of $0.01 per share. There were 211,472,312 and 198,794,052 common shares, and no preferred shares, issued and outstanding as of December 31, 2015 and 2016, respectively. Holders of common shares are entitled to one vote per share. Upon the liquidation, dissolution or winding up of the Company, common shareholders are entitled to receive a ratable share of the available net assets of the Company after payment of all debts and other liabilities. The common shares have no preemptive, subscription, redemption or conversion rights. The Company’s board of directors by resolution can establish one or more series of preferred shares having such par value, designations, dividend rates, relative voting rights, conversion or exchange rights, redemption rights, liquidation rights and other relative participation, optional or other rights, qualifications, limitations or restrictions as may be fixed by the board of directors without shareholder approval. Such rights, preferences, powers and limitations as may be established could also have the effect of discouraging an attempt to obtain control of the Company. These preferred shares are of the type commonly known as “blank-check” preferred shares. Under Bermuda law, the Company may declare and pay dividends from time to time unless there are reasonable grounds for believing that the Company is or would, after the payment, be unable to pay its liabilities as they become due or that the realizable value of its assets would thereby be less than the aggregate of its liabilities, its issued share capital, and its share premium accounts. Under the Company’s bye-laws, each common share is entitled to dividends if, as and when dividends are declared by the Company’s board of directors. There are no restrictions in Bermuda on the Company’s ability to transfer funds (other than funds denominated in Bermuda dollars) in or out of Bermuda or to pay dividends to U.S. residents who are holders of common shares. The Company’s ability to declare and pay cash dividends is restricted by its debt covenants. Share Repurchases In February 2015, the Company’s board of directors (the “Board”) authorized a program to repurchase up to $250,000 in value of the Company’s common shares. On February 4, 2016, the Board approved up to an additional $250,000 in share repurchases under the program, on September 19, 2016 the Board approved up to an additional $250,000 in share repurchases, and on February 10, 2017 the Board approved up to an additional $500,000 in share repurchases, bringing the total authorization under the Company’s existing program to $1,250,000. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the years ended December 31, 2015 and December 31, 2016, the Company purchased 9,867,873 and 13,940,782 of its common shares, respectively, at a weighted average price of $23.00 and $24.76 per share, respectively, for an aggregate cash amount of $226,917 and $345,200, respectively. The purchased shares have been retired. Any purchase by the Company of its common shares is accounted for when the transaction is settled. There were no unsettled share purchases as of December 31, 2015 and December 31, 2016. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares. For the year ended December 31, 2015 and December 31, 2016, $197 and $279, respectively, was deducted from retained earnings in direct costs related to share purchases. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share | 20. Earnings per share The Company calculates earnings per share in accordance with FASB guidance on Earnings per Share. Basic and diluted earnings per common share give effect to the change in the number of common shares outstanding. The calculation of basic earnings per common share was determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding. The potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, common shares to be issued under the ESPP and performance units, have been included in the computation of diluted net earnings per share and number of weighted average shares outstanding, except where the result would be anti-dilutive. The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 3,758,000, 2,821,000 and 781,215 for the years ended December 31, 2014, 2015 and 2016, respectively. Year ended December 31, 2014 2015 2016 Net income available to Genpact Limited common shareholders $ 192,002 $ 239,817 $ 269,684 Weighted average number of common shares used in computing basic earnings per common share 220,847,098 216,606,542 206,861,536 Dilutive effect of stock-based awards 4,321,567 2,538,502 3,264,487 Weighted average number of common shares used in computing dilutive earnings per common share 225,168,665 219,145,044 210,126,023 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.87 $ 1.11 $ 1.30 Diluted $ 0.85 $ 1.09 $ 1.28 |
Cost of revenue
Cost of revenue | 12 Months Ended |
Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | 21. Cost of revenue Cost of revenue consists of the following: Year ended December 31, 2014 2015 2016 Personnel expenses $ 943,105 $ 1,013,209 $ 1,061,501 Operational expenses 390,441 432,535 446,922 Depreciation and amortization 44,542 47,803 46,284 $ 1,378,088 $ 1,493,547 $ 1,554,707 |
Selling, general and administra
Selling, general and administrative expenses | 12 Months Ended |
Dec. 31, 2016 | |
Selling General And Administrative Expenses [Abstract] | |
Selling, general and administrative expenses | 22. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Year ended December 31, 2014 2015 2016 Personnel expenses $ 419,299 $ 430,088 $ 469,956 Operational expenses 157,755 169,042 174,060 Depreciation and amortization 8,592 8,984 9,013 $ 585,646 $ 608,114 $ 653,029 |
Other operating (income) expens
Other operating (income) expense, net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Other operating (income) expense, net | 23. Other operating (income) expense, net Year ended December 31, 2014 2015 2016 Other operating (income) expense $ (3,163 ) $ (2,515 ) $ (1,266 ) Impairment of intangible assets — 10,714 11,195 Change in fair value of earn-out consideration, deferred consideration (relating to business acquisitions) (3,707 ) (11,521 ) (14,869 ) Other operating (income) expense, net $ (6,870 ) $ (3,322 ) $ (4,940 ) |
Interest income (expense), net
Interest income (expense), net | 12 Months Ended |
Dec. 31, 2016 | |
Banking And Thrift Interest [Abstract] | |
Interest income (expense), net | 24. Interest income (expense), net Interest income (expense), net consists of the following: Year ended December 31, 2014 2015 2016 Interest income $ 4,405 $ 8,676 $ 7,247 Interest expense (33,800 ) (29,828 ) (23,431 ) Loss on extinguishment of debt — (10,115 ) — Interest income (expense), net $ (29,395 ) $ (31,267 ) $ (16,184 ) |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 25. Income taxes Income tax expense (benefit) for the years ended December 31, 2014, 2015 and 2016 is allocated as follows: Year ended December 31, 2014 2015 2016 Income from continuing operations $ 57,419 $ 61,937 $ 62,098 Other Comprehensive Income: Unrealized gains (losses) on cash flow hedges 48,966 13,816 23,809 Retirement benefits (413 ) 1,304 (1,885 ) Additional paid-in capital: Excess tax benefit on stock-based compensation — $ (6,560 ) — Retained earnings: Deferred tax assets recognized on early adoption of ASU 2016-09 — — (24,912 ) The components of income before income tax expense from continuing operations are as follows: Year ended December 31, 2014 2015 2016 Domestic (U.S.) $ 19,614 $ 23,122 $ 44,110 Foreign (Non-U.S.) 229,976 278,632 285,535 Income before income taxes $ 249,590 $ 301,754 $ 329,645 25. Income taxes (Continued) Income tax expense (benefit) attributable to income from continuing operations consists of: Year ended December 31, 2014 2015 2016 Current taxes : Domestic (U.S. federal taxes) $ 3,768 $ 12,142 $ 78 Domestic (U.S. state taxes) 666 301 1,069 Foreign (Non-U.S.) 65,237 68,207 30,497 $ 69,671 $ 80,650 $ 31,644 Deferred taxes : Domestic (U.S. federal taxes) $ 2,761 $ (5,396 ) $ 11,379 Domestic (U.S. state taxes) (193 ) 344 (459 ) Foreign (Non-U.S.) (14,820 ) (13,661 ) 19,534 $ (12,252 ) $ (18,713 ) $ 30,454 Total income tax expense (benefit) $ 57,419 $ 61,937 $ 62,098 Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes, as a result of the following: Year ended December 31, 2014 2015 2016 Income before income tax expense $ 249,590 $ 301,754 $ 329,645 Statutory tax rates 35 % 35 % 35 % Computed expected income tax expense 87,356 105,614 115,376 Increase (decrease) in income taxes resulting from: Foreign tax rate differential (4,703 ) (16,550 ) (18,574 ) Tax benefit from tax holiday (35,868 ) (38,039 ) (32,893 ) Non-deductible expenses 3,789 1,884 2,295 Effect of change in tax rates 176 1,436 353 Change in valuation allowance (2,880 ) (33 ) (4,830 ) Unrecognized tax benefits 1,423 6,272 (627 ) Others 8,126 1,353 998 Reported income tax expense (benefit) $ 57,419 $ 61,937 $ 62,098 A portion of the profits of the Company’s operations is exempt from income tax in India. One of the Company’s Indian subsidiaries has fourteen units eligible for a tax holiday as a special economic zone unit in respect of 100% of the export profits it generates for a period of 5 years from commencement, 50% of such profits for the next 5 years (year 6 to year 10 from commencement) and 50% of the profits for an additional period of 5 years (year 11 to year 15 from commencement), subject to the satisfaction of certain capital investment requirements. The tax holidays for the Company’s existing special economic zone units will begin to expire on March 31, 2022 and will have fully expired on March 31, 2029, assuming the Company satisfies the capital investment requirements. The effect of the Indian tax holiday on basic earnings per share was $0.16, $0.18 and $0.19, respectively, for the years ended December 31, 2014, 2015 and 2016. The effect of the tax holiday on diluted earnings per share was $0.16, $0.17 and $0.18, respectively, for the years ended December 31, 2014, 2015 and 2016. 25. Income taxes (Continued) The components of the Company’s deferred tax balances as of December 31, 2015 and 2016 are as follows: As of December 31, 2015 2016 Deferred tax assets Net operating loss carryforwards $ 48,626 $ 52,997 Accrued liabilities and other expenses 16,680 19,840 Provision for doubtful receivables 5,655 6,419 Property, plant and equipment 4,538 3,445 Unrealized losses on cash flow hedges, net 10,296 558 Share-based compensation 14,253 19,054 Retirement benefits 2,772 5,067 Deferred revenue 39,547 44,892 Tax credit carryforwards 52,993 34,509 Others 9,173 8,876 Gross deferred tax assets $ 204,533 $ 195,657 Less: Valuation allowance (20,091 ) (14,746 ) Total deferred tax assets $ 184,442 $ 180,911 Deferred tax liabilities Intangible assets $ 20,987 $ 13,519 Property, plant and equipment 3,406 2,745 Deferred cost 31,953 41,950 Investments in foreign subsidiaries not indefinitely reinvested 23,097 29,546 Unrealized gains on cash flow hedges, net — 14,350 Others 7,697 11,073 Total deferred tax liabilities $ 87,140 $ 113,183 Net deferred tax asset $ 97,302 $ 67,728 As of December 31, Classified as 2015 2016 Deferred tax assets Non-current $ 99,395 $ 70,143 Deferred tax liabilities Non-current $ 2,093 $ 2,415 $ 97,302 $ 67,728 The change in the total valuation allowance for deferred tax assets as of December 31, 2014, 2015 and 2016 is as follows: Year ended December 31, 2014 2015 2016 Opening valuation allowance $ 24,654 $ 21,094 $ 20,091 Reduction during the year (8,662 ) (3,499 ) (7,299 ) Addition during the year 5,102 2,496 1,954 Closing valuation allowance $ 21,094 $ 20,091 $ 14,746 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences are deductible. 25. Income taxes (Continued) Management considers the scheduled reversal of deferred tax liabilities and projected taxable income in making this assessment. In order to fully realize a deferred tax asset, the Company must generate future taxable income prior to the expiration of the deferred tax asset under applicable law. Based on the level of historical taxable income and projections for future taxable income over the periods during which the Company’s deferred tax assets are deductible, management believes that it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances at December 31, 2016. The amount of the Company’s deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry-forward period are reduced. In 2014, the Company determined that it was more likely than not that the deferred tax assets of a foreign subsidiary would be partially realized after considering all positive and negative evidence. Prior to 2014, because of significant negative evidence, including a history of losses, an uncertain revenue stream, and potential reorganization activity that could adversely affect the foreign subsidiary’s future operations and profitability on a continuing basis in future years, the Company determined that it was more likely than not that the subsidiary’s deferred tax assets would not be realized. However, as of December 31, 2014, such subsidiary had realized cumulative pre-tax income for the preceding three years and had forecasted future pre-tax income sufficient to realize a portion of its deferred tax assets. After consideration of the relative impact of all evidence, both negative and positive, and the weight accorded to each, the Company concluded that it was more likely than not that a portion of the subsidiary’s deferred tax assets would be realized and that the applicable valuation allowance should be partially released up to $3,000. 25. Income taxes (Continued) In 2016, one of the Company’s subsidiaries filed amended tax returns with respect to prior years, resulting in revised assessments, higher taxable income and the utilization of operating loss carryforwards. The use of operating loss carryforwards resulted in the complete reversal of the subsidiary’s remaining valuation allowance of $3,377. On January 1, 2016, the Company elected the early adoption of ASU 2016-09, which was applied using a modified retrospective approach. Accordingly, excess tax benefits relating to the exercise of stock options prior to December 31, 2015 amounting to $24,912 were recorded through retained earnings. For the year ended December 31, 2016, the Company has recognized net excess tax benefits of $1,004 in income tax expense attributable to continuing operations. The Company recorded excess tax benefits of $0, $6,560, and $0 through additional paid-in capital during the years ended December 31, 2014, 2015 and 2016, respectively. As of December 31, 2016, the Company’s deferred tax assets related to net operating loss carryforwards amounted to $52,997. Net operating losses of subsidiaries in the United Kingdom, Hungary, Singapore, Malaysia, China, Australia, Brazil, Spain, Israel and Luxembourg amounted to $143,029 and can be carried forward for an indefinite period. The Company’s remaining tax loss carryforwards expire as set forth in the table below: US - Europe Others Year ending December 31, 2017 $ — $ 3 $ — 2018 — 5 19 2019 — 5 67 2020 — 234 697 2021 — 2,335 2,790 2022 — 1,829 57 2023 — 4,576 1,133 2024 — 5,820 8,577 2025 — 3,485 2,379 2026 — 348 2,329 2027 — — — 2028 — 31 — 2029 — - — 2030 — 196 — 2031 14,607 188 — 2032 21 65 — 2033 4,538 83 — 2034 37 — — 2035 30 — — 2036 — — — 2037 — — 1,097 $ 19,233 $ 19,203 $ 19,145 As of December 31, 2016, the Company had additional deferred tax assets on U.S. state and local tax loss carryforwards amounting to $6,295 with varying expiration periods between 2017 and 2035. As of December 31, 2016, the company had a total foreign tax credit of $31,490, which will expire as set forth in the table below: 25. Income taxes (Continued) Year ending December 31, Amount 2022 $ 893 2023 1,202 2024 15,552 2025 8,481 2026 5,362 $ 31,490 Undistributed earnings of the Company’s foreign (non-Bermuda) subsidiaries amounted to $795,398 as of December 31, 2016. The Company plans to indefinitely reinvest such undistributed earnings, except for those earnings for which a deferred tax liability has already been accrued or which can be repatriated in a tax-free manner. Accordingly, with limited exceptions, the Company does not accrue any income, distribution or withholding taxes that would arise if such earnings were repatriated. Due to the Company’s changing corporate structure, the various methods that are available to repatriate earnings, and uncertainty relative to the applicable taxes at the time of repatriation, it is not practicable to determine the amount of tax that would be imposed upon repatriation. If undistributed earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the company will accrue the applicable amount of taxes associated with such earnings at that time. As of December 31, 2016, $412,533 of the Company’s $422,623 in cash and cash equivalents was held by the Company’s foreign (non-Bermuda) subsidiaries. $148,158 of this cash is held by foreign subsidiaries for which the Company expects to incur and has accrued a deferred tax liability on the repatriation of $35,902 of retained earnings. $92,254 of the Company’s cash and cash equivalents is held by foreign subsidiaries in jurisdictions where no tax is expected to be imposed upon repatriation. The remaining $172,121 in cash and cash equivalents held by certain foreign subsidiaries of the Company is being permanently reinvested. The following table summarizes activities related to our unrecognized tax benefits from January 1 to December 31 for each of 2014, 2015 and 2016: Year Ended December 31, 2014 2015 2016 Opening Balance at January 1 $ 21,832 $ 22,718 $ 26,357 Increase related to prior year tax positions, including recorded in acquisition accounting 2,472 2,000 370 Decrease related to prior year tax positions (1,002 ) — (1,506 ) Decrease related to divestiture of business — — (345 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (753 ) (820 ) (2,122 ) Increase related to current year tax positions, including recorded in acquisition accounting 442 3,544 3,225 Decrease related to settlements with tax authorities — — (2,000 ) Effect of exchange rate changes (273 ) (1,085 ) (512 ) Closing Balance at December 31 $ 22,718 $ 26,357 $ 23,467 As of December 31, 2014, 2015 and 2016, the Company had unrecognized tax benefits amounting to $21,268, $24,935 and $22,469, respectively, which, if recognized, would impact the effective tax rate. As of December 31, 2014, 2015 and 2016, the Company had accrued $3,417, $4,223 and $3,856, respectively, in interest relating to unrecognized tax benefits. During the years ended December 31, 2014, 2015 and 2016, the Company recognized $44, $1,152 and $(206), respectively, excluding exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2014, 2015 and 2016 the company had accrued $561, $958 and $977, respectively, for penalties. 25. Income taxes (Continued) In the next twelve months and for all tax years that remain open to examinations by U.S. federal and various state, local, and non-U.S. tax authorities, the Company estimates that it is reasonably possible that the total amount of its unrecognized tax benefits will vary. However, the Company does not expect significant changes within the next twelve months other than depending on the progress of tax matters or examinations with various tax authorities, which are difficult to predict. With exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax audits by taxing authorities for years prior to 2013. The Company’s subsidiaries in India and China are open to examination by relevant taxing authorities for tax years beginning on or after April 1, 2009, and January 1, 2007, respectively. The Company regularly reviews the likelihood of additional tax assessments and adjusts its reserves as additional information or events require. