Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | G | |
Entity Registrant Name | GENPACT LTD | |
Entity Central Index Key | 1,398,659 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 192,743,610 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 388,186 | $ 422,623 |
Accounts receivable, net | 602,871 | 615,265 |
Prepaid expenses and other current assets | 227,635 | 189,149 |
Total current assets | 1,218,692 | 1,227,037 |
Property, plant and equipment, net | 212,562 | 200,115 |
Deferred tax assets | 61,029 | 70,143 |
Investment in equity affiliates | 769 | 4,800 |
Intangible assets, net | 69,070 | 72,049 |
Goodwill | 1,097,329 | 1,069,408 |
Other assets | 252,279 | 242,328 |
Total assets | 2,911,730 | 2,885,880 |
Current liabilities | ||
Short-term borrowings | 15,000 | 160,000 |
Current portion of long-term debt | 39,192 | 39,181 |
Accounts payable | 9,086 | 9,768 |
Income taxes payable | 33,091 | 24,159 |
Accrued expenses and other current liabilities | 426,953 | 498,247 |
Total current liabilities | 523,322 | 731,355 |
Long-term debt, less current portion | 1,035,778 | 698,152 |
Deferred tax liabilities | 1,815 | 2,415 |
Other liabilities | 165,561 | 162,790 |
Total liabilities | 1,726,476 | 1,594,712 |
Redeemable non-controlling interest | 3,610 | 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, 198,794,052 and 192,727,001 issued and outstanding as of December 31, 2016 and March 31, 2017, respectively | 1,924 | 1,984 |
Additional paid-in capital | 1,347,265 | 1,384,468 |
Retained earnings | 219,776 | 358,121 |
Accumulated other comprehensive income (loss) | (387,321) | (457,925) |
Total equity | 1,181,644 | 1,286,648 |
Commitments and contingencies | ||
Total liabilities, redeemable non-controlling interest and equity | $ 2,911,730 | $ 2,885,880 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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 | 192,727,001 | 198,794,052 |
Common shares, outstanding | 192,727,001 | 198,794,052 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | [1] | |
Income Statement [Abstract] | |||
Net revenues | $ 622,995 | $ 609,703 | |
Cost of revenue | 383,337 | 372,848 | |
Gross profit | 239,658 | 236,855 | |
Operating expenses: | |||
Selling, general and administrative expenses | 160,858 | 160,149 | |
Amortization of acquired intangible assets | 7,242 | 6,145 | [2] |
Other operating (income) expense, net | (7,538) | (5,061) | |
Income from operations | 79,096 | 75,622 | |
Foreign exchange gains (losses), net | (4,913) | (998) | |
Interest income (expense), net | (5,493) | (2,838) | |
Other income (expense), net | 553 | 878 | |
Income before equity-method investment activity, net and income tax expense | 69,243 | 72,664 | |
Equity-method investment activity, net | (4,558) | (2,145) | [2] |
Income before income tax expense | 64,685 | 70,519 | |
Income tax expense | 12,245 | 12,014 | |
Net income | 52,440 | 58,505 | [2] |
Net loss (income) attributable to redeemable non-controlling interest | 898 | 289 | [2] |
Net income attributable to Genpact Limited shareholders | 53,338 | 58,794 | [2] |
Net income available to Genpact Limited common shareholders | $ 53,338 | $ 58,794 | |
Earnings per common share attributable to Genpact Limited common shareholders | |||
Basic | $ 0.27 | $ 0.28 | |
Diluted | $ 0.26 | $ 0.27 | |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||
Basic | 199,069,528 | 210,780,165 | |
Diluted | 202,655,937 | 213,892,964 | |
[1] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. | ||
[2] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Net Income (loss) | $ 52,440 | $ 58,505 | [1],[2] |
Other comprehensive income: | |||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 18,858 | 1,970 | |
Genpact Limited Shareholders | |||
Net Income (loss) | 53,338 | 58,794 | [3] |
Other comprehensive income: | |||
Currency translation adjustments | 51,627 | 5,217 | [3] |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 18,858 | 1,970 | [3] |
Retirement benefits, net of taxes | 119 | 153 | [3] |
Other comprehensive income (loss) | 70,604 | 7,340 | [3] |
Comprehensive income (loss) | 123,942 | 66,134 | [3] |
Redeemable non-controlling interest | |||
Net Income (loss) | (898) | (289) | [3] |
Other comprehensive income: | |||
Currency translation adjustments | (12) | ||
Other comprehensive income (loss) | (12) | ||
Comprehensive income (loss) | $ (910) | $ (289) | [3] |
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. | ||
[2] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. | ||
[3] | Net income for the three months ended March 31, 2016 has been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
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) | Total Equity | Redeemable non-controlling interest | ||||||
Beginning balance, value (in shares) at Dec. 31, 2015 | 211,472,312 | ||||||||||||
Beginning balance, value at Dec. 31, 2015 | $ 2,111 | $ 1,342,022 | [1] | $ 411,508 | [1] | $ (451,285) | $ 1,304,356 | ||||||
Issuance of common shares on exercise of options (in shares) | 248,316 | ||||||||||||
Issuance of common shares on exercise of options | $ 2 | 4,210 | [1] | 4,212 | |||||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 30,487 | ||||||||||||
Issuance of common shares under the employee stock purchase plan | 725 | [1] | 725 | ||||||||||
Net settlement on vesting of restricted share units | $ 1 | (50) | [1] | (49) | |||||||||
Net settlement on vesting of restricted share units, shares | 95,191 | ||||||||||||
Stock repurchased and retired | $ (14) | (33,003) | [1] | (33,017) | |||||||||
Stock repurchased and retired, shares | (1,356,199) | ||||||||||||
Deferred tax assets recognized on early adoption of ASU 2016-09 | 24,912 | [1] | 24,912 | ||||||||||
Expenses related to stock purchase | $ (27) | (27) | [1] | (27) | |||||||||
Stock-based compensation expense | 5,336 | [1] | 5,336 | ||||||||||
Acquisition of redeemable non- controlling interest | $ 3,910 | ||||||||||||
Comprehensive income: | |||||||||||||
Net income | $ 58,505 | [2],[3] | 58,794 | [1] | 58,794 | [4] | (289) | [4] | |||||
Other comprehensive income | [4] | 7,340 | |||||||||||
End balance, value (in shares) at Mar. 31, 2016 | 210,490,107 | ||||||||||||
End balance, value at Mar. 31, 2016 | $ 2,100 | 1,352,243 | [1] | 462,185 | [1] | (451,285) | 1,365,243 | 3,621 | |||||
Beginning balance, value (in shares) at Dec. 31, 2016 | 198,794,052 | 198,794,052 | |||||||||||
Beginning balance, value at Dec. 31, 2016 | $ 1,984 | 1,384,468 | 358,121 | (457,925) | 1,286,648 | 4,520 | |||||||
Issuance of common shares on exercise of options (in shares) | 455,835 | 455,835 | |||||||||||
Issuance of common shares on exercise of options | $ 5 | 6,540 | 6,545 | ||||||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 55,788 | ||||||||||||
Issuance of common shares under the employee stock purchase plan | $ 1 | 1,217 | 1,218 | ||||||||||
Net settlement on vesting of restricted share units | $ 1 | (1) | |||||||||||
Net settlement on vesting of restricted share units, shares | 76,865 | ||||||||||||
Net settlement on vesting of performance units, shares | 731,701 | 731,701 | |||||||||||
Net settlement on vesting of performance units | $ 7 | (9,946) | (9,939) | ||||||||||
Stock repurchased and retired | $ (74) | (40,000) | (179,710) | (219,784) | |||||||||
Stock repurchased and retired, shares | (7,387,240) | ||||||||||||
Expenses related to stock purchase | $ (16) | (16) | (16) | ||||||||||
Stock-based compensation expense | 4,986 | 4,986 | |||||||||||
Comprehensive income: | |||||||||||||
Net income | $ 52,440 | 53,338 | 53,338 | (898) | |||||||||
Other comprehensive income | 70,604 | 70,604 | (12) | ||||||||||
Dividend | (11,957) | (11,957) | |||||||||||
End balance, value (in shares) at Mar. 31, 2017 | 192,727,001 | 192,727,001 | |||||||||||
End balance, value at Mar. 31, 2017 | $ 1,924 | $ 1,347,265 | $ 219,776 | $ (387,321) | $ 1,181,644 | $ 3,610 | |||||||
[1] | Net income, additional paid-in capital and retained earnings for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. | ||||||||||||
[2] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. | ||||||||||||
[3] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. | ||||||||||||
[4] | Net income for the three months ended March 31, 2016 has been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Operating activities | ||||
Net income attributable to Genpact Limited shareholders | $ 53,338 | $ 58,794 | [1],[2] | |
Net income (loss) attributable to redeemable non-controlling interest | (898) | (289) | [1],[2] | |
Net income | 52,440 | 58,505 | [1],[2] | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||
Depreciation and amortization | 14,139 | 13,155 | [1] | |
Amortization of debt issuance costs | 375 | 385 | [1] | |
Amortization of acquired intangible assets | 7,242 | 6,145 | [1],[2] | |
Intangible assets write-down | [1] | 4,943 | ||
Reserve for doubtful receivables | [1] | 3,120 | ||
Unrealized loss on revaluation of foreign currency asset/liability | 8,757 | 354 | [1] | |
Equity-method investment activity, net | 4,558 | 2,145 | [1],[2] | |
Stock-based compensation expense | 4,986 | 5,336 | [1] | |
Deferred income taxes | (2,890) | (3,184) | [1] | |
Others, net | (4,301) | 63 | [1] | |
Change in operating assets and liabilities: | ||||
Decrease (increase) in accounts receivable | 19,649 | (17,697) | [1] | |
Increase in prepaid expenses, other current assets and other assets | (12,025) | (27,123) | [1] | |
Decrease in accounts payable | (928) | (70) | [1] | |
Decrease in accrued expenses, other current liabilities and other liabilities | (69,131) | (64,360) | [1] | |
Increase in income taxes payable | 8,157 | 8,660 | [1] | |
Net cash provided by (used for) operating activities | 31,028 | (9,623) | [1] | |
Investing activities | ||||
Purchase of property, plant and equipment | (19,698) | (25,495) | [1] | |
Proceeds from sale of property, plant and equipment | 389 | 132 | [1] | |
Investment in equity affiliates | (467) | (3,783) | [1] | |
Payment for business acquisitions, net of cash acquired | (9,237) | (2,339) | [1] | |
Net cash used for investing activities | (29,013) | (31,485) | [1] | |
Financing activities | ||||
Repayment of capital lease obligations | (494) | (454) | [1] | |
Payment of debt issuance costs | (1,481) | |||
Proceeds from long-term debt | 350,000 | |||
Repayment of long-term debt | (10,000) | (10,000) | [1] | |
Proceeds from short-term borrowings | 40,000 | 60,000 | [1] | |
Repayment of short-term borrowings | (185,000) | |||
Proceeds from issuance of common shares under stock-based compensation plans | 7,761 | 4,937 | [1] | |
Payment for net settlement of stock-based awards | (9,939) | (49) | [1] | |
Payment of earn-out/deferred consideration | (1,097) | (965) | [1] | |
Dividend paid | (11,957) | |||
Payment for stock purchased and retired | (219,784) | (33,017) | [1] | |
Payment for expenses related to stock purchase | (16) | (27) | [1] | |
Net cash provided by (used for) financing activities | (42,007) | 20,425 | [1] | |
Effect of exchange rate changes | 5,555 | (429) | [1] | |
Net increase (decrease) in cash and cash equivalents | (39,992) | (20,683) | [1] | |
Cash and cash equivalents at the beginning of the period | 422,623 | 450,907 | [1] | |
Cash and cash equivalents at the end of the period | 388,186 | 429,795 | [1] | |
Supplementary information | ||||
Cash paid during the period for interest | 5,324 | 3,968 | [1] | |
Cash paid during the period for income taxes | 16,426 | 23,229 | [1] | |
Property, plant and equipment acquired under capital lease obligations | $ 576 | $ 283 | [1] | |
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. | |||
[2] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Organization
Organization | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization The Company is a global professional services firm focused on delivering digital transformation for its clients. The Company’s Lean Digital SM approach integrates lean principles, design thinking, analytics and digital technologies with its domain and industry expertise. The Company delivers value to its clients in two ways – through digital-led, domain-enabled solutions that drive innovation, and through digitally-enabled intelligent operations that design, transform and run clients’ operations 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 | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of preparation and principles of consolidation The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year. The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding changes 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. 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. 2. Summary of significant accounting policies (Continued) (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 2-9 years Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income. (d) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 15% and 12% of receivables as of December 31, 2016 and March 31, 2017, respectively. GE accounted for 16% and 11% of revenues for the three months ended March 31, 2016 and 2017, respectively. (e) 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. 2. Summary of significant accounting policies (Continued) 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. In the quarter ended December 31, 2016, the Company elected to early adopt ASU 2016-09 effective January 1, 2016 and will apply ASU 2016-09 using a modified retrospective approach. The treatment of forfeitures has not changed as the Company is electing to continue its current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, the Company has elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. As a result, the Company’s, income taxes, net income, cash flows, retained earnings, additional paid-in capital, and basic and diluted net income per common share for the first quarter of 2016 have been restated due to the adoption of ASU No. 2016-09. In addition, the following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures: Effective January 1, 2016, the Company 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 adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. Effective January 1, 2016, the Company 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 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. Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence. |
