Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | G | ||
Entity Registrant Name | GENPACT LTD | ||
Entity Central Index Key | 1,398,659 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 189,456,783 | ||
Entity Public Float | $ 4,301,213,430 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Current assets | ||||||
Cash and cash equivalents | $ 368,396 | $ 504,468 | $ 422,623 | $ 450,907 | ||
Accounts receivable, net | 774,184 | 693,085 | ||||
Prepaid expenses and other current assets | 212,477 | [1],[2] | 236,342 | |||
Total current assets | 1,355,057 | 1,433,895 | ||||
Property, plant and equipment, net | 212,715 | 207,030 | ||||
Deferred tax assets | 74,566 | [3] | 76,929 | |||
Investment in equity affiliates | 836 | 886 | ||||
Intangible assets, net | 177,087 | 131,590 | ||||
Goodwill | 1,393,832 | 1,337,122 | 1,069,408 | |||
Contract cost assets | [1],[3] | 160,193 | ||||
Other assets | 155,159 | [1],[2] | 262,169 | |||
Total assets | 3,529,445 | 3,449,621 | ||||
Current liabilities | ||||||
Short-term borrowings | 295,000 | 170,000 | ||||
Current portion of long-term debt | 33,483 | 39,226 | ||||
Accounts payable | 42,584 | 15,050 | ||||
Income taxes payable | 33,895 | 30,026 | ||||
Accrued expenses and other current liabilities | 571,350 | [2] | 584,482 | |||
Total current liabilities | 976,312 | 838,784 | ||||
Long-term debt, less current portion | 975,645 | 1,006,687 | ||||
Deferred tax liabilities | 8,080 | 6,747 | ||||
Other liabilities | 165,226 | [2] | 168,609 | |||
Total liabilities | 2,125,263 | 2,020,827 | ||||
Redeemable non-controlling interest | 4,750 | 4,520 | ||||
Shareholders' equity | ||||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | ||||||
Common shares, $0.01 par value, 500,000,000 authorized, 192,825,207 and 189,346,101 issued and outstanding as of December 31, 2017 and December 31, 2018, respectively | 1,888 | 1,924 | ||||
Additional paid-in capital | 1,471,301 | 1,421,368 | ||||
Retained earnings | 438,453 | [3] | 355,982 | |||
Accumulated other comprehensive income (loss) | (507,460) | (355,230) | ||||
Total equity | 1,404,182 | 1,424,044 | $ 1,286,648 | $ 1,304,356 | ||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | $ 3,529,445 | $ 3,449,621 | ||||
[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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. | |||||
[2] | As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. | |||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 which has been offset against deferred tax assets. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 250,000,000 | 250,000,000 |
Preferred shares, issued | 0 | 0 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, authorized | 500,000,000 | 500,000,000 |
Common shares, issued | 189,346,101 | 192,825,207 |
Common shares, outstanding | 189,346,101 | 192,825,207 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | ||
Income Statement [Abstract] | ||||||||||||||
Net revenues | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 3,000,790 | $ 2,736,929 | $ 2,570,756 | |||
Cost of revenue | 1,921,768 | 1,681,438 | 1,554,340 | |||||||||||
Gross profit | 302,205 | 266,566 | 265,663 | 244,588 | 279,610 | 280,034 | 256,189 | 239,658 | 1,079,022 | 1,055,491 | 1,016,416 | |||
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses | 693,865 | [2] | 689,461 | 652,967 | ||||||||||
Amortization of acquired intangible assets | 38,850 | 36,412 | 27,183 | |||||||||||
Other operating (income) expense, net | (1,845) | (1,661) | (4,940) | |||||||||||
Income from operations | 110,841 | 94,028 | 79,522 | 63,761 | 73,305 | 97,919 | 80,959 | 79,096 | 348,152 | 331,279 | 341,206 | |||
Foreign exchange gains (losses), net | 15,239 | 1,996 | 2,630 | |||||||||||
Interest income (expense), net | (37,119) | (31,735) | (16,184) | |||||||||||
Other income (expense), net | 35,761 | 23,586 | 9,691 | |||||||||||
Income before equity-method investment activity, net and income tax expense | 106,632 | 97,724 | 81,668 | 76,009 | 81,559 | 89,742 | 84,582 | 69,243 | 362,033 | 325,126 | 337,343 | |||
Equity-method investment activity, net | (12) | (4,543) | (7,698) | |||||||||||
Income before income tax expense | 362,021 | 320,583 | 329,645 | |||||||||||
Income tax expense | 80,763 | 59,742 | 62,098 | |||||||||||
Net income | 79,147 | 73,603 | 64,574 | 63,934 | 66,138 | 73,161 | 69,102 | 52,440 | 281,258 | 260,841 | 267,547 | |||
Net loss attributable to redeemable non-controlling interest | 761 | 944 | 584 | (156) | 898 | 761 | 2,270 | 2,137 | ||||||
Net income attributable to Genpact Limited shareholders | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | 282,019 | 263,111 | 269,684 | |||
Net income available to Genpact Limited common shareholders | $ 282,019 | $ 263,111 | $ 269,684 | |||||||||||
Earnings per common share attributable to Genpact Limited common shareholders | ||||||||||||||
Basic | $ 0.42 | $ 0.39 | $ 0.34 | $ 0.34 | $ 0.35 | $ 0.38 | $ 0.36 | $ 0.27 | $ 1.48 | $ 1.36 | $ 1.30 | |||
Diluted | $ 0.41 | $ 0.38 | $ 0.33 | $ 0.33 | $ 0.34 | $ 0.38 | $ 0.36 | $ 0.26 | $ 1.45 | $ 1.34 | $ 1.28 | |||
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | ||||||||||||||
Basic | 189,724,744 | 190,024,924 | 190,132,664 | 192,816,626 | 192,795,534 | 192,124,366 | 191,469,593 | 199,069,528 | 190,674,740 | 193,864,755 | 206,861,536 | |||
Diluted | 193,149,836 | 193,115,769 | 193,365,974 | 196,288,569 | 196,862,168 | 194,947,699 | 193,732,406 | 202,655,937 | 193,980,038 | 197,049,552 | 210,126,023 | |||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. | |||||||||||||
[2] | During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452 resulting in a net adjustment of $2,664 with a corresponding impact on income tax benefit of $681. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||||
Net income (loss) | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | $ 282,019 | $ 263,111 | [1] | $ 269,684 | [1] |
Other comprehensive income: | |||||||||||||
Currency translation adjustments | (109,656) | 93,871 | (46,340) | ||||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes | (46,293) | 12,611 | 43,742 | ||||||||||
Retirement benefits, net of taxes | 1,454 | (3,787) | (4,042) | ||||||||||
Other comprehensive income (loss) | (154,495) | 102,695 | (6,640) | ||||||||||
Comprehensive income (loss) | 127,524 | 365,806 | 263,044 | ||||||||||
Redeemable non-controlling interest, Net income (loss) | $ (761) | $ (944) | $ (584) | $ 156 | $ (898) | (761) | (2,270) | [1] | (2,137) | [1] | |||
Redeemable non-controlling interest, Other comprehensive income: | |||||||||||||
Redeemable non-controlling interest, Currency translation adjustments | (424) | (341) | 104 | ||||||||||
Redeemable non-controlling interest, Other comprehensive income (loss) | (424) | (341) | 104 | ||||||||||
Redeemable non-controlling interest, Comprehensive income (loss) | $ (1,185) | $ (2,611) | $ (2,033) | ||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
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) | ||
Beginning balance, value at Dec. 31, 2015 | $ 1,304,356 | $ 2,111 | $ 1,342,022 | $ 411,508 | $ (451,285) | ||
Beginning balance, value (in shares) at Dec. 31, 2015 | 211,472,312 | ||||||
Issuance of common shares on exercise of options | $ 14,896 | $ 10 | 14,886 | ||||
Issuance of common shares on exercise of options (in shares) | 994,155 | 994,155 | |||||
Issuance of common shares under the employee stock purchase plan | $ 3,332 | $ 1 | 3,331 | ||||
Issuance of common shares under the employee stock purchase plan (in shares) | 146,685 | ||||||
Net settlement on vesting of restricted share units | (883) | $ 1 | (884) | ||||
Net settlement on vesting of restricted share units (in shares) | 121,682 | ||||||
Stock repurchased and retired | (345,200) | $ (139) | (345,061) | ||||
Stock repurchased and retired (in shares) | (13,940,782) | ||||||
Deferred tax assets recognized on early adoption of ASU 2016-09 | 24,912 | 24,912 | |||||
Expenses related to stock repurchase | (279) | (279) | |||||
Stock-based compensation expense | 25,113 | 25,113 | |||||
Acquisition of redeemable non controlling interest | 3,910 | ||||||
Change in fair value of redeemable non-controlling interest | (2,643) | (2,643) | |||||
Redeemable non-controlling interest, Change in fair value of redemeedable non-controlling interest | 2,643 | ||||||
Comprehensive income (loss): | |||||||
Net income (loss) | 269,684 | [1] | 269,684 | ||||
Redeemable non-controlling interest, Net income (loss) | [1] | (2,137) | |||||
Other comprehensive income (loss) | (6,640) | (6,640) | |||||
Redeemable non-controlling interest, Other comprehensive income (loss) | 104 | ||||||
End balance, value at Dec. 31, 2016 | 1,286,648 | $ 1,984 | 1,384,468 | 358,121 | (457,925) | ||
End balance, value (in shares) at Dec. 31, 2016 | 198,794,052 | ||||||
Redeemable non-controlling interest, End balance at Dec. 31, 2016 | 4,520 | ||||||
Issuance of common shares on exercise of options | $ 10,772 | $ 7 | 10,765 | ||||
Issuance of common shares on exercise of options (in shares) | 743,045 | 743,045 | |||||
Issuance of common shares under the employee stock purchase plan | $ 4,756 | $ 2 | 4,754 | ||||
Issuance of common shares under the employee stock purchase plan (in shares) | 190,435 | ||||||
Net settlement on vesting of restricted share units | (357) | $ 1 | (358) | ||||
Net settlement on vesting of restricted share units (in shares) | 103,220 | ||||||
Net settlement on vesting of performance units | $ (9,939) | $ 7 | (9,946) | ||||
Net settlement on vesting of performance units (in shares) | 731,701 | 731,701 | |||||
Stock repurchased and retired | $ (219,784) | $ (77) | (4,000) | (215,707) | |||
Stock repurchased and retired (in shares) | (808,293) | (7,737,246) | |||||
Expenses related to stock repurchase | $ (16) | (16) | |||||
Stock-based compensation expense | 35,685 | 35,685 | |||||
Change in fair value of redeemable non-controlling interest | (2,841) | (2,841) | |||||
Redeemable non-controlling interest, Change in fair value of redemeedable non-controlling interest | 2,841 | ||||||
Comprehensive income (loss): | |||||||
Net income (loss) | 263,111 | [1] | 263,111 | ||||
Redeemable non-controlling interest, Net income (loss) | [1] | (2,270) | |||||
Other comprehensive income (loss) | 102,695 | 102,695 | |||||
Redeemable non-controlling interest, Other comprehensive income (loss) | (341) | ||||||
Dividend | (46,686) | (46,686) | |||||
End balance, value at Dec. 31, 2017 | $ 1,424,044 | $ 1,924 | 1,421,368 | 355,982 | (355,230) | ||
End balance, value (in shares) at Dec. 31, 2017 | 192,825,207 | 192,825,207 | |||||
Redeemable non-controlling interest, End balance at Dec. 31, 2017 | $ 4,750 | ||||||
Adoption of ASU (ASU 2014-09) at Dec. 31, 2017 | 17,924 | 17,924 | |||||
Adjusted balance, value at Dec. 31, 2017 | 1,441,968 | $ 1,924 | 1,421,368 | 373,906 | (355,230) | ||
Redeemable non-controlling interest, Adjusted balance at Dec. 31, 2017 | 4,750 | ||||||
Adoption of ASU | ASU 2018-02 | (2,265) | 2,265 | |||||
Issuance of common shares on exercise of options | $ 7,258 | $ 4 | 7,254 | ||||
Issuance of common shares on exercise of options (in shares) | 441,076 | 441,076 | |||||
Issuance of common shares under the employee stock purchase plan | $ 6,776 | $ 2 | 6,774 | ||||
Issuance of common shares under the employee stock purchase plan (in shares) | 245,467 | ||||||
Net settlement on vesting of restricted share units | (2,649) | $ 2 | (2,651) | ||||
Net settlement on vesting of restricted share units (in shares) | 227,560 | ||||||
Net settlement on vesting of performance units | $ (13,270) | $ 7 | (13,277) | ||||
Net settlement on vesting of performance units (in shares) | 691,958 | 691,958 | |||||
Stock repurchased and retired | $ (154,058) | $ (51) | 4,000 | (158,007) | |||
Stock repurchased and retired (in shares) | (4,921,192) | (5,085,167) | |||||
Expenses related to stock repurchase | $ (98) | (98) | |||||
Stock-based compensation expense | 48,998 | 48,998 | |||||
Payment for purchase of redeemable non-controlling interest | (1,165) | (1,165) | |||||
Redeemable non-controlling interest, Payment for purchase of redeemable non-controlling interest | (3,565) | ||||||
Comprehensive income (loss): | |||||||
Net income (loss) | 282,019 | 282,019 | |||||
Net income (loss) | ASU 2014-09 | [2] | 282,019 | |||||