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment reporting | 26. Segment reporting The Company manages various types of business process and information technology services in an integrated manner for clients in various industries and geographic locations. The Company’s Chief Executive Officer, who has been identified as the Chief Operation Decision Maker (CODM), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenue and adjusted operating income by identified business units. The identified business units are organized for operational reasons and represent either services-based, customer-based, industry-based or geography-based units. There is significant overlap between the manner in which the business units are organized. Additionally, the composition and organization of the business units is fluid and the structure changes regularly in response to growth of the overall business, acquisitions and changes in the reporting structure, clients, services, industries served, and delivery centers. Based on an overall evaluation of all facts and circumstances, and after combining operating segments with similar economic characteristics that comply with other aggregation criteria specified in the FASB guidance on segment reporting, the Company has determined that it operates as a single reportable segment. Net revenues by service type are as follows: Year ended December 31, 2014 2015 2016 Business process outsourcing $ 1,736,716 $ 1,933,095 $ 2,083,450 Information technology services 542,722 527,949 487,306 Total net revenues $ 2,279,438 $ 2,461,044 $ 2,570,756 Revenues from clients based on the industry serviced are as follows: Year ended December 31, 2014 2015 2016 Banking, financial services and insurance $ 940,345 $ 1,030,584 $ 1,055,704 Manufacturing, including pharmaceuticals and medical equipment manufacturing 796,872 878,570 958,779 Technology, healthcare and other services 542,221 551,890 556,273 Total net revenues $ 2,279,438 $ 2,461,044 $ 2,570,756 26. Segment reporting (Continued) Net revenues from geographic areas based on the location of the Company’s service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. Year ended December 31, 2014 2015 2016 India $ 1,505,960 $ 1,687,699 $ 1,804,113 Asia, other than India 232,349 238,529 249,839 North and Latin America 302,515 304,879 282,434 Europe 238,614 229,937 234,370 Total net revenues $ 2,279,438 $ 2,461,044 $ 2,570,756 Revenues from GE comprised 20%, 19% and 16% of the Company’s consolidated total net revenues in 2014, 2015 and 2016, respectively. No other customer accounted for 10% or more of the Company’s consolidated total net revenues during these periods. Property, plant and equipment, net by geographic region are as follows: As of December 31, 2015 2016 India $ 112,911 $ 116,417 Asia, other than India 11,700 13,549 North and Latin America 41,561 51,400 Europe 9,224 18,749 Total $ 175,396 $ 200,115 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related party transactions | 27. 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 In the years ended December 31, 2014, 2015, and 2016, the Company recognized net revenues of $285, $326 and $335, respectively, from a client that is also a significant shareholder of the Company. In the years ended December 31, 2014, 2015 and 2016, the Company recognized net revenues of $5,580, $7,826 and $8,077, respectively, from a client that is a non-consolidating affiliate of the Company. $1,955 and $2,411 of such revenue is receivable as of December 31, 2015 and 2016, respectively. Cost of revenue from services The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in cost of revenue. For the years ended December 31, 2014, 2015 and 2016, cost of revenue includes an amount of $2,126, $2,173 and $2,067, respectively, attributable to the cost of such 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 years ended December 31, 2014, 2015 and 2016, selling, general and administrative expenses include an amount of $613, $384 27. Related party transactions (Continued) During the years ended December 31, 2015 and 2016, the Company engaged a significant shareholder of the Company to provide services to the Company at a cost of $421 and $58, respectively. Investment in equity affiliates During the years ended December 31, 2015 and 2016, the Company made investments of $17,013 and $5,884, respectively, in its non-consolidating affiliates. As of December 31, 2015 and 2016, $3,736 and $ 0, respectively, of such amounts were outstanding and have been included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. As of December 31, 2015 and 2016, the Company’s investments in its non-consolidating affiliates amounted to $6,677 and $4,800, respectively. Others During the years ended December 31, 2015 and 2016, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $2,077 and $1,162, respectively, of which $488 is receivable as of December 31, 2016. During the year ended December 31, 2016, the company claimed a portion of an equity affiliate’s net operating losses under consortium relief in the United Kingdom amounting to $3,291, which was outstanding and has been included in other liabilities in the company’s consolidated balance sheet as of December 31, 2016. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 28. Commitments and contingencies Capital commitments As of December 31, 2015 and 2016, the Company has committed to spend $8,237 and $5,185, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of such purchases. Bank guarantees The Company has outstanding bank guarantees amounting to $11,748 and $11,958 as of December 31, 2015 and 2016, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purposes of maintaining a bonded warehouse. These guarantees may be revoked by the government agencies if they suffer any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees. Other commitments The Company’s business process delivery centers in India are 100% export-oriented units or Software Technology Parks of India (“STPI”) units under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. |
Quarterly financial data (unaud
Quarterly financial data (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial data (unaudited) | 29. Quarterly financial data (unaudited) Three months ended Year ended March 31, 2016 June 30, 2016 September 30, 2016 December December 31, 2016 Total net revenues $ 609,703 $ 630,523 $ 648,783 $ 681,747 $ 2,570,756 Gross profit $ 236,855 $ 246,768 $ 256,351 $ 276,075 $ 1,016,049 Income from operations $ 75,622 $ 79,940 $ 87,124 $ 98,092 $ 340,777 Income before equity method investment activity, net and income tax expense $ 72,664 $ 81,818 $ 87,360 $ 95,502 $ 337,343 Net income $ 58,276 $ 64,349 $ 68,045 $ 76,878 $ 267,547 Net income attributable to non-controlling interest/redeemable Non-controlling interest $ 289 $ 882 $ 734 $ 232 $ 2,137 Net income attributable to Genpact Limited common shareholders $ 58,565 $ 65,231 $ 68,779 $ 77,110 $ 269,684 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.28 $ 0.31 $ 0.33 $ 0.38 $ 1.30 Diluted $ 0.27 $ 0.31 $ 0.33 $ 0.38 $ 1.28 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 210,780,165 210,178,050 206,146,007 200,341,922 206,861,536 Diluted 213,892,964 213,803,134 209,376,683 203,431,310 210,126,023 29. Quarterly financial data (unaudited) (Continued) Three months ended Year ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 December 31, 2015 Total net revenues $ 587,153 $ 609,532 $ 617,831 $ 646,528 $ 2,461,044 Gross profit $ 229,677 $ 243,228 $ 242,001 $ 252,591 $ 967,497 Income from operations $ 74,050 $ 89,353 $ 87,343 $ 83,446 $ 334,192 Income before equity method investment activity, net and income tax expense $ 57,938 $ 80,245 $ 89,685 $ 84,686 $ 312,554 Net income $ 44,653 $ 62,701 $ 68,050 $ 64,413 $ 239,817 Net income attributable to non-controlling interest $ — $ — $ — $ — $ — Net income attributable to Genpact Limited common shareholders $ 44,653 $ 62,701 $ 68,050 $ 64,413 $ 239,817 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.20 $ 0.29 $ 0.32 $ 0.30 $ 1.11 Diluted $ 0.20 $ 0.28 $ 0.31 $ 0.30 $ 1.09 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 219,892,695 218,525,149 215,311,322 212,697,001 216,606,542 Diluted 222,347,101 220,962,306 217,595,704 215,675,065 219,145,044 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 30. Subsequent Events Share Repurchase On February 10, 2017, the Company announced that its Board of Directors has approved a $500,000 increase to its existing $750,000 share repurchase program, bringing the total authorization under the Company’s existing program to $1,250,000. Pursuant to its share repurchase program, the Company repurchased 808,293 of its common shares between January 1, 2017 and March 1, 2017, at a weighted average price of $24.48 per share for an aggregate cash amount of $19,783. Dividend On February 10, 2017, the Company announced that its Board of Directors has approved a dividend program under which the Company intends to pay a regular quarterly cash dividend of $0.06 per share to holders of its common shares, representing a planned annual dividend of $0.24 per share. The initial dividend will be paid on or about March 28, 2017 to shareholders of record as of the close of business on March 10, 2017. The declaration of any future dividends is subject to the discretion of the Board of Directors. Acquisition On February 5, 2017, the Company entered into a definitive agreement to acquire the item processing business of Fiserv Solutions of Australia Pty Limited for estimated cash consideration of $32,150, subject to adjustment for working capital, value transfer and net debt. This acquisition will expand the Company’s digital transformation and end-to-end capabilities for its clients in the financial services industry. The acquisition will also strengthen the Company’s rapidly growing financial services portfolio and expand its Australia footprint. |
Summary of significant accoun38
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of preparation and principles of consolidation | (a) Basis of preparation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over 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 redeemable 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. 2. Summary of significant accounting policies (Continued) 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. |
Revenue recognition | (c) Revenue recognition The Company derives its revenue primarily from business process outsourcing and information technology services, which are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been rendered and collectability is reasonably assured. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues on these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. Revenue with respect to fixed-price contracts for the development of software and related services is recognized in accordance with the percentage-of-completion method. Guidance has been drawn from Financial Accounting Standards Board (“FASB”) guidance on Software—Revenue Recognition to account for revenue from fixed-price arrangements for software development and related services in conformity with FASB guidance on Revenue Recognition—Construction—Type and Production-Type Contracts. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of its services. Revenue from multiple-element arrangements is recognized, for each element, based on (1) the attainment of the delivery criterion; (2) its fair value, which is determined using the selling price hierarchy of vendor-specific objective evidence (“VSOE”) of fair value, third-party evidence or best estimated selling price, as applicable, and (3) its allocated selling price, which is based on the relative sales price method. |
Accounts receivable | (d) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial condition, the amount of receivables 2. Summary of significant accounting policies (Continued) in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. |
Cash and cash equivalents | (e) Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. |
Short- term investments | (f) Short-term investments All liquid investments with an original maturity greater than 90 days but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative or trading purposes. |
Property, plant and equipment, net | (g) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Software 4-7 Leasehold improvements Lesser of lease period or 10 years Vehicles 3-4 The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. Capitalized software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. Advances paid towards the acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress.” |
Research and development expense | (h) Research and development expense Development costs incurred for software to be sold, if any, are expensed as incurred as research and development costs until technological feasibility has been established for the product. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. 2. Summary of significant accounting policies (Continued) Thereafter, all software production costs will be capitalized and amortized over their useful lives and reported at the lower of unamortized cost and net realizable value. |
Business combinations | (i) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. In business combinations, where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income. |
Goodwill | Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. |
Other Intangible Assets | Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 3-9 years Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. |
Impairment of long-lived assets | (j) Impairment of long-lived assets Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. |
Foreign currency | (k) Foreign currency The Company’s consolidated financial statements are reported in U.S. dollars, the Company’s functional currency. The functional currency for the Company’s subsidiaries organized in Europe, other than the United Kingdom, the Czech Republic and one subsidiary in Poland, is the euro, and the functional currencies of the 2. Summary of significant accounting policies (Continued) Company’s subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Israel, Japan, Morocco, South Africa, the Philippines, the United Kingdom, Poland, the Czech Republic, Hong Kong, Singapore, Australia, Canada and United Arab Emirates are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the Company’s subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. |
Derivative instruments and hedging activities | (l) Derivative instruments and hedging activities In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates. The Company purchases forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and forecasted transactions denominated in foreign currencies and interest rate swaps to mitigate interest rate fluctuation risk on its indebtedness. The Company recognizes derivative instruments and hedging activities as either assets or liabilities in its consolidated balance sheets and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Changes in the fair values of derivatives designated as cash flow hedges are deferred and recorded as a component of other comprehensive income (loss) reported under accumulated other comprehensive income (loss) until the hedged transactions occur and are then recognized in the consolidated statements of income along with the underlying hedged item and disclosed as part of “Total net revenues,” “Cost of revenue,” “Selling, general and administrative expenses,” and “Interest expense,” as applicable. Changes in the fair value of derivatives not designated as hedging instruments, and the ineffective portion of derivatives designated as cash flow hedges are recognized in the consolidated statements of income and are included in foreign exchange gains (losses), net, and other income (expense), net, respectively. With respect to derivatives designated as hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the inception of the hedge and on a quarterly basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative or portion thereof is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, the Company will prospectively discontinue hedge accounting with respect to that derivative. In all situations in which hedge accounting is discontinued and the derivative is retained, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent change in its fair value in the consolidated statements of income. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately, in foreign exchange gains (losses), net in the consolidated statements of income, the gains and losses attributable to such derivative that were accumulated in other comprehensive income (loss). |
Income taxes | (m) Income taxes The Company accounts for income taxes using the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current 2. Summary of significant accounting policies (Continued) year. In addition, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and all operating loss and tax credit carry forwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period that includes the enactment date or the filing or approval date of the tax status change. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company applies a two-step approach for recognizing and measuring the benefit of tax positions. The first step is to evaluate the tax position for recognition by determining, based on the technical merits, that the position will more likely than not be sustained upon examination. The second step is to measure the tax benefit as the largest amount of the tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company includes interest and penalties related to unrecognized tax benefits within income tax expense. |
Employee benefit plans | (n) Employee benefit plans Contributions to defined contribution plans are charged to consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. |
Stock-based compensation | (o) Stock-based compensation The Company recognizes and measures compensation expense for all stock-based awards based on the grant date fair value. For option awards, grant date fair value is determined under the option-pricing model (Black-Scholes-Merton) and for awards other than option awards, grant date fair value is determined on the basis of the fair market value of a Company common share on the date of grant of such awards. The Company recognizes compensation expense for stock-based awards net of estimated forfeitures. Stock-based compensation recognized in the consolidated statements of income for the years ended December 31, 2014, 2015 and 2016 is based on awards ultimately expected to vest. As a result, the expense has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from such estimates. |
Financial instruments and concentration of credit risk | (p) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, 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 2. Summary of significant accounting policies (Continued) for 18% and 15% of the Company’s receivables as of December 31, 2015 and 2016, respectively. GE accounted for 20%, 19% and 16% of the Company’s revenues in the years ended December 31, 2014, 2015 and 2016, respectively. (p) Financial instruments and concentration of credit risk for 18% and 15% of the Company’s receivables as of December 31, 2015 and 2016, respectively. GE accounted for 20%, 19% and 16% of the Company’s revenues in the years ended December 31, 2014, 2015 and 2016, respectively. |