Business acquisitions
Business acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business acquisitions | 3. Business acquisitions Certain acquisitions (a) LeaseDimensions, Inc. On February 15, 2017, the Company acquired 100% of the outstanding equity interest in LeaseDimensions, Inc. (“LeaseDimensions”), an Oregon corporation. The preliminary estimated total purchase consideration for LeaseDimensions is $11,626, 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 $9,089, net of cash acquired of $217, and a preliminary adjustment for working capital and net debt. As of March 31, 2017, the total consideration paid by the Company to the sellers is $9,454, resulting in a receivable of $148. The purchase agreement also provides for contingent earn-out consideration ranging from $0 to $3,000, payable by the Company to the sellers based on the future performance of the business relative to the thresholds specified in the earn-out calculation. This acquisition enhances the Company’s capabilities in commercial lending and leasing. In connection with the transaction, the Company recorded $2,400 in customer-related intangibles and $1,000 in marketing-related intangibles, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $8,307, which has been allocated to the Company’s Americas 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 $422 have been included in selling, general and administrative expenses as incurred. Through the transaction the Company acquired assets with a value of $2,277, assumed liabilities amounting to $1,038, and recognized a net deferred tax liability of $1,320. 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. (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”), an Indian private limited company. The total purchase consideration paid by the Company to acquire Endeavour is $14,788. This amount includes the estimated fair value of the contingent earn-out consideration, cash consideration of $10,345, net of cash acquired of $2,373, and an adjustment for working capital and net debt. Of this amount, $95 is payable by the Company to one of the sellers. During the quarter ended March 31, 2017, the Company recorded a measurement period adjustment that resulted in a $346 increase in the purchase consideration as a result of an adjustment to closing date working capital and net debt. The adjustments included an increase of $161 in assets acquired, a decrease of $118 in liabilities assumed and a corresponding impact on goodwill of $67. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. 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 $8,936, 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. In connection with the transaction, the Company also acquired certain assets with a value of $5,854 and assumed certain liabilities amounting to $1,735. (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 was $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 through 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 of the acquired business 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. 3. Business acquisitions (Continued) 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 enhances 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. 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. |
Cash and cash equivalents
Cash and cash equivalents | 3 Months Ended |
Mar. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents Cash and cash equivalents as of December 31, 2016 and March 31, 2017 are set out in the table below: As of December 31, As of March 31, 2016 2017 Cash and other bank balances 422,623 388,186 Total $ 422,623 $ 388,186 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 3 Months Ended |
Mar. 31, 2017 | |
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, Three months ended 2016 March 31, Opening balance as of January 1 $ 11,530 $ 15,519 Additions charged to cost and expense 7,282 - Deductions/Effect of exchange rate fluctuations (3,293 ) 121 Closing balance $ 15,519 $ 15,640 Accounts receivable were $630,784 and $618,511, and the reserves for doubtful receivables were $15,519 and $15,640, resulting in net accounts receivable balances of $615,265 and $602,871 as of December 31, 2016 and March 31, 2017, respectively. In addition, accounts receivable due after one year of $3,272 and $1,182 as of December 31, 2016 and March 31, 2017, respectively, are included under other assets in the Consolidated Balance Sheets. Accounts receivable from related parties were $2,490 and $2,130 as of December 31, 2016 and March 31, 2017, respectively. There are no reserves for doubtful receivables in respect of amounts due from related parties. |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 and March 31, 2017: 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) 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 As of March 31, 2017 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) $ 87,395 $ — $ 87,395 $ — Total $ 87,395 $ — $ 87,395 $ — Liabilities Earn-out consideration (Notes b, d) $ 21,262 — — $ 21,262 Derivative instruments (Notes b, c) $ 12,762 $ — $ 12,762 $ — Total $ 34,024 $ — $ 12,762 $ 21,262 Redeemable non-controlling interest (Note e) $ 3,610 $ — $ — $ 3,610 (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 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. See 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 three months ended March 31, 2016 and 2017: As of March 31, As of March 31, 2016 2017 Opening balance $ 22,820 $ 22,435 Earn-out consideration payable in connection with acquisitions 8,120 2,320 Payments made on earn-out consideration (1,557 ) (1,206 ) Changes in fair value of earn-out consideration (note a) (9,507 ) (3,138 ) Others (note b) 978 852 Ending balance $ 20,853 $ 21,262 a) Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income b) Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss). |
Derivative financial instrument
Derivative financial instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | GENPACT LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements (Unaudited) (In thousands, except per share data and share count) 7. Derivative financial instruments The Company is exposed to the risk of rate fluctuations on its 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, foreign currency denominated forecasted cash flows and interest rate risk. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature during a period of up to 57 months and the forecasted transactions are expected to occur during the same period. 7. Derivative financial instruments (Continued) 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, 2016 As of March 31, 2017 As of December 31, 2016 As of March 31, 2017 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,108,400 $ 1,080,900 $ 6,669 $ 56,945 United States Dollars (sell) Mexican Peso (buy) 9,120 6,840 (187 ) 663 United States Dollars (sell) Philippines Peso (buy) 70,050 57,600 (1,036 ) (1,492 ) Euro (sell) United States Dollars (buy) 138,613 118,018 9,180 7,201 Pound Sterling (buy) United States Dollars (sell) - 22,333 - 151 Euro (sell) Romanian Leu (buy) 29,805 22,354 (152 ) (66 ) Japanese Yen (sell) Chinese Renminbi (buy) 77,267 10,373 (742 ) (2,873 ) Pound Sterling (sell) United States Dollars (buy) 104,142 106,246 14,228 9,838 Australian Dollars (sell) United States Dollars (buy) 114,412 108,097 2,328 (3,974 ) Interest rate swaps (floating to fixed) 456,810 456,810 7,746 8,240 38,034 74,633 (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. FASB guidance on derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with the FASB guidance on derivatives and hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues 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, 2016 As of March 31, 2017 As of December 31, 2016 As of March 31, 2017 Assets Prepaid expenses and other current assets $ 33,921 $ 51,638 $ 809 $ 7,034 Other assets $ 20,657 $ 28,723 $ — $ — Liabilities Accrued expenses and other current liabilities $ 4,540 $ 4,673 $ 237 $ 74 Other liabilities $ 12,576 $ 8,015 $ — $ — 7. Derivative financial instruments (Continued) Cash flow hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred. In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Three months ended March 31, 2016 2017 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 Net gains (losses) reclassified into statement of income on completion of hedged transactions (2,902 ) 702 (2,200 ) 9,295 (3,432 ) 5,863 Changes in fair value of effective portion of outstanding derivatives, net (79 ) (151 ) (230 ) 39,508 (14,787 ) 24,721 Gain (loss) on cash flow hedging derivatives, net 2,823 (853 ) 1,970 30,213 (11,355 ) 18,858 Closing balance $ (27,267 ) $ 8,977 $ (18,290 ) $ 67,674 $ (25,334 ) $ 42,340 The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Amount of Gain (Loss) reclassified from OCI into recognized in OCI on Location of Gain (Loss) Statement of Income Derivatives in Derivatives (Effective Portion) reclassified (Effective Portion) Cash Flow Three months ended from OCI into Three months ended Hedging March 31, Statement of Income March 31, Relationships 2016 2017 (Effective Portion) 2016 2017 Forward foreign exchange contracts $ 1,847 $ 39,296 Revenue $ 3,871 $ 3,760 Interest rate swaps (1,926 ) 212 Cost of revenue (5,312 ) 4,570 Selling, general and administrative expenses (1,461 ) 1,248 Interest expense — (283 ) $ (79 ) $ 39,508 $ (2,902 ) $ 9,295 Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 for the three months ended March 31, 2016 and 2017, respectively. 7. Derivative financial instruments (Continued) Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Derivatives not Location of Gain (Loss) Income on Derivatives designated as hedging recognized in Statement of Three months ended March 31, instruments Income on Derivatives 2016 2017 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 1,134 $ 8,910 $ 1,134 $ 8,910 (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 3 Months Ended |
Mar. 31, 2017 | |
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, As of March 31, 2016 2017 Advance income and non-income taxes $ 50,676 $ 62,792 Deferred transition costs 45,252 47,659 Derivative instruments 34,730 58,672 Prepaid expenses 22,222 21,816 Customer acquisition cost 11,126 11,733 Employee advances 6,880 6,526 Deposits 2,688 4,427 Advances to suppliers 10,059 7,142 Others 5,516 6,868 $ 189,149 $ 227,635 |
Property, plant and equipment,
Property, plant and equipment, net | 3 Months Ended |
Mar. 31, 2017 | |
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, As of March 31, 2016 2017 Property, plant and equipment, gross $ 607,451 $ 634,577 Less: Accumulated depreciation and amortization (407,336 ) (422,015 ) Property, plant and equipment, net $ 200,115 $ 212,562 Depreciation expense on property, plant and equipment for the three months ended March 31, 2016 and 2017 was $11,104 and $11,230, respectively. Computer software amortization for the three months ended March 31, 2016 and 2017 amounted to $2,345 and $2,679, 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 $294 and $(228) for the three months ended March 31, 2016 and 2017, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Mar. 31, 2017 | |
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 year ended December 31, 2016 and three months ended March 31, 2017: As As of March 31, 2016 2017 Opening balance $ 1,038,346 $ 1,069,408 Goodwill relating to acquisitions consummated during the period 51,535 8,307 Goodwill relating to divestitures consummated during the period (2,226 ) - Impact of measurement period adjustments (59 ) 67 Effect of exchange rate fluctuations (18,188 ) 19,547 Closing balance $ 1,069,408 $ 1,097,329 The total amount of goodwill deductible for tax purposes was $39,032 and $38,027 as of December 31, 2016 and March 31, 2017, 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, 2016 As of March 31, 2017 Gross Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 310,277 $ 259,460 $ 50,817 $ 317,225 $ 269,000 $ 48,225 Marketing-related intangible assets 42,587 29,277 13,310 42,856 30,527 12,329 Other intangible assets 33,266 25,344 $ 7,922 35,896 27,380 8,516 $ 386,130 $ 314,081 $ 72,049 $ 395,977 $ 326,907 $ 69,070 Amortization expenses for intangible assets disclosed in the consolidated statements of income under amortization of acquired intangible assets for the three months ended March 31, 2016 and 2017 were $6,145 and $7,242, respectively. During the three months ended March 31, 2016, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset. The Company previously recorded a charge to this asset in the third quarter of 2015. Based on the results of its testing, the Company determined that the carrying value of the intangible asset exceeded the estimated undiscounted cash flows by $4,943 and recorded an additional charge to further reduce the carrying value by this amount. The Company used a combination of the income and cost approaches to determine the fair value of the intangible asset for the purpose of calculating the charge. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income . |