Redeemable non-controlling interest, Net income (loss) | (761) | ||||||
Redeemable non-controlling interest, Net income (loss) | ASU 2014-09 | (761) | ||||||
Other comprehensive income (loss) | (154,495) | (154,495) | |||||
Redeemable non-controlling interest, Other comprehensive income (loss) | (424) | ||||||
Dividend | (57,102) | (57,102) | |||||
End balance, value at Dec. 31, 2018 | $ 1,404,182 | $ 1,888 | $ 1,471,301 | $ 438,453 | $ (507,460) | ||
End balance, value (in shares) at Dec. 31, 2018 | 189,346,101 | 189,346,101 | |||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. | ||||||
[2] | During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452, resulting in a net adjustment of $2,664 and a tax impact of $(681) which is further adjusted by note (g) below. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Operating activities | |||||
Net income attributable to Genpact Limited shareholders | $ 282,019 | $ 263,111 | [1] | $ 269,684 | [1] |
Redeemable non-controlling interest, Net income (loss) | (761) | (2,270) | [1] | (2,137) | [1] |
Net income | 281,258 | 260,841 | [1] | 267,547 | [1] |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||
Depreciation and amortization | 64,868 | 58,503 | 54,553 | ||
Amortization of debt issuance costs (including loss on extinguishment of debt) | 3,975 | 1,884 | 1,531 | ||
Amortization of acquired intangible assets | 38,850 | 36,412 | [1] | 27,183 | [1] |
Write-down of intangible assets and property, plant and equipment | 4,265 | 9,311 | 11,195 | ||
Reserve for doubtful receivables | 1,857 | 9,819 | 7,282 | ||
Unrealized loss (gain) on revaluation of foreign currency asset/liability | 3,352 | (11,830) | 1,717 | ||
Equity-method investment activity, net | 12 | 4,543 | [1] | 7,698 | [1] |
Stock-based compensation expense | 48,998 | 35,685 | 25,113 | ||
Deferred income taxes | 6,054 | (10,391) | 30,454 | ||
Loss (gain) on divestiture | 5,668 | (5,214) | |||
Others, net | 1,317 | (4,785) | (41) | ||
Change in operating assets and liabilities: | |||||
Increase in accounts receivable | (76,894) | (57,267) | (48,612) | ||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | (76,392) | (28,381) | (62,852) | ||
Increase (decrease) in accounts payable | 26,401 | (2,155) | (463) | ||
Increase in accrued expenses, other current liabilities and other liabilities | 5,993 | 46,581 | 27,977 | ||
Increase in income taxes payable | 5,597 | 4,640 | 704 | ||
Net cash provided by operating activities | 339,511 | 359,078 | 345,772 | ||
Investing activities | |||||
Purchase of property, plant and equipment | (84,978) | (57,231) | (81,926) | ||
Payment for acquired/internally generated intangible assets (including intangibles under development) | (75,439) | (16,441) | (6,846) | ||
Proceeds from sale of property, plant and equipment | 668 | 1,738 | 547 | ||
Investment in equity affiliates | (496) | (9,620) | |||
Payment for business acquisitions, net of cash acquired | (111,571) | (284,822) | (45,162) | ||
Proceeds from divestiture of business, net of cash divested | (4,738) | 17,242 | |||
Payment for purchase of redeemable non-controlling interest | (4,730) | ||||
Net cash used for investing activities | (276,050) | (361,990) | (125,765) | ||
Financing activities | |||||
Repayment of capital lease obligations | (2,395) | (2,708) | (1,793) | ||
Payment of debt issuance costs | (4,293) | (2,630) | |||
Proceeds from long-term debt | 129,186 | 350,000 | |||
Repayment of long-term debt | (166,186) | (40,000) | (40,000) | ||
Proceeds from short-term borrowings | 250,000 | 295,000 | 200,000 | ||
Repayment of short-term borrowings | (125,000) | (285,000) | (61,500) | ||
Proceeds from issuance of common shares under stock-based compensation plans | 14,034 | 15,528 | 18,228 | ||
Payment for net settlement of stock-based awards | (15,919) | (10,296) | (769) | ||
Payment of earn-out/deferred consideration | (3,356) | (6,219) | (1,485) | ||
Dividend paid | (57,102) | (46,686) | |||
Payment for stock repurchased and retired | (154,058) | (219,784) | (345,200) | ||
Payment for expenses related to stock repurchase | (98) | (16) | (279) | ||
Net cash provided by/(used for) financing activities | (135,187) | 47,189 | (232,798) | ||
Effect of exchange rate changes | (64,346) | 37,568 | (15,493) | ||
Net increase (decrease) in cash and cash equivalents | (71,726) | 44,277 | (12,791) | ||
Cash and cash equivalents at the beginning of the period | 504,468 | 422,623 | 450,907 | ||
Cash and cash equivalents at the end of the period | 368,396 | 504,468 | 422,623 | ||
Supplementary information | |||||
Cash paid during the period for interest (including interest rate swaps ) | 41,484 | 27,915 | 19,530 | ||
Cash paid during the period for income taxes | 81,411 | 66,238 | 46,731 | ||
Property, plant and equipment acquired under capital lease obligations | $ 2,031 | $ 2,318 | $ 2,206 | ||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization The Company is a global professional services firm that drives digitally-led innovation and runs digitally-enabled intelligent operations for its clients, guided by its experience running thousands of processes for hundreds of Fortune Global 500 clients. The Company has over 87,000 employees serving clients in key industry verticals from more than 25 countries. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of preparation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income. (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. (c) 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 Accounting standard codification (ASC) Topic 606, Revenue from Contracts with Customers (“Topic 606”), effective January 1, 2018. The revenue accounting policy followed by the company before its adoption of Topic 606 is described below. 2. Summary of significant accounting policies (Continued) The Company derives its revenue primarily from business process outsourcing and information technology services, which are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been rendered and collectability is reasonably assured. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. Revenue from fixed-price contracts for the development of software and related services is recognized in accordance with the percentage-of-completion method. Guidance has been drawn from Financial Accounting Standards Board (“FASB”) guidance on Software—Revenue Recognition to account for revenue from fixed-price arrangements for software development and related services in conformity with FASB guidance on Revenue Recognition—Construction—Type and Production-Type Contracts. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of its services. Revenue from multiple-element arrangements is recognized, for each element, based on (1) the attainment of the delivery criterion; (2) its fair value, which is determined using the selling price hierarchy of vendor-specific objective evidence (“VSOE”) of fair value, third-party evidence or best estimated selling price, as applicable, and (3) its allocated selling price, which is based on the relative sales price method. 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 being expensed as incurred as was the Company’s prior practice. The cumulative impact of the adoption of this standard 2. Summary of significant accounting policies (Continued) 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 . As of January 1, 2018, contract assets and contract liabilities of $21,348 relating to the same customer contracts have been offset against each other. (d) Revenue recognition (effective January 1, 2018) 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 client. 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 distinct subscription-based licenses is recognized at the point in time it is transferred to the client. Revenue from any associated maintenance or ongoing support services is recognized ratably over the term of the contract. For a combined software license/services performance obligation, revenue is recognized over the period that the services are performed. 2. Summary of significant accounting policies (Continued) 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 clients 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 clients and classified as a contract liability. Contract assets and contract liabilities relating to the same client contract are offset against each other and presented on a net basis in the consolidated financial statements. See note 27 for information and related disclosures regarding contract balances. Significant judgements The Company often enters into contracts with clients that include promises to transfer multiple products and services to the client. 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. Client 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 client. 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. 2. Summary of significant accounting policies (Continued) 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 year ended December 31, 2018. Consolidated Balance Sheet As of December 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 368,396 $ 368,396 Accounts receivable, net 774,184 774,184 Prepaid expenses and other current assets (a, c) 212,477 56,594 269,071 Total current assets $ 1,355,057 56,594 $ 1,411,651 Property, plant and equipment, net 212,715 212,715 Deferred tax assets (b) 74,566 5,984 80,550 Investment in equity affiliates 836 836 Intangible assets, net 177,087 177,087 Goodwill 1,393,832 1,393,832 Contract cost assets (a, b) 160,193 (160,193 ) - Other assets (a, c) 155,159 107,133 262,292 Total assets $ 3,529,445 9,518 $ 3,538,963 Liabilities and equity Current liabilities Short-term borrowings 295,000 295,000 Current portion of long-term debt 33,483 33,483 Accounts payable 42,584 42,584 Income taxes payable 33,895 33,895 Accrued expenses and other current liabilities (c) 571,350 10,289 581,639 Total current liabilities $ 976,312 10,289 $ 986,601 Long-term debt, less current portion 975,645 975,645 Deferred tax liabilities 8,080 8,080 Other liabilities (c) 165,226 19,136 184,362 Total liabilities $ 2,125,263 29,425 $ 2,154,688 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 189,346,101 issued and outstanding as of December 31, 2017 and December 31, 2018, respectively 1,888 1,888 Additional paid-in capital 1,471,301 1,471,301 Retained earnings (b) 438,453 (19,907 ) 418,546 Accumulated other comprehensive income (loss) (507,460 ) (507,460 ) Total equity $ 1,404,182 (19,907 ) $ 1,384,275 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,529,445 9,518 $ 3,538,963 (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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. (b) The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 which has been offset against deferred tax assets. (c) As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. 2. Summary of significant accounting policies (Continued) Consolidated Statement of Income Year ended December 31,2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 3,000,790 $ 3,000,790 Cost of revenue 1,921,768 1,921,768 Gross profit $ 1,079,022 — $ 1,079,022 Operating expenses: Selling, general and administrative expenses (e) 693,865 2,664 696,529 Amortization of acquired intangible assets 38,850 38,850 Other operating (income) expense, net (1,845 ) (1,845 ) Income from operations $ 348,152 (2,664 ) $ 345,488 Foreign exchange gains (losses), net 15,239 15,239 Interest income (expense), net (37,119 ) (37,119 ) Other income (expense), net 35,761 35,761 Income before equity-method investment activity, net and income tax expense $ 362,033 (2,664 ) $ 359,369 Equity-method investment activity, net (12 ) — (12 ) Income before income tax expense $ 362,021 (2,664 ) $ 359,357 Income tax expense (benefit) 80,763 (681 ) 80,082 Net income $ 281,258 (1,983 ) $ 279,275 Net loss (income) attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ 282,019 (1,983 ) $ 280,036 (e) During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452 resulting in a net adjustment of $2,664 with a corresponding impact on income tax benefit of $681. 