Earnings (loss) per share | (q) Earnings (loss) per share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. |
Commitments and contingencies | (r) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. |
Recently adopted accounting pronouncements | (s) Recently adopted accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the company’s consolidated financial statements. The following recently released accounting standard has been adopted by the Company: In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the requirement for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in income tax expense or in additional paid-in capital. The Company elected to early adopt ASU 2016-09 on January 1, 2016 which will be applied using a modified retrospective approach. The treatment of forfeitures has not changed as we are electing to continue our current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, we have elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. The following recently released accounting standards have been adopted by the Company and 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. 2. Summary of significant accounting policies (Continued) 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 accoun39
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Economic Useful Lives of Property Plant and Equipment | The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Software 4-7 Leasehold improvements Lesser of lease period or 10 years Vehicles 3-4 |
Estimated Useful Lives of Intangible Assets Acquired | Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 3-9 years |
Business acquisitions (Tables)
Business acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Atyati Technologies Private Limited | |
Summary of Calculation of Gain on Sale of Business | The Company recorded a gain of $5,214 in its consolidated statement of income in connection with the sale of the Business, calculated as follows: Net sale proceeds $ 17,155 Net assets of the business, including intangible assets, allocated goodwill and the translation impact thereof 11,941 Gain on divestiture included in other income (expense), net $ 5,214 |
Japan Finance And Accounting Service Delivery | |
Purchase Consideration for the Acquisition | The purchase consideration for the acquisition is set forth below: Cash consideration after adjustment for pension underfunding and closing net assets value $ 10,539 Fair value of contingent earn-out consideration (ranging from $0 to $15,750) 11,198 Total estimated purchase consideration $ 21,737 |
Pharmalink Consulting Inc | |
Purchase Consideration for the Acquisition | The purchase consideration for the acquisition is set forth below: Cash consideration after adjustment for net debt and working capital $ 126,069 Fair value of contingent earn-out consideration (ranging from $0 to $27,405) $ 12,730 Total estimated purchase consideration $ 138,799 |
Business Acquisition Purchase Price Determination | The following table summarizes the allocation of the estimated purchase price based on the fair value of the assets acquired and the liabilities assumed as of the date of acquisition, including measurement period adjustments: Purchase price $ 138,799 Acquisition-related costs included in selling, general and administrative expenses as incurred 1,977 Recognized amounts of identifiable assets acquired and liabilities assumed Net assets acquired 7,174 Intangible assets 29,923 Deferred tax asset (liability), net (8,419 ) Total identifiable net assets acquired $ 28,678 Goodwill 110,121 Total $ 138,799 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash And Cash Equivalents [Abstract] | |
Cash And Cash Equivalents | As of December 31, 2015 2016 Cash and other bank balances $ 450,907 $ 422,623 Total $ 450,907 $ 422,623 |
Accounts receivable, net of r42
Accounts receivable, net of reserve for doubtful receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Reserve for Doubtful Receivables | The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2014 2015 2016 Opening Balance as of January 1 $ 16,560 $ 15,192 $ 11,530 Additions due to acquisitions 178 — — Additions charged to cost and expense 3107 2,449 7,282 Deductions/effect of exchange rate fluctuations (4,653 ) (6,111 ) (3,293 ) Closing Balance $ 15,192 $ 11,530 $ 15,519 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2015 and 2016: As of December 31, 2015 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Notes a,c) $ 30,380 $ — $ 30,380 $ — Total $ 30,380 $ — $ 30,380 $ — Liabilities Earn-out consideration (Notes b,d) $ 22,820 $ — $ — $ 22,820 Derivative instruments (Notes b,c) $ 59,620 $ — $ 59,620 $ — Total $ 82,440 $ — $ 59,620 $ 22,820 As of December 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices Active Markets Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Notes a,c) $ 55,386 $ — $ 55,386 $ — Total $ 55,386 $ — $ 55,386 $ — Liabilities Earn-out consideration (Notes b,d) $ 22,435 $ — $ — $ 22,435 Derivative instruments (Notes b,c) 17,353 — 17,353 — Total $ 39,788 $ — $ 17,353 $ 22,435 Redeemable non-controlling interest (Note e) $ 4,520 $ — $ — $ 4,520 (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 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 December 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 Earn-out Consideration | 6. Fair Value Measurements (Continued) The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the years ended December 31, 2015 and 2016: As of December 31 2015 2016 Opening Balance $ 33,990 $ 22,820 Earn-out consideration payable in connection with acquisitions — 14,550 Payments made on earn-out consideration (126 ) (1,611 ) Change in fair value and others (11,046 ) (13,324 ) Ending balance $ 22,820 $ 22,435 |
Derivative financial instrume44
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure | The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2015 As of December 2016 As of December 31, 2015 As of December 31, 2016 Foreign exchange forward contracts denominated in: United States dollars (sell) Indian rupees (buy) $ 1,139,400 $ 1,108,400 $ (48,197 ) $ 6,669 United States dollars (sell) Mexican peso (buy) 8,520 9,120 (1,163 ) (187 ) United States dollars (sell) Philippines peso (buy) 58,500 70,050 (1,387 ) (1,036 ) Euro (sell) United States dollars (buy) 146,719 138,613 9,109 9,180 Euro (sell) Romanian leu (buy) 39,027 29,805 567 (152 ) Japanese yen (sell) Chinese renminbi (buy) 62,740 77,267 (1,379 ) (742 ) Pound sterling (sell) United States dollars (buy) 118,438 104,142 7,496 14,228 Australian dollars (sell) United States dollars (buy) 106,544 114,412 5,714 2,328 Interest rate swaps (floating to fixed) — 456,810 — 7,746 (29,240 ) 38,034 (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 7. Derivative financial instruments (Continued) hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenue and 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, that are denominated in currencies other than the Company’s underlying functional currency. |
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, 2015 As of December 31, 2016 As of December 31, 2015 As of December 31, 2016 Assets Prepaid expenses and other current assets $ 17,400 $ 33,921 $ 884 $ 809 Other assets $ 12,096 $ 20,657 $ — $ — Liabilities Accrued expenses and other current liabilities $ 34,576 $ 4,540 $ 34 $ 237 Other liabilities $ 25,010 $ 12,576 $ — $ — |
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Year ended December 31, 2014 2015 2016 Before- tax Amount Tax (Expense) or Benefit Net of tax Amount Before- tax Amount Tax (Expense) or Benefit Net of tax Amount Before- tax Amount Tax (Expense) or Benefit Net of tax Amount Opening balance as of January 1 $ (205,952 ) $ 72,612 $ (133,340 ) $ (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 (49,161 ) 17,498 (31,663 ) (42,106 ) 15,346 (26,760 ) (6,799 ) 409 (6,390 ) Changes in fair value of effective portion of outstanding derivatives, net 90,005 (31,468 ) 58,537 (5,410 ) 1,530 (3,880 ) 60,752 (23,400 ) 37,352 Gain (loss) on cash flow hedging derivatives, net 139,166 (48,966 ) 90,200 36,696 (13,816 ) 22,880 67,551 (23,809 ) 43,742 Closing balance as of December 31 $ (66,786 ) $ 23,646 $ (43,140 ) $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 |
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) Location of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) Year ended December 31, Year ended December 31, 2014 2015 2016 2014 2015 2016 Forward foreign exchange contracts $ 90,005 $ (5,410 ) $ 54,664 Revenue $ (4,301 ) $ 13,667 $ 12,859 Interest rate swaps — — 6,088 Cost of revenue (35,539 ) (44,634 ) (14,223 ) Selling, general and administrative expenses (9,321 ) (11,139 ) (3,765 ) Interest Expense — — (1,670 ) $ 90,005 $ (5,410 ) $ 60,752 $ (49,161 ) $ (42,106 ) $ (6,799 ) Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 as of December 31, 2014, 2015 and 2016. Non-designated Hedges Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives Amount of Gain (Loss) recognized in Statement of Income on Derivatives Year ended December 31, 2014 2015 2016 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 287 $ 6,566 $ 2,921 $ 287 $ 6,566 $ 2,921 (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 cu45
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: As of December 31, 2015 2016 Advance income and non-income taxes $ 52,953 $ 50,676 Deferred transition costs 36,620 45,252 Derivative instruments 18,284 34,730 Prepaid expenses 12,565 22,222 Customer acquisition cost 6,687 11,126 Employee advances 3,878 6,880 Deposits 1,820 2,688 Advances to suppliers 8,028 10,059 Others 13,190 5,516 $ 154,025 $ 189,149 |
Property, plant and equipment46
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | Property, plant and equipment, net consist of the following: As of December 31, 2015 2016 Land $ 9,873 $ 9,635 Buildings 47,718 44,487 Furniture and fixtures 33,356 37,421 Computer equipment and servers 172,086 187,119 Plant, machinery and equipment 79,599 84,677 Computer software 110,153 119,648 Leasehold improvements 86,997 92,313 Vehicles 6,009 6,753 Capital work in progress 10,727 25,398 Property, plant and equipment, gross $ 556,518 $ 607,451 Less: Accumulated depreciation and amortization (381,122 ) (407,336 ) Property, plant and equipment, net $ 175,396 $ 200,115 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table presents the changes in goodwill for the years ended December 31, 2015 and 2016: As of December 31, 2015 2016 Opening balance $ 1,057,214 $ 1,038,346 Goodwill relating to acquisitions consummated during the period 7,674 51,535 Goodwill relating to divestitures during the period — (2,226 ) Impact of measurement period adjustments (135 ) (59 ) Effect of exchange rate fluctuations (26,407 ) (18,188 ) Closing balance $ 1,038,346 $ 1,069,408 |
Goodwill Allocated to Reporting Units | Goodwill has been allocated to the following reporting units, which represent different business units of the Company, as follows: As of December 31, 2015 2016 India $ 461,383 $ 493,084 China 59,250 58,139 Europe 38,242 36,584 Americas 46,583 48,713 IT services 432,888 432,888 $ 1,038,346 $ 1,069,408 |
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 December 31, 2016 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 319,035 $ 247,463 $ 71,572 $ 310,277 $ 259,460 $ 50,817 Marketing-related intangible assets 42,749 27,021 15,728 42,587 29,277 13,310 Other intangible assets 29,729 18,427 11,301 33,266 25,344 7,922 $ 391,513 $ 292,911 $ 98,601 $ 386,130 $ 314,081 $ 72,049 |
Estimated Amortization Schedule of Intangible Assets for Future Periods | The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: For the year ending December 31: 2017 $ 24,397 2018 18,194 2019 13,084 2020 9,289 2021 and beyond 7,085 $ 72,049 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other assets | Other assets consist of the following: As of December 31, 2015 2016 Customer acquisition cost $ 13,458 $ 30,996 Advance income and non-income taxes 50,123 60,203 Deferred transition costs 56,759 74,462 Deposits 24,107 29,853 Derivative instruments 12,096 20,657 Prepaid expenses 4,435 3,179 Accounts receivable due after one year 8,348 3,272 Others 10,679 19,706 $ 180,005 $ 242,328 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Future Minimum Lease Payments under Operating Lease Arrangements | operating lease agreements that expire at various dates. Future minimum lease payments under these agreements are as follows As of December 31: 2017 $ 52,612 2018 48,897 2019 43,886 2020 39,305 2021 35,354 2022 and beyond 115,921 Total minimum lease payments $ 335,975 |
Accrued expenses and other cu50
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of December 31, 2015 2016 Accrued expenses $ 161,672 $ 163,400 Accrued employee cost 158,054 179,360 Deferred transition revenue 44,974 50,552 Statutory liabilities 32,149 36,878 Retirement benefits 17,930 17,616 Derivative instruments 34,610 4,777 Advance from customers 19,815 21,969 Earn-out consideration 16,896 6,885 Other liabilities 12,210 15,461 Capital lease obligations 1,328 1,349 $ 499,638 $ 498,247 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
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 2017 $ 39,181 2018 39,226 2019 39,272 2020 619,654 Total $ 737,333 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other liabilities consist of the following: As of December 31, 2015 2016 Accrued employee cost $ 6,901 $ 3,976 Deferred transition revenue 66,737 72,560 Retirement benefits 29,689 39,020 Derivative instruments 25,010 12,576 Amount received from GE under indemnification arrangement, pending adjustment 3,549 3,159 Advance from customers 4,485 2,371 Earn-out consideration 5,924 15,550 Others 10,729 11,078 Capital lease obligations 2,204 2,500 $ 155,228 $ 162,790 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Funded Status of Defined Benefit Plans and Amount Recognized | The following table sets forth the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of December 31, 2015 and 2016. As of December 31, 2015 2016 Change in benefit obligation Projected benefit obligation at the beginning of the year $ 36,445 $ 35,617 Service cost 5,578 5,661 Actuarial loss (gain) (3,459 ) 6,749 Interest cost 2,629 2,585 Liabilities assumed on acquisition — 693 Benefits paid (3,846 ) (4,967 ) Effect of exchange rate changes (1,730 ) (1,055 ) Projected benefit obligation at the end of the year $ 35,617 $ 45,283 Change in fair value of plan assets Fair value of plan assets at the beginning of the year $ 29,721 $ 28,549 Employer contributions 1,283 5,776 Actual gain on plan assets 2,465 1,777 Assets assumed on acquisition — 170 Acturial gain/(loss) — — Benefits paid (3,763 ) (4,897 ) Effect of exchange rate changes (1,157 ) (504 ) Fair value of plan assets at the end of the year $ 28,549 $ 30,871 |
Amounts Included in Other Comprehensive Income (Loss) | Amounts included in other comprehensive income (loss) as of December 31, 2015 and 2016 were as follows: As of December 31, 2015 2016 Net actuarial loss (3,051 ) (8,979 ) Deferred tax assets 874 2,759 Other comprehensive income (loss), net (2,177 ) (6,220 ) |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in other comprehensive income (loss) during the year ended December 31, 2016 were as follows: 2016 Net actuarial loss $ (7,141 ) Amortization of net actuarial loss (75 ) Deferred income taxes 1,885 Effect of exchange rate changes 1,289 Other comprehensive income (loss), net $ (4,042 ) |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the years ended December 31, 2014, 2015 and 2016 include the following components: Year ended December 31, 2014 2015 2016 Service costs $ 4,721 $ 5,578 $ 5,661 Interest costs 2,410 2,629 2,585 Amortization of actuarial loss 419 330 (113 ) Expected return on plan assets (1,719 ) (2,154 ) (2,043 ) Net defined benefit plan costs $ 5,831 $ 6,383 $ 6,090 |
Fair Values of Plan Assets | The fair values of the Company’s plan assets as of December 31, 2015 and 2016 by asset category are as follows: As of December 31, 2016 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Cash $ 4,809 $ 4,809 $ - $ - Fixed income securities (Note a) 23,659 3,001 20,658 - Other securities (Note b) 2,403 2,191 212 - Total $ 30,871 $ 10,001 $ 20,870 $ - As of December 31, 2015 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Cash $ 2,460 $ 2,460 $ — $ — Fixed income securities (Note a) 23,190 3,520 19,670 — Other securities (Note b) 2,899 1,234 1,665 — Total $ 28,549 $ 7,214 $ 21,335 $ — (a) Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. (b) Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. |
Benefit Plan Payments Reflect Expected Future Service | The expected benefit plan payments set forth below reflect expected future service: Year ending December 31, 2017 $ 6,577 2018 $ 6,654 2019 $ 7,013 2020 $ 7,819 2021 $ 8,268 2022 - 2026 $ 38,886 $ 75,217 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the years ended December 31, 2014, 2015 and 2016, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Year ended December 31, 2014 2015 2016 India $ 15,272 $ 15,915 $ 19,074 U.S. 5,565 8,148 10,379 U.K. 3,361 4,453 6,593 China 14,518 14,511 15,512 Other regions 4,355 4,690 4,684 Total $ 43,071 $ 47,717 $ 56,242 |
Benefit Obligations Of Gratuity Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2015 and 2016 are presented below: As of December 31, 2015 2016 Discount rate 8.30% - 8.45% 7.10% - 7.5% Rate of increase in compensation per annum 5.20%-11.00% 5.20%-11.00% |
Gratuity Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2014, 2015 and 2016 are presented below: Year ended December 31, 2014 2015 2016 Discount rate 9.50% - 9.55% 8.50% - 8.55% 8.30% - 8.45% Rate of increase in compensation per annum 5.20% - 11.00% 5.20% - 11.00% 5.20% - 11.00% Expected long-term rate of return on plan assets per annum 8.50% 8.50% 7.50% |
Benefit Obligations Of The Mexican Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2015 and 2016 are presented below: Year ended December 31, 2015 2016 Discount rate 6.50 % 6.80 % Rate of increase in compensation per annum 5.50 % 5.50 % |
Mexican Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the costs of the Mexican Plan for the years ended December 31, 2014, 2015 and 2016 are presented below: Year ended December 31, 2014 2015 2016 Discount rate 6.50 % 6.50 % 6.50 % Rate of increase in compensation per annum 5.50 % 5.50 % 5.50 % Expected long-term rate of return on plan assets per annum 0.00 % 0.00 % 0.00 % |
Benefit Obligations Of Japan Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligation of the Japan Plan as of December 31, 2015 and 2016 are presented below: Year ended December 31, 2015 2016 Discount rate 0.24% - 1.30% 0.08% - 1.30% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% |
Japan Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the costs of the Japan Plan for the years ended December 31, 2014, 2015 and 2016 are presented below: Year ended December 31, 2014 2015 2016 Discount rate 0.50% - 1.44% 0.20% - 1.30% 0.24% - 1.30% Rate of increase in compensation per annum 0.00% 0.00% - 3.55% 0.00% - 3.55% Expected long-term rate of return on plan assets per annum 2.69% 2.69% - 3.44% 0.00% - 3.77% |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Payment Award, Stock Options Granted, Valuation Assumptions | 18. Stock-based compensation (Continued) The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in 2014, 2015 and 2016: 2014 2015 2016 Dividend yield — — — Expected life (in months) 84 84 84 Risk-free rate of interest for expected life 2.18% - 2.29% 1.99% 1.42%-1.56% Volatility 37.27% - 38.34% 34.97% 25.60%-27.22% |
