Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 189,949,196 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
Current assets | ||||||
Cash and cash equivalents | $ 333,903 | $ 504,468 | $ 441,064 | $ 422,623 | ||
Accounts receivable, net | 691,347 | 693,085 | ||||
Prepaid expenses and other current assets | 207,334 | [1],[2] | 236,342 | |||
Total current assets | 1,232,584 | 1,433,895 | ||||
Property, plant and equipment, net | 202,669 | 207,030 | ||||
Deferred tax assets | 88,278 | [3] | 76,929 | |||
Investment in equity affiliates | 834 | 886 | ||||
Intangible assets, net | 120,624 | 131,590 | ||||
Goodwill | 1,311,361 | 1,337,122 | $ 1,069,408 | |||
Contract cost assets | [2],[3] | 162,178 | ||||
Other assets | 147,550 | [1],[2] | 262,169 | |||
Total assets | 3,266,078 | 3,449,621 | ||||
Current liabilities | ||||||
Short-term borrowings | 215,000 | 170,000 | ||||
Current portion of long-term debt | 39,249 | 39,226 | ||||
Accounts payable | 20,942 | 15,050 | ||||
Income taxes payable | 54,513 | 30,026 | ||||
Accrued expenses and other current liabilities | 483,241 | [1] | 584,482 | |||
Total current liabilities | 812,945 | 838,784 | ||||
Long-term debt, less current portion | 987,314 | 1,006,687 | ||||
Deferred tax liabilities | 7,036 | 6,747 | ||||
Other liabilities | 162,358 | [1] | 168,609 | |||
Total liabilities | 1,969,653 | 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 189,876,061 issued and outstanding as of December 31, 2017 and June 30, 2018, respectively | 1,895 | 1,924 | ||||
Additional paid-in capital | 1,438,072 | 1,421,368 | ||||
Retained earnings | 338,120 | [3] | 355,982 | |||
Accumulated other comprehensive income (loss) | (481,662) | (355,230) | ||||
Total equity | 1,296,425 | 1,424,044 | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | $ 3,266,078 | $ 3,449,621 | ||||
[1] | As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | |||||
[2] | As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. | |||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in a $162,178 increase in "Contract cost assets," which includes the reclassification of $137,370 (refer to note (a) in the table above) and a closing balance of $24,808 related to sales incentive programs, with a corresponding impact on retained earnings of $19,173 and on deferred tax liabilities of $5,635 which has been offset against deferred tax assets. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 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 | 189,876,061 | 192,825,207 |
Common shares, outstanding | 189,876,061 | 192,825,207 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Income Statement [Abstract] | |||||||
Net revenues | [1] | $ 728,561 | $ 670,697 | $ 1,417,473 | $ 1,293,692 | ||
Cost of revenue | [1] | 462,898 | 414,508 | 907,222 | 797,845 | ||
Gross profit | [1] | 265,663 | 256,189 | 510,251 | 495,847 | ||
Operating expenses: | |||||||
Selling, general and administrative expenses | [1] | 176,166 | [2] | 167,758 | 347,275 | [3] | 328,616 |
Amortization of acquired intangible assets | [1] | 9,826 | 8,387 | 19,762 | 15,629 | ||
Other operating (income) expense, net | [1] | 149 | (915) | (69) | (8,453) | ||
Income from operations | [1] | 79,522 | 80,959 | 143,283 | 160,055 | ||
Foreign exchange gains (losses), net | [1] | 2,805 | 1,913 | 7,603 | (3,000) | ||
Interest income (expense), net | [1] | (10,407) | (9,850) | (18,507) | (15,343) | ||
Other income (expense), net | [1] | 9,748 | 11,560 | 25,298 | 12,113 | ||
Income before equity-method investment activity, net and income tax expense | [1] | 81,668 | 84,582 | 157,677 | 153,825 | ||
Equity-method investment activity, net | [1] | (15) | (9) | (15) | (4,567) | ||
Income before income tax expense | [1] | 81,653 | 84,573 | 157,662 | 149,258 | ||
Income tax expense | [1] | 17,079 | 15,471 | 29,154 | 27,716 | ||
Net income | [1] | 64,574 | 69,102 | 128,508 | 121,542 | ||
Net loss (income) attributable to redeemable non-controlling interest | [1] | (156) | 761 | 742 | |||
Net income attributable to Genpact Limited shareholders | [1] | 64,574 | 68,946 | 129,269 | 122,284 | ||
Net income available to Genpact Limited common shareholders | [1] | $ 64,574 | $ 68,946 | $ 129,269 | $ 122,284 | ||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||
Basic | [1] | $ 0.34 | $ 0.36 | $ 0.68 | $ 0.63 | ||
Diluted | [1] | $ 0.33 | $ 0.36 | $ 0.66 | $ 0.62 | ||
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||||||
Basic | [1] | 190,132,664 | 191,469,593 | 191,474,645 | 195,269,561 | ||
Diluted | [1] | 193,365,974 | 193,732,406 | 194,827,272 | 198,194,172 | ||
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. | ||||||
[2] | During the three months ended June 30, 2018, the Company amortized $3,604 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $5,141, resulting in a net adjustment of $1,537 with a corresponding impact on income tax expense of $332. | ||||||
[3] | During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 with a corresponding impact on income tax expense of $332. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Net income (loss) | [1] | $ 64,574 | $ 69,102 | $ 128,508 | $ 121,542 |
Other comprehensive income: | |||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (27,879) | (9,611) | (46,811) | 9,247 | |
Genpact Limited Shareholders | |||||
Net income (loss) | 64,574 | 68,946 | 129,269 | 122,284 | |
Other comprehensive income: | |||||
Currency translation adjustments | (73,681) | 20,085 | (83,016) | 71,712 | |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (27,879) | (9,611) | (46,811) | 9,247 | |
Retirement benefits, net of taxes | 617 | 223 | 1,130 | 342 | |
Other comprehensive income (loss) | (100,943) | 10,697 | (128,697) | 81,301 | |
Comprehensive income (loss) | $ (36,369) | 79,643 | 572 | 203,585 | |
Redeemable Non-controlling interest | |||||
Net income (loss) | 156 | (761) | (742) | ||
Other comprehensive income: | |||||
Currency translation adjustments | (66) | (424) | (78) | ||
Other comprehensive income (loss) | (66) | (424) | (78) | ||
Comprehensive income (loss) | $ 90 | $ (1,185) | $ (820) | ||
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
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 | 7,762 | 7,767 | ||||||
Issuance of common shares on exercise of options (in shares) | 548,086 | ||||||||
Issuance of common shares under the employee stock purchase plan | $ 1 | 2,312 | 2,313 | ||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 100,357 | ||||||||
Net settlement on vesting of restricted share units | $ 1 | (11) | (10) | ||||||
Net settlement on vesting of restricted share units, shares | 81,471 | ||||||||
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 repurchase | (16) | (16) | |||||||
Stock-based compensation expense | 12,351 | 12,351 | |||||||
Change in fair value of redeemable non-controlling interest | (980) | (980) | 980 | ||||||
Comprehensive income (loss): | |||||||||
Net income (loss) | $ 121,542 | [1] | 122,284 | 122,284 | (742) | ||||
Other comprehensive income (loss) | 81,301 | 81,301 | (78) | ||||||
Dividend | (23,515) | (23,515) | |||||||
End balance, value at Jun. 30, 2017 | $ 1,924 | 1,356,936 | 276,184 | (376,624) | 1,258,420 | 4,680 | |||
End balance, value (in shares) at Jun. 30, 2017 | 192,868,427 | ||||||||
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 | $ 4 | 6,207 | 6,211 | ||||||
Issuance of common shares on exercise of options (in shares) | 366,382 | 366,382 | |||||||
Issuance of common shares under the employee stock purchase plan | $ 1 | 3,176 | 3,177 | ||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 114,951 | ||||||||
Net settlement on vesting of restricted share units | $ 2 | (947) | (945) | ||||||
Net settlement on vesting of restricted share units, shares | 156,420 | ||||||||
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 | $ (43) | 4,000 | (134,060) | (130,103) | |||||
Stock repurchased and retired, shares | (4,114,882) | (4,278,857) | |||||||
Expenses related to stock repurchase | (82) | (82) | |||||||
Stock-based compensation expense | 18,724 | 18,724 | |||||||
Payment for purchase of redeemable non-controlling interest | (1,165) | (1,165) | (3,565) | ||||||
Comprehensive income (loss): | |||||||||
Net income (loss) | $ 128,508 | [1] | 129,269 | 129,269 | (761) | ||||
Net income (loss) | ASU 2014-09 | [2] | $ 128,508 | |||||||
Other comprehensive income (loss) | (128,697) | (128,697) | $ (424) | ||||||
Dividend | (28,648) | (28,648) | |||||||
End balance, value at Jun. 30, 2018 | $ 1,895 | $ 1,438,072 | $ 338,120 | $ (481,662) | $ 1,296,425 | ||||
End balance, value (in shares) at Jun. 30, 2018 | 189,876,061 | 189,876,061 | |||||||
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. | ||||||||
[2] | During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 and a tax impact of $332 which is further adjusted by note (g) below. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Operating activities | |||
Net income attributable to Genpact Limited shareholders | [1] | $ 129,269 | $ 122,284 |
Net loss attributable to redeemable non-controlling interest | [1] | (761) | (742) |
Net income | [1] | 128,508 | 121,542 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||
Depreciation and amortization | 31,613 | 27,312 | |
Amortization of debt issuance costs | 979 | 877 | |
Amortization of acquired intangible assets | [1] | 19,762 | 15,629 |
Write-down of intangible assets and property, plant and equipment | 850 | ||
Reserve for doubtful receivables | 1,347 | 1,793 | |
Unrealized loss (gain) on revaluation of foreign currency asset/liability | (7,350) | 2,956 | |
Equity-method investment activity, net | [1] | 15 | 4,567 |
Stock-based compensation expense | 18,724 | 12,351 | |
Deferred income taxes | (4,194) | (5,260) | |
Others, net | 294 | (4,816) | |
Change in operating assets and liabilities: | |||
Increase in accounts receivable | (4,548) | (1,958) | |
Increase in prepaid expenses, other current assets, contract cost assets and other assets | (71,559) | (35,248) | |
Increase in accounts payable | 6,289 | 1,624 | |
Decrease in accrued expenses, other current liabilities and other liabilities | (96,965) | (52,022) | |
Increase in income taxes payable | 25,719 | 25,977 | |
Net cash provided by operating activities | 49,484 | 115,324 | |
Investing activities | |||
Purchase of property, plant and equipment | (37,703) | (29,350) | |
Payment for internally generated intangible assets (including intangibles under development) | (11,544) | (8,950) | |
Proceeds from sale of property, plant and equipment | 309 | 566 | |
Investment in equity affiliates | (496) | ||
Payment for business acquisitions, net of cash acquired | (728) | (207,181) | |
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Net cash used for investing activities | (54,396) | (245,411) | |
Financing activities | |||
Repayment of capital lease obligations | (1,108) | (1,106) | |
Payment of debt issuance costs | (1,481) | ||
Proceeds from long-term debt | 350,000 | ||
Repayment of long-term debt | (20,000) | (20,000) | |
Proceeds from short-term borrowings | 105,000 | 230,000 | |
Repayment of short-term borrowings | (60,000) | (185,000) | |
Proceeds from issuance of common shares under stock-based compensation plans | 9,388 | 10,080 | |
Payment for net settlement of stock-based awards | (14,229) | (9,949) | |
Payment of earn-out/deferred consideration | (1,476) | (1,287) | |
Dividend paid | (28,648) | (23,515) | |
Payment for stock repurchased and retired | (130,103) | (219,784) | |
Payment for expenses related to stock repurchase | (82) | (16) | |
Net cash provided by/(used for) financing activities | (141,258) | 127,942 | |
Effect of exchange rate changes | (24,395) | 20,586 | |
Net increase (decrease) in cash and cash equivalents | (146,170) | (2,145) | |
Cash and cash equivalents at the beginning of the period | 504,468 | 422,623 | |
Cash and cash equivalents at the end of the period | 333,903 | 441,064 | |
Supplementary information | |||
Cash paid during the period for interest | 21,808 | 10,648 | |
Cash paid during the period for income taxes | 34,809 | 28,649 | |
Property, plant and equipment acquired under capital lease obligations | $ 668 | $ 1,485 | |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Organization
Organization | 6 Months Ended |
Jun. 30, 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 80,000 employees serving clients in key industry verticals from more than 20 countries. |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Jun. 30, 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 Technology-related intangible assets 2-8 years Other intangible assets 3-5 years 2. Summary of significant accounting policies (Continued) 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 12% of receivables as of December 31, 2017 and June 30, 2018, respectively. GE accounted for 10% (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 as was 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 liabilities 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 are provided primarily 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 Company expects to be entitled in exchange for those services. Revenues from services rendered under time-and-material 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 services rendered between the last billing date and the balance sheet date. The Company’s customer contracts sometimes 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 records deferred revenue attributable to certain process transition activities where such activities do not represent separate performance obligations. 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 the generation or enhancement of resources. Such costs are expected to be recoverable under the contract and are therefore classified as contract cost assets and 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 an 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 ratably over the subscription term. All incremental and direct costs incurred for acquiring contracts, such as certain sales commissions, are classified as contract cost assets. 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 assets. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and subtracted from revenue. Timing of revenue recognition may differ from the timing of invoicing. If a 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 a contract liability. Contract assets and contract liabilities relating to the same customer contract are offset against each other 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 2—“Summary of significant accounting policies” to the consolidated 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 often enters into contracts with customers that 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 rather than 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 sometimes 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. Impact on consolidated financial statements The following tables summarize the impact of the Company’s adoption of Topic 606 on its consolidated financial statements for the three and six months ended June 30, 2018. Consolidated Balance Sheet As of June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 333,903 $ 333,903 Accounts receivable, net 691,347 691,347 Prepaid expenses and other current assets (a, c) 207,334 79,777 287,111 Total current assets $ 1,232,584 79,777 $ 1,312,361 Property, plant and equipment, net 202,669 202,669 Deferred tax assets (b) 88,278 5,635 93,913 Investment in equity affiliates 834 834 Intangible assets, net 120,624 120,624 Goodwill 1,311,361 1,311,361 Contract cost assets (a, b) 162,178 (162,178 ) — Other assets (a, c) 147,550 81,328 228,878 Total assets $ 3,266,078 4,562 $ 3,270,640 Liabilities and equity Current liabilities Short-term borrowings 215,000 215,000 Current portion of long-term debt 39,249 39,249 Accounts payable 20,942 20,942 Income taxes payable 54,513 54,513 Accrued expenses and other current liabilities (c) 483,241 10,996 494,237 Total current liabilities $ 812,945 10,996 $ 823,941 Long-term debt, less current portion 987,314 987,314 Deferred tax liabilities 7,036 7,036 Other liabilities (c) 162,358 12,739 175,097 Total liabilities $ 1,969,653 23,735 $ 1,993,388 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 189,876,061 issued and outstanding as of December 31, 2017 and June 30, 2018, respectively 1,895 1,895 Additional paid-in capital 1,438,072 1,438,072 Retained earnings (b) 338,120 (19,173 ) 318,947 Accumulated other comprehensive income (loss) (481,662 ) (481,662 ) Total equity $ 1,296,425 (19,173 ) $ 1,277,252 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,266,078 4,562 $ 3,270,640 (a) As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. (b) The cumulative impact of the adoption of ASC 606 resulted in a $162,178 increase in "Contract cost assets," which includes the reclassification of $137,370 (refer to note (a) in the table above) and a closing balance of $24,808 related to sales incentive programs, with a corresponding impact on retained earnings of $19,173 and on deferred tax liabilities of $5,635 which has been offset against deferred tax assets. (c) As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. Consolidated Statement of Income Three months ended June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 728,561 $ 728,561 Cost of revenue 462,898 462,898 Gross profit $ 265,663 — $ 265,663 Operating expenses: — Selling, general and administrative expenses (d) 176,166 1,537 177,703 Amortization of acquired intangible assets 9,826 9,826 Other operating (income) expense, net 149 149 Income from operations $ 79,522 (1,537 ) $ 77,985 Foreign exchange gains (losses), net 2,805 2,805 Interest income (expense), net (10,407 ) (10,407 ) Other income (expense), net 9,748 9,748 Income before equity-method investment activity, net and income tax expense $ 81,668 (1,537 ) $ 80,131 Equity-method investment activity, net (15 ) — (15 ) Income before income tax expense $ 81,653 (1,537 ) $ 80,116 Income tax expense 17,079 (332 ) 16,747 Net income $ 64,574 (1,205 ) $ 63,369 Net loss (income) attributable to non-controlling interest — — — Net income attributable to Genpact Limited shareholders $ 64,574 (1,205 ) $ 63,369 (d) During the three months ended June 30, 2018, the Company amortized $3,604 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $5,141, resulting in a net adjustment of $1,537 with a corresponding impact on income tax expense of $332. Consolidated Statement of Income Six months ended June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 1,417,473 $ 1,417,473 Cost of revenue 907,222 907,222 Gross profit $ 510,251 — $ 510,251 Operating expenses: Selling, general and administrative expenses (e) 347,275 1,581 348,856 Amortization of acquired intangible assets 19,762 19,762 Other operating (income) expense, net (69 ) (69 ) Income from operations $ 143,283 (1,581 ) $ 141,702 Foreign exchange gains (losses), net 7,603 7,603 Interest income (expense), net (18,507 ) (18,507 ) Other income (expense), net 25,298 25,298 Income before equity-method investment activity, net and income tax expense $ 157,677 (1,581 ) $ 156,096 Equity-method investment activity, net (15 ) — (15 ) Income before income tax expense $ 157,662 (1,581 ) $ 156,081 Income tax expense 29,154 (332 ) 28,822 Net income $ 128,508 (1,249 ) $ 127,259 Net loss (income) attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ 129,269 (1,249 ) $ 128,020 (e) During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 with a corresponding impact on income tax expense of $332. Consolidated Statement of Cash flow Six months ended June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (f) $ 129,269 (1,249 ) $ 128,020 Net loss attributable to redeemable non-controlling interest (761 ) (761 ) Net income (f) $ 128,508 (1,249 ) $ 127,259 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 31,613 31,613 Amortization of debt issuance costs 979 979 Amortization of acquired intangible assets 19,762 19,762 Write-down of intangible assets and property, plant and equipment 850 850 Reserve for doubtful receivables 1,347 1,347 Unrealized loss (gain) on revaluation of foreign currency asset/liability (7,350 ) (7,350 ) Equity-method investment activity, net 15 15 Stock-based compensation expense 18,724 18,724 Deferred income taxes (f) (4,194 ) (332 ) (4,526 ) Others, net 294 294 Change in operating assets and liabilities: Increase in accounts receivable (4,548 ) (4,548 ) Increase in prepaid expenses, other current assets, contract cost assets and other assets (f, g) (71,559 ) (805 ) (72,364 ) Increase in accounts payable 6,289 6,289 Decrease in accrued expenses, other current liabilities and other liabilities (g) (96,965 ) 2,386 (94,579 ) Increase in income taxes payable 25,719 25,719 Net cash provided by operating activities $ 49,484 — $ 49,484 Investing activities Purchase of property, plant and equipment (37,703 ) (37,703 ) Payment for internally generated intangible assets (including intangibles under development) (11,544 ) (11,544 ) Proceeds from sale of property, plant and equipment 309 309 Payment for business acquisitions, net of cash acquired (728 ) (728 ) Payment for redeemable non-controlling interest (4,730 ) (4,730 ) Net cash used for investing activities $ (54,396 ) — $ (54,396 ) Financing activities Repayment of capital lease obligations (1,108 ) (1,108 ) Repayment of long-term debt (20,000 ) (20,000 ) Proceeds from short-term borrowings 105,000 105,000 Repayment of short-term borrowings (60,000 ) (60,000 ) Proceeds from issuance of common shares under stock-based compensation plans 9,388 9,388 Payment for net settlement of stock-based awards (14,229 ) (14,229 ) Payment of earn-out/deferred consideration (1,476 ) (1,476 ) Dividend paid (28,648 ) (28,648 ) Payment for stock repurchased and retired (130,103 ) (130,103 ) Payment for expenses related to stock repurchase (82 ) (82 ) Net cash used for financing activities $ (141,258 ) — $ (141,258 ) Effect of exchange rate changes (24,395 ) (24,395 ) Net increase (decrease) in cash and cash equivalents (146,170 ) (146,170 ) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ 333,903 — $ 333,903 (f) During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 and a tax impact of $332 which is further adjusted by note (g) below. (g) Following the adoption of ASC 606, the Company offset certain contract assets against contract liabilities related to the same customer contract in an amount of $2,386. 2. Summary of significant accounting policies (Continued) (g) Recently issued accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for their 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 will use a modified retrospective adoption approach. The Company expects to complete its assessment of adopting ASU No. 2016-02 in the third quarter of 2018. The Company’s implementation efforts include reviewing existing leases and service contracts, which may include embedded leases. The Company expects a gross-up on its consolidated statements of financial position upon recognition of the right-of-use assets and lease liabilities. The Company continues to evaluate the impact of its pending adoption of ASU 2016-02, which may identify additional impacts this guidance will have on its In June 2016, the FASB issued ASU No. 2016-13, “Measurement of credit losses on financial instruments.” The ASU requires measurement and recognition of expected credit losses for financial assets held by the Company. The ASU is effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020. 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. 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 | 6 Months Ended |
Jun. 30, 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, adjusted for working capital, transaction expenses, indebtedness and measurement period adjustments which did not have a significant impact on the Company’ consolidated statements of income, balance sheets or cash flows in the adjustment periods. 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’ redeemable, non-controlling 49% interest in SSE, was payable only if either the put or call option, each as described below, was exercised. This acquisition enhanced 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 the Company had the right to exercise between January 1, 2018 and January 31, 2018. As 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 holders 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. 3. Business acquisitions (Continued) 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. 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. This amount includes cash consideration of $52,395, net of cash acquired of $4,002, adjusted for working capital, net debt, transaction expenses and measurement period adjustments which did not have a significant impact on the Company’ consolidated statements of income, balance sheets or cash flows in the period of adjustments. This acquisition enhanced 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 $125,329. 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 quarters ended December 31, 2017 and June 30, 2018, 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. 3. Business acquisitions (Continued) 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 $105,451, 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. 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 $9,752. 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. (“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 adjustments for closing date working capital, indebtedness, value transfer, seller transaction expenses and certain employee-related liabilities. In addition, this amount reflects measurement period adjustments related to the Birlasoft and Fiserv transactions. These adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows in the periods in which they were made. The U.S. Delivery Center acquisition enhanced the Company’s supply chain management capabilities for its clients in the consumer packaged goods industry. The OnSource acquisition brought incremental digital capabilities to the Company’s insurance service offerings. The Birlasoft transaction expanded the Company’s end-to-end capabilities for its clients in the healthcare and aviation industries. The Fiserv transaction strengthened the Company’s financial services portfolio and expanded its Australia footprint. The Lease Dimensions acquisition enhanced the Company’s capabilities in commercial lending and leasing. 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2018 are set out in the table below: As of December 31, As of June 30, 2017 2018 Cash and other bank balances 504,468 333,903 Total $ 504,468 $ 333,903 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 6 Months Ended |
Jun. 30, 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 Six months ended June 30, 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 1,347 Deductions/effect of exchange rate fluctuations (1,913 ) (617 ) Closing balance $ 23,660 $ 24,390 Accounts receivable were $716,745 and $715,737, and reserves for doubtful receivables were $23,660 and $24,390, resulting in net accounts receivable balances of $693,085 and $691,347 as of December 31, 2017 and June 30, 2018, respectively. In addition, accounts receivable due after one year amounting to $1,624 and $3,880 as of December 31, 2017 and June 30, 2018, respectively, are included under other assets in the consolidated balance sheets. Accounts receivable from related parties were $36 and $183 as of December 31, 2017 and June 30, 2018, respectively. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 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 June 30, 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 Earn-out 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 June 30, 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) $ 32,095 $ — $ 32,095 $ — Total $ 32,095 $ — $ 32,095 $ — Liabilities Earn-out consideration (Note b, d) $ 23,609 $ — $ — $ 23,609 Derivative instruments (Note b, c) $ 49,378 $ — $ 49,378 $ — Total $ 72,987 $ — $ 49,378 $ 23,609 (a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. (b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. (e) The Company’s estimate of the fair value of redeemable non-controlling interest is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation 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 and six months ended June 30, 2017 and 2018: Three months ended Six months ended June 30, June 30, 2017 2018 2017 2018 Opening balance $ 21,262 $ 23,900 $ 22,435 $ 24,732 Earn-out consideration payable in connection with acquisitions — — 2,320 — Payments made on earn-out consideration (275 ) — (1,482 ) (1,476 ) Change in fair value of earn-out consideration (Note a) 1,713 (650 ) (1,425 ) (633 ) Others (Note b) 574 359 1,426 986 Ending balance $ 23,274 $ 23,609 $ 23,274 $ 23,609 (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) Others is comprised of interest expense included in “interest income (expense), net” and the impact of changes in foreign exchange reported in “foreign exchange gains (losses), net” in the consolidated statements of income. This change also includes a cumulative translation adjustment reported as a component of other comprehensive income (loss). |
