Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | 190,388,217 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Current assets | |||||
Cash and cash equivalents | $ 424,226 | $ 504,468 | $ 388,186 | $ 422,623 | |
Accounts receivable, net | 703,066 | 693,085 | |||
Prepaid expenses and other current assets | 199,208 | [1],[2] | 236,342 | ||
Total current assets | 1,326,500 | 1,433,895 | |||
Property, plant and equipment, net | 205,035 | 207,030 | |||
Deferred tax assets | 81,734 | 76,929 | |||
Investment in equity affiliates | 919 | 886 | |||
Intangible assets, net | 125,781 | 131,590 | |||
Goodwill | 1,337,051 | 1,337,122 | $ 1,069,408 | ||
Contract cost assets | 162,435 | ||||
Other assets | 157,672 | [1],[2] | 262,169 | ||
Total assets | 3,397,127 | 3,449,621 | |||
Current liabilities | |||||
Short-term borrowings | 275,000 | 170,000 | |||
Current portion of long-term debt | 39,237 | 39,226 | |||
Accounts payable | 13,811 | 15,050 | |||
Income taxes payable | 40,026 | 30,026 | |||
Accrued expenses and other current liabilities | 503,116 | [1] | 584,482 | ||
Total current liabilities | 871,190 | 838,784 | |||
Long-term debt, less current portion | 996,999 | 1,006,687 | |||
Deferred tax liabilities | 7,083 | [3] | 6,747 | ||
Other liabilities | 155,858 | [1] | 168,609 | ||
Total liabilities | 2,031,130 | 2,020,827 | |||
Redeemable non-controlling interest | 4,750 | ||||
Shareholders' equity | |||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | |||||
Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 190,613,135 issued and outstanding as of December 31, 2017 and March 31, 2018, respectively | 1,903 | 1,924 | |||
Additional paid-in capital | 1,422,897 | 1,421,368 | |||
Retained earnings | 321,916 | [3] | 355,982 | ||
Accumulated other comprehensive income (loss) | (380,719) | (355,230) | |||
Total equity | 1,365,997 | 1,424,044 | |||
Commitments and contingencies | |||||
Total liabilities, redeemable non-controlling interest and equity | $ 3,397,127 | $ 3,449,621 | |||
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. | ||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 190,613,135 | 192,825,207 |
Common shares, outstanding | 190,613,135 | 192,825,207 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement [Abstract] | |||
Net revenues | $ 688,912 | $ 622,995 | |
Cost of revenue | 444,324 | 383,337 | |
Gross profit | 244,588 | 239,658 | |
Operating expenses: | |||
Selling, general and administrative expenses | 171,109 | [1] | 160,858 |
Amortization of acquired intangible assets | 9,936 | 7,242 | |
Other operating (income) expense, net | (218) | (7,538) | |
Income from operations | 63,761 | 79,096 | |
Foreign exchange gains (losses), net | 4,798 | (4,913) | |
Interest income (expense), net | (8,100) | (5,493) | |
Other income (expense), net | 15,550 | 553 | |
Income before equity-method investment activity, net and income tax expense | 76,009 | 69,243 | |
Equity-method investment activity, net | (4,558) | ||
Income before income tax expense | 76,009 | 64,685 | |
Income tax expense | 12,075 | 12,245 | |
Net income | 63,934 | [2] | 52,440 |
Net loss attributable to redeemable non-controlling interest | 761 | 898 | |
Net income attributable to Genpact Limited shareholders | 64,695 | [2] | 53,338 |
Net income available to Genpact Limited common shareholders | $ 64,695 | $ 53,338 | |
Earnings per common share attributable to Genpact Limited common shareholders | |||
Basic | $ 0.34 | $ 0.27 | |
Diluted | $ 0.33 | $ 0.26 | |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||
Basic | 192,816,626 | 199,069,528 | |
Diluted | 196,288,569 | 202,655,937 | |
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. | ||
[2] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Net Income (loss) | $ 63,934 | [1] | $ 52,440 |
Other comprehensive income: | |||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (18,932) | 18,858 | |
Genpact Limited Shareholders | |||
Net Income (loss) | 64,695 | 53,338 | |
Other comprehensive income: | |||
Currency translation adjustments | (9,335) | 51,627 | |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (18,932) | 18,858 | |
Retirement benefits, net of taxes | 513 | 119 | |
Other comprehensive income (loss) | (27,754) | 70,604 | |
Comprehensive income (loss) | 36,941 | 123,942 | |
Redeemable Non-controlling interest | |||
Net Income (loss) | (761) | (898) | |
Other comprehensive income: | |||
Currency translation adjustments | (424) | (12) | |
Other comprehensive income (loss) | (424) | (12) | |
Comprehensive income (loss) | $ (1,185) | $ (910) | |
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Consolidated Statements of Equi
Consolidated Statements of Equity and Redeemable Non-controlling Interest - USD ($) $ 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 at Dec. 31, 2016 | $ 1,984 | $ 1,384,468 | $ 358,121 | $ (457,925) | $ 1,286,648 | $ 4,520 | ||
Beginning balance, value (in shares) at Dec. 31, 2016 | 198,794,052 | |||||||
Issuance of common shares on exercise of options | $ 5 | 6,540 | 6,545 | |||||
Issuance of common shares on exercise of options (in shares) | 455,835 | |||||||
Issuance of common shares under the employee stock purchase plan | $ 1 | 1,217 | 1,218 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 55,788 | |||||||
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 | $ 7 | (9,946) | (9,939) | |||||
Net settlement on vesting of performance units, shares | 731,701 | |||||||
Stock repurchased and retired | $ (74) | (40,000) | (179,710) | (219,784) | ||||
Stock repurchased and retired, shares | (808,293) | (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 at Mar. 31, 2017 | $ 1,924 | 1,347,265 | 219,776 | (387,321) | 1,181,644 | 3,610 | ||
End balance, value (in shares) at Mar. 31, 2017 | 192,727,001 | |||||||
Beginning balance, value at Dec. 31, 2017 | $ 1,924 | 1,421,368 | 355,982 | (355,230) | 1,424,044 | 4,750 | ||
Beginning balance, value (in shares) at Dec. 31, 2017 | 192,825,207 | 192,825,207 | ||||||
Adoption of ASU (ASU 2018-02) at Dec. 31, 2017 | (2,265) | 2,265 | ||||||
Adoption of ASU (ASU 2014-09) at Dec. 31, 2017 | 17,924 | 17,924 | ||||||
Adjusted balance, value at Dec. 31, 2017 | $ 1,924 | 1,421,368 | 373,906 | (355,230) | 1,441,968 | 4,750 | ||
Issuance of common shares on exercise of options | $ 2 | 2,549 | 2,551 | |||||
Issuance of common shares on exercise of options (in shares) | 161,837 | 161,837 | ||||||
Issuance of common shares under the employee stock purchase plan | $ 1 | 1,650 | 1,651 | |||||
Issuance of common shares under the employee stock purchase plan (in shares) | 58,476 | |||||||
Net settlement on vesting of restricted share units | $ 1 | (1) | ||||||
Net settlement on vesting of restricted share units, shares | 55,631 | |||||||
Net settlement on vesting of performance units | $ 7 | (13,291) | (13,284) | |||||
Net settlement on vesting of performance units, shares | 691,958 | 691,958 | ||||||
Stock repurchased and retired | $ (32) | 4,000 | (99,952) | (95,984) | ||||
Stock repurchased and retired, shares | (3,015,999) | (3,179,974) | ||||||
Expenses related to stock purchase | $ (60) | (60) | (60) | |||||
Stock-based compensation expense | 7,787 | 7,787 | ||||||
Payment for Purchase of redeemable non-controlling interest | (1,165) | (1,165) | (3,565) | |||||
Comprehensive income: | ||||||||
Net income | $ 63,934 | [1] | 64,695 | 64,695 | (761) | |||
Other comprehensive income | (27,754) | (27,754) | $ (424) | |||||
Dividend | (14,408) | (14,408) | ||||||
End balance, value at Mar. 31, 2018 | $ 1,903 | $ 1,422,897 | $ 321,916 | $ (380,719) | $ 1,365,997 | |||
End balance, value (in shares) at Mar. 31, 2018 | 190,613,135 | 190,613,135 | ||||||
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Operating activities | |||
Net income attributable to Genpact Limited shareholders | $ 64,695 | [1] | $ 53,338 |
Net loss attributable to redeemable non-controlling interest | (761) | (898) | |
Net income | 63,934 | [1] | 52,440 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 15,836 | 14,139 | |
Amortization of debt issuance costs | 488 | 375 | |
Amortization of acquired intangible assets | 9,936 | 7,242 | |
Reserve for doubtful receivables | (103) | ||
Unrealized loss (gain) on revaluation of foreign currency asset/liability | (8,525) | 8,757 | |
Equity-method investment activity, net | 4,558 | ||
Stock-based compensation expense | 7,787 | 4,986 | |
Deferred income taxes | (4,625) | (2,890) | |
Others, net | (28) | (4,301) | |
Change in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable | (6,025) | 19,649 | |
Increase in prepaid expenses, other current assets, contract cost assets and other assets | (37,008) | (12,025) | |
Decrease in accounts payable | (1,224) | (928) | |
Decrease in accrued expenses, other current liabilities and other liabilities | (77,734) | [2] | (69,131) |
Increase in income taxes payable | 9,969 | 8,157 | |
Net cash provided by/(used for) operating activities | (27,322) | 31,028 | |
Investing activities | |||
Purchase of property, plant and equipment | (18,706) | (17,084) | |
Payment for internally generated intangible assets | (4,365) | (2,614) | |
Proceeds from sale of property, plant and equipment | 144 | 389 | |
Investment in equity affiliates | (467) | ||
Payment for business acquisitions, net of cash acquired | (9,237) | ||
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Net cash used for investing activities | (27,657) | (29,013) | |
Financing activities | |||
Repayment of capital lease obligations | (537) | (494) | |
Payment of debt issuance costs | (1,481) | ||
Proceeds from long-term debt | 350,000 | ||
Repayment of long-term debt | (10,000) | (10,000) | |
Proceeds from short-term borrowings | 105,000 | 40,000 | |
Repayment of short-term borrowings | (185,000) | ||
Proceeds from issuance of common shares under stock-based compensation plans | 4,202 | 7,761 | |
Payment for net settlement of stock-based awards | (13,284) | (9,939) | |
Payment of earn-out/deferred consideration | (1,476) | (1,097) | |
Dividend paid | (14,408) | (11,957) | |
Payment for stock purchased and retired | (95,984) | (219,784) | |
Payment for expenses related to stock purchase | (60) | (16) | |
Net cash used for financing activities | (26,547) | (42,007) | |
Effect of exchange rate changes | 1,284 | 5,555 | |
Net increase (decrease) in cash and cash equivalents | (81,526) | (39,992) | |
Cash and cash equivalents at the beginning of the period | 504,468 | 422,623 | |
Cash and cash equivalents at the end of the period | 424,226 | 388,186 | |
Supplementary information | |||
Cash paid during the period for interest | 13,194 | 5,324 | |
Cash paid during the period for income taxes | 24,157 | 16,426 | |
Property, plant and equipment acquired under capital lease obligations | $ 297 | $ 576 | |
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. | ||
[2] | Upon the adoption of ASC 606 the Company offset certain contract assets against contract liabilities related to the same contract in an amount of $3,079. |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization The Company is a global professional services firm that drives digitally-led innovation and runs digitally-enabled intelligent operations for its clients, guided by its experience running thousands of processes for hundreds of Fortune Global 500 clients. The Company has over 78,000 employees serving clients in key industry verticals from more than 20 countries. The business of the Company was initially conducted through various entities and divisions of GE. The Company began operating independently in 2004 when GE spun off the Company’s operations. In August 2007, the Company completed an initial public offering of its common shares. In 2012, affiliates of Bain Capital Investors, LLC, or Bain Capital, and their co-investors acquired the majority of the remaining interests held by the Company’s initial investors. |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017. 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, determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, variable consideration, and other obligations for revenue recognition 2. Summary of significant accounting policies (Continued) and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally 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 2. Summary of significant accounting policies (Continued) Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally 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 11% and 10% of receivables as of December 31, 2017 and March 31, 2018, respectively. GE accounted for 11% and 8% of total revenue for the three months ended March 31, 2017 and 2018, respectively. (e) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial condition, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. (f) Changes in accounting policies Except as described below, the Company has applied accounting policies consistently to all periods presented in these consolidated financial statements. The Company adopted Topic 606, Revenue from Contracts with Customers, effective January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 using the modified retrospective method, which involves recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the Company’s opening equity balance as of January 1, 2018. Therefore, comparative information has not been adjusted and continues to be reported under Topic 605. As a result of the Company’s adoption of this new standard, certain sales incentive programs meet the requirements for capitalization. Such costs are amortized over the period of expected benefit rather than expensed as incurred per the Company’s prior practice. The cumulative impact of the adoption of this standard resulted in an increase in retained earnings of $17,924 as of January 1, 2018 with a corresponding impact on contract cost assets of $23,227 and deferred tax liability of $5,303 2. Summary of significant accounting policies (Continued) Revenue Recognition The Company derives its revenue primarily from business process outsourcing and information technology services, which primarily are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when the promised services are delivered to customers for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those services. Revenues from services rendered under time-and materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered or promised to be delivered to clients or service level agreements that could result in credits or refunds to the customer. Revenues relating to such arrangements are accounted for as variable consideration when the amount of revenue to be recognized can be estimated to the extent that it is probable that a significant reversal of any incremental revenue will not occur The Company has deferred revenue attributable to certain process transition activities, with respect to its customers where such activities do not represent separate performance obligation. Revenues relating to such transition activities are classified under contract liabilities and subsequently recognized ratably over the period in which the related services are performed. Costs relating to such transition activities are fulfillment costs which are directly related to the contract and result in generation or enhancement of resources and are expected to be recoverable under the contract and thereby classified as contract cost assets and are recognized ratably over the estimated expected period of benefit, under Cost of Revenue. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of products or services. Revenue from multiple-element arrangements is recognized, for each element, based on allocation of the transaction price to each performance obligation on a relative standalone basis. Certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription based. Revenue from distinct perpetual licenses is recognized upfront at the point in time when the software is made available to the customer. Revenue from subscription based licenses is recognized as ratably over the subscription term. All incremental and direct costs incurred for acquiring contracts, such as certain sales commission, are classified as contract cost asset. Such costs are amortized over the expected period of benefit and recorded under Selling, General and Administrative Expenses. Other upfront fees paid to customers are classified as contract asset. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and reduced from revenue. Timing of revenue recognition may differ from the timing of invoicing to customers. If payment is received in respect of services prior to the delivery of services, the payment is recognized as an advance from customers and classified as contract liabilities. Contract assets and contract liabilities relating to the same customer contract have been offset and presented on a net basis in the consolidated financial statements. See note 19 for information and related disclosures regarding contract balances. 2. Summary of significant accounting policies (Continued) For a description of the Company’s revenue recognition accounting policy in effect before the Company’s adoption of ASC 606, see Note 3—“Summary of significant accounting policies” under Item 1 —“Financial Statements” and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations”—“Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Significant judgements The Company has contracts with customers which often include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. In instances where the standalone selling price is not directly observable, it is determined using information that may include market conditions and other observable inputs. Customer contracts can include incentive payments received for discrete benefits delivered to clients or service level agreements that could result in credits or refunds to the customer. Such amounts are estimated at contract inception and are adjusted at the end of each reporting period as additional information becomes available only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Impacts on consolidated financial statements The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for the three months ended March 31, 2018. Consolidated Balance sheet As of March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 424,226 $ 424,226 Accounts receivable, net 703,066 703,066 Prepaid expenses and other current assets (a, c) 199,208 74,092 273,300 Total current assets $ 1,326,500 74,092 $ 1,400,592 Property, plant and equipment, net 205,035 205,035 Deferred tax assets 81,734 81,734 Investment in equity affiliates 919 919 Intangible assets, net 125,781 125,781 Goodwill 1,337,051 1,337,051 Contract cost assets (a, b) 162,435 (162,435) — Other assets (a, c) 157,672 89,499 247,171 Total assets $ 3,397,127 1,156 $ 3,398,283 Liabilities and equity Current liabilities Short-term borrowings $ 275,000 $ 275,000 Current portion of long-term debt 39,237 39,237 Accounts payable 13,811 13,811 Income taxes payable 40,026 40,026 Accrued expenses and other current liabilities (c) 503,116 8,429 511,545 Total current liabilities $ 871,190 8,429.00 $ 879,619 Long-term debt, less current portion 996,999 996,999 Deferred tax liabilities (b) 7,083 (5,303) 1,780 Other liabilities (c) 155,858 15,998 171,856 Total liabilities $ 2,031,130 19,124 $ 2,050,254 Redeemable non-controlling interest - - Shareholders' equity Preferred shares, $0.01 par value, 250,000,000 authorized, none issued Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 190,613,135 issued and outstanding as of December 31, 2017 and March 31, 2018, respectively 1,903 1,903 Additional paid-in capital 1,422,897 1,422,897 Retained earnings (b) 321,916 (17,968) 303,948 Accumulated other comprehensive income (loss) (380,719) (380,719) Total equity $ 1,365,997 (17,968) $ 1,348,029 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,397,127 1,156 $ 3,398,283 (a) The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. Consolidated Statement of Income Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 688,912 $ 688,912 Cost of revenue 444,324 444,324 Gross profit $ — $ Operating expenses: Selling, general and administrative expenses (d) 171,109 44 171,153 Amortization of acquired intangible assets 9,936 9,936 Other operating (income) expense, net (218) (218) Income from operations $ (44) $ Foreign exchange gains (losses), net 4,798 4,798 Interest income (expense), net (8,100) (8,100) Other income (expense), net 15,550 15,550 Income before equity-method investment activity, net and income tax expense $ 76,009 (44) $ 75,965 Equity-method investment activity, net — — — Income before income tax expense $ 76,009 (44) $ 75,965 Income tax expense 12,075 — 12,075 Net income $ (44) $ Net loss attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ (44) $ (d) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. Consolidated Statement of Cash flow Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (e) $ 64,695 (44) $ 64,651 Net loss attributable to redeemable non-controlling interest (761) (761) Net income (e) $ 63,934 (44) $ 63,890 Adjustments to reconcile net income to net cash used for operating activities: Depreciation and amortization 15,836 15,836 Amortization of debt issuance costs 488 488 Amortization of acquired intangible assets 9,936 9,936 Reserve for doubtful receivables (103) (103) Unrealized gain on revaluation of foreign currency asset/liability (8,525) (8,525) Stock-based compensation expense 7,787 7,787 Deferred income taxes (4,625) (4,625) Other net (28) (28) Change in operating assets and liabilities: Increase in accounts receivable (6,025) (6,025) Increase in prepaid expenses, other current assets, contract cost assets and other assets (e, f) (37,008) (3,035) (40,043) Decrease in accounts payable (1,224) (1,224) Decrease in accrued expenses, other current liabilities and other liabilities (f) (77,734) 3,079 (74,655) Decrease in income taxes payable 9,969 9,969 Net cash provided used for operating activities $ — $ Investing activities Purchase of property, plant and equipment (18,706) (18,706) Payment for internally generated intangible assets (4,365) (4,365) Proceeds from sale of property, plant and equipment 144 144 Payment for redeemable non-controlling interest (4,730) (4,730) Net cash used for investing activities $ — $ Financing activities Repayment of capital lease obligations (537) (537) Repayment of long-term debt (10,000) (10,000) Proceeds from short-term borrowings 105,000 105,000 Proceeds from issuance of common shares under stock-based compensation plans 4,202 4,202 Payment for net settlement of stock-based awards (13,284) (13,284) Payment of earn-out/deferred consideration (1,476) (1,476) Dividend paid (14,408) (14,408) Payment for stock purchased and retired (95,984) (95,984) Payment for expenses related to stock purchase (60) (60) Net cash used for financing activities $ — $ Effect of exchange rate changes 1,284 1,284 Net increase (decrease) in cash and cash equivalents (81,526) (81,526) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ — $ (e) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. 