Summary of Stock Option Activity | A summary of stock option activity during the years ended December 31, 2014, 2015 and 2016 is set out below: Year ended December 31, 2014 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2014 11,102,163 $ 12.40 5.2 $ — Granted 520,000 17.54 — — Forfeited (250,673 ) 19.20 — — Expired (27,228 ) 12.32 — — Exercised (Note b) (3,972,535 ) 7.00 — 47,399 Outstanding as of December 31, 2014 7,371,727 $ 15.44 5.9 $ 27,886 Vested as of December 31, 2014 and expected to vest thereafter (Note a) 7,073,004 $ 15.19 5.9 $ 27,755 Vested and exercisable as of December 31, 2014 3,542,821 $ 11.37 3.1 $ 26,781 Weighted average grant-date fair value of options granted during the period $ 7.54 18. Stock-based compensation (Continued) Year ended December 31, 2015 Shares arising out of options Weighted average exercise Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2015 7,371,727 $ 15.44 5.9 $ — Granted 170,000 22.77 — — Forfeited (125,000 ) 19.35 — — Expired (1,277 ) 14.32 — — Exercised (1,428,605 ) 9.49 — 22,122 Outstanding as of December 31, 2015 5,986,845 $ 16.99 5.8 $ 48,661 Vested as of December 31, 2015 and expected to vest thereafter (Note a) 5,754,969 $ 16.76 5.8 $ 47,325 Vested and exercisable as of December 31, 2015 2,183,846 $ 12.67 2.7 $ 26,892 Weighted average grant-date fair value of options granted during the period $ 9.15 Year ended December 31, 2016 Shares arising out of options Weighted average exercise Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2016 5,986,845 $ 16.99 5.8 $ — Granted 860,000 26.80 — — Forfeited (145,000 ) 17.77 — — Expired — — — — Exercised (994,155 ) 14.98 — 9,301 Outstanding as of December 31, 2016 5,707,690 $ 18.65 5.8 $ 34,641 Vested as of December 31, 2016 and expected to vest thereafter (Note a) 5,457,701 $ 18.42 5.8 $ 34,150 Vested and exercisable as of December 31, 2016 2,746,191 $ 15.62 4.0 $ 23,960 Weighted average grant-date fair value of options granted during the period $ 8.50 (a) Options expected to vest reflect an estimated forfeiture rate. (b) 2,138,601 of these options were net settled upon exercise by issuing 1,485,826 shares (net of minimum statutory withholding taxes). |
Summary of Restricted Share Units Granted | A summary of RSUs granted during the years ended December 31, 2014, 2015 and 2016 is set out below: Year ended December 31, 2014 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2014 871,772 $ 13.96 Granted 227,248 16.58 Vested (Note b) (511,513 ) 13.83 Forfeited (99,089 ) 13.77 Outstanding as of Dec 31, 2014 488,418 $ 15.36 Expected to vest (Note a) 451,721 Year ended December 31, 2015 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2015 488,418 $ 15.36 Granted 53,546 20.88 Vested (Note c) (351,338 ) 15.29 Forfeited (33,236 ) 14.00 Outstanding as of December 31, 2015 157,390 $ 17.67 Expected to vest (Note a) 147,226 Year ended December 31, 2016 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2016 157,390 $ 17.67 Granted 95,553 25.49 Vested (Note d) (133,903 ) 20.66 Forfeited (1,135 ) 14.18 Outstanding as of December 31, 2016 117,905 $ 20.65 Expected to vest (Note a) 107,366 (a) RSUs expected to vest reflect an estimated forfeiture rate. (b) 418,821 of these RSUs were net settled upon vesting by issuing 285,706 shares (net of minimum statutory withholding taxes). 92,692 RSUs vested in the year ended December 31, 2014, 91,963 shares in respect of which were issued in 2016 after withholding shares to the extent of minimum statutory withholding taxes. (c) Vested RSUs were net settled by issuing 199,949 shares (net of minimum statutory tax withholding). 53,546 RSUs vested in the year ended December 31, 2015, shares in respect of which will be issuable in 2017 after withholding shares to the extent of minimum statutory withholding taxes. (d) Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016, shares in respect of which will be issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. |
Summary of Performance Units Activity | A summary of PU activity during the years ended December 31, 2014, 2015 and 2016 is set out below: Year ended December 31, 2014 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2014 3,913,733 $ 16.44 6,149,018 Granted 1,337,750 16.78 2,729,125 Vested (Note b) (1,469,200 ) 14.50 (1,469,183 ) Forfeited (Note d) (2,629,463 ) 17.30 (2,664,980 ) Adjustment due to achievement of higher-than-target performance (Note c) 139,930 12.04 Adjustment due to achievement of lower-than-maximum performance (Note e) (2,095,354 ) Outstanding as of December 31, 2014 1,292,750 $ 16.78 2,648,626 Expected to vest (Note a) 1,153,277 18. Stock-based compensation (Continued) Year ended December 31, 2015 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2015 1,292,750 $ 16.78 2,648,626 Granted 1,375,650 22.72 2,965,475 Vested (Note f) (855 ) 16.78 (855 ) Forfeited (136,216 ) 17.82 (156,194 ) Adjustment due to achievement of lower-than-target performance (Note g) (32,007 ) 20.45 Adjustment due to achievement of lower-than-maximum performance (Note h) (2,957,730 ) Outstanding as of December 31, 2015 2,499,322 $ 19.95 2,499,322 Expected to vest (Note a) 2,184,906 Year ended December 31, 2016 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2016 2,499,322 $ 19.95 2,499,322 Granted 1,518,374 27.93 3,343,335 Vested — — — Forfeited (252,842 ) 21.88 (325,817 ) Adjustment upon final determination of level of performance goal achievement 7,274 22.72 Adjustment upon final determination of level of performance goal achievement (Note i) 7,274 Outstanding as of December 31, 2016 3,772,128 $ 23.04 5,524,114 Expected to vest (Note a) 2,226,489 (a) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (b) Vested PUs as of December 31, 2014 include 775,904 shares issued in 2014 with respect to grants made in 2011 after withholding shares to the extent of the minimum statutory withholding taxes. (c) Represents 139,930 additional shares issued in 2014 (included in note (b) above) for PUs granted in 2011. (d) Includes 251,427 shares underlying PUs granted in May 2011, 1,244,507 shares underlying PUs granted in March 2013 and 630,000 shares underlying PUs granted in May 2013, all of which were forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. 18. Stock-based compensation (Continued) (e) Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest with respect to PUs granted in March 2011 and June 2011, respectively, as a result of the compensation committee’s certification of the level of achievement of the performance conditions based on the Company’s audited financial statements. Also includes a reduction of 616,568 shares for grants made in March 2013, 985,500 shares for grants made in May 2013 and 121,000 shares for grants made in May 2011, due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. (f) Vested PUs were net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). (g) Represents a 5.2% to 6.7% reduction, depending on the targets under the PU award granted, in the number of target shares as a result of achievement of lower-than-target performance for the PUs granted in 2015, partially offset by a 0.8% to 6.6% increase in the number of target shares as a result of achievement of higher-than-target performance for the PUs granted in 2014. (h) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2015 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2014 based on the certified level of achievement of the performance goals. (i) Represents an adjustment made in March 2016 to the number of shares underlying the PUs granted in 2015 upon certification of the level of achievement of the performance targets for such awards. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per share | Year ended December 31, 2014 2015 2016 Net income available to Genpact Limited common shareholders $ 192,002 $ 239,817 $ 269,684 Weighted average number of common shares used in computing basic earnings per common share 220,847,098 216,606,542 206,861,536 Dilutive effect of stock-based awards 4,321,567 2,538,502 3,264,487 Weighted average number of common shares used in computing dilutive earnings per common share 225,168,665 219,145,044 210,126,023 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.87 $ 1.11 $ 1.30 Diluted $ 0.85 $ 1.09 $ 1.28 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | Cost of revenue consists of the following: Year ended December 31, 2014 2015 2016 Personnel expenses $ 943,105 $ 1,013,209 $ 1,061,501 Operational expenses 390,441 432,535 446,922 Depreciation and amortization 44,542 47,803 46,284 $ 1,378,088 $ 1,493,547 $ 1,554,707 |
Selling, general and administ57
Selling, general and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Selling General And Administrative Expenses [Abstract] | |
Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: Year ended December 31, 2014 2015 2016 Personnel expenses $ 419,299 $ 430,088 $ 469,956 Operational expenses 157,755 169,042 174,060 Depreciation and amortization 8,592 8,984 9,013 $ 585,646 $ 608,114 $ 653,029 |
Other operating (income) expe58
Other operating (income) expense, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Year ended December 31, 2014 2015 2016 Other operating (income) expense $ (3,163 ) $ (2,515 ) $ (1,266 ) Impairment of intangible assets — 10,714 11,195 Change in fair value of earn-out consideration, deferred consideration (relating to business acquisitions) (3,707 ) (11,521 ) (14,869 ) Other operating (income) expense, net $ (6,870 ) $ (3,322 ) $ (4,940 ) |
Interest income (expense), net
Interest income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking And Thrift Interest [Abstract] | |
Interest Income (Expense), Net | Interest income (expense), net consists of the following: Year ended December 31, 2014 2015 2016 Interest income $ 4,405 $ 8,676 $ 7,247 Interest expense (33,800 ) (29,828 ) (23,431 ) Loss on extinguishment of debt — (10,115 ) — Interest income (expense), net $ (29,395 ) $ (31,267 ) $ (16,184 ) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income tax expense (benefit) for the years ended December 31, 2014, 2015 and 2016 is allocated as follows: Year ended December 31, 2014 2015 2016 Income from continuing operations $ 57,419 $ 61,937 $ 62,098 Other Comprehensive Income: Unrealized gains (losses) on cash flow hedges 48,966 13,816 23,809 Retirement benefits (413 ) 1,304 (1,885 ) Additional paid-in capital: Excess tax benefit on stock-based compensation — $ (6,560 ) — Retained earnings: Deferred tax assets recognized on early adoption of ASU 2016-09 — — (24,912 ) |
Components of Income before Income Tax Expense from Continuing Operations | The components of income before income tax expense from continuing operations are as follows: Year ended December 31, 2014 2015 2016 Domestic (U.S.) $ 19,614 $ 23,122 $ 44,110 Foreign (Non-U.S.) 229,976 278,632 285,535 Income before income taxes $ 249,590 $ 301,754 $ 329,645 |
Income Tax Expense (Benefit) Attributable to Income from Continuing Operations | Income tax expense (benefit) attributable to income from continuing operations consists of: Year ended December 31, 2014 2015 2016 Current taxes : Domestic (U.S. federal taxes) $ 3,768 $ 12,142 $ 78 Domestic (U.S. state taxes) 666 301 1,069 Foreign (Non-U.S.) 65,237 68,207 30,497 $ 69,671 $ 80,650 $ 31,644 Deferred taxes : Domestic (U.S. federal taxes) $ 2,761 $ (5,396 ) $ 11,379 Domestic (U.S. state taxes) (193 ) 344 (459 ) Foreign (Non-U.S.) (14,820 ) (13,661 ) 19,534 $ (12,252 ) $ (18,713 ) $ 30,454 Total income tax expense (benefit) $ 57,419 $ 61,937 $ 62,098 |
Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes | Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes, as a result of the following: Year ended December 31, 2014 2015 2016 Income before income tax expense $ 249,590 $ 301,754 $ 329,645 Statutory tax rates 35 % 35 % 35 % Computed expected income tax expense 87,356 105,614 115,376 Increase (decrease) in income taxes resulting from: Foreign tax rate differential (4,703 ) (16,550 ) (18,574 ) Tax benefit from tax holiday (35,868 ) (38,039 ) (32,893 ) Non-deductible expenses 3,789 1,884 2,295 Effect of change in tax rates 176 1,436 353 Change in valuation allowance (2,880 ) (33 ) (4,830 ) Unrecognized tax benefits 1,423 6,272 (627 ) Others 8,126 1,353 998 Reported income tax expense (benefit) $ 57,419 $ 61,937 $ 62,098 |
Components of Deferred Tax Balances | The components of the Company’s deferred tax balances as of December 31, 2015 and 2016 are as follows: As of December 31, 2015 2016 Deferred tax assets Net operating loss carryforwards $ 48,626 $ 52,997 Accrued liabilities and other expenses 16,680 19,840 Provision for doubtful receivables 5,655 6,419 Property, plant and equipment 4,538 3,445 Unrealized losses on cash flow hedges, net 10,296 558 Share-based compensation 14,253 19,054 Retirement benefits 2,772 5,067 Deferred revenue 39,547 44,892 Tax credit carryforwards 52,993 34,509 Others 9,173 8,876 Gross deferred tax assets $ 204,533 $ 195,657 Less: Valuation allowance (20,091 ) (14,746 ) Total deferred tax assets $ 184,442 $ 180,911 Deferred tax liabilities Intangible assets $ 20,987 $ 13,519 Property, plant and equipment 3,406 2,745 Deferred cost 31,953 41,950 Investments in foreign subsidiaries not indefinitely reinvested 23,097 29,546 Unrealized gains on cash flow hedges, net — 14,350 Others 7,697 11,073 Total deferred tax liabilities $ 87,140 $ 113,183 Net deferred tax asset $ 97,302 $ 67,728 As of December 31, Classified as 2015 2016 Deferred tax assets Non-current $ 99,395 $ 70,143 Deferred tax liabilities Non-current $ 2,093 $ 2,415 $ 97,302 $ 67,728 |
Change in Total Valuation Allowance for Deferred Tax Assets | The change in the total valuation allowance for deferred tax assets as of December 31, 2014, 2015 and 2016 is as follows: Year ended December 31, 2014 2015 2016 Opening valuation allowance $ 24,654 $ 21,094 $ 20,091 Reduction during the year (8,662 ) (3,499 ) (7,299 ) Addition during the year 5,102 2,496 1,954 Closing valuation allowance $ 21,094 $ 20,091 $ 14,746 |
Remaining Tax Loss Carry Forwards Expiration | US - Europe Others Year ending December 31, 2017 $ — $ 3 $ — 2018 — 5 19 2019 — 5 67 2020 — 234 697 2021 — 2,335 2,790 2022 — 1,829 57 2023 — 4,576 1,133 2024 — 5,820 8,577 2025 — 3,485 2,379 2026 — 348 2,329 2027 — — — 2028 — 31 — 2029 — - — 2030 — 196 — 2031 14,607 188 — 2032 21 65 — 2033 4,538 83 — 2034 37 — — 2035 30 — — 2036 — — — 2037 — — 1,097 $ 19,233 $ 19,203 $ 19,145 |
Foreign Tax Credit Expiry Period | Year ending December 31, Amount 2022 $ 893 2023 1,202 2024 15,552 2025 8,481 2026 5,362 $ 31,490 |
Activities Related to Unrecognized Tax Benefits | The following table summarizes activities related to our unrecognized tax benefits from January 1 to December 31 for each of 2014, 2015 and 2016: Year Ended December 31, 2014 2015 2016 Opening Balance at January 1 $ 21,832 $ 22,718 $ 26,357 Increase related to prior year tax positions, including recorded in acquisition accounting 2,472 2,000 370 Decrease related to prior year tax positions (1,002 ) — (1,506 ) Decrease related to divestiture of business — — (345 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (753 ) (820 ) (2,122 ) Increase related to current year tax positions, including recorded in acquisition accounting 442 3,544 3,225 Decrease related to settlements with tax authorities — — (2,000 ) Effect of exchange rate changes (273 ) (1,085 ) (512 ) Closing Balance at December 31 $ 22,718 $ 26,357 $ 23,467 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Net Revenues for Service Type | Net revenues by service type are as follows: Year ended December 31, 2014 2015 2016 Business process outsourcing $ 1,736,716 $ 1,933,095 $ 2,083,450 Information technology services 542,722 527,949 487,306 Total net revenues $ 2,279,438 $ 2,461,044 $ 2,570,756 |
Revenues from Clients Based on Industry Serviced | Revenues from clients based on the industry serviced are as follows: Year ended December 31, 2014 2015 2016 Banking, financial services and insurance $ 940,345 $ 1,030,584 $ 1,055,704 Manufacturing, including pharmaceuticals and medical equipment manufacturing 796,872 878,570 958,779 Technology, healthcare and other services 542,221 551,890 556,273 Total net revenues $ 2,279,438 $ 2,461,044 $ 2,570,756 |
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers | 26. Segment reporting (Continued) Net revenues from geographic areas based on the location of the Company’s service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. Year ended December 31, 2014 2015 2016 India $ 1,505,960 $ 1,687,699 $ 1,804,113 Asia, other than India 232,349 238,529 249,839 North and Latin America 302,515 304,879 282,434 Europe 238,614 229,937 234,370 Total net revenues $ 2,279,438 $ 2,461,044 $ 2,570,756 |
Property, Plant and Equipment, Net by Geographic Areas | Property, plant and equipment, net by geographic region are as follows: As of December 31, 2015 2016 India $ 112,911 $ 116,417 Asia, other than India 11,700 13,549 North and Latin America 41,561 51,400 Europe 9,224 18,749 Total $ 175,396 $ 200,115 |
Quarterly financial data (una62
Quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Three months ended Year ended March 31, 2016 June 30, 2016 September 30, 2016 December December 31, 2016 Total net revenues $ 609,703 $ 630,523 $ 648,783 $ 681,747 $ 2,570,756 Gross profit $ 236,855 $ 246,768 $ 256,351 $ 276,075 $ 1,016,049 Income from operations $ 75,622 $ 79,940 $ 87,124 $ 98,092 $ 340,777 Income before equity method investment activity, net and income tax expense $ 72,664 $ 81,818 $ 87,360 $ 95,502 $ 337,343 Net income $ 58,276 $ 64,349 $ 68,045 $ 76,878 $ 267,547 Net income attributable to non-controlling interest/redeemable Non-controlling interest $ 289 $ 882 $ 734 $ 232 $ 2,137 Net income attributable to Genpact Limited common shareholders $ 58,565 $ 65,231 $ 68,779 $ 77,110 $ 269,684 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.28 $ 0.31 $ 0.33 $ 0.38 $ 1.30 Diluted $ 0.27 $ 0.31 $ 0.33 $ 0.38 $ 1.28 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 210,780,165 210,178,050 206,146,007 200,341,922 206,861,536 Diluted 213,892,964 213,803,134 209,376,683 203,431,310 210,126,023 29. Quarterly financial data (unaudited) (Continued) Three months ended Year ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 December 31, 2015 Total net revenues $ 587,153 $ 609,532 $ 617,831 $ 646,528 $ 2,461,044 Gross profit $ 229,677 $ 243,228 $ 242,001 $ 252,591 $ 967,497 Income from operations $ 74,050 $ 89,353 $ 87,343 $ 83,446 $ 334,192 Income before equity method investment activity, net and income tax expense $ 57,938 $ 80,245 $ 89,685 $ 84,686 $ 312,554 Net income $ 44,653 $ 62,701 $ 68,050 $ 64,413 $ 239,817 Net income attributable to non-controlling interest $ — $ — $ — $ — $ — Net income attributable to Genpact Limited common shareholders $ 44,653 $ 62,701 $ 68,050 $ 64,413 $ 239,817 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.20 $ 0.29 $ 0.32 $ 0.30 $ 1.11 Diluted $ 0.20 $ 0.28 $ 0.31 $ 0.30 $ 1.09 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 219,892,695 218,525,149 215,311,322 212,697,001 216,606,542 Diluted 222,347,101 220,962,306 217,595,704 215,675,065 219,145,044 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016EmployeeCountryCustomer | Oct. 25, 2012shares | |
Organization [Line Items] | ||
Number of professionals around the globe, minimum | Employee | 75,000 | |
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 |
Summary of Significant Accoun64
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
General Electric Company | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of accounts receivables | 15.00% | 18.00% | |