2. Summary of significant accounting policies (Continued) Consolidated Statement of Cash flow Year ended December 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (f) $ 282,019 (1,983 ) $ 280,036 Net loss attributable to redeemable non-controlling interest (761 ) (761 ) Net income (f) $ 281,258 (1,983 ) $ 279,275 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 64,868 64,868 Amortization of debt issuance costs (including loss on extinguishment of debt) 3,975 3,975 Amortization of acquired intangible assets 38,850 38,850 Write-down of intangible assets and property, plant and equipment 4,265 4,265 Reserve for doubtful receivables 1,857 1,857 Unrealized loss (gain) on revaluation of foreign currency asset/liability 3,352 3,352 Equity-method investment activity, net 12 12 Stock-based compensation expense 48,998 48,998 Deferred income taxes (f) 6,054 (681 ) 5,373 Others, net 1,317 1,317 Change in operating assets and liabilities: Increase in accounts receivable (76,894 ) (76,894 ) Increase in prepaid expenses, other current assets, contract cost assets and other assets (f, g) (76,392 ) (5,413 ) (81,805 ) Increase in accounts payable 26,401 26,401 Increase in accrued expenses, other current liabilities and other liabilities (g) 5,993 8,077 14,070 Increase in income taxes payable 5,597 5,597 Net cash provided by operating activities $ 339,511 — $ 339,511 Investing activities Purchase of property, plant and equipment (84,978 ) (84,978 ) Payment for internally generated intangible assets (including intangibles under development) (75,439 ) (75,439 ) Proceeds from sale of property, plant and equipment 668 668 Payment for business acquisitions, net of cash acquired (111,571 ) (111,571 ) Payment for redeemable non-controlling interest (4,730 ) (4,730 ) Net cash used for investing activities $ (276,050 ) — $ (276,050 ) Financing activities Repayment of capital lease obligations (2,395 ) (2,395 ) Payment of debt issuance and refinancing costs (4,293 ) (4,293 ) Proceeds from long term debt 129,186 129,186 Repayment of long-term debt (166,186 ) (166,186 ) Proceeds from short-term borrowings 250,000 250,000 Repayment of short-term borrowings (125,000 ) (125,000 ) Proceeds from issuance of common shares under stock-based compensation plans 14,034 14,034 Payment for net settlement of stock-based awards (15,919 ) (15,919 ) Payment of earn-out/deferred consideration (3,356 ) (3,356 ) Dividend paid (57,102 ) (57,102 ) Payment for stock repurchased and retired (154,058 ) (154,058 ) Payment for expenses related to stock repurchase (98 ) (98 ) Net cash used for financing activities $ (135,187 ) — $ (135,187 ) Effect of exchange rate changes (64,346 ) (64,346 ) Net increase (decrease) in cash and cash equivalents (71,726 ) (71,726 ) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ 368,396 — $ 368,396 (f) During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452, resulting in a net adjustment of $2,664 and a tax impact of $(681) 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 client contract in an amount of $8,077. 2. Summary of significant accounting policies (Continued) (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 conditions, 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) Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. (g) Short-term investments All liquid investments with an original maturity greater than 90 days but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative purposes. (h) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Computer software 4-7 Leasehold improvements Lesser of lease period or 10 Years Vehicles 3-4 The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. 2. Summary of significant accounting policies (Continued) Capitalized computer software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. Advances paid towards acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress.” (i) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. Intangible assets including technology acquired / developed individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years 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. 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. 2. Summary of significant accounting policies (Continued) The Company also capitalizes certain software and technology development costs incurred in connection with developing or obtaining software or technology for sale/lease to customers when the initial design phase is completed and commercial and technological feasibility has been established. Any development cost incurred before technological feasibility is established is expensed as incurred as research and development costs. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Capitalized software and technology costs include only (i) external direct costs of materials and services utilized in developing or obtaining software and technology and (ii) compensation and related benefits for employees who are directly associated with the project. Costs incurred in connection with developing or obtaining software or technology for sale/lease to customers which are under development and not put to use are disclosed under “intangible assets under development.” Advances paid toward the acquisition of intangible assets outstanding as of each balance sheet date are disclosed under “intangible assets under development.” Capitalized software and technology costs are included in intangible assets under technology-related intangible assets on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software and technology. (j) Impairment of long-lived assets Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. (k) Foreign currency The Company’s consolidated financial statements are reported in U.S. dollars, the Company’s functional currency. The functional currency for the Company’s subsidiaries organized in Europe, other than the United Kingdom, the Czech Republic, Luxembourg and one subsidiary in Poland, is the euro, and the functional currencies of the Company’s subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Israel, Japan, Morocco, South Africa, the Philippines, Poland, the Czech Republic, Hong Kong, Singapore, Australia and Canada are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the Company’s subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. 2. Summary of significant accounting policies (Continued) (l) Derivative instruments and hedging activities In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates and interest rate fluctuation. The Company purchases forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and for |
Business acquisitions and dives
Business acquisitions and divestiture | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business acquisitions and divestiture | 3. Business acquisitions and divestiture A. Certain acquisitions (a) Barkawi Management Consultants GmbH & Co. KG and certain related entities On August 30, 2018, the Company acquired 100% of the outstanding equity/partnership interests in Barkawi Management Consultants GmbH & Co. KG, a German limited partnership, and certain affiliated entities in the United States, Germany and Austria (collectively referred to as “Barkawi”) for total purchase consideration of $101,307. This amount includes cash consideration of $95,625, net of cash acquired of $5,682. The total purchase consideration paid by the Company was $100,969, resulting in a payable of $338, which is outstanding as of December 31, 2018. During the quarter ended December 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. The Company is evaluating adjustments related to certain tax positions, which, when determined, may result in the recognition of additional assets and liabilities as of the acquisition date. The measurement period will not exceed one year from the acquisition date. This acquisition enhances the Company’s supply chain management consulting capabilities. In connection with the acquisition of Barkawi, the Company recorded $10,200 in customer-related intangibles and $1,800 in marketing-related intangibles, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $81,250, which includes measurement period adjustments and has been allocated to the Company’s India reporting unit and is partially deductible for tax purposes. The goodwill represents primarily the consulting expertise, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $1,842 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 $17,314, assumed certain liabilities amounting to $10,149 and recognized a net deferred tax asset of $892. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. (b) Commonwealth Informatics Inc. On July 3, 2018, the Company acquired 100% of the outstanding equity interest in Commonwealth Informatics Inc. (“Commonwealth”), a Massachusetts corporation, for preliminary purchase consideration of $17,599. This amount includes cash consideration of $16,123, net of cash acquired of $1,477, and preliminary adjustments for working capital and indebtedness. As of December 31, 2018, the total consideration paid by the Company to the sellers was $17,333, resulting in a payable of $266. The Company is evaluating certain tax positions, which, when determined, may result in the recognition of additional assets and liabilities as of the acquisition date. The measurement period will not exceed one year from the acquisition date. This acquisition enhances the Company’s signal management and pharmacovigilance capabilities for clients in the life sciences industry. In connection with the acquisition of Commonwealth, the Company recorded $2,200 in customer-related intangibles and $2,600 in technology-related intangible assets, which have a weighted average amortization period of four years. Goodwill arising from the acquisition amounted to $11,248, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents primarily the acquired capabilities, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. Acquisition-related costs of $521 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 $2,583 and assumed certain liabilities amounting to $1,032. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. 3. Business acquisitions and divestiture (Continued) (c) Strategic Sourcing Excellence Limited On January 8, 2016, the Company acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company. The total consideration paid by the Company to the selling 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. (d) TandemSeven, Inc. On September 5, 2017, the Company acquired 100% of the outstanding equity interest in TandemSeven, Inc. (“TandemSeven”), a Massachusetts corporation, for total purchase consideration of $35,637. This amount includes cash consideration of $31,784, net of cash acquired of $3,853, and an adjustment for working capital and indebtedness. During the quarter ended March 31, 2018, the Company recorded certain measurement period adjustments. These adjustments did not have a significant impact on the Company’s consolidated statements of income, balance sheets or cash flows. TandemSeven’s focus on improving the design of customer experiences complements the Company’s existing capabilities aimed at transforming clients’ processes end-to-end. In connection with the acquisition of TandemSeven, the Company recorded $2,000 in customer-related intangibles, $1,700 in marketing-related intangibles and $800 in technology-related intangible assets, which have a weighted average amortization period of two years. Goodwill arising from the acquisition amounted to $25,227, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes. The goodwill represents primarily the acquired design expertise, operating synergies and other benefits expected to result from combining the acquired operations with those of the Company. 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. 3. Business acquisitions and divestiture (Continued) (e) 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. (f) 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. 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. 3. Business acquisitions and divestiture (Continued) (g) 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 consideration the Company paid to consummate these acquisitions was $87,586. This aggregate amount includes the 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. 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. 