2. Summary of significant accounting policies (Continued) (g) Recently issued and adopted accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the Company’s consolidated financial statements. The Company has adopted the following recently released accounting standards: The Company adopted Topic 606, Revenue from Contracts with Customers, . In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The new standard provides guidance to “allow a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.” The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and the guidance may be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted. On January 1, 2018, the Company elected the early adoption of ASU 2018-02, which was adopted at the beginning of the period and no prior periods have been adjusted. In addition, the Company has adopted the following recently released accounting 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. Effective January 1, 2018, the Company adopted FASB ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The new guidance revises the definition of a business. The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, consolidation). Effective January 1, 2018, the Company adopted FASB ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” The new guidance eliminates the exception for deferment of tax recognition until the transferred asset is sold to a third party or otherwise recovered through use for all intra-entity sales of assets other than inventory. Effective January 1, 2018, the Company adopted FASB ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the 2. Summary of significant accounting policies (Continued) ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. Effective January 1, 2017, the Company early adopted FASB ASU 2016-15, "Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments." The new guidance is intended to reduce diversity in how certain transactions are classified in the statement of cash flows. The following recently released accounting standards have not yet been adopted by the Company: In February 2016, the FASB issued ASU No. 2016-02, “Leases.” The core principle of the ASU is that a lessee should recognize the assets and liabilities that arise from its leases other than those that meet the definition of a short-term lease. The ASU requires extensive qualitative and quantitative disclosures, including with respect to significant judgments made by management. Subsequently, the FASB issued ASU No. 2017-13, in September 2017, which amends and clarifies ASU 2016-02. The ASU will be effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company expects to complete its assessment of adopting ASU No. 2016-02 in the third quarter of 2018. The Company continues to evaluate the impact of its pending adoption of ASU 2016-02 on its consolidated results of operations, cash flows, financial position and disclosures, and the Company’s preliminary assessments are subject to change. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging.” The amendment expands an entity’s ability to hedge accounting to non-financial and financial risk components and requires changes in fair value of hedging instruments to be presented in the same income statement line as the hedged item. The ASU also amends the presentation and disclosure requirements for the effect of hedge accounting. The ASU must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. The ASU is effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures. (h) Reclassification Certain reclassifications have been made in the consolidated financial statements of prior periods to conform to the classification used in the current period. The impact of such reclassifications on the consolidated financial statements is not material. |
Business acquisitions
Business acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business acquisitions | 3. Business acquisitions A. Certain acquisitions (a) 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 equity holders 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 certain measurement period adjustments. 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 equity holders of SSE also provided for contingent earn-out consideration of up to $20,000, payable by the Company to the selling equity holders based on the 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 equity holders’ 49% interest in SSE, was payable only if either the put or call option, each as described below, was exercised. This acquisition enhances the Company’s sourcing and procurement consulting domain expertise. The equity purchase agreement granted the Company a call option to purchase the remaining 49% equity interest in SSE, which option the Company had the right to exercise between January 1, 2018 and January 31, 2018. Since the Company did not exercise its call option during such period, the selling equity holders exercised their put option on March 1, 2018 in accordance with the terms of the equity purchase agreement to require the Company to purchase their 49% interest in SSE for $2,950. The Company also paid $1,780 in earn-out consideration to the selling equity shareholders during the three months ended March 31, 2018. The amount paid in excess of carrying amount has been recorded in additional paid-in capital. 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. (b) TandemSeven, Inc. On September 5, 2017, the Company acquired 100% of the outstanding equity interest in TandemSeven, Inc. (“TandemSeven”), a Massachusetts corporation, for total purchase consideration of $35,637. This amount includes cash consideration of $31,784, net of cash acquired of $3,853, and an adjustment for working capital and indebtedness. During the quarter ended March 31, 2018, the Company recorded certain measurement period adjustments. These adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. TandemSeven’s focus on improving the design of customer experiences complements the Company’s existing capabilities aimed at transforming clients’ processes end-to-end. In connection with the acquisition of TandemSeven, the Company recorded $2,000 in customer-related intangibles, $1,700 in marketing-related intangibles and $800 in technology-related intangible assets, which have a weighted average amortization period of two years. Goodwill arising from the acquisition amounted to $25,227, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents primarily the acquired design expertise, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. 3. Business acquisitions (Continued) Acquisition-related costs of $932 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $7,378, assumed certain liabilities amounting to $1,207 and recognized a net deferred tax liability of $260. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. (c) BrightClaim LLC and associated companies On May 3, 2017, the Company acquired 100% of the outstanding equity interest in each of BrightClaim LLC, a Delaware limited liability company, BrightServe LLC, a Georgia limited liability company, National Vendor LLC, a Delaware limited liability company, and BrightClaim Blocker, Inc., a Delaware corporation (collectively referred to as “BrightClaim”) for total purchase consideration of $56,461, subject to adjustment for certain transaction expenses incurred by BrightClaim in connection with closing. This amount includes cash consideration of $52,395, net of cash acquired of $4,002, and an adjustment for working capital and net debt. The Company paid the sellers total consideration of$56,496. During the quarter ended September 30, 2017, the Company recorded certain measurement period adjustments resulting in a receivable of $35, which had been collected as of March 31, 2018. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. This acquisition enhances the Company’s breadth and depth of service offerings for clients in the insurance industry. In connection with the acquisition of BrightClaim, the Company recorded $8,000 in customer-related intangibles, $3,200 in marketing related intangibles, $2,200 in technology-related intangibles and $200 in other intangibles, which have a weighted average amortization period of four years. Goodwill arising from the acquisition amounted to $42,638, which has been allocated to the Company’s India reporting unit and is partially deductible for tax purposes. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $1,563 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $10,367, assumed certain liabilities amounting to $7,415, and recognized a net deferred tax liability of $2,728. 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. (d) RAGE Frameworks, Inc. On April 13, 2017, the Company acquired 100% of the outstanding equity interest in RAGE Frameworks, Inc. (“RAGE”), a Delaware corporation, for total consideration of $125,089. This amount includes cash consideration of $124,149, net of cash acquired of $1,605, and an adjustment for working capital and indebtedness. During the quarter ended December 31, 2017, the Company recorded certain measurement period adjustments. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. This acquisition enhances the Company’s digital and artificial intelligence capabilities by adding knowledge-based automation technology and services. In connection with the acquisition of RAGE, the Company recorded $1,600 in customer-related intangibles, $600 in marketing-related intangibles, $12,400 in technology-related intangible assets and $100 in other intangible assets, which have a weighted average amortization period of seven years. Goodwill arising from the acquisition amounted to $105,114, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes. The goodwill represents primarily the acquired digital and artificial intelligence capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. 3. Business acquisitions (Continued) Acquisition-related costs of $881 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $13,836 and assumed certain liabilities amounting to $9,654. The Company also recognized a net deferred tax asset of $1,094. 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. (e) Other acquisitions in 2017 In 2017, the Company also completed five individually immaterial business acquisition transactions, namely the acquisition of a supply chain management delivery center in the U.S. from Kraft Foods Group Brands LLC (“U.S. Delivery Center”), the purchase of all of the outstanding equity interest in OnSource, LLC (“OnSource”), the purchase of the IT business of Birlasoft (“Birlasoft”), the purchase of the image processing business of Fiserv Solutions of Australia Pty Ltd. (“Fiserv”) and the purchase of all of the outstanding equity interest in Lease Dimensions, Inc. (“Lease Dimensions”). The aggregate total estimated consideration the Company paid to consummate these acquisitions was $87,586. This aggregate amount includes the estimated fair value of contingent earn-out consideration, cash consideration of $76,612, net of cash acquired of $254, and preliminary adjustments for closing date working capital, indebtedness, value transfer, seller transaction expenses and certain employee-related liabilities. The U.S. Delivery Center acquisition enhances the Company’s supply chain management capabilities for its clients in the consumer packaged goods industry. The OnSource acquisition brings incremental digital capabilities to the Company’s insurance service offerings. The Birlasoft transaction expands the Company’s end-to-end capabilities for its clients in the healthcare and aviation industries. The Fiserv transaction strengthens the Company’s financial services portfolio and expands its Australia footprint. The Lease Dimensions acquisition enhances the Company’s capabilities in commercial lending and leasing. During the quarter ended December 31, 2017, the Company recorded certain measurement period adjustments with respect to the Birlasoft and Fiserv transactions. These measurement period adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. The purchase agreement for the acquisition of the U.S. Delivery Center provides for contingent earn-out consideration ranging from $0 to $10,000, payable by the Company to the seller based on the achievement of certain milestones relative to the thresholds specified in the earn-out calculation. The purchase agreement for the Lease Dimensions acquisition 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. In connection with these transactions, the Company recorded $33,494 in customer-related intangibles, $1,936 in marketing-related intangibles, $2,956 in technology-related intangibles and $100 in other intangibles, which have a weighted average amortization period of five years. Goodwill arising from these acquisitions amounted to $56,521. The goodwill represents primarily the capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. 3. Business acquisitions (Continued) The following table sets forth, with respect to each of the five acquisitions, the acquisition date, goodwill reporting unit and the tax deductibility of the goodwill: Acquisition Acquisition date Goodwill reporting unit Tax deductibility - goodwill U.S. Delivery Center October 16, 2017 India Deductible OnSource July 18, 2017 India Deductible Birlasoft July 18, 2017 IT Services Deductible Fiserv May 11, 2017 India Non-deductible Lease Dimensions February 15, 2017 Americas Non-deductible Acquisition-related costs for these acquisitions, amounting to $2,369 in the aggregate, have been included in selling, general and administrative expenses as incurred. Through these transactions, the Company acquired assets with a value of $10,387, assumed liabilities amounting to $11,239, and recognized a net deferred tax liability of $6,570. The results of operations of the acquired businesses and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the respective dates of the acquisitions. B. Divestiture (a) A portion of IT support business in Europe In November 2017, the Company completed the sale of a portion of its legacy IT support business in Europe (the “Business”). Sale proceeds were $0. During the year ended December 31, 2017, the Business recorded net revenues of $4,546 and a net loss of $9,706. The Company recorded a loss of $5,668 in its consolidated statement of income in connection with the sale of the Business, calculated as follows: Net sale proceeds $ — Net assets of the business, including the translation impact thereof 5,569 Selling expenses 99 Loss on divestiture included in other income (expense), net $ 5,668 |
Cash and cash equivalents
Cash and cash equivalents | 3 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents Cash and cash equivalents as of December 31, 2017 and March 31, 2018 are set out in the table below: As of December 31, As of March 31, 2017 2018 Cash and other bank balances 504,468 424,226 Total $ 504,468 $ 424,226 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 Three months ended March 31, 2018 Opening balance as of January 1 $ 15,519 $ 23,660 Additions due to acquisitions 235 - Additions charged/reversal released to cost and expense 9,819 (103 ) Deductions/effect of exchange rate fluctuations (1,913 ) 1 Closing balance $ 23,660 $ 23,558 Accounts receivable were $716,745 and $726,624, and the reserves for doubtful receivables were $23,660 and $23,558, resulting in net accounts receivable balances of $693,085 and $703,066 as of December 31, 2017 and March 31, 2018, respectively. In addition, accounts receivable due after one year amounting to $1,624 and $1,407 as of December 31, 2017 and March 31, 2018, respectively, are included under other assets in the consolidated balance sheets. Accounts receivable from related parties were $36 and $239 as of December 31, 2017 and March 31, 2018, respectively. |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2018 | |
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 financial assets and liabilities were determined using the following inputs as of December 31, 2017 and March 31, 2018: As of December 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 (Note a,c) $ 73,098 $ — $ 73,098 $ — Total $ 73,098 $ — $ 73,098 $ — Liabilities Earnout consideration (Note b, d) $ 24,732 $ — $ — $ 24,732 Derivative instruments (Note b,c) $ 18,188 $ — $ 18,188 $ — Total $ 42,920 $ — $ 18,188 $ 24,732 Redeemable non-controlling interest (Note e) $ 4,750 $ — $ — $ 4,750 6. Fair value measurements (Continued) As of March 31, 2018 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 (Note a, c) $ 53,587 $ — $ 53,587 $ — Total $ 53,587 $ — $ 53,587 $ — Liabilities Earnout consideration (Note b, d) $ 23,900 — — $ 23,900 Derivative instruments (Note b, c) $ 28,243 $ — $ 28,243 $ — Total $ 52,143 $ — $ 28,243 $ 23,900 (a) (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 is classified in level 3 of the fair value hierarchy. See Note 3—Business Acquisitions. 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, 2017 and 2018: Three months ended March 31, 2017 2018 Opening balance $ 22,435 $ 24,732 Earn-out consideration payable in connection with Acquisitions 2,320 — Payments made on earn-out consideration (1,206 ) (1,476 ) Change in fair value of earn-out consideration (Note a) (3,138 ) 17 Others (Note b) 852 627 Ending balance $ 21,263 $ 23,900 (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, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | 7. Derivative financial instruments The Company is exposed to the risk of rate fluctuations on 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. 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, 2017 As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,289,400 $ 1,376,800 $ 54,398 $ 30,002 United States Dollars (sell) Mexican Peso (buy) 9,000 9,000 (441 ) 417 United States Dollars (sell) Philippines Peso (buy) 76,650 66,300 69 (2,858 ) Euro (sell) United States Dollars (buy) 170,542 153,516 (2,069 ) (5,810 ) Pound Sterling (buy) United States Dollars (sell) 24,041 22,150 253 479 Euro (sell) Romanian Leu (buy) 35,826 33,296 (892 ) (448 ) Japanese Yen (sell) Chinese Renminbi (buy) 60,768 54,781 1,918 491 Pound Sterling (sell) United States Dollars (buy) 80,871 67,532 (2,478 ) (5,317 ) Australian Dollars (sell) United States Dollars (buy) 136,092 114,932 (5,180 ) (3,180 ) Interest rate swaps (floating to fixed) 432,117 425,945 9,332 11,568 54,910 25,344 (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 foreign exchange, interest rate 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. 7. Derivative financial instruments (Continued) 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, 2017 As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 Assets Prepaid expenses and other current assets $ 43,557 $ 32,750 $ 4,635 $ 973 Other assets $ 24,906 $ 19,864 $ — $ — Liabilities Accrued expenses and other current liabilities $ 10,092 $ 13,326 $ 254 $ 1,986 Other liabilities $ 7,842 $ 12,931 $ — $ — 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, 2017 2018 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 Adoption of ASU 2018-02 (note 24) — — — — 2,265 2,265 Net gains (losses) reclassified into statement of income on completion of hedged transactions 9,295 (3,432 ) 5,863 8,279 (1,616 ) 6,663 Changes in fair value of effective portion of outstanding derivatives, net 39,508 (14,787 ) 24,721 (15,893 ) 3,625 (12,269 ) Gain (loss) on cash flow hedging derivatives, net 30,213 (11,355 ) 18,858 (24,172 ) 5,240 (18,932 ) Closing balance $ 67,674 $ (25,334 ) $ 42,340 $ 26,357 $ (6,931 ) $ 19,426 7. Derivative financial instruments (Continued) 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 2017 2018 (Effective Portion) 2017 2018 Forward foreign exchange contracts $ 39,296 $ (18,679 ) Revenue $ 3,760 $ (1,474 ) Interest rate swaps 212 2,786 Cost of revenue 4,570 7,270 Selling, general and administrative expenses 1,248 1,934 Interest expense (283 ) 549 $ 39,508 $ (15,893 ) $ 9,295 $ 8,279 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, 2017 and 2018, respectively. Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended March 31, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2017 2018 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 8,910 $ (4,288 ) $ 8,910 $ (4,288 ) (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, 2018 | |