Percentage of revenues | 16.00% | 19.00% | 20.00% |
Minimum | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Short term investment, maturity period | 90 days | ||
Maximum | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Short term investment, maturity period | 1 year |
Estimated Economic Useful Lives
Estimated Economic Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Buildings | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 40 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer Equipment and Servers | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Plant, Machinery and Equipment | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Property, plant and equipment, estimated useful lives description | Lesser of lease period or 10 years |
Minimum | Software | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Minimum | Vehicles | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Maximum | Software | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 7 years |
Maximum | Vehicles | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Estimated Useful Lives of Intan
Estimated Useful Lives of Intangible Assets Acquired (Detail) | 12 Months Ended |
Dec. 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 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) | Aug. 04, 2016 | Apr. 13, 2016 | Jan. 08, 2016 | Nov. 04, 2014 | May 29, 2014 | Apr. 30, 2018 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2018 |
Business Acquisition [Line Items] | |||||||||||||
Payment for business acquisitions, net of cash acquired | $ 45,162,000 | $ 21,363,000 | $ 130,809,000 | ||||||||||
Goodwill | $ 1,069,408,000 | 1,069,408,000 | 1,038,346,000 | 1,057,214,000 | |||||||||
Increase in Goodwill | (59,000) | (135,000) | |||||||||||
Net sale proceeds | 17,242,000 | ||||||||||||
Gain on divestiture | 5,214,000 | ||||||||||||
Atyati Technologies Private Limited | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Net sale proceeds | $ 17,155,000 | ||||||||||||
Net of selling expenses | 427,000 | ||||||||||||
Cash divested | 854,000 | ||||||||||||
Net revenues | 14,958,000 | ||||||||||||
Net profit (loss) | 64,000 | ||||||||||||
Gain on divestiture | $ 5,214,000 | ||||||||||||
PNMSoft Ltd | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||||
Purchase consideration | $ 35,341,000 | ||||||||||||
Payment for business acquisitions, net of cash acquired | 28,128,000 | ||||||||||||
Cash and cash equivalents | 2,853,000 | ||||||||||||
Increase (decrease) in purchase consideration | (155,000) | ||||||||||||
Additional reserve for doubtful receivables | 136,000 | 136,000 | |||||||||||
Non-current liability | 19,000 | 19,000 | |||||||||||
Deferred tax assets | 25,000 | 25,000 | |||||||||||
Contingent earn-out consideration-Low end | 0 | ||||||||||||
Contingent earn-out consideration-High end | $ 9,000,000 | ||||||||||||
Acquired intangible assets, weighted average amortization period | 2 years | ||||||||||||
Goodwill | $ 25,101,000 | ||||||||||||
Acquisition related cost | 1,273,000 | ||||||||||||
Acquired assets | 7,110,000 | ||||||||||||
Liabilities assumed | 4,366,000 | ||||||||||||
Recognized net deferred tax liability | 944,000 | ||||||||||||
PNMSoft Ltd | Customer-Related Intangible Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 1,700,000 | ||||||||||||
PNMSoft Ltd | Marketing-Related Intangible Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 1,630,000 | ||||||||||||
PNMSoft Ltd | Other Intangible Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | $ 5,110,000 | ||||||||||||
Endeavour Software Technologies Private Limited | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payment for business acquisitions, net of cash acquired | $ 10,028,000 | ||||||||||||
Cash and cash equivalents | 2,345,000 | ||||||||||||
Contingent earn-out consideration-Low end | 0 | ||||||||||||
Contingent earn-out consideration-High end | $ 3,500,000 | ||||||||||||
Acquired intangible assets, weighted average amortization period | 3 years | ||||||||||||
Goodwill | $ 8,870,000 | ||||||||||||
Acquisition related cost | 338,000 | ||||||||||||
Acquired assets | 5,691,000 | ||||||||||||
Liabilities assumed | $ 1,853,000 | ||||||||||||
Ownership percentage acquired | 100.00% | ||||||||||||
Preliminary estimated purchase consideration | $ 14,443,000 | ||||||||||||
Cash withheld for seller | 95,000 | ||||||||||||
Deferred tax liability | 915,000 | ||||||||||||
Endeavour Software Technologies Private Limited | Customer-Related Intangible Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 800,000 | ||||||||||||
Endeavour Software Technologies Private Limited | Marketing-Related Intangible Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | 900,000 | ||||||||||||
Endeavour Software Technologies Private Limited | Other Intangible Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | $ 950,000 | ||||||||||||
Strategic Sourcing Excellence LLC | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Purchase consideration | $ 14,541,000 | ||||||||||||
Increase (decrease) in purchase consideration | 51,000 | ||||||||||||
Contingent earn-out consideration-High end | $ 20,000,000 | ||||||||||||
Acquired intangible assets, weighted average amortization period | 5 years | ||||||||||||
Goodwill | $ 14,445,000 | ||||||||||||
Acquisition related cost | 164,000 | ||||||||||||
Acquired assets | 412,000 | ||||||||||||
Liabilities assumed | $ 617,000 | ||||||||||||
Ownership percentage acquired | 51.00% | ||||||||||||
Cash consideration to acquired certain assets and assumed certain liabilities | $ 2,550,000 | ||||||||||||
Increase in Goodwill, current assets | 69,000 | 69,000 | |||||||||||
Increase in Goodwill, non-current asset | 16,000 | $ 16,000 | |||||||||||
Increase in Goodwill | $ 34,000 | ||||||||||||
Strategic Sourcing Excellence LLC | If either the call or put option is exercised | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Contingent earn-out consideration-High end | $ 9,800,000 | ||||||||||||
Equity method investment ownership percentage | 49.00% | ||||||||||||
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 | Minimum | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Selling equity holders put option exercise price | $ 2,450,000 | ||||||||||||
Strategic Sourcing Excellence LLC | Selling Equityholders Put Option | Scenario, Forecast | Maximum | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Selling equity holders put option exercise price | $ 2,950,000 | ||||||||||||
Strategic Sourcing Excellence LLC | Customer-Related Intangible Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | $ 300,000 | ||||||||||||
Japan Finance And Accounting Service Delivery | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payment for business acquisitions, net of cash acquired | $ 7,108,000 | ||||||||||||
Contingent earn-out consideration-Low end | 0 | ||||||||||||
Contingent earn-out consideration-High end | 15,750,000 | ||||||||||||
Goodwill | 16,791,000 | ||||||||||||
Acquisition related cost | 796,000 | ||||||||||||
Liabilities assumed | 80,000 | ||||||||||||
Preliminary estimated purchase consideration | 21,737,000 | ||||||||||||
Increase in Goodwill, current assets | 147,000 | ||||||||||||
Cash and cash equivalents | 3,491,000 | ||||||||||||
Increase in Goodwill, pension assets | $ 96,000 | ||||||||||||
Japan Finance And Accounting Service Delivery | Customer-Related Intangible Assets | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Intangible assets | $ 7,522,000 | ||||||||||||
Acquired intangible assets, weighted average amortization period | 7 years | ||||||||||||
Deferred tax liability | $ 2,496,000 | ||||||||||||
Pharmalink Consulting Inc | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||||
Payment for business acquisitions, net of cash acquired | $ 123,701,000 | ||||||||||||
Increase (decrease) in purchase consideration | $ 168,000 | ||||||||||||
Non-current liability | $ 585,000 | ||||||||||||
Contingent earn-out consideration-Low end | 0 | ||||||||||||
Contingent earn-out consideration-High end | 27,405,000 | ||||||||||||
Intangible assets | $ 29,923,000 | ||||||||||||
Acquired intangible assets, weighted average amortization period | 6 years | ||||||||||||
Goodwill | $ 110,121,000 | ||||||||||||
Preliminary estimated purchase consideration | 138,799,000 | ||||||||||||
Cash and cash equivalents | $ 2,200,000 |
Purchase Consideration for Acqu
Purchase Consideration for Acquisition, Japan Finance and Accounting Service Delivery (Detail) - Japan Finance And Accounting Service Delivery $ in Thousands | Nov. 04, 2014USD ($) |
Business Acquisition [Line Items] | |
Cash consideration after adjustment for pension underfunding and closing net assets value | $ 10,539 |
Fair value of contingent earn-out consideration (ranging from $0 to $15,750) | 11,198 |
Total estimated purchase consideration | $ 21,737 |
Purchase Consideration for Ac69
Purchase Consideration for Acquisition, Japan Finance and Accounting Service Delivery (Parenthetical) (Detail) - Japan Finance And Accounting Service Delivery $ in Thousands | Nov. 04, 2014USD ($) |
Business Acquisition [Line Items] | |
Contingent earn-out consideration-Low end | $ 0 |
Contingent earn-out consideration-High end | $ 15,750 |
Purchase Consideration for Ac70
Purchase Consideration for Acquisition, Pharmalink (Detail) - Pharmalink Consulting Inc $ in Thousands | May 29, 2014USD ($) |
Business Acquisition [Line Items] | |
Cash consideration after adjustment for net debt and working capital | $ 126,069 |
Fair value of contingent earn-out consideration (ranging from $0 to $27,405) | 12,730 |
Total estimated purchase consideration | $ 138,799 |
Purchase Consideration for Ac71
Purchase Consideration for Acquisition, Pharmalink (Parenthetical) (Detail) - Pharmalink Consulting Inc $ in Thousands | May 29, 2014USD ($) |
Business Acquisition [Line Items] | |
Contingent earn-out consideration-Low end | $ 0 |
Contingent earn-out consideration-High end | $ 27,405 |
Purchase Price Allocated Based
Purchase Price Allocated Based on Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 29, 2014 |
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Goodwill | $ 1,069,408 | $ 1,038,346 | $ 1,057,214 | |
Pharmalink Consulting Inc | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 138,799 | |||
Acquisition-related costs included in selling, general and administrative expenses as incurred | 1,977 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Net assets acquired | 7,174 | |||
Intangible assets | 29,923 | |||
Deferred tax asset (liability), net | (8,419) | |||
Total identifiable net assets acquired | 28,678 | |||
Goodwill | 110,121 | |||
Total estimated purchase consideration | $ 138,799 |
Summary of Calculation of Gain
Summary of Calculation of Gain on Sale of Business (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2016 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net sale proceeds | $ 17,242 | |
Gain on divestiture included in other income (expense), net | $ 5,214 | |
Atyati Technologies Private Limited | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net sale proceeds | $ 17,155 | |
Net assets of the business, including intangible assets, allocated goodwill and the translation impact thereof | 11,941 | |
Gain on divestiture included in other income (expense), net | $ 5,214 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and other bank balances | $ 422,623 | $ 450,907 | ||
Total | $ 422,623 | $ 450,907 | $ 461,788 | $ 571,276 |
Reserve for Doubtful Receivable
Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Opening Balance | $ 11,530 | $ 15,192 | $ 16,560 |
Additions due to acquisitions | 178 | ||
Additions charged to cost and expense | 7,282 | 2,449 | 3,107 |
Deductions/effect of exchange rate fluctuations | (3,293) | (6,111) | (4,653) |
Closing Balance | $ 15,519 | $ 11,530 | $ 15,192 |
Accounts Receivable, Net of R76
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | ||||
Gross accounts receivable | $ 630,784,000 | $ 601,667,000 | ||
Reserve for doubtful receivables | 15,519,000 | 11,530,000 | $ 15,192,000 | $ 16,560,000 |
Net accounts receivable | 615,265,000 | 590,137,000 | ||
Accounts receivable due after one year | 3,272,000 | 8,348,000 | ||
Accounts receivable from related parties | 2,490,000 | 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 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative instrument, asset | [1],[2] | $ 55,386 | $ 30,380 | |
Total, assets | 55,386 | 30,380 | ||
Fair value of contingent earn-out consideration (ranging from $0 to $15,750) | [3],[5] | 22,435 | [4] | 22,820 |
Derivative instrument, liability | [2],[3] | 17,353 | 59,620 | |
Total, liabilities | 39,788 | 82,440 | ||
Redeemable non-controlling interest | [4] | 4,520 | ||
Fair Value, Inputs, Level 2 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative instrument, asset | [1],[2] | 55,386 | 30,380 | |
Total, assets | 55,386 | 30,380 | ||
Derivative instrument, liability | [2],[3] | 17,353 | 59,620 | |
Total, liabilities | 17,353 | 59,620 | ||
Fair Value, Inputs, Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fair value of contingent earn-out consideration (ranging from $0 to $15,750) | [3],[5] | 22,435 | [4] | 22,820 |
Total, liabilities | 22,435 | $ 22,820 | ||
Redeemable non-controlling interest | [4] | $ 4,520 | ||
[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 Company’s estimate of the fair value of redeemable non-controlling interest as of December 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. | |||
[5] | The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of 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. |
Fair Value of Earn-out Consider
Fair Value of Earn-out Consideration (Detail) - Fair Value, Inputs, Level 3 - Business Acquisition Contingent Consideration - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 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 | 14,550 | |
Payments made on earn-out consideration | (1,611) | (126) |
Change in fair value and others | (13,324) | (11,046) |
Ending balance | $ 22,435 | $ 22,820 |
Derivative Financial Instrume79
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Amount of gain (loss) recognized in income on ineffective portion of derivatives and amount excluded from effectiveness testing | $ 0 | $ 0 | $ 0 |
Maximum | Forward Foreign Exchange Contracts | |||
Derivative [Line Items] | |||
Derivative financial instrument contracts, maturity period | 60 months | ||
Maximum | Interest Rate Swaps | |||
Derivative [Line Items] | |||
Derivative financial instrument contracts, maturity period | 60 months |
Aggregate Notional Principal Am
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 38,034,000 | $ (29,240,000) |
United States Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,108,400,000 | 1,139,400,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 6,669,000 | (48,197,000) |
United States Dollars (sell) Mexican Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 9,120,000 | 8,520,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (187,000) | (1,163,000) |
United States Dollars (sell) Philippines Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 70,050,000 | 58,500,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (1,036,000) | (1,387,000) |
Euro (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 138,613,000 | 146,719,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 9,180,000 | 9,109,000 |
Euro (sell) Romanian Leu (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 29,805,000 | 39,027,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (152,000) | 567,000 |
Japanese Yen (sell) Chinese Renminbi (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 77,267,000 | 62,740,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (742,000) | (1,379,000) |
Pound Sterling (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 104,142,000 | 118,438,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 14,228,000 | 7,496,000 |
Australian Dollars (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 114,412,000 | 106,544,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 2,328,000 | $ 5,714,000 |
Interest Rate Swap Floating To Fixed [Member] | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 456,810,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 7,746,000 | |
[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 | Dec. 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 | $ 809 | $ 884 |
Not Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 237 | 34 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 33,921 | 17,400 |
Cash Flow Hedges | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 20,657 | 12,096 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 4,540 | 34,576 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | $ 12,576 | $ 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 | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||
Opening balance, before-tax amount | $ (30,090) | $ (66,786) | $ (205,952) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount | (6,799) | (42,106) | (49,161) |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | 60,752 | (5,410) | 90,005 |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | 67,551 | 36,696 | 139,166 |
Closing balance, before-tax amount | 37,461 | (30,090) | (66,786) |
Opening balance, tax (expense) or benefit | 9,830 | 23,646 | 72,612 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit | 409 | 15,346 | 17,498 |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | (23,400) | 1,530 | (31,468) |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | (23,809) | (13,816) | (48,966) |
Closing balance, tax (expense) or benefit | (13,979) | 9,830 | 23,646 |
Opening balance, net of tax amount | (20,260) | (43,140) | (133,340) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount | (6,390) | (26,760) | (31,663) |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | 37,352 | (3,880) | 58,537 |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | 43,742 | 22,880 | 90,200 |
Closing balance, net of tax amount | $ 23,482 | $ (20,260) | $ (43,140) |
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 | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $ 60,752 | $ (5,410) | $ 90,005 | |
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (6,799) | (42,106) | (49,161) | |
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | 2,921 | 6,566 | 287 | |
Net revenues | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 12,859 | 13,667 | (4,301) | |
Cost of Revenue | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (14,223) | (44,634) | (35,539) | |
Selling, General and Administrative Expenses | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (3,765) | (11,139) | (9,321) | |
Interest Expense | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (1,670) | |||
Forward Foreign Exchange Contracts | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | 54,664 | (5,410) | 90,005 | |
Forward Foreign Exchange Contracts | 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] | 2,921 | $ 6,566 | $ 287 |
Interest Rate Swaps | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $ 6,088 | |||
[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 Cu84
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Advance income and non-income taxes | $ 50,676 | $ 52,953 |
Deferred transition costs | 45,252 | 36,620 |
Derivative instruments | 34,730 | 18,284 |
Prepaid expenses | 22,222 | 12,565 |
Customer acquisition cost | 11,126 | 6,687 |
Employee advances | 6,880 | 3,878 |
Deposits | 2,688 | 1,820 |
Advances to suppliers | 10,059 | 8,028 |
Others | 5,516 | 13,190 |