Derivative financial instrument
Derivative financial instruments | 6 Months Ended |
Jun. 30, 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 and interest rate. 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 54 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 June 30, 2018 As of December 31, 2017 As of June 30, 2018 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,289,400 $ 1,255,200 $ 54,398 $ (28,423 ) United States Dollars (sell) Mexican Peso (buy) 9,000 6,000 (441 ) (72 ) United States Dollars (sell) Philippines Peso (buy) 76,650 58,250 69 (3,309 ) Euro (sell) United States Dollars (buy) 170,542 134,950 (2,069 ) 3,715 Pound Sterling (buy) United States Dollars (sell) 24,041 27,675 253 (1,333 ) Euro (sell) Romanian Leu (buy) 35,826 20,929 (892 ) (267 ) Japanese Yen (sell) Chinese Renminbi (buy) 60,768 47,243 1,918 (418 ) Pound Sterling (sell) United States Dollars (buy) 80,871 54,194 (2,478 ) (460 ) Australian Dollars (sell) United States Dollars (buy) 136,092 102,782 (5,180 ) 1,435 Interest rate swaps (floating to fixed) 432,117 419,771 9,332 11,849 54,910 (17,283 ) (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 June 30, 2018 As of December 31, 2017 As of June 30, 2018 Assets Prepaid expenses and other current assets $ 43,557 $ 18,782 $ 4,635 $ 1,655 Other assets $ 24,906 $ 11,658 $ — $ — Liabilities Accrued expenses and other current liabilities $ 10,092 $ 16,099 $ 254 $ 8,661 Other liabilities $ 7,842 $ 24,618 $ — $ — 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 June 30, Six months ended June 30, 2017 2018 2017 2018 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ 67,674 $ (25,334 ) $ 42,340 $ 26,357 $ (6,931 ) $ 19,426 $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 Adoption of ASU 2018-02 (refer to note 24) — — — — — — — — — — 2,265 2,265 Net gains (losses) reclassified into statement of income on completion of hedged transactions 15,505 (5,667 ) 9,838 4,282 (760 ) 3,522 24,800 (9,099 ) 15,701 12,561 (2,376 ) 10,185 Changes in fair value of effective portion of outstanding derivatives, net (2 ) 229 227 (32,352 ) 7,995 (24,357 ) 39,506 (14,558 ) 24,948 (48,245 ) 11,619 (36,626 ) Gain (loss) on cash flow hedging derivatives, net (15,507 ) 5,896 (9,611 ) (36,634 ) 8,755 (27,879 ) 14,706 (5,459 ) 9,247 (60,806 ) 13,995 (46,811 ) Closing balance $ 52,167 $ (19,438 ) $ 32,729 $ (10,277 ) $ 1,824 $ (8,453 ) $ 52,167 $ (19,438 ) $ 32,729 $ (10,277 ) $ 1,824 $ (8,453 ) 7. Derivative financial instruments (Continued) The Company’s 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 recognized in OCI on Location of Gain (Loss) from OCI into Statement of Income Derivatives in Derivatives (Effective Portion) reclassified (Effective Portion) Cash Flow Three months ended Six months ended from OCI into Three months ended Six months ended Hedging June 30, June 30, Statement of Income June 30, June 30, Relationships 2017 2018 2017 2018 (Effective Portion) 2017 2018 2017 2018 Forward foreign exchange contracts $ 1,615 $ (33,541 ) $ 40,911 $ (52,220 ) Revenue $ 2,266 $ (1,295 ) $ 6,026 $ (2,769 ) Interest rate swaps (1,617 ) 1,189 (1,405 ) 3,975 Cost of revenue 10,419 3,678 14,989 10,948 Selling, general and administrative expenses 2,907 $ 991 4,155 2,925 Interest expense (87 ) 908 (370 ) 1,457 $ (2 ) $ (32,352 ) $ 39,506 $ (48,245 ) $ 15,505 $ 4,282 $ 24,800 $ 12,561 There are no gains (losses) recognized in income on the ineffective portion of derivatives and excluded from effectiveness testing Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended June 30, Six months ended June 30, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2017 2018 2017 2018 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 1,203 $ (12,541 ) $ 10,113 $ (16,829 ) $ 1,203 $ (12,541 ) $ 10,113 $ (16,829 ) (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 | 6 Months Ended |
Jun. 30, 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 June 30, 2017 2018 Advance income and non-income taxes $ 51,832 $ 76,368 Deferred transition costs 62,029 — Contract asset (Note 19) — 14,454 Customer acquisition cost 19,327 — Prepaid expenses 16,944 28,793 Derivative instruments 48,192 20,437 Employee advances 5,014 3,425 Deposits 4,719 7,783 Advances to suppliers 2,705 5,668 Others 25,580 50,406 $ 236,342 $ 207,334 |
Property, plant and equipment,
Property, plant and equipment, net | 6 Months Ended |
Jun. 30, 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 June 30, 2017 2018 Property, plant and equipment, gross $ 666,031 $ 656,348 Less: Accumulated depreciation and amortization (459,001 ) (453,679 ) Property, plant and equipment, net $ 207,030 $ 202,669 Depreciation expense on property, plant and equipment for the six months ended June 30, 2017 and 2018 was $21,212 and $24,634, respectively, and for the three months ended June 30, 2017 and 2018 was $9,983 and $12,360, respectively. Computer software amortization for the six months ended June 30, 2017 and 2018 amounted to $5,406 and $5,573, respectively, and for the three months ended June 30, 2017 and 2018 amounted to $2,727 and $ 2,760, 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 During the three months ended June 30, 2018, the Company tested for recoverability a group of assets, comprised of computer software and a technology-related intangible asset, as a result of the termination of related customer contracts. Based on the results of its testing, the Company determined that the carrying value of the group of assets was not recoverable and the Company recorded a complete write-down of the carrying value of $850. This write-down has been recorded in other operating (income) expenses, net in the consolidated statement of income and has been allocated to computer software and technology-related intangible assets, amounting to $512 and $338, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2018: As of December 31, As of June 30, 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 ) 254 Effect of exchange rate fluctuations 38,075 (26,015 ) Closing balance $ 1,337,122 $ 1,311,361 The total amount of goodwill deductible for tax purposes was $120,617 and $130,160 as of December 31, 2017 and June 30, 2018, respectively. The Company’s intangible assets are as follows: As of December 31, 2017 As of June 30, 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 $ 358,968 $ 296,603 $ 62,365 Marketing-related intangible assets 52,443 39,212 13,231 51,699 41,063 10,636 Technology-related intangible assets 54,189 28,278 25,911 55,826 33,628 22,198 Other intangible assets 3,081 2,314 767 2,315 1,917 398 Intangible assets under development 15,537 - 15,537 25,027 - 25,027 494,423 362,833 $ 131,590 $ 493,835 $ 373,211 $ 120,624 Amortization expenses for intangible assets disclosed in the consolidated statements of income under amortization of acquired intangible assets for the six months ended June 30, 2017 and 2018 were $15,629 and $19,762, respectively, and for the three months ended June 30, 2017 and 2018 were $8,387 and $9,826, 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 expenses for the six months ended June 30, 2017, and 2018 were $0, and $ 890, respectively, and for the three months ended June 30, 2017 and 2018 were $0, and $490 , respectively. Amortization expenses for the technology-related internally-developed intangible assets 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 The Company recorded a write-down to a technology-related intangible asset during the three months ended June 30, 2018, as described in note 9. |
Short-term borrowings
Short-term borrowings | 6 Months Ended |
Jun. 30, 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 June 30, 2018, the limits available were $15,064 and $14,486, respectively, of which $7,900 and $7,588 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 June 30, 2018, a total of $170,978 and $217,098 respectively, was utilized, of which $170,000 and $215,000, respectively, constituted funded drawdown and $978 and $2,098, 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 June 30, 2018. The unutilized amount on the revolving facility bore a commitment fee of 0.25% as of December 31, 2017 and June 30, 2018. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the six months ended June 30, 2018, the Company was in compliance with the financial covenants. |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2018, the Company was in compliance with the financial covenants of the credit agreement. As of December 31, 2017 and June 30, 2018, the amount outstanding under the term loan, net of debt amortization expense of $1,848 and $1,459, was $698,152 and $678,541, respectively. As of December 31, 2017 and June 30, 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 June 30, 2018 requires quarterly payments of $10,000, and the balance of the loan is due and payable upon the maturity of the term loan on June 30, 2020. The maturity profile of the term loan outstanding as of June 30, 2018, net of debt amortization expense, is as follows: Year ended Amount 2018 19,616 2019 39,272 2020 619,653 Total $ 678,541 In March 2017, Genpact Luxembourg S.à r.l. (the “Issuer”), a wholly owned subsidiary of 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. The issuance was fully guaranteed by the Company. 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 June 30, 2018, the amount outstanding under the notes, net of debt amortization expense of $2,239 and $1,978, was $347,761 and $348,022 respectively, which is payable on April 1, 2022. The Issuer 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 12. Long-term debt (Continued) 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 six months ended June 30, 2018, the Company and its applicable subsidiaries were in compliance with the covenants. Upon certain change of control transactions, the Issuer 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%. In connection with the 3.70% senior notes private offering, the Issuer and the Company entered into a registration rights agreement with the initial purchasers of the outstanding unregistered notes pursuant to which the Issuer and the Company agreed to complete an exchange offer within 455 days after the date of the private offering upon terms identical in all material respects to the terms of the outstanding unregistered notes, except that the transfer restrictions, registration rights and additional interest provisions applicable to the outstanding unregistered notes would not apply to the exchange notes. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 6 Months Ended |
Jun. 30, 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 June 30, 2017 2018 Accrued expenses $ 204,997 $ 169,986 Accrued employee cost 204,506 131,085 Earn-out consideration 14,928 17,938 Statutory liabilities 36,283 30,556 Retirement benefits 21,074 21,272 Derivative instruments 10,346 24,760 Advance from customers 25,476 — Contract liabilities (Note 19) — 74,682 Deferred transition revenue 52,233 — Other liabilities 13,093 11,529 Capital lease obligations 1,546 1,433 $ 584,482 $ 483,241 |
Other liabilities
Other liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 14. Other liabilities Other liabilities consist of the following: As of December 31, As of June 30, 2017 2018 Accrued employee cost $ 14,020 $ 10,133 Earn-out consideration 9,804 5,671 Retirement benefits 40,520 43,726 Derivative instruments 7,842 24,618 Advance from customers 790 — Contract liabilities (Note 19) — 54,621 Deferred transition revenue 70,900 — Others 22,069 21,494 Capital lease obligations 2,664 2,095 $ 168,609 $ 162,358 |
Employee benefit plans
Employee benefit plans | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2017 and 2018 include the following components: Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Service costs $ 1,857 $ 2,058 $ 3,577 $ 4,053 Interest costs 793 939 1,527 1,934 Amortization of actuarial loss 227 235 432 555 Expected return on plan assets (539 ) (744 ) (1,031 ) (1,480 ) Net defined benefit plan costs $ 2,338 $ 2,488 $ 4,505 $ 5,062 On January 1, 2018, the Company adopted ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. The service cost is recognized within cost of revenue and selling, general and administrative expenses, depending on the functional area of the underlying employees included in the plans, and the non-operating components of net benefit plan costs are included within other income (expense), net in the consolidated statements of income. Defined contribution plans During the three and six months ended June 30, 2017 and 2018, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 India $ 5,566 $ 6,061 $ 10,783 $ 12,005 U.S. 2,640 2,359 6,920 6,958 U.K. 2,354 3,187 4,074 5,324 China 3,740 4,408 7,568 8,802 Other regions 948 1,172 2,077 2,332 Total $ 15,248 $ 17,187 $ 31,422 $ 35,421 |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Jun. 30, 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 date of 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 six months ended June 30, 2017 and June 30, 2018 were $12,078 and $18,343, respectively, and for the three months ended June 30, 2017 and 2018 were $7,233 and $10,746, 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 six months ended June 30, 2017 and June 30, 2018. Six months ended June 30, 2017 Six months ended June 30, 2018 Dividend yield 0.97% 0.95% - 0.99% Expected life (in months) 84 84 Risk-free rate of interest 2.25% 2.67%-2.93% Volatility 24.28% 22.67%-22.73% 16. Stock-based compensation (Continued) A summary of stock option activity during the six months ended June 30, 2018 is set out below: Six months ended June 30, 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 2,568,106 30.49 — — Forfeited (70,000) 27.65 — — Expired — — — — Exercised (366,382 ) 16.95 — 4,389 Outstanding as of June 30, 2018 7,266,369 $ 23.45 6.8 $ 43,836 Vested as of June 30, 2018 and expected to vest thereafter (Note a) 7,082,892 $ 23.34 6.8 $ 43,429 Vested and exercisable as of June 30, 2018 3,388,264 $ 17.61 4.2 $ 38,347 Weighted average grant date fair value of grants during the period $ 8.33 (a) Options expected to vest reflect an estimated forfeiture rate. As of June 30, 2018, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $25,160, which will be recognized over the weighted average remaining requisite vesting period of 4.4 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 RSU activity during the six months ended June 30, 2018 is set out below: Six months ended June 30, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted 79,562 29.51 Vested (Note a) (202,251 ) 25.12 Forfeited (116,004) 26.18 Outstanding as of June 30, 2018 1,366,558 $ 26.52 Expected to vest (Note b) 1,203,082 (a) 149,376 RSUs that vested during the period were net settled upon vesting by issuing 104,365 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 six months ended June 30, 2018 after withholding shares to the extent of minimum statutory withholding taxes. 16. Stock-based compensation (Continued) As of June 30, 2018, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $22,709, which will be recognized over the weighted average remaining requisite vesting period of 2.4 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 six months ended June 30, 2018 is set out below: Six months ended June 30, 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 1,642,740 30.64 3,285,480 Vested (Note a) (1,087,751) 22.73 (1,087,751) Forfeited (186,279 ) 25.24 (186,279 ) Adjustment upon final determination of level of performance goal achievement (Note b) (4,780 ) 25.22 Adjustment upon final determination of level of performance goal achievement (Note b) (4,780 ) Outstanding as of June 30, 2018 3,264,870 $ 28.05 4,907,610 Expected to vest (Note c) 2,681,322 (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 June 30, 2018, the total remaining unrecognized stock-based compensation cost related to PUs amounted to $56,414, which will be recognized over the weighted average remaining requisite vesting period of 2.3 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, 2028. 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 six months ended June 30, 2017 and 2018, 100,357 and 114,951 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 six months ended June 30, 2017 and 2018 was $273 and $381, respectively, and for the three months ended June 30, 2017 and 2018 was $132 and $191 respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital stock
Capital stock | 6 Months Ended |
Jun. 30, 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 existing share repurchase program. 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. During the six months ended June 30, 2017 and June 30, 2018, the Company also purchased 808,293 and 4,114,882 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 six months ended June 30, 2017 and June 30, 2018, $16 and $82, 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 and June 28, 2017, the Company paid dividends of $0.06 per share, amounting to $11,957 and $11,558 in the aggregate, to shareholders of record as of March 10, 2017 and June 12, 2017, respectively. 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 and June 20, 2018, the Company paid dividends of $0.075 per share, amounting to $14,408 and $14,240 in the aggregate, to shareholders of record as of March 9, 2018 and June 8, 2018, respectively. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 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 1,127,185 and 1,465,442 for the six months ended June 30, 2017 and 2018, respectively, and 1,251,323 and 2,270,885 for the three months ended June 30, 2017 and 2018, respectively. Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Net income available to Genpact Limited common shareholders $ 68,946 $ 64,574 $ 122,284 $ 129,269 Weighted average number of common shares used in computing basic earnings per common share 191,469,593 190,132,664 195,269,561 191,474,645 Dilutive effect of stock-based awards 2,262,813 3,233,310 2,924,611 3,352,627 Weighted average number of common shares used in computing dilutive earnings per common share 193,732,406 193,365,974 198,194,172 194,827,272 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.36 $ 0.34 $ 0.63 $ 0.68 Diluted $ 0.36 $ 0.33 $ 0.62 $ 0.66 |
Net revenues
Net revenues | 6 Months Ended |
Jun. 30, 2018 | |
Revenues [Abstract] | |
Net revenues | 19. Disaggregation of revenue In the following tables, the Company’s revenue is disaggregated by customer classification, service type, major industrial vertical and location of service delivery center. Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 GE $ 63,192 $ 65,444 $ 132,446 $ 123,493 Global Clients 607,505 663,117 1,161,246 1,293,980 Total net revenues $ 670,697 $ 728,561 $ 1,293,692 $ 1,417,473 Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Business process outsourcing $ 556,227 $ 605,911 $ 1,067,510 $ 1,179,972 Information technology services 114,470 122,650 226,182 237,501 Total net revenues $ 670,697 $ 728,561 $ 1,293,692 $ 1,417,473 Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Banking, financial services and insurance $ 269,295 $ 280,290 $ 507,583 $ 554,413 Consumer goods, retail, life sciences and healthcare 205,814 208,546 401,537 408,174 High tech, manufacturing and services 195,588 239,725 384,572 454,886 Total net revenues $ 670,697 $ 728,561 $ 1,293,692 $ 1,417,473 The Company has reclassified the disaggregation of its revenue to reflect how the Company groups its clients into key industry verticals. Revenue from prior periods is also presented based on the classifications used in the current period. Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 India $ 412,323 $ 464,922 $ 823,378 $ 854,056 Asia, other than India 70,747 78,230 137,409 157,691 North and Latin America 109,016 151,840 194,058 304,120 Europe 78,611 33,569 138,847 101,606 Total net revenues $ 670,697 $ 728,561 $ 1,293,692 $ 1,417,473 19. 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 that in instances where the timing of revenue recognition differs from the timing of invoicing, the related contracts generally do not include a significant financing component. Refer to note 5 for details on the Company’s accounts receivable and reserve for doubtful receivables. The following table provides details of the Company’s contract liabilities: Three months ended June 30, 2018 Six months ended June 30, 2018 Particulars Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Opening balance $ 34,570 $ 102,428 $ 26,266 $ 101,785 Impact of opening balance offset — $ 24,427 — $ 21,348 Gross opening balance $ 34,570 $ 126,855 $ 26,266 $ 123,133 Additions 5,488 18,375 16,736 32,711 Revenue recognized (8,959 ) (21,752 ) (11,903 ) (32,356 ) Currency translation adjustments (758 ) (781 ) (758 ) (791 ) Gross closing balance $ 30,341 $ 122,697 $ 30,341 $ 122,697 Impact of offset with contract asset — (23,735 ) — (23,735 ) Closing balance (Note a) $ 30,341 $ 98,962 $ 30,341 $ 98,962 (a) Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet. The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of June 30, 2018: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 99,666 44,970 45,059 9,220 417 The Company has applied the practical expedient related to contract duration and has not disclosed information about remaining performance obligations that have original expected durations of one year or less. 19. The following table provides details of the Company’s contract assets: Particulars Three months ended June 30, 2018 Six months ended June 30, 2018 Opening balance $ 48,303 $ 43,366 Impact of opening balance offset 24,427 21,348 Gross opening balance $ 72,730 $ 64,714 Additions 5,428 19,518 Reduction in revenue recognized (12,752 ) (18,826 ) Gross closing balance $ 65,406 $ 65,406 Impact of offset with contract liability (23,735 ) (23,735 ) Closing balance (Note b) $ 41,671 $ 41,671 (b) Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. The following table provides details of the Company’s contract cost assets: Three months ended June 30, 2018 Six months ended June 30, 2018 Particulars Sales incentive programs Transition activities Sales incentive programs Transition activities Opening balance $ 23,271 $ 139,164 $ 23,227 $ 139,284 Closing balance 24,808 137,370 24,808 137,370 Amortization 3,604 23,321 6,843 34,900 |
Cost of revenue
Cost of revenue | 6 Months Ended |
Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | 20. Cost of revenue Cost of revenue consists of the following: Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Personnel expenses $ 284,557 $ 322,799 $ 553,746 $ 632,931 Operational expenses 119,589 127,109 222,305 248,466 Depreciation and amortization 10,362 12,990 21,794 25,825 $ 414,508 $ 462,898 $ 797,845 $ 907,222 |
Selling, general and administra
Selling, general and administrative expenses | 6 Months Ended |
Jun. 30, 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 June 30, Six months ended June 30, 2017 2018 2017 2018 Personnel expenses $ 122,543 $ 126,626 $ 245,112 $ 254,694 Operational expenses 42,867 46,920 78,680 87,309 Depreciation and amortization 2,348 2,620 4,824 5,272 $ 167,758 $ 176,166 $ 328,616 $ 347,275 |
Other operating (income) expens
Other operating (income) expense, net | 6 Months Ended |
Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | |
Other operating (income) expense, net | 22. Other operating (income) expense, net Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Other operating (income) expense $ (2,628 ) $ (51 ) $ (7,028 ) $ (286 ) Provision for impairment of intangible assets and property, plant and equipment - 850 - 850 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) 1,713 (650 ) $ (1,425 ) $ (633 ) Other operating (income) expense, net $ (915 ) $ 149 $ (8,453 ) $ (69 ) |
Interest income (expense), net
Interest income (expense), net | 6 Months Ended |
Jun. 30, 2018 | |
Banking And Thrift Interest [Abstract] | |
Interest Income (expense), net | 23. Interest income (expense), net Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Interest income $ 863 $ 1,774 $ 1,994 $ 5,144 Interest expense (10,713 ) (12,181 ) (17,337 ) (23,651 ) Interest income (expense), net $ (9,850 ) $ (10,407 ) $ (15,343 ) $ (18,507 ) |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 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. 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 June 30, 2018 based on information available as of June 30, 2018. The Company has not recorded any tax liability for transition tax as of December 31, 2017 and June 30, 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 three and six months ended June 30, 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 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 June 30, 2018: 2018 Opening balance at January 1 $ 26,060 Increase related to prior year tax positions, including recorded in acquisition accounting 231 Decrease related to prior year tax positions (234 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (479 ) Effect of exchange rate changes (1,142 ) Closing balance at June 30 $ 24,436 The Company’s unrecognized tax benefits as of June 30, 2018 include an amount of $23,254, which, if recognized, would impact the effective tax rate. As of June 30, 2018 and December 31, 2017, the Company had accrued approximately $4,634 and $4,614, respectively, in interest relating to unrecognized tax benefits. During the year ended December 31, 2017 and the six months ended June 30, 2018, the company recognized approximately $(224) and $345, respectively, excluding the impact of exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2017 and June 30, 2018, the Company had accrued approximately $1,033 and $951, respectively, for penalties. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2017 and 2018, the Company recognized net revenues of $187 and $439, respectively, and for three months ended June 30, 2017 and 2018, During the six months ended June 30, 2017, the Company recognized net revenues of $5,400, and during the three months ended June 30, 2017, the Company recognized net revenues of $2,189, from a client that was a non-consolidating affiliate of the Company. Cost of revenue 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 six months ended June 30, 2017 and 2018, cost of revenue includes an amount of $909 and $449, respectively, and for the three months ended June 30, 2017 and 2018, cost of revenue includes an amount of $335 and $258, 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 six months ended June 30, 2017 and 2018, selling, general and administrative expenses include an amount of $148 and $90, respectively, the three months ended June 30, 2017 and 2018, selling, general and administrative expenses include an amount of $54 and $41, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates. During the three and six months ended June 30, 2017 and 2018, the Company engaged a significant shareholder to provide certain services , Investment in equity affiliates During the six months ended June 30, 2017, the Company invested $496 in its non-consolidating affiliates. During the three and six months ended June 30, 2017, the Company recorded a charge of $28 and $2,849 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 June 30, 2018, the Company’s investments in its non-consolidating affiliates amounted to $886 and $834, respectively. Others During the six months ended June 30, 2017, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $477, and for the three months ended June 30, 2017, such cost reimbursements amounted to $239. 25. Related party transactions (Continued) During the three and six months ended June 30, 2017, the Company made payments of $2,540 and $3,847, respectively, 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 | 6 Months Ended |