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, 2017 2018 Advance income and non-income taxes $ 51,832 $ 65,493 Deferred transition costs (Note 19) 62,029 - Contract asset (Note 19) — 15,886 Customer acquisition cost (Note 19) 19,327 — Prepaid expenses 16,944 19,638 Derivative instruments 48,192 33,723 Employee advances 5,014 3,764 Deposits 4,719 7,331 Advances to suppliers 2,705 5,502 Others 25,580 47,871 $ 236,342 $ 199,208 |
Property, plant and equipment,
Property, plant and equipment, net | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | 9. Property, plant and equipment, net The following table provides the gross and net amount of property, plant and equipment: As of December 31, As of March 31, 2017 2018 Property, plant and equipment, gross $ 666,031 $ 673,901 Less: accumulated depreciation and amortization (459,001 ) (468,866 ) Property, plant and equipment, net $ 207,030 $ 205,035 Depreciation expense on property, plant and equipment for the three months ended March 31, 2017 and 2018 was $11,230 and $12,275, respectively. Computer software amortization for the three months ended March 31, 2017 and 2018 amounted to $2,679 and $3,212, 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 |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 and three months ended March 31, 2018: As of December 31, As of March 31, 2017 2018 Opening balance $ 1,069,408 $ 1,337,122 Goodwill relating to acquisitions consummated during the period 229,745 — Impact of measurement period adjustments (106 ) (83 ) Effect of exchange rate fluctuations 38,075 12 Closing balance $ 1,337,122 $ 1,337,051 10. Goodwill and intangible assets (Continued) The total amount of goodwill deductible for tax purposes was $120,617 and $121,774 as of December 31, 2017 and March 31, 2018, respectively. The Company’s intangible assets are as follows: As of December 31, 2017 As of March 31, 2018 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 369,173 $ 293,029 $ 76,144 $ 367,640 $ 298,048 $ 69,592 Marketing-related intangible assets 52,443 $ 39,212 13,231 52,165 39,538 12,627 Technology-related intangible assets 54,189 28,278 25,911 55,101 32,135 22,966 Other intangible assets 3,081 2,314 $ 767 2,460 1,710 750 Intangible assets under development 15,537 — $ 15,537 19,846 — 19,846 494,423 362,833 $ 131,590 $ 497,212 $ 371,431 $ 125,781 Amortization expenses for intangible assets disclosed in the Consolidated Statements of Income under amortization of intangible assets for the three months ended March 31, 2017 and 2018 were $7,242 and $9,936, respectively. Amortization expenses for technology-related, internally-developed intangible assets disclosed in the Consolidated Statements of Income under cost of revenue and selling, general and administrative expense for the three months ended March 31, 2017, and 2018 were $0, and $400 respectively. |
Short-term borrowings
Short-term borrowings | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 and March 31, 2018, the limits available were $15,064 and $14,311, respectively, of which $7,900 and $7,312 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. As of December 31, 2017 and March 31, 2018, a total of $170,978 and $276,073 respectively, was utilized, of which $170,000 and $275,000 respectively, constituted funded drawdown and $978 and $1,073, 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, 2017 and March 31, 2018. The unutilized amount on the revolving facility bore a commitment fee of 0.25% as of December 31, 2017 and March 31, 2018. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the three months ended March 31, 2018, the Company was in compliance with the financial covenants. |
Long-term debt
Long-term debt | 3 Months Ended |
Mar. 31, 2018 | |
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 then current credit rating, the applicable interest rate is equal to LIBOR plus 1.50% per annum. The credit agreement contains certain customary covenants, and during the three months ended March 31, 2018, the Company was in compliance with the financial covenants of the credit agreement. As of December 31, 2017 and March 31, 2018, the amount outstanding under the term loan, net of debt amortization expense of $1,848 and $1,654, was $698,152 and $688,346, respectively. As of December 31, 2017 and March 31, 2018, 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, 2018 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 outstanding as of March 31, 2018, net of debt amortization expense, is as follows: Year ended Amount 2018 29,421 2019 39,272 2020 619,653 Total $ 688,346 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, net of an underwriting fee of $1,481. In connection with the offering, the Company incurred other debt issuance costs of $1,161. The total debt issuance cost of $2,642 is being amortized over the life of the notes as additional interest expense. As of December 31, 2017 and March 31, 2018, the amount outstanding under the notes, net of debt amortization expense of $2,239 and $2,110, was $347,761 and $347,890 respectively, 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 and during the three months ended March 31, 2018, the Company was in compliance with the covenants. 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, 2018 | |
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, 2017 2018 Accrued expenses $ 204,997 $ 183,777 Accrued employee cost 204,506 123,076 Earn-out consideration 14,928 18,161 Statutory liabilities 36,283 48,371 Retirement benefits 21,074 21,455 Derivative instruments 10,346 15,312 Advance from customers (note 19) 25,476 — Contract liabilities (note 19) — 81,515 Deferred transition revenue (note 19) 52,233 — Other liabilities 13,093 9,953 Capital lease obligations 1,546 1,496 $ 584,482 $ 503,116 |
Other liabilities
Other liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 14. Other liabilities Other liabilities consist of the following: As of December 31, As of March 31, 2017 2018 Accrued employee cost $ 14,020 $ 14,877 Earn-out consideration 9,804 5,739 Retirement benefits 40,520 43,235 Derivative instruments 7,842 12,931 Advance from customers (note 19) 790 — Contract liabilities (note 19) — 55,484 Deferred transition revenue (note 19) 70,900 — Others 22,069 21,187 Capital lease obligations 2,664 2,405 $ 168,609 $ 155,858 |
Employee benefit plans
Employee benefit plans | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 and 2018 include the following components: Three months ended March 31, 2017 2018 Service costs $ 1,720 $ 1,995 Interest costs 734 995 Amortization of actuarial loss 205 320 Expected return on plan assets (492 ) (736 ) Net defined benefit plan costs $ 2,167 $ 2,574 For the three months ended March 31, 2017 and 2018, all of the components of net defined benefit plan costs other than service costs were recorded in “cost of revenue” and “selling, general and administrative expenses” in the Consolidated Statement of Income. Defined contribution plans During the three months ended March 31, 2017 and 2018, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended March 31, 2017 2018 India $ 5,217 $ 5,944 U.S. 4,280 4,599 U.K. 1,720 2,137 China 3,828 4,394 Other regions 1,130 1,160 Total $ 16,175 $ 18,234 |
Stock-based compensation
Stock-based compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | 16. Stock-based compensation The Company has issued options under the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) and the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”) to eligible persons, including employees, directors and certain other persons associated with the Company. Under the 2007 Omnibus Plan, shares underlying options forfeited, expired, terminated or cancelled under any of the Company’s predecessor plans were added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares. On May 9, 2017, the Company’s shareholders approved the adoption of the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”), pursuant to which 15,000,000 Company common shares are available for issuance. No grants may be made under the 2007 Omnibus Plan after the date of adoption of the 2017 Omnibus Plan. Grants that were outstanding under the 2007 Omnibus Plan as of the Company’s adoption of the 2017 Omnibus Plan remain subject to the terms of the 2007 Omnibus Plan. Stock-based compensation costs relating to the foregoing plans during the three months ended March 31, 2017 and 2018 were $4,845 and $7,597, respectively. These costs have been allocated to cost of revenue and selling, general, and administrative expenses. Stock options All options granted under the 2007 and 2017 Omnibus Plans are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. Compensation cost is determined at the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model. The following table shows the significant assumptions used in determining 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, 2018. Three months ended March 31, 2017 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, 2018 is set out below: Three months ended March 31, 2018 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2018 5,134,645 $ 19.52 5.6 $ — Granted — — — — Forfeited — — — — Expired — — — — Exercised (161,837 ) 15.76 — 2,626 Outstanding as of March 31, 2018 4,972,808 $ 19.64 5.4 $ 61,401 Vested as of March 31, 2018 and expected to vest thereafter (Note a) 4,843,888 $ 19.49 5.4 $ 60,526 Vested and exercisable as of March 31, 2018 3,592,809 $ 17.63 4.4 $ 51,599 Weighted average grant date fair value of grants during the period $ — (a) Options expected to vest reflect an estimated forfeiture rate. As of March 31, 2018, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $5,708, 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 and 2017 Omnibus Plans. Each RSU represents the right to receive one common share. The fair value of each RSU is the market price of one common share of the Company on the date of the grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSUs granted during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted — — Vested (Note a) (58,875 ) 23.99 Forfeited (4,500) 24.59 Outstanding as of March 31, 2018 1,541,876 $ 26.26 Expected to vest (Note b) 1,337,172 (a) 6,000 RSUs that vested during the period were net settled upon vesting by issuing 3,576 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, shares in respect of which will be issuable on December 31, 2018 after withholding shares to the extent of minimum statutory withholding taxes. (b) The number of RSUs expected to vest reflects an estimated forfeiture rate. 52,482 RSUs vested in the year ended December 31, 2016, in respect of which 52,055 shares were issued during the three months ended March 31, 2018 after withholding shares to the extent of minimum statutory withholding taxes. 16. Stock-based compensation (Continued) As of March 31, 2018, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $23,703, which will be recognized over the weighted average remaining requisite vesting period of 2.7 years. Performance units The Company also grants stock awards in the form of performance units, or PUs, and has granted PUs under both the 2007 and 2017 Omnibus Plans. Each PU represents the right to receive one common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plans are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. During the performance period, the Company’s estimate of the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2018 2,900,940 $ 24.40 2,900,940 Granted — — — Vested (Note a) (1,087,751) 22.73 (1,087,751) Forfeited (78,304 ) 24.92 (78,304 ) Adjustment upon final determination of level of performance goal achievement (Note b) (4,597 ) 25.22 Adjustment upon final determination of level of performance goal achievement (Note b) (4,597 ) Outstanding as of March 31, 2018 1,730,288 $ 25.43 1,730,288 Expected to vest (Note c) 1,524,101 (a) PUs that vested during the period were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). (b) Represents an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. (c) The number of PUs expected to vest has been adjusted by an estimated forfeiture rate. As of March 31, 2018, the total remaining unrecognized stock-based compensation cost related to PUs amounted to $25,194, which will be recognized over the weighted average remaining requisite vesting period of 1.8 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”). In April 2018, these plans were amended and restated, and their terms were extended to August 31, 2018. 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, 2017 and 2018, 55,788 and 58,476 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 the three months ended March 31, 2017 and 2018 was $141 and $190, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital stock
Capital stock | 3 Months Ended |
Mar. 31, 2018 | |
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. Pursuant to the ASR agreement, as amended in November, 2017, the Company paid the aggregate purchase price to the Dealer upfront and received an initial delivery of 6,578,947 common shares on March 30, 2017, an additional delivery of 350,006 common shares on December 29, 2017 and a final delivery of 163,975 common shares on January 17, 2018 upon final settlement of the transaction. The weighted average price per share of the common shares delivered was $28.20. The Company’s purchase of its common shares under the ASR has been recorded as a reduction in retained earnings. All repurchased shares have been retired. The final number of common shares repurchased by the Company under the ASR agreement was based on the volume-weighted average share price of the Company’s common shares during the term of the transaction, less a discount and subject to adjustments pursuant to the terms of the ASR agreement. The ASR agreement contained 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, 2017 and March 31, 2018, the Company also purchased 808,293 and 3,015,999 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, 2017 and March 31, 2018, $16 and $60, 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 paid a regular quarterly cash dividend of $0.06 per share to holders of its common shares, representing an 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. On February 12, 2018, the Company announced that its Board of Directors had approved a 25% increase in its quarterly cash dividend to $0.075 per share, up from $0.06 per share in 2017, representing a planned annual dividend of $0.30 per common share, up from $0.24 per share in 2017, payable to holders of the Company’s common shares. On March 21, 2018, the Company paid a dividend of $0.075 per share, amounting to $14,408 in the aggregate, to shareholders of record as of March 9, 2018. |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2018 | |
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 1,003,048 and 660,000 for the three months ended March 31, 2017 and 2018, respectively. Three months ended March 31, 2017 2018 Net income available to Genpact Limited common shareholders $ 53,338 $ 64,695 Weighted average number of common shares used in computing basic earnings per common share 199,069,528 192,816,626 Dilutive effect of stock-based awards 3,586,409 3,471,943 Weighted average number of common shares used in computing dilutive earnings per common share 202,655,937 196,288,569 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.27 $ 0.34 Diluted $ 0.26 $ 0.33 |
Net revenues
Net revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenues [Abstract] | |
Net revenues | 19. Disaggregation of revenue In the following tables, revenue is disaggregated by customer classification, service type, major industries serviced and location of service delivery centers. Three months ended March 31, 2017 2018 GE $ 69,254 $ 58,049 Global Clients 553,741 630,863 Total net revenues $ 622,995 $ 688,912 Three months ended March 31, 2017 2018 Business process outsourcing $ 511,283 $ 574,061 Information technology services 111,712 114,851 Total net revenues $ 622,995 $ 688,912 19. Three months ended March 31, 2017 2018 Banking, financial services and insurance $ 247,012 $ 275,627 Manufacturing, including pharmaceuticals and medical equipment manufacturing 229,214 247,125 Technology, healthcare and other services 146,769 166,160 Total net revenues $ 622,995 $ 688,912 Three months ended March 31, 2017 2018 India $ 411,055 $ 389,134 Asia, other than India 66,662 79,461 North and Latin America 85,042 152,280 Europe 60,236 68,037 Total net revenues $ 622,995 $ 688,912 Contract balances Accounts receivable include amounts for services that the Company has performed but for which payment has not been received. The Company typically follows a 30-day billing cycle and, as such, at any point in time may have accrued up to 30 days of revenues that have not been billed. The Company has determined in instances where the timing of revenue recognition differs from the timing of invoicing, the contracts generally do not include a significant financing component. Refer to note 4 for details on the Company’s accounts receivable and reserve for doubtful receivables. The following table provides details of the Company’s contract liabilities: Description Three months ended March 31, 2018 Advances from customers Deferred transition revenue Opening balance as of January 1, 2018 $ 26,266 $ 101,785 Additions 11,248 11,083 Revenue recognized (2,944) (10,430) Currency translation adjustments — (10) Closing balance as of March 31, 2018 $ 34,570 $ 102,428 19. The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of March 31, 2018: Description Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 102,428 $ 47,714 $ 47,818 $ 6,676 $ 220 The following table provides details of the Company’s contract assets: Description Three months ended March 31, 2018 Opening balance as of January 1, 2018 $ 43,366 Additions 10,839 Reduction in revenue recognized (5,902) Closing balance as of March 31, 2018 $ 48,303 The following table provides details of the Company’s contract cost assets: Description Three months ended March 31, 2018 Sales incentive programs Transition activities Opening balance as of January 1, 2018 $ 23,227 $ 139,284 Closing balance as of March 31, 2018 23,271 139,164 Amortization during three months ended March 31, 2018 3,239 11,579 |
Cost of revenue
Cost of revenue | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | 20. Cost of revenue Cost of revenue consists of the following: Three months ended March 31, 2017 2018 Personnel expenses $ 269,189 $ 310,132 Operational expenses 102,716 121,357 Depreciation and amortization 11,432 12,835 $ 383,337 $ 444,324 |
Selling, general and administra
Selling, general and administrative expenses | 3 Months Ended |
Mar. 31, 2018 | |
Selling General And Administrative Expenses [Abstract] | |
Selling, general and administrative expenses | 21. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Three months ended March 31, 2017 2018 Personnel expenses $ 122,569 $ 128,068 Operational expenses 35,813 40,389 Depreciation and amortization 2,476 2,652 $ 160,858 $ 171,109 |
Other operating (income) expens
Other operating (income) expense, net | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other operating (income) expense, net | 22. Other operating (income) expense, net Three months ended March 31, 2017 2018 Other operating (income) expense $ (4,400 ) $ (235 ) Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) $ (3,138 ) $ 17 Other operating (income) expense, net $ (7,538 ) $ (218 ) |
Interest income (expense), net
Interest income (expense), net | 3 Months Ended |
Mar. 31, 2018 | |
Banking And Thrift Interest [Abstract] | |