3. Business acquisitions and divestiture (Continued) 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 | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents As of December 31, 2017 2018 Cash and other bank balances $ 504,468 $ 368,396 Total $ 504,468 $ 368,396 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Accounts receivable, net of reserve for doubtful receivables | 5. Accounts receivable, net of reserve for doubtful receivables The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2016 2017 2018 Opening balance as of January 1 $ 11,530 $ 15,519 $ 23,660 Additions due to acquisitions — 235 — Additions charged/reversal released to cost and expense 7,282 9,819 1,857 Deductions/effect of exchange rate fluctuations (3,293 ) (1,913 ) (1,557 ) Closing balance $ 15,519 $ 23,660 $ 23,960 Accounts receivable were $716,745 and $798,144 , and reserves for doubtful receivables were $23,660 and $23,960, resulting in net accounts receivable balances of $693,085 and $774,184 as of December 31, 2017 and 2018, respectively. In addition, accounts receivable due after one year amounting to $1,624 and $4,099 as of December 31, 2017 and 2018, respectively, are included under other assets in the consolidated balance sheets. Accounts receivable from related parties were $36 and $99 as of December 31, 2017 and 2018, respectively. There are no doubtful receivables in amounts due from related parties. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these financial assets and liabilities were determined using the following inputs as of December 31, 2017 and 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 As of December 31 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a, c) $ 44,099 $ — $ 44,099 $ — Deferred compensation plan assets (a, f) 1,613 — — 1,613 Total $ 45,712 $ — $ 44,099 $ 1,613 Liabilities Earn-out consideration (Note b, d) $ 17,073 $ — $ — $ 17,073 Derivative instruments (Note b, c) 35,245 — 35,245 — Deferred compensation plan liability (b, g) 1,582 — — 1,582 Total $ 53,900 $ — $ 35,245 $ 18,655 (a) Included in “prepaid expenses and other current assets” and “other assets” in the consolidated balance sheets. (b) Included in “accrued expenses and other current liabilities” and “other liabilities” in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. (e) The Company’s estimate of the fair value of redeemable non-controlling interest as of December 31, 2017 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions. (f) Deferred compensation plan assets consist of life insurance policies held under a Rabbi Trust. Assets held in the Rabbi Trust are valued based on the cash surrender value of the insurance contract, which is determined based on the fair value of the underlying assets included in the insurance portfolio and are therefore classified within level 3 of the valuation hierarchy. 6. Fair Value Measurements (Continued) (g) The fair value of the deferred compensation plan liability is derived based on the fair value of the underlying assets in the insurance policies and is therefore classified within level 3 of the valuation hierarchy . The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the years ended December 31, 2017 and 2018: Year ended December 31, 2017 2018 Opening balance $ 22,435 $ 24,732 Earn-out consideration payable in connection with acquisitions 10,720 — Payments made on earn-out consideration (7,239 ) (3,356 ) Change in fair value of earn out consideration (Note a) (3,695 ) (5,655 ) Others (Note b) 2,511 1,352 Ending balance $ 24,732 $ 17,073 (a) Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. (b) Interest expense is included in “interest income (expense), net” and the impact of changes in foreign exchange is reported in “foreign exchange gains (losses), net” in the consolidated statements of income. The cumulative translation adjustment is reported as a component of “other comprehensive income (loss).” The following table provides a roll-forward of the fair value of deferred compensation plan assets categorized as level 3 in the fair value hierarchy for the year ended December 31, 2017 and 2018: Year ended December 31, 2017 2018 Opening balance $ — $ — Redemptions — — Additions — 1,669 Change in fair value of deferred compensation plan assets (note a) — (56 ) Closing balance $ — $ 1,613 (a) Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. The following table provides a roll-forward of the fair value of deferred compensation liabilities categorized as level 3 in the fair value hierarchy for the year ended December 31, 2017 and 2018: Year ended December 31, 2017 2018 Opening balance $ — $ — Redemptions — — Additions — 1669 Change in fair value of deferred compensation plan liabilities (note a) — (87 ) Closing balance $ — $ 1,582 (a) Changes in the fair value of deferred compensation liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | 7. Derivative financial instruments The Company is exposed to the risk of rate fluctuations on foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities and foreign currency denominated forecasted cash flows and interest rate risks. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature over periods of up to 60 months and the forecasted transactions are expected to occur during the same periods. The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2017 As of December 31, 2018 As of December 31, 2017 As of December 31, 2018 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,289,400 $ 1,439,000 $ 54,398 $ (3,643 ) United States Dollars (sell) Mexican Peso (buy) 9,000 — (441 ) — United States Dollars (sell) Philippines Peso (buy) 76,650 55,800 69 (1,510 ) Euro (sell) United States Dollars (buy) 170,542 136,412 (2,069 ) 4,804 Pound Sterling (buy) United States Dollars (sell) 24,041 128 253 (128 ) Euro (sell) Romanian Leu (buy) 35,826 41,198 (892 ) (299 ) Japanese Yen (sell) Chinese Renminbi (buy) 60,768 40,568 1,918 (2,195 ) Pound Sterling (sell) United States Dollars (buy) 80,871 27,517 (2,478 ) 495 Australian Dollars (sell) United States Dollars (buy) 136,092 89,780 (5,180 ) 3,548 Interest rate swaps (floating to fixed) 432,117 507,425 9,332 7,782 54,910 8,854 (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 other 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 revenue and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, that are denominated in currencies other than the Company’s underlying functional currency. 7. Derivative financial instruments (Continued) The fair values 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 December 31, 2018 As of December 31, 2017 As of December 31, 2018 Assets Prepaid expenses and other current assets $ 43,557 $ 23,038 $ 4,635 $ 11,490 Other assets $ 24,906 $ 9,571 $ — $ — Liabilities Accrued expenses and other current liabilities $ 10,092 $ 15,148 $ 254 $ 225 Other liabilities $ 7,842 $ 19,872 $ — $ — Cash flow hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred. In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Year ended December 31, 2016 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 Opening balance $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 Adoption of ASU 2018-02 (refer to note 25) — — — — — — — 2,265 2,265 Net gains (losses) reclassified into statement of income on completion of hedged transactions (Note (a)) (6,799 ) 409 (6,390 ) 54,494 (17,725 ) 36,769 9,336 (1,073 ) 8,263 Changes in fair value of effective portion of outstanding derivatives, net 60,752 (23,400 ) 37,352 67,562 (18,182 ) 49,380 (43,604 ) 5,574 (38,030 ) Gain (loss) on cash flow hedging derivatives, net 67,551 (23,809 ) 43,742 13,068 (457 ) 12,611 (52,940 ) 6,647 (46,293 ) Closing balance $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 $ (2,411 ) $ (5,524 ) $ (7,935 ) Note (a) The tax (expense) benefit includes the effect of novating certain hedging instruments as part of an intercompany transfer. 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) reclassified Derivatives in recognized in OCI on reclassified from OCI into Statement of Income Cash Flow Derivatives (Effective Portion) from OCI into (Effective Portion) Hedging Year ended December 31, Statement of Income Year ended December 31, Relationships 2016 2017 2018 (Effective Portion) 2016 2017 2018 Forward foreign exchange contracts $ 54,664 $ 66,037 $ (45,840 ) Revenue $ 12,859 $ 5,858 $ (716 ) Interest rate swaps 6,088 1,525 2,236 Cost of revenue (14,223 ) 37,849 4,723 Selling, general and administrative expenses $ (3,765 ) 10,849 1,543 Interest expense (1,670 ) (62 ) 3,786 $ 60,752 $ 67,562 $ (43,604 ) $ (6,799 ) $ 54,494 $ 9,336 There were no gains (losses) related to the ineffective portion of derivatives for the periods shown. Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Year ended December 31, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2016 2017 2018 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 2,921 $ 16,696 $ (6,240 ) $ 2,921 $ 16,696 $ (6,240 ) (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items, such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 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, 2017 2018 Advance income and non-income taxes $ 51,832 $ 58,701 Deferred transition costs 62,029 — Contract asset (Note 27) — 22,472 Customer acquisition cost 19,327 — Prepaid expenses 16,944 25,996 Derivative instruments 48,192 34,528 Employee advances 5,014 3,772 Deposits 4,719 2,758 Advances to suppliers 2,705 1,998 Others 25,580 62,252 $ 236,342 $ 212,477 |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | 9. Property, plant and equipment, net Property, plant and equipment, net consist of the following: As of December 31, 2017 2018 Land $ 10,209 $ 9,401 Buildings 46,007 43,078 Furniture and fixtures 43,091 47,206 Computer equipment and servers 210,725 210,239 Plant, machinery and equipment 92,981 88,937 Computer software 137,459 138,824 Leasehold improvements 102,072 105,965 Vehicles 6,418 5,309 Capital work in progress 17,069 11,795 Property, plant and equipment, gross $ 666,031 $ 660,754 Less: Accumulated depreciation and amortization (459,001 ) (448,039 ) Property, plant and equipment, net $ 207,030 $ 212,715 Depreciation expense on property, plant and equipment for the years ended December 31, 2016, 2017 and 2018 was $45,826, $44,909 and $49,518, respectively. Software amortization for the years ended December 31, 2016, 2017 and 2018 amounted to $9,471, $11,415 and $12,317, 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 $744, $(1,712) and $(231) for the years ended December 31, 2016, 2017 and 2018, respectively. Property, plant and equipment, net include assets held under capital lease arrangements amounting to $3,302 and $2,343 as of December 31, 2017 and December 31, 2018, respectively. Depreciation expense in respect of these assets was $1,564, $1,682 and $1,395 for the years ended December 31, 2016, 2017 and 2018, respectively. During the year ended December 31, 2018, the Company tested for recoverability a group of assets, comprised of computer software and technology-related intangible assets, as a result of a downward revision to the forecasted cash flows to be generated by this group of assets. Based on the results of its testing, the Company determined that the carrying value of the group of assets exceeded the estimated undiscounted cash flows and the Company recorded a $4,265 write-down to reduce the carrying value to its fair value. The Company used the income approach to determine the fair value of the group of assets for the purpose of calculating the charge. 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 $1,200 and $3,065, respectively. During the year ended December 31, 2017, the Company tested for recoverability a group of assets, comprised of computer software and a technology-related intangible asset, as a result of a downward revision to the forecasted cash flows to be generated by this group of assets. Based on the results of its testing, the Company determined that the carrying value of the group of assets exceeded the estimated undiscounted cash flows and the Company recorded an $8,000 write-down to reduce the carrying value to its fair value. The Company used the income approach to determine the fair value of the group of assets for the purpose of calculating the charge. 