Short-term borrowings
Short-term borrowings | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | 11. Short-term borrowings The Company has the following borrowing facilities: (a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2016 and March 31, 2017, the limits available were $15,382 and $15,827, respectively, of which $10,980 and $11,037 was utilized, constituting non-funded drawdown. (b) A fund-based and non-fund based revolving credit facility of $350,000, which the company obtained in June 2015 as described in note 12. This facility replaced the Company’s $250,000 facility initially entered into in August 2012 and subsequently amended in June 2013. As of December 31, 2016 and March 31, 2017, a total of $160,978 and $15,978, respectively, was utilized, of which $160,000 and $15,000, respectively, constituted funded drawdown and $978 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% per annum as of December 31, 2016. As of March 31, 2017, 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, 2016 and March 31, 2017, respectively. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. For the three months ended March 31, 2017, the Company was in compliance with the financial covenants. |
Long-term debt
Long-term debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | 12. Long-term debt In June 2015, the Company refinanced its 2012 credit facility through a new credit facility comprised of an $800,000 term loan and a $350,000 revolving credit facility. Borrowings under the new facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus an applicable margin equal to 1.50% per annum or a base rate plus an applicable margin equal to 0.50% per annum, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.50% per annum. As a result of the June 2015 refinancing, the gross outstanding term loan under the previous facility, which amounted to $663,188 as of June 30, 2015, was extinguished, and the Company expensed $10,050, representing accelerated amortization of the existing unamortized debt issuance costs related to the prior facility. Additionally, the refinancing of the revolving facility resulted in the accelerated amortization of $65 relating to the existing unamortized debt issuance cost. The remaining unamortized costs for the revolving facility, together with the fees paid to the Company’s lenders and third parties in connection with the new term loan and revolving facility, will be amortized over the term of the refinanced facility, which ends on June 30, 2020. For the three months ended March 31, 2017, the Company was in compliance with the financial covenants of the credit agreement. As of December 31, 2016 and March 31, 2017, the amount outstanding under the term loan, net of debt amortization expense of $2,667 and $2,461, was $737,333 and $727,539, respectively. As of December 31, 2016 and March 31, 2017, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum based on the Company’s election and current credit rating. Indebtedness under the refinanced facility is unsecured. The amount outstanding on the term loan as of March 31, 2017 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 $ 29,387 2018 39,226 2019 39,272 2020 619,654 Total $ 727,539 12. Long-term debt (Continued) In March 2017, the Company issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering, resulting in cash proceeds of approximately $348,519 and an underwriting fee of $1,481. In connection with the offering, the Company incurred other debt issuance costs of $1,093. The total debt issuance cost of $2,574 is being amortized over the life of the notes as an additional interest expense. As of March 31, 2017, the amount outstanding under the notes, net of debt amortization expense of $2,569, was $347,431, which is payable on April 1, 2022. The Company will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022. The Company, at its option, may redeem the notes at any time in whole or in part, at a redemption price equal to (i) 100% of the principal amount of the notes redeemed, together with accrued and unpaid interest on the redeemed amount, and (ii) if the notes are redeemed prior to March 1, 2022, a specified “make-whole” premium. The notes are subject to certain customary covenants, including limitations on the ability of the Company and certain of its subsidiaries to incur debt secured by liens, engage in certain sale and leaseback transactions and consolidate, merge, convey or transfer their assets. Upon certain change of control transactions, the Company will be required to make an offer to repurchase the notes at a price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest. The interest rate payable on the notes is subject to adjustment if the credit rating of the notes is downgraded up to a maximum increase of 2.0%. The Company is required to offer to exchange the notes for registered notes or have one or more shelf registration statements declared effective within 455 days after the issue date of the notes and, if such exchange offer fails to be consummated or such registration statement fails to be effective by June 25, 2018, then the interest payable on the notes will increase by 0.25% per annum during the 90-day period immediately following such date and will further increase by 0.25% per annum at the end of each subsequent 90-day period up to a maximum increase of 0.50%. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 3 Months Ended |
Mar. 31, 2017 | |
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, As of March 31, 2016 2017 Accrued expenses $ 163,400 $ 155,889 Accrued employee cost 179,360 109,006 Deferred transition revenue 50,552 48,301 Statutory liabilities 36,878 46,670 Retirement benefits 17,616 18,347 Derivative instruments 4,777 4,747 Advance from customers 21,969 26,270 Earn-out consideration 6,885 6,502 Other liabilities 15,461 9,697 Capital lease obligations 1,349 1,524 $ 498,247 $ 426,953 |
Other liabilities
Other liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 14. Other liabilities Other liabilities consist of the following: As of December 31, As of March 31, 2016 2017 Accrued employee cost $ 3,976 $ 12,934 Deferred transition revenue 72,560 69,414 Retirement benefits 39,020 42,159 Derivative instruments 12,576 8,015 Amount received from GE under indemnification arrangement, pending adjustment 3,159 3,318 Advance from customers 2,371 325 Earn-out consideration 15,550 14,760 Others 11,078 11,872 Capital lease obligations 2,500 2,764 $ 162,790 $ 165,561 |
Employee benefit plans
Employee benefit plans | 3 Months Ended |
Mar. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plans | 15. 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 maintains a defined benefit retirement plan covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines and Japan sponsor defined benefit retirement programs. Net defined benefit plan costs for the three months ended March 31, 2016 and 2017 include the following components: Three months ended March 31, 2016 2017 Service costs $ 1,403 $ 1,720 Interest costs 698 734 Amortization of actuarial loss 56 205 Expected return on plan assets (486 ) (492 ) Net defined benefit plan costs $ 1,671 $ 2,167 Defined contribution plans During the three months ended March 31, 2016 and 2017, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended March 31, 2016 2017 India $ 4,303 $ 5,217 U.S. 3,532 4,280 U.K. 1,652 1,720 China 3,753 3,828 Other regions 1,265 1,130 Total $ 14,505 $ 16,175 |
Stock-based compensation
Stock-based compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | 16. 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, who are employees, directors and certain other persons associated with the Company. With respect to options granted under the 2005, 2006 and 2007 Plans before the date of adoption of the 2007 Omnibus Plan, if an award granted under any such plan is forfeited or otherwise expires, terminates, or is cancelled without the delivery of shares, then the shares covered by the forfeited, expired, terminated, or cancelled award will be added to the number of shares otherwise available for grant under the respective plans. Beginning on July 13, 2007, the date of adoption of the 2007 Omnibus Plan, share-based awards 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 an adjustment to outstanding unvested share awards. Stock-based compensation costs relating to the foregoing plans during the three months ended March 31, 2016 and 2017 were $5,250 and $4,845, respectively. These costs have been allocated to cost of revenue and selling, general, and administrative expenses. Stock options Options granted are subject to a vesting requirement. Options granted under the 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 the compensation cost over the vesting period of the option. Compensation cost is determined as of the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model. The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in the three months ended March 31, 2017. No options were granted in the three months ended March 31, 2016. Three March Dividend yield 0.97% Expected life (in months) 84 Risk-free rate of interest 2.25% Volatility 24.28% 16. Stock-based compensation (Continued) A summary of stock option activity during the three months ended March 31, 2017 is set out below: Three months ended March 31, 2017 Shares out of options Weighted exercise price Weighted remaining contractual (years) Aggregate intrinsic value Outstanding as of January 1, 2017 5,707,690 $ 18.65 5.8 $ — Granted 250,000 24.74 — — Forfeited (55,000 ) 21.22 — — Expired — — — — Exercised (455,835 ) 14.36 — 4,742 Outstanding as of March 31, 2017 5,446,855 $ 19.27 6.2 $ 31,829 Vested as of March 31, 2017 and expected to vest thereafter (Note a) 5,183,854 $ 19.01 6.2 $ 31,395 Vested and exercisable as of March 31, 2017 2,365,356 $ 15.89 4.5 $ 20,970 Weighted average grant date fair value of grants during the period $ 6.62 (a) Options expected to vest reflect an estimated forfeiture rate. As of March 31, 2017, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $12,130, which will be recognized over the weighted average remaining requisite vesting period of 2.7 years. Restricted share units The Company has granted restricted share units, or RSUs, under the 2007 Omnibus Plan. Each RSU represents the right to receive one Company common share at a future date. The fair value of each RSU is the market price of a Company common share on the date of the grant. RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSUs granted during the three months ended March 31, 2017 is set out below: Three months ended March 31, 2017 Number Weighted Outstanding as of January 1, 2017 117,905 $ 20.65 Granted 24,000 24.74 Vested (Note a) (6,464 ) 16.68 Forfeited — — Outstanding as of March 31, 2017 135,441 $ 21.56 Expected to vest (Note b) 123,798 (a) RSUs that vested during the period were net settled upon vesting by issuing 6,040 shares (net of minimum statutory tax withholding). (b) The number of RSUs expected to vest reflects an estimated forfeiture rate. 53,546 RSUs vested in the year ended December 31, 2015, in respect of which 53,023 shares were issued during three months ended March 31, 2017 after withholding shares to the extent of minimum statutory withholding taxes. 34,035 RSUs vested in the year ended December 31, 2016, in respect of which 17,802 shares were issued during three months ended March 31, 2017 after withholding shares to the extent of minimum statutory withholding taxes. 16. Stock-based compensation (Continued) As of March 31, 2017, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $1,801, which will be recognized over the weighted average remaining requisite vesting period of 2.9 years. Performance units The Company also grants stock awards in the form of performance units, or PUs, under the 2007 Omnibus Plan. Each PU represents the right to receive one Company common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. Over the performance period, the number of shares to be issued is adjusted upward or downward depending on the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the three months ended March 31, 2017 is set out below: Three months ended March 31, 2017 Number Performance Weighted Average Date Maximum Eligible Outstanding as of January 1, 2017 3,772,128 $ 23.04 5,524,114 Granted 707,092 24.74 1,414,184 Vested (Note a) (1,136,047) 16.78 (1,136,047) Forfeited (Note b) (1,485,337 ) 27.82 (1,489,737 ) Adjustment upon final determination of level of performance goal achievement (Note c) (1,747,586) Outstanding as of March 31, 2017 1,857,836 $ 23.69 2,564,928 Expected to vest (Note d) 1,624,573 (a) PUs that vested during the period were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). (b) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. (c) Represents the difference between the maximum number of shares achievable under the PUs granted in 2016 and the number of target shares underlying the PUs granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. (d) The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate. As of March 31, 2017, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $20,044, which will be recognized over the weighted average remaining requisite vesting period of 2.1 years. 16. Stock-based compensation (Continued) Employee Stock Purchase Plan (ESPP) On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day of the subsequent May, August, November and February. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP. During the three months ended March 31, 2016 and 2017, 30,487 and 55,788 common shares, respectively, were issued under the ESPP. The ESPP is considered compensatory under the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP during three months ended March 31, 2016 and 2017 was $86 and $141, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital stock