Interest Income (expense), net | 23. Interest income (expense), net Three months ended March 31, 2017 2018 Interest income $ 1,131 $ 3,370 Interest expense (6,624 ) (11,470 ) Interest income (expense), net $ (5,493 ) $ (8,100 ) |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 24. 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. The Company’s effective tax rate, or ETR, is 15.7% in the first quarter of 2018. The quarterly tax expense includes certain discrete items recorded in the first quarter amounting to $2,746, resulting in lower tax expense. The Company recognized tax benefits, including deductions for equity-based compensation expenses recorded upon vesting of equity awards (“excess tax benefits”) and employment-related tax deductions in India. The tax benefits were partly offset by the partial expiry of tax holidays in India and changes in jurisdictional mix of income. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code. The Tax Act also establishes new tax laws that will affect 2018 and subsequent years, including a reduction in the U.S. federal corporate income tax rate from 35% to 21%. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. The Company’s estimate of transition tax on mandatory repatriation introduced under the Tax Act was provisional as of December 31, 2017 and remains provisional as of March 31, 2018 based on information available as of March 31, 2018. The Company has not recorded any tax liability for transition tax as of December 31, 2017 and March 31, 2018 pending the calculation of the earnings and profit pool of its controlled foreign corporations. The Company will recognize any changes to provisional amounts as it refines its estimates and interpretations of the application of the Tax Act. The Company expects to complete its analysis of the provisional items during the second half of 2018. The effects of other provisions of the Tax Act are not expected to have a material impact on the Company’s consolidated financial statements for the quarter ended March 31, 2018. 24. Income taxes (continued) The Company reports its gain/loss on derivatives designated as cash flow hedges, actuarial gain/loss on retirement benefits and currency translation adjustment, net of taxes to the extent applicable, in accumulated other comprehensive income. The Company follows the specific identification approach for releasing stranded tax effects from accumulated other comprehensive income (loss) (“AOCI”) upon recognition of these AOCI items in the statement of income. As of December 31, 2017, due to a reduction in the U.S. federal corporate income tax rate under the Tax Act, the Company revalued its net deferred tax assets, including deferred tax liabilities recorded through AOCI. Based on this revaluation, the Company recorded a tax gain of $2,265 relating to derivatives, reducing its net deferred tax liability balance, which was recorded as an income tax benefit in the continuing operations for the year ended December 31, 2017. In the quarter ended March 31, 2018, the Company elected to early adopt ASU 2018-02, effective January 1, 2018, and made an election to reclassify the stranded income tax effects of the Tax Act from AOCI to retained earnings for all items of AOCI. The Company has elected to adopt the new guidance at the beginning of the period, and no prior periods have been adjusted. Accordingly, a stranded tax effect in AOCI of $2,265 resulting from the Tax Act has been adjusted through retained earnings. As of December 31, 2017, the Company had unrecognized tax benefits amounting to $26,060, including an amount of $24,877, 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, 2018 to March 31, 2018: 2018 Opening balance at January 1 $ 26,060 Increase related to prior year tax positions, including recorded in acquisition accounting 229 Decrease related to prior year tax positions (8 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (384 ) Effect of exchange rate changes (108) Closing balance at March 31 $ 25,789 The Company’s unrecognized tax benefits as of March 31, 2018 include an amount of $24,604, which, if recognized, would impact the effective tax rate. As of March 31, 2018 and December 31, 2017, the Company had accrued approximately $4,806 and $4,614, respectively, in interest relating to unrecognized tax benefits. During the year ended December 31, 2017 and the three months ended March 31, 2018, the company recognized approximately $(224) and $285, respectively, excluding the impact of exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2017 and March 31, 2018, the Company had accrued approximately $1,033 and $1,024, respectively, for penalties. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related party transactions | 25. Related party transactions The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates. The Company’s related party transactions can be categorized as follows: Revenue from services During the three months ended March 31, 2017 and 2018, the Company recognized net revenues of $83 and $304, respectively During the three months ended March 31, 2017, the Company recognized net revenues of $3,211 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, 2017 and 2018, cost of revenue includes an amount of $575 and $191, respectively, Selling, general and administrative expenses The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the three months ended March 31, 2017 and 2018, selling, general and administrative expenses include an amount of $94 and $49, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates. During the three months ended March 31, 2018, the Company engaged a significant shareholder to provide certain services 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 charge of $2,821 related to an investment in one of its non-consolidating affiliates. This charge was included in equity-method investment activity, net in the Company’s consolidated statement of income. As of December 31, 2017 and March 31, 2018, the Company’s investments in its non-consolidating affiliates amounted to $886 and $919, respectively. Others During the three months ended March 31, 2017, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $238. 25. Related party transactions (Continued) During the three months ended March 31, 2017, the Company made payments of $1,307 to one of its non-consolidating affiliates under a tax-sharing arrangement in the U.K. This 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. On June 30, 2017, this non-consolidating affiliate ceased to be a related party. |
Other Income (expense), net
Other Income (expense), net | 3 Months Ended |
Mar. 31, 2018 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | 26. Other Income (expense), net Three months ended March 31, 2017 2018 Government incentives $ — $ 15,500 Other income/(expense) 553 50 Other income (expense), net $ 553 $ 15,550 |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 27. Commitments and contingencies Capital commitments As of December 31, 2017 and March 31, 2018, the Company has committed to spend $8,314 and $7,221, 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 $8,879 and $8,385 as of December 31, 2017 and March 31, 2018, 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, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 28. Subsequent Events Share Repurchase Pursuant to its share repurchase program, the Company repurchased 505,520 of its common shares on the open market between April 1, 2018 and May 10, 2018 at a weighted average price of $31.31 per share for an aggregate cash amount of $15,827. |
Summary of significant accoun36
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017. 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, determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, variable consideration, and other obligations for revenue recognition 2. Summary of significant accounting policies (Continued) and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. |
Business combinations | (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the consolidated statements of income. |
Goodwill | Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. |
Other Intangible Assets | Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally 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 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 11% and 10% of receivables as of December 31, 2017 and March 31, 2018, respectively. GE accounted for 11% and 8% of total revenue for the three months ended March 31, 2017 and 2018, respectively. |
Accounts receivable | (e) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial condition, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. |
Changes in Accounting Policies | (f) Changes in accounting policies Except as described below, the Company has applied accounting policies consistently to all periods presented in these consolidated financial statements. The Company adopted Topic 606, Revenue from Contracts with Customers, effective January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 using the modified retrospective method, which involves recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the Company’s opening equity balance as of January 1, 2018. Therefore, comparative information has not been adjusted and continues to be reported under Topic 605. As a result of the Company’s adoption of this new standard, certain sales incentive programs meet the requirements for capitalization. Such costs are amortized over the period of expected benefit rather than expensed as incurred per the Company’s prior practice. The cumulative impact of the adoption of this standard resulted in an increase in retained earnings of $17,924 as of January 1, 2018 with a corresponding impact on contract cost assets of $23,227 and deferred tax liability of $5,303 |
Revenue recognition | 2. Summary of significant accounting policies (Continued) Revenue Recognition The Company derives its revenue primarily from business process outsourcing and information technology services, which primarily are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when the promised services are delivered to customers for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those services. Revenues from services rendered under time-and materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered or promised to be delivered to clients or service level agreements that could result in credits or refunds to the customer. Revenues relating to such arrangements are accounted for as variable consideration when the amount of revenue to be recognized can be estimated to the extent that it is probable that a significant reversal of any incremental revenue will not occur The Company has deferred revenue attributable to certain process transition activities, with respect to its customers where such activities do not represent separate performance obligation. Revenues relating to such transition activities are classified under contract liabilities and subsequently recognized ratably over the period in which the related services are performed. Costs relating to such transition activities are fulfillment costs which are directly related to the contract and result in generation or enhancement of resources and are expected to be recoverable under the contract and thereby classified as contract cost assets and are recognized ratably over the estimated expected period of benefit, under Cost of Revenue. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of products or services. Revenue from multiple-element arrangements is recognized, for each element, based on allocation of the transaction price to each performance obligation on a relative standalone basis. Certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription based. Revenue from distinct perpetual licenses is recognized upfront at the point in time when the software is made available to the customer. Revenue from subscription based licenses is recognized as ratably over the subscription term. All incremental and direct costs incurred for acquiring contracts, such as certain sales commission, are classified as contract cost asset. Such costs are amortized over the expected period of benefit and recorded under Selling, General and Administrative Expenses. Other upfront fees paid to customers are classified as contract asset. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and reduced from revenue. Timing of revenue recognition may differ from the timing of invoicing to customers. If payment is received in respect of services prior to the delivery of services, the payment is recognized as an advance from customers and classified as contract liabilities. Contract assets and contract liabilities relating to the same customer contract have been offset and presented on a net basis in the consolidated financial statements. See note 19 for information and related disclosures regarding contract balances. 2. Summary of significant accounting policies (Continued) For a description of the Company’s revenue recognition accounting policy in effect before the Company’s adoption of ASC 606, see Note 3—“Summary of significant accounting policies” under Item 1 —“Financial Statements” and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations”—“Critical Accounting Policies and Estimates” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Significant judgements The Company has contracts with customers which often include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. In instances where the standalone selling price is not directly observable, it is determined using information that may include market conditions and other observable inputs. Customer contracts can include incentive payments received for discrete benefits delivered to clients or service level agreements that could result in credits or refunds to the customer. Such amounts are estimated at contract inception and are adjusted at the end of each reporting period as additional information becomes available only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Impacts on consolidated financial statements The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for the three months ended March 31, 2018. Consolidated Balance sheet As of March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 424,226 $ 424,226 Accounts receivable, net 703,066 703,066 Prepaid expenses and other current assets (a, c) 199,208 74,092 273,300 Total current assets $ 1,326,500 74,092 $ 1,400,592 Property, plant and equipment, net 205,035 205,035 Deferred tax assets 81,734 81,734 Investment in equity affiliates 919 919 Intangible assets, net 125,781 125,781 Goodwill 1,337,051 1,337,051 Contract cost assets (a, b) 162,435 (162,435) — Other assets (a, c) 157,672 89,499 247,171 Total assets $ 3,397,127 1,156 $ 3,398,283 Liabilities and equity Current liabilities Short-term borrowings $ 275,000 $ 275,000 Current portion of long-term debt 39,237 39,237 Accounts payable 13,811 13,811 Income taxes payable 40,026 40,026 Accrued expenses and other current liabilities (c) 503,116 8,429 511,545 Total current liabilities $ 871,190 8,429.00 $ 879,619 Long-term debt, less current portion 996,999 996,999 Deferred tax liabilities (b) 7,083 (5,303) 1,780 Other liabilities (c) 155,858 15,998 171,856 Total liabilities $ 2,031,130 19,124 $ 2,050,254 Redeemable non-controlling interest - - Shareholders' equity Preferred shares, $0.01 par value, 250,000,000 authorized, none issued Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 190,613,135 issued and outstanding as of December 31, 2017 and March 31, 2018, respectively 1,903 1,903 Additional paid-in capital 1,422,897 1,422,897 Retained earnings (b) 321,916 (17,968) 303,948 Accumulated other comprehensive income (loss) (380,719) (380,719) Total equity $ 1,365,997 (17,968) $ 1,348,029 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,397,127 1,156 $ 3,398,283 (a) The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. Consolidated Statement of Income Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 688,912 $ 688,912 Cost of revenue 444,324 444,324 Gross profit $ — $ Operating expenses: Selling, general and administrative expenses (d) 171,109 44 171,153 Amortization of acquired intangible assets 9,936 9,936 Other operating (income) expense, net (218) (218) Income from operations $ (44) $ Foreign exchange gains (losses), net 4,798 4,798 Interest income (expense), net (8,100) (8,100) Other income (expense), net 15,550 15,550 Income before equity-method investment activity, net and income tax expense $ 76,009 (44) $ 75,965 Equity-method investment activity, net — — — Income before income tax expense $ 76,009 (44) $ 75,965 Income tax expense 12,075 — 12,075 Net income $ (44) $ Net loss attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ (44) $ (d) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. Consolidated Statement of Cash flow Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (e) $ 64,695 (44) $ 64,651 Net loss attributable to redeemable non-controlling interest (761) (761) Net income (e) $ 63,934 (44) $ 63,890 Adjustments to reconcile net income to net cash used for operating activities: Depreciation and amortization 15,836 15,836 Amortization of debt issuance costs 488 488 Amortization of acquired intangible assets 9,936 9,936 Reserve for doubtful receivables (103) (103) Unrealized gain on revaluation of foreign currency asset/liability (8,525) (8,525) Stock-based compensation expense 7,787 7,787 Deferred income taxes (4,625) (4,625) Other net (28) (28) Change in operating assets and liabilities: Increase in accounts receivable (6,025) (6,025) Increase in prepaid expenses, other current assets, contract cost assets and other assets (e, f) (37,008) (3,035) (40,043) Decrease in accounts payable (1,224) (1,224) Decrease in accrued expenses, other current liabilities and other liabilities (f) (77,734) 3,079 (74,655) Decrease in income taxes payable 9,969 9,969 Net cash provided used for operating activities $ — $ Investing activities Purchase of property, plant and equipment (18,706) (18,706) Payment for internally generated intangible assets (4,365) (4,365) Proceeds from sale of property, plant and equipment 144 144 Payment for redeemable non-controlling interest (4,730) (4,730) Net cash used for investing activities $ — $ Financing activities Repayment of capital lease obligations (537) (537) Repayment of long-term debt (10,000) (10,000) Proceeds from short-term borrowings 105,000 105,000 Proceeds from issuance of common shares under stock-based compensation plans 4,202 4,202 Payment for net settlement of stock-based awards (13,284) (13,284) Payment of earn-out/deferred consideration (1,476) (1,476) Dividend paid (14,408) (14,408) Payment for stock purchased and retired (95,984) (95,984) Payment for expenses related to stock purchase (60) (60) Net cash used for financing activities $ — $ Effect of exchange rate changes 1,284 1,284 Net increase (decrease) in cash and cash equivalents (81,526) (81,526) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ — $ (e) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Recently issued accounting pronouncements | (g) Recently issued and adopted accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the Company’s consolidated financial statements. The Company has adopted the following recently released accounting standards: The Company adopted Topic 606, Revenue from Contracts with Customers, . In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The new standard provides guidance to “allow a reclassification from accumulated other comprehensive income (“AOCI”) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.” The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and the guidance may be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted. On January 1, 2018, the Company elected the early adoption of ASU 2018-02, which was adopted at the beginning of the period and no prior periods have been adjusted. In addition, the Company has adopted the following recently released accounting 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. Effective January 1, 2018, the Company adopted FASB ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.” The new guidance revises the definition of a business. The definition of a business affects many areas of accounting (e.g., acquisitions, disposals, goodwill impairment, consolidation). Effective January 1, 2018, the Company adopted FASB ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory.” The new guidance eliminates the exception for deferment of tax recognition until the transferred asset is sold to a third party or otherwise recovered through use for all intra-entity sales of assets other than inventory. Effective January 1, 2018, the Company adopted FASB ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the 2. Summary of significant accounting policies (Continued) ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. Effective January 1, 2017, the Company early adopted FASB ASU 2016-15, "Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments." The new guidance is intended to reduce diversity in how certain transactions are classified in the statement of cash flows. The following recently released accounting standards have not yet been adopted by the Company: In February 2016, the FASB issued ASU No. 2016-02, “Leases.” The core principle of the ASU is that a lessee should recognize the assets and liabilities that arise from its leases other than those that meet the definition of a short-term lease. The ASU requires extensive qualitative and quantitative disclosures, including with respect to significant judgments made by management. Subsequently, the FASB issued ASU No. 2017-13, in September 2017, which amends and clarifies ASU 2016-02. The ASU will be effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company expects to complete its assessment of adopting ASU No. 2016-02 in the third quarter of 2018. The Company continues to evaluate the impact of its pending adoption of ASU 2016-02 on its consolidated results of operations, cash flows, financial position and disclosures, and the Company’s preliminary assessments are subject to change. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging.” The amendment expands an entity’s ability to hedge accounting to non-financial and financial risk components and requires changes in fair value of hedging instruments to be presented in the same income statement line as the hedged item. The ASU also amends the presentation and disclosure requirements for the effect of hedge accounting. The ASU must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. The ASU is effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures. |