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 $5,760 and $2,240, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | 10. Goodwill and intangible assets The following table presents the changes in goodwill for the years ended December 31, 2017 and 2018: As of December 31, 2017 2018 Opening balance $ 1,069,408 $ 1,337,122 Goodwill relating to acquisitions consummated during the period 229,745 91,936 Impact of measurement period adjustments (106 ) 816 Effect of exchange rate fluctuations 38,075 (36,042 ) Closing balance $ 1,337,122 $ 1,393,832 Goodwill has been allocated to the following reporting units, which represent different business units of the Company, as follows: As of December 31, 2017 2018 India $ 735,596 $ 794,902 China 60,171 59,319 Europe 41,775 40,033 Americas 57,021 57,021 IT services 442,559 442,557 $ 1,337,122 $ 1,393,832 In the year ended December 31, 2018 and December 31, 2017, in accordance with ASU 2011-08, the Company performed an assessment of qualitative factors to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on such assessment, as at December 31, 2018 and December 31, 2017, the Company concluded that it is not more likely than not that the fair values of any of the Company’s reporting units are less than their carrying amounts. The total amount of the Company’s goodwill deductible for tax purposes is $120,617 and $187,546 as of December 31, 2017 and 2018, respectively. The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows: As of December 31, 2017 As of December 31,2018 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 369,173 $ 293,029 $ 76,144 $ 368,558 $ 306,582 $ 61,976 Marketing-related intangible assets 52,443 39,212 13,231 54,714 46,591 8,123 Technology-related intangible assets 54,189 28,278 25,911 76,790 33,976 42,814 Other intangible assets 3,081 2,314 767 1,204 1,077 127 Intangible assets under development 15,537 - 15,537 64,047 - 64,047 494,423 362,833 $ 131,590 $ 565,313 $ 388,226 $ 177,087 10. Goodwill and intangible assets (Continued) Amortization expenses for intangible assets disclosed in the Consolidated Statements of Income under amortization of acquired intangible assets for the years ended December 31, 2016, 2017 and 2018 were $27,183, $36,412 and $38,850, respectively. Amortization expenses for technology-related internally developed intangible assets disclosed in the consolidated statements of income under “cost of revenue” and “selling, general and administrative expense” for the years ended December 31, 2016, 2017 and 2018 were $0, $452 and $2,807, 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 $0, $(15) and $5 for the years ended December 31, 2016, 2017 and 2018, respectively. The Company recorded write-downs to technology-related intangible assets during the years ended December 31, 2017 and 2018, as described in note 9. During the year ended December 31, 2017, the Company tested a customer-related intangible asset for recoverability as a result of the termination of a client contract. Based on the results of such testing, the Company recorded a $1,311 write-down to reduce the amount of the asset’s total carrying value. The Company used the income approach to determine the fair value of the intangible asset for the purpose of calculating the resulting charge. This write-down has been recorded in other operating (income) expenses, net in the consolidated statement of income. During the year ended December 31, 2017, the Company also recorded a write-down to a technology-related intangible asset as described in note 9. During the year ended December 31, 2016, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset. The Company previously recorded a charge to this asset in the third quarter of 2015. Based on the results of its testing, the Company determined that the carrying value of the intangible asset exceeded its estimated undiscounted cash flows by $10,324 and recorded an additional write-down to further reduce the carrying value by this amount. The Company used the income approach to determine the fair value of the intangible asset for the purpose of calculating the charge. This write-down had been recorded in other operating (income) expenses, net in the consolidated statement of income. During the year ended December 31, 2016, the Company also tested a customer-related intangible asset for recoverability as a result of the termination of a client contract. Based on results of such testing, the Company recorded an $871 write-down in the amount of the asset’s total carrying value. The Company used the income approach to determine the fair value of the intangible asset for the purpose of calculating the resulting charge. This write-down had been recorded in other operating (income) expenses, net in the consolidated statement of income. The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: 2019 $ 36,395 2020 34,949 2021 20,814 2022 10,957 2023 and beyond 9,925 $ 113,040 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | 11. Other Assets Other assets consist of the following: As of December 31, 2017 2018 Customer acquisition cost $ 37,017 — Contract asset (Note 27) — 22,563 Advance income and non-income taxes 63,474 62,942 Deferred transition costs 77,255 — Deposits 32,174 25,984 Derivative instruments 24,906 9,571 Prepaid expenses 2,849 5,052 Accounts Receivable due after one year 1,624 4,099 Others 22,870 24,948 $ 262,169 $ 155,159 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | 12. Leases The Company has leased vehicles, furniture and fixtures, computer equipment and servers, and plants, machinery and equipment from various lessors under capital lease arrangements which are not material to the consolidated financial statements. The Company conducts its operations using facilities under non-cancellable operating lease agreements that expire at various dates. Future minimum lease payments under these agreements are as follows: As of December 31: 2019 $ 64,099 2020 58,434 2021 53,170 2022 47,976 2023 38,862 2024 and beyond 147,765 Total minimum lease payments $ 410,306 Rental expenses in agreements with rent holidays and scheduled rent increases are recorded on a straight-line basis over the applicable lease term. Rent expenses under cancellable and non-cancellable operating leases were $50,827, $59,484 and $66,110 for the years ended December 31, 2016, 2017 and 2018, respectively. The rental expenses set out above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts amounting to $598, $(1,533) and $(195) for the years ended December 31, 2016, 2017 and 2018, respectively. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accrued expenses and other current liabilities | 13. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: As of December 31, 2017 2018 Accrued expenses $ 204,997 $ 179,843 Accrued employee cost 204,506 210,251 Earn-out consideration 14,928 16,875 Statutory liabilities 36,283 42,728 Retirement benefits 21,074 22,921 Derivative instruments 10,346 15,373 Advance from customers 25,476 — Contract liabilities (Note 27) — 64,744 Deferred transition revenue 52,233 — Other liabilities 13,093 16,807 Capital lease obligations 1,546 1,808 $ 584,482 $ 571,350 |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term debt | 14. Long-term debt In August 2018, the Company amended its 2015 credit facility (“the 2015 Facility”), which was comprised of an $800,000 term loan and a $350,000 revolving credit facility. The amended facility (the “2018 Facility”) is comprised of a $680,000 term loan, which represents the outstanding balance under the 2015 Facility as of the date of amendment, and a $500,000 revolving credit facility. The 2018 Facility expires on August 8, 2023. The amendment did not result in a substantial modification of $550,814 of the outstanding term loan under the 2015 Facility. Further, as a result of the amendment, the Company extinguished the outstanding term loan under the 2015 Facility of $129,186 and obtained additional funding of $129,186, resulting in no change to the outstanding principal of the term loan under the 2018 Facility. In connection with the amendment, the Company expensed $2,029, representing partial acceleration of the amortization of the existing unamortized debt issuance costs and an additional fee paid to the Company’s lenders related to the term loan. The overall borrowing capacity under the revolving credit facility increased from $350,000 to $500,000. The amendment of the revolving credit facility resulted in accelerated amortization of $82 relating to existing unamortized debt issuance cost. The remaining unamortized costs and an additional third party fee paid in connection with the amendment will be amortized over the term of the amended facility, which will expire on August 8, 2023. . Borrowings under the 2018 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, compared to a margin of 1.50% under the 2015 facility, or a base rate plus an applicable margin equal to 0.375% per annum, compared to a margin of 0.50% under the 2015 facility, 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. The amended credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the year ended December 31, 2018, the Company was in compliance with the financial covenants. 14. Long-term debt (Continued) As of December 31, 2017 and December 31, 2018, the amount outstanding under the term loan, net of debt amortization expense of $1,848 and $2,158, was $698,152 and $660,841, respectively. As of December 31, 2017 and December 31, 2018, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum and 1.375% per annum, respectively. Indebtedness under the 2018 Facility is unsecured. The amount outstanding on the term loan as of December 31, 2018 requires quarterly payments of $8,500, and the balance of the loan is due and payable upon the maturity of the term loan on Aug 8, 2023. The maturity profile of the term loan outstanding as of December 31, 2018, net of debt amortization expense, is as follows: Year ended Amount 2019 $ 33,483 2020 33,509 2021 33,537 2022 33,564 2023 526,748 Total $ 660,841 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 December 31, 2018, the amount outstanding under the notes, net of debt amortization expense of $2,239 and $1,713, was $347,761 and $348,287 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 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 year ended December 31, 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. On July 24, 2018, the unregistered notes exchange offer was completed and all outstanding unregistered notes were exchanged for freely tradable notes registered under the Securities Act of 1933, as amended. |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | 15. Short-term borrowings The Company has the following borrowing facilities: (a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2017 and December 31, 2018, the limits available were $15,064 and $14,281, respectively, of which $7,900 and $7,389 was utilized, constituting non-funded drawdown. (b) A fund-based and non-fund based revolving credit facility of $500,000 which the Company obtained through an amendment of its existing credit agreement on August 9, 2018, as described in note 14. Prior to the amendment, the Company’s revolving credit facility was $350,000. The amended credit facility expires on August 8, 2023. The funded drawdown amount under the Company’s revolving facilities bore interest at a rate equal to LIBOR plus a margin of 1.50% as of December 31, 2017 compared to a rate equal to LIBOR plus a margin of 1.375% as of December 31, 2018. The unutilized amount on the revolving facilities bore a commitment fee of 0.25% as of December 31, 2017 compared to a commitment fee of 0.20% as of December 31, 2018. As of December 31, 2017 and December 31, 2018, a total of $170,978 and $297,098 respectively, was utilized, of which $170,000 and $295,000, respectively, constituted funded drawdown and $978 and $2,098, respectively, constituted non-funded drawdown. The Company’s amended credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the year ended December 31, 2018, the Company was in compliance with the financial covenants of the credit agreement. |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 16. Other liabilities Other liabilities consist of the following: As of December 31, 2017 2018 Accrued employee cost $ 14,020 $ 6,341 Earn-out consideration 9,804 198 Retirement benefits 40,520 50,370 