Jun. 30, 2018 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | 26. Other Income (expense), net Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Government incentives $ 11,882 $ 10,196 $ 11,882 $ 25,696 Other income/(expense) (322 ) (448 ) 231 (398 ) Other Income (expense), net $ 11,560 $ 9,748 $ 12,113 $ 25,298 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 27. Commitments and contingencies Capital commitments As of December 31, 2017 and June 30, 2018, the Company has committed to spend $8,314 and $15,636, 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 $9,686 as of December 31, 2017 and June 30, 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 Certain units of our Indian subsidiaries are established as Software Technology Parks of India (“STPI”) units or Special Economic Zone (“SEZ”) units under the relevant regulations issued by the Government of India. These units are exempt from customs and central excise duties, and other levies on imported and indigenous capital goods, stores and spares, and service tax on services. SEZ units are also exempt from the goods and services tax (“GST”) that was introduced in India in 2017. The Company has undertaken to pay taxes and duties, if any, in respect of capital goods, stores, spares and services consumed duty-free, in the event that certain terms and conditions are not fulfilled. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 28. Subsequent Events Acquisition On July 16, 2018, the Company signed a definitive agreement to acquire the outstanding equity interests in Barkawi Management Consultants GmbH & Co. KG and certain related entities (collectively referred to as “Barkawi”) for estimated cash consideration of $100,090, subject to certain adjustments. The closing of the transaction is subject to certain customary closing conditions. Barkawi is a leading supply chain management consulting business. Dividend On July 25, 2018, the Company announced that its Board of Directors has declared a dividend for the third quarter of 2018 of $0.075 per common share, which will be paid on or about September 19, 2018 to shareholders of record as of the close of business on September 10, 2018. The declaration of any future dividends will be at the discretion of the Board of Directors. Credit Facility On August 9, 2018, the Company refinanced its 2015 credit facility with certain amended terms and net settled the outstanding borrowings of $910,000 through a new credit facility comprised of a $680,000 term loan and a $500,000 revolving credit facility, each having a term of five years. 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 1.375% per annum or a base rate plus an applicable margin equal to 0.375% per annum, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.375% per annum. |
Guarantor financial information
Guarantor financial information | 6 Months Ended |
Jun. 30, 2018 | |
Guarantor Financial Information [Abstract] | |
Guarantor financial information | 29. Guarantor financial information In March 2017, the Issuer issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering. See Note 12 for additional information. 29. Guarantor financial information (continued) Condensed Consolidating Balance Sheet As of June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 4,326 $ 576 $ 329,001 $ — $ 333,903 Accounts receivable intercompany, net 88,551 — — (88,551 ) — Accounts receivable, net — — 691,347 — 691,347 Intercompany loans 323,168 1,000 1,714,063 (2,038,231 ) — Intercompany other receivable 10,106 86,960 106,318 (203,384 ) — Prepaid expenses and other current assets - 2,003 205,331 — 207,334 Total current assets $ 426,151 $ 90,539 $ 3,046,060 $ (2,330,166 ) $ 1,232,584 Property, plant and equipment, Net 313 — 202,356 — 202,669 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 88,278 — 88,278 Investment in subsidiaries 402,500 2,900,132 507,630 (3,810,262 ) — Investment in equity affiliates — — 834 — 834 Investment in debentures, intercompany 582,845 — — (582,845 ) — Intercompany other receivable — 60,391 — (60,391 ) — Intangible assets, net — — 120,624 — 120,624 Goodwill — — 1,311,361 — 1,311,361 Contract cost assets — — 162,178 — 162,178 Other assets — — 147,550 — 147,550 Total assets $ 1,411,809 $ 3,051,062 $ 6,086,871 $ (7,283,664 ) $ 3,266,078 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 215,000 $ — $ 215,000 Intercompany loans 16,026 1,758,537 263,668 (2,038,231 ) — Current portion of long-term debt — — 39,249 — 39,249 Accounts payable 81 11 20,850 — 20,942 Intercompany accounts payable — — 88,551 (88,551 ) — Income taxes payable 692 (377 ) 54,198 — 54,513 Intercompany other payable 31,257 75,209 96,918 (203,384 ) — Accrued expenses and other current liabilities 7,765 4,353 471,123 — 483,241 Total current liabilities $ 55,821 $ 1,837,733 $ 1,249,557 $ (2,330,166 ) $ 812,945 Long-term debt, less current portion 348,022 — 639,292 — 987,314 Deferred tax liabilities — — 7,036 — 7,036 Intercompany other payable — — 60,391 (60,391 ) — Non-current intercompany loans payable 500,000 — 582,848 (1,082,848 ) — Other liabilities 336 151 161,871 — 162,358 Total liabilities $ 904,179 $ 1,837,884 $ 2,700,995 $ (3,473,405 ) $ 1,969,653 Redeemable non-controlling interest — — — — — Shareholders' equity Common stock 28 1,894 190,000 (190,027 ) 1,895 Additional paid-in capital 574,698 1,438,071 1,110,610 (1,685,307 ) 1,438,072 Retained earnings 65,278 254,875 2,509,035 (2,491,068 ) 338,120 Accumulated other comprehensive income (loss) (132,374 ) (481,662 ) (423,769 ) 556,143 (481,662 ) Total equity 507,630 1,213,178 3,385,876 (3,810,259 ) 1,296,425 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 1,411,809 $ 3,051,062 $ 6,086,871 $ (7,283,664 ) $ 3,266,078 29. Guarantor financial information (continued) Condensed Consolidating Balance Sheet As of December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 4,507 $ 2,136 $ 497,825 $ — $ 504,468 Accounts receivable intercompany, net 82,935 — — (82,935 ) — Accounts receivable, net — — 693,085 — 693,085 Intercompany loans 194,854 — 1,620,537 (1,815,391 ) — Intercompany other receivable 25,343 82,631 89,189 (197,163 ) — Prepaid expenses and other current assets 311 1,276 234,755 — 236,342 Total current assets $ 307,950 $ 86,043 $ 3,135,391 $ (2,095,489 ) $ 1,433,895 Property, plant and equipment, net 391 — 206,639 — 207,030 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 76,929 — 76,929 Investment in subsidiaries 426,410 2,864,386 529,179 (3,819,975 ) — Investment in equity affiliates — — 886 — 886 Investment in debentures, intercompany 717,909 — — (717,909 ) — Intercompany other receivable — 49,761 — (49,761 ) — Intangible assets, net — — 131,590 — 131,590 Goodwill — — 1,337,122 — 1,337,122 Other assets — — 262,169 — 262,169 Total assets $ 1,452,660 $ 3,000,190 $ 6,179,905 $ (7,183,134 ) $ 3,449,621 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 170,000 $ — $ 170,000 Intercompany loans 38,000 1,597,537 179,854 (1,815,391 ) — Current portion of long-term debt — — 39,226 — 39,226 Accounts payable 103 58 14,889 — 15,050 Intercompany accounts payable — — 82,935 (82,935 ) — Income taxes payable 885 — 29,141 — 30,026 Intercompany other payable 29,526 59,266 108,371 (197,163 ) — Accrued expenses and other current liabilities 5,995 2,390 576,097 — 584,482 Total current liabilities $ 74,509 $ 1,659,251 $ 1,200,513 $ (2,095,489 ) $ 838,784 Long-term debt, less current portion 347,761 — 658,926 — 1,006,687 Deferred tax liabilities — — 6,747 — 6,747 Intercompany other payable — — 49,761 (49,761 ) — Non-current intercompany loans payable 500,000 — 717,909 (1,217,909 ) — Other liabilities 1,211 153 167,245 — 168,609 Total liabilities $ 923,481 $ 1,659,404 $ 2,801,101 $ (3,363,159 ) $ 2,020,827 Redeemable non-controlling interest — — 4750 — 4750 Shareholders' equity Common stock — 1,924 189,649 (189,649 ) 1,924 Additional paid-in capital 575,890 1,421,354 1,107,383 (1,683,259 ) 1,421,368 Retained earnings (12,277 ) 272,738 2,504,580 (2,409,059 ) 355,982 Accumulated other comprehensive income (loss) (34,434 ) (355,230 ) (427,558 ) 461,992 (355,230 ) Total equity 529,179 1,340,786 3,374,054 (3,819,975 ) 1,424,044 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 1,452,660 $ 3,000,190 $ 6,179,905 $ (7,183,134 ) $ 3,449,621 29. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Three months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 12,119 $ — $ 731,024 $ (14,582 ) $ 728,561 Cost of revenue — — 462,898 — 462,898 Gross profit $ 12,119 $ — $ 268,126 $ (14,582 ) $ 265,663 Operating expenses: Selling, general and administrative expenses 2,378 10,270 178,100 (14,582 ) 176,166 Amortization of acquired intangible assets 48 — 9,778 — 9,826 Other operating (income) expense, net — — 149 — 149 Income (loss) from operations $ 9,693 $ (10,270 ) $ 80,099 $ - $ 79,522 Foreign exchange gains (losses), net 208 281 2,316 — 2,805 Interest income (expense), net (3,489 ) — (6,918 ) — (10,407 ) Intercompany interest income (expense), net 19,583 (4,068 ) (15,515 ) — — Other income (expense), net — — 9,748 — 9,748 Income (loss) before equity-method investment activity, net and income tax expense $ 25,995 $ (14,057 ) $ 69,730 $ - $ 81,668 Gain (loss) on equity-method investment activity, net 3,588 78,631 27,987 (110,221 ) (15 ) Income before income tax expense $ 29,583 $ 64,574 $ 97,717 $ (110,221 ) $ 81,653 Income tax expense 1,596 — 15,483 — 17,079 Net income $ 27,987 $ 64,574 $ 82,234 $ (110,221 ) $ 64,574 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 27,987 $ 64,574 $ 82,234 $ (110,221 ) $ 64,574 29. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Six months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 24,058 $ — $ 1,417,473 $ (24,058 ) $ 1,417,473 Cost of revenue — — 907,222 — 907,222 Gross profit $ 24,058 $ — $ 510,251 $ (24,058 ) $ 510,251 Operating expenses: Selling, general and administrative expenses 4,001 11,762 355,636 (24,124 ) 347,275 Amortization of acquired intangible assets 48 — 19,714 — 19,762 Other operating (income) expense, net 17 — (86 ) — (69 ) Income (loss) from operations $ 19,992 $ (11,762 ) $ 134,987 $ 66 $ 143,283 Foreign exchange gains (losses), net 1,161 502 5,940 — 7,603 Interest income (expense), net (6,978 ) — (11,529 ) — (18,507 ) Intercompany interest income (expense), net 40,125 (7,303 ) (32,822 ) — — Other income (expense), net — — 25,298 — 25,298 Income (loss) before equity-method investment activity, net and income tax expense $ 54,300 $ (18,563 ) $ 121,874 $ 66 $ 157,677 Gain (loss) on equity-method investment activity, net 11,030 147,832 62,045 (220,922 ) (15 ) Income before income tax expense $ 65,330 $ 129,269 $ 183,919 $ (220,856 ) $ 157,662 Income tax expense 3,287 — 25,867 — 29,154 Net income $ 62,043 $ 129,269 $ 158,052 $ (220,856 ) $ 128,508 Net loss attributable to redeemable non-controlling interest — — (761 ) — (761 ) Net income attributable to Genpact Limited shareholders $ 62,043 $ 129,269 $ 158,813 $ (220,856 ) $ 129,269 29. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Three months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 15,164 $ — $ 670,697 $ (15,164 ) $ 670,697 Cost of revenue 116 1,476 412,916 — 414,508 Gross profit $ 15,048 $ (1,476 ) $ 257,781 $ (15,164 ) $ 256,189 Operating expenses: Selling, general and administrative expenses 3,009 6,622 173,291 (15,164 ) 167,758 Amortization of acquired intangible assets — — 8,387 — 8,387 Other operating (income) expense, net 1,997 — (2,912 ) — (915 ) Income (loss) from operations $ 10,042 $ (8,098 ) $ 79,015 $ - $ 80,959 Foreign exchange gains (losses), net 1,412 — 501 — 1,913 Interest income (expense), net (3,762 ) — (6,088 ) — (9,850 ) Intercompany interest income (expense), net 24,586 (2,472 ) (22,114 ) — — Other income (expense), net — — 11,560 — 11,560 Income (loss) before equity-method investment activity, net and income tax expense $ 32,278 $ (10,570 ) $ 62,874 $ - $ 84,582 Gain (loss) on equity-method investment activity, net 5,982 79,516 36,418 (121,925 ) (9 ) Income before income tax expense $ 38,260 $ 68,946 $ 99,292 $ (121,925 ) $ 84,573 Income tax expense 1,842 — 13,629 — 15,471 Net income $ 36,418 $ 68,946 $ 85,663 $ (121,925 ) $ 69,102 Net loss attributable to redeemable non-controlling interest — — (156 ) — (156 ) Net income attributable to Genpact Limited shareholders $ 36,418 $ 68,946 $ 85,507 $ (121,925 ) $ 68,946 29. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Six months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 22,726 $ — $ 1,293,692 $ (22,726 ) $ 1,293,692 Cost of revenue 116 1,476 796,253 — 797,845 Gross profit $ 22,610 $ (1,476 ) $ 497,439 $ (22,726 ) $ 495,847 Operating expenses: Selling, general and administrative expenses 4,150 10,411 336,781 (22,726 ) 328,616 Amortization of acquired intangible assets — — 15,629 — 15,629 Other operating (income) expense, net (1,141 ) — (7,312 ) — (8,453 ) Income (loss) from operations $ 19,601 $ (11,887 ) $ 152,341 $ - $ 160,055 Foreign exchange gains (losses), net 3,028 (5 ) (6,023 ) — (3,000 ) Interest income (expense), net 14,175 — (29,518 ) — (15,343 ) Intercompany interest income (expense), net 26,833 (4,769 ) (22,064 ) — — Other income (expense), net — — 12,113 — 12,113 Income (loss) before equity-method investment activity, net and income tax expense $ 63,637 $ (16,661 ) $ 106,849 $ - $ 153,825 Gain (loss) on equity-method investment activity, net 7,961 138,944 68,272 (219,744 ) (4,567 ) Income before income tax expense $ 71,598 $ 122,283 $ 175,121 $ (219,744 ) $ 149,258 Income tax expense 3,325 — 24,391 — 27,716 Net income $ 68,273 $ 122,283 $ 150,730 $ (219,744 ) $ 121,542 Net loss attributable to redeemable non-controlling interest — — 742 — 742 Net income attributable to Genpact Limited shareholders $ 68,273 $ 122,283 $ 151,472 $ (219,744 ) $ 122,284 29. Guarantor financial information (continued) Condensed Consolidating Statement of Comprehensive Income (Loss) Three months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 27,987 $ 64,574 $ 82,234 $ (110,221 ) $ 64,574 $ — Other comprehensive income: Currency translation adjustments (47,357 ) (73,681 ) (73,681 ) 121,038 (73,681 ) — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (26,429 ) (27,879 ) (26,429 ) 52,858 (27,879 ) — Retirement benefits, net of taxes (7 ) 617 (7 ) 14 617 — Other comprehensive income (loss) (73,793 ) (100,943 ) (100,117 ) 173,910 (100,943 ) — Comprehensive income (loss) $ (45,806 ) $ (36,369 ) $ (17,883 ) $ 63,689 $ (36,369 ) $ — Six months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 62,045 $ 129,269 $ 158,812 $ (220,857 ) $ 129,269 $ (761 ) Other comprehensive income: Currency translation adjustments (53,709 ) (83,016 ) (83,016 ) 136,725 (83,016 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (42,110 ) (46,811 ) (45,361 ) 87,471 (46,811 ) — Retirement benefits, net of taxes 73 1,130 506 (579 ) 1,130 — Other comprehensive income (loss) (95,746 ) (128,697 ) (127,871 ) 223,617 (128,697 ) (424 ) Comprehensive income (loss) $ (33,701 ) $ 572 $ 30,941 $ 2,760 $ 572 $ (1,185 ) Three months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 36,418 $ 68,946 $ 85,507 $ (121,925 ) $ 68,946 $ 156 Other comprehensive income: Currency translation adjustments 16,557 20,085 20,085 (36,642 ) 20,085 (66 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (11,033 ) (9,611 ) (9,611 ) 20,644 (9,611 ) — Retirement benefits, net of taxes — 223 223 (223 ) 223 — Other comprehensive income (loss) 5,524 10,697 10,697 (16,221 ) 10,697 (66 ) Comprehensive income (loss) $ 41,942 $ 79,643 $ 96,204 $ (138,146 ) $ 79,643 $ 90 Six months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 68,272 $ 122,284 $ 151,468 $ (219,740 ) $ 122,284 $ (742 ) Other comprehensive income: Currency translation adjustments 60,103 71,712 71,712 (131,815 ) 71,712 (78 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 9,374 9,247 9,247 (18,621 ) 9,247 — Retirement benefits, net of taxes 70 342 342 (412 ) 342 — Other comprehensive income (loss) 69,547 81,301 81,301 (150,848 ) 81,301 (78 ) Comprehensive income (loss) $ 137,819 $ 203,585 $ 232,769 $ (370,588 ) $ 203,585 $ (820 ) 29. Guarantor financial information (continued) Condensed Consolidating Cash Flow Six months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (64,501 ) $ 1,114 $ (110,032 ) $ 222,903 $ 49,484 Investing activities Purchase of property, plant and equipment — — (37,703 ) — (37,703 ) Payment for internally generated intangible assets (including intangibles under development) — — (11,544 ) — (11,544 ) Proceeds from sale of property, plant and equipment — — 309 — 309 Investment in equity affiliates — — - — - Investment in subsidiaries (2,000 ) — 2,063 (63 ) - Proceeds from redemption of debentures, intercompany 91,761 — - (91,761 ) - Payment for business acquisitions, net of cash acquired — — (728 ) — (728 ) Payment for purchase of redeemable non-controlling interest — — (4,730 ) — (4,730 ) Net cash (used for) provided by investing activities $ 89,761 $ — (52,333 ) $ (91,824 ) $ (54,396 ) Financing activities Repayment of capital lease obligations — — (1,108 ) — (1,108 ) Payment of debt issuance costs — — — — — Proceeds from long-term debt — — — — — Repayment of long-term debt — — (20,000 ) — (20,000 ) Proceeds from short-term borrowings — — 105,000 — 105,000 Repayment of Short-term borrowings — — (60,000 ) — (60,000 ) Proceeds from intercompany loans 32,000 212,500 170,657 (415,157 ) — Repayment of intercompany loans (53,978 ) (51,500 ) (86,839 ) 192,317 — Proceeds from issuance of common shares under stock-based compensation plans — 9,388 — — 9,388 Payment for net settlement of stock-based awards — (14,229 ) — — (14,229 ) Payment of earn-out/deferred consideration — — (1,476 ) — (1,476 ) Dividend paid — (28,648 ) — — (28,648 ) Payment for stock repurchased and retired — (130,103 ) — — (130,103 ) Payment for expenses related to stock repurchase — (82 ) — — (82 ) Payment for redemption of debentures, intercompany — — (91,761 ) 91,761 — Net cash (used for) provided by financing activities $ (21,978 ) $ (2,674 ) $ 14,473 $ (131,079 ) $ (141,258 ) Effect of exchange rate changes (3,463 ) — (20,932 ) — (24,395 ) Net increase (decrease) in cash and cash equivalents 3,282 (1,560 ) (147,892 ) — (146,170 ) Cash and cash equivalents at the beginning of the period 4,507 2,136 497,825 — 504,468 Cash and cash equivalents at the end of the period $ 4,326 $ 576 $ 329,001 $ — $ 333,903 29. Guarantor financial information (continued) Condensed Consolidating Cash Flow Six months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (331,065 ) $ (8,331 ) $ (142,528 ) $ 597,248 $ 115,324 Investing activities Purchase of property, plant and equipment — — (29,350 ) — (29,350 ) Payment for internally generated intangible assets (including intangibles under development) — — (8,950 ) — (8,950 ) Proceeds from sale of property, plant and equipment — — 566 — 566 Investment in equity affiliates — — (496 ) — (496 ) Investment in subsidiaries — — — — — Payment for business acquisitions, net of cash acquired — — (207,181 ) — (207,181 ) Net cash (used for) provided by investing activities $ — $ — $ (245,411 ) $ - $ (245,411 ) Financing activities Repayment of capital lease obligations — — (1,106 ) — (1,106 ) Payment of debt issuance costs (1,481 ) — — — (1,481 ) Proceeds from long-term debt 350,000 — — — 350,000 Repayment of long-term debt — — (20,000 ) — (20,000 ) Proceeds from short-term borrowings — — 230,000 — 230,000 Repayment of short-term borrowings — — (185,000 ) — (185,000 ) Proceeds from intercompany loans 10,000 249,500 546,863 (806,363 ) — Repayment of intercompany loans (29,615 ) — (179,500 ) 209,115 — Proceeds from issuance of common shares under stock-based compensation plans — 10,080 — — 10,080 Payment for net settlement of stock-based awards — (9,949 ) — — (9,949 ) Payment of earn-out/deferred consideration — — (1,287 ) — (1,287 ) Dividend paid — (23,515 ) — — (23,515 ) Payment for stock repurchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock repurchase — (16 ) — — (16 ) Net cash (used for) provided by financing activities $ 328,904 $ 6,316 $ 389,970 $ (597,248 ) $ 127,942 Effect of exchange rate changes 810 — 19,776 — 20,586 Net increase (decrease) in cash and cash equivalents (2,161 ) (2,015 ) 2,031 — (2,145 ) Cash and cash equivalents at the beginning of the period 11,215 7,849 403,559 — 422,623 Cash and cash equivalents at the end of the period $ 9,864 $ 5,834 $ 425,366 $ — $ 441,064 |
Summary of significant accoun37
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 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 Technology-related intangible assets 2-8 years Other intangible assets 3-5 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 12% of receivables as of December 31, 2017 and June 30, 2018, respectively. GE accounted for 10% |
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 as was 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 liabilities 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 are provided primarily 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 Company expects to be entitled in exchange for those services. Revenues from services rendered under time-and-material 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 services rendered between the last billing date and the balance sheet date. The Company’s customer contracts sometimes 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 records deferred revenue attributable to certain process transition activities where such activities do not represent separate performance obligations. 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 the generation or enhancement of resources. Such costs are expected to be recoverable under the contract and are therefore classified as contract cost assets and 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 an 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 ratably over the subscription term. All incremental and direct costs incurred for acquiring contracts, such as certain sales commissions, are classified as contract cost assets. 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 assets. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and subtracted from revenue. Timing of revenue recognition may differ from the timing of invoicing. If a 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 a contract liability. Contract assets and contract liabilities relating to the same customer contract are offset against each other 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 2—“Summary of significant accounting policies” to the consolidated 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 often enters into contracts with customers that 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 rather than 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 sometimes 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. Impact on consolidated financial statements The following tables summarize the impact of the Company’s adoption of Topic 606 on its consolidated financial statements for the three and six months ended June 30, 2018. Consolidated Balance Sheet As of June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 333,903 $ 333,903 Accounts receivable, net 691,347 691,347 Prepaid expenses and other current assets (a, c) 207,334 79,777 287,111 Total current assets $ 1,232,584 79,777 $ 1,312,361 Property, plant and equipment, net 202,669 202,669 Deferred tax assets (b) 88,278 5,635 93,913 Investment in equity affiliates 834 834 Intangible assets, net 120,624 120,624 Goodwill 1,311,361 1,311,361 Contract cost assets (a, b) 162,178 (162,178 ) — Other assets (a, c) 147,550 81,328 228,878 Total assets $ 3,266,078 4,562 $ 3,270,640 Liabilities and equity Current liabilities Short-term borrowings 215,000 215,000 Current portion of long-term debt 39,249 39,249 Accounts payable 20,942 20,942 Income taxes payable 54,513 54,513 Accrued expenses and other current liabilities (c) 483,241 10,996 494,237 Total current liabilities $ 812,945 10,996 $ 823,941 Long-term debt, less current portion 987,314 987,314 Deferred tax liabilities 7,036 7,036 Other liabilities (c) 162,358 12,739 175,097 Total liabilities $ 1,969,653 23,735 $ 1,993,388 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 189,876,061 issued and outstanding as of December 31, 2017 and June 30, 2018, respectively 1,895 1,895 Additional paid-in capital 1,438,072 1,438,072 Retained earnings (b) 338,120 (19,173 ) 318,947 Accumulated other comprehensive income (loss) (481,662 ) (481,662 ) Total equity $ 1,296,425 (19,173 ) $ 1,277,252 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,266,078 4,562 $ 3,270,640 (a) As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. (b) The cumulative impact of the adoption of ASC 606 resulted in a $162,178 increase in "Contract cost assets," which includes the reclassification of $137,370 (refer to note (a) in the table above) and a closing balance of $24,808 related to sales incentive programs, with a corresponding impact on retained earnings of $19,173 and on deferred tax liabilities of $5,635 which has been offset against deferred tax assets. (c) As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. Consolidated Statement of Income Three months ended June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 728,561 $ 728,561 Cost of revenue 462,898 462,898 Gross profit $ 265,663 — $ 265,663 Operating expenses: — Selling, general and administrative expenses (d) 176,166 1,537 177,703 Amortization of acquired intangible assets 9,826 9,826 Other operating (income) expense, net 149 149 Income from operations $ 79,522 (1,537 ) $ 77,985 Foreign exchange gains (losses), net 2,805 2,805 Interest income (expense), net (10,407 ) (10,407 ) Other income (expense), net 9,748 9,748 Income before equity-method investment activity, net and income tax expense $ 81,668 (1,537 ) $ 80,131 Equity-method investment activity, net (15 ) — (15 ) Income before income tax expense $ 81,653 (1,537 ) $ 80,116 Income tax expense 17,079 (332 ) 16,747 Net income $ 64,574 (1,205 ) $ 63,369 Net loss (income) attributable to non-controlling interest — — — Net income attributable to Genpact Limited shareholders $ 64,574 (1,205 ) $ 63,369 (d) During the three months ended June 30, 2018, the Company amortized $3,604 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $5,141, resulting in a net adjustment of $1,537 with a corresponding impact on income tax expense of $332. Consolidated Statement of Income Six months ended June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 1,417,473 $ 1,417,473 Cost of revenue 907,222 907,222 Gross profit $ 510,251 — $ 510,251 Operating expenses: Selling, general and administrative expenses (e) 347,275 1,581 348,856 Amortization of acquired intangible assets 19,762 19,762 Other operating (income) expense, net (69 ) (69 ) Income from operations $ 143,283 (1,581 ) $ 141,702 Foreign exchange gains (losses), net 7,603 7,603 Interest income (expense), net (18,507 ) (18,507 ) Other income (expense), net 25,298 25,298 Income before equity-method investment activity, net and income tax expense $ 157,677 (1,581 ) $ 156,096 Equity-method investment activity, net (15 ) — (15 ) Income before income tax expense $ 157,662 (1,581 ) $ 156,081 Income tax expense 29,154 (332 ) 28,822 Net income $ 128,508 (1,249 ) $ 127,259 Net loss (income) attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ 129,269 (1,249 ) $ 128,020 (e) During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 with a corresponding impact on income tax expense of $332. Consolidated Statement of Cash flow Six months ended June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (f) $ 129,269 (1,249 ) $ 128,020 Net loss attributable to redeemable non-controlling interest (761 ) (761 ) Net income (f) $ 128,508 (1,249 ) $ 127,259 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 31,613 31,613 Amortization of debt issuance costs 979 979 Amortization of acquired intangible assets 19,762 19,762 Write-down of intangible assets and property, plant and equipment 850 850 Reserve for doubtful receivables 1,347 1,347 Unrealized loss (gain) on revaluation of foreign currency asset/liability (7,350 ) (7,350 ) Equity-method investment activity, net 15 15 Stock-based compensation expense 18,724 18,724 Deferred income taxes (f) (4,194 ) (332 ) (4,526 ) Others, net 294 294 Change in operating assets and liabilities: Increase in accounts receivable (4,548 ) (4,548 ) Increase in prepaid expenses, other current assets, contract cost assets and other assets (f, g) (71,559 ) (805 ) (72,364 ) Increase in accounts payable 6,289 6,289 Decrease in accrued expenses, other current liabilities and other liabilities (g) (96,965 ) 2,386 (94,579 ) Increase in income taxes payable 25,719 25,719 Net cash provided by operating activities $ 49,484 — $ 49,484 Investing activities Purchase of property, plant and equipment (37,703 ) (37,703 ) Payment for internally generated intangible assets (including intangibles under development) (11,544 ) (11,544 ) Proceeds from sale of property, plant and equipment 309 309 Payment for business acquisitions, net of cash acquired (728 ) (728 ) Payment for redeemable non-controlling interest (4,730 ) (4,730 ) Net cash used for investing activities $ (54,396 ) — $ (54,396 ) Financing activities Repayment of capital lease obligations (1,108 ) (1,108 ) Repayment of long-term debt (20,000 ) (20,000 ) Proceeds from short-term borrowings 105,000 105,000 Repayment of short-term borrowings (60,000 ) (60,000 ) Proceeds from issuance of common shares under stock-based compensation plans 9,388 9,388 Payment for net settlement of stock-based awards (14,229 ) (14,229 ) Payment of earn-out/deferred consideration (1,476 ) (1,476 ) Dividend paid (28,648 ) (28,648 ) Payment for stock repurchased and retired (130,103 ) (130,103 ) Payment for expenses related to stock repurchase (82 ) (82 ) Net cash used for financing activities $ (141,258 ) — $ (141,258 ) Effect of exchange rate changes (24,395 ) (24,395 ) Net increase (decrease) in cash and cash equivalents (146,170 ) (146,170 ) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ 333,903 — $ 333,903 (f) During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 and a tax impact of $332 which is further adjusted by note (g) below. (g) Following the adoption of ASC 606, the Company offset certain contract assets against contract liabilities related to the same customer contract in an amount of $2,386. |