Reclassification | (h) Reclassification Certain reclassifications have been made in the consolidated financial statements of prior periods to conform to the classification used in the current period. The impact of such reclassifications on the consolidated financial statements is not material. |
Summary of significant accoun37
Summary of significant accounting policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Estimated Useful Lives of Intangible Assets Acquired | Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Other intangible assets 2-9 years |
Topic 606 | |
Summary Impacts of Adopting Topic 606 on Consolidated Financial Statements | Impacts on consolidated financial statements The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements for the three months ended March 31, 2018. Consolidated Balance sheet As of March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 424,226 $ 424,226 Accounts receivable, net 703,066 703,066 Prepaid expenses and other current assets (a, c) 199,208 74,092 273,300 Total current assets $ 1,326,500 74,092 $ 1,400,592 Property, plant and equipment, net 205,035 205,035 Deferred tax assets 81,734 81,734 Investment in equity affiliates 919 919 Intangible assets, net 125,781 125,781 Goodwill 1,337,051 1,337,051 Contract cost assets (a, b) 162,435 (162,435) — Other assets (a, c) 157,672 89,499 247,171 Total assets $ 3,397,127 1,156 $ 3,398,283 Liabilities and equity Current liabilities Short-term borrowings $ 275,000 $ 275,000 Current portion of long-term debt 39,237 39,237 Accounts payable 13,811 13,811 Income taxes payable 40,026 40,026 Accrued expenses and other current liabilities (c) 503,116 8,429 511,545 Total current liabilities $ 871,190 8,429.00 $ 879,619 Long-term debt, less current portion 996,999 996,999 Deferred tax liabilities (b) 7,083 (5,303) 1,780 Other liabilities (c) 155,858 15,998 171,856 Total liabilities $ 2,031,130 19,124 $ 2,050,254 Redeemable non-controlling interest - - Shareholders' equity Preferred shares, $0.01 par value, 250,000,000 authorized, none issued Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 190,613,135 issued and outstanding as of December 31, 2017 and March 31, 2018, respectively 1,903 1,903 Additional paid-in capital 1,422,897 1,422,897 Retained earnings (b) 321,916 (17,968) 303,948 Accumulated other comprehensive income (loss) (380,719) (380,719) Total equity $ 1,365,997 (17,968) $ 1,348,029 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,397,127 1,156 $ 3,398,283 (a) The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. Consolidated Statement of Income Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 688,912 $ 688,912 Cost of revenue 444,324 444,324 Gross profit $ — $ Operating expenses: Selling, general and administrative expenses (d) 171,109 44 171,153 Amortization of acquired intangible assets 9,936 9,936 Other operating (income) expense, net (218) (218) Income from operations $ (44) $ Foreign exchange gains (losses), net 4,798 4,798 Interest income (expense), net (8,100) (8,100) Other income (expense), net 15,550 15,550 Income before equity-method investment activity, net and income tax expense $ 76,009 (44) $ 75,965 Equity-method investment activity, net — — — Income before income tax expense $ 76,009 (44) $ 75,965 Income tax expense 12,075 — 12,075 Net income $ (44) $ Net loss attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ (44) $ (d) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. Consolidated Statement of Cash flow Three months ended March 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (e) $ 64,695 (44) $ 64,651 Net loss attributable to redeemable non-controlling interest (761) (761) Net income (e) $ 63,934 (44) $ 63,890 Adjustments to reconcile net income to net cash used for operating activities: Depreciation and amortization 15,836 15,836 Amortization of debt issuance costs 488 488 Amortization of acquired intangible assets 9,936 9,936 Reserve for doubtful receivables (103) (103) Unrealized gain on revaluation of foreign currency asset/liability (8,525) (8,525) Stock-based compensation expense 7,787 7,787 Deferred income taxes (4,625) (4,625) Other net (28) (28) Change in operating assets and liabilities: Increase in accounts receivable (6,025) (6,025) Increase in prepaid expenses, other current assets, contract cost assets and other assets (e, f) (37,008) (3,035) (40,043) Decrease in accounts payable (1,224) (1,224) Decrease in accrued expenses, other current liabilities and other liabilities (f) (77,734) 3,079 (74,655) Decrease in income taxes payable 9,969 9,969 Net cash provided used for operating activities $ — $ Investing activities Purchase of property, plant and equipment (18,706) (18,706) Payment for internally generated intangible assets (4,365) (4,365) Proceeds from sale of property, plant and equipment 144 144 Payment for redeemable non-controlling interest (4,730) (4,730) Net cash used for investing activities $ — $ Financing activities Repayment of capital lease obligations (537) (537) Repayment of long-term debt (10,000) (10,000) Proceeds from short-term borrowings 105,000 105,000 Proceeds from issuance of common shares under stock-based compensation plans 4,202 4,202 Payment for net settlement of stock-based awards (13,284) (13,284) Payment of earn-out/deferred consideration (1,476) (1,476) Dividend paid (14,408) (14,408) Payment for stock purchased and retired (95,984) (95,984) Payment for expenses related to stock purchase (60) (60) Net cash used for financing activities $ — $ Effect of exchange rate changes 1,284 1,284 Net increase (decrease) in cash and cash equivalents (81,526) (81,526) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ — $ (e) During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Business acquisitions (Tables)
Business acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
IT Support Business | Europe | |
Summary of Calculation of Loss on Sale of Business | The Company recorded a loss of $5,668 in its consolidated statement of income in connection with the sale of the Business, calculated as follows: Net sale proceeds $ — Net assets of the business, including the translation impact thereof 5,569 Selling expenses 99 Loss on divestiture included in other income (expense), net $ 5,668 |
Other Acquisitions | |
Business Combination, Acquisition Date, Goodwill Reporting Unit and Goodwill Deductibility for Tax | 3. Business acquisitions (Continued) The following table sets forth, with respect to each of the five acquisitions, the acquisition date, goodwill reporting unit and the tax deductibility of the goodwill: Acquisition Acquisition date Goodwill reporting unit Tax deductibility - goodwill U.S. Delivery Center October 16, 2017 India Deductible OnSource July 18, 2017 India Deductible Birlasoft July 18, 2017 IT Services Deductible Fiserv May 11, 2017 India Non-deductible Lease Dimensions February 15, 2017 Americas Non-deductible |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash And Cash Equivalents | Cash and cash equivalents as of December 31, 2017 and March 31, 2018 are set out in the table below: As of December 31, As of March 31, 2017 2018 Cash and other bank balances 504,468 424,226 Total $ 504,468 $ 424,226 |
Accounts receivable, net of r40
Accounts receivable, net of reserve for doubtful receivables (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Reserve for Doubtful Receivables | The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2017 Three months ended March 31, 2018 Opening balance as of January 1 $ 15,519 $ 23,660 Additions due to acquisitions 235 - Additions charged/reversal released to cost and expense 9,819 (103 ) Deductions/effect of exchange rate fluctuations (1,913 ) 1 Closing balance $ 23,660 $ 23,558 |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 financial assets and liabilities were determined using the following inputs as of December 31, 2017 and March 31, 2018: As of December 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 (Note a,c) $ 73,098 $ — $ 73,098 $ — Total $ 73,098 $ — $ 73,098 $ — Liabilities Earnout consideration (Note b, d) $ 24,732 $ — $ — $ 24,732 Derivative instruments (Note b,c) $ 18,188 $ — $ 18,188 $ — Total $ 42,920 $ — $ 18,188 $ 24,732 Redeemable non-controlling interest (Note e) $ 4,750 $ — $ — $ 4,750 6. Fair value measurements (Continued) As of March 31, 2018 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 (Note a, c) $ 53,587 $ — $ 53,587 $ — Total $ 53,587 $ — $ 53,587 $ — Liabilities Earnout consideration (Note b, d) $ 23,900 — — $ 23,900 Derivative instruments (Note b, c) $ 28,243 $ — $ 28,243 $ — Total $ 52,143 $ — $ 28,243 $ 23,900 (a) (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 is classified in level 3 of the fair value hierarchy. See Note 3—Business Acquisitions. |
Fair Value of Earn-out Consideration | 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, 2017 and 2018: Three months ended March 31, 2017 2018 Opening balance $ 22,435 $ 24,732 Earn-out consideration payable in connection with Acquisitions 2,320 — Payments made on earn-out consideration (1,206 ) (1,476 ) Change in fair value of earn-out consideration (Note a) (3,138 ) 17 Others (Note b) 852 627 Ending balance $ 21,263 $ 23,900 (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 instrume42
Derivative financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure | The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,289,400 $ 1,376,800 $ 54,398 $ 30,002 United States Dollars (sell) Mexican Peso (buy) 9,000 9,000 (441 ) 417 United States Dollars (sell) Philippines Peso (buy) 76,650 66,300 69 (2,858 ) Euro (sell) United States Dollars (buy) 170,542 153,516 (2,069 ) (5,810 ) Pound Sterling (buy) United States Dollars (sell) 24,041 22,150 253 479 Euro (sell) Romanian Leu (buy) 35,826 33,296 (892 ) (448 ) Japanese Yen (sell) Chinese Renminbi (buy) 60,768 54,781 1,918 491 Pound Sterling (sell) United States Dollars (buy) 80,871 67,532 (2,478 ) (5,317 ) Australian Dollars (sell) United States Dollars (buy) 136,092 114,932 (5,180 ) (3,180 ) Interest rate swaps (floating to fixed) 432,117 425,945 9,332 11,568 54,910 25,344 (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 foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. |
Fair Value of Derivative Instruments and Location in Financial Statements | 7. Derivative financial instruments (Continued) 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, 2017 As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 Assets Prepaid expenses and other current assets $ 43,557 $ 32,750 $ 4,635 $ 973 Other assets $ 24,906 $ 19,864 $ — $ — Liabilities Accrued expenses and other current liabilities $ 10,092 $ 13,326 $ 254 $ 1,986 Other liabilities $ 7,842 $ 12,931 $ — $ — |
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, 2017 2018 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 Adoption of ASU 2018-02 (note 24) — — — — 2,265 2,265 Net gains (losses) reclassified into statement of income on completion of hedged transactions 9,295 (3,432 ) 5,863 8,279 (1,616 ) 6,663 Changes in fair value of effective portion of outstanding derivatives, net 39,508 (14,787 ) 24,721 (15,893 ) 3,625 (12,269 ) Gain (loss) on cash flow hedging derivatives, net 30,213 (11,355 ) 18,858 (24,172 ) 5,240 (18,932 ) Closing balance $ 67,674 $ (25,334 ) $ 42,340 $ 26,357 $ (6,931 ) $ 19,426 |
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: 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 2017 2018 (Effective Portion) 2017 2018 Forward foreign exchange contracts $ 39,296 $ (18,679 ) Revenue $ 3,760 $ (1,474 ) Interest rate swaps 212 2,786 Cost of revenue 4,570 7,270 Selling, general and administrative expenses 1,248 1,934 Interest expense (283 ) 549 $ 39,508 $ (15,893 ) $ 9,295 $ 8,279 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, 2017 and 2018, respectively. Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended March 31, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2017 2018 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 8,910 $ (4,288 ) $ 8,910 $ (4,288 ) (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 cu43
Prepaid expenses and other current assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 2018 Advance income and non-income taxes $ 51,832 $ 65,493 Deferred transition costs (Note 19) 62,029 - Contract asset (Note 19) — 15,886 Customer acquisition cost (Note 19) 19,327 — Prepaid expenses 16,944 19,638 Derivative instruments 48,192 33,723 Employee advances 5,014 3,764 Deposits 4,719 7,331 Advances to suppliers 2,705 5,502 Others 25,580 47,871 $ 236,342 $ 199,208 |
Property, plant and equipment44
Property, plant and equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | The following table provides the gross and net amount of property, plant and equipment: As of December 31, As of March 31, 2017 2018 Property, plant and equipment, gross $ 666,031 $ 673,901 Less: accumulated depreciation and amortization (459,001 ) (468,866 ) Property, plant and equipment, net $ 207,030 $ 205,035 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table presents the changes in goodwill for the year ended December 31, 2017 and three months ended March 31, 2018: As of December 31, As of March 31, 2017 2018 Opening balance $ 1,069,408 $ 1,337,122 Goodwill relating to acquisitions consummated during the period 229,745 — Impact of measurement period adjustments (106 ) (83 ) Effect of exchange rate fluctuations 38,075 12 Closing balance $ 1,337,122 $ 1,337,051 |
Summary of Intangible Assets | The Company’s intangible assets are as follows: As of December 31, 2017 As of March 31, 2018 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 369,173 $ 293,029 $ 76,144 $ 367,640 $ 298,048 $ 69,592 Marketing-related intangible assets 52,443 $ 39,212 13,231 52,165 39,538 12,627 Technology-related intangible assets 54,189 28,278 25,911 55,101 32,135 22,966 Other intangible assets 3,081 2,314 $ 767 2,460 1,710 750 Intangible assets under development 15,537 — $ 15,537 19,846 — 19,846 494,423 362,833 $ 131,590 $ 497,212 $ 371,431 $ 125,781 |
Long-term debt (Tables)
Long-term debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Maturity Profile of Term Loan Outstanding, Net of Debt Amortization Expense | The maturity profile of the term loan outstanding as of March 31, 2018, net of debt amortization expense, is as follows: Year ended Amount 2018 29,421 2019 39,272 2020 619,653 Total $ 688,346 |
Accrued expenses and other cu47
Accrued expenses and other current liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 2018 Accrued expenses $ 204,997 $ 183,777 Accrued employee cost 204,506 123,076 Earn-out consideration 14,928 18,161 Statutory liabilities 36,283 48,371 Retirement benefits 21,074 21,455 Derivative instruments 10,346 15,312 Advance from customers (note 19) 25,476 — Contract liabilities (note 19) — 81,515 Deferred transition revenue (note 19) 52,233 — Other liabilities 13,093 9,953 Capital lease obligations 1,546 1,496 $ 584,482 $ 503,116 |
Other liabilities (Tables)
Other liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other liabilities consist of the following: As of December 31, As of March 31, 2017 2018 Accrued employee cost $ 14,020 $ 14,877 Earn-out consideration 9,804 5,739 Retirement benefits 40,520 43,235 Derivative instruments 7,842 12,931 Advance from customers (note 19) 790 — Contract liabilities (note 19) — 55,484 Deferred transition revenue (note 19) 70,900 — Others 22,069 21,187 Capital lease obligations 2,664 2,405 $ 168,609 $ 155,858 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the three months ended March 31, 2017 and 2018 include the following components: Three months ended March 31, 2017 2018 Service costs $ 1,720 $ 1,995 Interest costs 734 995 Amortization of actuarial loss 205 320 Expected return on plan assets (492 ) (736 ) Net defined benefit plan costs $ 2,167 $ 2,574 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the three months ended March 31, 2017 and 2018, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended March 31, 2017 2018 India $ 5,217 $ 5,944 U.S. 4,280 4,599 U.K. 1,720 2,137 China 3,828 4,394 Other regions 1,130 1,160 Total $ 16,175 $ 18,234 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 determining 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, 2018. Three months ended March 31, 2017 Dividend yield 0.97% Expected life (in months) 84 Risk-free rate of interest 2.25% Volatility 24.28% |
Summary of Stock Option Activity | A summary of stock option activity during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2018 5,134,645 $ 19.52 5.6 $ — Granted — — — — Forfeited — — — — Expired — — — — Exercised (161,837 ) 15.76 — 2,626 Outstanding as of March 31, 2018 4,972,808 $ 19.64 5.4 $ 61,401 Vested as of March 31, 2018 and expected to vest thereafter (Note a) 4,843,888 $ 19.49 5.4 $ 60,526 Vested and exercisable as of March 31, 2018 3,592,809 $ 17.63 4.4 $ 51,599 Weighted average grant date fair value of grants during the period $ — (a) Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Units Granted | A summary of RSUs granted during the three months ended March 31, 2018 is set out below: Three months ended March 31, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted — — Vested (Note a) (58,875 ) 23.99 Forfeited (4,500) 24.59 Outstanding as of March 31, 2018 1,541,876 $ 26.26 Expected to vest (Note b) 1,337,172 (a) 6,000 RSUs that vested during the period were net settled upon vesting by issuing 3,576 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, shares in respect of which will be issuable on December 31, 2018 after withholding shares to the extent of minimum statutory withholding taxes. (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, 2018 is set out below: Three months ended March 31, 2018 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2018 2,900,940 $ 24.40 2,900,940 Granted — — — Vested (Note a) (1,087,751) 22.73 (1,087,751) Forfeited (78,304 ) 24.92 (78,304 ) Adjustment upon final determination of level of performance goal achievement (Note b) (4,597 ) 25.22 Adjustment upon final determination of level of performance goal achievement (Note b) (4,597 ) Outstanding as of March 31, 2018 1,730,288 $ 25.43 1,730,288 Expected to vest (Note c) 1,524,101 (a) PUs that vested during the period were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). (b) Represents an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. (c) The number of PUs expected to vest has been adjusted by an estimated forfeiture rate. |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per share | Three months ended March 31, 2017 2018 Net income available to Genpact Limited common shareholders $ 53,338 $ 64,695 Weighted average number of common shares used in computing basic earnings per common share 199,069,528 192,816,626 Dilutive effect of stock-based awards 3,586,409 3,471,943 Weighted average number of common shares used in computing dilutive earnings per common share 202,655,937 196,288,569 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.27 $ 0.34 Diluted $ 0.26 $ 0.33 |
Net revenues (Tables)
Net revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenues [Abstract] | |
Net Revenues Disaggregated by Customers | In the following tables, revenue is disaggregated by customer classification, service type, major industries serviced and location of service delivery centers. Three months ended March 31, 2017 2018 GE $ 69,254 $ 58,049 Global Clients 553,741 630,863 Total net revenues $ 622,995 $ 688,912 |
Net Revenues for Service Type | Three months ended March 31, 2017 2018 Business process outsourcing $ 511,283 $ 574,061 Information technology services 111,712 114,851 Total net revenues $ 622,995 $ 688,912 |
Revenues from Clients Based on Industry Serviced | Three months ended March 31, 2017 2018 Banking, financial services and insurance $ 247,012 $ 275,627 Manufacturing, including pharmaceuticals and medical equipment manufacturing 229,214 247,125 Technology, healthcare and other services 146,769 166,160 Total net revenues $ 622,995 $ 688,912 |
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers | Three months ended March 31, 2017 2018 India $ 411,055 $ 389,134 Asia, other than India 66,662 79,461 North and Latin America 85,042 152,280 Europe 60,236 68,037 Total net revenues $ 622,995 $ 688,912 |
Net Revenues of Contract Liabilities | The following table provides details of the Company’s contract liabilities: Description Three months ended March 31, 2018 Advances from customers Deferred transition revenue Opening balance as of January 1, 2018 $ 26,266 $ 101,785 Additions 11,248 11,083 Revenue recognized (2,944) (10,430) Currency translation adjustments — (10) Closing balance as of March 31, 2018 $ 34,570 $ 102,428 |
Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation | The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of March 31, 2018: Description Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 102,428 $ 47,714 $ 47,818 $ 6,676 $ 220 |