Capital stock | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Capital stock | 17. Capital stock Share repurchases As of December 31, 2016, the Company’s board of directors (the “Board”) had authorized the Company to repurchase up to $750,000 in value of the Company’s common shares under its share repurchase program first announced in February 2015. 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. On March 29, 2017, the Company entered into an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (the “Dealer”) to repurchase Company common shares for an aggregate purchase price of $200,000. The Company paid the aggregate purchase price to the Dealer and received an initial delivery of 6,578,947 common shares at a price of $24.32 per share. The purchase price was recorded as a reduction in shareholders’ equity through a $160,000 decrease in retained earnings and a $40,000 decrease in additional paid-in capital. The final settlement of the transaction under the ASR agreement is expected to be completed by the end of the fourth quarter of 2017. The final number of common shares to be repurchased by the Company under the ASR agreement will be based on the volume-weighted average share price of the Company’s common shares during the term of the applicable transaction, less a discount and subject to adjustments pursuant to the terms of the ASR agreement. At settlement, under certain circumstances, the Company may be entitled to receive additional common shares from the Dealer or may be required either to deliver its common shares or to make a cash payment to the Dealer. The ASR agreement contains customary provisions, including, among other things, with respect to mechanisms to determine the number of shares or the amount of cash that will be delivered at settlement, the required timing of delivery upon settlement, specific circumstances under which adjustments may be made to the repurchase transaction, and specific circumstances under which the repurchase transaction may be canceled prior to the scheduled maturity. During the three months ended March 31, 2016, the Company purchased 1,356,199 of its common shares on the open market at a weighted average price of $24.35 per share for an aggregate cash amount of $33,017. During the three months ended March 31, 2017, the Company made payments in an aggregate cash amount of $219,784 toward share repurchases. Of this amount, the Company paid (i) $19,784 to repurchase 808,293 of its common shares on the open market at a weighted average price of $24.48 per share, (ii) $160,000 to the Dealer for the initial delivery of 6,578,947 of its common shares under the ASR agreement at a weighted average price of $24.32 per share, and (iii) $40,000 to the Dealer for shares to be delivered at the final settlement of the transaction under the ASR agreement as described above. All repurchased shares have been retired. The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the three months ended March 31, 2016 and March 31, 2017, $27 and $16, respectively, was deducted from retained earnings in direct costs related to share repurchases. Dividend In February 2017, the Company’s board of directors 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. On March 28, 2017, the Company paid a dividend of $0.06 per share, amounting to $11,957 in the aggregate, to shareholders of record as of March 10, 2017. |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | 18. Earnings per share The Company calculates earnings per share in accordance with FASB guidance on earnings per share. Basic and diluted earnings per common share give effect to the change in the number of Company common shares outstanding. The calculation of basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the respective periods. Potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, performance units and common shares to be issued under the employee stock purchase plan, have been included in the computation of diluted net earnings per share and the weighted average shares outstanding, except where the result would be anti-dilutive. The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 317,081 and 1,003,048 for the three months ended March 31, 2016 and 2017, respectively. Three months ended March 31, 2016 2017 Net income available to Genpact Limited common shareholders $ 58,794 $ 53,338 Weighted average number of common shares used in computing basic earnings per common share 210,780,165 199,069,528 Dilutive effect of stock-based awards 3,112,799 3,586,409 Weighted average number of common shares used in computing dilutive earnings per common share 213,892,964 202,655,937 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.28 $ 0.27 Diluted $ 0.27 $ 0.26 |
Cost of revenue
Cost of revenue | 3 Months Ended |
Mar. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | 19. Cost of revenue Cost of revenue consists of the following: Three months ended March 31, 2016 2017 Personnel expenses $ 254,028 $ 269,189 Operational expenses 107,542 102,716 Depreciation and amortization 11,278 11,432 $ 372,848 $ 383,337 |
Selling, general and administra
Selling, general and administrative expenses | 3 Months Ended |
Mar. 31, 2017 | |
Selling General And Administrative Expenses [Abstract] | |
Selling, general and administrative expenses | 20. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Three months ended March 31, 2016 2017 Personnel expenses $ 108,400 $ 122,569 Operational expenses 49,578 35,813 Depreciation and amortization 2,171 2,476 $ 160,149 $ 160,858 |
Other operating (income) expens
Other operating (income) expense, net | 3 Months Ended |
Mar. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Other operating (income) expense, net | 21. Other operating (income) expense, net Three months ended March 31, 2016 2017 Other operating (income) expense $ (498 ) $ (4,400 ) Provision for Impairment of intangible assets 4,943 - Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) $ (9,506 ) $ (3,138 ) Other operating (income) expense, net $ (5,061 ) $ (7,538 ) |
Interest income (expense), net
Interest income (expense), net | 3 Months Ended |
Mar. 31, 2017 | |
Banking And Thrift Interest [Abstract] | |
Interest income (expense), net | 22. Interest income (expense), net Three months ended March 31, 2016 2017 Interest income $ 2,364 $ 1,131 Interest expense (5,202 ) (6,624 ) Interest income (expense), net $ (2,838 ) $ (5,493 ) |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 23. Income taxes The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. As of December 31, 2016, the Company had unrecognized tax benefits amounting to $23,467, including an amount of $22,469, which, if recognized, would impact the effective tax rate. The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2017 to March 31, 2017: 2017 Opening balance at January 1 $ 23,467 Increase related to prior year tax positions, including recorded in acquisition accounting 515 Decrease related to prior year tax positions (309 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (132) Effect of exchange rate changes 942 Closing balance at March 31 $ 24,483 The Company’s unrecognized tax benefits as of March 31, 2017 include an amount of $23,484, which, if recognized, would impact the effective tax rate. As of December 31, 2016 and March 31, 2017, the Company had accrued approximately $3,856 and $4,068, respectively, for interest relating to unrecognized tax benefits. During the year ended December 31, 2016 and the three months ended March 31, 2017, the company recognized approximately $(206) and $34, respectively, excluding the impact of exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2016 and March 31, 2017, the Company had accrued approximately $977 and $1,000, respectively, for penalties. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related party transactions | 24. Related party transactions The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates. The Company’s related party transactions can be categorized as follows: Revenue from services For the three months ended March 31, 2016 and 2017, the Company recognized net revenues of $79 and $83, respectively, from a client that is a significant shareholder of the Company. For the three months ended March 31, 2016 and 2017, the Company recognized net revenues of $1,652 and $3,211 from a client that is a non-consolidating affiliate of the Company. $2,102 of this amount is receivable as of March 31, 2017. Cost of revenue from services The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, which are included in cost of revenue. For the three months ended March 31, 2016 and 2017, cost of revenue includes an amount of $498 and $575, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates. Selling, general and administrative expenses The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the three months ended March 31, 2016 and 2017, selling, general and administrative expenses includes an amount of $67 and $94, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates. During the three months ended March 31, 2016, the Company engaged a significant shareholder to provide a service to the Company at a cost of $15. Investment in equity affiliates During the three months ended March 31, 2017, the Company invested $467 in its non-consolidating affiliates. During the three months ended March 31, 2017, the Company recorded a $2,821 charge related to an investment in one of its non-consolidating affiliates, which has been included in equity-method investment activity, net in the Company’s consolidated statement of income. As of December 31, 2016 and March 31, 2017, the Company’s investments in its non-consolidating affiliates amounted to $4,800 and $769 respectively. Others During the three months ended March 31, 2016 and 2017, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $329 and $238, respectively, of which $238 is receivable and has been included in prepaid expenses and other current assets in the Company’s consolidated balance sheet as of March 31, 2017. During the three months ended March 31, 2017, the Company made a payment of $1,307 to one of its non-consolidating affiliates under a tax-sharing arrangement in the U.K. As of March 31, 2017, $2,000 is payable under the tax-sharing arrangement and has been included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet. The amount represents a portion of the non-consolidated affiliate’s net operating losses surrendered to the Company under the tax sharing arrangement for the years 2015 and 2016. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 25. Commitments and contingencies Capital commitments As of December 31, 2016 and March 31, 2017, the Company has committed to spend $5,185 and $6,843, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases. Bank guarantees The Company has outstanding bank guarantees amounting to $11,958 and $12,015 as of December 31, 2016 and March 31, 2017, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purpose of maintaining a bonded warehouse. These guarantees may be revoked if the government agencies 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 26. Subsequent Events Acquisitions On April 13, 2017, the Company acquired 100% of the outstanding equity interest in Rage Frameworks, Inc., a provider of knowledge-based automation technology and services, for estimated cash consideration of $125,000, subject to adjustment for cash and cash equivalents, working capital, closing debt and other items. This acquisition will enhance the Company’s artificial intelligence capabilities in line with its strategy to drive digital transformation for its clients. On May 3, 2017, the Company acquired 100% of the outstanding equity interest in BrightClaim, LLC and its associated Company National Vendor, LLC, both Delaware limited liability companies, for estimated cash consideration of $55,000, subject to adjustment for cash and cash equivalents, working capital, net debt and other items. This acquisition will enhance the Company’s breadth and depth of service offerings for clients in the insurance industry. Genpact Limited 2017 Omnibus Incentive Compensation Plan On May 9, 2017, the Company’s shareholders approved the adoption of the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Plan”), pursuant to which 15,000,000 Company common shares are available for issuance to Company employees, directors and consultants. As a result of the shareholders’ approval of the 2017 Plan, no further awards will be made under the Company’s 2007 Omnibus Plan. All awards outstanding under the 2007 Omnibus Plan will continue to remain outstanding under the 2007 Omnibus Plan in accordance with their terms. |
Summary of significant accoun34
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of preparation and principles of consolidation | (a) Basis of preparation and principles of consolidation The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year. The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding changes 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. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. |
Business combinations | 2. Summary of significant accounting policies (Continued) (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income. |
Goodwill | Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. |