Recently issued accounting pronouncements | (g) Recently issued accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for their 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 will use a modified retrospective adoption approach. The Company expects to complete its assessment of adopting ASU No. 2016-02 in the third quarter of 2018. The Company’s implementation efforts include reviewing existing leases and service contracts, which may include embedded leases. The Company expects a gross-up on its consolidated statements of financial position upon recognition of the right-of-use assets and lease liabilities. The Company continues to evaluate the impact of its pending adoption of ASU 2016-02, which may identify additional impacts this guidance will have on its In June 2016, the FASB issued ASU No. 2016-13, “Measurement of credit losses on financial instruments.” The ASU requires measurement and recognition of expected credit losses for financial assets held by the Company. The ASU is effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020. 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. 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 accoun38
Summary of significant accounting policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Estimated Useful Lives of Intangible Assets Acquired | Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years Technology-related intangible assets 2-8 years Other intangible assets 3-5 years |
Topic 606 | |
Summary of Impact of Adoption of Topic 606 on Consolidated Financial Statements | Impact on consolidated financial statements The following tables summarize the impact of the Company’s adoption of Topic 606 on its consolidated financial statements for the three and six months ended June 30, 2018. Consolidated Balance Sheet As of June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 333,903 $ 333,903 Accounts receivable, net 691,347 691,347 Prepaid expenses and other current assets (a, c) 207,334 79,777 287,111 Total current assets $ 1,232,584 79,777 $ 1,312,361 Property, plant and equipment, net 202,669 202,669 Deferred tax assets (b) 88,278 5,635 93,913 Investment in equity affiliates 834 834 Intangible assets, net 120,624 120,624 Goodwill 1,311,361 1,311,361 Contract cost assets (a, b) 162,178 (162,178 ) — Other assets (a, c) 147,550 81,328 228,878 Total assets $ 3,266,078 4,562 $ 3,270,640 Liabilities and equity Current liabilities Short-term borrowings 215,000 215,000 Current portion of long-term debt 39,249 39,249 Accounts payable 20,942 20,942 Income taxes payable 54,513 54,513 Accrued expenses and other current liabilities (c) 483,241 10,996 494,237 Total current liabilities $ 812,945 10,996 $ 823,941 Long-term debt, less current portion 987,314 987,314 Deferred tax liabilities 7,036 7,036 Other liabilities (c) 162,358 12,739 175,097 Total liabilities $ 1,969,653 23,735 $ 1,993,388 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 189,876,061 issued and outstanding as of December 31, 2017 and June 30, 2018, respectively 1,895 1,895 Additional paid-in capital 1,438,072 1,438,072 Retained earnings (b) 338,120 (19,173 ) 318,947 Accumulated other comprehensive income (loss) (481,662 ) (481,662 ) Total equity $ 1,296,425 (19,173 ) $ 1,277,252 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,266,078 4,562 $ 3,270,640 (a) As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. (b) The cumulative impact of the adoption of ASC 606 resulted in a $162,178 increase in "Contract cost assets," which includes the reclassification of $137,370 (refer to note (a) in the table above) and a closing balance of $24,808 related to sales incentive programs, with a corresponding impact on retained earnings of $19,173 and on deferred tax liabilities of $5,635 which has been offset against deferred tax assets. (c) As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. Consolidated Statement of Income Three months ended June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 728,561 $ 728,561 Cost of revenue 462,898 462,898 Gross profit $ 265,663 — $ 265,663 Operating expenses: — Selling, general and administrative expenses (d) 176,166 1,537 177,703 Amortization of acquired intangible assets 9,826 9,826 Other operating (income) expense, net 149 149 Income from operations $ 79,522 (1,537 ) $ 77,985 Foreign exchange gains (losses), net 2,805 2,805 Interest income (expense), net (10,407 ) (10,407 ) Other income (expense), net 9,748 9,748 Income before equity-method investment activity, net and income tax expense $ 81,668 (1,537 ) $ 80,131 Equity-method investment activity, net (15 ) — (15 ) Income before income tax expense $ 81,653 (1,537 ) $ 80,116 Income tax expense 17,079 (332 ) 16,747 Net income $ 64,574 (1,205 ) $ 63,369 Net loss (income) attributable to non-controlling interest — — — Net income attributable to Genpact Limited shareholders $ 64,574 (1,205 ) $ 63,369 (d) During the three months ended June 30, 2018, the Company amortized $3,604 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $5,141, resulting in a net adjustment of $1,537 with a corresponding impact on income tax expense of $332. Consolidated Statement of Income Six months ended June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 1,417,473 $ 1,417,473 Cost of revenue 907,222 907,222 Gross profit $ 510,251 — $ 510,251 Operating expenses: Selling, general and administrative expenses (e) 347,275 1,581 348,856 Amortization of acquired intangible assets 19,762 19,762 Other operating (income) expense, net (69 ) (69 ) Income from operations $ 143,283 (1,581 ) $ 141,702 Foreign exchange gains (losses), net 7,603 7,603 Interest income (expense), net (18,507 ) (18,507 ) Other income (expense), net 25,298 25,298 Income before equity-method investment activity, net and income tax expense $ 157,677 (1,581 ) $ 156,096 Equity-method investment activity, net (15 ) — (15 ) Income before income tax expense $ 157,662 (1,581 ) $ 156,081 Income tax expense 29,154 (332 ) 28,822 Net income $ 128,508 (1,249 ) $ 127,259 Net loss (income) attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ 129,269 (1,249 ) $ 128,020 (e) During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 with a corresponding impact on income tax expense of $332. Consolidated Statement of Cash flow Six months ended June 30, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (f) $ 129,269 (1,249 ) $ 128,020 Net loss attributable to redeemable non-controlling interest (761 ) (761 ) Net income (f) $ 128,508 (1,249 ) $ 127,259 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 31,613 31,613 Amortization of debt issuance costs 979 979 Amortization of acquired intangible assets 19,762 19,762 Write-down of intangible assets and property, plant and equipment 850 850 Reserve for doubtful receivables 1,347 1,347 Unrealized loss (gain) on revaluation of foreign currency asset/liability (7,350 ) (7,350 ) Equity-method investment activity, net 15 15 Stock-based compensation expense 18,724 18,724 Deferred income taxes (f) (4,194 ) (332 ) (4,526 ) Others, net 294 294 Change in operating assets and liabilities: Increase in accounts receivable (4,548 ) (4,548 ) Increase in prepaid expenses, other current assets, contract cost assets and other assets (f, g) (71,559 ) (805 ) (72,364 ) Increase in accounts payable 6,289 6,289 Decrease in accrued expenses, other current liabilities and other liabilities (g) (96,965 ) 2,386 (94,579 ) Increase in income taxes payable 25,719 25,719 Net cash provided by operating activities $ 49,484 — $ 49,484 Investing activities Purchase of property, plant and equipment (37,703 ) (37,703 ) Payment for internally generated intangible assets (including intangibles under development) (11,544 ) (11,544 ) Proceeds from sale of property, plant and equipment 309 309 Payment for business acquisitions, net of cash acquired (728 ) (728 ) Payment for redeemable non-controlling interest (4,730 ) (4,730 ) Net cash used for investing activities $ (54,396 ) — $ (54,396 ) Financing activities Repayment of capital lease obligations (1,108 ) (1,108 ) Repayment of long-term debt (20,000 ) (20,000 ) Proceeds from short-term borrowings 105,000 105,000 Repayment of short-term borrowings (60,000 ) (60,000 ) Proceeds from issuance of common shares under stock-based compensation plans 9,388 9,388 Payment for net settlement of stock-based awards (14,229 ) (14,229 ) Payment of earn-out/deferred consideration (1,476 ) (1,476 ) Dividend paid (28,648 ) (28,648 ) Payment for stock repurchased and retired (130,103 ) (130,103 ) Payment for expenses related to stock repurchase (82 ) (82 ) Net cash used for financing activities $ (141,258 ) — $ (141,258 ) Effect of exchange rate changes (24,395 ) (24,395 ) Net increase (decrease) in cash and cash equivalents (146,170 ) (146,170 ) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ 333,903 — $ 333,903 (f) During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 and a tax impact of $332 which is further adjusted by note (g) below. (g) Following the adoption of ASC 606, the Company offset certain contract assets against contract liabilities related to the same customer contract in an amount of $2,386. |
Business acquisitions (Tables)
Business acquisitions (Tables) | 6 Months Ended |
Jun. 30, 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 | 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) | 6 Months Ended |
Jun. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash And Cash Equivalents | Cash and cash equivalents as of December 31, 2017 and June 30, 2018 are set out in the table below: As of December 31, As of June 30, 2017 2018 Cash and other bank balances 504,468 333,903 Total $ 504,468 $ 333,903 |
Accounts receivable, net of r41
Accounts receivable, net of reserve for doubtful receivables (Tables) | 6 Months Ended |
Jun. 30, 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 Six months ended June 30, 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 1,347 Deductions/effect of exchange rate fluctuations (1,913 ) (617 ) Closing balance $ 23,660 $ 24,390 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 Earn-out 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 June 30, 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) $ 32,095 $ — $ 32,095 $ — Total $ 32,095 $ — $ 32,095 $ — Liabilities Earn-out consideration (Note b, d) $ 23,609 $ — $ — $ 23,609 Derivative instruments (Note b, c) $ 49,378 $ — $ 49,378 $ — Total $ 72,987 $ — $ 49,378 $ 23,609 (a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets. (b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. (e) The Company’s estimate of the fair value of redeemable non-controlling interest is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation 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 and six months ended June 30, 2017 and 2018: Three months ended Six months ended June 30, June 30, 2017 2018 2017 2018 Opening balance $ 21,262 $ 23,900 $ 22,435 $ 24,732 Earn-out consideration payable in connection with acquisitions — — 2,320 — Payments made on earn-out consideration (275 ) — (1,482 ) (1,476 ) Change in fair value of earn-out consideration (Note a) 1,713 (650 ) (1,425 ) (633 ) Others (Note b) 574 359 1,426 986 Ending balance $ 23,274 $ 23,609 $ 23,274 $ 23,609 (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) Others is comprised of interest expense included in “interest income (expense), net” and the impact of changes in foreign exchange reported in “foreign exchange gains (losses), net” in the consolidated statements of income. This change also includes a cumulative translation adjustment reported as a component of other comprehensive income (loss). |
Derivative financial instrume43
Derivative financial instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2018 As of December 31, 2017 As of June 30, 2018 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,289,400 $ 1,255,200 $ 54,398 $ (28,423 ) United States Dollars (sell) Mexican Peso (buy) 9,000 6,000 (441 ) (72 ) United States Dollars (sell) Philippines Peso (buy) 76,650 58,250 69 (3,309 ) Euro (sell) United States Dollars (buy) 170,542 134,950 (2,069 ) 3,715 Pound Sterling (buy) United States Dollars (sell) 24,041 27,675 253 (1,333 ) Euro (sell) Romanian Leu (buy) 35,826 20,929 (892 ) (267 ) Japanese Yen (sell) Chinese Renminbi (buy) 60,768 47,243 1,918 (418 ) Pound Sterling (sell) United States Dollars (buy) 80,871 54,194 (2,478 ) (460 ) Australian Dollars (sell) United States Dollars (buy) 136,092 102,782 (5,180 ) 1,435 Interest rate swaps (floating to fixed) 432,117 419,771 9,332 11,849 54,910 (17,283 ) (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 June 30, 2018 As of December 31, 2017 As of June 30, 2018 Assets Prepaid expenses and other current assets $ 43,557 $ 18,782 $ 4,635 $ 1,655 Other assets $ 24,906 $ 11,658 $ — $ — Liabilities Accrued expenses and other current liabilities $ 10,092 $ 16,099 $ 254 $ 8,661 Other liabilities $ 7,842 $ 24,618 $ — $ — |
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 June 30, Six months ended June 30, 2017 2018 2017 2018 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ 67,674 $ (25,334 ) $ 42,340 $ 26,357 $ (6,931 ) $ 19,426 $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 Adoption of ASU 2018-02 (refer to note 24) — — — — — — — — — — 2,265 2,265 Net gains (losses) reclassified into statement of income on completion of hedged transactions 15,505 (5,667 ) 9,838 4,282 (760 ) 3,522 24,800 (9,099 ) 15,701 12,561 (2,376 ) 10,185 Changes in fair value of effective portion of outstanding derivatives, net (2 ) 229 227 (32,352 ) 7,995 (24,357 ) 39,506 (14,558 ) 24,948 (48,245 ) 11,619 (36,626 ) Gain (loss) on cash flow hedging derivatives, net (15,507 ) 5,896 (9,611 ) (36,634 ) 8,755 (27,879 ) 14,706 (5,459 ) 9,247 (60,806 ) 13,995 (46,811 ) Closing balance $ 52,167 $ (19,438 ) $ 32,729 $ (10,277 ) $ 1,824 $ (8,453 ) $ 52,167 $ (19,438 ) $ 32,729 $ (10,277 ) $ 1,824 $ (8,453 ) |
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | 7. Derivative financial instruments (Continued) The Company’s 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 recognized in OCI on Location of Gain (Loss) from OCI into Statement of Income Derivatives in Derivatives (Effective Portion) reclassified (Effective Portion) Cash Flow Three months ended Six months ended from OCI into Three months ended Six months ended Hedging June 30, June 30, Statement of Income June 30, June 30, Relationships 2017 2018 2017 2018 (Effective Portion) 2017 2018 2017 2018 Forward foreign exchange contracts $ 1,615 $ (33,541 ) $ 40,911 $ (52,220 ) Revenue $ 2,266 $ (1,295 ) $ 6,026 $ (2,769 ) Interest rate swaps (1,617 ) 1,189 (1,405 ) 3,975 Cost of revenue 10,419 3,678 14,989 10,948 Selling, general and administrative expenses 2,907 $ 991 4,155 2,925 Interest expense (87 ) 908 (370 ) 1,457 $ (2 ) $ (32,352 ) $ 39,506 $ (48,245 ) $ 15,505 $ 4,282 $ 24,800 $ 12,561 There are no gains (losses) recognized in income on the ineffective portion of derivatives and excluded from effectiveness testing Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended June 30, Six months ended June 30, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2017 2018 2017 2018 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 1,203 $ (12,541 ) $ 10,113 $ (16,829 ) $ 1,203 $ (12,541 ) $ 10,113 $ (16,829 ) (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 cu44
Prepaid expenses and other current assets (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 2018 Advance income and non-income taxes $ 51,832 $ 76,368 Deferred transition costs 62,029 — Contract asset (Note 19) — 14,454 Customer acquisition cost 19,327 — Prepaid expenses 16,944 28,793 Derivative instruments 48,192 20,437 Employee advances 5,014 3,425 Deposits 4,719 7,783 Advances to suppliers 2,705 5,668 Others 25,580 50,406 $ 236,342 $ 207,334 |
Property, plant and equipment45
Property, plant and equipment, net (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 2018 Property, plant and equipment, gross $ 666,031 $ 656,348 Less: Accumulated depreciation and amortization (459,001 ) (453,679 ) Property, plant and equipment, net $ 207,030 $ 202,669 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2018: As of December 31, As of June 30, 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 ) 254 Effect of exchange rate fluctuations 38,075 (26,015 ) Closing balance $ 1,337,122 $ 1,311,361 |
Summary of Intangible Assets | The Company’s intangible assets are as follows: As of December 31, 2017 As of June 30, 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 $ 358,968 $ 296,603 $ 62,365 Marketing-related intangible assets 52,443 39,212 13,231 51,699 41,063 10,636 Technology-related intangible assets 54,189 28,278 25,911 55,826 33,628 22,198 Other intangible assets 3,081 2,314 767 2,315 1,917 398 Intangible assets under development 15,537 - 15,537 25,027 - 25,027 494,423 362,833 $ 131,590 $ 493,835 $ 373,211 $ 120,624 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2018, net of debt amortization expense, is as follows: Year ended Amount 2018 19,616 2019 39,272 2020 619,653 Total $ 678,541 |
Accrued expenses and other cu48
Accrued expenses and other current liabilities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 2018 Accrued expenses $ 204,997 $ 169,986 Accrued employee cost 204,506 131,085 Earn-out consideration 14,928 17,938 Statutory liabilities 36,283 30,556 Retirement benefits 21,074 21,272 Derivative instruments 10,346 24,760 Advance from customers 25,476 — Contract liabilities (Note 19) — 74,682 Deferred transition revenue 52,233 — Other liabilities 13,093 11,529 Capital lease obligations 1,546 1,433 $ 584,482 $ 483,241 |
Other liabilities (Tables)
Other liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other liabilities consist of the following: As of December 31, As of June 30, 2017 2018 Accrued employee cost $ 14,020 $ 10,133 Earn-out consideration 9,804 5,671 Retirement benefits 40,520 43,726 Derivative instruments 7,842 24,618 Advance from customers 790 — Contract liabilities (Note 19) — 54,621 Deferred transition revenue 70,900 — Others 22,069 21,494 Capital lease obligations 2,664 2,095 $ 168,609 $ 162,358 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the three and six months ended June 30, 2017 and 2018 include the following components: Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Service costs $ 1,857 $ 2,058 $ 3,577 $ 4,053 Interest costs 793 939 1,527 1,934 Amortization of actuarial loss 227 235 432 555 Expected return on plan assets (539 ) (744 ) (1,031 ) (1,480 ) Net defined benefit plan costs $ 2,338 $ 2,488 $ 4,505 $ 5,062 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the three and six months ended June 30, 2017 and 2018, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 India $ 5,566 $ 6,061 $ 10,783 $ 12,005 U.S. 2,640 2,359 6,920 6,958 U.K. 2,354 3,187 4,074 5,324 China 3,740 4,408 7,568 8,802 Other regions 948 1,172 2,077 2,332 Total $ 15,248 $ 17,187 $ 31,422 $ 35,421 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Significant Assumptions used in Determination of Fair Value of Options Granted | The following table shows the significant assumptions used in determining the fair value of options granted in the six months ended June 30, 2017 and June 30, 2018. Six months ended June 30, 2017 Six months ended June 30, 2018 Dividend yield 0.97% 0.95% - 0.99% Expected life (in months) 84 84 Risk-free rate of interest 2.25% 2.67%-2.93% Volatility 24.28% 22.67%-22.73% |
Summary of Stock Option Activity | A summary of stock option activity during the six months ended June 30, 2018 is set out below: Six months ended June 30, 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 2,568,106 30.49 — — Forfeited (70,000) 27.65 — — Expired — — — — Exercised (366,382 ) 16.95 — 4,389 Outstanding as of June 30, 2018 7,266,369 $ 23.45 6.8 $ 43,836 Vested as of June 30, 2018 and expected to vest thereafter (Note a) 7,082,892 $ 23.34 6.8 $ 43,429 Vested and exercisable as of June 30, 2018 3,388,264 $ 17.61 4.2 $ 38,347 Weighted average grant date fair value of grants during the period $ 8.33 (a) Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Units Activity | A summary of RSU activity during the six months ended June 30, 2018 is set out below: Six months ended June 30, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted 79,562 29.51 Vested (Note a) (202,251 ) 25.12 Forfeited (116,004) 26.18 Outstanding as of June 30, 2018 1,366,558 $ 26.52 Expected to vest (Note b) 1,203,082 (a) 149,376 RSUs that vested during the period were net settled upon vesting by issuing 104,365 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 six months ended June 30, 2018 is set out below: Six months ended June 30, 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 1,642,740 30.64 3,285,480 Vested (Note a) (1,087,751) 22.73 (1,087,751) Forfeited (186,279 ) 25.24 (186,279 ) Adjustment upon final determination of level of performance goal achievement (Note b) (4,780 ) 25.22 Adjustment upon final determination of level of performance goal achievement (Note b) (4,780 ) Outstanding as of June 30, 2018 3,264,870 $ 28.05 4,907,610 Expected to vest (Note c) 2,681,322 (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) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per share | Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Net income available to Genpact Limited common shareholders $ 68,946 $ 64,574 $ 122,284 $ 129,269 Weighted average number of common shares used in computing basic earnings per common share 191,469,593 190,132,664 195,269,561 191,474,645 Dilutive effect of stock-based awards 2,262,813 3,233,310 2,924,611 3,352,627 Weighted average number of common shares used in computing dilutive earnings per common share 193,732,406 193,365,974 198,194,172 194,827,272 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.36 $ 0.34 $ 0.63 $ 0.68 Diluted $ 0.36 $ 0.33 $ 0.62 $ 0.66 |
Net revenues (Tables)
Net revenues (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenues [Abstract] | |
Net Revenues Disaggregated by Customer | In the following tables, the Company’s revenue is disaggregated by customer classification, service type, major industrial vertical and location of service delivery center. Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 GE $ 63,192 $ 65,444 $ 132,446 $ 123,493 Global Clients 607,505 663,117 1,161,246 1,293,980 Total net revenues $ 670,697 $ 728,561 $ 1,293,692 $ 1,417,473 |
Net Revenues for Service Type | Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Business process outsourcing $ 556,227 $ 605,911 $ 1,067,510 $ 1,179,972 Information technology services 114,470 122,650 226,182 237,501 Total net revenues $ 670,697 $ 728,561 $ 1,293,692 $ 1,417,473 |
Revenues from Clients Based on Industrial Verticals | Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Banking, financial services and insurance $ 269,295 $ 280,290 $ 507,583 $ 554,413 Consumer goods, retail, life sciences and healthcare 205,814 208,546 401,537 408,174 High tech, manufacturing and services 195,588 239,725 384,572 454,886 Total net revenues $ 670,697 $ 728,561 $ 1,293,692 $ 1,417,473 |
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers | Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 India $ 412,323 $ 464,922 $ 823,378 $ 854,056 Asia, other than India 70,747 78,230 137,409 157,691 North and Latin America 109,016 151,840 194,058 304,120 Europe 78,611 33,569 138,847 101,606 Total net revenues $ 670,697 $ 728,561 $ 1,293,692 $ 1,417,473 |
Details of Company’s Contract Liabilities | The following table provides details of the Company’s contract liabilities: Three months ended June 30, 2018 Six months ended June 30, 2018 Particulars Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Opening balance $ 34,570 $ 102,428 $ 26,266 $ 101,785 Impact of opening balance offset — $ 24,427 — $ 21,348 Gross opening balance $ 34,570 $ 126,855 $ 26,266 $ 123,133 Additions 5,488 18,375 16,736 32,711 Revenue recognized (8,959 ) (21,752 ) (11,903 ) (32,356 ) Currency translation adjustments (758 ) (781 ) (758 ) (791 ) Gross closing balance $ 30,341 $ 122,697 $ 30,341 $ 122,697 Impact of offset with contract asset — (23,735 ) — (23,735 ) Closing balance (Note a) $ 30,341 $ 98,962 $ 30,341 $ 98,962 (a) Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet. |
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 June 30, 2018: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 99,666 44,970 45,059 9,220 417 |
Details of Company's Contract Assets | 19. The following table provides details of the Company’s contract assets: Particulars Three months ended June 30, 2018 Six months ended June 30, 2018 Opening balance $ 48,303 $ 43,366 Impact of opening balance offset 24,427 21,348 Gross opening balance $ 72,730 $ 64,714 Additions 5,428 19,518 Reduction in revenue recognized (12,752 ) (18,826 ) Gross closing balance $ 65,406 $ 65,406 Impact of offset with contract liability (23,735 ) (23,735 ) Closing balance (Note b) $ 41,671 $ 41,671 (b) Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. |
Details of Company's Contract Cost Assets | The following table provides details of the Company’s contract cost assets: Three months ended June 30, 2018 Six months ended June 30, 2018 Particulars Sales incentive programs Transition activities Sales incentive programs Transition activities Opening balance $ 23,271 $ 139,164 $ 23,227 $ 139,284 Closing balance 24,808 137,370 24,808 137,370 Amortization 3,604 23,321 6,843 34,900 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | Cost of revenue consists of the following: Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Personnel expenses $ 284,557 $ 322,799 $ 553,746 $ 632,931 Operational expenses 119,589 127,109 222,305 248,466 Depreciation and amortization 10,362 12,990 21,794 25,825 $ 414,508 $ 462,898 $ 797,845 $ 907,222 |