Prepaid expenses and other current assets, net | $ 189,149 | $ 154,025 |
Property, Plant and Equipment85
Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 607,451 | $ 556,518 |
Less: Accumulated depreciation and amortization | (407,336) | (381,122) |
Property, plant and equipment, net | 200,115 | 175,396 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,635 | 9,873 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 44,487 | 47,718 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 37,421 | 33,356 |
Computer Equipment and Servers | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 187,119 | 172,086 |
Plant, Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 84,677 | 79,599 |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 119,648 | 110,153 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 92,313 | 86,997 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,753 | 6,009 |
Capital Work in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 25,398 | $ 10,727 |
Property, Plant and Equipment86
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 54,553 | $ 54,286 | $ 51,064 |
Property, plant and equipment held under capital lease arrangements, gross | 3,183 | 2,797 | |
Software Amortization | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 9,471 | 9,114 | 9,105 |
Effect of Reclassification of Foreign Exchange (Gains) Losses | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 744 | 2,501 | 2,070 |
Assets Held Under Capital Leases | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 1,564 | 1,594 | 1,786 |
Depreciation Expense on Property, Plant And Equipment | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 45,826 | $ 47,673 | $ 44,029 |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Opening balance | $ 1,038,346 | $ 1,057,214 |
Goodwill relating to acquisitions consummated during the period | 51,535 | 7,674 |
Goodwill relating to divestitures during the period | (2,226) | |
Increase in Goodwill | (59) | (135) |
Effect of exchange rate fluctuations | (18,188) | (26,407) |
Closing balance | $ 1,069,408 | $ 1,038,346 |
Goodwill Allocated to Reporting
Goodwill Allocated to Reporting Units (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | |||
Goodwill | $ 1,069,408 | $ 1,038,346 | $ 1,057,214 |
India | |||
Goodwill [Line Items] | |||
Goodwill | 493,084 | 461,383 | |
China | |||
Goodwill [Line Items] | |||
Goodwill | 58,139 | 59,250 | |
Europe | |||
Goodwill [Line Items] | |||
Goodwill | 36,584 | 38,242 | |
Americas | |||
Goodwill [Line Items] | |||
Goodwill | 48,713 | 46,583 | |
IT Services | |||
Goodwill [Line Items] | |||
Goodwill | $ 432,888 | $ 432,888 |
Goodwill and Intangible Asset89
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill deductible for tax purposes | $ 39,032 | $ 36,390 | |
Amortization of acquired intangible assets | 27,183 | 28,513 | $ 28,543 |
Intangible assets write-down | 11,195 | $ 10,714 | |
IT Services | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill impairment | $ 0 |
Intangible Assets Acquired Eith
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 386,130 | $ 391,513 |
Accumulated amortization | 314,081 | 292,911 |
Net | 72,049 | 98,601 |
Customer-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 310,277 | 319,035 |
Accumulated amortization | 259,460 | 247,463 |
Net | 50,817 | 71,572 |
Marketing-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 42,587 | 42,749 |
Accumulated amortization | 29,277 | 27,021 |
Net | 13,310 | 15,728 |
Other Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 33,266 | 29,729 |
Accumulated amortization | 25,344 | 18,427 |
Net | $ 7,922 | $ 11,301 |
Estimated Amortization Schedule
Estimated Amortization Schedule of Intangible Assets for Future Periods (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 24,397 | |
2,018 | 18,194 | |
2,019 | 13,084 | |
2,020 | 9,289 | |
2021 and beyond | 7,085 | |
Net | $ 72,049 | $ 98,601 |
Other Assets (Detail)
Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Customer acquisition cost | $ 30,996 | $ 13,458 |
Advance income and non-income taxes | 60,203 | 50,123 |
Deferred transition costs | 74,462 | 56,759 |
Deposits | 29,853 | 24,107 |
Derivative instruments | 20,657 | 12,096 |
Prepaid expenses | 3,179 | 4,435 |
Accounts receivable due after one year | 3,272 | 8,348 |
Others | 19,706 | 10,679 |
Other assets | $ 242,328 | $ 180,005 |
Future Minimum Lease Payments u
Future Minimum Lease Payments under Operating Lease Arrangements (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Leases [Abstract] | |
2,017 | $ 52,612 |
2,018 | 48,897 |
2,019 | 43,886 |
2,020 | 39,305 |
2,021 | 35,354 |
2022 and beyond | 115,921 |
Total minimum lease payments | $ 335,975 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Rent expenses | $ 50,827 | $ 50,342 | $ 57,178 |
Rental expense including effect of reclassification of foreign exchange (gains) losses | $ 598 | $ 2,037 | $ 1,823 |
Accrued Expenses and Other Cu95
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued expenses | $ 163,400 | $ 161,672 |
Accrued employee cost | 179,360 | 158,054 |
Deferred transition revenue | 50,552 | 44,974 |
Statutory liabilities | 36,878 | 32,149 |
Retirement benefits | 17,616 | 17,930 |
Derivative instruments | 4,777 | 34,610 |
Advance from customers | 21,969 | 19,815 |
Earn-out consideration | 6,885 | 16,896 |
Other liabilities | 15,461 | 12,210 |
Capital lease obligations | 1,349 | 1,328 |
Accrued expenses and other current liabilities, net | $ 498,247 | $ 499,638 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 30, 2012 | |
Debt Instrument [Line Items] | ||||
Extinguishment of outstanding term loan | $ 663,188,000 | |||
Acceleration amortization of debt issuance cost | $ 10,050,000 | |||
Margin over LIBOR | 1.50% | 1.50% | 1.50% | |
LIBOR floor rate | 0.75% | |||
Term loan amounts outstanding | $ 737,333,000 | $ 776,466,000 | ||
Debt amortization expense | 2,667,000 | $ 3,534,000 | ||
Principal amount of term loan | $ 10,000,000 | |||
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% | |||
Term Loan Credit Facility | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 800,000,000 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 350,000,000 | $ 250,000,000 | ||
Acceleration amortization of debt issuance cost | 65,000 | |||
Revolving Credit Facility | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 350,000,000 |
Maturity Profile of Term Loan N
Maturity Profile of Term Loan Net of Debt Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Long-Term Debt | ||
2,017 | $ 39,181 | |
2,018 | 39,226 | |
2,019 | 39,272 | |
2,020 | 619,654 | |
Total | $ 737,333 | $ 776,466 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Dec. 31, 2016 | 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 | $ 15,382,000 | $ 15,781,000 | ||||
Utilization of credit facility for non fund-based usage | 10,980,000 | 10,301,000 | ||||
Credit facility, amount utilized | 160,978,000 | 22,947,000 | ||||
Short-term borrowings | $ 160,000,000 | $ 21,500,000 | ||||
Revolving credit facility, expiration month and year | 2020-06 | |||||
Margin over LIBOR | 1.50% | 1.50% | 1.50% | |||
Percentage of commitment fee | 0.25% | 0.25% | ||||
Line of credit covenant condition | The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. | |||||
Morgan Stanley Senior Funding, Inc | ||||||
Line Of Credit Facility [Line Items] | ||||||
Short-term borrowings | $ 737,500,000 | $ 672,500,000 | ||||
Short term borrowings fixed interest rate | 2.00% | |||||
Debt issuance cost | $ 1,045,000 | |||||
Interest expense | 235,000 | |||||
Revolving Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit facility, maximum borrowing capacity | 350,000,000 | $ 250,000,000 | ||||
Non-Fund-Based Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit facility, amount utilized | $ 978,000 | $ 1,447,000 | ||||
Fund-Based Credit Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Margin over LIBOR | 1.50% | 1.50% |
Other Liabilities (Detail)
Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Accrued employee cost | $ 3,976 | $ 6,901 |
Deferred transition revenue | 72,560 | 66,737 |
Retirement benefits | 39,020 | 29,689 |
Derivative instruments | 12,576 | 25,010 |
Amount received from GE under indemnification arrangement, pending adjustment | 3,159 | 3,549 |
Advance from customers | 2,371 | 4,485 |
Earn-out consideration | 15,550 | 5,924 |
Others | 11,078 | 10,729 |
Capital lease obligations | 2,500 | 2,204 |
Other Liabilities | $ 162,790 | $ 155,228 |
Funded Status of Defined Benefi
Funded Status of Defined Benefit Plans and Amount Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Projected benefit obligation at the beginning of the year | $ 35,617 | $ 36,445 | |
Service cost | 5,661 | 5,578 | $ 4,721 |
Actuarial loss (gain) | 6,749 | (3,459) | |
Interest cost | 2,585 | 2,629 | 2,410 |
Liabilities assumed on acquisition | 693 | ||
Benefits paid | (4,967) | (3,846) | |
Effect of exchange rate changes | (1,055) | (1,730) | |
Projected benefit obligation at the end of the year | 45,283 | 35,617 | 36,445 |
Fair value of plan assets at the beginning of the year | 28,549 | 29,721 | |
Employer contributions | 5,776 | 1,283 | |
Actual gain on plan assets | 1,777 | 2,465 | |
Assets assumed on acquisition | 170 | ||
Benefits paid | (4,897) | (3,763) | |
Effect of exchange rate changes | (504) | (1,157) | |
Fair value of plan assets at the end of the year | $ 30,871 | $ 28,549 | $ 29,721 |
Amounts Included in Other Compr
Amounts Included in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation And Retirement Disclosure [Abstract] | ||
Net actuarial loss | $ (8,979) | $ (3,051) |
Deferred tax assets | 2,759 | 874 |
Other comprehensive income (loss), net | $ (6,220) | $ (2,177) |
Changes in Other Comprehensive
Changes in Other Comprehensive Income (Loss) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Net actuarial loss | $ (7,141) |
Amortization of net actuarial loss | (75) |
Deferred income taxes | 1,885 |
Effect of exchange rate changes | 1,289 |
Other comprehensive income (loss), net | $ (4,042) |
Net Defined Benefit Plan Costs
Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Service cost | $ 5,661 | $ 5,578 | $ 4,721 |
Interest cost | 2,585 | 2,629 | 2,410 |
Amortization of actuarial loss | (113) | 330 | 419 |
Expected return on plan assets | (2,043) | (2,154) | (1,719) |
Net defined benefit plan costs | $ 6,090 | $ 6,383 | $ 5,831 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Amount in other comprehensive loss expected to be recognized as component of net periodic benefit cost over next fiscal year | $ 758 |
Benefit Obligations Of Philippines Plan | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expectation of the average long term rate of return expected, years | 15 years |
Benefit Obligations Of Philippines Plan | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Expectation of the average long term rate of return expected, years | 20 years |
Weighted Average Assumptions us
Weighted Average Assumptions used to Determine Benefit Obligations, Gratuity Plan (Detail) - Benefit Obligations Of Gratuity Plan | Dec. 31, 2016 | Dec. 31, 2015 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 7.10% | 8.30% |
Rate of increase in compensation per annum | 5.20% | 5.20% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 7.50% | 8.45% |
Rate of increase in compensation per annum | 11.00% | 11.00% |
Weighted Average Assumptions106
Weighted Average Assumptions used to Determine Plan Costs, Gratuity Plan (Detail) - Gratuity Plan Costs | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on plan assets per annum | 7.50% | 8.50% | 8.50% |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 8.30% | 8.50% | 9.50% |
Rate of increase in compensation per annum | 5.20% | 5.20% | 5.20% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 8.45% | 8.55% | 9.55% |
Rate of increase in compensation per annum | 11.00% | 11.00% | 11.00% |
Weighted Average Assumptions107
Weighted Average Assumptions used to Determine Benefit Obligations, Mexican Plan (Detail) - Benefit Obligations Of The Mexican Plan | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 6.80% | 6.50% |
Rate of increase in compensation per annum | 5.50% | 5.50% |
Weighted Average Assumptions108
Weighted Average Assumptions used to Determine Plan Costs, Mexico Plan (Detail) - Mexican Plan Costs | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 6.50% | 6.50% | 6.50% |
Rate of increase in compensation per annum | 5.50% | 5.50% | 5.50% |
Expected long-term rate of return on plan assets per annum | 0.00% | 0.00% | 0.00% |
Weighted Average Assumptions109
Weighted Average Assumptions used to Determine Benefit Obligations, Japan Plans (Detail) - Benefit Obligations Of Japan Plan | Dec. 31, 2016 | Dec. 31, 2015 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.08% | 0.24% |
Rate of increase in compensation per annum | 0.00% | 0.00% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.30% | 1.30% |
Rate of increase in compensation per annum | 3.55% | 3.55% |
Weighted Average Assumptions110
Weighted Average Assumptions used to Determine Plan Costs, Japan Plans (Detail) - Japan Plan Costs | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of increase in compensation per annum | 0.00% | ||
Expected long-term rate of return on plan assets per annum | 2.69% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.24% | 0.20% | 0.50% |
Rate of increase in compensation per annum | 0.00% | 0.00% | |
Expected long-term rate of return on plan assets per annum | 0.00% | 2.69% | |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.30% | 1.30% | 1.44% |
Rate of increase in compensation per annum | 3.55% | 3.55% | |
Expected long-term rate of return on plan assets per annum | 3.77% | 3.44% |
Fair Value of Plan Assets (Deta
Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | $ 30,871 | $ 28,549 | $ 29,721 | |
Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 10,001 | 7,214 | ||
Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 20,870 | 21,335 | ||
Cash | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 4,809 | 2,460 | ||
Cash | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 4,809 | 2,460 | ||
Fixed Income Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 23,659 | 23,190 | |
Fixed Income Securities | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 3,001 | 3,520 | |
Fixed Income Securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 20,658 | 19,670 | |
Other Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | 2,403 | 2,899 | |
Other Securities | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | 2,191 | 1,234 | |
Other Securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | $ 212 | $ 1,665 | |
[1] | Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds | |||
[2] | Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. |
Fair Value of Plan Assets (Pare
Fair Value of Plan Assets (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of investment in funds | 100.00% | 100.00% |
Expected Benefit Plan Payments
Expected Benefit Plan Payments Reflecting Expected Future Service (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Compensation And Retirement Disclosure [Abstract] | |
2,017 | $ 6,577 |
2,018 | 6,654 |
2,019 | 7,013 |
2,020 | 7,819 |
2,021 | 8,268 |
2022 - 2026 | 38,886 |
Defined benefit plan expected future benefit payments | $ 75,217 |
Amounts Contributed to Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | $ 56,242 | $ 47,717 | $ 43,071 |
India | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 19,074 | 15,915 | 15,272 |
U.S. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 10,379 | 8,148 | 5,565 |
U.K. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 6,593 | 4,453 | 3,361 |
China | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 15,512 | 14,511 | 14,518 |
Other Regions | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | $ 4,684 | $ 4,690 | $ 4,355 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Apr. 11, 2011 | Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock based compensation cost | $ 24,686,000 | $ 24,684,000 | $ 27,773,000 | ||||||
Tax benefit recognized in relation to stock based compensation | $ 6,446,000 | 6,125,000 | 6,366,000 | ||||||
Options granted, contractual period, years | 10 years | ||||||||
Cash received from the exercise of stock option | $ 14,896,000 | 13,564,000 | 16,051,000 | ||||||
Cash tax benefit realized from the exercise of stock option | 1,548,000 | 6,982,000 | 761,000 | ||||||
Excess tax benefit on stock-based compensation | 1,004,000 | $ 6,560,000 | $ 0 | ||||||
Unrecognized stock-based compensation cost for options | $ 12,683,000 | ||||||||
Employee Stock Option | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Weighted average remaining requisite vesting period | 2 years 6 months | ||||||||
Restricted Share Units (RSUs) | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Weighted average remaining requisite vesting period | 2 years 7 months 6 days | ||||||||
Vested RSU against which shares to be issued | 4,533 | 61,057 | |||||||
Net settlement on vesting of restricted share units, shares | 2,059 | 29,719 | 199,949 | 285,706 | |||||
Minimum statutory withholding taxes, Shares | 681 | ||||||||
Unrecognized stock-based compensation cost | $ 1,520,000 | ||||||||
Shares to be issued on vested awards other than options | 86,517 | 53,546 | 92,692 | ||||||
Outstanding number of shares (Units) | 117,905 | 157,390 | 488,418 | 871,772 | |||||
Restricted Share Units (RSUs) | Jan 2015 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Net settlement on vesting of restricted share units, shares | 59,827 | ||||||||
Restricted Share Units (RSUs) | April, 2013 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vested RSU against which shares to be issued | 48,819 | ||||||||
Restricted Share Units (RSUs) | January, 2014 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vested RSU against which shares to be issued | 44,286 | ||||||||
Performance Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Weighted average remaining requisite vesting period | 1 year | ||||||||
Unrecognized stock-based compensation cost | $ 8,947,000 | ||||||||
Outstanding number of shares (Units) | 3,772,128 | 2,499,322 | 1,292,750 | 3,913,733 | |||||
Performance Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Minimum statutory withholding taxes, Shares | 138,035 | ||||||||
Performance Units | Grant Date 2016 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Outstanding number of shares (Units) | 1,452,424 | ||||||||
Performance Units | Jan 2015 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Shares to be issued on vested awards other than options | 1,329,270 | ||||||||
Performance Units | January, 2014 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Shares to be issued on vested awards other than options | 231,029 | ||||||||
Employee Stock Purchase Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Percentage of fair value per share allowed to eligible employees to purchase through payroll deductions | 90.00% | ||||||||
Maximum percentage of employee's base salary allowed to be purchased | 15.00% | ||||||||
Maximum dollar amount of common shares allowed to be purchased | $ 25,000 | ||||||||
Common shares reserved for issuance | 4,200,000 | ||||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 146,685 | 121,485 | 151,461 | ||||||
Compensation expense for ESPP | $ 428,000 | $ 292,000 | $ 292,000 | ||||||
Minimum | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Award, vesting period, years | 4 years | ||||||||
Minimum | Restricted Share Units (RSUs) | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Award, vesting period, years | 3 months | ||||||||