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 2-9 years Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. |
Financial instruments and concentration of credit risk | (d) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 15% and 12% of receivables as of December 31, 2016 and March 31, 2017, respectively. GE accounted for 16% and 11% of revenues for the three months ended March 31, 2016 and 2017, respectively. |
Recently adopted accounting pronouncements | (e) 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. 2. Summary of significant accounting policies (Continued) 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. In the quarter ended December 31, 2016, the Company elected to early adopt ASU 2016-09 effective January 1, 2016 and will apply ASU 2016-09 using a modified retrospective approach. The treatment of forfeitures has not changed as the Company is electing to continue its current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, the Company has elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. As a result, the Company’s, income taxes, net income, cash flows, retained earnings, additional paid-in capital, and basic and diluted net income per common share for the first quarter of 2016 have been restated due to the adoption of ASU No. 2016-09. In addition, the following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures: Effective January 1, 2016, the Company 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 adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. Effective January 1, 2016, the Company 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 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. Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence. |
Summary of significant accoun35
Summary of significant accounting policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
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 2-9 years |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Cash And Cash Equivalents | Cash and cash equivalents as of December 31, 2016 and March 31, 2017 are set out in the table below: As of December 31, As of March 31, 2016 2017 Cash and other bank balances 422,623 388,186 Total $ 422,623 $ 388,186 |
Accounts receivable, net of r37
Accounts receivable, net of reserve for doubtful receivables (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Reserve for Doubtful Receivables | The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, Three months ended 2016 March 31, Opening balance as of January 1 $ 11,530 $ 15,519 Additions charged to cost and expense 7,282 - Deductions/Effect of exchange rate fluctuations (3,293 ) 121 Closing balance $ 15,519 $ 15,640 |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 and March 31, 2017: 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) 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 As of March 31, 2017 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) $ 87,395 $ — $ 87,395 $ — Total $ 87,395 $ — $ 87,395 $ — Liabilities Earn-out consideration (Notes b, d) $ 21,262 — — $ 21,262 Derivative instruments (Notes b, c) $ 12,762 $ — $ 12,762 $ — Total $ 34,024 $ — $ 12,762 $ 21,262 Redeemable non-controlling interest (Note e) $ 3,610 $ — $ — $ 3,610 (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 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. See 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 three months ended March 31, 2016 and 2017: As of March 31, As of March 31, 2016 2017 Opening balance $ 22,820 $ 22,435 Earn-out consideration payable in connection with acquisitions 8,120 2,320 Payments made on earn-out consideration (1,557 ) (1,206 ) Changes in fair value of earn-out consideration (note a) (9,507 ) (3,138 ) Others (note b) 978 852 Ending balance $ 20,853 $ 21,262 a) Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income b) Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss). |
Derivative financial instrume39
Derivative financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure | 7. Derivative financial instruments (Continued) 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, 2016 As of March 31, 2017 As of December 31, 2016 As of March 31, 2017 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,108,400 $ 1,080,900 $ 6,669 $ 56,945 United States Dollars (sell) Mexican Peso (buy) 9,120 6,840 (187 ) 663 United States Dollars (sell) Philippines Peso (buy) 70,050 57,600 (1,036 ) (1,492 ) Euro (sell) United States Dollars (buy) 138,613 118,018 9,180 7,201 Pound Sterling (buy) United States Dollars (sell) - 22,333 - 151 Euro (sell) Romanian Leu (buy) 29,805 22,354 (152 ) (66 ) Japanese Yen (sell) Chinese Renminbi (buy) 77,267 10,373 (742 ) (2,873 ) Pound Sterling (sell) United States Dollars (buy) 104,142 106,246 14,228 9,838 Australian Dollars (sell) United States Dollars (buy) 114,412 108,097 2,328 (3,974 ) Interest rate swaps (floating to fixed) 456,810 456,810 7,746 8,240 38,034 74,633 (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. FASB guidance on derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with the FASB guidance on derivatives and hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues 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, 2016 As of March 31, 2017 As of December 31, 2016 As of March 31, 2017 Assets Prepaid expenses and other current assets $ 33,921 $ 51,638 $ 809 $ 7,034 Other assets $ 20,657 $ 28,723 $ — $ — Liabilities Accrued expenses and other current liabilities $ 4,540 $ 4,673 $ 237 $ 74 Other liabilities $ 12,576 $ 8,015 $ — $ — |
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Three months ended March 31, 2016 2017 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 Net gains (losses) reclassified into statement of income on completion of hedged transactions (2,902 ) 702 (2,200 ) 9,295 (3,432 ) 5,863 Changes in fair value of effective portion of outstanding derivatives, net (79 ) (151 ) (230 ) 39,508 (14,787 ) 24,721 Gain (loss) on cash flow hedging derivatives, net 2,823 (853 ) 1,970 30,213 (11,355 ) 18,858 Closing balance $ (27,267 ) $ 8,977 $ (18,290 ) $ 67,674 $ (25,334 ) $ 42,340 |
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Amount of Gain (Loss) reclassified from OCI into recognized in OCI on Location of Gain (Loss) Statement of Income Derivatives in Derivatives (Effective Portion) reclassified (Effective Portion) Cash Flow Three months ended from OCI into Three months ended Hedging March 31, Statement of Income March 31, Relationships 2016 2017 (Effective Portion) 2016 2017 Forward foreign exchange contracts $ 1,847 $ 39,296 Revenue $ 3,871 $ 3,760 Interest rate swaps (1,926 ) 212 Cost of revenue (5,312 ) 4,570 Selling, general and administrative expenses (1,461 ) 1,248 Interest expense — (283 ) $ (79 ) $ 39,508 $ (2,902 ) $ 9,295 Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing is $0 for the three months ended March 31, 2016 and 2017, respectively. 7. Derivative financial instruments (Continued) Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Derivatives not Location of Gain (Loss) Income on Derivatives designated as hedging recognized in Statement of Three months ended March 31, instruments Income on Derivatives 2016 2017 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 1,134 $ 8,910 $ 1,134 $ 8,910 (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid expenses and other cu40
Prepaid expenses and other current assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, As of March 31, 2016 2017 Advance income and non-income taxes $ 50,676 $ 62,792 Deferred transition costs 45,252 47,659 Derivative instruments 34,730 58,672 Prepaid expenses 22,222 21,816 Customer acquisition cost 11,126 11,733 Employee advances 6,880 6,526 Deposits 2,688 4,427 Advances to suppliers 10,059 7,142 Others 5,516 6,868 $ 189,149 $ 227,635 |
Property, plant and equipment41
Property, plant and equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | Property, plant and equipment, net consist of the following: As of December 31, As of March 31, 2016 2017 Property, plant and equipment, gross $ 607,451 $ 634,577 Less: Accumulated depreciation and amortization (407,336 ) (422,015 ) Property, plant and equipment, net $ 200,115 $ 212,562 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table presents the changes in goodwill for the year ended December 31, 2016 and three months ended March 31, 2017: As As of March 31, 2016 2017 Opening balance $ 1,038,346 $ 1,069,408 Goodwill relating to acquisitions consummated during the period 51,535 8,307 Goodwill relating to divestitures consummated during the period (2,226 ) - Impact of measurement period adjustments (59 ) 67 Effect of exchange rate fluctuations (18,188 ) 19,547 Closing balance $ 1,069,408 $ 1,097,329 |
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, 2016 As of March 31, 2017 Gross Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 310,277 $ 259,460 $ 50,817 $ 317,225 $ 269,000 $ 48,225 Marketing-related intangible assets 42,587 29,277 13,310 42,856 30,527 12,329 Other intangible assets 33,266 25,344 $ 7,922 35,896 27,380 8,516 $ 386,130 $ 314,081 $ 72,049 $ 395,977 $ 326,907 $ 69,070 |
Long-term debt (Tables)
Long-term debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 $ 29,387 2018 39,226 2019 39,272 2020 619,654 Total $ 727,539 |
Accrued expenses and other cu44
Accrued expenses and other current liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of December 31, As of March 31, 2016 2017 Accrued expenses $ 163,400 $ 155,889 Accrued employee cost 179,360 109,006 Deferred transition revenue 50,552 48,301 Statutory liabilities 36,878 46,670 Retirement benefits 17,616 18,347 Derivative instruments 4,777 4,747 Advance from customers 21,969 26,270 Earn-out consideration 6,885 6,502 Other liabilities 15,461 9,697 Capital lease obligations 1,349 1,524 $ 498,247 $ 426,953 |
Other liabilities (Tables)
Other liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other liabilities consist of the following: As of December 31, As of March 31, 2016 2017 Accrued employee cost $ 3,976 $ 12,934 Deferred transition revenue 72,560 69,414 Retirement benefits 39,020 42,159 Derivative instruments 12,576 8,015 Amount received from GE under indemnification arrangement, pending adjustment 3,159 3,318 Advance from customers 2,371 325 Earn-out consideration 15,550 14,760 Others 11,078 11,872 Capital lease obligations 2,500 2,764 $ 162,790 $ 165,561 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the three months ended March 31, 2016 and 2017 include the following components: Three months ended March 31, 2016 2017 Service costs $ 1,403 $ 1,720 Interest costs 698 734 Amortization of actuarial loss 56 205 Expected return on plan assets (486 ) (492 ) Net defined benefit plan costs $ 1,671 $ 2,167 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the three months ended March 31, 2016 and 2017, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended March 31, 2016 2017 India $ 4,303 $ 5,217 U.S. 3,532 4,280 U.K. 1,652 1,720 China 3,753 3,828 Other regions 1,265 1,130 Total $ 14,505 $ 16,175 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Payment Award, Stock Options Granted, Valuation Assumptions | The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in the three months ended March 31, 2017. No options were granted in the three months ended March 31, 2016. Three March Dividend yield 0.97% Expected life (in months) 84 Risk-free rate of interest 2.25% Volatility 24.28% |
Summary of Stock Option Activity | 16. Stock-based compensation (Continued) A summary of stock option activity during the three months ended March 31, 2017 is set out below: Three months ended March 31, 2017 Shares out of options Weighted exercise price Weighted remaining contractual (years) Aggregate intrinsic value Outstanding as of January 1, 2017 5,707,690 $ 18.65 5.8 $ — Granted 250,000 24.74 — — Forfeited (55,000 ) 21.22 — — Expired — — — — Exercised (455,835 ) 14.36 — 4,742 Outstanding as of March 31, 2017 5,446,855 $ 19.27 6.2 $ 31,829 Vested as of March 31, 2017 and expected to vest thereafter (Note a) 5,183,854 $ 19.01 6.2 $ 31,395 Vested and exercisable as of March 31, 2017 2,365,356 $ 15.89 4.5 $ 20,970 Weighted average grant date fair value of grants during the period $ 6.62 (a) Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Units Granted | A summary of RSUs granted during the three months ended March 31, 2017 is set out below: Three months ended March 31, 2017 Number Weighted Outstanding as of January 1, 2017 117,905 $ 20.65 Granted 24,000 24.74 Vested (Note a) (6,464 ) 16.68 Forfeited — — Outstanding as of March 31, 2017 135,441 $ 21.56 Expected to vest (Note b) 123,798 (a) RSUs that vested during the period were net settled upon vesting by issuing 6,040 shares (net of minimum statutory tax withholding). (b) The number of RSUs expected to vest reflects an estimated forfeiture rate. |