Selling, general and administ55
Selling, general and administrative expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Selling General And Administrative Expenses [Abstract] | |
Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Personnel expenses $ 122,543 $ 126,626 $ 245,112 $ 254,694 Operational expenses 42,867 46,920 78,680 87,309 Depreciation and amortization 2,348 2,620 4,824 5,272 $ 167,758 $ 176,166 $ 328,616 $ 347,275 |
Other operating (income) expe56
Other operating (income) expense, net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Other operating (income) expense $ (2,628 ) $ (51 ) $ (7,028 ) $ (286 ) Provision for impairment of intangible assets and property, plant and equipment - 850 - 850 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) 1,713 (650 ) $ (1,425 ) $ (633 ) Other operating (income) expense, net $ (915 ) $ 149 $ (8,453 ) $ (69 ) |
Interest income (expense), net
Interest income (expense), net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking And Thrift Interest [Abstract] | |
Interest Income (expense), net | Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Interest income $ 863 $ 1,774 $ 1,994 $ 5,144 Interest expense (10,713 ) (12,181 ) (17,337 ) (23,651 ) Interest income (expense), net $ (9,850 ) $ (10,407 ) $ (15,343 ) $ (18,507 ) |
Income taxes (Tables)
Income taxes (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2018: 2018 Opening balance at January 1 $ 26,060 Increase related to prior year tax positions, including recorded in acquisition accounting 231 Decrease related to prior year tax positions (234 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (479 ) Effect of exchange rate changes (1,142 ) Closing balance at June 30 $ 24,436 |
Other Income (expense), net (Ta
Other Income (expense), net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | Three months ended June 30, Six months ended June 30, 2017 2018 2017 2018 Government incentives $ 11,882 $ 10,196 $ 11,882 $ 25,696 Other income/(expense) (322 ) (448 ) 231 (398 ) Other Income (expense), net $ 11,560 $ 9,748 $ 12,113 $ 25,298 |
Guarantor financial informati60
Guarantor financial information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Guarantor Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 4,326 $ 576 $ 329,001 $ — $ 333,903 Accounts receivable intercompany, net 88,551 — — (88,551 ) — Accounts receivable, net — — 691,347 — 691,347 Intercompany loans 323,168 1,000 1,714,063 (2,038,231 ) — Intercompany other receivable 10,106 86,960 106,318 (203,384 ) — Prepaid expenses and other current assets - 2,003 205,331 — 207,334 Total current assets $ 426,151 $ 90,539 $ 3,046,060 $ (2,330,166 ) $ 1,232,584 Property, plant and equipment, Net 313 — 202,356 — 202,669 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 88,278 — 88,278 Investment in subsidiaries 402,500 2,900,132 507,630 (3,810,262 ) — Investment in equity affiliates — — 834 — 834 Investment in debentures, intercompany 582,845 — — (582,845 ) — Intercompany other receivable — 60,391 — (60,391 ) — Intangible assets, net — — 120,624 — 120,624 Goodwill — — 1,311,361 — 1,311,361 Contract cost assets — — 162,178 — 162,178 Other assets — — 147,550 — 147,550 Total assets $ 1,411,809 $ 3,051,062 $ 6,086,871 $ (7,283,664 ) $ 3,266,078 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 215,000 $ — $ 215,000 Intercompany loans 16,026 1,758,537 263,668 (2,038,231 ) — Current portion of long-term debt — — 39,249 — 39,249 Accounts payable 81 11 20,850 — 20,942 Intercompany accounts payable — — 88,551 (88,551 ) — Income taxes payable 692 (377 ) 54,198 — 54,513 Intercompany other payable 31,257 75,209 96,918 (203,384 ) — Accrued expenses and other current liabilities 7,765 4,353 471,123 — 483,241 Total current liabilities $ 55,821 $ 1,837,733 $ 1,249,557 $ (2,330,166 ) $ 812,945 Long-term debt, less current portion 348,022 — 639,292 — 987,314 Deferred tax liabilities — — 7,036 — 7,036 Intercompany other payable — — 60,391 (60,391 ) — Non-current intercompany loans payable 500,000 — 582,848 (1,082,848 ) — Other liabilities 336 151 161,871 — 162,358 Total liabilities $ 904,179 $ 1,837,884 $ 2,700,995 $ (3,473,405 ) $ 1,969,653 Redeemable non-controlling interest — — — — — Shareholders' equity Common stock 28 1,894 190,000 (190,027 ) 1,895 Additional paid-in capital 574,698 1,438,071 1,110,610 (1,685,307 ) 1,438,072 Retained earnings 65,278 254,875 2,509,035 (2,491,068 ) 338,120 Accumulated other comprehensive income (loss) (132,374 ) (481,662 ) (423,769 ) 556,143 (481,662 ) Total equity 507,630 1,213,178 3,385,876 (3,810,259 ) 1,296,425 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 1,411,809 $ 3,051,062 $ 6,086,871 $ (7,283,664 ) $ 3,266,078 29. Guarantor financial information (continued) Condensed Consolidating Balance Sheet As of December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 4,507 $ 2,136 $ 497,825 $ — $ 504,468 Accounts receivable intercompany, net 82,935 — — (82,935 ) — Accounts receivable, net — — 693,085 — 693,085 Intercompany loans 194,854 — 1,620,537 (1,815,391 ) — Intercompany other receivable 25,343 82,631 89,189 (197,163 ) — Prepaid expenses and other current assets 311 1,276 234,755 — 236,342 Total current assets $ 307,950 $ 86,043 $ 3,135,391 $ (2,095,489 ) $ 1,433,895 Property, plant and equipment, net 391 — 206,639 — 207,030 Intercompany loans — — 500,000 (500,000 ) — Deferred tax assets — — 76,929 — 76,929 Investment in subsidiaries 426,410 2,864,386 529,179 (3,819,975 ) — Investment in equity affiliates — — 886 — 886 Investment in debentures, intercompany 717,909 — — (717,909 ) — Intercompany other receivable — 49,761 — (49,761 ) — Intangible assets, net — — 131,590 — 131,590 Goodwill — — 1,337,122 — 1,337,122 Other assets — — 262,169 — 262,169 Total assets $ 1,452,660 $ 3,000,190 $ 6,179,905 $ (7,183,134 ) $ 3,449,621 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 170,000 $ — $ 170,000 Intercompany loans 38,000 1,597,537 179,854 (1,815,391 ) — Current portion of long-term debt — — 39,226 — 39,226 Accounts payable 103 58 14,889 — 15,050 Intercompany accounts payable — — 82,935 (82,935 ) — Income taxes payable 885 — 29,141 — 30,026 Intercompany other payable 29,526 59,266 108,371 (197,163 ) — Accrued expenses and other current liabilities 5,995 2,390 576,097 — 584,482 Total current liabilities $ 74,509 $ 1,659,251 $ 1,200,513 $ (2,095,489 ) $ 838,784 Long-term debt, less current portion 347,761 — 658,926 — 1,006,687 Deferred tax liabilities — — 6,747 — 6,747 Intercompany other payable — — 49,761 (49,761 ) — Non-current intercompany loans payable 500,000 — 717,909 (1,217,909 ) — Other liabilities 1,211 153 167,245 — 168,609 Total liabilities $ 923,481 $ 1,659,404 $ 2,801,101 $ (3,363,159 ) $ 2,020,827 Redeemable non-controlling interest — — 4750 — 4750 Shareholders' equity Common stock — 1,924 189,649 (189,649 ) 1,924 Additional paid-in capital 575,890 1,421,354 1,107,383 (1,683,259 ) 1,421,368 Retained earnings (12,277 ) 272,738 2,504,580 (2,409,059 ) 355,982 Accumulated other comprehensive income (loss) (34,434 ) (355,230 ) (427,558 ) 461,992 (355,230 ) Total equity 529,179 1,340,786 3,374,054 (3,819,975 ) 1,424,044 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 1,452,660 $ 3,000,190 $ 6,179,905 $ (7,183,134 ) $ 3,449,621 |
Condensed Consolidating Statement of Income (Loss) | Condensed Consolidating Statement of Income (Loss) Three months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 12,119 $ — $ 731,024 $ (14,582 ) $ 728,561 Cost of revenue — — 462,898 — 462,898 Gross profit $ 12,119 $ — $ 268,126 $ (14,582 ) $ 265,663 Operating expenses: Selling, general and administrative expenses 2,378 10,270 178,100 (14,582 ) 176,166 Amortization of acquired intangible assets 48 — 9,778 — 9,826 Other operating (income) expense, net — — 149 — 149 Income (loss) from operations $ 9,693 $ (10,270 ) $ 80,099 $ - $ 79,522 Foreign exchange gains (losses), net 208 281 2,316 — 2,805 Interest income (expense), net (3,489 ) — (6,918 ) — (10,407 ) Intercompany interest income (expense), net 19,583 (4,068 ) (15,515 ) — — Other income (expense), net — — 9,748 — 9,748 Income (loss) before equity-method investment activity, net and income tax expense $ 25,995 $ (14,057 ) $ 69,730 $ - $ 81,668 Gain (loss) on equity-method investment activity, net 3,588 78,631 27,987 (110,221 ) (15 ) Income before income tax expense $ 29,583 $ 64,574 $ 97,717 $ (110,221 ) $ 81,653 Income tax expense 1,596 — 15,483 — 17,079 Net income $ 27,987 $ 64,574 $ 82,234 $ (110,221 ) $ 64,574 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 27,987 $ 64,574 $ 82,234 $ (110,221 ) $ 64,574 29. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Six months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 24,058 $ — $ 1,417,473 $ (24,058 ) $ 1,417,473 Cost of revenue — — 907,222 — 907,222 Gross profit $ 24,058 $ — $ 510,251 $ (24,058 ) $ 510,251 Operating expenses: Selling, general and administrative expenses 4,001 11,762 355,636 (24,124 ) 347,275 Amortization of acquired intangible assets 48 — 19,714 — 19,762 Other operating (income) expense, net 17 — (86 ) — (69 ) Income (loss) from operations $ 19,992 $ (11,762 ) $ 134,987 $ 66 $ 143,283 Foreign exchange gains (losses), net 1,161 502 5,940 — 7,603 Interest income (expense), net (6,978 ) — (11,529 ) — (18,507 ) Intercompany interest income (expense), net 40,125 (7,303 ) (32,822 ) — — Other income (expense), net — — 25,298 — 25,298 Income (loss) before equity-method investment activity, net and income tax expense $ 54,300 $ (18,563 ) $ 121,874 $ 66 $ 157,677 Gain (loss) on equity-method investment activity, net 11,030 147,832 62,045 (220,922 ) (15 ) Income before income tax expense $ 65,330 $ 129,269 $ 183,919 $ (220,856 ) $ 157,662 Income tax expense 3,287 — 25,867 — 29,154 Net income $ 62,043 $ 129,269 $ 158,052 $ (220,856 ) $ 128,508 Net loss attributable to redeemable non-controlling interest — — (761 ) — (761 ) Net income attributable to Genpact Limited shareholders $ 62,043 $ 129,269 $ 158,813 $ (220,856 ) $ 129,269 29. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Three months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 15,164 $ — $ 670,697 $ (15,164 ) $ 670,697 Cost of revenue 116 1,476 412,916 — 414,508 Gross profit $ 15,048 $ (1,476 ) $ 257,781 $ (15,164 ) $ 256,189 Operating expenses: Selling, general and administrative expenses 3,009 6,622 173,291 (15,164 ) 167,758 Amortization of acquired intangible assets — — 8,387 — 8,387 Other operating (income) expense, net 1,997 — (2,912 ) — (915 ) Income (loss) from operations $ 10,042 $ (8,098 ) $ 79,015 $ - $ 80,959 Foreign exchange gains (losses), net 1,412 — 501 — 1,913 Interest income (expense), net (3,762 ) — (6,088 ) — (9,850 ) Intercompany interest income (expense), net 24,586 (2,472 ) (22,114 ) — — Other income (expense), net — — 11,560 — 11,560 Income (loss) before equity-method investment activity, net and income tax expense $ 32,278 $ (10,570 ) $ 62,874 $ - $ 84,582 Gain (loss) on equity-method investment activity, net 5,982 79,516 36,418 (121,925 ) (9 ) Income before income tax expense $ 38,260 $ 68,946 $ 99,292 $ (121,925 ) $ 84,573 Income tax expense 1,842 — 13,629 — 15,471 Net income $ 36,418 $ 68,946 $ 85,663 $ (121,925 ) $ 69,102 Net loss attributable to redeemable non-controlling interest — — (156 ) — (156 ) Net income attributable to Genpact Limited shareholders $ 36,418 $ 68,946 $ 85,507 $ (121,925 ) $ 68,946 29. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Six months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 22,726 $ — $ 1,293,692 $ (22,726 ) $ 1,293,692 Cost of revenue 116 1,476 796,253 — 797,845 Gross profit $ 22,610 $ (1,476 ) $ 497,439 $ (22,726 ) $ 495,847 Operating expenses: Selling, general and administrative expenses 4,150 10,411 336,781 (22,726 ) 328,616 Amortization of acquired intangible assets — — 15,629 — 15,629 Other operating (income) expense, net (1,141 ) — (7,312 ) — (8,453 ) Income (loss) from operations $ 19,601 $ (11,887 ) $ 152,341 $ - $ 160,055 Foreign exchange gains (losses), net 3,028 (5 ) (6,023 ) — (3,000 ) Interest income (expense), net 14,175 — (29,518 ) — (15,343 ) Intercompany interest income (expense), net 26,833 (4,769 ) (22,064 ) — — Other income (expense), net — — 12,113 — 12,113 Income (loss) before equity-method investment activity, net and income tax expense $ 63,637 $ (16,661 ) $ 106,849 $ - $ 153,825 Gain (loss) on equity-method investment activity, net 7,961 138,944 68,272 (219,744 ) (4,567 ) Income before income tax expense $ 71,598 $ 122,283 $ 175,121 $ (219,744 ) $ 149,258 Income tax expense 3,325 — 24,391 — 27,716 Net income $ 68,273 $ 122,283 $ 150,730 $ (219,744 ) $ 121,542 Net loss attributable to redeemable non-controlling interest — — 742 — 742 Net income attributable to Genpact Limited shareholders $ 68,273 $ 122,283 $ 151,472 $ (219,744 ) $ 122,284 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income (Loss) Three months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 27,987 $ 64,574 $ 82,234 $ (110,221 ) $ 64,574 $ — Other comprehensive income: Currency translation adjustments (47,357 ) (73,681 ) (73,681 ) 121,038 (73,681 ) — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (26,429 ) (27,879 ) (26,429 ) 52,858 (27,879 ) — Retirement benefits, net of taxes (7 ) 617 (7 ) 14 617 — Other comprehensive income (loss) (73,793 ) (100,943 ) (100,117 ) 173,910 (100,943 ) — Comprehensive income (loss) $ (45,806 ) $ (36,369 ) $ (17,883 ) $ 63,689 $ (36,369 ) $ — Six months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 62,045 $ 129,269 $ 158,812 $ (220,857 ) $ 129,269 $ (761 ) Other comprehensive income: Currency translation adjustments (53,709 ) (83,016 ) (83,016 ) 136,725 (83,016 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (42,110 ) (46,811 ) (45,361 ) 87,471 (46,811 ) — Retirement benefits, net of taxes 73 1,130 506 (579 ) 1,130 — Other comprehensive income (loss) (95,746 ) (128,697 ) (127,871 ) 223,617 (128,697 ) (424 ) Comprehensive income (loss) $ (33,701 ) $ 572 $ 30,941 $ 2,760 $ 572 $ (1,185 ) Three months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 36,418 $ 68,946 $ 85,507 $ (121,925 ) $ 68,946 $ 156 Other comprehensive income: Currency translation adjustments 16,557 20,085 20,085 (36,642 ) 20,085 (66 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (11,033 ) (9,611 ) (9,611 ) 20,644 (9,611 ) — Retirement benefits, net of taxes — 223 223 (223 ) 223 — Other comprehensive income (loss) 5,524 10,697 10,697 (16,221 ) 10,697 (66 ) Comprehensive income (loss) $ 41,942 $ 79,643 $ 96,204 $ (138,146 ) $ 79,643 $ 90 Six months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 68,272 $ 122,284 $ 151,468 $ (219,740 ) $ 122,284 $ (742 ) Other comprehensive income: Currency translation adjustments 60,103 71,712 71,712 (131,815 ) 71,712 (78 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 9,374 9,247 9,247 (18,621 ) 9,247 — Retirement benefits, net of taxes 70 342 342 (412 ) 342 — Other comprehensive income (loss) 69,547 81,301 81,301 (150,848 ) 81,301 (78 ) Comprehensive income (loss) $ 137,819 $ 203,585 $ 232,769 $ (370,588 ) $ 203,585 $ (820 ) |
Condensed Consolidating Statement of Cash Flow | Condensed Consolidating Cash Flow Six months ended June 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (64,501 ) $ 1,114 $ (110,032 ) $ 222,903 $ 49,484 Investing activities Purchase of property, plant and equipment — — (37,703 ) — (37,703 ) Payment for internally generated intangible assets (including intangibles under development) — — (11,544 ) — (11,544 ) Proceeds from sale of property, plant and equipment — — 309 — 309 Investment in equity affiliates — — - — - Investment in subsidiaries (2,000 ) — 2,063 (63 ) - Proceeds from redemption of debentures, intercompany 91,761 — - (91,761 ) - Payment for business acquisitions, net of cash acquired — — (728 ) — (728 ) Payment for purchase of redeemable non-controlling interest — — (4,730 ) — (4,730 ) Net cash (used for) provided by investing activities $ 89,761 $ — (52,333 ) $ (91,824 ) $ (54,396 ) Financing activities Repayment of capital lease obligations — — (1,108 ) — (1,108 ) Payment of debt issuance costs — — — — — Proceeds from long-term debt — — — — — Repayment of long-term debt — — (20,000 ) — (20,000 ) Proceeds from short-term borrowings — — 105,000 — 105,000 Repayment of Short-term borrowings — — (60,000 ) — (60,000 ) Proceeds from intercompany loans 32,000 212,500 170,657 (415,157 ) — Repayment of intercompany loans (53,978 ) (51,500 ) (86,839 ) 192,317 — Proceeds from issuance of common shares under stock-based compensation plans — 9,388 — — 9,388 Payment for net settlement of stock-based awards — (14,229 ) — — (14,229 ) Payment of earn-out/deferred consideration — — (1,476 ) — (1,476 ) Dividend paid — (28,648 ) — — (28,648 ) Payment for stock repurchased and retired — (130,103 ) — — (130,103 ) Payment for expenses related to stock repurchase — (82 ) — — (82 ) Payment for redemption of debentures, intercompany — — (91,761 ) 91,761 — Net cash (used for) provided by financing activities $ (21,978 ) $ (2,674 ) $ 14,473 $ (131,079 ) $ (141,258 ) Effect of exchange rate changes (3,463 ) — (20,932 ) — (24,395 ) Net increase (decrease) in cash and cash equivalents 3,282 (1,560 ) (147,892 ) — (146,170 ) Cash and cash equivalents at the beginning of the period 4,507 2,136 497,825 — 504,468 Cash and cash equivalents at the end of the period $ 4,326 $ 576 $ 329,001 $ — $ 333,903 29. Guarantor financial information (continued) Condensed Consolidating Cash Flow Six months ended June 30, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (331,065 ) $ (8,331 ) $ (142,528 ) $ 597,248 $ 115,324 Investing activities Purchase of property, plant and equipment — — (29,350 ) — (29,350 ) Payment for internally generated intangible assets (including intangibles under development) — — (8,950 ) — (8,950 ) Proceeds from sale of property, plant and equipment — — 566 — 566 Investment in equity affiliates — — (496 ) — (496 ) Investment in subsidiaries — — — — — Payment for business acquisitions, net of cash acquired — — (207,181 ) — (207,181 ) Net cash (used for) provided by investing activities $ — $ — $ (245,411 ) $ - $ (245,411 ) Financing activities Repayment of capital lease obligations — — (1,106 ) — (1,106 ) Payment of debt issuance costs (1,481 ) — — — (1,481 ) Proceeds from long-term debt 350,000 — — — 350,000 Repayment of long-term debt — — (20,000 ) — (20,000 ) Proceeds from short-term borrowings — — 230,000 — 230,000 Repayment of short-term borrowings — — (185,000 ) — (185,000 ) Proceeds from intercompany loans 10,000 249,500 546,863 (806,363 ) — Repayment of intercompany loans (29,615 ) — (179,500 ) 209,115 — Proceeds from issuance of common shares under stock-based compensation plans — 10,080 — — 10,080 Payment for net settlement of stock-based awards — (9,949 ) — — (9,949 ) Payment of earn-out/deferred consideration — — (1,287 ) — (1,287 ) Dividend paid — (23,515 ) — — (23,515 ) Payment for stock repurchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock repurchase — (16 ) — — (16 ) Net cash (used for) provided by financing activities $ 328,904 $ 6,316 $ 389,970 $ (597,248 ) $ 127,942 Effect of exchange rate changes 810 — 19,776 — 20,586 Net increase (decrease) in cash and cash equivalents (2,161 ) (2,015 ) 2,031 — (2,145 ) Cash and cash equivalents at the beginning of the period 11,215 7,849 403,559 — 422,623 Cash and cash equivalents at the end of the period $ 9,864 $ 5,834 $ 425,366 $ — $ 441,064 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Jun. 30, 2018EmployeeCountry |
Accounting Policies [Abstract] | |
Number of employees around the globe, minimum | Employee | 80,000 |
Number of countries in which entity operates | Country | 20 |
Estimated Useful Lives of Intan
Estimated Useful Lives of Intangible Assets Acquired (Detail) | 6 Months Ended |
Jun. 30, 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 |
Technology-related intangible assets | Minimum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 2 years |
Technology-related intangible assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 8 years |
Other Intangible Assets | Minimum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 3 years |
Other Intangible Assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 5 years |
Summary of Significant Accoun63
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Cumulative effect of adoption resulted increase in retained earning | $ 338,120 | [1] | $ 355,982 | |||
Impact on contract cost asset | [1],[2] | 162,178 | ||||
Impact on deferred tax liabilities | 7,036 | $ 6,747 | ||||
Adjustments | Topic 606 | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Cumulative effect of adoption resulted increase in retained earning | (19,173) | [1] | $ 17,924 | |||
Impact on contract cost asset | (162,178) | [1],[2] | 23,227 | |||
Impact on deferred tax liabilities | 5,303 | |||||
Contract assets and contract liabilities netted off | $ 2,386 | $ 21,348 | ||||
General Electric Company | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Percentage of accounts receivables | 12.00% | 11.00% | ||||
Percentage of total revenue | 10.00% | 10.00% | ||||
[1] | The cumulative impact of the adoption of ASC 606 resulted in a $162,178 increase in "Contract cost assets," which includes the reclassification of $137,370 (refer to note (a) in the table above) and a closing balance of $24,808 related to sales incentive programs, with a corresponding impact on retained earnings of $19,173 and on deferred tax liabilities of $5,635 which has been offset against deferred tax assets. | |||||
[2] | As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. |
Summary of Significant Accoun64
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
Current assets | |||||||
Cash and cash equivalents | $ 333,903 | $ 504,468 | $ 441,064 | $ 422,623 | |||
Accounts receivable, net | 691,347 | 693,085 | |||||
Prepaid expenses and other current assets | 207,334 | [1],[2] | 236,342 | ||||
Total current assets | 1,232,584 | 1,433,895 | |||||
Property, plant and equipment, net | 202,669 | 207,030 | |||||
Deferred tax assets | 88,278 | [3] | 76,929 | ||||
Investment in equity affiliates | 834 | 886 | |||||
Intangible assets, net | 120,624 | 131,590 | |||||
Goodwill | 1,311,361 | 1,337,122 | $ 1,069,408 | ||||
Contract cost assets | [2],[3] | 162,178 | |||||
Other assets | 147,550 | [1],[2] | 262,169 | ||||
Total assets | 3,266,078 | 3,449,621 | |||||
Current liabilities | |||||||
Short-term borrowings | 215,000 | 170,000 | |||||
Current portion of long-term debt | 39,249 | 39,226 | |||||
Accounts payable | 20,942 | 15,050 | |||||
Income taxes payable | 54,513 | 30,026 | |||||
Accrued expenses and other current liabilities | 483,241 | [1] | 584,482 | ||||
Total current liabilities | 812,945 | 838,784 | |||||
Long-term debt, less current portion | 987,314 | 1,006,687 | |||||
Deferred tax liabilities | 7,036 | 6,747 | |||||
Other liabilities | 162,358 | [1] | 168,609 | ||||
Total liabilities | 1,969,653 | 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 189,876,061 issued and outstanding as of December 31, 2017 and June 30, 2018, respectively | 1,895 | 1,924 | |||||
Additional paid-in capital | 1,438,072 | 1,421,368 | |||||
Retained earnings | 338,120 | [3] | 355,982 | ||||
Accumulated other comprehensive income (loss) | (481,662) | (355,230) | |||||
Total equity | 1,296,425 | 1,424,044 | |||||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | 3,266,078 | 3,449,621 | |||||
ASU 2014-09 | |||||||
Current assets | |||||||
Cash and cash equivalents | 333,903 | 504,468 | |||||
ASU 2014-09 | Adjustments | |||||||
Current assets | |||||||
Prepaid expenses and other current assets | [1],[2] | 79,777 | |||||
Total current assets | 79,777 | ||||||
Deferred tax assets | [3] | 5,635 | |||||
Contract cost assets | (162,178) | [2],[3] | $ 23,227 | ||||
Other assets | [1],[2] | 81,328 | |||||
Total assets | 4,562 | ||||||
Current liabilities | |||||||
Accrued expenses and other current liabilities | [1] | 10,996 | |||||
Total current liabilities | 10,996 | ||||||
Deferred tax liabilities | 5,303 | ||||||
Other liabilities | [1] | 12,739 | |||||
Total liabilities | 23,735 | ||||||
Shareholders' equity | |||||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | |||||||
Retained earnings | (19,173) | [3] | $ 17,924 | ||||
Total equity | (19,173) | ||||||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | 4,562 | ||||||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||||
Current assets | |||||||
Cash and cash equivalents | 333,903 | $ 504,468 | |||||
Accounts receivable, net | 691,347 | ||||||
Prepaid expenses and other current assets | [1],[2] | 287,111 | |||||
Total current assets | 1,312,361 | ||||||
Property, plant and equipment, net | 202,669 | ||||||
Deferred tax assets | [3] | 93,913 | |||||
Investment in equity affiliates | 834 | ||||||
Intangible assets, net | 120,624 | ||||||
Goodwill | 1,311,361 | ||||||
Other assets | [1],[2] | 228,878 | |||||
Total assets | 3,270,640 | ||||||
Current liabilities | |||||||
Short-term borrowings | 215,000 | ||||||
Current portion of long-term debt | 39,249 | ||||||
Accounts payable | 20,942 | ||||||
Income taxes payable | 54,513 | ||||||
Accrued expenses and other current liabilities | [1] | 494,237 | |||||
Total current liabilities | 823,941 | ||||||
Long-term debt, less current portion | 987,314 | ||||||
Deferred tax liabilities | 7,036 | ||||||
Other liabilities | [1] | 175,097 | |||||
Total liabilities | 1,993,388 | ||||||
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 189,876,061 issued and outstanding as of December 31, 2017 and June 30, 2018, respectively | 1,895 | ||||||
Additional paid-in capital | 1,438,072 | ||||||
Retained earnings | [3] | 318,947 | |||||
Accumulated other comprehensive income (loss) | (481,662) | ||||||
Total equity | 1,277,252 | ||||||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | $ 3,270,640 | ||||||
[1] | As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||||||
[2] | As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. | ||||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in a $162,178 increase in "Contract cost assets," which includes the reclassification of $137,370 (refer to note (a) in the table above) and a closing balance of $24,808 related to sales incentive programs, with a corresponding impact on retained earnings of $19,173 and on deferred tax liabilities of $5,635 which has been offset against deferred tax assets. |
Summary of Significant Accoun65
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Balance Sheet (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2018 | 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 | 189,876,061 | 192,825,207 | ||||
Common shares, outstanding | 189,876,061 | 192,825,207 | ||||
Impact on contract cost asset | [1],[2] | $ 162,178 | ||||
Prepaid expenses and other current assets | 207,334 | [1],[3] | $ 236,342 | |||
Other assets | 147,550 | [1],[3] | 262,169 | |||
Cumulative effect of adoption resulted increase in retained earning | 338,120 | [2] | 355,982 | |||
Impact on deferred tax liabilities | 7,036 | 6,747 | ||||
Accrued expenses and other current liabilities | 483,241 | [3] | 584,482 | |||
Other liabilities | 162,358 | [3] | 168,609 | |||
Process Transition Activities | ||||||
Revenue Recognition [Line Items] | ||||||
Impact on contract cost asset | 137,370 | $ 139,164 | 139,284 | |||
Sales Incentive Programs | ||||||
Revenue Recognition [Line Items] | ||||||
Impact on contract cost asset | 24,808 | $ 23,271 | $ 23,227 | |||
ASU 2014-09 | Sales Incentive Programs | ||||||
Revenue Recognition [Line Items] | ||||||
Impact on contract cost asset | 24,808 | |||||
Adjustments | ASU 2014-09 | ||||||
Revenue Recognition [Line Items] | ||||||
Impact on contract cost asset | (162,178) | [1],[2] | $ 23,227 | |||
Prepaid expenses and other current assets | [1],[3] | 79,777 | ||||
Other assets | [1],[3] | 81,328 | ||||