Minimum | Performance Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Award, vesting period, years | 6 months | ||||||||
Maximum | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Award, vesting period, years | 5 years | ||||||||
Maximum | Restricted Share Units (RSUs) | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Award, vesting period, years | 4 years | ||||||||
Maximum | Performance Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Award, vesting period, years | 3 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 | 23,858,823 | |||||||
2005 Omnibus Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Amended Omnibus Plan, increase in number of common shares authorized for issuance | 495,915 | ||||||||
2005 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of common shares authorized for issuance | 12,706,665 | ||||||||
2006 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of common shares authorized for issuance | 4,942,369 | ||||||||
2007 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of common shares authorized for issuance | 16,733,250 |
Significant Assumptions used in
Significant Assumptions used in Determination of Fair Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Expected life (in months) | 84 months | 84 months | 84 months |
Risk-free rate of interest for expected life | 1.99% | ||
Risk free rate of interest for expected life, minimum | 1.42% | 2.18% | |
Risk free rate of interest for expected life, maximum | 1.56% | 2.29% | |
Volatility | 34.97% | ||
Volatility, minimum | 25.60% | 37.27% | |
Volatility, maximum | 27.22% | 38.34% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Shares arising out of options | ||||||
Outstanding, shares arising out of options, beginning balance | 5,986,845 | 7,371,727 | 11,102,163 | |||
Granted, shares arising out of options | 860,000 | 170,000 | 520,000 | |||
Forfeited, shares arising out of options | (145,000) | (125,000) | (250,673) | |||
Expired, shares arising out of options | (1,277) | (27,228) | ||||
Exercised, shares arising out of options | (994,155) | (1,428,605) | (3,972,535) | [1] | ||
Outstanding, shares arising out of options, ending balance | 5,707,690 | 5,986,845 | 7,371,727 | 11,102,163 | ||
Vested and expected to vest thereafter, shares arising out of options | [2] | 5,457,701 | 5,754,969 | 7,073,004 | ||
Vested and exercisable, shares arising out of options | 2,746,191 | 2,183,846 | 3,542,821 | |||
Weighted average grant-date fair value of options granted during the period | $ 8.50 | $ 9.15 | $ 7.54 | |||
Weighted average exercise price | ||||||
Outstanding weighted average exercise price, beginning balance | 16.99 | 15.44 | 12.40 | |||
Granted, weighted average exercise price | 26.80 | 22.77 | 17.54 | |||
Forfeited, weighted average exercise price | 17.77 | 19.35 | 19.20 | |||
Expired, weighted average exercise price | 14.32 | 12.32 | ||||
Exercised, weighted average exercise price | 14.98 | 9.49 | 7 | [1] | ||
Outstanding weighted average exercise price, ending balance | 18.65 | 16.99 | 15.44 | $ 12.40 | ||
Vested and expected to vest thereafter, weighted average exercise price | [2] | 18.42 | 16.76 | 15.19 | ||
Vested and exercisable, weighted average exercise price | $ 15.62 | $ 12.67 | $ 11.37 | |||
Weighted average remaining contractual life (years) | ||||||
Outstanding weighted average remaining contractual life (years) | 5 years 9 months 18 days | 5 years 9 months 18 days | 5 years 10 months 24 days | 5 years 2 months 12 days | ||
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [2] | 5 years 9 months 18 days | 5 years 9 months 18 days | 5 years 10 months 24 days | ||
Vested and exercisable, weighted average remaining contractual life (years) | 4 years | 2 years 8 months 12 days | 3 years 1 month 6 days | |||
Aggregate intrinsic value | ||||||
Exercised, aggregate intrinsic value | $ 9,301 | $ 22,122 | $ 47,399 | [1] | ||
Outstanding aggregate intrinsic value, ending balance | 34,641 | 48,661 | 27,886 | |||
Vested and expected to vest thereafter, aggregate intrinsic value | [2] | 34,150 | 47,325 | 27,755 | ||
Vested and exercisable, aggregate intrinsic value | $ 23,960 | $ 26,892 | $ 26,781 | |||
[1] | 2,138,601 of these options were net settled upon exercise by issuing 1,485,826 shares (net of minimum statutory withholding taxes). | |||||
[2] | Options expected to vest reflect an estimated forfeiture rate. |
Summary of Stock Option Acti118
Summary of Stock Option Activity (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Vested stock options against which shares to be issued | 2,138,601 |
Stock options settled on vesting by issuing shares (net of minimum tax withholding) | 1,485,826 |
Summary of Restricted Share Uni
Summary of Restricted Share Units Granted (Detail) - Restricted Share Units (RSUs) - $ / shares | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Number of Restricted Share Units | |||||||
Outstanding number of shares (Units), beginning balance | 157,390 | 488,418 | 871,772 | ||||
Granted, number of shares (Units) | 95,553 | 53,546 | 227,248 | ||||
Vested, number of shares (Units) | (133,903) | [1] | (351,338) | [2] | (511,513) | [3] | |
Forfeited, number of shares (Units) | (1,135) | (33,236) | (99,089) | ||||
Outstanding number of shares (Units), ending balance | 117,905 | 157,390 | 488,418 | ||||
Expected to vest, number of shares (Units) | [4] | 107,366 | 147,226 | 451,721 | |||
Weighted Average Grant Date Fair Value | |||||||
Outstanding weighted average grant date fair value, beginning balance | $ 17.67 | $ 15.36 | $ 13.96 | ||||
Granted, weighted average grant date fair value | 25.49 | 20.88 | 16.58 | ||||
Vested, weighted average grant date fair value | 20.66 | [1] | 15.29 | [2] | 13.83 | [3] | |
Forfeited, weighted average grant date fair value | 14.18 | 14 | 13.77 | ||||
Outstanding weighted average grant date fair value, ending balance | $ 20.65 | $ 17.67 | $ 15.36 | ||||
[1] | Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016, shares in respect of which will be issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. | ||||||
[2] | Vested RSUs were net settled by issuing 199,949 shares (net of minimum statutory tax withholding). 53,546 RSUs vested in the year ended December 31, 2015, shares in respect of which will be issuable in 2017 after withholding shares to the extent of minimum statutory withholding taxes. | ||||||
[3] | 418,821 of these RSUs were net settled upon vesting by issuing 285,706 shares (net of minimum statutory withholding taxes). 92,692 RSUs vested in the year ended December 31, 2014, 91,963 shares in respect of which were issued in 2016 after withholding shares to the extent of minimum statutory withholding taxes. | ||||||
[4] | RSUs expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share 120
Summary of Restricted Share Units Granted (Parenthetical) (Detail) - Restricted Share Units (RSUs) - shares | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
RSUs net settled on vesting | 418,821 | |||
Net settlement on vesting of restricted share units, shares | 2,059 | 29,719 | 199,949 | 285,706 |
Shares to be issued on vested awards other than options | 86,517 | 53,546 | 92,692 | |
January, 2014 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vested RSU issued during the period | 91,963 |
Summary of Performance Units Ac
Summary of Performance Units Activity (Detail) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Number of Restricted Share Units | ||||||
Adjustment due to achievement of higher than target performance goals | 139,930 | |||||
Performance Units | ||||||
Number of Restricted Share Units | ||||||
Outstanding number of shares (Units), beginning balance | 2,499,322 | 1,292,750 | 3,913,733 | |||
Granted, number of shares (Units) | 1,518,374 | 1,375,650 | 1,337,750 | |||
Vested, number of shares (Units) | (855) | [1] | (1,469,200) | [2] | ||
Forfeited, number of shares (Units) | (252,842) | (136,216) | (2,629,463) | [3] | ||
Adjustment due to achievement of higher than target performance goals | [4] | 139,930 | ||||
Outstanding number of shares (Units), ending balance | 3,772,128 | 2,499,322 | 1,292,750 | |||
Expected to vest, number of shares (Units) | [5] | 2,226,489 | 2,184,906 | 1,153,277 | ||
Adjustment due to achievement of lower than target performance | [6] | (32,007) | ||||
Adjustment upon final determination of level of performance goal achievement | [7] | 7,274 | ||||
Weighted Average Grant Date Fair Value | ||||||
Outstanding weighted average grant date fair value, beginning balance | $ 19.95 | $ 16.78 | $ 16.44 | |||
Granted, weighted average grant date fair value | 27.93 | 22.72 | 16.78 | |||
Vested, weighted average grant date fair value | 16.78 | [1] | 14.50 | [2] | ||
Forfeited, weighted average grant date fair value | 21.88 | 17.82 | 17.30 | [3] | ||
Adjustment due to achievement of higher than target performance goals | [4] | 12.04 | ||||
Adjustment due to achievement of lower than maximum performance goals | [6] | 20.45 | ||||
Outstanding weighted average grant date fair value, ending balance | 23.04 | 19.95 | 16.78 | |||
Adjustment due to achievement of lower than maximum performance goals | [6] | 20.45 | ||||
Outstanding weighted average grant date fair value, ending balance | 23.04 | $ 19.95 | $ 16.78 | |||
Adjustment upon final determination of level of performance goal achievement | [7] | $ 22.72 | ||||
Maximum shares eligible to receive | ||||||
Outstanding maximum shares eligible to receive, beginning balance | 2,499,322 | 2,648,626 | 6,149,018 | |||
Granted, maximum shares eligible to receive | 3,343,335 | 2,965,475 | 2,729,125 | |||
Vested, maximum shares eligible to receive | (855) | [1] | (1,469,183) | [2] | ||
Forfeited, maximum shares eligible to receive | (325,817) | (156,194) | (2,664,980) | [3] | ||
Adjustment due to achievement of lower than maximum performance | (2,957,730) | [8] | (2,095,354) | [9] | ||
Outstanding maximum shares eligible to receive, ending balance | 5,524,114 | 2,499,322 | 2,648,626 | |||
Adjustment upon final determination of level of performance goal achievement | [7] | 7,274 | ||||
[1] | Vested PUs were net settled upon vesting by issuing 590 shares (net of minimum statutory tax withholding). | |||||
[2] | Vested PUs as of December 31, 2014 include 775,904 shares issued in 2014 with respect to grants made in 2011 after withholding shares to the extent of the minimum statutory withholding taxes. Vested PUs as of December 31, 2014 also include 1,329,270 shares underlying PUs granted in March 2012 based on the compensation committee’s certification of the achievement of the performance goals for the performance period based on the Company’s audited financial statements. Shares in respect of such PUs were issued in January 2015 (845,524 shares after withholding shares to the extent of the minimum statutory withholding taxes). | |||||
[3] | Includes 251,427 shares underlying PUs granted in May 2011, 1,244,507 shares underlying PUs granted in March 2013 and 630,000 shares underlying PUs granted in May 2013, all of which were forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. | |||||
[4] | Represents 139,930 additional shares issued in 2014 (included in note (b) above) for PUs granted in 2011. | |||||
[5] | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | |||||
[6] | Represents a 5.2% to 6.7% reduction, depending on the targets under the PU award granted, in the number of target shares as a result of achievement of lower-than-target performance for the PUs granted in 2015, partially offset by a 0.8% to 6.6% increase in the number of target shares as a result of achievement of higher-than-target performance for the PUs granted in 2014. | |||||
[7] | (i)Represents an adjustment made in March 2016 to the number of shares underlying the PUs granted in 2015 upon certification of the level of achievement of the performance targets for such awards. | |||||
[8] | Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2015 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2014 based on the certified level of achievement of the performance goals. | |||||
[9] | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest with respect to PUs granted in March 2011 and June 2011, respectively, as a result of the compensation committee’s certification of the level of achievement of the performance conditions based on the Company’s audited financial statements. Also includes a reduction of 616,568 shares for grants made in March 2013, 985,500 shares for grants made in May 2013 and 121,000 shares for grants made in May 2011, due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. |
Summary of Performance Units122
Summary of Performance Units Activity (Parenthetical) (Detail) - shares | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued, net of minimum statutory withholding taxes | 590 | ||||||
Adjustment due to achievement of higher than target performance goals | 139,930 | ||||||
Performance Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued, net of minimum statutory withholding taxes | 845,524 | ||||||
Performance Units | Jan 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares to be issued on vested awards other than options | 1,329,270 | ||||||
Performance Units | Grant Date March 2011 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Adjustment due to achievement of lower than maximum performance goals | 333,002 | ||||||
Performance Units | Grant Date March 2011 | Grants in 2011 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares to be issued on vested awards other than options | 775,904 | ||||||
Performance Units | May 2011 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Forfeited, number of shares (Units) | 251,427 | ||||||
Adjustment due to achievement of lower than maximum performance goals | 121,000 | ||||||
Performance Units | March 2013 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Forfeited, number of shares (Units) | 1,244,507 | ||||||
Adjustment due to achievement of lower than maximum performance goals | 616,568 | ||||||
Performance Units | May 2013 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Forfeited, number of shares (Units) | 630,000 | ||||||
Adjustment due to achievement of lower than maximum performance goals | 985,500 | ||||||
Performance Units | Grant Date June 2011 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Adjustment due to achievement of lower than maximum performance goals | 39,285 | ||||||
Performance Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Adjustment due to achievement of higher than target performance goals | [1] | 139,930 | |||||
Forfeited, number of shares (Units) | 252,842 | 136,216 | 2,629,463 | [2] | |||
Adjustment due to achievement of lower than maximum performance goals | 2,957,730 | [3] | 2,095,354 | [4] | |||
Performance Units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Addition due to achievement of higher than target performance, percentage | 5.20% | 0.80% | |||||
Performance Units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Addition due to achievement of higher than target performance, percentage | 6.70% | 6.60% | |||||
[1] | Represents 139,930 additional shares issued in 2014 (included in note (b) above) for PUs granted in 2011. | ||||||
[2] | Includes 251,427 shares underlying PUs granted in May 2011, 1,244,507 shares underlying PUs granted in March 2013 and 630,000 shares underlying PUs granted in May 2013, all of which were forfeited due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. | ||||||
[3] | Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2015 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2014 based on the certified level of achievement of the performance goals. | ||||||
[4] | Represents a reduction of 333,002 and 39,285 of the maximum shares eligible to vest with respect to PUs granted in March 2011 and June 2011, respectively, as a result of the compensation committee’s certification of the level of achievement of the performance conditions based on the Company’s audited financial statements. Also includes a reduction of 616,568 shares for grants made in March 2013, 985,500 shares for grants made in May 2013 and 121,000 shares for grants made in May 2011, due to non-fulfillment of the performance conditions as certified by the compensation committee based on the Company’s audited financial statements. |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Feb. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 10, 2017 | Sep. 19, 2016 | Feb. 04, 2016 | Feb. 28, 2015 |
Class Of Stock [Line Items] | ||||||||
Common shares, authorized | 500,000,000 | 500,000,000 | ||||||
Common shares, par value | $ 0.01 | $ 0.01 | ||||||
Preferred shares, authorized | 250,000,000 | 250,000,000 | ||||||
Preferred shares, par value | $ 0.01 | $ 0.01 | ||||||
Common shares, issued | 198,794,052 | 211,472,312 | ||||||
Common shares, outstanding | 198,794,052 | 211,472,312 | ||||||
Preferred shares, issued | 0 | 0 | ||||||
Preferred shares, outstanding | 0 | 0 | ||||||
Common stock voting right | Holders of common shares are entitled to one vote per share | |||||||
Stock repurchase authorized amount | $ 750,000,000 | $ 250,000,000 | ||||||
Additional stock repurchase authorized amount | $ 250,000,000 | $ 250,000,000 | ||||||
Shares repurchased and retired (in shares) | 13,940,782 | 9,867,873 | ||||||
Common stock shares repurchased price per share | $ 24.76 | $ 23 | ||||||
Aggregate amount of common stock shares repurchased | $ 345,200,000 | $ 226,917,000 | $ 302,625,000 | |||||
Expenses related to stock purchases | $ 279,000 | $ 197,000 | $ 2,543,000 | |||||
Subsequent Event | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock repurchase authorized amount | $ 1,250,000,000 | |||||||
Additional stock repurchase authorized amount | 500,000,000 | |||||||
Shares repurchased and retired (in shares) | 808,293 | |||||||
Aggregate amount of common stock shares repurchased | $ 19,783,000 | |||||||
Subsequent Event | Maximum | ||||||||
Class Of Stock [Line Items] | ||||||||
Additional stock repurchase authorized amount | $ 500,000,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 781,215 | 2,821,000 | 3,758,000 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share (Abstract) | |||||||||||
Net income available to Genpact Limited common shareholders | $ 269,684 | $ 239,817 | $ 192,002 | ||||||||
Weighted average number of common shares used in computing basic earnings per common share | 200,341,922 | 206,146,007 | 210,178,050 | 210,780,165 | 212,697,001 | 215,311,322 | 218,525,149 | 219,892,695 | 206,861,536 | 216,606,542 | 220,847,098 |
Dilutive effect of stock-based awards | 3,264,487 | 2,538,502 | 4,321,567 | ||||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 203,431,310 | 209,376,683 | 213,803,134 | 213,892,964 | 215,675,065 | 217,595,704 | 220,962,306 | 222,347,101 | 210,126,023 | 219,145,044 | 225,168,665 |
Basic | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.28 | $ 0.30 | $ 0.32 | $ 0.29 | $ 0.20 | $ 1.30 | $ 1.11 | $ 0.87 |
Diluted | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.27 | $ 0.30 | $ 0.31 | $ 0.28 | $ 0.20 | $ 1.28 | $ 1.09 | $ 0.85 |
Cost of Revenue (Detail)
Cost of Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Component Of Operating Other Cost And Expense [Line Items] | |||
Cost of revenue | $ 1,554,707 | $ 1,493,547 | $ 1,378,088 |
Personnel expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Cost of revenue | 1,061,501 | 1,013,209 | 943,105 |
Operational expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Cost of revenue | 446,922 | 432,535 | 390,441 |