Net Revenues of Contract Assets | The following table provides details of the Company’s contract assets: Description Three months ended March 31, 2018 Opening balance as of January 1, 2018 $ 43,366 Additions 10,839 Reduction in revenue recognized (5,902) Closing balance as of March 31, 2018 $ 48,303 |
Net Revenues of Contract Cost Assets | The following table provides details of the Company’s contract cost assets: Description Three months ended March 31, 2018 Sales incentive programs Transition activities Opening balance as of January 1, 2018 $ 23,227 $ 139,284 Closing balance as of March 31, 2018 23,271 139,164 Amortization during three months ended March 31, 2018 3,239 11,579 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | Cost of revenue consists of the following: Three months ended March 31, 2017 2018 Personnel expenses $ 269,189 $ 310,132 Operational expenses 102,716 121,357 Depreciation and amortization 11,432 12,835 $ 383,337 $ 444,324 |
Selling, general and administ54
Selling, general and administrative expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 2018 Personnel expenses $ 122,569 $ 128,068 Operational expenses 35,813 40,389 Depreciation and amortization 2,476 2,652 $ 160,858 $ 171,109 |
Other operating (income) expe55
Other operating (income) expense, net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Three months ended March 31, 2017 2018 Other operating (income) expense $ (4,400 ) $ (235 ) Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) $ (3,138 ) $ 17 Other operating (income) expense, net $ (7,538 ) $ (218 ) |
Interest income (expense), net
Interest income (expense), net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking And Thrift Interest [Abstract] | |
Interest Income (expense), net | Three months ended March 31, 2017 2018 Interest income $ 1,131 $ 3,370 Interest expense (6,624 ) (11,470 ) Interest income (expense), net $ (5,493 ) $ (8,100 ) |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 to March 31, 2018: 2018 Opening balance at January 1 $ 26,060 Increase related to prior year tax positions, including recorded in acquisition accounting 229 Decrease related to prior year tax positions (8 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (384 ) Effect of exchange rate changes (108) Closing balance at March 31 $ 25,789 |
Other Income (expense), net (Ta
Other Income (expense), net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | Three months ended March 31, 2017 2018 Government incentives $ — $ 15,500 Other income/(expense) 553 50 Other income (expense), net $ 553 $ 15,550 |
Organization - Additional Infor
Organization - Additional Information (Detail) $ in Thousands | Nov. 20, 2017USD ($)shares | Aug. 18, 2017USD ($)shares | Mar. 31, 2018EmployeeCountry |
Organization [Line Items] | |||
Number of employees around the globe, minimum | Employee | 78,000 | ||
Number of countries in which entity operates | Country | 20 | ||
Underwritten Public Offering | |||
Organization [Line Items] | |||
Common shares sold in underwritten public offering, shares | shares | 10,000,000 | 10,000,000 | |
Common shares sold in underwritten public offering, value | $ | $ 0 | $ 0 |
Estimated Useful Lives of Intan
Estimated Useful Lives of Intangible Assets Acquired (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
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 Accoun61
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Cumulative effect of adoption resulted increase in retained earning | $ 321,916 | [1] | $ 355,982 | ||
Impact on contract cost asset | [1],[2] | 162,435 | |||
Impact on deferred tax liabilities | 7,083 | [1] | $ 6,747 | ||
Adjustments | Topic 606 | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Cumulative effect of adoption resulted increase in retained earning | (17,968) | [1] | $ 17,924 | ||
Impact on contract cost asset | (162,435) | [1],[2] | 23,227 | ||
Impact on deferred tax liabilities | (5,303) | [1] | 5,303 | ||
Contract assets and contract liabilities netted off | $ 3,079 | $ 21,348 | |||
General Electric Company | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Percentage of accounts receivables | 10.00% | 11.00% | |||
Percentage of total revenue | 8.00% | 11.00% | |||
[1] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. | ||||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. |
Summary of Significant Accoun62
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Balance Sheet (Detail) - USD ($) | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Current assets | |||||||
Cash and cash equivalents | $ 424,226,000 | $ 504,468,000 | $ 388,186,000 | $ 422,623,000 | |||
Accounts receivable, net | 703,066,000 | 693,085,000 | |||||
Prepaid expenses and other current assets | 199,208,000 | [1],[2] | 236,342,000 | ||||
Total current assets | 1,326,500,000 | 1,433,895,000 | |||||
Property, plant and equipment, net | 205,035,000 | 207,030,000 | |||||
Deferred tax assets | 81,734,000 | 76,929,000 | |||||
Investment in equity affiliates | 919,000 | 886,000 | |||||
Intangible assets, net | 125,781,000 | 131,590,000 | |||||
Goodwill | 1,337,051,000 | 1,337,122,000 | $ 1,069,408,000 | ||||
Contract cost assets | [2],[3] | 162,435,000 | |||||
Other assets | 157,672,000 | [1],[2] | 262,169,000 | ||||
Total assets | 3,397,127,000 | 3,449,621,000 | |||||
Current liabilities | |||||||
Short-term borrowings | 275,000,000 | 170,000,000 | |||||
Current portion of long-term debt | 39,237,000 | 39,226,000 | |||||
Accounts payable | 13,811,000 | 15,050,000 | |||||
Income taxes payable | 40,026,000 | 30,026,000 | |||||
Accrued expenses and other current liabilities | 503,116,000 | [1] | 584,482,000 | ||||
Total current liabilities | 871,190,000 | 838,784,000 | |||||
Long-term debt, less current portion | 996,999,000 | 1,006,687,000 | |||||
Deferred tax liabilities | 7,083,000 | [3] | 6,747,000 | ||||
Other liabilities | 155,858,000 | [1] | 168,609,000 | ||||
Total liabilities | 2,031,130,000 | 2,020,827,000 | |||||
Redeemable non-controlling interest | 4,750,000 | ||||||
Shareholders' equity | |||||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | |||||||
Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 190,613,135 issued and outstanding as of December 31, 2017 and March 31, 2018, respectively | 1,903,000 | 1,924,000 | |||||
Additional paid-in capital | 1,422,897,000 | 1,421,368,000 | |||||
Retained earnings | 321,916,000 | [3] | 355,982,000 | ||||
Accumulated other comprehensive income (loss) | (380,719,000) | (355,230,000) | |||||
Total equity | 1,365,997,000 | 1,424,044,000 | |||||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | 3,397,127,000 | 3,449,621,000 | |||||
ASU 2014-09 | Adjustments | |||||||
Current assets | |||||||
Prepaid expenses and other current assets | [1],[2] | 74,092,000 | |||||
Total current assets | 74,092,000 | ||||||
Contract cost assets | (162,435,000) | [2],[3] | $ 23,227,000 | ||||
Other assets | [1],[2] | 89,499,000 | |||||
Total assets | 1,156,000 | ||||||
Current liabilities | |||||||
Accrued expenses and other current liabilities | [1] | 8,429,000 | |||||
Total current liabilities | 8,429,000 | ||||||
Deferred tax liabilities | (5,303,000) | [3] | 5,303,000 | ||||
Other liabilities | [1] | 15,998,000 | |||||
Total liabilities | 19,124,000 | ||||||
Shareholders' equity | |||||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | |||||||
Retained earnings | (17,968,000) | [3] | $ 17,924,000 | ||||
Total equity | (17,968,000) | ||||||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | 1,156,000 | ||||||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||||
Current assets | |||||||
Cash and cash equivalents | 424,226,000 | $ 504,468,000 | |||||
Accounts receivable, net | 703,066,000 | ||||||
Prepaid expenses and other current assets | [1],[2] | 273,300,000 | |||||
Total current assets | 1,400,592,000 | ||||||
Property, plant and equipment, net | 205,035,000 | ||||||
Deferred tax assets | 81,734,000 | ||||||
Investment in equity affiliates | 919,000 | ||||||
Intangible assets, net | 125,781,000 | ||||||
Goodwill | 1,337,051,000 | ||||||
Other assets | [1],[2] | 247,171,000 | |||||
Total assets | 3,398,283,000 | ||||||
Current liabilities | |||||||
Short-term borrowings | 275,000,000 | ||||||
Current portion of long-term debt | 39,237,000 | ||||||
Accounts payable | 13,811,000 | ||||||
Income taxes payable | 40,026,000 | ||||||
Accrued expenses and other current liabilities | [1] | 511,545,000 | |||||
Total current liabilities | 879,619,000 | ||||||
Long-term debt, less current portion | 996,999,000 | ||||||
Deferred tax liabilities | [3] | 1,780,000 | |||||
Other liabilities | [1] | 171,856,000 | |||||
Total liabilities | 2,050,254,000 | ||||||
Shareholders' equity | |||||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | |||||||
Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 190,613,135 issued and outstanding as of December 31, 2017 and March 31, 2018, respectively | 1,903,000 | ||||||
Additional paid-in capital | 1,422,897,000 | ||||||
Retained earnings | [3] | 303,948,000 | |||||
Accumulated other comprehensive income (loss) | (380,719,000) | ||||||
Total equity | 1,348,029,000 | ||||||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | $ 3,398,283,000 | ||||||
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||||||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. | ||||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. |
Summary of Significant Accoun63
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 of Consolidated Balance Sheet (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | ||
Revenue Recognition [Line Items] | |||||
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 | 190,613,135 | 192,825,207 | |||
Common shares, outstanding | 190,613,135 | 192,825,207 | |||
Impact on contract cost asset | [1],[2] | $ 162,435 | |||
Prepaid expenses and other current assets | 199,208 | [1],[3] | $ 236,342 | ||
Other assets | 157,672 | [1],[3] | 262,169 | ||
Cumulative effect of adoption resulted increase in retained earning | 321,916 | [2] | 355,982 | ||
Impact on deferred tax liabilities | 7,083 | [2] | 6,747 | ||
Accrued expenses and other current liabilities | 503,116 | [3] | 584,482 | ||
Other liabilities | 155,858 | [3] | $ 168,609 | ||
Adjustments | ASU 2014-09 | |||||
Revenue Recognition [Line Items] | |||||
Impact on contract cost asset | (162,435) | [1],[2] | $ 23,227 | ||
Prepaid expenses and other current assets | [1],[3] | 74,092 | |||
Other assets | [1],[3] | 89,499 | |||
Cumulative effect of adoption resulted increase in retained earning | (17,968) | [2] | 17,924 | ||
Impact on deferred tax liabilities | (5,303) | [2] | 5,303 | ||
Accrued expenses and other current liabilities | [3] | 8,429 | |||
Other liabilities | [3] | 15,998 | |||
Adjustments | ASU 2014-09 | Contract Assets | |||||
Revenue Recognition [Line Items] | |||||
Prepaid expenses and other current assets | (8,429) | ||||
Other assets | (15,998) | ||||
Adjustments | ASU 2014-09 | Contract Liabilities | |||||
Revenue Recognition [Line Items] | |||||
Accrued expenses and other current liabilities | (8,429) | ||||
Other liabilities | (15,998) | ||||
Adjustments | ASU 2014-09 | Process Transition Activities | |||||
Revenue Recognition [Line Items] | |||||
Impact on contract cost asset | 139,164 | ||||
Prepaid expenses and other current assets | (65,663) | ||||
Other assets | $ (73,501) | ||||
Adjustments | ASU 2014-09 | Sales Incentive Programs | |||||
Revenue Recognition [Line Items] | |||||
Impact on contract cost asset | 23,227 | ||||
Cumulative effect of adoption resulted increase in retained earning | 17,924 | ||||
Impact on deferred tax liabilities | $ 5,303 | ||||
[1] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. | ||||
[2] | The cumulative impact of the adoption of ASC 606 resulted in an increase of $23,227 in the contract cost asset related to sales incentive programs (excluding the effect of the current period – refer to note d to the table below) as of January 1, 2018 with a corresponding impact of $17,924 on retained earnings (excluding the effect of the current period – refer to note d to the table below) and on deferred tax liability of $5,303. | ||||
[3] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. |
Summary of Significant Accoun64
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Revenue Recognition [Line Items] | ||||
Net revenues | $ 688,912 | |||
Cost of revenue | 444,324 | $ 383,337 | ||
Gross profit | 244,588 | 239,658 | ||
Operating expenses: | ||||
Selling, general and administrative expenses | 171,109 | [1] | 160,858 | |
Amortization of acquired intangible assets | 9,936 | 7,242 | ||
Other operating (income) expense, net | (218) | (7,538) | ||
Income from operations | 63,761 | 79,096 | ||
Foreign exchange gains (losses), net | 4,798 | (4,913) | ||
Interest income (expense), net | (8,100) | (5,493) | ||
Other income (expense), net | 15,550 | 553 | ||
Income before equity-method investment activity, net and income tax expense | 76,009 | 69,243 | ||
Equity-method investment activity, net | (4,558) | |||
Income before income tax expense | 76,009 | 64,685 | ||
Income tax expense | 12,075 | 12,245 | ||
Net income | 63,934 | [2] | 52,440 | |
Net loss attributable to redeemable non-controlling interest | 761 | 898 | ||
Net income attributable to Genpact Limited shareholders | 64,695 | [2] | $ 53,338 | |
ASU 2014-09 | Adjustments | ||||
Operating expenses: | ||||
Selling, general and administrative expenses | [1] | 44 | ||
Income from operations | (44) | |||
Income before equity-method investment activity, net and income tax expense | (44) | |||
Income before income tax expense | (44) | |||
Net income | [2] | (44) | ||
Net income attributable to Genpact Limited shareholders | [2] | (44) | ||
ASU 2014-09 | Balances without adoption of Topic 606 | ||||
Revenue Recognition [Line Items] | ||||
Net revenues | 688,912 | |||
Cost of revenue | 444,324 | |||
Gross profit | 244,588 | |||
Operating expenses: | ||||
Selling, general and administrative expenses | [1] | 171,153 | ||
Amortization of acquired intangible assets | 9,936 | |||
Other operating (income) expense, net | (218) | |||
Income from operations | 63,717 | |||
Foreign exchange gains (losses), net | 4,798 | |||
Interest income (expense), net | (8,100) | |||
Other income (expense), net | 15,550 | |||
Income before equity-method investment activity, net and income tax expense | 75,965 | |||
Income before income tax expense | 75,965 | |||
Income tax expense | 12,075 | |||
Net income | [2] | 63,890 | ||
Net loss attributable to redeemable non-controlling interest | 761 | |||
Net income attributable to Genpact Limited shareholders | [2] | $ 64,651 | ||
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. | |||
[2] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. |
Summary of Significant Accoun65
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Statement of Income (Parenthetical) (Detail) - ASU 2014-09 $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue Recognition [Line Items] | |
Amortized contract cost asset amount | $ 3,239 |
Balances without adoption of Topic 606 | |
Revenue Recognition [Line Items] | |
Amortized contract cost asset amount | 3,283 |
Adjustments | |
Revenue Recognition [Line Items] | |
Amortized contract cost asset amount | $ 44 |
Summary of Significant Accoun66
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Statement of Cash Flow (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | |||
Operating activities | ||||
Net income attributable to Genpact Limited shareholders | $ 64,695 | [1] | $ 53,338 | |
Net loss attributable to redeemable non-controlling interest | (761) | (898) | ||
Net income | 63,934 | [1] | 52,440 | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||
Depreciation and amortization | 15,836 | 14,139 | ||
Amortization of debt issuance costs | 488 | |||
Amortization of acquired intangible assets | 9,936 | 7,242 | ||
Reserve for doubtful receivables | (103) | |||
Unrealized gain on revaluation of foreign currency asset/liability | (8,525) | 8,757 | ||
Stock-based compensation expense | 7,787 | 4,986 | ||
Deferred income taxes | (4,625) | (2,890) | ||
Others, net | (28) | (4,301) | ||
Change in operating assets and liabilities: | ||||
Increase in accounts receivable | (6,025) | 19,649 | ||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [1],[2] | (37,008) | ||
Decrease in accounts payable | (1,224) | (928) | ||
Decrease in accrued expenses, other current liabilities and other liabilities | (77,734) | [2] | (69,131) | |
Decrease in income taxes payable | 9,969 | 8,157 | ||
Net cash provided by/(used for) operating activities | (27,322) | 31,028 | ||
Investing activities | ||||
Purchase of property, plant and equipment | (18,706) | (17,084) | ||
Payment for internally generated intangible assets | (4,365) | (2,614) | ||
Proceeds from sale of property, plant and equipment | 144 | 389 | ||
Payment for redeemable non-controlling interest | (4,730) | |||
Net cash used for investing activities | (27,657) | (29,013) | ||
Financing activities | ||||
Repayment of capital lease obligations | (537) | (494) | ||
Repayment of long-term debt | (10,000) | (10,000) | ||
Proceeds from short-term borrowings | 105,000 | 40,000 | ||
Proceeds from issuance of common shares under stock-based compensation plans | 4,202 | 7,761 | ||
Payment for net settlement of stock-based awards | (13,284) | (9,939) | ||
Payment of earn-out/deferred consideration | (1,476) | (1,097) | ||
Dividend paid | (14,408) | (11,957) | ||
Payment for stock purchased and retired | (95,984) | (219,784) | ||
Payment for expenses related to stock purchase | (60) | (16) | ||
Net cash used for financing activities | (26,547) | (42,007) | ||
Effect of exchange rate changes | 1,284 | 5,555 | ||
Net increase (decrease) in cash and cash equivalents | (81,526) | (39,992) | ||
Cash and cash equivalents at the beginning of the period | 504,468 | 422,623 | ||
Cash and cash equivalents at the end of the period | 424,226 | $ 388,186 | ||
ASU 2014-09 | Adjustments | ||||
Operating activities | ||||
Net income attributable to Genpact Limited shareholders | [1] | (44) | ||
Net income | [1] | (44) | ||
Change in operating assets and liabilities: | ||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [1],[2] | (3,035) | ||
Decrease in accrued expenses, other current liabilities and other liabilities | [2] | 3,079 | ||
ASU 2014-09 | Balances without adoption of Topic 606 | ||||
Operating activities | ||||
Net income attributable to Genpact Limited shareholders | [1] | 64,651 | ||
Net loss attributable to redeemable non-controlling interest | (761) | |||
Net income | [1] | 63,890 | ||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||
Depreciation and amortization | 15,836 | |||
Amortization of debt issuance costs | 488 | |||
Amortization of acquired intangible assets | 9,936 | |||
Reserve for doubtful receivables | (103) | |||
Unrealized gain on revaluation of foreign currency asset/liability | (8,525) | |||
Stock-based compensation expense | 7,787 | |||
Deferred income taxes | (4,625) | |||
Others, net | (28) | |||
Change in operating assets and liabilities: | ||||
Increase in accounts receivable | (6,025) | |||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [1],[2] | (40,043) | ||
Decrease in accounts payable | (1,224) | |||
Decrease in accrued expenses, other current liabilities and other liabilities | [2] | (74,655) | ||
Decrease in income taxes payable | 9,969 | |||
Net cash provided by/(used for) operating activities | (27,322) | |||
Investing activities | ||||
Purchase of property, plant and equipment | (18,706) | |||
Payment for internally generated intangible assets | (4,365) | |||
Proceeds from sale of property, plant and equipment | 144 | |||
Payment for redeemable non-controlling interest | (4,730) | |||
Net cash used for investing activities | (27,657) | |||
Financing activities | ||||
Repayment of capital lease obligations | (537) | |||
Repayment of long-term debt | (10,000) | |||
Proceeds from short-term borrowings | 105,000 | |||
Proceeds from issuance of common shares under stock-based compensation plans | 4,202 | |||
Payment for net settlement of stock-based awards | (13,284) | |||
Payment of earn-out/deferred consideration | (1,476) | |||
Dividend paid | (14,408) | |||
Payment for stock purchased and retired | (95,984) | |||
Payment for expenses related to stock purchase | (60) | |||
Net cash used for financing activities | (26,547) | |||
Effect of exchange rate changes | 1,284 | |||
Net increase (decrease) in cash and cash equivalents | (81,526) | |||
Cash and cash equivalents at the beginning of the period | 504,468 | |||
Cash and cash equivalents at the end of the period | $ 424,226 | |||
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in net adjustment of $44. | |||
[2] | Upon the adoption of ASC 606 the Company offset certain contract assets against contract liabilities related to the same contract in an amount of $3,079. |
Summary of Significant Accoun67
Summary of Significant Accounting Policies - Summarize Impacts of Adopting Topic 606 on Consolidated Statement of Cash Flow (Parenthetical) (Detail) - ASU 2014-09 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
Revenue Recognition [Line Items] | ||
Amortized contract cost asset amount | $ 3,239 | |
Balances without adoption of Topic 606 | ||
Revenue Recognition [Line Items] | ||
Amortized contract cost asset amount | 3,283 | |
Adjustments | ||