Cumulative effect of adoption resulted increase in retained earning | (19,173) | [2] | 17,924 | |||
Impact on deferred tax liabilities | $ 5,303 | |||||
Accrued expenses and other current liabilities | [3] | 10,996 | ||||
Other liabilities | [3] | 12,739 | ||||
Adjustments | ASU 2014-09 | Contract Assets | ||||||
Revenue Recognition [Line Items] | ||||||
Prepaid expenses and other current assets | (10,996) | |||||
Other assets | (12,739) | |||||
Adjustments | ASU 2014-09 | Contract Liabilities | ||||||
Revenue Recognition [Line Items] | ||||||
Accrued expenses and other current liabilities | (10,996) | |||||
Other liabilities | (12,739) | |||||
Adjustments | ASU 2014-09 | Process Transition Activities | ||||||
Revenue Recognition [Line Items] | ||||||
Impact on contract cost asset | 137,370 | |||||
Prepaid expenses and other current assets | (68,781) | |||||
Other assets | (68,589) | |||||
Adjustments | ASU 2014-09 | Sales Incentive Programs | ||||||
Revenue Recognition [Line Items] | ||||||
Impact on contract cost asset | 162,178 | |||||
Cumulative effect of adoption resulted increase in retained earning | 19,173 | |||||
Impact on deferred tax liabilities | $ 5,635 | |||||
[1] | As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. | |||||
[2] | The cumulative impact of the adoption of ASC 606 resulted in a $162,178 increase in "Contract cost assets," which includes the reclassification of $137,370 (refer to note (a) in the table above) and a closing balance of $24,808 related to sales incentive programs, with a corresponding impact on retained earnings of $19,173 and on deferred tax liabilities of $5,635 which has been offset against deferred tax assets. | |||||
[3] | As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. |
Summary of Significant Accoun66
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Revenue Recognition [Line Items] | |||||||
Net revenues | [1] | $ 728,561 | $ 670,697 | $ 1,417,473 | $ 1,293,692 | ||
Cost of revenue | [1] | 462,898 | 414,508 | 907,222 | 797,845 | ||
Gross profit | [1] | 265,663 | 256,189 | 510,251 | 495,847 | ||
Operating expenses: | |||||||
Selling, general and administrative expenses | [1] | 176,166 | [2] | 167,758 | 347,275 | [3] | 328,616 |
Amortization of acquired intangible assets | [1] | 9,826 | 8,387 | 19,762 | 15,629 | ||
Other operating (income) expense, net | [1] | 149 | (915) | (69) | (8,453) | ||
Income from operations | [1] | 79,522 | 80,959 | 143,283 | 160,055 | ||
Foreign exchange gains (losses), net | [1] | 2,805 | 1,913 | 7,603 | (3,000) | ||
Interest income (expense), net | [1] | (10,407) | (9,850) | (18,507) | (15,343) | ||
Other income (expense), net | [1] | 9,748 | 11,560 | 25,298 | 12,113 | ||
Income before equity-method investment activity, net and income tax expense | [1] | 81,668 | 84,582 | 157,677 | 153,825 | ||
Equity-method investment activity, net | [1] | (15) | (9) | (15) | (4,567) | ||
Income before income tax expense | [1] | 81,653 | 84,573 | 157,662 | 149,258 | ||
Income tax expense | [1] | 17,079 | 15,471 | 29,154 | 27,716 | ||
Net income | [1] | 64,574 | 69,102 | 128,508 | 121,542 | ||
Net loss (income) attributable to redeemable non-controlling interest | [1] | (156) | 761 | 742 | |||
Net income attributable to Genpact Limited shareholders | [1] | 64,574 | $ 68,946 | 129,269 | $ 122,284 | ||
ASU 2014-09 | |||||||
Operating expenses: | |||||||
Amortization of acquired intangible assets | 19,762 | ||||||
Equity-method investment activity, net | (15) | ||||||
Net income | [4] | 128,508 | |||||
Net loss (income) attributable to redeemable non-controlling interest | 761 | ||||||
Net income attributable to Genpact Limited shareholders | [4] | 129,269 | |||||
ASU 2014-09 | Adjustments | |||||||
Operating expenses: | |||||||
Selling, general and administrative expenses | 1,537 | [2] | 1,581 | [3] | |||
Income from operations | (1,537) | (1,581) | |||||
Income before equity-method investment activity, net and income tax expense | (1,537) | (1,581) | |||||
Income before income tax expense | (1,537) | (1,581) | |||||
Income tax expense | (332) | (332) | |||||
Net income | (1,205) | (1,249) | [4] | ||||
Net income attributable to Genpact Limited shareholders | (1,205) | (1,249) | [4] | ||||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||||
Revenue Recognition [Line Items] | |||||||
Net revenues | 728,561 | 1,417,473 | |||||
Cost of revenue | 462,898 | 907,222 | |||||
Gross profit | 265,663 | 510,251 | |||||
Operating expenses: | |||||||
Selling, general and administrative expenses | 177,703 | [2] | 348,856 | [3] | |||
Amortization of acquired intangible assets | 9,826 | 19,762 | |||||
Other operating (income) expense, net | 149 | (69) | |||||
Income from operations | 77,985 | 141,702 | |||||
Foreign exchange gains (losses), net | 2,805 | 7,603 | |||||
Interest income (expense), net | (10,407) | (18,507) | |||||
Other income (expense), net | 9,748 | 25,298 | |||||
Income before equity-method investment activity, net and income tax expense | 80,131 | 156,096 | |||||
Equity-method investment activity, net | (15) | (15) | |||||
Income before income tax expense | 80,116 | 156,081 | |||||
Income tax expense | 16,747 | 28,822 | |||||
Net income | 63,369 | 127,259 | [4] | ||||
Net loss (income) attributable to redeemable non-controlling interest | 761 | ||||||
Net income attributable to Genpact Limited shareholders | $ 63,369 | $ 128,020 | [4] | ||||
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. | ||||||
[2] | During the three months ended June 30, 2018, the Company amortized $3,604 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $5,141, resulting in a net adjustment of $1,537 with a corresponding impact on income tax expense of $332. | ||||||
[3] | During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 with a corresponding impact on income tax expense of $332. | ||||||
[4] | During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 and a tax impact of $332 which is further adjusted by note (g) below. |
Summary of Significant Accoun67
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Statement of Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Revenue Recognition [Line Items] | |||||
Income tax expense | [1] | $ 17,079 | $ 15,471 | $ 29,154 | $ 27,716 |
ASU 2014-09 | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 3,604 | 6,843 | |||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 5,141 | 8,424 | |||
Income tax expense | 16,747 | 28,822 | |||
ASU 2014-09 | Adjustments | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 1,537 | 1,581 | |||
Income tax expense | $ (332) | $ (332) | |||
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Summary of Significant Accoun68
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Statement of Cash Flow (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |||
Operating activities | |||||||
Net income attributable to Genpact Limited shareholders | [1] | $ 64,574 | $ 68,946 | $ 129,269 | $ 122,284 | ||
Net loss attributable to redeemable non-controlling interest | [1] | 156 | (761) | (742) | |||
Net income | [1] | 64,574 | 69,102 | 128,508 | 121,542 | ||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||
Depreciation and amortization | 31,613 | 27,312 | |||||
Amortization of acquired intangible assets | [1] | 9,826 | 8,387 | 19,762 | 15,629 | ||
Write-down of intangible assets and property, plant and equipment | 850 | 850 | |||||
Reserve for doubtful receivables | 1,347 | 1,793 | $ 9,819 | ||||
Unrealized loss (gain) on revaluation of foreign currency asset/liability | (7,350) | 2,956 | |||||
Equity-method investment activity, net | [1] | 15 | 9 | 15 | 4,567 | ||
Stock-based compensation expense | 18,724 | 12,351 | |||||
Deferred income taxes | (4,194) | (5,260) | |||||
Others, net | 294 | (4,816) | |||||
Change in operating assets and liabilities: | |||||||
Increase in accounts receivable | (4,548) | (1,958) | |||||
Increase in accounts payable | 6,289 | 1,624 | |||||
Decrease in accrued expenses, other current liabilities and other liabilities | (96,965) | (52,022) | |||||
Increase in income taxes payable | 25,719 | 25,977 | |||||
Net cash provided by operating activities | 49,484 | 115,324 | |||||
Investing activities | |||||||
Purchase of property, plant and equipment | (37,703) | (29,350) | |||||
Payment for internally generated intangible assets (including intangibles under development) | (11,544) | (8,950) | |||||
Proceeds from sale of property, plant and equipment | 309 | 566 | |||||
Payment for business acquisitions, net of cash acquired | (728) | (207,181) | |||||
Net cash used for investing activities | (54,396) | (245,411) | |||||
Financing activities | |||||||
Repayment of capital lease obligations | (1,108) | (1,106) | |||||
Repayment of long-term debt | (20,000) | (20,000) | |||||
Proceeds from short-term borrowings | 105,000 | 230,000 | |||||
Repayment of short-term borrowings | (60,000) | (185,000) | |||||
Proceeds from issuance of common shares under stock-based compensation plans | 9,388 | 10,080 | |||||
Payment for net settlement of stock-based awards | (14,229) | (9,949) | |||||
Payment of earn-out/deferred consideration | (1,476) | (1,287) | |||||
Dividend paid | (28,648) | (23,515) | |||||
Payment for stock repurchased and retired | (130,103) | (219,784) | |||||
Payment for expenses related to stock repurchase | (82) | (16) | |||||
Net cash provided by/(used for) financing activities | (141,258) | 127,942 | |||||
Effect of exchange rate changes | (24,395) | 20,586 | |||||
Net increase (decrease) in cash and cash equivalents | (146,170) | (2,145) | |||||
Cash and cash equivalents at the beginning of the period | 504,468 | 422,623 | 422,623 | ||||
Cash and cash equivalents at the end of the period | 333,903 | $ 441,064 | 333,903 | $ 441,064 | 504,468 | ||
ASU 2014-09 | |||||||
Operating activities | |||||||
Net income attributable to Genpact Limited shareholders | [2] | 129,269 | |||||
Net loss attributable to redeemable non-controlling interest | (761) | ||||||
Net income | [2] | 128,508 | |||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||
Depreciation and amortization | 31,613 | ||||||
Amortization of debt issuance costs | 979 | ||||||
Amortization of acquired intangible assets | 19,762 | ||||||
Write-down of intangible assets and property, plant and equipment | 850 | ||||||
Reserve for doubtful receivables | 1,347 | ||||||
Unrealized loss (gain) on revaluation of foreign currency asset/liability | (7,350) | ||||||
Equity-method investment activity, net | 15 | ||||||
Stock-based compensation expense | 18,724 | ||||||
Deferred income taxes | [2] | (4,194) | |||||
Others, net | 294 | ||||||
Change in operating assets and liabilities: | |||||||
Increase in accounts receivable | (4,548) | ||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [2],[3] | (71,559) | |||||
Increase in accounts payable | 6,289 | ||||||
Decrease in accrued expenses, other current liabilities and other liabilities | [3] | (96,965) | |||||
Increase in income taxes payable | 25,719 | ||||||
Net cash provided by operating activities | 49,484 | ||||||
Investing activities | |||||||
Purchase of property, plant and equipment | (37,703) | ||||||
Payment for internally generated intangible assets (including intangibles under development) | (11,544) | ||||||
Proceeds from sale of property, plant and equipment | 309 | ||||||
Payment for business acquisitions, net of cash acquired | (728) | ||||||
Payment for redeemable non-controlling interest | (4,730) | ||||||
Net cash used for investing activities | (54,396) | ||||||
Financing activities | |||||||
Repayment of capital lease obligations | (1,108) | ||||||
Repayment of long-term debt | (20,000) | ||||||
Proceeds from short-term borrowings | 105,000 | ||||||
Repayment of short-term borrowings | (60,000) | ||||||
Proceeds from issuance of common shares under stock-based compensation plans | 9,388 | ||||||
Payment for net settlement of stock-based awards | (14,229) | ||||||
Payment of earn-out/deferred consideration | (1,476) | ||||||
Dividend paid | (28,648) | ||||||
Payment for stock repurchased and retired | (130,103) | ||||||
Payment for expenses related to stock repurchase | (82) | ||||||
Net cash provided by/(used for) financing activities | (141,258) | ||||||
Effect of exchange rate changes | (24,395) | ||||||
Net increase (decrease) in cash and cash equivalents | (146,170) | ||||||
Cash and cash equivalents at the beginning of the period | 504,468 | ||||||
Cash and cash equivalents at the end of the period | 333,903 | 333,903 | 504,468 | ||||
ASU 2014-09 | Adjustments | |||||||
Operating activities | |||||||
Net income attributable to Genpact Limited shareholders | (1,205) | (1,249) | [2] | ||||
Net income | (1,205) | (1,249) | [2] | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||
Deferred income taxes | [2] | (332) | |||||
Change in operating assets and liabilities: | |||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [2],[3] | (805) | |||||
Decrease in accrued expenses, other current liabilities and other liabilities | [3] | 2,386 | |||||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||||
Operating activities | |||||||
Net income attributable to Genpact Limited shareholders | 63,369 | 128,020 | [2] | ||||
Net loss attributable to redeemable non-controlling interest | (761) | ||||||
Net income | 63,369 | 127,259 | [2] | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||
Depreciation and amortization | 31,613 | ||||||
Amortization of debt issuance costs | 979 | ||||||
Amortization of acquired intangible assets | 9,826 | 19,762 | |||||
Write-down of intangible assets and property, plant and equipment | 850 | ||||||
Reserve for doubtful receivables | 1,347 | ||||||
Unrealized loss (gain) on revaluation of foreign currency asset/liability | (7,350) | ||||||
Equity-method investment activity, net | 15 | 15 | |||||
Stock-based compensation expense | 18,724 | ||||||
Deferred income taxes | [2] | (4,526) | |||||
Others, net | 294 | ||||||
Change in operating assets and liabilities: | |||||||
Increase in accounts receivable | (4,548) | ||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [2],[3] | (72,364) | |||||
Increase in accounts payable | 6,289 | ||||||
Decrease in accrued expenses, other current liabilities and other liabilities | [3] | (94,579) | |||||
Increase in income taxes payable | 25,719 | ||||||
Net cash provided by operating activities | 49,484 | ||||||
Investing activities | |||||||
Purchase of property, plant and equipment | (37,703) | ||||||
Payment for internally generated intangible assets (including intangibles under development) | (11,544) | ||||||
Proceeds from sale of property, plant and equipment | 309 | ||||||
Payment for business acquisitions, net of cash acquired | (728) | ||||||
Payment for redeemable non-controlling interest | (4,730) | ||||||
Net cash used for investing activities | (54,396) | ||||||
Financing activities | |||||||
Repayment of capital lease obligations | (1,108) | ||||||
Repayment of long-term debt | (20,000) | ||||||
Proceeds from short-term borrowings | 105,000 | ||||||
Repayment of short-term borrowings | (60,000) | ||||||
Proceeds from issuance of common shares under stock-based compensation plans | 9,388 | ||||||
Payment for net settlement of stock-based awards | (14,229) | ||||||
Payment of earn-out/deferred consideration | (1,476) | ||||||
Dividend paid | (28,648) | ||||||
Payment for stock repurchased and retired | (130,103) | ||||||
Payment for expenses related to stock repurchase | (82) | ||||||
Net cash provided by/(used for) financing activities | (141,258) | ||||||
Effect of exchange rate changes | (24,395) | ||||||
Net increase (decrease) in cash and cash equivalents | (146,170) | ||||||
Cash and cash equivalents at the beginning of the period | 504,468 | ||||||
Cash and cash equivalents at the end of the period | $ 333,903 | $ 333,903 | $ 504,468 | ||||
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. | ||||||
[2] | During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 and a tax impact of $332 which is further adjusted by note (g) below. | ||||||
[3] | Following the adoption of ASC 606, the Company offset certain contract assets against contract liabilities related to the same customer contract in an amount of $2,386. |
Summary of Significant Accoun69
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Statement of Cash Flow (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | ||
Revenue Recognition [Line Items] | |||||
Deferred income taxes | $ (4,194) | $ (5,260) | |||
ASU 2014-09 | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | $ 3,604 | 6,843 | |||
Deferred income taxes | [1] | (4,194) | |||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 5,141 | 8,424 | |||
Deferred income taxes | [1] | (4,526) | |||
ASU 2014-09 | Adjustments | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 1,537 | 1,581 | |||
Deferred income taxes | [1] | (332) | |||
Contract assets and contract liabilities netted off | $ 2,386 | $ 2,386 | $ 21,348 | ||
[1] | During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 and a tax impact of $332 which is further adjusted by note (g) below. |
Business Acquisitions - Strateg
Business Acquisitions - Strategic Sourcing Excellence Limited - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 01, 2018 | Jan. 08, 2016 | Mar. 31, 2018 | Jun. 30, 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 | $ 1,311,361 | $ 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 holders | $ 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 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Payment for business acquisitions, net of cash acquired | $ 728 | $ 207,181 | ||||
Goodwill | $ 1,311,361 | $ 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 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Payment for business acquisitions, net of cash acquired | $ 728 | $ 207,181 | ||||
Goodwill | $ 1,311,361 | $ 1,337,122 | $ 1,069,408 | |||
Acquisition related cost | $ 164 | |||||
Acquired assets | 412 | |||||
Liabilities assumed | $ 617 | |||||
Bright Claim LLC 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 | |||||
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 LLC And Associated Companies | Customer-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 8,000 | |||||
Bright Claim LLC And Associated Companies | Marketing-Related Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 3,200 | |||||
Bright Claim LLC And Associated Companies | Technology-related intangible assets | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 2,200 | |||||
Bright Claim LLC 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 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Payment for business acquisitions, net of cash acquired | $ 728 | $ 207,181 | ||||
Goodwill | $ 1,311,361 | $ 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 | $ 125,329 | |||||
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 | $ 105,451 | |||||
Acquisition related cost | 881 | |||||
Acquired assets | 13,836 | |||||
Liabilities assumed | 9,752 | |||||
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 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Payment for business acquisitions, net of cash acquired | $ 728 | $ 207,181 | |||
Goodwill | $ 1,311,361 | $ 1,337,122 | $ 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 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and other bank balances | $ 333,903 | $ 504,468 | ||
Total | $ 333,903 | $ 504,468 | $ 441,064 | $ 422,623 |
Reserve for Doubtful Receivable
Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Opening Balance | $ 23,660 | $ 15,519 | $ 15,519 |
Additions due to acquisitions | 235 | ||
Reserve for doubtful receivables | 1,347 | $ 1,793 | 9,819 |
Deductions/effect of exchange rate fluctuations | (617) | (1,913) | |
Closing balance | $ 24,390 | $ 23,660 |
Accounts Receivable, Net of R80
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | |||
Gross accounts receivable | $ 715,737,000 | $ 716,745,000 | |
Reserve for doubtful receivables | 24,390,000 | 23,660,000 | $ 15,519,000 |
Net accounts receivable | 691,347,000 | 693,085,000 | |
Accounts receivable due after one year | 3,880,000 | 1,624,000 | |
Accounts receivable from related parties | 183,000 | 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 | Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative instruments, assets | [1],[2] | $ 32,095 | $ 73,098 |
Total, assets | 32,095 | 73,098 | |
Earn-out consideration | [3],[4] | 23,609 | 24,732 |
Derivative instruments, liabilities | [2],[3] | 49,378 | 18,188 |
Total, liabilities | 72,987 | 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] | 32,095 | 73,098 |
Total, assets | 32,095 | 73,098 | |
Derivative instruments, liabilities | [2],[3] | 49,378 | 18,188 |
Total, liabilities | 49,378 | 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] | 23,609 | 24,732 |
Total, liabilities | $ 23,609 | 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 | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | $ 23,900 | $ 21,262 | $ 24,732 | $ 22,435 | |
Earn-out consideration payable in connection with acquisitions | 2,320 | ||||
Payments made on earn-out consideration | (275) | (1,476) | (1,482) | ||
Change in fair value of earn-out consideration | [1] | (650) | 1,713 | (633) | (1,425) |
Others | [2] | 359 | 574 | 986 | 1,426 |
Ending balance | $ 23,609 | $ 23,274 | $ 23,609 | $ 23,274 | |
[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] | Others is comprised of interest expense included in “interest income (expense), net” and the impact of changes in foreign exchange reported in “foreign exchange gains (losses), net” in the consolidated statements of income. This change also includes a cumulative translation adjustment reported as a component of other comprehensive income (loss). |
Derivative Financial Instrume83
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Gains (losses) recognized in income on ineffective portion of derivatives and excluded from effectiveness testing | $ 0 | $ 0 | $ 0 | $ 0 |
Forward Foreign Exchange Contracts | Maximum | ||||
Derivative [Line Items] | ||||
Derivative financial instrument contracts, maturity period | 54 months | |||
Interest Rate Swaps | Maximum | ||||
Derivative [Line Items] | ||||
Derivative financial instrument contracts, maturity period | 54 months |
Aggregate Notional Principal Am
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (17,283,000) | $ 54,910,000 |
United States Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,255,200,000 | 1,289,400,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (28,423,000) | 54,398,000 |
United States Dollars (sell) Mexican Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 6,000,000 | 9,000,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (72,000) | (441,000) |
United States Dollars (sell) Philippines Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 58,250,000 | 76,650,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (3,309,000) | 69,000 |
Euro (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 134,950,000 | 170,542,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 3,715,000 | (2,069,000) |
Pound Sterling (buy) United States Dollars (sell) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 27,675,000 | 24,041,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (1,333,000) | 253,000 |
Euro (sell) Romanian Leu (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 20,929,000 | 35,826,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (267,000) | (892,000) |
Japanese Yen (sell) Chinese Renminbi (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 47,243,000 | 60,768,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (418,000) | 1,918,000 |
Pound Sterling (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 54,194,000 | 80,871,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (460,000) | (2,478,000) |
Australian Dollars (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 102,782,000 | 136,092,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 1,435,000 | (5,180,000) |
Interest Rate Swap Floating To Fixed [Member] | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 419,771,000 | 432,117,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 11,849,000 | $ 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 | Jun. 30, 2018 | Dec. 31, 2017 |
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | $ 1,655 | $ 4,635 |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 8,661 | 254 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 18,782 | 43,557 |
Cash Flow Hedges | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 11,658 | 24,906 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 16,099 | 10,092 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | $ 24,618 | $ 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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Comprehensive Income (Loss) [Line Items] | ||||
Opening balance, before-tax amount | $ 26,357 | $ 67,674 | $ 50,529 | $ 37,461 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount | 4,282 | 15,505 | 12,561 | 24,800 |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | (32,352) | (2) | (48,245) | 39,506 |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | (36,634) | (15,507) | (60,806) | 14,706 |
Closing balance, before-tax amount | (10,277) | 52,167 | (10,277) | 52,167 |
Opening balance, tax (expense) or benefit | (6,931) | (25,334) | (14,436) | (13,979) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit | (760) | (5,667) | (2,376) | (9,099) |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | 7,995 | 229 | 11,619 | (14,558) |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | 8,755 | 5,896 | 13,995 | (5,459) |
Closing balance, tax (expense) or benefit | 1,824 | (19,438) | 1,824 | (19,438) |
Opening balance, net of tax amount | 19,426 | 42,340 | 36,093 | 23,482 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount | 3,522 | 9,838 | 10,185 | 15,701 |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | (24,357) | 227 | (36,626) | 24,948 |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | (27,879) | (9,611) | (46,811) | 9,247 |
Closing balance, net of tax amount | (8,453) | $ 32,729 | (8,453) | $ 32,729 |
ASU 2018-02 | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of ASU 2018-02, tax (expense) or benefit | $ 2,265 | 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 | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ (32,352) | $ (2) | $ (48,245) | $ 39,506 | |
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 4,282 | 15,505 | 12,561 | 24,800 | |
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | (12,541) | 1,203 | (16,829) | 10,113 | |
Net revenues | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | (1,295) | 2,266 | (2,769) | 6,026 | |
Cost of Revenue | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 3,678 | 10,419 | 10,948 | 14,989 | |
Selling, General and Administrative Expenses | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 991 | 2,907 | 2,925 | 4,155 | |
Interest Expense | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 908 | (87) | 1,457 | (370) | |
Forward Foreign Exchange Contracts | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | (33,541) | 1,615 | (52,220) | 40,911 | |
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] | (12,541) | 1,203 | (16,829) | 10,113 |
Interest Rate Swaps | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ 1,189 | $ (1,617) | $ 3,975 | $ (1,405) | |
[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 Cu88
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Prepaid Expense And Other Assets Current [Abstract] | |||
Advance income and non-income taxes | $ 76,368 | $ 51,832 | |
Deferred transition costs | 62,029 | ||
Contract asset | 14,454 | ||
Customer acquisition cost | 19,327 | ||
Prepaid expenses | 28,793 | 16,944 | |
Derivative instruments | 20,437 | 48,192 | |
Employee advances | 3,425 | 5,014 | |
Deposits | 7,783 | 4,719 | |
Advances to suppliers | 5,668 | 2,705 | |
Others | 50,406 | 25,580 | |
Prepaid expenses and other current assets, net | $ 207,334 | [1],[2] | $ 236,342 |
[1] | As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | ||
[2] | As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. |
Property, Plant and Equipment89
Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Property, plant and equipment, gross | $ 656,348 | $ 666,031 |
Less: Accumulated depreciation and amortization | (453,679) | (459,001) |
Property, plant and equipment, net | $ 202,669 | $ 207,030 |
Property, Plant and Equipment90
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ 31,613 | $ 27,312 | ||
Tangible assets write-down | $ 850 | |||
Technology Related Intangible Assets | ||||
Property Plant And Equipment [Line Items] | ||||
Tangible assets write-down | 338 | |||
Computer Software Amortization | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | 2,760 | $ 2,727 | 5,573 | 5,406 |
Effect of Reclassification of Foreign Exchange (Gains) Losses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | (162) | (466) | (502) | (694) |
Depreciation Expense on Property, Plant And Equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | 12,360 | $ 9,983 | $ 24,634 | $ 21,212 |
Computer Software | ||||
Property Plant And Equipment [Line Items] | ||||
Tangible assets write-down | $ 512 |
Changes in Goodwill (Detail)
Changes in Goodwill (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 | 254 | (106) |
Effect of exchange rate fluctuations | (26,015) | 38,075 |
Closing balance | $ 1,311,361 | $ 1,337,122 |
Goodwill and Intangible Asset92
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||
Goodwill deductible for tax purposes | $ 130,160 | $ 130,160 | $ 120,617 | |||
Amortization of acquired intangible assets | [1] | 9,826 | $ 8,387 | 19,762 | $ 15,629 | |
Technology related internally developed intangibles | ||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||
Amortization of acquired intangible assets | 490 | 0 | 890 | 0 | ||
Technology related internally developed intangibles | Effect of Reclassification of Foreign Exchange (Gains) Losses | ||||||
Goodwill And Intangible Assets Disclosure [Line Items] | ||||||
Amortization of acquired intangible assets | $ (5) | $ 0 | $ (14) | $ 0 | ||
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Summary of Intangible Assets (D
Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 493,835 | $ 494,423 |
Accumulated amortization & Impairment | 373,211 | 362,833 |
Net | 120,624 | 131,590 |
Customer-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 358,968 | 369,173 |
Accumulated amortization & Impairment | 296,603 | 293,029 |
Net | 62,365 | 76,144 |
Marketing-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 51,699 | 52,443 |
Accumulated amortization & Impairment | 41,063 | 39,212 |
Net | 10,636 | 13,231 |
Technology-related intangible assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 55,826 | 54,189 |
Accumulated amortization & Impairment | 33,628 | 28,278 |
Net | 22,198 | 25,911 |
Other Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,315 | 3,081 |
Accumulated amortization & Impairment | 1,917 | 2,314 |
Net | 398 | 767 |
Intangible Assets Under Development [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 25,027 | 15,537 |
Net | $ 25,027 | $ 15,537 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Jun. 30, 2018 | Dec. 31, 2017 | |
Line Of Credit Facility [Line Items] | |||
Fund-based and non-fund-based credit facilities limits available | $ 14,486,000 | $ 15,064,000 | |
Utilization of credit facility for non fund-based usage | 7,588,000 | 7,900,000 | |
Credit facility, amount utilized | 217,098,000 | 170,978,000 | |
Short-term borrowings | $ 215,000,000 | $ 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 | $ 2,098,000 | $ 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 | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)Day | Jun. 30, 2015USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
Margin over LIBOR | 1.50% | 1.50% | 1.50% | ||
Debt discount and underwriting fee | $ 1,481,000 | ||||
Genpact Luxembourg S.à r.l. | |||||
Debt Instrument [Line Items] | |||||
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 | Genpact Luxembourg S.à r.l. | |||||
Debt Instrument [Line Items] | |||||
Debt amortization expense | $ 1,978,000 | $ 2,239,000 | |||
Debt amount outstanding | $ 348,022,000 | 347,761,000 | |||
Principal amount of senior notes issued | $ 350,000,000 | ||||
Interest rate on senior notes | 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 | ||||
Total debt issuance cost | $ 2,642,000 | ||||
Debt instrument, maturity date | Apr. 1, 2022 | ||||
Debt instrument description | The Issuer 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, number of days to provide offer to exchange notes for outstanding unregistered notes | Day | 455 | ||||
Term Loan Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt amortization expense | $ 1,459,000 | 1,848,000 | |||
Debt amount outstanding | 678,541,000 | $ 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 | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2,018 | $ 19,616 | |
2,019 | 39,272 | |
2,020 | 619,653 | |
Total | $ 678,541 | $ 698,152 |
Accrued Expenses and Other Cu97
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Accrued Liabilities And Other Liabilities [Abstract] | |||
Accrued expenses | $ 169,986 | $ 204,997 | |
Accrued employee cost | 131,085 | 204,506 | |
Earn-out consideration | 17,938 | 14,928 | |
Statutory liabilities | 30,556 | 36,283 | |
Retirement benefits | 21,272 | 21,074 | |
Derivative instruments | 24,760 | 10,346 | |
Advance from customers | 25,476 | ||
Contract liabilities | 74,682 | ||
Deferred transition revenue | 52,233 | ||
Other liabilities | 11,529 | 13,093 | |
Capital lease obligations | 1,433 | 1,546 | |
Accrued expenses and other current liabilities, net | $ 483,241 | [1] | $ 584,482 |
[1] | As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. |
Other Liabilities (Detail)
Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |||
Accrued employee cost | $ 10,133 | $ 14,020 | |
Earn-out consideration | 5,671 | 9,804 | |
Retirement benefits | 43,726 | 40,520 | |
Derivative instruments | 24,618 | 7,842 | |
Advance from customers | 790 | ||
Contract liabilities | 54,621 | ||
Deferred transition revenue | 70,900 | ||
Others | 21,494 | 22,069 | |
Capital lease obligations | 2,095 | 2,664 | |
Other Liabilities | $ 162,358 | [1] | $ 168,609 |
[1] | As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. |
Net Defined Benefit Plan Costs
Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Service costs | $ 2,058 | $ 1,857 | $ 4,053 | $ 3,577 |
Interest costs | 939 | 793 | 1,934 | 1,527 |
Amortization of actuarial loss | 235 | 227 | 555 | 432 |
Expected return on plan assets | (744) | (539) | (1,480) | (1,031) |
Net defined benefit plan costs | $ 2,488 | $ 2,338 | $ 5,062 | $ 4,505 |
Amounts Contributed to Defined
Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | $ 17,187 | $ 15,248 | $ 35,421 | $ 31,422 |
India | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 6,061 | 5,566 | 12,005 | 10,783 |
U.K. | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 3,187 | 2,354 | 5,324 | 4,074 |
China | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 4,408 | 3,740 | 8,802 | 7,568 |
Other Regions | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 1,172 | 948 | 2,332 | 2,077 |
U.S. | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | $ 2,359 | $ 2,640 | $ 6,958 | $ 6,920 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Apr. 11, 2012 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | May 09, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock based compensation cost | $ 10,746,000 | $ 7,233,000 | $ 18,343,000 | $ 12,078,000 | ||
Options granted, contractual period, years | 10 years | |||||
Unrecognized stock-based compensation cost for options | 25,160,000 | $ 25,160,000 | ||||
Employee Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted average remaining requisite vesting period | 4 years 4 months 24 days | |||||
Restricted Share Units (RSUs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted average remaining requisite vesting period | 2 years 4 months 24 days | |||||
Unrecognized stock-based compensation cost | 22,709,000 | $ 22,709,000 | ||||
Performance Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted average remaining requisite vesting period | 2 years 3 months 18 days | |||||
Unrecognized stock-based compensation cost | $ 56,414,000 | $ 56,414,000 | ||||
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% | 15.00% | ||||
Maximum dollar amount of common shares allowed to be purchased | $ 25,000 | |||||
Common shares reserved for issuance | 4,200,000 | 4,200,000 | ||||
Issuance of common shares under the employee stock purchase plan (in shares) | 114,951 | 100,357 | ||||
Compensation expense for ESPP | $ 191,000 | $ 132,000 | $ 381,000 | $ 273,000 | ||
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) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 0.97% | |
Expected life (in months) | 84 months | 84 months |
Risk-free rate of interest | 2.25% | |
Risk-free rate of interest, minimum | 2.67% | |
Risk-free rate of interest, maximum | 2.93% | |
Volatility | 24.28% | |
Volatility, minimum | 22.67% | |
Volatility, maximum | 22.73% | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 0.95% | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 0.99% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 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 | 2,568,106 | ||
Forfeited, shares arising out of options | (70,000) | ||
Exercised, shares arising out of options | (366,382) | ||
Outstanding, shares arising out of options, ending balance | 7,266,369 | 5,134,645 | |
Vested and expected to vest thereafter, shares arising out of options | [1] | 7,082,892 | |
Vested and exercisable, shares arising out of options | 3,388,264 | ||
Weighted average grant-date fair value of options granted during the period | $ 8.33 | ||
Weighted average exercise price | |||
Outstanding weighted average exercise price, beginning balance | 19.52 | ||
Granted, weighted average exercise price | 30.49 | ||
Forfeited, weighted average exercise price | 27.65 | ||
Exercised, weighted average exercise price | 16.95 | ||
Outstanding weighted average exercise price, ending balance | 23.45 | $ 19.52 | |
Vested and expected to vest thereafter, weighted average exercise price | [1] | 23.34 | |
Vested and exercisable, weighted average exercise price | $ 17.61 | ||
Weighted average remaining contractual life (years) | |||
Outstanding weighted average remaining contractual life (years) | 6 years 9 months 18 days | 5 years 7 months 6 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [1] | 6 years 9 months 18 days | |
Vested and exercisable, weighted average remaining contractual life (years) | 4 years 2 months 12 days | ||
Aggregate intrinsic value | |||
Exercised, aggregate intrinsic value | $ 4,389 | ||
Outstanding aggregate intrinsic value, ending balance | 43,836 | ||
Vested and expected to vest thereafter, aggregate intrinsic value | [1] | 43,429 | |
Vested and exercisable, aggregate intrinsic value | $ 38,347 | ||
[1] | Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Uni
Summary of Restricted Share Units Activity (Detail) - Restricted Share Units (RSUs) - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2018 | ||
Number of Restricted Share Units | |||
Outstanding number of shares (Units), beginning balance | 1,605,251 | 1,605,251 | |
Granted, number of shares (Units) | 79,562 | ||
Vested, number of shares (Units) | [1] | (202,251) | |
Forfeited, number of shares (Units) | (116,004) | ||
Outstanding number of shares (Units), ending balance | 1,366,558 | ||
Expected to vest, number of shares (Units) | [2] | 1,203,082 | |
Weighted Average Grant Date Fair Value | |||
Outstanding weighted average grant date fair value, beginning balance | $ 26.17 | $ 26.17 | |
Granted, weighted average grant date fair value | 29.51 | ||
Vested, weighted average grant date fair value | [1] | 25.12 | |
Forfeited, weighted average grant date fair value | 26.18 | ||
Outstanding weighted average grant date fair value, ending balance | $ 26.52 | ||
Vested RSU issued during the period | 149,376 | ||
Vested in December 31, 2016 | |||
Weighted Average Grant Date Fair Value | |||
Vested RSU issued during the period | 52,055 | ||
Vested in December 31, 2016 | Scenario, Forecast | |||
Weighted Average Grant Date Fair Value | |||
Vested RSU issued during the period | 52,482 | ||
[1] | 149,376 RSUs that vested during the period were net settled upon vesting by issuing 104,365 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 105
Summary of Restricted Share Units Activity (Parenthetical) (Detail) - Restricted Share Units (RSUs) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vested RSU issued during the period | 149,376 | |
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 104,365 | |
Shares to be issued on vested awards other than options | 52,875 |
Summary of Performance Units Ac
Summary of Performance Units Activity (Detail) - Performance Units | 6 Months Ended | |
Jun. 30, 2018$ / sharesshares | ||
Number of Performance Units | ||
Outstanding number of shares (Units), beginning balance | 2,900,940 | |
Granted, number of shares (Units) | 1,642,740 | |
Vested, number of shares (Units) | (1,087,751) | [1] |
Forfeited, number of shares (Units) | (186,279) | |
Adjustment upon final determination of level of performance goal achievement | (4,780) | [2] |
Outstanding number of shares (Units), ending balance | 3,264,870 | |
Expected to vest, number of shares (Units) | 2,681,322 | [3] |
Weighted Average Grant Date Fair Value | ||
Outstanding weighted average grant date fair value, beginning balance | $ / shares | $ 24.40 | |
Granted, weighted average grant date fair value | $ / shares | 30.64 | |
Vested, weighted average grant date fair value | $ / shares | 22.73 | [1] |
Forfeited, weighted average grant date fair value | $ / shares | 25.24 | |
Adjustment upon final determination of level of performance goal achievement | $ / shares | 25.22 | [2] |
Outstanding weighted average grant date fair value, ending balance | $ / shares | $ 28.05 | |
Maximum shares eligible to receive | ||
Outstanding maximum shares eligible to receive, beginning balance | 2,900,940 | |
Granted, maximum shares eligible to receive | 3,285,480 | |
Vested, maximum shares eligible to receive | (1,087,751) | [1] |
Forfeited, maximum shares eligible to receive | (186,279) | |
Adjustment upon final determination of level of performance goal achievement | (4,780) | [2] |
Outstanding maximum shares eligible to receive, ending balance | 4,907,610 | |
[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 Units107
Summary of Performance Units Activity (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2018shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Net settlement on vesting of performance units, shares | 691,958 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Jul. 25, 2018 | Jun. 20, 2018 | Mar. 21, 2018 | Feb. 12, 2018 | Jan. 17, 2018 | Dec. 29, 2017 | Jun. 28, 2017 | Mar. 30, 2017 | Mar. 28, 2017 | Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 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) | 4,114,882 | 808,293 | ||||||||||||||
Common stock shares repurchased price per share | $ 31.62 | $ 24.48 | ||||||||||||||
Aggregate amount of common stock shares repurchased | $ 130,103,000 | $ 219,784,000 | ||||||||||||||
Expenses related to stock purchases | 82,000 | 16,000 | ||||||||||||||
Quarterly dividend declared | $ 0.075 | $ 0.075 | $ 0.06 | $ 0.06 | ||||||||||||
Annual dividend | $ 0.24 | |||||||||||||||
Dividend | $ 14,240,000 | $ 14,408,000 | $ 11,558,000 | $ 11,957,000 | ||||||||||||
Dividend payment date | Sep. 19, 2018 | |||||||||||||||
Dividends payable, date of record | Sep. 10, 2018 | |||||||||||||||
Dividends payable, date declared | 2018-02 | 2017-02 | ||||||||||||||
Dividends paid per share | $ 0.075 | $ 0.075 | $ 0.06 | $ 0.06 | ||||||||||||
Percentage Increase In Quarterly Cash Dividend | 25.00% | |||||||||||||||
Planned annual dividend | $ 0.30 | $ 0.24 | ||||||||||||||
First Quarter Dividend | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Dividend payment date | Mar. 21, 2018 | Mar. 28, 2017 | ||||||||||||||
Dividends payable, date of record | Mar. 9, 2018 | Mar. 10, 2017 | ||||||||||||||
Second Quarter Dividend | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Dividend payment date | Jun. 20, 2018 | Jun. 28, 2017 | ||||||||||||||
Dividends payable, date of record | Jun. 8, 2018 | Jun. 12, 2017 | ||||||||||||||
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 | $ 130,103,000 | $ 19,784,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 2,270,885 | 1,251,323 | 1,465,442 | 1,127,185 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Earnings Per Share (Abstract) | |||||
Net income available to Genpact Limited common shareholders | [1] | $ 64,574 | $ 68,946 | $ 129,269 | $ 122,284 |
Weighted average number of common shares used in computing basic earnings per common share | [1] | 190,132,664 | 191,469,593 | 191,474,645 | 195,269,561 |
Dilutive effect of stock-based awards | 3,233,310 | 2,262,813 | 3,352,627 | 2,924,611 | |
Weighted average number of common shares used in computing dilutive earnings per common share | [1] | 193,365,974 | 193,732,406 | 194,827,272 | 198,194,172 |
Basic | [1] | $ 0.34 | $ 0.36 | $ 0.68 | $ 0.63 |
Diluted | [1] | $ 0.33 | $ 0.36 | $ 0.66 | $ 0.62 |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Net Revenues Disaggregated by C
Net Revenues Disaggregated by Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Total net revenues | [1] | $ 728,561 | $ 670,697 | $ 1,417,473 | $ 1,293,692 |
General Electric Company | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 65,444 | 63,192 | 123,493 | 132,446 | |
Global Clients | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | $ 663,117 | $ 607,505 | $ 1,293,980 | $ 1,161,246 | |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Net Revenues for Service Type (
Net Revenues for Service Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Total net revenues | [1] | $ 728,561 | $ 670,697 | $ 1,417,473 | $ 1,293,692 |
Business Process Outsourcing | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 605,911 | 556,227 | 1,179,972 | 1,067,510 | |
IT Services | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | $ 122,650 | $ 114,470 | $ 237,501 | $ 226,182 | |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Revenues from Clients Based on
Revenues from Clients Based on Industrial Verticals (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Total net revenues | [1] | $ 728,561 | $ 670,697 | $ 1,417,473 | $ 1,293,692 |
Banking, Financial Services and Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 280,290 | 269,295 | 554,413 | 507,583 | |
Consumer Goods, Retail, Life Sciences and Healthcare | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 208,546 | 205,814 | 408,174 | 401,537 | |
High tech, Manufacturing and Services | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | $ 239,725 | $ 195,588 | $ 454,886 | $ 384,572 | |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Net Revenues from Geographic Ar
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Total net revenues | [1] | $ 728,561 | $ 670,697 | $ 1,417,473 | $ 1,293,692 |
India | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 464,922 | 412,323 | 854,056 | 823,378 | |
Asia, other than India | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 78,230 | 70,747 | 157,691 | 137,409 | |
Americas | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 151,840 | 109,016 | 304,120 | 194,058 | |
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | $ 33,569 | $ 78,611 | $ 101,606 | $ 138,847 | |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Net Revenues - Additional Infor
Net Revenues - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018 | |
Revenues [Abstract] | |
Billing cycle period | 30 days |
Details of Company's Contract L
Details of Company's Contract Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | ||
Revenues [Abstract] | |||
Advance from customers, Opening balance | $ 34,570 | $ 26,266 | |
Advance from customers, Gross opening balance | 34,570 | 26,266 | |
Advance from customers, Additions | 5,488 | 16,736 | |
Advance from customers, Revenue recognized | (8,959) | (11,903) | |
Advance from customers, Currency translation adjustments | (758) | (758) | |
Advance from customers, Gross closing balance | 30,341 | 30,341 | |
Advance from customers, Closing balance | [1] | 30,341 | 30,341 |
Deferred transition revenue, Opening balance | 102,428 | 101,785 | |
Deferred transition revenue, Impact of opening balance offset | 24,427 | 21,348 | |
Deferred transition revenue, Gross opening balance | 126,855 | 123,133 | |
Deferred transition revenue, Additions | 18,375 | 32,711 | |
Deferred transition revenue, Revenue recognized | (21,752) | (32,356) | |
Deferred transition revenue, Currency translation adjustments | (781) | (791) | |
Deferred transition revenue, Gross closing balance | 122,697 | 122,697 | |
Deferred transition revenue, Impact of offset with contract asset | 23,735 | 23,735 | |
Deferred transition revenue, Closing Balance | [1] | $ 98,962 | $ 98,962 |
[1] | Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet. |
Estimated Revenue Expected to R
Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 99,666 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 44,970 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 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 | $ 45,059 |
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 | $ 9,220 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 417 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Estimated Revenue Expected t118
Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation (Detail 1) $ in Thousands | Jun. 30, 2018USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 99,666 |
Details of Company's Contract A
Details of Company's Contract Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | ||
Revenues [Abstract] | |||
Opening balance | $ 48,303 | $ 43,366 | |
Impact of opening balance offset | 24,427 | 21,348 | |
Gross opening balance | 72,730 | 64,714 | |
Additions | 5,428 | 19,518 | |
Reduction in revenue recognized | (12,752) | (18,826) | |
Gross closing balance | 65,406 | 65,406 | |
Impact of offset with contract liability | 23,735 | 23,735 | |
Closing Balance | [1] | $ 41,671 | $ 41,671 |
[1] | Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. |
Details of Company's Contract C
Details of Company's Contract Cost Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | ||
Revenues [Line Items] | |||
Closing balance | [1],[2] | $ 162,178 | $ 162,178 |
Sales Incentive Programs | |||
Revenues [Line Items] | |||
Opening balance | 23,271 | 23,227 | |
Closing balance | 24,808 | 24,808 | |
Amortized contract cost asset amount | 3,604 | 6,843 | |
Process Transition Activities | |||
Revenues [Line Items] | |||
Opening balance | 139,164 | 139,284 | |
Closing balance | 137,370 | 137,370 | |
Amortized contract cost asset amount | $ 23,321 | $ 34,900 | |
[1] | As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. | ||
[2] | The cumulative impact of the adoption of ASC 606 resulted in a $162,178 increase in "Contract cost assets," which includes the reclassification of $137,370 (refer to note (a) in the table above) and a closing balance of $24,808 related to sales incentive programs, with a corresponding impact on retained earnings of $19,173 and on deferred tax liabilities of $5,635 which has been offset against deferred tax assets. |
Cost of Revenue (Detail)
Cost of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | [1] | $ 462,898 | $ 414,508 | $ 907,222 | $ 797,845 |
Personnel expenses | |||||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | 322,799 | 284,557 | 632,931 | 553,746 | |
Operational expenses | |||||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | 127,109 | 119,589 | 248,466 | 222,305 | |
Depreciation and amortization | |||||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | $ 12,990 | $ 10,362 | $ 25,825 | $ 21,794 | |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Selling, General and Adminis122
Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Component Of Operating Other Cost And Expense [Line Items] | |||||||
Selling, general and administrative expenses | [1] | $ 176,166 | [2] | $ 167,758 | $ 347,275 | [3] | $ 328,616 |
Personnel expenses | |||||||
Component Of Operating Other Cost And Expense [Line Items] | |||||||
Selling, general and administrative expenses | 126,626 | 122,543 | 254,694 | 245,112 | |||
Operational expenses | |||||||
Component Of Operating Other Cost And Expense [Line Items] | |||||||
Selling, general and administrative expenses | 46,920 | 42,867 | 87,309 | 78,680 | |||
Depreciation and amortization | |||||||
Component Of Operating Other Cost And Expense [Line Items] | |||||||
Selling, general and administrative expenses | $ 2,620 | $ 2,348 | $ 5,272 | $ 4,824 | |||
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. | ||||||
[2] | During the three months ended June 30, 2018, the Company amortized $3,604 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $5,141, resulting in a net adjustment of $1,537 with a corresponding impact on income tax expense of $332. | ||||||
[3] | During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 with a corresponding impact on income tax expense of $332. |
Other Operating Income (Expense
Other Operating Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Other Income And Expenses [Abstract] | |||||
Other operating (income) expense | $ (51) | $ (2,628) | $ (286) | $ (7,028) | |
Provision for impairment of intangible assets and property, plant and equipment | 850 | 850 | |||
Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) | (650) | 1,713 | (633) | (1,425) | |
Other operating (income) expense, net | [1] | $ 149 | $ (915) | $ (69) | $ (8,453) |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Interest Income (Expense), N124
Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Other Income And Expenses [Abstract] | |||||
Interest income | $ 1,774 | $ 863 | $ 5,144 | $ 1,994 | |
Interest expense | (12,181) | (10,713) | (23,651) | (17,337) | |
Interest income (expense), net | [1] | $ (10,407) | $ (9,850) | $ (18,507) | $ (15,343) |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal corporate income tax rate | 21.00% | 35.00% | |
Tax gain relating to derivatives | $ 2,265 | ||
Excess tax benefits relating to exercise of stock awards recorded through retained earnings | $ 2,265 | ||
Unrecognized tax benefits | $ 24,436 | 26,060 | |
Unrecognized tax benefits that would impact effective tax rate | 23,254 | 24,877 | |
Unrecognized tax benefits, interest on income taxes accrued | 4,634 | 4,614 | |
Unrecognized tax benefits, excluding exchange rate differences for interest recognized | 345 | (224) | |
Accrued penalties | $ 951 | $ 1,033 |
Activities Related to Unrecogni
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Income Tax Uncertainties [Abstract] | |
Beginning balance | $ 26,060 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 231 |
Decrease related to prior year tax positions | (234) |
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (479) |
Effect of exchange rate changes | (1,142) |
Ending balance | $ 24,436 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Investment in equity affiliates | $ 834 | $ 834 | $ 886 | ||
Affiliate of Significant Shareholder | |||||
Related Party Transaction [Line Items] | |||||
Recognized net revenues | 135 | $ 104 | 439 | $ 187 | |
Non-Consolidating Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Recognized net revenues | 2,189 | 5,400 | |||
Cost of revenue | 258 | 335 | 449 | 909 | |
Selling, general and administrative expenses, net of recovery | 41 | 54 | 90 | 148 | |
Investment in equity affiliates | 496 | ||||
Charges to equity-method investment | 28 | 2,849 | |||
Investment in equity affiliates | 834 | 834 | $ 886 | ||
Cost reimbursements to non-consolidating affiliates | 239 | 477 | |||
Non-Consolidating Affiliates | U.K. | |||||
Related Party Transaction [Line Items] | |||||
Payment for affiliate under tax sharing arrangement | 2,540 | 3,847 | |||
Significant Shareholder of Company | |||||
Related Party Transaction [Line Items] | |||||
Selling, general and administrative expenses, net of recovery | $ 0 | $ 45 | $ 10 | $ 45 |