Summary of Performance Units Activity | A summary of PU activity during the three months ended March 31, 2017 is set out below: Three months ended March 31, 2017 Number Performance Weighted Average Date Maximum Eligible Outstanding as of January 1, 2017 3,772,128 $ 23.04 5,524,114 Granted 707,092 24.74 1,414,184 Vested (Note a) (1,136,047) 16.78 (1,136,047) Forfeited (Note b) (1,485,337 ) 27.82 (1,489,737 ) Adjustment upon final determination of level of performance goal achievement (Note c) (1,747,586) Outstanding as of March 31, 2017 1,857,836 $ 23.69 2,564,928 Expected to vest (Note d) 1,624,573 (a) PUs that vested during the period were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). (b) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. (c) Represents the difference between the maximum number of shares achievable under the PUs granted in 2016 and the number of target shares underlying the PUs granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. (d) The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate. |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per share | Three months ended March 31, 2016 2017 Net income available to Genpact Limited common shareholders $ 58,794 $ 53,338 Weighted average number of common shares used in computing basic earnings per common share 210,780,165 199,069,528 Dilutive effect of stock-based awards 3,112,799 3,586,409 Weighted average number of common shares used in computing dilutive earnings per common share 213,892,964 202,655,937 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.28 $ 0.27 Diluted $ 0.27 $ 0.26 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | Cost of revenue consists of the following: Three months ended March 31, 2016 2017 Personnel expenses $ 254,028 $ 269,189 Operational expenses 107,542 102,716 Depreciation and amortization 11,278 11,432 $ 372,848 $ 383,337 |
Selling, general and administ50
Selling, general and administrative expenses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Selling General And Administrative Expenses [Abstract] | |
Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: Three months ended March 31, 2016 2017 Personnel expenses $ 108,400 $ 122,569 Operational expenses 49,578 35,813 Depreciation and amortization 2,171 2,476 $ 160,149 $ 160,858 |
Other operating (income) expe51
Other operating (income) expense, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Three months ended March 31, 2016 2017 Other operating (income) expense $ (498 ) $ (4,400 ) Provision for Impairment of intangible assets 4,943 - Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) $ (9,506 ) $ (3,138 ) Other operating (income) expense, net $ (5,061 ) $ (7,538 ) |
Interest income (expense), net
Interest income (expense), net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Banking And Thrift Interest [Abstract] | |
Interest Income (Expense), Net | Three months ended March 31, 2016 2017 Interest income $ 2,364 $ 1,131 Interest expense (5,202 ) (6,624 ) Interest income (expense), net $ (2,838 ) $ (5,493 ) |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions | The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2017 to March 31, 2017: 2017 Opening balance at January 1 $ 23,467 Increase related to prior year tax positions, including recorded in acquisition accounting 515 Decrease related to prior year tax positions (309 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (132) Effect of exchange rate changes 942 Closing balance at March 31 $ 24,483 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Mar. 31, 2017EmployeeCountry | Oct. 25, 2012shares |
Accounting Policies [Abstract] | ||
Number of employees around the globe, minimum | Employee | 77,000 | |
Number of countries in which entity operates | Country | 20 | |
Common stock shares purchased by affiliates of Bain Capital Partners | shares | 67,750,678 |
Estimated Useful Lives of Intan
Estimated Useful Lives of Intangible Assets Acquired (Detail) | 3 Months Ended |
Mar. 31, 2017 | |
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 | 2 years |
Other Intangible Assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 9 years |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Additional Information (Detail) - General Electric Company | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Percentage of accounts receivables | 12.00% | 15.00% | |
Percentage of revenues | 11.00% | 16.00% |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) | Feb. 15, 2017 | Apr. 13, 2016 | Jan. 08, 2016 | Apr. 30, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | [1] | Jan. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||||||
Payment for business acquisitions, net of cash acquired | $ 9,237,000 | $ 2,339,000 | ||||||||
Goodwill | 1,097,329,000 | $ 1,069,408,000 | $ 1,038,346,000 | |||||||
Acquisition related cost | $ 164,000 | |||||||||
Acquired assets | 412,000 | |||||||||
Liabilities assumed | $ 617,000 | |||||||||
LeaseDimensions Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage acquired | 100.00% | |||||||||
Preliminary estimated purchase consideration | $ 11,626,000 | |||||||||
Payment for business acquisitions, net of cash acquired | 9,089,000 | |||||||||
Cash and cash equivalents | 217,000 | |||||||||
Business combination change in contingent consideration paid to sellers | 9,454,000 | |||||||||
Business combination change in contingent consideration receivable | 148,000 | |||||||||
Contingent earn-out consideration-Low end | 0 | |||||||||
Contingent earn-out consideration-High end | $ 3,000,000 | |||||||||
Acquired intangible assets, weighted average amortization period | 3 years | |||||||||
Goodwill | $ 8,307,000 | |||||||||
Acquisition related cost | 422,000 | |||||||||
Acquired assets | 2,277,000 | |||||||||
Liabilities assumed | 1,038,000 | |||||||||
Recognized net deferred tax liability | 1,320,000 | |||||||||
LeaseDimensions Inc. | Customer-Related Intangible Assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | 2,400,000 | |||||||||
LeaseDimensions Inc. | Marketing-Related Intangible Assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | $ 1,000,000 | |||||||||
Endeavour Software Technologies Private Limited | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage acquired | 100.00% | |||||||||
Preliminary estimated purchase consideration | $ 14,788,000 | |||||||||
Payment for business acquisitions, net of cash acquired | 10,345,000 | |||||||||
Cash and cash equivalents | $ 2,373,000 | |||||||||
Acquired intangible assets, weighted average amortization period | 3 years | |||||||||
Goodwill | $ 8,936,000 | |||||||||
Acquired assets | 5,854,000 | |||||||||
Liabilities assumed | 1,735,000 | |||||||||
Cash withheld for seller | 95,000 | |||||||||
Business combination change in contingent consideration | 346,000 | |||||||||
Business combination contingent consideration change in assets | 161,000 | |||||||||
Business combination contingent consideration change in liabilities | 118,000 | |||||||||
Business combination contingent consideration change in goodwill | 67,000 | |||||||||
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] | ||||||||||
Ownership percentage acquired | 51.00% | |||||||||
Preliminary estimated purchase consideration | $ 14,541,000 | |||||||||
Contingent earn-out consideration-High end | 20,000,000 | |||||||||
Goodwill | 14,445,000 | |||||||||
Business combination contingent consideration change in liabilities | 51,000 | |||||||||
Cash consideration to acquired certain assets and assumed certain liabilities | $ 2,550,000 | |||||||||
Business combination contingent consideration change in current assets | 69,000 | |||||||||
Business combination contingent consideration change in noncurrent assets | $ 16,000 | |||||||||
Equity method investment ownership percentage | 49.00% | |||||||||
Strategic Sourcing Excellence LLC | Put Or Call Option | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent earn-out consideration-High end | $ 9,800,000 | |||||||||
Strategic Sourcing Excellence LLC | Call Option | Scenario, Forecast | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity method investment ownership percentage | 49.00% | |||||||||
Strategic Sourcing Excellence LLC | Put Option | Scenario, Forecast | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Equity method investment ownership percentage | 49.00% | |||||||||
Strategic Sourcing Excellence LLC | Put Option | Scenario, Forecast | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Selling equity holders put option exercise price | $ 2,450,000 | |||||||||
Strategic Sourcing Excellence LLC | Put Option | Scenario, Forecast | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Selling equity holders put option exercise price | $ 2,950,000 | |||||||||
Strategic Sourcing Excellence LLC | Customer Relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible assets | $ 300,000 | |||||||||
Acquired intangible assets, weighted average amortization period | 5 years | |||||||||
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [1] |
Cash And Cash Equivalents [Abstract] | ||||||
Cash and other bank balances | $ 388,186 | $ 422,623 | ||||
Total | $ 388,186 | $ 422,623 | $ 429,795 | $ 450,907 | ||
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. |
Reserve for Doubtful Receivable
Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Receivables [Abstract] | ||||
Opening balance | $ 15,519 | $ 11,530 | $ 11,530 | |
Additions charged to cost and expense | $ 3,120 | [1] | 7,282 | |
Deductions/Effect of exchange rate fluctuations | 121 | (3,293) | ||
Closing balance | $ 15,640 | $ 15,519 | ||
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. |
Accounts Receivable, Net of R60
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | |||
Gross accounts receivable | $ 618,511,000 | $ 630,784,000 | |
Reserve for doubtful receivables | 15,640,000 | 15,519,000 | $ 11,530,000 |
Net accounts receivable | 602,871,000 | 615,265,000 | |
Accounts receivable due after one year | 1,182,000 | 3,272,000 | |
Accounts receivable from related parties | 2,130,000 | 2,490,000 | |
Reserve for doubtful receivables from related parties | $ 0 | $ 0 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative instrument, asset | [1],[2] | $ 87,395 | $ 55,386 |
Total, assets | 87,395 | 55,386 | |
Earnout Consideration | [3],[4] | 21,262 | 22,435 |
Derivative instrument, liability | [2],[3] | 12,762 | 17,353 |
Total, liabilities | 34,024 | 39,788 | |
Redeemable non-controlling interest | [5] | 3,610 | 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] | 87,395 | 55,386 |
Total, assets | 87,395 | 55,386 | |
Derivative instrument, liability | [2],[3] | 12,762 | 17,353 |
Total, liabilities | 12,762 | 17,353 | |
Fair Value, Inputs, Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Earnout Consideration | [3],[4] | 21,262 | 22,435 |
Total, liabilities | 21,262 | 22,435 | |
Redeemable non-controlling interest | [5] | $ 3,610 | $ 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 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. | ||
[5] | The Company’s estimate of the fair value of redeemable non-controlling interest 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. See Note 3—Business Acquisitions. |
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 | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Opening balance | $ 22,435 | $ 22,820 | |
Earn-out consideration payable in connection with acquisitions | 2,320 | 8,120 | |
Payments made on earn-out consideration | (1,206) | (1,557) | |
Changes in fair value of earn-out consideration | [1] | (3,138) | (9,507) |
Others | [2] | 852 | 978 |
Ending balance | $ 21,262 | $ 20,853 | |
[1] | Changes in the fair value of earn-out consideration are reported in other operating (income) expense, net in the consolidated statements of income | ||
[2] | Interest expense is included in interest income (expense), net and the impact of changes in foreign exchange is reported in foreign exchange gains (losses), net in the consolidated statements of income. The cumulative translation adjustment is reported as a component of other comprehensive income (loss). |
Derivative Financial Instrume63
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative [Line Items] | ||
Amount of gain (loss) recognized in income on ineffective portion of derivatives and amount excluded from effectiveness testing | $ 0 | $ 0 |
Forward Foreign Exchange Contracts | Maximum | ||
Derivative [Line Items] | ||
Derivative financial instrument contracts, maturity period | 57 months | |
Interest Rate Swaps | Maximum | ||
Derivative [Line Items] | ||
Derivative financial instrument contracts, maturity period | 57 months |
Aggregate Notional Principal Am
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 74,633,000 | $ 38,034,000 |
United States Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,080,900,000 | 1,108,400,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 56,945,000 | 6,669,000 |
United States Dollars (sell) Mexican Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 6,840,000 | 9,120,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 663,000 | (187,000) |
United States Dollars (sell) Philippines Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 57,600,000 | 70,050,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (1,492,000) | (1,036,000) |
Euro (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 118,018,000 | 138,613,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 7,201,000 | 9,180,000 |
Pound Sterling (buy) United States Dollars (sell) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 22,333,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 151,000 | |
Euro (sell) Romanian Leu (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 22,354,000 | 29,805,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (66,000) | (152,000) |
Japanese Yen (sell) Chinese Renminbi (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 10,373,000 | 77,267,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (2,873,000) | (742,000) |
Pound Sterling (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 106,246,000 | 104,142,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 9,838,000 | 14,228,000 |
Australian Dollars (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 108,097,000 | 114,412,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (3,974,000) | 2,328,000 |