Revenue Recognition [Line Items] | ||
Amortized contract cost asset amount | 44 | |
Contract assets and contract liabilities netted off | $ 3,079 | $ 21,348 |
Business Acquisitions - Strateg
Business Acquisitions - Strategic Sourcing Excellence Limited - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 01, 2018 | Jan. 08, 2016 | Mar. 31, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Acquisition related cost | $ 164 | |||||
Acquired assets | 412 | |||||
Liabilities assumed | $ 617 | |||||
Goodwill | $ 1,337,051 | $ 1,337,122 | $ 1,069,408 | |||
Strategic Sourcing Excellence LLC | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition | Jan. 8, 2016 | |||||
Ownership percentage acquired | 51.00% | |||||
Preliminary estimated purchase consideration | $ 14,541 | |||||
Cash consideration to acquired certain assets and assumed certain liabilities | 2,550 | |||||
Contingent earn-out consideration-High end | $ 20,000 | |||||
Equity method investment ownership percentage | 49.00% | |||||
Earn-out consideration to selling equity shareholders | $ 1,780 | |||||
Goodwill | $ 14,445 | |||||
Strategic Sourcing Excellence LLC | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 300 | |||||
Acquired intangible assets, weighted average amortization period | 5 years | |||||
Put Or Call Option | Strategic Sourcing Excellence LLC | ||||||
Business Acquisition [Line Items] | ||||||
Contingent earn-out consideration-High end | $ 9,800 | |||||
Call Option | Strategic Sourcing Excellence LLC | ||||||
Business Acquisition [Line Items] | ||||||
Equity method investment ownership percentage | 49.00% | |||||
Put Option | Strategic Sourcing Excellence LLC | ||||||
Business Acquisition [Line Items] | ||||||
Equity method investment ownership percentage | 49.00% | |||||
Selling equity holders put option exercise price | $ 2,950 |
Business Acquisitions - TandemS
Business Acquisitions - TandemSeven, Inc. - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 05, 2017 | Jan. 08, 2016 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | |||||
Goodwill | $ 1,337,051 | $ 1,337,122 | $ 1,069,408 | |||
Acquisition related cost | $ 164 | |||||
Acquired assets | 412 | |||||
Liabilities assumed | $ 617 | |||||
TandemSeven, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition | Sep. 5, 2017 | |||||
Ownership percentage acquired | 100.00% | |||||
Purchase consideration | $ 35,637 | |||||
Payment for business acquisitions, net of cash acquired | 31,784 | |||||
Cash and cash equivalents | $ 3,853 | |||||
Acquired intangible assets, weighted average amortization period | 2 years | |||||
Goodwill | $ 25,227 | |||||
Acquisition related cost | 932 | |||||
Acquired assets | 7,378 | |||||
Liabilities assumed | 1,207 | |||||
Recognized net deferred tax asset | 260 | |||||
TandemSeven, Inc. | Customer-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 2,000 | |||||
TandemSeven, Inc. | Marketing-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 1,700 | |||||
TandemSeven, Inc. | Technology-related intangible assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 800 |
Business Acquisitions - BrightC
Business Acquisitions - BrightClaim LLC and Associated Companies - Additional Information (Detail) - USD ($) $ in Thousands | May 03, 2017 | Jan. 08, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | |||||
Goodwill | $ 1,337,051 | $ 1,337,122 | $ 1,069,408 | |||
Acquisition related cost | $ 164 | |||||
Acquired assets | 412 | |||||
Liabilities assumed | $ 617 | |||||
Bright Claim L L C And Associated Companies | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition | May 3, 2017 | |||||
Ownership percentage acquired | 100.00% | |||||
Payment for business acquisitions, net of cash acquired | $ 52,395 | |||||
Cash and cash equivalents | 4,002 | |||||
Purchase consideration | $ 56,461 | 56,496 | ||||
Business combination change in contingent consideration receivable | $ 35 | |||||
Acquired intangible assets, weighted average amortization period | 4 years | |||||
Goodwill | $ 42,638 | |||||
Acquisition related cost | 1,563 | |||||
Acquired assets | 10,367 | |||||
Liabilities assumed | 7,415 | |||||
Recognized net deferred tax asset | 2,728 | |||||
Bright Claim L L C And Associated Companies | Customer-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 8,000 | |||||
Bright Claim L L C And Associated Companies | Marketing-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 3,200 | |||||
Bright Claim L L C And Associated Companies | Technology-related intangible assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 2,200 | |||||
Bright Claim L L C And Associated Companies | Other Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 200 |
Business Acquisitions - RAGE Fr
Business Acquisitions - RAGE Frameworks, Inc. - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 13, 2017 | Jan. 08, 2016 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | |||||
Goodwill | $ 1,337,051 | $ 1,337,122 | $ 1,069,408 | |||
Acquisition related cost | $ 164 | |||||
Acquired assets | 412 | |||||
Liabilities assumed | $ 617 | |||||
Rage Frameworks, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition | Apr. 13, 2017 | |||||
Ownership percentage acquired | 100.00% | |||||
Business combination estimated purchase consideration | $ 125,089 | |||||
Payment for business acquisitions, net of cash acquired | 124,149 | |||||
Cash and cash equivalents | $ 1,605 | |||||
Acquired intangible assets, weighted average amortization period | 7 years | |||||
Goodwill | $ 105,114 | |||||
Acquisition related cost | 881 | |||||
Acquired assets | 13,836 | |||||
Liabilities assumed | 9,654 | |||||
Recognized net deferred tax asset | 1,094 | |||||
Rage Frameworks, Inc. | Customer-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 1,600 | |||||
Rage Frameworks, Inc. | Marketing-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 600 | |||||
Rage Frameworks, Inc. | Technology-related intangible assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 12,400 | |||||
Rage Frameworks, Inc. | Other Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 100 |
Business Acquisitions - Other A
Business Acquisitions - Other Acquisitions in 2017 - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 08, 2016 | Mar. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Payment for business acquisitions, net of cash acquired | $ 9,237 | ||||
Goodwill | $ 1,337,122 | $ 1,337,051 | $ 1,069,408 | ||
Acquisition related cost | $ 164 | ||||
Acquired assets | 412 | ||||
Liabilities assumed | $ 617 | ||||
Other Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Business combination estimated purchase consideration | 87,586 | ||||
Payment for business acquisitions, net of cash acquired | 76,612 | ||||
Cash and cash equivalents | $ 254 | ||||
Acquired intangible assets, weighted average amortization period | 5 years | ||||
Goodwill | $ 56,521 | ||||
Acquisition related cost | 2,369 | ||||
Acquired assets | 10,387 | ||||
Liabilities assumed | 11,239 | ||||
Recognized net deferred tax asset | 6,570 | ||||
Other Acquisitions | Customer-Related Intangible Assets | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 33,494 | ||||
Other Acquisitions | Marketing-Related Intangible Assets | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 1,936 | ||||
Other Acquisitions | Technology-related intangible assets | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 2,956 | ||||
Other Acquisitions | Other Intangible Assets | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 100 | ||||
Kraft Foods Group Brands LLC | |||||
Business Acquisition [Line Items] | |||||
Contingent earn-out consideration-Low end | 0 | ||||
Contingent earn-out consideration-High end | 10,000 | ||||
LeaseDimensions Inc. | |||||
Business Acquisition [Line Items] | |||||
Contingent earn-out consideration-Low end | 0 | ||||
Contingent earn-out consideration-High end | $ 3,000 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Acquisition Date, Goodwill Reporting Unit and Tax Deductibility of Goodwill of Each Acquisition (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Kraft Foods Group Brands LLC | |
Business Acquisition [Line Items] | |
Acquisition date | Oct. 16, 2017 |
Goodwill reporting unit | India |
Tax deductibility - goodwill | Deductible |
Onsource L L C | |
Business Acquisition [Line Items] | |
Acquisition date | Jul. 18, 2017 |
Goodwill reporting unit | India |
Tax deductibility - goodwill | Deductible |
I T Business Of Birlasoft | |
Business Acquisition [Line Items] | |
Acquisition date | Jul. 18, 2017 |
Goodwill reporting unit | IT Services |
Tax deductibility - goodwill | Deductible |
Image Processing Business Of Fiserv Solutions Of Australia Pty Ltd | |
Business Acquisition [Line Items] | |
Acquisition date | May 11, 2017 |
Goodwill reporting unit | India |
Tax deductibility - goodwill | Non-deductible |
LeaseDimensions Inc. | |
Business Acquisition [Line Items] | |
Acquisition date | Feb. 15, 2017 |
Goodwill reporting unit | Americas |
Tax deductibility - goodwill | Non-deductible |
Business Acquisitions - IT Supp
Business Acquisitions - IT Support Business - Additional Information (Detail) - IT Support Business - Europe - USD ($) $ in Thousands | Nov. 20, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Sale proceeds | $ 0 | |
Net revenues | $ 4,546 | |
Net loss | $ (9,706) | |
Loss on divestiture | $ (5,668) |
Summary of Calculation of Loss
Summary of Calculation of Loss on Sale of Business (Detail) - IT Support Business - Europe $ in Thousands | Nov. 20, 2017USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Net assets of the business, including the translation impact thereof | $ 5,569 |
Selling expenses | 99 |
Loss on divestiture included in other income (expense), net | $ (5,668) |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and other bank balances | $ 424,226 | $ 504,468 | ||
Total | $ 424,226 | $ 504,468 | $ 388,186 | $ 422,623 |
Reserve for Doubtful Receivable
Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Opening Balance | $ 23,660 | $ 15,519 |
Additions due to acquisitions | 235 | |
Additions charged/reversal released to cost and expense | (103) | 9,819 |
Deductions/effect of exchange rate fluctuations | 1 | (1,913) |
Closing balance | $ 23,558 | $ 23,660 |
Accounts Receivable, Net of R78
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | |||
Gross accounts receivable | $ 726,624,000 | $ 716,745,000 | |
Reserve for doubtful receivables | 23,558,000 | 23,660,000 | $ 15,519,000 |
Net accounts receivable | 703,066,000 | 693,085,000 | |
Accounts receivable due after one year | 1,407,000 | 1,624,000 | |
Accounts receivable from related parties | 239,000 | 36,000 | |
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, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative instruments, assets | [1],[2] | $ 53,587 | $ 73,098 |
Total, assets | 53,587 | 73,098 | |
Earn-out consideration | [3],[4] | 23,900 | 24,732 |
Derivative instruments, liabilities | [2],[3] | 28,243 | 18,188 |
Total, liabilities | 52,143 | 42,920 | |
Redeemable non-controlling interest | [5] | 4,750 | |
Fair Value, Inputs, Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative instruments, assets | [1],[2] | 53,587 | 73,098 |
Total, assets | 53,587 | 73,098 | |
Derivative instruments, liabilities | [2],[3] | 28,243 | 18,188 |
Total, liabilities | 28,243 | 18,188 | |
Fair Value, Inputs, Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Earn-out consideration | [3],[4] | 23,900 | 24,732 |
Total, liabilities | $ 23,900 | 24,732 | |
Redeemable non-controlling interest | [5] | $ 4,750 | |
[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 is 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, 2018 | Mar. 31, 2017 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Opening balance | $ 24,732 | $ 22,435 | |
Earn-out consideration payable in connection with acquisitions | 2,320 | ||
Payments made on earn-out consideration | (1,476) | (1,206) | |
Change in fair value of earn-out consideration | [1] | 17 | (3,138) |
Others | [2] | 627 | 852 |
Ending balance | $ 23,900 | $ 21,263 | |
[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 Instrume81
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 25,344,000 | $ 54,910,000 |
United States Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,376,800,000 | 1,289,400,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 30,002,000 | 54,398,000 |
United States Dollars (sell) Mexican Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 9,000,000 | 9,000,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 417,000 | (441,000) |
United States Dollars (sell) Philippines Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 66,300,000 | 76,650,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (2,858,000) | 69,000 |
Euro (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 153,516,000 | 170,542,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (5,810,000) | (2,069,000) |
Pound Sterling (buy) United States Dollars (sell) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 22,150,000 | 24,041,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 479,000 | 253,000 |
Euro (sell) Romanian Leu (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 33,296,000 | 35,826,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (448,000) | (892,000) |
Japanese Yen (sell) Chinese Renminbi (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 54,781,000 | 60,768,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 491,000 | 1,918,000 |
Pound Sterling (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 67,532,000 | 80,871,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (5,317,000) | (2,478,000) |
Australian Dollars (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 114,932,000 | 136,092,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (3,180,000) | (5,180,000) |
Interest Rate Swap Floating To Fixed [Member] | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 425,945,000 | 432,117,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 11,568,000 | $ 9,332,000 |
[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 foreign exchange, interest rate 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, 2018 | Dec. 31, 2017 |
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | $ 973 | $ 4,635 |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 1,986 | 254 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 32,750 | 43,557 |
Cash Flow Hedges | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 19,864 | 24,906 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 13,326 | 10,092 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | $ 12,931 | $ 7,842 |
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 | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss) [Line Items] | |||
Opening balance, before-tax amount | $ 50,529 | $ 37,461 | $ 37,461 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount | 8,279 | 9,295 | |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | (15,893) | 39,508 | |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | (24,172) | 30,213 | |
Closing balance, before-tax amount | 26,357 | 67,674 | 50,529 |
Opening balance, tax (expense) or benefit | (14,436) | (13,979) | (13,979) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit | (1,616) | (3,432) | |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | 3,625 | (14,787) | |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | 5,240 | (11,355) | (2,265) |
Closing balance, tax (expense) or benefit | (6,931) | (25,334) | (14,436) |
Opening balance, net of tax amount | 36,093 | 23,482 | 23,482 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount | 6,663 | 5,863 | |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | (12,269) | 24,721 | |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | (18,932) | 18,858 | |
Closing balance, net of tax amount | 19,426 | $ 42,340 | $ 36,093 |
ASU 2018-02 | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Adoption of ASU 2018-02, tax (expense) or benefit | 2,265 | ||
Adoption of ASU 2018-02, net of tax amount | $ 2,265 |
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, 2018 | Mar. 31, 2017 | ||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ (15,893) | $ 39,508 | |
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 8,279 | 9,295 | |
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | (4,288) | 8,910 | |
Net revenues | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | (1,474) | 3,760 | |
Cost of Revenue | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 7,270 | 4,570 | |
Selling, General and Administrative Expenses | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 1,934 | 1,248 | |
Interest Expense | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 549 | (283) | |
Forward Foreign Exchange Contracts | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | (18,679) | 39,296 | |
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] | (4,288) | 8,910 |
Interest Rate Swaps | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ 2,786 | $ 212 | |
[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 Cu86
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Prepaid Expense And Other Assets Current [Abstract] | |||
Advance income and non-income taxes | $ 65,493 | $ 51,832 | |
Deferred transition costs | 62,029 | ||
Contract asset | 15,886 | ||
Customer acquisition cost | 19,327 | ||
Prepaid expenses | 19,638 | 16,944 | |
Derivative instruments | 33,723 | 48,192 | |
Employee advances | 3,764 | 5,014 | |
Deposits | 7,331 | 4,719 | |
Advances to suppliers | 5,502 | 2,705 | |
Others | 47,871 | 25,580 | |
Prepaid expenses and other current assets, net | $ 199,208 | [1],[2] | $ 236,342 |
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||
[2] | The Company has reclassified the deferred transition cost from “Prepaid expenses and other current assets” amounting to $65,663 and “Other assets” amounting to $73,501 to “Contract cost assets” amounting to $139,164 as a result of its adoption of ASC 606. |
Property, Plant and Equipment87
Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Property, plant and equipment, gross | $ 673,901 | $ 666,031 |
Less: accumulated depreciation and amortization | (468,866) | (459,001) |
Property, plant and equipment, net | $ 205,035 | $ 207,030 |
Property, Plant and Equipment88
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization | $ 15,836 | $ 14,139 |
Effect of Reclassification of Foreign Exchange (Gains) Losses | ||
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization | (349) | (228) |
Depreciation Expense on Property, Plant And Equipment | ||
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization | 12,275 | 11,230 |
Computer Software Amortization | ||
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization | $ 3,212 | $ 2,679 |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Opening balance | $ 1,337,122 | $ 1,069,408 |
Goodwill relating to acquisitions consummated during the period | 229,745 | |
Impact of measurement period adjustments | (83) | (106) |
Effect of exchange rate fluctuations | 12 | 38,075 |
Closing balance | $ 1,337,051 | $ 1,337,122 |
Goodwill and Intangible Asset90
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill deductible for tax purposes | $ 121,774 | $ 120,617 | |
Amortization of acquired intangible assets | 9,936 | $ 7,242 | |
Technology related internally developed intangibles | |||
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Amortization of acquired intangible assets | $ 400 | $ 0 |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 497,212 | $ 494,423 |
Accumulated amortization & Impairment | 371,431 | 362,833 |
Net | 125,781 | 131,590 |
Customer-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 367,640 | 369,173 |
Accumulated amortization & Impairment | 298,048 | 293,029 |
Net | 69,592 | 76,144 |
Marketing-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 52,165 | 52,443 |
Accumulated amortization & Impairment | 39,538 | 39,212 |
Net | 12,627 | 13,231 |
Technology-related intangible assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 55,101 | 54,189 |
Accumulated amortization & Impairment | 32,135 | 28,278 |
Net | 22,966 | 25,911 |
Other Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,460 | 3,081 |
Accumulated amortization & Impairment | 1,710 | 2,314 |
Net | 750 | 767 |
Intangible Assets Under Development [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 19,846 | 15,537 |
Net | $ 19,846 | $ 15,537 |
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, 2018 | Dec. 31, 2017 | |
Line Of Credit Facility [Line Items] | |||
Fund-based and non-fund-based credit facilities limits available | $ 14,311,000 | $ 15,064,000 | |
Utilization of credit facility for non fund-based usage | 7,312,000 | 7,900,000 | |
Credit facility, amount utilized | 276,073,000 | 170,978,000 | |
Short-term borrowings | $ 275,000,000 | $ 170,000,000 | |
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% | |
Line of credit covenant condition | The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. | ||
Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 350,000,000 | ||
Non-Fund-Based Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Credit facility, amount utilized | $ 1,073,000 | $ 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, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