Other Income (Expense), net (De
Other Income (Expense), net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Other Nonoperating Income Expense [Abstract] | |||||
Government incentives | $ 10,196 | $ 11,882 | $ 25,696 | $ 11,882 | |
Other income/(expense) | (448) | (322) | (398) | 231 | |
Other Income (expense), net | [1] | $ 9,748 | $ 11,560 | $ 25,298 | $ 12,113 |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies [Line Items] | ||
Bank guarantees, outstanding | $ 9,686 | $ 8,879 |
Capital Addition Purchase Commitments | ||
Commitments And Contingencies [Line Items] | ||
Commitments and contingencies | $ 15,636 | $ 8,314 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Aug. 09, 2018 | Jul. 25, 2018 | Jul. 16, 2018 | Feb. 12, 2018 | Feb. 28, 2017 | Jun. 30, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||||||
Business combination cash consideration | $ 728,000 | $ 207,181,000 | |||||||
Dividend declared | $ 0.075 | $ 0.075 | $ 0.06 | $ 0.06 | |||||
Dividend payment date | Sep. 19, 2018 | ||||||||
Dividends payable, date of record | Sep. 10, 2018 | ||||||||
Margin over LIBOR | 1.50% | 1.50% | 1.50% | ||||||
New Credit Facility | |||||||||
Subsequent Event [Line Items] | |||||||||
Margin over LIBOR | 1.50% | ||||||||
Credit facility, base rate | 0.50% | ||||||||
Subsequent Event | New Credit Facility | |||||||||
Subsequent Event [Line Items] | |||||||||
Margin over LIBOR | 1.375% | ||||||||
Credit facility, base rate | 0.375% | ||||||||
Subsequent Event | Term Loan Credit Facility | New Credit Facility | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from refinance of credit facility | $ 680,000,000 | ||||||||
Refinance of credit facility term | 5 years | ||||||||
Subsequent Event | Revolving Credit Facility | New Credit Facility | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from refinance of credit facility | $ 500,000,000 | ||||||||
Refinance of credit facility term | 5 years | ||||||||
Subsequent Event | Revolving Credit Facility | Old Credit Facility | |||||||||
Subsequent Event [Line Items] | |||||||||
Repayment of outstanding borrowings | $ 910,000 | ||||||||
Barkawi | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Business combination cash consideration | $ 100,090,000 |
Guarantor Financial Informat131
Guarantor Financial Information - Additional Information (Detail) - Genpact Luxembourg S.à r.l. - 3.70% Senior Notes | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
Principal amount of senior notes issued | $ 350,000,000 |
Interest rate on senior notes | 3.70% |
Guarantor Financial Informat132
Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
Current assets | ||||||
Cash and cash equivalents | $ 333,903 | $ 504,468 | $ 441,064 | $ 422,623 | ||
Accounts receivable, net | 691,347 | 693,085 | ||||
Prepaid expenses and other current assets | 207,334 | [1],[2] | 236,342 | |||
Total current assets | 1,232,584 | 1,433,895 | ||||
Property, plant and equipment, Net | 202,669 | 207,030 | ||||
Deferred tax assets | 88,278 | [3] | 76,929 | |||
Investment in equity affiliates | 834 | 886 | ||||
Intangible assets, net | 120,624 | 131,590 | ||||
Goodwill | 1,311,361 | 1,337,122 | 1,069,408 | |||
Contract cost assets | [2],[3] | 162,178 | ||||
Other assets | 147,550 | [1],[2] | 262,169 | |||
Total assets | 3,266,078 | 3,449,621 | ||||
Current liabilities | ||||||
Short-term borrowings | 215,000 | 170,000 | ||||
Current portion of long-term debt | 39,249 | 39,226 | ||||
Accounts payable | 20,942 | 15,050 | ||||
Income taxes payable | 54,513 | 30,026 | ||||
Accrued expenses and other current liabilities | 483,241 | [1] | 584,482 | |||
Total current liabilities | 812,945 | 838,784 | ||||
Long-term debt, less current portion | 987,314 | 1,006,687 | ||||
Deferred tax liabilities | 7,036 | 6,747 | ||||
Other liabilities | 162,358 | [1] | 168,609 | |||
Total liabilities | 1,969,653 | 2,020,827 | ||||
Redeemable non-controlling interest | 4,750 | |||||
Shareholders' equity | ||||||
Common stock | 1,895 | 1,924 | ||||
Additional paid-in capital | 1,438,072 | 1,421,368 | ||||
Retained earnings | 338,120 | [3] | 355,982 | |||
Accumulated other comprehensive income (loss) | (481,662) | (355,230) | ||||
Total equity | 1,296,425 | 1,424,044 | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | 3,266,078 | 3,449,621 | ||||
Eliminations | ||||||
Current assets | ||||||
Accounts receivable intercompany, net | (88,551) | (82,935) | ||||
Intercompany loans | (2,038,231) | (1,815,391) | ||||
Intercompany other receivable | (203,384) | (197,163) | ||||
Total current assets | (2,330,166) | (2,095,489) | ||||
Intercompany loans | (500,000) | (500,000) | ||||
Investment in subsidiaries | (3,810,262) | (3,819,975) | ||||
Investment in debentures, intercompany | (582,845) | (717,909) | ||||
Intercompany other receivable | (60,391) | (49,761) | ||||
Total assets | (7,283,664) | (7,183,134) | ||||
Current liabilities | ||||||
Intercompany loans | (2,038,231) | (1,815,391) | ||||
Intercompany accounts payable | (88,551) | (82,935) | ||||
Intercompany other payable | (203,384) | (197,163) | ||||
Total current liabilities | (2,330,166) | (2,095,489) | ||||
Intercompany other payable | (60,391) | (49,761) | ||||
Non-current intercompany loans payable | (1,082,848) | (1,217,909) | ||||
Total liabilities | (3,473,405) | (3,363,159) | ||||
Shareholders' equity | ||||||
Common stock | (190,027) | (189,649) | ||||
Additional paid-in capital | (1,685,307) | (1,683,259) | ||||
Retained earnings | (2,491,068) | (2,409,059) | ||||
Accumulated other comprehensive income (loss) | 556,143 | 461,992 | ||||
Total equity | (3,810,259) | (3,819,975) | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | (7,283,664) | (7,183,134) | ||||
Issuer/Subsidiary | ||||||
Current assets | ||||||
Cash and cash equivalents | 4,326 | 4,507 | 9,864 | 11,215 | ||
Issuer/Subsidiary | Reportable Legal Entities | ||||||
Current assets | ||||||
Cash and cash equivalents | 4,326 | 4,507 | ||||
Accounts receivable intercompany, net | 88,551 | 82,935 | ||||
Intercompany loans | 323,168 | 194,854 | ||||
Intercompany other receivable | 10,106 | 25,343 | ||||
Prepaid expenses and other current assets | 311 | |||||
Total current assets | 426,151 | 307,950 | ||||
Property, plant and equipment, Net | 313 | 391 | ||||
Investment in subsidiaries | 402,500 | 426,410 | ||||
Investment in debentures, intercompany | 582,845 | 717,909 | ||||
Total assets | 1,411,809 | 1,452,660 | ||||
Current liabilities | ||||||
Intercompany loans | 16,026 | 38,000 | ||||
Accounts payable | 81 | 103 | ||||
Income taxes payable | 692 | 885 | ||||
Intercompany other payable | 31,257 | 29,526 | ||||
Accrued expenses and other current liabilities | 7,765 | 5,995 | ||||
Total current liabilities | 55,821 | 74,509 | ||||
Long-term debt, less current portion | 348,022 | 347,761 | ||||
Non-current intercompany loans payable | 500,000 | 500,000 | ||||
Other liabilities | 336 | 1,211 | ||||
Total liabilities | 904,179 | 923,481 | ||||
Shareholders' equity | ||||||
Common stock | 28 | |||||
Additional paid-in capital | 574,698 | 575,890 | ||||
Retained earnings | 65,278 | (12,277) | ||||
Accumulated other comprehensive income (loss) | (132,374) | (34,434) | ||||
Total equity | 507,630 | 529,179 | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | 1,411,809 | 1,452,660 | ||||
Parent/Guarantor | ||||||
Current assets | ||||||
Cash and cash equivalents | 576 | 2,136 | 5,834 | 7,849 | ||
Parent/Guarantor | Reportable Legal Entities | ||||||
Current assets | ||||||
Cash and cash equivalents | 576 | 2,136 | ||||
Intercompany loans | 1,000 | |||||
Intercompany other receivable | 86,960 | 82,631 | ||||
Prepaid expenses and other current assets | 2,003 | 1,276 | ||||
Total current assets | 90,539 | 86,043 | ||||
Investment in subsidiaries | 2,900,132 | 2,864,386 | ||||
Intercompany other receivable | 60,391 | 49,761 | ||||
Total assets | 3,051,062 | 3,000,190 | ||||
Current liabilities | ||||||
Intercompany loans | 1,758,537 | 1,597,537 | ||||
Accounts payable | 11 | 58 | ||||
Income taxes payable | (377) | |||||
Intercompany other payable | 75,209 | 59,266 | ||||
Accrued expenses and other current liabilities | 4,353 | 2,390 | ||||
Total current liabilities | 1,837,733 | 1,659,251 | ||||
Other liabilities | 151 | 153 | ||||
Total liabilities | 1,837,884 | 1,659,404 | ||||
Shareholders' equity | ||||||
Common stock | 1,894 | 1,924 | ||||
Additional paid-in capital | 1,438,071 | 1,421,354 | ||||
Retained earnings | 254,875 | 272,738 | ||||
Accumulated other comprehensive income (loss) | (481,662) | (355,230) | ||||
Total equity | 1,213,178 | 1,340,786 | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | 3,051,062 | 3,000,190 | ||||
Non-Guarantor Subsidiaries | ||||||
Current assets | ||||||
Cash and cash equivalents | 329,001 | 497,825 | $ 425,366 | $ 403,559 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||
Current assets | ||||||
Cash and cash equivalents | 329,001 | 497,825 | ||||
Accounts receivable, net | 691,347 | 693,085 | ||||
Intercompany loans | 1,714,063 | 1,620,537 | ||||
Intercompany other receivable | 106,318 | 89,189 | ||||
Prepaid expenses and other current assets | 205,331 | 234,755 | ||||
Total current assets | 3,046,060 | 3,135,391 | ||||
Property, plant and equipment, Net | 202,356 | 206,639 | ||||
Intercompany loans | 500,000 | 500,000 | ||||
Deferred tax assets | 88,278 | 76,929 | ||||
Investment in subsidiaries | 507,630 | 529,179 | ||||
Investment in equity affiliates | 834 | 886 | ||||
Intangible assets, net | 120,624 | 131,590 | ||||
Goodwill | 1,311,361 | 1,337,122 | ||||
Contract cost assets | 162,178 | |||||
Other assets | 147,550 | 262,169 | ||||
Total assets | 6,086,871 | 6,179,905 | ||||
Current liabilities | ||||||
Short-term borrowings | 215,000 | 170,000 | ||||
Intercompany loans | 263,668 | 179,854 | ||||
Current portion of long-term debt | 39,249 | 39,226 | ||||
Accounts payable | 20,850 | 14,889 | ||||
Intercompany accounts payable | 88,551 | 82,935 | ||||
Income taxes payable | 54,198 | 29,141 | ||||
Intercompany other payable | 96,918 | 108,371 | ||||
Accrued expenses and other current liabilities | 471,123 | 576,097 | ||||
Total current liabilities | 1,249,557 | 1,200,513 | ||||
Long-term debt, less current portion | 639,292 | 658,926 | ||||
Deferred tax liabilities | 7,036 | 6,747 | ||||
Intercompany other payable | 60,391 | 49,761 | ||||
Non-current intercompany loans payable | 582,848 | 717,909 | ||||
Other liabilities | 161,871 | 167,245 | ||||
Total liabilities | 2,700,995 | 2,801,101 | ||||
Redeemable non-controlling interest | 4,750 | |||||
Shareholders' equity | ||||||
Common stock | 190,000 | 189,649 | ||||
Additional paid-in capital | 1,110,610 | 1,107,383 | ||||
Retained earnings | 2,509,035 | 2,504,580 | ||||
Accumulated other comprehensive income (loss) | (423,769) | (427,558) | ||||
Total equity | 3,385,876 | 3,374,054 | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | $ 6,086,871 | $ 6,179,905 | ||||
[1] | As a result of its adoption of ASC 606, the Company has offset (i) contract assets amounting to $10,996 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 $12,739 under “Other assets” against contract liabilities under “Other liabilities” related to the same customer contract. | |||||
[2] | As a result of its adoption of ASC 606, the Company has reclassified deferred transition costs from “Prepaid expenses and other current assets” amounting to $68,781 and “Other assets” amounting to $68,589 to “Contract cost assets” amounting to $137,370. | |||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in a $162,178 increase in "Contract cost assets," which includes the reclassification of $137,370 (refer to note (a) in the table above) and a closing balance of $24,808 related to sales incentive programs, with a corresponding impact on retained earnings of $19,173 and on deferred tax liabilities of $5,635 which has been offset against deferred tax assets. |
Guarantor Financial Informat133
Guarantor Financial Information - Condensed Consolidating Statement of Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Net revenues | [1] | $ 728,561 | $ 670,697 | $ 1,417,473 | $ 1,293,692 | ||
Cost of revenue | [1] | 462,898 | 414,508 | 907,222 | 797,845 | ||
Gross profit | [1] | 265,663 | 256,189 | 510,251 | 495,847 | ||
Operating expenses: | |||||||
Selling, general and administrative expenses | [1] | 176,166 | [2] | 167,758 | 347,275 | [3] | 328,616 |
Amortization of acquired intangible assets | [1] | 9,826 | 8,387 | 19,762 | 15,629 | ||
Other operating (income) expense, net | [1] | 149 | (915) | (69) | (8,453) | ||
Income from operations | [1] | 79,522 | 80,959 | 143,283 | 160,055 | ||
Foreign exchange gains (losses), net | [1] | 2,805 | 1,913 | 7,603 | (3,000) | ||
Interest income (expense), net | [1] | (10,407) | (9,850) | (18,507) | (15,343) | ||
Other income (expense), net | [1] | 9,748 | 11,560 | 25,298 | 12,113 | ||
Income before equity-method investment activity, net and income tax expense | [1] | 81,668 | 84,582 | 157,677 | 153,825 | ||
Gain (loss) on equity-method investment activity, net | [1] | (15) | (9) | (15) | (4,567) | ||
Income before income tax expense | [1] | 81,653 | 84,573 | 157,662 | 149,258 | ||
Income tax expense | [1] | 17,079 | 15,471 | 29,154 | 27,716 | ||
Net income | [1] | 64,574 | 69,102 | 128,508 | 121,542 | ||
Net loss attributable to redeemable non-controlling interest | [1] | (156) | 761 | 742 | |||
Net income attributable to Genpact Limited shareholders | [1] | 64,574 | 68,946 | 129,269 | 122,284 | ||
Eliminations | |||||||
Net revenues | (14,582) | (15,164) | (24,058) | (22,726) | |||
Gross profit | (14,582) | (15,164) | (24,058) | (22,726) | |||
Operating expenses: | |||||||
Selling, general and administrative expenses | (14,582) | (15,164) | (24,124) | (22,726) | |||
Income from operations | 66 | ||||||
Income before equity-method investment activity, net and income tax expense | 66 | ||||||
Gain (loss) on equity-method investment activity, net | (110,221) | (121,925) | (220,922) | (219,744) | |||
Income before income tax expense | (110,221) | (121,925) | (220,856) | (219,744) | |||
Net income | (110,221) | (121,925) | (220,856) | (219,744) | |||
Net income attributable to Genpact Limited shareholders | (110,221) | (121,925) | (220,856) | (219,744) | |||
Issuer/Subsidiary | |||||||
Net revenues | 12,119 | 15,164 | 24,058 | 22,726 | |||
Cost of revenue | 116 | 116 | |||||
Gross profit | 12,119 | 15,048 | 24,058 | 22,610 | |||
Operating expenses: | |||||||
Selling, general and administrative expenses | 2,378 | 3,009 | 4,001 | 4,150 | |||
Amortization of acquired intangible assets | 48 | 48 | |||||
Other operating (income) expense, net | 1,997 | 17 | (1,141) | ||||
Income from operations | 9,693 | 10,042 | 19,992 | 19,601 | |||
Foreign exchange gains (losses), net | 208 | 1,412 | 1,161 | 3,028 | |||
Interest income (expense), net | (3,489) | (3,762) | (6,978) | 14,175 | |||
Intercompany interest income (expense), net | 19,583 | 24,586 | 40,125 | 26,833 | |||
Income before equity-method investment activity, net and income tax expense | 25,995 | 32,278 | 54,300 | 63,637 | |||
Gain (loss) on equity-method investment activity, net | 3,588 | 5,982 | 11,030 | 7,961 | |||
Income before income tax expense | 29,583 | 38,260 | 65,330 | 71,598 | |||
Income tax expense | 1,596 | 1,842 | 3,287 | 3,325 | |||
Net income | 27,987 | 36,418 | 62,043 | 68,273 | |||
Net income attributable to Genpact Limited shareholders | 27,987 | 36,418 | 62,043 | 68,273 | |||
Parent Company | |||||||
Cost of revenue | 1,476 | 1,476 | |||||
Gross profit | (1,476) | (1,476) | |||||
Operating expenses: | |||||||
Selling, general and administrative expenses | 10,270 | 6,622 | 11,762 | 10,411 | |||
Income from operations | (10,270) | (8,098) | (11,762) | (11,887) | |||
Foreign exchange gains (losses), net | 281 | 502 | (5) | ||||
Intercompany interest income (expense), net | (4,068) | (2,472) | (7,303) | (4,769) | |||
Income before equity-method investment activity, net and income tax expense | (14,057) | (10,570) | (18,563) | (16,661) | |||
Gain (loss) on equity-method investment activity, net | 78,631 | 79,516 | 147,832 | 138,944 | |||
Income before income tax expense | 64,574 | 68,946 | 129,269 | 122,283 | |||
Net income | 64,574 | 68,946 | 129,269 | 122,283 | |||
Net income attributable to Genpact Limited shareholders | 64,574 | 68,946 | 129,269 | 122,283 | |||
Non-Guarantor Subsidiaries | |||||||
Net revenues | 731,024 | 670,697 | 1,417,473 | 1,293,692 | |||
Cost of revenue | 462,898 | 412,916 | 907,222 | 796,253 | |||
Gross profit | 268,126 | 257,781 | 510,251 | 497,439 | |||
Operating expenses: | |||||||
Selling, general and administrative expenses | 178,100 | 173,291 | 355,636 | 336,781 | |||
Amortization of acquired intangible assets | 9,778 | 8,387 | 19,714 | 15,629 | |||
Other operating (income) expense, net | 149 | (2,912) | (86) | (7,312) | |||
Income from operations | 80,099 | 79,015 | 134,987 | 152,341 | |||
Foreign exchange gains (losses), net | 2,316 | 501 | 5,940 | (6,023) | |||
Interest income (expense), net | (6,918) | (6,088) | (11,529) | (29,518) | |||
Intercompany interest income (expense), net | (15,515) | (22,114) | (32,822) | (22,064) | |||
Other income (expense), net | 9,748 | 11,560 | 25,298 | 12,113 | |||
Income before equity-method investment activity, net and income tax expense | 69,730 | 62,874 | 121,874 | 106,849 | |||
Gain (loss) on equity-method investment activity, net | 27,987 | 36,418 | 62,045 | 68,272 | |||
Income before income tax expense | 97,717 | 99,292 | 183,919 | 175,121 | |||
Income tax expense | 15,483 | 13,629 | 25,867 | 24,391 | |||
Net income | 82,234 | 85,663 | 158,052 | 150,730 | |||
Net loss attributable to redeemable non-controlling interest | (156) | 761 | 742 | ||||
Net income attributable to Genpact Limited shareholders | $ 82,234 | $ 85,507 | $ 158,813 | $ 151,472 | |||
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. | ||||||
[2] | During the three months ended June 30, 2018, the Company amortized $3,604 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $5,141, resulting in a net adjustment of $1,537 with a corresponding impact on income tax expense of $332. | ||||||
[3] | During the six months ended June 30, 2018, the Company amortized $6,843 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $8,424, resulting in a net adjustment of $1,581 with a corresponding impact on income tax expense of $332. |
Guarantor Financial Informat134
Guarantor Financial Information - Condensed Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Net income (loss) | [1] | $ 64,574 | $ 69,102 | $ 128,508 | $ 121,542 |
Other comprehensive income: | |||||
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (27,879) | (9,611) | (46,811) | 9,247 | |
Genpact Limited Shareholders | |||||
Net income (loss) | 64,574 | 68,946 | 129,269 | 122,284 | |
Other comprehensive income: | |||||
Currency translation adjustments | (73,681) | 20,085 | (83,016) | 71,712 | |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (27,879) | (9,611) | (46,811) | 9,247 | |
Retirement benefits, net of taxes | 617 | 223 | 1,130 | 342 | |
Other comprehensive income (loss) | (100,943) | 10,697 | (128,697) | 81,301 | |
Comprehensive income (loss) | (36,369) | 79,643 | 572 | 203,585 | |
Redeemable Non-controlling interest | |||||
Net income (loss) | 156 | (761) | (742) | ||
Other comprehensive income: | |||||
Currency translation adjustments | (66) | (424) | (78) | ||
Other comprehensive income (loss) | (66) | (424) | (78) | ||
Comprehensive income (loss) | 90 | (1,185) | (820) | ||
Eliminations | |||||
Net income (loss) | (110,221) | (121,925) | (220,856) | (219,744) | |
Eliminations | Genpact Limited Shareholders | |||||
Net income (loss) | (110,221) | (121,925) | (220,857) | (219,740) | |
Other comprehensive income: | |||||
Currency translation adjustments | 121,038 | (36,642) | 136,725 | (131,815) | |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | 52,858 | 20,644 | 87,471 | (18,621) | |
Retirement benefits, net of taxes | 14 | (223) | (579) | (412) | |
Other comprehensive income (loss) | 173,910 | (16,221) | 223,617 | (150,848) | |
Comprehensive income (loss) | 63,689 | (138,146) | 2,760 | (370,588) | |
Issuer/Subsidiary | |||||
Net income (loss) | 27,987 | 36,418 | 62,043 | 68,273 | |
Issuer/Subsidiary | Genpact Limited Shareholders | |||||
Net income (loss) | 27,987 | 36,418 | 62,045 | 68,272 | |
Other comprehensive income: | |||||
Currency translation adjustments | (47,357) | 16,557 | (53,709) | 60,103 | |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (26,429) | (11,033) | (42,110) | 9,374 | |
Retirement benefits, net of taxes | (7) | 73 | 70 | ||
Other comprehensive income (loss) | (73,793) | 5,524 | (95,746) | 69,547 | |
Comprehensive income (loss) | (45,806) | 41,942 | (33,701) | 137,819 | |
Parent Company | |||||
Net income (loss) | 64,574 | 68,946 | 129,269 | 122,283 | |
Parent Company | Genpact Limited Shareholders | |||||
Net income (loss) | 64,574 | 68,946 | 129,269 | 122,284 | |
Other comprehensive income: | |||||
Currency translation adjustments | (73,681) | 20,085 | (83,016) | 71,712 | |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (27,879) | (9,611) | (46,811) | 9,247 | |
Retirement benefits, net of taxes | 617 | 223 | 1,130 | 342 | |
Other comprehensive income (loss) | (100,943) | 10,697 | (128,697) | 81,301 | |
Comprehensive income (loss) | (36,369) | 79,643 | 572 | 203,585 | |
Non-Guarantor Subsidiaries | |||||
Net income (loss) | 82,234 | 85,663 | 158,052 | 150,730 | |
Non-Guarantor Subsidiaries | Genpact Limited Shareholders | |||||
Net income (loss) | 82,234 | 85,507 | 158,812 | 151,468 | |
Other comprehensive income: | |||||
Currency translation adjustments | (73,681) | 20,085 | (83,016) | 71,712 | |
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) | (26,429) | (9,611) | (45,361) | 9,247 | |
Retirement benefits, net of taxes | (7) | 223 | 506 | 342 | |
Other comprehensive income (loss) | (100,117) | 10,697 | (127,871) | 81,301 | |
Comprehensive income (loss) | $ (17,883) | $ 96,204 | $ 30,941 | $ 232,769 | |
[1] | Cost of revenue, selling and administrative expenses, other income (expense) and income from operations for the three and six months ended June 30, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. |
Guarantor Financial Informat135
Guarantor Financial Information - Condensed Consolidating Cash Flow (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Operating activities | |||
Net cash (used for) provided by operating activities | $ 49,484 | $ 115,324 | |
Investing activities | |||
Purchase of property, plant and equipment | (37,703) | (29,350) | |
Payment for internally generated intangible assets (including intangibles under development) | (11,544) | (8,950) | |
Proceeds from sale of property, plant and equipment | 309 | 566 | |
Investment in equity affiliates | (496) | ||
Payment for business acquisitions, net of cash acquired | (728) | (207,181) | |
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Net cash used for investing activities | (54,396) | (245,411) | |
Financing activities | |||
Repayment of capital lease obligations | (1,108) | (1,106) | |
Payment of debt issuance costs | (1,481) | ||
Proceeds from long-term debt | 350,000 | ||
Repayment of long-term debt | (20,000) | (20,000) | |
Proceeds from short-term borrowings | 105,000 | 230,000 | |
Repayment of short-term borrowings | (60,000) | (185,000) | |
Proceeds from issuance of common shares under stock-based compensation plans | 9,388 | 10,080 | |
Payment for net settlement of stock-based awards | (14,229) | (9,949) | |
Payment of earn-out/deferred consideration | (1,476) | (1,287) | |
Dividend paid | (28,648) | (23,515) | |
Payment for stock repurchased and retired | (130,103) | (219,784) | |
Payment for expenses related to stock repurchase | (82) | (16) | |
Net cash provided by/(used for) financing activities | (141,258) | 127,942 | |
Effect of exchange rate changes | (24,395) | 20,586 | |
Net increase (decrease) in cash and cash equivalents | (146,170) | (2,145) | |
Cash and cash equivalents at the beginning of the period | 504,468 | 422,623 | $ 422,623 |
Cash and cash equivalents at the end of the period | 333,903 | 441,064 | 504,468 |
Eliminations | |||
Operating activities | |||
Net cash (used for) provided by operating activities | 222,903 | 597,248 | |
Investing activities | |||
Investment in subsidiaries | (63) | ||
Proceeds from redemption of debentures, intercompany | (91,761) | ||
Net cash used for investing activities | (91,824) | ||
Financing activities | |||
Proceeds from intercompany loans | (415,157) | (806,363) | |
Repayment of intercompany loans | 192,317 | 209,115 | |
Payment for redemption of debentures, intercompany | 91,761 | ||
Net cash provided by/(used for) financing activities | (131,079) | (597,248) | |
Issuer/Subsidiary | |||
Operating activities | |||
Net cash (used for) provided by operating activities | (64,501) | (331,065) | |
Investing activities | |||
Investment in subsidiaries | (2,000) | ||
Proceeds from redemption of debentures, intercompany | 91,761 | ||
Net cash used for investing activities | 89,761 | ||
Financing activities | |||
Payment of debt issuance costs | (1,481) | ||
Proceeds from long-term debt | 350,000 | ||
Proceeds from intercompany loans | 32,000 | 10,000 | |
Repayment of intercompany loans | (53,978) | (29,615) | |
Net cash provided by/(used for) financing activities | (21,978) | 328,904 | |
Effect of exchange rate changes | (3,463) | 810 | |
Net increase (decrease) in cash and cash equivalents | 3,282 | (2,161) | |
Cash and cash equivalents at the beginning of the period | 4,507 | 11,215 | 11,215 |
Cash and cash equivalents at the end of the period | 4,326 | 9,864 | 4,507 |
Parent Company | |||
Operating activities | |||
Net cash (used for) provided by operating activities | 1,114 | (8,331) | |
Financing activities | |||
Proceeds from intercompany loans | 212,500 | 249,500 | |
Repayment of intercompany loans | (51,500) | ||
Proceeds from issuance of common shares under stock-based compensation plans | 9,388 | 10,080 | |
Payment for net settlement of stock-based awards | (14,229) | (9,949) | |
Dividend paid | (28,648) | (23,515) | |
Payment for stock repurchased and retired | (130,103) | (219,784) | |
Payment for expenses related to stock repurchase | (82) | (16) | |
Net cash provided by/(used for) financing activities | (2,674) | 6,316 | |
Net increase (decrease) in cash and cash equivalents | (1,560) | (2,015) | |
Cash and cash equivalents at the beginning of the period | 2,136 | 7,849 | 7,849 |
Cash and cash equivalents at the end of the period | 576 | 5,834 | 2,136 |
Non-Guarantor Subsidiaries | |||
Operating activities | |||
Net cash (used for) provided by operating activities | (110,032) | (142,528) | |
Investing activities | |||
Purchase of property, plant and equipment | (37,703) | (29,350) | |
Payment for internally generated intangible assets (including intangibles under development) | (11,544) | (8,950) | |
Proceeds from sale of property, plant and equipment | 309 | 566 | |
Investment in equity affiliates | (496) | ||
Investment in subsidiaries | 2,063 | ||
Payment for business acquisitions, net of cash acquired | (728) | (207,181) | |
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Net cash used for investing activities | (52,333) | (245,411) | |
Financing activities | |||
Repayment of capital lease obligations | (1,108) | (1,106) | |
Repayment of long-term debt | (20,000) | (20,000) | |
Proceeds from short-term borrowings | 105,000 | 230,000 | |
Repayment of short-term borrowings | (60,000) | (185,000) | |
Proceeds from intercompany loans | 170,657 | 546,863 | |
Repayment of intercompany loans | (86,839) | (179,500) | |
Payment of earn-out/deferred consideration | (1,476) | (1,287) | |
Payment for redemption of debentures, intercompany | (91,761) | ||
Net cash provided by/(used for) financing activities | 14,473 | 389,970 | |
Effect of exchange rate changes | (20,932) | 19,776 | |
Net increase (decrease) in cash and cash equivalents | (147,892) | 2,031 | |
Cash and cash equivalents at the beginning of the period | 497,825 | 403,559 | 403,559 |
Cash and cash equivalents at the end of the period | $ 329,001 | $ 425,366 | $ 497,825 |