Derivative instruments 7,842 19,872 Advance from customers 790 — Contract liabilities (Note 27) — 53,796 Deferred transition revenue 70,900 — Others 22,069 32,935 Capital lease obligations 2,664 1,714 $ 168,609 $ 165,226 |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plans | 17. Employee benefit plans The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees. Defined benefit plans In accordance with Indian law, the Company provides a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. The Gratuity Plan provides a lump-sum payment to vested employees upon retirement or termination of employment in an amount based on each employee’s salary and duration of employment with the Company. The Gratuity Plan benefit cost for the year is calculated on an actuarial basis. The Company contributes the required funding for all ascertained liabilities to the Gratuity Plan. Trustees administer contributions made to the trust, and contributions are invested in specific designated instruments as permitted by Indian law. The Company’s overall investment strategy is to invest predominantly in fixed income funds managed by asset management companies and a small portion in equity funds. These funds further invest in debt securities such as money market instruments, government securities and public and private bonds. During the years ended December 31, 2016, 2017 and 2018, all of the plan assets were primarily invested in debt securities. In addition, in accordance with Mexican law, the Company provides certain termination benefits (the “Mexican Plan”) to all of its Mexican employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Mexican Plan is calculated on an actuarial basis. In addition, certain of the Company’s subsidiaries organized or operating in the Philippines and Japan have sponsored defined benefit retirement programs (respectively, the “Philippines Plan” and the “Japan Plan”). The full-year benefit costs of the Japan Plan and the Philippines Plan are calculated on an actuarial basis. Company contributions in respect of these plans are made to insurer-managed funds or to a trust. The trust contributions are further invested in government bonds. In addition, in accordance with Israeli law, the Company provides certain termination benefits (the “Israeli Plan”) to all of its Israeli employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Israeli Plan is calculated on an actuarial basis. Current service costs for defined benefit plans are accrued in the year to which they relate on a monthly basis. Actuarial gains or losses, or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees or over the average remaining life expectancies for inactive employees if most of the plan obligations are payable to inactive employees. 17. Employee benefit plans (Continued) The following table sets forth the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of December 31, 2017 and 2018. As of December 31, 2017 2018 Change in benefit obligation Projected benefit obligation at the beginning of the year $ 45,283 $ 58,094 Service cost 7,735 7,833 Actuarial loss (gain) 4,493 470 Interest cost 3,252 3,822 Liabilities assumed on acquisition — 503 Benefits paid (5,367 ) (6,277 ) Special termination benefit 57 — Plan amendments — 995 Effect of exchange rate changes 2,641 (3,992 ) Projected benefit obligation at the end of the year $ 58,094 $ 61,448 Change in fair value of plan assets Fair value of plan assets at the beginning of the year $ 30,871 $ 45,560 Employer contributions 15,176 1,573 Actual gain on plan assets 2,746 1,929 Actuarial gain/(loss) 11 (9 ) Benefits paid (5,301 ) (6,228 ) Effect of exchange rate changes 2,057 (3,142 ) Fair value of plan assets at the end of the year $ 45,560 $ 39,683 Amounts included in other comprehensive income (loss) as of December 31, 2017 and 2018 were as follows: As of December 31, 2017 2018 Net actuarial loss $ (12,228 ) $ (11,037 ) Net Prior Service Credit / (Cost) — (967 ) Deferred tax assets 2,221 3,451 Other comprehensive income, net $ (10,007 ) $ (8,553 ) Changes in other comprehensive income (loss) during the year ended December 31, 2018 were as follows: 2018 Net actuarial loss $ (951 ) Amortization of net actuarial loss 1,202 Deferred income taxes 1,407 Net prior service credit/(cost) (944 ) Effect of exchange rate changes 740 Other comprehensive income (loss), net $ 1,454 17. Employee benefit plans (Continued) Net defined benefit plan costs for the years ended December 31, 2016, 2017 and 2018 include the following components: Year ended December 31, 2016 2017 2018 Service costs $ 5,661 $ 7,735 $ 7,833 Interest costs 2,585 3,252 3,822 Amortization of actuarial loss (113 ) 1,177 806 Expected return on plan assets (2,043 ) (2,412 ) (2,435 ) One time cost — 209 — Special termination benefits — 426 — Net defined benefit plan costs $ 6,090 $ 10,387 $ 10,026 The amount in “other comprehensive loss” that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $1,116. The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2017 and 2018 are presented below: As of December 31, 2017 2018 Discount rate 7.40% - 7.60% 8.30% - 8.40% Rate of increase in compensation per annum 5.20%-11.00% 5.20%-11.00% The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2016, 2017 and 2018 are presented below: Year ended December 31, 2016 2017 2018 Discount rate 8.30% - 8.45% 7.10% - 7.5% 7.40% - 7.60% Rate of increase in compensation per annum 5.20% - 11.00% 5.20% - 11.00% 5.20% - 11.00% Expected long term rate of return on plan assets per annum 7.50% 7.50% 7.50% The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2017 and 2018 are presented below: As of December 31, 2017 2018 Discount rate 7.60 % 9.25 % Rate of increase in compensation per annum 5.50 % 5.50 % The weighted average assumptions used to determine the costs of the Mexican Plan for the years ended December 31, 2016, 2017 and 2018 are presented below: Year ended December 31, 2016 2017 2018 Discount rate 6.50 % 6.80 % 7.60 % Rate of increase in compensation per annum 5.50 % 5.50 % 5.50 % Expected long term rate of return on plan assets per annum 0.00 % 0.00 % 0.00 % 17. Employee benefit plans (Continued) The weighted average assumptions used to determine the benefit obligation of the Japan Plan as of December 31, 2017 and 2018 are presented below: As of December 31, 2017 2018 Discount rate 0.113%-0.789% 0.076%-0.269% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% The weighted average assumptions used to determine the costs of the Japan Plan for the years ended December 31, 2016, 2017 and 2018 are presented below: Year ended December 31, 2016 2017 2018 Discount rate 0.24% - 1.30% 0.08% - 1.30% 0.113%-0.789% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% 0.00% - 3.55% Expected long term rate of return on plan assets per annum 0.00% - 3.77% 0.00% - 3.09% 0-1.84% The expected returns on plan assets set forth above are based on the Company’s expectation of the average long-term rate of return expected to prevail over the next 15 to 20 years on the types of investments prescribed by applicable statute. The Company evaluates these assumptions based on projections of the Company’s long-term growth and prevalent industry standards. Unrecognized actuarial loss is amortized over the average remaining service period of the active employees expected to receive benefits under the plan. The fair values of the Company’s plan assets as of December 31, 2017 and 2018 by asset category are as follows: Total As of December 31, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset category Equity $ 7 $ 7 $ — $ — Cash 381 381 — — Fixed income securities (Note a) 36,499 3,345 33,154 — Other securities (Note b) 2,796 2,381 415 — Total $ 39,683 $ 6,114 $ 33,569 $ — Total 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) Asset category Cash $ 472 $ 472 $ — $ — Fixed income securities (Note a) 42,328 3,419 38,909 — Other securities (Note b) 2,760 2,437 323 — Total $ 45,560 $ 6,328 $ 39,232 $ — (a) Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. (b) Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. 17. Employee benefit plans (Continued) The expected benefit plan payments set forth below reflect expected future service: Year ending December 31, 2019 $ 9,983 2020 10,454 2021 10,686 2022 10,877 2023 11,193 2024 - 2028 53,112 $ 106,305 The Company’s expected benefit plan payments are based on the same assumptions that were used to measure the Company’s benefit obligations as of December 31, 2018. Defined contribution plans During the years ended December 31, 2016, 2017 and 2018, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Year ended December 31, 2016 2017 2018 India $ 19,074 $ 22,242 $ 23,877 U.S. 10,379 11,147 13,454 U.K. 6,593 7,823 9,619 China 15,512 15,950 17,625 Other regions 4,684 4,059 4,604 Total $ 56,242 $ 61,221 $ 69,179 Deferred compensation plan On July 1, 2018, Genpact LLC, a wholly-owned subsidiary of the Company, adopted an executive deferred compensation plan (the “Plan”). The Plan provides a select group of U.S.-based members of Company management with the opportunity to defer from 1% to 80% of their base salary and from 1% to 100% of their qualifying bonus compensation (or such other minimums or maximums as determined by the Plan administrator from time to time) pursuant to the terms of the Plan. Participant deferrals are 100% vested at all times. The Plan also allows for discretionary supplemental employer contributions by the Company, in its sole discretion, which will be subject to a two-year vesting schedule (50% vesting on the one-year anniversary of approval of the contribution and 50% vesting on the second year anniversary of approval of the contribution) or such other vesting schedule as determined by the Company. Deferred compensation plan assets consist of life insurance policies. In December 2018, the Company transferred these policies to a Rabbi Trust, which now holds the assets under the Plan. The Plan also provides an option for participants to elect to receive deferred compensation and earnings thereon on either fixed date(s) no earlier than two years following the applicable Plan year (or end of the applicable performance period for performance-based bonus compensation) or following a separation from service, in each case either in a lump sum or in annual installments over a term of up to 15 years. Each Plan participant’s compensation deferrals and discretionary supplemental employer contributions (if any) will be credited or debited with notional investment gains and losses equal to the experience of selected hypothetical investment funds offered under the Plan and elected by the participant. The Company has investments in funds held in Company-owned life insurance policies which are held in a Rabbi Trust that are classified as trading securities. Management determines the appropriate classification of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. The securities are classified as trading securities because they are held for resale in anticipation of short-term fluctuations in market prices. The trading securities are stated at fair value. 17. Employee benefit plans (Continued) The liability for the deferred compensation plan was $0 and $1,582 as of December 31, 2017 and December 31, 2018, respectively, and is included in “other liabilities” in the consolidated balance sheets. In connection with the administration of the Plan, the Company has purchased company-owned life insurance policies insuring the lives of certain employees. The cash surrender value of these policies was $0 and $1,613 as of December 31, 2017 and December 31, 2018, respectively. The cash surrender value of these insurance policies is included in “other assets” in the consolidated balance sheets. During the years ended December 31, 2017 and 2018, the change in the fair value of Plan assets was $0 and $(56), respectively, which is included in “other income (expense), net,” in the consolidated statements of income. During the year ended December 31, 2017 and 2018, the change in the fair value of deferred compensation liabilities was $0 and $(87), respectively, which is included in “selling, general and administrative expenses. |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | 18. 