Interest Rate Swap Floating To Fixed [Member] | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 456,810,000 | 456,810,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 8,240,000 | $ 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 | Mar. 31, 2017 | Dec. 31, 2016 |
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | $ 7,034 | $ 809 |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 74 | 237 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 51,638 | 33,921 |
Cash Flow Hedges | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 28,723 | 20,657 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 4,673 | 4,540 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | $ 8,015 | $ 12,576 |
Cash Flow Hedges, Gains (Losses
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Opening balance, before-tax amount | $ 37,461 | $ (30,090) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount | 9,295 | (2,902) |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | 39,508 | (79) |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | 30,213 | 2,823 |
Closing balance, before-tax amount | 67,674 | (27,267) |
Opening balance, tax (expense) or benefit | (13,979) | 9,830 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit | (3,432) | 702 |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | (14,787) | (151) |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | (11,355) | (853) |
Closing balance, tax (expense) or benefit | (25,334) | 8,977 |
Opening balance, net of tax amount | 23,482 | (20,260) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount | 5,863 | (2,200) |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | 24,721 | (230) |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | 18,858 | 1,970 |
Closing balance, net of tax amount | $ 42,340 | $ (18,290) |
Gains or Losses Recorded as Com
Gains or Losses Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $ 39,508 | $ (79) | |
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 9,295 | (2,902) | |
Non designated Hedges, amount of Gain (Loss) recognized in Statement of Income on Derivatives | 8,910 | 1,134 | |
Net revenues | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 3,760 | 3,871 | |
Cost of Revenue | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 4,570 | (5,312) | |
Selling, General and Administrative Expenses | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 1,248 | (1,461) | |
Interest Expense | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | (283) | ||
Forward Foreign Exchange Contracts | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | 39,296 | 1,847 | |
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] | 8,910 | 1,134 |
Interest Rate Swaps | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $ 212 | $ (1,926) | |
[1] | These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid Expenses and Other Cu68
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Advance income and non-income taxes | $ 62,792 | $ 50,676 |
Deferred transition costs | 47,659 | 45,252 |
Derivative instruments | 58,672 | 34,730 |
Prepaid expenses | 21,816 | 22,222 |
Customer acquisition cost | 11,733 | 11,126 |
Employee advances | 6,526 | 6,880 |
Deposits | 4,427 | 2,688 |
Advances to suppliers | 7,142 | 10,059 |
Others | 6,868 | 5,516 |
Prepaid expenses and other current assets, net | $ 227,635 | $ 189,149 |
Property, Plant and Equipment69
Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Abstract] | ||
Property, plant and equipment, gross | $ 634,577 | $ 607,451 |
Less: Accumulated depreciation and amortization | (422,015) | (407,336) |
Property, plant and equipment, net | $ 212,562 | $ 200,115 |
Property, Plant and Equipment70
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 14,139 | $ 13,155 | [1] |
Effect of Reclassification of Foreign Exchange (Gains) Losses | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | (228) | 294 | |
Depreciation Expense on Property, Plant And Equipment | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 11,230 | 11,104 | |
Computer Software Amortization | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 2,679 | $ 2,345 | |
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Opening balance | $ 1,069,408 | $ 1,038,346 |
Goodwill relating to acquisitions consummated during the period | 8,307 | 51,535 |
Goodwill relating to divestitures consummated during the period | (2,226) | |
Impact of measurement period adjustments | 67 | (59) |
Effect of exchange rate fluctuations | 19,547 | (18,188) |
Closing balance | $ 1,097,329 | $ 1,069,408 |
Goodwill and Intangible Asset72
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill deductible for tax purposes | $ 38,027 | $ 39,032 | |||
Amortization of acquired intangible assets | $ 7,242 | $ 6,145 | [1],[2] | ||
Intangible assets write-down | [1] | $ 4,943 | |||
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. | ||||
[2] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Intangible Assets Acquired Eith
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 395,977 | $ 386,130 |
Accumulated amortization | 326,907 | 314,081 |
Net | 69,070 | 72,049 |
Customer-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 317,225 | 310,277 |
Accumulated amortization | 269,000 | 259,460 |
Net | 48,225 | 50,817 |
Marketing-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 42,856 | 42,587 |
Accumulated amortization | 30,527 | 29,277 |
Net | 12,329 | 13,310 |
Other Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 35,896 | 33,266 |
Accumulated amortization | 27,380 | 25,344 |
Net | $ 8,516 | $ 7,922 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2017 | Dec. 31, 2016 | Aug. 30, 2012 | |
Line Of Credit Facility [Line Items] | ||||
Fund-based and non-fund-based credit facilities limits available | $ 15,827,000 | $ 15,382,000 | ||
Utilization of credit facility for non fund-based usage | 11,037,000 | 10,980,000 | ||
Credit facility, amount utilized | 15,978,000 | 160,978,000 | ||
Short-term borrowings | $ 15,000,000 | $ 160,000,000 | ||
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% | ||
Revolving Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 350,000,000 | $ 250,000,000 | ||
Line of credit covenant condition | The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. | |||
Non-Fund-Based Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Credit facility, amount utilized | $ 978,000 | $ 978,000 | ||
Fund-Based Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Margin over LIBOR | 1.50% | 1.50% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)Day | Jun. 30, 2015USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 30, 2012USD ($) | |
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% | ||
Debt discount and underwriting fee | $ 1,481,000 | ||||
New Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Margin over LIBOR | 1.50% | ||||
Credit facility, base rate | 0.50% | ||||
3.70% Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt amortization expense | $ 2,569,000 | ||||
Debt amount outstanding | 347,431,000 | 347,431,000 | |||
Principal amount of senior notes issued | $ 350,000,000 | $ 350,000,000 | |||
Interest rate on senior notes | 3.70% | 3.70% | |||
Proceeds from issue of senior notes | $ 348,519,000 | ||||
Debt discount and underwriting fee | 1,481,000 | ||||
Other debt issuance costs | 1,093,000 | $ 1,093,000 | |||
Total debt issuance cost | $ 2,574,000 | $ 2,574,000 | |||
Debt instrument, maturity date | Apr. 1, 2022 | ||||
Debt instrument description | The Company will pay interest on the notes semi-annually in arrears on April 1 and October 1 of each year, ending on the maturity date of April 1, 2022. | ||||
Debt instrument redemption price percentage | 100.00% | ||||
Debt instrument redemption date | Mar. 1, 2022 | ||||
Debt repurchase price as percentage of aggregate principal value upon certain change of controls | 101.00% | ||||
Maximum increase in downgrade of credit rating of notes to adjust interest rate payable | 2.00% | ||||
Debt instrument, percentage increase in interest payable on notes if exchange offer fails during first 90 days | 0.25% | ||||
Debt instrument, number of days to provide offer to exchange notes for registered notes | Day | 455 | ||||
Debt instrument, percentage increase in interest payable on notes if exchange offer fails, after first 90 days | 0.25% | ||||
Debt instrument, percentage increase in interest payable on notes if exchange offer fails, maximum | 0.50% | ||||
Term Loan Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt amortization expense | $ 2,461,000 | $ 2,667,000 | |||
Debt amount outstanding | $ 727,539,000 | 727,539,000 | $ 737,333,000 | ||
Principal amount of term loan | $ 10,000,000 | ||||
Credit facility, frequency of payments | Quarterly | ||||
Maturity date of term loan agreement | Jun. 30, 2020 | ||||
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 | $ 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) - Term Loan Credit Facility - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2,017 | $ 29,387 | |
2,018 | 39,226 | |
2,019 | 39,272 | |
2,020 | 619,654 | |
Total | $ 727,539 | $ 737,333 |
Accrued Expenses and Other Cu77
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued expenses | $ 155,889 | $ 163,400 |
Accrued employee cost | 109,006 | 179,360 |
Deferred transition revenue | 48,301 | 50,552 |
Statutory liabilities | 46,670 | 36,878 |
Retirement benefits | 18,347 | 17,616 |
Derivative instruments | 4,747 | 4,777 |
Advance from customers | 26,270 | 21,969 |
Earn-out consideration | 6,502 | 6,885 |
Other liabilities | 9,697 | 15,461 |
Capital lease obligations | 1,524 | 1,349 |
Accrued expenses and other current liabilities, net | $ 426,953 | $ 498,247 |
Other Liabilities (Detail)
Other Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued employee cost | $ 12,934 | $ 3,976 |
Deferred transition revenue | 69,414 | 72,560 |
Retirement benefits | 42,159 | 39,020 |
Derivative instruments | 8,015 | 12,576 |
Amount received from GE under indemnification arrangement, pending adjustment | 3,318 | 3,159 |
Advance from customers | 325 | 2,371 |
Earn-out consideration | 14,760 | 15,550 |
Others | 11,872 | 11,078 |
Capital lease obligations | 2,764 | 2,500 |
Other Liabilities | $ 165,561 | $ 162,790 |
Net Defined Benefit Plan Costs
Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | ||
Service costs | $ 1,720 | $ 1,403 |
Interest costs | 734 | 698 |
Amortization of actuarial loss | 205 | 56 |
Expected return on plan assets | (492) | (486) |
Net defined benefit plan costs | $ 2,167 | $ 1,671 |
Amounts Contributed to Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | $ 16,175 | $ 14,505 |
India | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 5,217 | 4,303 |
U.S. | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 4,280 | 3,532 |
U.K. | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 1,720 | 1,652 |
China | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 3,828 | 3,753 |
Other Regions | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | $ 1,130 | $ 1,265 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Apr. 11, 2012 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation cost | $ 4,845,000 | $ 5,250,000 | ||
Options granted, contractual period, years | 10 years | |||
Options granted | 0 | |||
Unrecognized stock-based compensation cost for options | $ 12,130,000 | |||
Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average remaining requisite vesting period | 2 years 8 months 12 days | |||
Restricted Share Units (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average remaining requisite vesting period | 2 years 10 months 24 days | |||
Unrecognized stock-based compensation cost | $ 1,801,000 | |||
Performance Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average remaining requisite vesting period | 2 years 1 month 6 days | |||
Unrecognized stock-based compensation cost | $ 20,044,000 | |||
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) | 55,788 | 30,487 | ||
Compensation expense for ESPP | $ 141,000 | $ 86,000 | ||
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 | |||
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 |
Significant Assumptions used in
Significant Assumptions used in Determination of Fair Value of Options Granted (Detail) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Dividend yield | 0.97% |
Expected life (in months) | 84 months |
Risk-free rate of interest | 2.25% |
Volatility | 24.28% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Shares arising out of options | |||
Outstanding, shares arising out of options, beginning balance | 5,707,690 | ||
Granted, shares arising out of options | 250,000 | ||
Forfeited, shares arising out of options | (55,000) | ||
Exercised, shares arising out of options | (455,835) | ||
Outstanding, shares arising out of options, ending balance | 5,446,855 | 5,707,690 | |
Vested and expected to vest thereafter, shares arising out of options | [1] | 5,183,854 | |
Vested and exercisable, shares arising out of options | 2,365,356 | ||
Weighted average grant-date fair value of options granted during the period | $ 6.62 | ||
Weighted average exercise price | |||
Outstanding weighted average exercise price, beginning balance | 18.65 | ||
Granted, weighted average exercise price | 24.74 | ||
Forfeited, weighted average exercise price | 21.22 | ||
Exercised, weighted average exercise price | 14.36 | ||
Outstanding weighted average exercise price, ending balance | 19.27 | $ 18.65 | |
Vested and expected to vest thereafter, weighted average exercise price | [1] | 19.01 | |
Vested and exercisable, weighted average exercise price | $ 15.89 | ||
Weighted average remaining contractual life (years) | |||