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 | $ 2,110,000 | $ 2,239,000 | |||
Debt amount outstanding | $ 347,890,000 | 347,761,000 | |||
Principal amount of senior notes issued | $ 350,000,000 | $ 350,000,000 | |||
Interest rate on senior notes | 3.70% | 3.70% | |||
Net proceeds from issue of senior notes | $ 348,519,000 | ||||
Debt discount and underwriting fee | 1,481,000 | ||||
Other debt issuance costs | 1,161,000 | $ 1,161,000 | |||
Total debt issuance cost | $ 2,642,000 | $ 2,642,000 | |||
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 | $ 1,654,000 | 1,848,000 | |||
Debt amount outstanding | 688,346,000 | $ 698,152,000 | |||
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 | ||||
Revolving Credit Facility | New Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 350,000,000 |
Maturity Profile of Term Loan O
Maturity Profile of Term Loan Outstanding Net of Debt Amortization Expense (Detail) - Term Loan Credit Facility - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2,018 | $ 29,421 | |
2,019 | 39,272 | |
2,020 | 619,653 | |
Total | $ 688,346 | $ 698,152 |
Accrued Expenses and Other Cu95
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Accrued Liabilities And Other Liabilities [Abstract] | |||
Accrued expenses | $ 183,777 | $ 204,997 | |
Accrued employee cost | 123,076 | 204,506 | |
Earn-out consideration | 18,161 | 14,928 | |
Statutory liabilities | 48,371 | 36,283 | |
Retirement benefits | 21,455 | 21,074 | |
Derivative instruments | 15,312 | 10,346 | |
Advance from customers | 25,476 | ||
Contract liabilities | 81,515 | ||
Deferred transition revenue | 52,233 | ||
Other liabilities | 9,953 | 13,093 | |
Capital lease obligations | 1,496 | 1,546 | |
Accrued expenses and other current liabilities, net | $ 503,116 | [1] | $ 584,482 |
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. |
Other Liabilities (Detail)
Other Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |||
Accrued employee cost | $ 14,877 | $ 14,020 | |
Earn-out consideration | 5,739 | 9,804 | |
Retirement benefits | 43,235 | 40,520 | |
Derivative instruments | 12,931 | 7,842 | |
Advance from customers | 790 | ||
Contract liabilities | 55,484 | ||
Deferred transition revenue | 70,900 | ||
Others | 21,187 | 22,069 | |
Capital lease obligations | 2,405 | 2,664 | |
Other Liabilities | $ 155,858 | [1] | $ 168,609 |
[1] | As a result of its adoption of ASC 606 the Company has offset (i) contract assets amounting to $8,429 under “Prepaid expenses and other current assets” against contract liabilities under “Accrued expenses and other current liabilities” related to the same customer contract and (ii) contract assets amounting to $15,998 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. |
Net Defined Benefit Plan Costs
Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | ||
Service costs | $ 1,995 | $ 1,720 |
Interest costs | 995 | 734 |
Amortization of actuarial loss | 320 | 205 |
Expected return on plan assets | (736) | (492) |
Net defined benefit plan costs | $ 2,574 | $ 2,167 |
Amounts Contributed to Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | $ 18,234 | $ 16,175 |
India | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 5,944 | 5,217 |
U.S. | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 4,599 | 4,280 |
U.K. | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 2,137 | 1,720 |
China | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | 4,394 | 3,828 |
Other Regions | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plans, contributed amount | $ 1,160 | $ 1,130 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Apr. 11, 2012 | Mar. 31, 2018 | Mar. 31, 2017 | May 09, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation cost | $ 7,597,000 | $ 4,845,000 | ||
Options granted, contractual period, years | 10 years | |||
Options granted | 0 | |||
Unrecognized stock-based compensation cost for options | $ 5,708,000 | |||
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 8 months 12 days | |||
Unrecognized stock-based compensation cost | $ 23,703,000 | |||
Performance Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average remaining requisite vesting period | 1 year 9 months 18 days | |||
Unrecognized stock-based compensation cost | $ 25,194,000 | |||
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) | 58,476 | 55,788 | ||
Compensation expense for ESPP | $ 190,000 | $ 141,000 | ||
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 | |||
Number of common shares authorized for issuance | 15,000,000 | |||
Genpact Limited 2017 Omnibus Incentive Compensation Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of common shares authorized for issuance | 15,000,000 |
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, 2018 | Dec. 31, 2017 | ||
Shares arising out of options | |||
Outstanding, shares arising out of options, beginning balance | 5,134,645 | ||
Granted, shares arising out of options | 0 | ||
Exercised, shares arising out of options | (161,837) | ||
Outstanding, shares arising out of options, ending balance | 4,972,808 | 5,134,645 | |
Vested and expected to vest thereafter, shares arising out of options | [1] | 4,843,888 | |
Vested and exercisable, shares arising out of options | 3,592,809 | ||
Weighted average exercise price | |||
Outstanding weighted average exercise price, beginning balance | $ 19.52 | ||
Exercised, weighted average exercise price | 15.76 | ||
Outstanding weighted average exercise price, ending balance | 19.64 | $ 19.52 | |
Vested and expected to vest thereafter, weighted average exercise price | [1] | 19.49 | |
Vested and exercisable, weighted average exercise price | $ 17.63 | ||
Weighted average remaining contractual life (years) | |||
Outstanding weighted average remaining contractual life (years) | 5 years 4 months 24 days | 5 years 7 months 6 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [1] | 5 years 4 months 24 days | |
Vested and exercisable, weighted average remaining contractual life (years) | 4 years 4 months 24 days | ||
Aggregate intrinsic value | |||
Exercised, aggregate intrinsic value | $ 2,626 | ||
Outstanding aggregate intrinsic value, ending balance | 61,401 | ||
Vested and expected to vest thereafter, aggregate intrinsic value | [1] | 60,526 | |
Vested and exercisable, aggregate intrinsic value | $ 51,599 | ||
[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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Number of Restricted Share Units | ||||
Outstanding number of shares (Units), beginning balance | 1,605,251 | |||
Vested, number of shares (Units) | [1] | (58,875) | ||
Forfeited, number of shares (Units) | (4,500) | |||
Outstanding number of shares (Units), ending balance | 1,541,876 | 1,605,251 | ||
Expected to vest, number of shares (Units) | [2] | 1,337,172 | ||
Weighted Average Grant Date Fair Value | ||||
Outstanding weighted average grant date fair value, beginning balance | $ 26.17 | |||
Vested, weighted average grant date fair value | [1] | 23.99 | ||
Forfeited, weighted average grant date fair value | 24.59 | |||
Outstanding weighted average grant date fair value, ending balance | $ 26.26 | $ 26.17 | ||
Shares to be issued on vested awards other than options | 52,875 | 52,482 | ||
Vested RSU issued during the period | 6,000 | |||
Vested in December 31, 2016 | ||||
Weighted Average Grant Date Fair Value | ||||
Vested RSU issued during the period | 52,055 | |||
[1] | 6,000 RSUs that vested during the period were net settled upon vesting by issuing 3,576 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, shares in respect of which will be issuable on December 31, 2018 after withholding shares to the extent of minimum statutory withholding taxes. | |||
[2] | The number of RSUs expected to vest reflects an estimated forfeiture rate. |
Summary of Restricted Share 103
Summary of Restricted Share Units Granted (Parenthetical) (Detail) - Restricted Share Units (RSUs) - shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vested RSU issued during the period | 6,000 | ||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 3,576 | ||
Shares to be issued on vested awards other than options | 52,875 | 52,482 |
Summary of Performance Units Ac
Summary of Performance Units Activity (Detail) - Performance Units | 3 Months Ended | |
Mar. 31, 2018$ / sharesshares | ||
Number of Restricted Share Units | ||
Outstanding number of shares (Units), beginning balance | 2,900,940 | |
Vested, number of shares (Units) | (1,087,751) | [1] |
Forfeited, number of shares (Units) | (78,304) | |
Adjustment upon final determination of level of performance goal achievement | (4,597) | [2] |
Outstanding number of shares (Units), ending balance | 1,730,288 | |
Expected to vest, number of shares (Units) | 1,524,101 | [3] |
Weighted Average Grant Date Fair Value | ||
Outstanding weighted average grant date fair value, beginning balance | $ / shares | $ 24.40 | |
Vested, weighted average grant date fair value | $ / shares | 22.73 | [1] |
Forfeited, weighted average grant date fair value | $ / shares | 24.92 | |
Adjustment upon final determination of level of performance goal achievement | $ / shares | 25.22 | [2] |
Adjustment upon final determination of level of performance goal achievement | $ / shares | 25.22 | [2] |
Outstanding weighted average grant date fair value, ending balance | $ / shares | $ 25.43 | |
Maximum shares eligible to receive | ||
Outstanding maximum shares eligible to receive, beginning balance | 2,900,940 | |
Vested, maximum shares eligible to receive | (1,087,751) | [1] |
Forfeited, maximum shares eligible to receive | (78,304) | |
Adjustment upon final determination of level of performance goal achievement | 4,597 | [2] |
Outstanding maximum shares eligible to receive, ending balance | 1,730,288 | |
Adjustment upon final determination of level of performance goal achievement | (4,597) | [2] |
[1] | PUs that vested during the period were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). | |
[2] | Represents an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. | |
[3] | The number of PUs expected to vest has been adjusted by an estimated forfeiture rate. |
Summary of Performance Units105
Summary of Performance Units Activity (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2018shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares issued, net of minimum statutory withholding taxes | 691,958 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Mar. 21, 2018 | Feb. 12, 2018 | Jan. 17, 2018 | Dec. 29, 2017 | Mar. 30, 2017 | Mar. 28, 2017 | Feb. 28, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 29, 2017 | 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 | |||||||||||
Shares repurchased and retired (in shares) | 3,015,999 | 808,293 | ||||||||||
Common stock shares repurchased price per share | $ 31.82 | $ 24.48 | ||||||||||
Aggregate amount of common stock shares repurchased | $ 95,984,000 | $ 219,784,000 | ||||||||||
Expenses related to stock purchases | $ 60,000 | 16,000 | ||||||||||
Quarterly dividend declared | $ 0.075 | $ 0.06 | ||||||||||
Annual dividend | $ 0.24 | |||||||||||
Dividend | $ 14,408,000 | $ 11,957,000 | ||||||||||
Dividends payable, date declared | 2018-02 | 2017-02 | ||||||||||
Dividends paid per share | $ 0.075 | $ 0.06 | ||||||||||
Percentage Increase In Quarterly Cash Dividend | 25.00% | |||||||||||
Planned annual dividend | $ 0.30 | |||||||||||
First Quarter Dividend | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Dividend payment date | Mar. 28, 2017 | Mar. 21, 2018 | ||||||||||
Dividends payable, date of record | Mar. 10, 2017 | Mar. 9, 2018 | ||||||||||
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 | |||||||||||
Additional delivery of common shares received | 350,006 | |||||||||||
Final delivery of common shares received | 163,975 | |||||||||||
Delivery of weighted average price per share of common shares | $ 28.20 | |||||||||||
Share Repurchase Open Market | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Aggregate amount of common stock shares repurchased | $ 95,984,000 | $ 19,784,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 660,000 | 1,003,048 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share (Abstract) | ||
Net income available to Genpact Limited common shareholders | $ 64,695 | $ 53,338 |
Weighted average number of common shares used in computing basic earnings per common share | 192,816,626 | 199,069,528 |
Dilutive effect of stock-based awards | 3,471,943 | 3,586,409 |
Weighted average number of common shares used in computing dilutive earnings per common share | 196,288,569 | 202,655,937 |
Basic | $ 0.34 | $ 0.27 |
Diluted | $ 0.33 | $ 0.26 |
Net Revenues by Type of Custome
Net Revenues by Type of Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total net revenues | $ 688,912 | $ 622,995 |
General Electric Company | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 58,049 | 69,254 |
Global Clients | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | $ 630,863 | $ 553,741 |
Net Revenues for Service Type (
Net Revenues for Service Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total net revenues | $ 688,912 | $ 622,995 |
Business process outsourcing | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 574,061 | 511,283 |
IT Services | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | $ 114,851 | $ 111,712 |
Revenues from Clients Based on
Revenues from Clients Based on Industry Serviced (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total net revenues | $ 688,912 | $ 622,995 |
Banking, financial services and insurance | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 275,627 | 247,012 |
Manufacturing including pharmaceuticals and medical equipment manufacturing | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 247,125 | 229,214 |
Technology, healthcare and other services | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | $ 166,160 | $ 146,769 |
Net Revenues from Geographic Ar
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total net revenues | $ 688,912 | $ 622,995 |
India | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 389,134 | 411,055 |
Asia, other than India | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 79,461 | 66,662 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 152,280 | 85,042 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | $ 68,037 | $ 60,236 |
Net Revenues - Additional Infor
Net Revenues - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Revenues [Abstract] | |
Billing cycle period | 30 days |
Net Revenues of Company's Contr
Net Revenues of Company's Contract Liabilities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenues [Abstract] | |
Advance from customers, Opening balance | $ 26,266 |
Advance from customers, Additions | 11,248 |
Advance from customers, Revenue recognized | (2,944) |
Advance from customers, Closing balance | 34,570 |
Deferred transition revenue, Opening balance | 101,785 |
Deferred transition revenue, Additions | 11,083 |
Deferred transition revenue, Revenue recognized | (10,430) |
Deferred transition revenue, Currency translation adjustments | (10) |
Deferred transition revenue, Closing balance | $ 102,428 |
Estimated Revenue Expected to R
Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 47,714 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 47,818 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 6,676 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: (nil) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 220 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Net Revenues of Company's Co116
Net Revenues of Company's Contract Assets (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenues [Abstract] | |
Opening balance | $ 43,366 |
Additions | 10,839 |
Reduction in revenue recognized | (5,902) |
Closing balance | $ 48,303 |
Net Revenues of Company's Co117
Net Revenues of Company's Contract Costs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenues [Line Items] | |
Closing balance | $ 162,435 |
Sales Incentive Programs | |
Revenues [Line Items] | |
Opening balance | 23,227 |
Amortized contract cost asset amount | 3,239 |
Closing balance | 23,271 |
Process Transition Activities | |
Revenues [Line Items] | |
Opening balance | 139,284 |
Amortized contract cost asset amount | 11,579 |
Closing balance | $ 139,164 |
Cost of Revenue (Detail)
Cost of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Component Of Operating Other Cost And Expense [Line Items] | ||
Cost of revenue | $ 444,324 | $ 383,337 |
Personnel expenses | ||
Component Of Operating Other Cost And Expense [Line Items] | ||
Cost of revenue | 310,132 | 269,189 |
Operational expenses | ||
Component Of Operating Other Cost And Expense [Line Items] | ||
Cost of revenue | 121,357 | 102,716 |
Depreciation and amortization | ||
Component Of Operating Other Cost And Expense [Line Items] | ||
Cost of revenue | $ 12,835 | $ 11,432 |
Selling, General and Adminis119
Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | $ 171,109 | [1] | $ 160,858 |
Personnel expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | 128,068 | 122,569 | |
Operational expenses | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | 40,389 | 35,813 | |
Depreciation and amortization | |||
Component Of Operating Other Cost And Expense [Line Items] | |||
Selling, general and administrative expenses | $ 2,652 | $ 2,476 | |
[1] | During the three months ended March 31, 2018, the Company amortized $3,239 in contract costs related to obtaining a contract. Upon the adoption of ASC 606 the Company capitalized such costs in an amount of $3,283, resulting in a net adjustment of $44. |
Other Operating Income (Expense
Other Operating Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Other operating (income) expense | $ (235) | $ (4,400) |
Change in fair value of earn out consideration and deferred consideration (relating to business acquisitions) | 17 | (3,138) |
Other operating (income) expense, net | $ (218) | $ (7,538) |
Interest Income (Expense), N121
Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Interest income | $ 3,370 | $ 1,131 |
Interest expense | (11,470) | (6,624) |
Interest income (expense), net | $ (8,100) | $ (5,493) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 15.70% | ||
Reduction in tax expense due to certain periodic discrete items, including excess tax benefit recognized on settlement of stock awards | $ 2,746 | ||
U.S. federal corporate income tax rate | 21.00% | 35.00% | |
Tax gain relating to derivatives | $ (5,240) | $ 11,355 | $ 2,265 |
Tax effect adjusted through retained earnings | 2,265 | ||
Unrecognized tax benefits | 25,789 | 26,060 | |
Unrecognized tax benefits that would impact effective tax rate | 24,604 | 24,877 | |
Unrecognized tax benefits, interest on income taxes accrued | 4,806 | 4,614 | |
Unrecognized tax benefits, excluding exchange rate differences for interest recognized | 285 | (224) | |
Accrued penalties | $ 1,024 | $ 1,033 |
Activities Related to Unrecogni
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Income Tax Uncertainties [Abstract] | |
Beginning balance | $ 26,060 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 229 |
Decrease related to prior year tax positions | (8) |
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (384) |
Effect of exchange rate changes | (108) |
Ending balance | $ 25,789 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Investment in equity affiliates | $ 919 | $ 886 | |
Affiliate of Significant Shareholder | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 304 | $ 83 | |
Non-Consolidating Affiliates | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 3,211 | ||
Cost of revenue | 191 | 575 | |
Selling, general and administrative expenses, net of recovery | 49 | 94 | |
Investment in equity affiliates | 467 | ||
Charges to equity-method investment | 2,821 | ||
Investment in equity affiliates | 919 | $ 886 | |
Cost reimbursements from non-consolidating affiliates | 238 | ||
Non-Consolidating Affiliates | U.K. | |||
Related Party Transaction [Line Items] | |||
Payment for affiliate under tax sharing arrangement | $ 1,307 | ||
Significant Shareholder of Company | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative expenses, net of recovery | $ 10 |
Other Income (Expense), net (De
Other Income (Expense), net (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Nonoperating Income Expense [Abstract] | ||
Government incentives | $ 15,500 | |
Other income/(expense) | 50 | $ 553 |
Other income (expense), net | $ 15,550 | $ 553 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies [Line Items] | ||
Bank guarantees, outstanding | $ 8,385 | $ 8,879 |
Capital Addition Purchase Commitments | ||
Commitments And Contingencies [Line Items] | ||
Commitments and contingencies | $ 7,221 | $ 8,314 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
May 10, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Subsequent Event [Line Items] | |||
Aggregate amount of common stock shares repurchased | $ 95,984 | $ 219,784 | |
Share Repurchase Open Market | |||
Subsequent Event [Line Items] | |||
Aggregate amount of common stock shares repurchased | $ 95,984 | $ 19,784 | |
Subsequent Event | Share Repurchase Open Market | |||
Subsequent Event [Line Items] | |||
Number of common shares repurchased | 505,520 | ||
Weighted average price of share | $ 31.31 | ||
Aggregate amount of common stock shares repurchased | $ 15,827 |