Depreciation and amortization | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Cost of revenue | $ 46,284 | $ 47,803 | $ 44,542 |
Selling, General and Adminis127
Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | $ 653,029 | $ 608,114 | $ 585,646 |
Personnel expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | 469,956 | 430,088 | 419,299 |
Operational expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | 174,060 | 169,042 | 157,755 |
Depreciation and amortization | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | $ 9,013 | $ 8,984 | $ 8,592 |
Other Operating Income (Expense
Other Operating Income (Expense), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income And Expenses [Abstract] | |||
Other operating (income) expense | $ (1,266) | $ (2,515) | $ (3,163) |
Intangible assets write-down | 11,195 | 10,714 | |
Change in fair value of earn-out consideration, deferred consideration (relating to business acquisitions) | (14,869) | (11,521) | (3,707) |
Other operating (income) expense, net | $ (4,940) | $ (3,322) | $ (6,870) |
Interest Income (Expense), N129
Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income And Expenses [Abstract] | |||
Interest income | $ 7,247 | $ 8,676 | $ 4,405 |
Interest expense | (23,431) | (29,828) | (33,800) |
Loss on extinguishment of debt | (10,115) | ||
Interest income (expense), net | $ (16,184) | $ (31,267) | $ (29,395) |
Income Tax Expense (Benefit) (D
Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 62,098 | $ 61,937 | $ 57,419 |
Other Comprehensive Income: | |||
Unrealized gains (losses) on cash flow hedges | 23,809 | 13,816 | 48,966 |
Retirement benefits | (1,885) | 1,304 | (413) |
Additional paid-in capital: | |||
Excess tax benefit on stock-based compensation | 0 | $ (6,560) | $ 0 |
Retained earnings: | |||
Deferred tax assets recognized on early adoption of ASU 2016-09 | $ (24,912) |
Components of Income before Inc
Components of Income before Income Tax Expense from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic (U.S.) | $ 44,110 | $ 23,122 | $ 19,614 |
Foreign (Non-U.S.) | 285,535 | 278,632 | 229,976 |
Income before income tax expense | $ 329,645 | $ 301,754 | $ 249,590 |
Income Tax Expense (Benefit) At
Income Tax Expense (Benefit) Attributable to Income from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current taxes : | |||
Domestic (U.S. federal taxes) | $ 78 | $ 12,142 | $ 3,768 |
Domestic (U.S. state taxes) | 1,069 | 301 | 666 |
Foreign (Non-U.S.) | 30,497 | 68,207 | 65,237 |
Current Income Tax Expense (Benefit), Total | 31,644 | 80,650 | 69,671 |
Deferred taxes : | |||
Domestic (U.S. federal taxes) | 11,379 | (5,396) | 2,761 |
Domestic (U.S. state taxes) | (459) | 344 | (193) |
Foreign (Non-U.S.) | 19,534 | (13,661) | (14,820) |
Deferred Income Tax Expense (Benefit), Total | 30,454 | (18,713) | (12,252) |
Total income tax expense (benefit) | $ 62,098 | $ 61,937 | $ 57,419 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)Unit$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($) | |
Income Tax Disclosure [Line Items] | ||||
Statutory tax rates | 35.00% | 35.00% | 35.00% | |
Number of Special Economic Zone units held by Indian subsidiary eligible for tax holiday | Unit | 14 | |||
Deferred tax assets, valuation allowance | $ 14,746 | $ 20,091 | $ 21,094 | $ 24,654 |
Excess tax benefits relating to exercise of stock awards recorded through retained earnings | 24,912 | |||
Excess tax benefit on stock-based Compensation | 0 | 6,560 | 0 | |
Net operating loss carryforwards | 52,997 | 48,626 | ||
Net operating loss of subsidiary, carried forward | 143,029 | |||
Additional deferred tax assets on U.S. state and local tax loss carry-forwards | $ 6,295 | |||
Operating loss carry-forwards, expiration date, range start | 2,017 | |||
Operating loss carry-forwards, expiration date, range end | 2,035 | |||
Tax credit carry | $ 31,490 | |||
Undistributed earnings of foreign subsidiaries (non-Bermuda) | 795,398 | |||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries | 412,533 | |||
Cash and cash equivalents | 422,623 | 450,907 | 461,788 | $ 571,276 |
Cash held by foreign subsidiary | 148,158 | |||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries for which no tax will accrue on repatriation of retained earnings | 92,254 | |||
Cash and cash equivalents held by foreign subsidiaries | 172,121 | |||
Unrecognized tax benefits that would impact effective tax rate | 22,469 | 24,935 | 21,268 | |
Unrecognized tax benefits, interest on income taxes accrued | 3,856 | 4,223 | 3,417 | |
Unrecognized tax benefits, excluding exchange rate differences for interest recognized | (206) | 1,152 | 44 | |
Accrued penalties | 977 | $ 958 | $ 561 | |
Retained Earnings | ||||
Income Tax Disclosure [Line Items] | ||||
Repatriation of retained earnings | 35,902 | |||
Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carry | 31,490 | |||
Early Adoption of ASU 2016-09 | ||||
Income Tax Disclosure [Line Items] | ||||
Excess tax benefits relating to exercise of stock awards recorded through retained earnings | 24,912 | |||
Income tax expense attributable to continuing operations | 1,004 | |||
Foreign Subsidiary | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax assets, valuation allowance | 3,000 | |||
Operating loss carryforwards reversal of remaining valuation allowance | $ 3,377 | |||
Minimum | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, expiring date | March 31, 2022 | |||
Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, expiring date | March 31, 2029 | |||
Tax Holiday For First 5 Years | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 100.00% | |||
Tax Holiday from year 6 to year 10 | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 50.00% | |||
Tax Holiday from year 11 to year 15 | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 50.00% | |||
Basic Earnings Per Share | ||||
Income Tax Disclosure [Line Items] | ||||
Earnings per share effect of tax holiday | $ / shares | $ 0.19 | $ 0.18 | $ 0.16 | |
Diluted Earnings Per Share | ||||
Income Tax Disclosure [Line Items] | ||||
Earnings per share effect of tax holiday | $ / shares | $ 0.18 | $ 0.17 | $ 0.16 |
Income Tax Expense (Benefit) Co
Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income before income tax expense | $ 329,645 | $ 301,754 | $ 249,590 |
Statutory tax rates | 35.00% | 35.00% | 35.00% |
Computed expected income tax expense | $ 115,376 | $ 105,614 | $ 87,356 |
Increase (decrease) in income taxes resulting from: | |||
Foreign tax rate differential | (18,574) | (16,550) | (4,703) |
Tax benefit from tax holiday | (32,893) | (38,039) | (35,868) |
Non-deductible expenses | 2,295 | 1,884 | 3,789 |
Effect of change in tax rates | 353 | 1,436 | 176 |
Change in valuation allowance | (4,830) | (33) | (2,880) |
Unrecognized tax benefits | (627) | 6,272 | 1,423 |
Others | 998 | 1,353 | 8,126 |
Total income tax expense (benefit) | $ 62,098 | $ 61,937 | $ 57,419 |
Components of Deferred Tax Bala
Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets | ||||
Net operating loss carryforwards | $ 52,997 | $ 48,626 | ||
Accrued liabilities and other expenses | 19,840 | 16,680 | ||
Provision for doubtful receivables | 6,419 | 5,655 | ||
Property, plant and equipment | 3,445 | 4,538 | ||
Unrealized losses on cash flow hedges, net | 558 | 10,296 | ||
Share-based compensation | 19,054 | 14,253 | ||
Retirement benefits | 5,067 | 2,772 | ||
Deferred revenue | 44,892 | 39,547 | ||
Tax credit carryforwards | 34,509 | 52,993 | ||
Others | 8,876 | 9,173 | ||
Gross deferred tax assets | 195,657 | 204,533 | ||
Less: Valuation allowance | (14,746) | (20,091) | $ (21,094) | $ (24,654) |
Total deferred tax assets | 180,911 | 184,442 | ||
Deferred tax assets | 70,143 | 99,395 | ||
Deferred tax liabilities | ||||
Intangible assets | 13,519 | 20,987 | ||
Property, plant and equipment | 2,745 | 3,406 | ||
Deferred cost | 41,950 | 31,953 | ||
Investments in foreign subsidiaries not indefinitely reinvested | 29,546 | 23,097 | ||
Unrealized gains on cash flow hedges, net | 14,350 | |||
Others | 11,073 | 7,697 | ||
Total deferred tax liabilities | 113,183 | 87,140 | ||
Deferred tax liabilities | 2,415 | 2,093 | ||
Net deferred tax asset | $ 67,728 | $ 97,302 |
Change in Total Valuation Allow
Change in Total Valuation Allowance for Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Opening valuation allowance | $ 20,091 | $ 21,094 | $ 24,654 |
Reduction during the year | (7,299) | (3,499) | (8,662) |
Addition during the year | 1,954 | 2,496 | 5,102 |
Closing valuation allowance | $ 14,746 | $ 20,091 | $ 21,094 |
Remaining Tax Loss Carry Forwar
Remaining Tax Loss Carry Forwards Expiration (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
US - Federal | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $ 19,233 |
US - Federal | 2031 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 14,607 |
US - Federal | 2032 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 21 |
US - Federal | 2033 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 4,538 |
US - Federal | 2034 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 37 |
US - Federal | 2035 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 30 |
Europe | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 19,203 |
Europe | 2017 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 3 |
Europe | 2018 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 5 |
Europe | 2019 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 5 |
Europe | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 234 |
Europe | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,335 |
Europe | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,829 |
Europe | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 4,576 |
Europe | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 5,820 |
Europe | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 3,485 |
Europe | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 348 |
Europe | 2028 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 31 |
Europe | 2030 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 196 |
Europe | 2031 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 188 |
Europe | 2032 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 65 |
Europe | 2033 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 83 |
Others | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 19,145 |
Others | 2018 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 19 |
Others | 2019 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 67 |
Others | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 697 |
Others | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,790 |
Others | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 57 |
Others | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,133 |
Others | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 8,577 |
Others | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,379 |
Others | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,329 |
Others | 2037 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $ 1,097 |
Foreign Tax Credit Expiry Perio
Foreign Tax Credit Expiry Period (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit | $ 31,490 |
2,022 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit | 893 |
2,023 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit | 1,202 |
2,024 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit | 15,552 |
2,025 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit | 8,481 |
2,026 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit | $ 5,362 |
Activities Related to Unrecogni
Activities Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Uncertainties [Abstract] | |||
Beginning balance | $ 26,357 | $ 22,718 | $ 21,832 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 370 | 2,000 | 2,472 |
Decrease related to prior year tax positions | (1,506) | (1,002) | |
Decrease related to divestiture of business | (345) | ||
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (2,122) | (820) | (753) |
Increase related to current year tax positions, including recorded in acquisition accounting | 3,225 | 3,544 | 442 |
Decrease related to settlements with tax authorities | (2,000) | ||
Effect of exchange rate changes | (512) | (1,085) | (273) |
Ending balance | $ 23,467 | $ 26,357 | $ 22,718 |
Net Revenues for Service Type (
Net Revenues for Service Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 646,528 | $ 617,831 | $ 609,532 | $ 587,153 | $ 2,570,756 | $ 2,461,044 | $ 2,279,438 |
Business Process Outsourcing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 2,083,450 | 1,933,095 | 1,736,716 | ||||||||
IT Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 487,306 | $ 527,949 | $ 542,722 |
Revenues from Clients Based on
Revenues from Clients Based on Industry Serviced (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 646,528 | $ 617,831 | $ 609,532 | $ 587,153 | $ 2,570,756 | $ 2,461,044 | $ 2,279,438 |
Banking, Financial Services and Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 1,055,704 | 1,030,584 | 940,345 | ||||||||
Manufacturing including Pharmaceuticals and Medical Equipment Manufacturing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 958,779 | 878,570 | 796,872 | ||||||||
Technology, Healthcare and Other Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 556,273 | $ 551,890 | $ 542,221 |
Net Revenues from Geographic Ar
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 646,528 | $ 617,831 | $ 609,532 | $ 587,153 | $ 2,570,756 | $ 2,461,044 | $ 2,279,438 |
India | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 1,804,113 | 1,687,699 | 1,505,960 | ||||||||
Asia, other than India | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 249,839 | 238,529 | 232,349 | ||||||||
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | 282,434 | 304,879 | 302,515 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenues | $ 234,370 | $ 229,937 | $ 238,614 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Disclosure [Line Items] | |||
Percentage of consolidated revenue not exceeded by any customer | 10.00% | 10.00% | 10.00% |
General Electric Company | |||
Segment Reporting Disclosure [Line Items] | |||
Percentage of revenues | 16.00% | 19.00% | 20.00% |
Property, Plant and Equipmen144
Property, Plant and Equipment, Net by Geographic Areas (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 200,115 | $ 175,396 |
India | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 116,417 | 112,911 |
Asia, other than India | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 13,549 | 11,700 |
Americas | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 51,400 | 41,561 |
Europe | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 18,749 | $ 9,224 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Accounts receivable from related parties | $ 2,490 | $ 1,980 | |
Investment in equity affiliates | 4,800 | 6,677 | |
Affiliate of Significant Shareholder | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 335 | 326 | $ 285 |
Non-Consolidating Affiliates | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 8,077 | 7,826 | 5,580 |
Accounts receivable from related parties | 2,411 | 1,955 | |
Cost of revenue | 2,067 | 2,173 | 2,126 |
Selling, general and administrative expenses, net of recovery | 291 | 384 | $ 613 |
Investment in equity affiliates | 5,884 | 17,013 | |
Investment in equity affiliates | 4,800 | 6,677 | |
Cost reimbursements from non-consolidating affiliates | 1,162 | 2,077 | |
Non-Consolidating Affiliates | Accrued Expenses and Other Current Liabilities | |||
Related Party Transaction [Line Items] | |||
Investment in equity affiliates outstanding | 0 | 3,736 | |
Non-Consolidating Affiliates | Prepaid Expenses and Other Current Assets | |||
Related Party Transaction [Line Items] | |||
Reimbursements receivable | 488 | ||
Significant Shareholder of Company | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative expenses, net of recovery | 58 | $ 421 | |
Claim on Net Operating Losses under Consortium Relief | Other Liabilities | U.K. | |||
Related Party Transaction [Line Items] | |||
Claimed portion of net operating losses, outstanding | $ 3,291 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies [Line Items] | ||
Bank guarantees, outstanding | $ 0 | $ 11,748 |
Capital Addition Purchase Commitments | ||
Commitments And Contingencies [Line Items] | ||
Commitments and contingencies | $ 5,185 | $ 8,237 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total net revenues | $ 681,747 | $ 648,783 | $ 630,523 | $ 609,703 | $ 646,528 | $ 617,831 | $ 609,532 | $ 587,153 | $ 2,570,756 | $ 2,461,044 | $ 2,279,438 |
Gross profit | 276,075 | 256,351 | 246,768 | 236,855 | 252,591 | 242,001 | 243,228 | 229,677 | 1,016,049 | 967,497 | 901,350 |
Income from operations | 98,092 | 87,124 | 79,940 | 75,622 | 83,446 | 87,343 | 89,353 | 74,050 | 340,777 | 334,192 | 294,031 |
Income before equity method investment activity, net and income tax expense | 95,502 | 87,360 | 81,818 | 72,664 | 84,686 | 89,685 | 80,245 | 57,938 | 337,343 | 312,554 | 254,385 |
Net income (loss) | 76,878 | 68,045 | 64,349 | 58,276 | 64,413 | 68,050 | 62,701 | 44,653 | 267,547 | 239,817 | 192,171 |
Net income attributable to non-controlling interest/redeemable Non-controlling interest | 232 | 734 | 882 | 289 | (2,137) | 169 | |||||
Net income attributable to Genpact Limited common shareholders | $ 77,110 | $ 68,779 | $ 65,231 | $ 58,565 | $ 64,413 | $ 68,050 | $ 62,701 | $ 44,653 | $ 269,684 | $ 239,817 | $ 192,002 |
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||
Basic | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.28 | $ 0.30 | $ 0.32 | $ 0.29 | $ 0.20 | $ 1.30 | $ 1.11 | $ 0.87 |
Diluted | $ 0.38 | $ 0.33 | $ 0.31 | $ 0.27 | $ 0.30 | $ 0.31 | $ 0.28 | $ 0.20 | $ 1.28 | $ 1.09 | $ 0.85 |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||||||||||
Basic | 200,341,922 | 206,146,007 | 210,178,050 | 210,780,165 | 212,697,001 | 215,311,322 | 218,525,149 | 219,892,695 | 206,861,536 | 216,606,542 | 220,847,098 |
Diluted | 203,431,310 | 209,376,683 | 213,803,134 | 213,892,964 | 215,675,065 | 217,595,704 | 220,962,306 | 222,347,101 | 210,126,023 | 219,145,044 | 225,168,665 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Feb. 10, 2017 | Feb. 01, 2017 | Feb. 28, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 19, 2016 | Feb. 04, 2016 | Feb. 28, 2015 |
Subsequent Event [Line Items] | |||||||||
Additional stock repurchase authorized amount | $ 250,000,000 | $ 250,000,000 | |||||||
Stock repurchase authorized amount | $ 750,000,000 | $ 250,000,000 | |||||||
Shares repurchased and retired (in shares) | 13,940,782 | 9,867,873 | |||||||
Aggregate amount of common stock shares repurchased | $ 345,200,000 | $ 226,917,000 | $ 302,625,000 | ||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Additional stock repurchase authorized amount | $ 500,000,000 | ||||||||
Stock repurchase authorized amount | $ 1,250,000,000 | ||||||||
Shares repurchased and retired (in shares) | 808,293 | ||||||||
Common stock shares repurchased price per share | $ 24.48 | ||||||||
Aggregate amount of common stock shares repurchased | $ 19,783,000 | ||||||||
Common stock dividend per share | $ 0.24 | ||||||||
Common stock dividend payable date | Mar. 28, 2017 | ||||||||
Common stock dividend record date | Mar. 10, 2017 | ||||||||
Subsequent Event | Fiserv Solutions of Australia Pty Limited | |||||||||
Subsequent Event [Line Items] | |||||||||
Cash consideration to acquired certain assets and assumed certain liabilities | $ 32,150,000 | ||||||||
Subsequent Event | Regular Quarterly Cash Dividend | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock dividend per share | $ 0.06 |