Outstanding weighted average remaining contractual life (years) | 6 years 2 months 12 days | 5 years 9 months 18 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [1] | 6 years 2 months 12 days | |
Vested and exercisable, weighted average remaining contractual life (years) | 4 years 6 months | ||
Aggregate intrinsic value | |||
Exercised, aggregate intrinsic value | $ 4,742 | ||
Outstanding aggregate intrinsic value, ending balance | 31,829 | ||
Vested and expected to vest thereafter, aggregate intrinsic value | [1] | 31,395 | |
Vested and exercisable, aggregate intrinsic value | $ 20,970 | ||
[1] | Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Uni
Summary of Restricted Share Units Granted (Detail) - Restricted Share Units (RSUs) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Number of Restricted Share Units | ||||
Outstanding number of shares (Units), beginning balance | 117,905 | |||
Granted, number of shares (Units) | 24,000 | |||
Vested, number of shares (Units) | [1] | (6,464) | ||
Outstanding number of shares (Units), ending balance | 135,441 | 117,905 | ||
Expected to vest, number of shares (Units) | [2] | 123,798 | ||
Weighted Average Grant Date Fair Value | ||||
Outstanding weighted average grant date fair value, beginning balance | $ 20.65 | |||
Granted, weighted average grant date fair value | 24.74 | |||
Vested, weighted average grant date fair value | [1] | 16.68 | ||
Outstanding weighted average grant date fair value, ending balance | $ 21.56 | $ 20.65 | ||
Shares to be issued on vested awards other than options | 34,035 | 53,546 | ||
Vested in December 31, 2015 | ||||
Weighted Average Grant Date Fair Value | ||||
Vested RSU issued during the period | 53,023 | |||
Vested in December 31, 2016 | ||||
Weighted Average Grant Date Fair Value | ||||
Vested RSU issued during the period | 17,802 | |||
[1] | RSUs that vested during the period were net settled upon vesting by issuing 6,040 shares (net of minimum statutory tax withholding). | |||
[2] | The number of RSUs expected to vest reflects an estimated forfeiture rate. |
Summary of Restricted Share U85
Summary of Restricted Share Units Granted (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2017shares | |
Restricted Share Units (RSUs) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 6,040 |
Summary of Performance Units Ac
Summary of Performance Units Activity (Detail) - Performance Units | 3 Months Ended | |
Mar. 31, 2017$ / sharesshares | ||
Number of Restricted Share Units | ||
Outstanding number of shares (Units), beginning balance | 3,772,128 | |
Granted, number of shares (Units) | 707,092 | |
Vested, number of shares (Units) | (1,136,047) | [1] |
Forfeited, number of shares (Units) | (1,485,337) | [2] |
Outstanding number of shares (Units), ending balance | 1,857,836 | |
Expected to vest, number of shares (Units) | 1,624,573 | [3] |
Weighted Average Grant Date Fair Value | ||
Outstanding weighted average grant date fair value, beginning balance | $ / shares | $ 23.04 | |
Granted, weighted average grant date fair value | $ / shares | 24.74 | |
Vested, weighted average grant date fair value | $ / shares | 16.78 | [1] |
Forfeited, weighted average grant date fair value | $ / shares | 27.82 | [2] |
Outstanding weighted average grant date fair value, ending balance | $ / shares | $ 23.69 | |
Maximum shares eligible to receive | ||
Outstanding maximum shares eligible to receive, beginning balance | 5,524,114 | |
Granted, maximum shares eligible to receive | 1,414,184 | |
Vested, maximum shares eligible to receive | (1,136,047) | [1] |
Forfeited, maximum shares eligible to receive | (1,489,737) | [2] |
Adjustment upon final determination of level of performance goal achievement | (1,747,586) | [4] |
Outstanding maximum shares eligible to receive, ending balance | 2,564,928 | |
[1] | PUs that vested during the period were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). | |
[2] | Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. | |
[3] | The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | |
[4] | Represents the difference between the maximum number of shares achievable under the PUs granted in 2016 and the number of target shares underlying the PUs granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards as certified by the compensation committee based on the Company’s audited financial statements for the year ended December 31, 2016. |
Summary of Performance Units 87
Summary of Performance Units Activity (Parenthetical) (Detail) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares issued, net of minimum statutory withholding taxes | 731,701 | |
Performance Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Forfeited, number of shares (Units) | 1,443,624 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Mar. 29, 2017 | Mar. 28, 2017 | Feb. 28, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Feb. 10, 2017 | Dec. 31, 2016 | |
Class Of Stock [Line Items] | ||||||||
Stock repurchase authorized amount | $ 1,250,000,000 | $ 750,000,000 | ||||||
Additional stock repurchase authorized amount | $ 500,000,000 | |||||||
Aggregate amount of common stock shares repurchased | $ 219,784,000 | $ 33,017,000 | [1] | |||||
Expenses related to stock purchases | 16,000 | 27,000 | ||||||
Quarterly dividend declared | $ 0.06 | |||||||
Planned annual dividend | $ 0.24 | |||||||
Initial dividend paid | $ 11,957,000 | |||||||
Dividend payment date | Mar. 28, 2017 | |||||||
Dividends payable, date of record | Mar. 10, 2017 | |||||||
Dividends payable, date declared | 2017-02 | |||||||
Dividends paid per share | $ 0.06 | |||||||
Retained Earnings | ||||||||
Class Of Stock [Line Items] | ||||||||
Expenses related to stock purchases | 16,000 | $ 27,000 | [2] | |||||
Initial dividend paid | $ 11,957,000 | |||||||
Accelerated Share Repurchase Agreement | ||||||||
Class Of Stock [Line Items] | ||||||||
Aggregate purchase price of common shares | $ 200,000,000 | |||||||
Initial delivery of common shares received | 6,578,947 | |||||||
Initial delivery of common shares received price per share | $ 24.32 | |||||||
Shares repurchased and retired (in shares) | 6,578,947 | |||||||
Common stock shares repurchased price per share | $ 24.32 | |||||||
Aggregate amount of common stock shares repurchased | $ 160,000,000 | |||||||
Aggregate amount of common stock shares repurchased, final payment | $ 40,000,000 | |||||||
Accelerated Share Repurchase Agreement | Retained Earnings | ||||||||
Class Of Stock [Line Items] | ||||||||
Reduction to shareowners' equity | $ 160,000,000 | |||||||
Accelerated Share Repurchase Agreement | Additional Paid- in Capital | ||||||||
Class Of Stock [Line Items] | ||||||||
Reduction to shareowners' equity | $ 40,000,000 | |||||||
Open Market Repurchase | ||||||||
Class Of Stock [Line Items] | ||||||||
Shares repurchased and retired (in shares) | 808,293 | 1,356,199 | ||||||
Common stock shares repurchased price per share | $ 24.48 | $ 24.35 | ||||||
Aggregate amount of common stock shares repurchased | $ 19,784,000 | $ 33,017,000 | ||||||
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. | |||||||
[2] | Net income, additional paid-in capital and retained earnings for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 1,003,048 | 317,081 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Earnings Per Share (Abstract) | |||
Net income available to Genpact Limited common shareholders | $ 53,338 | $ 58,794 | [1] |
Weighted average number of common shares used in computing basic earnings per common share | 199,069,528 | 210,780,165 | [1] |
Dilutive effect of stock-based awards | 3,586,409 | 3,112,799 | |
Weighted average number of common shares used in computing dilutive earnings per common share | 202,655,937 | 213,892,964 | [1] |
Basic | $ 0.27 | $ 0.28 | [1] |
Diluted | $ 0.26 | $ 0.27 | [1] |
[1] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Cost of Revenue (Detail)
Cost of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Component Of Operating Other Cost And Expense [Line Items] | |||
Cost of revenue | $ 383,337 | $ 372,848 | [1] |
Personnel expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Cost of revenue | 269,189 | 254,028 | |
Operational expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Cost of revenue | 102,716 | 107,542 | |
Depreciation and amortization | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Cost of revenue | $ 11,432 | $ 11,278 | |
[1] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Selling, General and Administ92
Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | $ 160,858 | $ 160,149 | [1] |
Personnel expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | 122,569 | 108,400 | |
Operational expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | 35,813 | 49,578 | |
Depreciation and amortization | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | $ 2,476 | $ 2,171 | |
[1] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Other Operating Income (Expense
Other Operating Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Other Income And Expenses [Abstract] | ||||
Other operating (income) expense | $ (4,400) | $ (498) | ||
Provision for Impairment of intangible assets | [1] | 4,943 | ||
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | (3,138) | (9,506) | ||
Other operating (income) expense, net | $ (7,538) | $ (5,061) | [2] | |
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. | |||
[2] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Interest Income (Expense), Ne94
Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Other Income And Expenses [Abstract] | |||
Interest income | $ 1,131 | $ 2,364 | |
Interest expense | (6,624) | (5,202) | |
Interest income (expense), net | $ (5,493) | $ (2,838) | [1] |
[1] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 24,483 | $ 23,467 |
Unrecognized tax benefits that would impact effective tax rate | 23,484 | 22,469 |
Unrecognized tax benefits, interest on income taxes accrued | 4,068 | 3,856 |
Unrecognized tax benefits, excluding exchange rate differences for interest recognized | 34 | (206) |
Accrued penalties | $ 1,000 | $ 977 |
Activities Related to Unrecogni
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Income Tax Uncertainties [Abstract] | |
Beginning balance | $ 23,467 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 515 |
Decrease related to prior year tax positions | (309) |
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (132) |
Effect of exchange rate changes | 942 |
Ending balance | $ 24,483 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Related Party Transaction [Line Items] | ||||
Accounts receivable from related parties | $ 2,130 | $ 2,490 | ||
Recognized loss from investment | 4,558 | $ 2,145 | [1],[2] | |
Investment in equity affiliates | 769 | 4,800 | ||
Affiliate of Significant Shareholder | ||||
Related Party Transaction [Line Items] | ||||
Recognized net revenues | 83 | 79 | ||
Non-Consolidating Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Recognized net revenues | 3,211 | 1,652 | ||
Accounts receivable from related parties | 2,102 | |||
Cost of revenue | 575 | 498 | ||
Selling, general and administrative expenses, net of recovery | 94 | 67 | ||
Investment in equity affiliates | 467 | |||
Recognized loss from investment | 2,821 | |||
Investment in equity affiliates | 769 | $ 4,800 | ||
Cost reimbursements from non-consolidating affiliates | 238 | 329 | ||
Non-Consolidating Affiliates | U.K. | ||||
Related Party Transaction [Line Items] | ||||
Payment to non-consolidating affiliate against consortium relief | 1,307 | |||
Non-Consolidating Affiliates | Prepaid Expenses and Other Current Assets | ||||
Related Party Transaction [Line Items] | ||||
Reimbursements receivable | 238 | |||
Non-Consolidating Affiliates | Accrued Expenses and Other Current Liabilities | ||||
Related Party Transaction [Line Items] | ||||
Payable against consortium relief | $ 2,000 | |||
Significant Shareholder of Company | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses, net of recovery | $ 15 | |||
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. | |||
[2] | Income taxes, net income, and basic and diluted net income per common share for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from January 1, 2016. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | ||
Bank guarantees, outstanding | $ 12,015 | $ 11,958 |
Capital Addition Purchase Commitments | ||
Commitments And Contingencies [Line Items] | ||
Commitments and contingencies | $ 6,843 | $ 5,185 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | May 03, 2017 | Apr. 13, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | [1] | May 09, 2017 |
Subsequent Event [Line Items] | ||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | $ 2,339 | ||||
Subsequent Event | Genpact Limited 2017 Omnibus Incentive Compensation Plan | ||||||
Subsequent Event [Line Items] | ||||||
Common shares available for issuance to employees, directors and consultants | 15,000,000 | |||||
Subsequent Event | Rage Frameworks, Inc. | ||||||
Subsequent Event [Line Items] | ||||||
Date of acquisition | Apr. 13, 2017 | |||||
Ownership percentage acquired | 100.00% | |||||
Payment for business acquisitions, net of cash acquired | $ 125,000 | |||||
Subsequent Event | BrightClaim, LLC and its Associated Company National Vendor, LLC | ||||||
Subsequent Event [Line Items] | ||||||
Date of acquisition | May 3, 2017 | |||||
Ownership percentage acquired | 100.00% | |||||
Payment for business acquisitions, net of cash acquired | $ 55,000 | |||||
[1] | Income taxes, net income and cash flows for the three months ended March 31, 2016 have been restated due to the adoption of ASU No. 2016-09 in 2016 with effect from. January 1, 2016. |