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. During the year ended December 31, 2012, the number of common shares authorized for issuance under the 2007 Omnibus Plan was increased by 8,858,823 shares as a result of a one-time adjustment to outstanding unvested share awards in connection with a special dividend payment. A brief summary of each plan is provided below: 2007 Omnibus Plan The Company adopted the 2007 Omnibus Plan on July 13, 2007 and amended and restated it on April 11, 2012. The 2007 Omnibus Plan provided for the grant of awards intended to qualify as incentive stock options, non-qualified stock options, share appreciation rights, restricted share awards, restricted share units, performance units, cash incentive awards and other equity-based or equity-related awards. Under the 2007 Omnibus Plan, the Company was authorized to grant awards for the issuance of up to a total of 23,858,823 common shares. 2017 Omnibus Plan On May 9, 2017, the Company’s shareholders approved the adoption of the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”), pursuant to which 15,000,000 Company common shares are available for issuance. No grants may be made under the 2007 Omnibus Plan after the date of adoption of the 2017 Omnibus Plan. Grants that were outstanding under the 2007 Omnibus Plan as of the Company’s adoption of the 2017 Omnibus Plan remain subject to the terms of the 2007 Omnibus Plan. Stock-based compensation costs relating to the foregoing plans during the years ended December 31, 2016, 2017 and 2018, were $24,686, $35,112 and $48,196, respectively, and 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. 18. Stock-based compensation (Continued) 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 connection with the determination of the fair value of options granted in 2016, 2017 and 2018: 2016 2017 2018 Dividend yield — 0.97% 0.95%-1.01% Expected life (in months) 84 84 84 Risk-free rate of interest for expected life 1.42% - 1.56% 2.25 % 2.67 %-2.93% Volatility 25.60% - 27.22% 24.28% 22.55-22.73% Volatility was calculated based on the historical volatility of the Company’s share price during a period equivalent to the estimated term of the option. The Company estimates the expected term of an option using the “simplified method,” which is based on the average of its contractual vesting term. The risk-free interest rate that the Company uses in the option valuation model is based on U.S. Treasury bonds with a term similar to the expected term of the options. The Company paid cash dividends of $0.06 and $0.075 per share in each quarter of fiscal 2017 and 2018, respectively. The Company has issued, and intends to continue to issue, new common shares upon stock option exercises and the vesting of share awards under its equity-based incentive compensation plans. A summary of stock option activity during the years ended December 31, 2016, 2017 and 2018 is set out below: Year ended December 31, 2016 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2016 5,986,845 $ 16.99 5.8 $ — Granted 860,000 26.80 — — Forfeited (145,000 ) 17.77 — — Expired — — — — Exercised (994,155 ) 14.98 — 10,982 Outstanding as of December 31, 2016 5,707,690 $ 18.65 5.8 $ 34,641 Vested as of December 31, 2016 and expected to vest thereafter (Note a) 5,457,701 $ 18.42 5.8 $ 34,150 Vested and exercisable as of December 31, 2016 2,746,191 $ 15.62 4.0 $ 23,960 Weighted average grant-date fair value of options granted during the period $ 8.50 18. Stock-based compensation (Continued) Year ended December 31, 2017 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2017 5,707,690 $ 18.65 5.8 $ — Granted 250,000 24.74 — — Forfeited (80,000 ) 20.63 — — Expired — — — — Exercised (743,045 ) 14.50 — 8,512 Outstanding as of December 31, 2017 5,134,645 $ 19.52 5.6 $ 62,743 Vested as of December 31, 2017 and expected to vest thereafter (Note a) 4,988,875 $ 19.36 5.6 $ 61,779 Vested and exercisable as of December 31, 2017 2,203,146 $ 16.17 4.1 $ 34,303 Weighted average grant-date fair value of options granted during the period $ 6.62 Year ended December 31, 2018 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2018 5,134,645 $ 19.52 5.6 $ — Granted 2,638,106 30.47 — — Forfeited (70,000 ) 27.65 — — Expired — — — — Exercised (441,076 ) 16.46 — 6,731 Outstanding as of December 31, 2018 7,261,675 $ 23.61 6.4 $ 34,143 Vested as of December 31, 2018 and expected to vest thereafter (Note a) 7,107,605 $ 23.50 6.4 $ 33,997 Vested and exercisable as of December 31, 2018 3,313,570 $ 17.69 3.7 $ 30,806 Weighted average grant-date fair value of options granted during the period $ 8.32 (a) Options expected to vest reflect an estimated forfeiture rate. Cash received by the Company upon the exercise of stock options amounted to $13,564, $14,896 and $10,772. Tax benefits from the exercise of stock options during the years ended December 31, 2016, 2017 and 2018 were $1,548 and $2,016 and $2,473 (including excess tax benefits of $1,004, $1,723 and $2,131), respectively. Income tax benefits recognized in relation to stock-based compensation charges, excluding excess tax benefits, during the years ended December 31, 2016, 2017 and 2018 were $6,446, $9,600 and $11,783, respectively. As of December 31, 2018, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $21,925 which will be recognized over the weighted average remaining requisite vesting period of 4.0 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 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. 18. Stock-based compensation (Continued) A summary of RSU activity during the years ended December 31, 2016, 2017 and 2018 is set out below: Year ended December 31, 2016 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2016 157,390 $ 17.67 Granted 95,553 25.49 Vested (Note b) (133,903 ) 20.66 Forfeited (1,135 ) 14.18 Outstanding as of December 31, 2016 117,905 $ 20.65 Expected to vest (Note a) 107,366 Year ended December 31, 2017 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2017 117,905 $ 20.65 Granted 1,533,836 26.36 Vested (Note c) (45,248 ) 18.31 Forfeited (1,242 ) 25.53 Outstanding as of December 31, 2017 1605,251 $ 26.17 Expected to vest (Note a) 1,371,567 Year ended December 31, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted 484,427 30.13 Vested (Note d) (358,697 ) 25.53 Forfeited (201,982 ) 27.09 Outstanding as of December 31, 2018 1,528,999 $ 27.45 Expected to vest (Note a) 1,360,048 (a) RSUs expected to vest reflect an estimated forfeiture rate. (b) Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016. 17,802 common shares underlying 34,035 of such RSUs were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. 52,482 RSUs vested in the year ended December 31, 2016, in respect of which 52,055 shares were issued in 2018 after withholding shares to the extent of minimum statutory withholding taxes. (c) Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). (d) 261,260 RSUs that vested during the period were net settled upon vesting by issuing 175,505 shares (net of minimum statutory tax withholding). 52,875 and 44,562 RSUs vested in the year ended December 31, 2017 and December 31, 2018 respectively, shares in respect of which will be issuable in 2019 after withholding shares to the extent of minimum statutory withholding taxes. 53,546 RSUs vested in the year ended December 31, 2015, 53,023 shares in respect of which were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. 92,692 RSUs vested in the year ended December 31, 2014, in respect of which 91,963 shares were issued in 2016 after withholding shares to the extent of minimum statutory withholding taxes. 18. Stock-based compensation (Continued) As of December 31, 2018, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $24,946, which will be recognized over the weighted average remaining requisite vesting period of 2.3 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 plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. During the performance period, the Company’s estimate of the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the years ended December 31, 2016, 2017 and 2018 is set out below: Year ended December 31, 2016 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2016 2,499,322 $ 19.95 2,499,322 Granted 1,518,374 27.93 3,343,335 Vested — — — Forfeited (252,842 ) 21.88 (325,817 ) Adjustment upon final determination of level of performance goal achievement (Note b) 7,274 22.72 Adjustment upon final determination of level of performance goal achievement (Note b) 7,274 Outstanding as of December 31, 2016 3,772,128 $ 23.04 5,524,114 Expected to vest (Note a) 2,226,489 18. Stock-based compensation (Continued) Year ended December 31, 2017 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2017 3,772,128 $ 23.04 5,524,114 Granted 1,811,292 25.22 3,622,584 Vested (Note c) (1,136,047 ) 16.78 (1,136,047 ) Forfeited (Note d) (1,583,913 ) 27.57 (1,627,313 ) Adjustment upon final determination of level of performance goal achievement (Note e) 37,480 25.22 Adjustment upon final determination of level of performance goal achievement (Note f) (3,482,398 ) Outstanding as of December 31, 2017 2,900,940 $ 24.40 2,900,940 Expected to vest (Note a) 2,657,685 Year ended December 31, 2018 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2018 2,900,940 $ 24.40 2,900,940 Granted 1,682,740 30.62 3,365,480 Vested (Note g) (1,087,751 ) 22.73 (1,087,751) Forfeited (258,237 ) 26.03 (305,737 ) Adjustment upon final determination of level of performance goal achievement (Note h) 474,800 30.68 Adjustment upon final determination of level of performance goal achievement (Note i) (1,160,530) Outstanding as of December 31, 2018 3,712,402 $ 28.40 3,712,402 Expected to vest (Note a) 3,261,069 (a) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (b) Represents an adjustment made in March 2016 to the number of shares underlying the PUs granted in 2015 upon certification of the level of achievement of the performance targets for such awards. 18. Stock-based compensation (Continued) (c) Vested PUs were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). (d) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards. (e) Represents a 2.7% increase in the number of target shares as a result of achievement of higher-than-target performance for certain PUs granted in 2017, partially offset by a 12.5% reduction as a result of achievement of lower-than-target performance for certain PUs granted in 2017. (f) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2017 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards. (g) Vested PUs were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). (h) Represents a 28.77% increase in the number of target shares expected to vest as a result of achievement of higher-than-target performance for PUs granted in 2018 partially offset by 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. ( i ) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2018 based on the level of achievement of the performance goals. Also includes 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. As of December 31, 2018, the total remaining unrecognized stock-based compensation cost related to PUs amounted to $55,985, which will be recognized over the weighted average remaining requisite vesting period of 1.8 years. Employee Stock Purchase Plan (ESPP) On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). 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 years ended December 31, 2016, 2017 and 2018, 146,685, 190,435 and 245,467 common shares, respectively, were issued under the ESPP. The ESPP is considered compensatory under FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation—Stock Compensation. The compensation expense for the ESPP during the years ended December 31, 2016, 2017 and 2018 was $428, $573 and $802, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital stock
Capital stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Capital stock | 19. Capital stock The Company’s authorized capital stock as of December 31, 2017 and 2018 consisted of 500 million common shares with a par value of $0.01 per share, and 250 million preferred shares with a par value of $0.01 per share. There were 192,825,207 and 189,346,101 common shares, and no preferred shares, issued and outstanding as of December 31, 2017 and 2018, respectively. Holders of common shares are entitled to one vote per share. Upon the liquidation, dissolution or winding up of the Company, common shareholders are entitled to receive a ratable share of the available net assets of the Company after payment of all debts and other liabilities. The common shares have no preemptive, subscription, redemption or conversion rights. The Company’s board of directors by resolution can establish one or more series of preferred shares having such par value, designations, dividend rates, relative voting rights, conversion or exchange rights, redemption rights, liquidation rights and other relative participation, optional or other rights, qualifications, limitations or restrictions as may be fixed by the board of directors without shareholder approval. Such rights, preferences, powers and limitations as may be established could also have the effect of discouraging an attempt to obtain control of the Company. These preferred shares are of the type commonly known as “blank-check” preferred shares. Under Bermuda law, the Company may declare and pay dividends from time to time unless there are reasonable grounds for believing that the Company is or would, after the payment, be unable to pay its liabilities as they become due or that the realizable value of its assets would thereby be less than the aggregate of its liabilities, its issued share capital, and its share premium accounts. Under the Company’s bye-laws, each common share is entitled to dividends if, as and when dividends are declared by the Company’s board of directors. There are no restrictions in Bermuda on the Company’s ability to transfer funds (other than funds denominated in Bermuda dollars) in or out of Bermuda or to pay dividends to U.S. residents who are holders of common shares. The Company’s ability to declare and pay cash dividends is restricted by its debt covenants. Share Repurchases As of December 31, 2016, the Company’s board of directors (the “Board”) had authorized the Company to repurchase up to $750,000 in value of the Company’s common shares under its share repurchase program first announced in February 2015. On February 10, 2017 the Board approved up to an additional $500,000 in share repurchases, bringing the total authorization under the Company’s existing program to $1,250,000. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. On March 29, 2017, the Company entered into an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (the “Dealer”) to repurchase Company common shares for an aggregate purchase price of $200,000. Pursuant to the ASR agreement, as amended in November 2017, the Company paid the aggregate purchase price to the Dealer upfront and received an initial delivery of 6,578,947 common shares on March 30, 2017, an additional delivery of 350,006 common shares on December 29, 2017 and a final delivery of 163,975 common shares on January 17, 2018 upon final settlement of the transaction. The weighted average price per share of the common shares delivered was $28.20. The Company’s purchase of its common shares under the ASR has been recorded as a reduction in retained earnings. All repurchased shares have been retired. The final number of common shares repurchased by the Company under the ASR agreement was based on the volume-weighted average share price of the Company’s common shares during the term of the transaction, less a discount and subject to adjustments pursuant to the terms of the ASR agreement. The ASR agreement contains customary provisions, including, among other things, with respect to mechanisms to determine the number of shares or the amount of cash that will be delivered at settlement, the required timing of delivery upon settlement, specific circumstances under which adjustments may be made to the repurchase transaction, and specific circumstances under which the repurchase transaction may be canceled prior to the scheduled maturity. During the years ended December 31, 2018 and December 31, 2017, the Company also purchased 4,921,192 and 808,293 of its common shares, respectively, on the open market at a weighted average price of $31.30 and $24.48 per share, respectively, for an aggregate cash amount of $154,058 and $19,784, respectively. 19. Capital stock (Continued) 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 year ended December 31, 2016, December 31, 2017 and December 31, 2018, $279, $16 and $98, 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, June 28, 2017, September 21, 2017, and December 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 an 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, June 20, 2018, September 19, 2018 and December 19, 2018, the Company paid dividends of $0.075 per share, amounting to $14,408, $14,240, $14,253 and $14,201 in the aggregate, to shareholders of record as of March 9, 2018, June 8, 2018, September 10, 2018 and December 10, 2018, respectively. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | 20. Earnings per share The Company calculates earnings per share in accordance with FASB guidance on Earnings per Share. Basic and diluted earnings per common share give effect to the change in the number of common shares outstanding. The calculation of basic earnings per common share was determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding. The potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, common shares to be issued under the ESPP and performance units, have been included in the computation of diluted net earnings per share and number of weighted average shares outstanding, except where the result would be anti-dilutive. The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 781,215, 1,007,480 and 2,410,230 for the years ended December 31, 2016, 2017 and 2018, respectively. Year ended December 31, 2016 2017 2018 Net income available to Genpact Limited common shareholders $ 269,684 $ 263,111 $ 282,019 Weighted average number of common shares used in computing basic earnings per common share 206,861,536 193,864,755 190,674,740 Dilutive effect of stock-based awards 3,264,487 3,184,797 3,305,298 Weighted average number of common shares used in computing dilutive earnings per common share 210,126,023 197,049,552 193,980,038 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 1.30 $ 1.36 $ 1.48 Diluted $ 1.28 $ 1.34 $ 1.45 |
Cost of revenue
Cost of revenue | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | 21. Cost of revenue Cost of revenue consists of the following: Year ended December 31, 2016 2017 2018 Personnel expenses $ 1,061,134 $ 1,153,479 $ 1,322,651 Operational expenses 446,922 481,012 543,006 Depreciation and amortization 46,284 46,947 56,111 $ 1,554,340 $ 1,681,438 $ 1,921,768 |
Selling, general and administra
Selling, general and administrative expenses | 12 Months Ended |
Dec. 31, 2018 | |
Selling General And Administrative Expenses [Abstract] | |
Selling, general and administrative expenses | 22. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Year ended December 31, 2016 2017 2018 Personnel expenses $ 469,894 $ 501,059 $ 518,897 Operational expenses 174,060 178,573 166,437 Depreciation and amortization 9,013 9,829 8,531 $ 652,967 $ 689,461 $ 693,865 |
Other operating (income) expens
Other operating (income) expense, net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other operating (income) expense, net | 23. Other operating (income) expense, net Year ended December 31, 2016 2017 2018 Other operating (income) expense $ (1,266 ) $ (7,277 ) $ (455 ) Provision for impairment of intangible assets and property, plant and equipment 11,195 9,311 4,265 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) (14,869 ) (3,695 ) (5,655 ) Other operating (income) expense, net $ (4,940 ) $ (1,661 ) $ (1,845 ) |
Interest income (expense), net
Interest income (expense), net | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift Interest [Abstract] | |
Interest income (expense), net | 24. Interest income (expense), net Interest income (expense), net consists of the following: Year ended December 31, 2016 2017 2018 Interest income $ 7,247 $ 8,182 $ 11,388 Interest expense (23,431 ) (39,917 ) (48,507 ) Interest income (expense), net $ (16,184 ) $ (31,735 ) $ (37,119 ) |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 25. Income taxes Income tax expense (benefit) for the years ended December 31, 2016, 2017 and 2018 is allocated as follows: Year ended December 31, 2016 2017 2018 Income from continuing operations $ 62,098 $ 59,742 $ 80,763 Other comprehensive income: Unrealized gains (losses) on cash flow hedges 23,809 457 (6,647 ) Retirement benefits (1,885 ) 670 (1,407 ) Retained earnings: Deferred tax benefit recognized on early adoption of ASU 2016-09 (24,912 ) — — Reclassification from AOCI on early adoption of ASU 2018-02 — — 2,265 Deferred tax expense recognized on adoption of ASU 2014-09 — — 5,303 Accumulated other comprehensive income: Reclassification to retained earnings on early adoption of ASU 2018-02 — — (2,265 ) The components of income before income tax expense from continuing operations are as follows: Year ended December 31, 2016 2017 2018 Domestic (U.S.) $ 44,110 $ 8,440 $ 49,986 Foreign (Non-U.S.) 285,535 312,143 312,035 Income before income tax expense $ 329,645 $ 320,583 $ 362,021 Income tax expense (benefit) attributable to income from continuing operations consists of: Year ended December 31, 2016 2017 2018 Current tax expense : Domestic (U.S. federal) $ 78 $ 3,380 $ 6,466 Domestic (U.S. state) 1,069 1,268 3,508 Foreign (Non-U.S.) 30,497 65,485 64,735 $ 31,644 $ 70,133 $ 74,709 Deferred tax expense (benefit) : Domestic (U.S. federal) $ 11,379 $ 3,549 $ 6,577 Domestic (U.S. state) (459 ) (2,809 ) (1,176 ) Foreign (Non-U.S.) 19,534 (11,131 ) 653 $ 30,454 $ (10,391 ) $ 6,054 Total income tax expense (benefit) $ 62,098 $ 59,742 $ 80,763 25. Income taxes (Continued) Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016 to income before income taxes, as a result of the following: Year ended December 31, 2016 2017 2018 Income before income tax expense $ 329,645 $ 320,583 $ 362,021 Statutory tax rates 35 % 35 % 21 % Computed expected income tax expense 115,376 112,204 76,024 Increase (decrease) in income taxes resulting from: Foreign tax rate differential (18,574 ) (25,224 ) 23,373 Tax benefit from tax holiday (32,893 ) (35,814 ) (24,968 ) Non-deductible expenses 4,559 3,985 3,245 Effect of change in tax rates 353 2,778 (147 ) Change in valuation allowance (4,830 ) 9,041 27,826 Unrecognized tax benefits (627 ) 1,611 3,008 Other* (1,266 ) (8,839 ) (27,598 ) Reported income tax expense (benefit) $ 62,098 $ 59,742 $ 80,763 *Following the transfer/closure of certain affiliated entities, deferred tax liabilities recorded against the outside basis difference were reversed amounting to $0, $9,600, $18,510 during the year ended December 31, 2016, 2017 and 2018. It was not more likely than not that the resulting net deferred tax asset would be realized. Therefore, a full valuation allowance was established to offset the reduction in deferred tax liabilities. A portion of the profits of the Company’s operations is exempt from income tax in India. One of the Company’s Indian subsidiaries has ten units eligible for a tax holiday as a special economic zone unit in respect of 100% of the export profits it generates for a period of 5 years from commencement, 50% of such profits for the next 5 years (year 6 to year 10 from commencement) and 50% of the profits for an additional period of 5 years (year 11 to year 15 from commencement), subject to the satisfaction of certain capital investment requirements. The tax holidays for the Company’s existing special economic zone units will begin to expire on March 31, 2022 and will have fully expired on March 31, 2030, assuming the Company satisfies the capital investment requirements. The effect of the Indian tax holiday on basic earnings per share was $0.19, $0.18 and $0.13, respectively, for the years ended December 31, 2016, 2017 and 2018. The effect of the tax holiday on diluted earnings per share was $0.18, $0.18 and $0.13, respectively, for the years ended December 31, 2016, 2017 and 2018. 25. Income taxes (Continued) The components of the Company’s deferred tax balances as of December 31, 2017 and 2018 are as follows: As of December 31, 2017 2018 Deferred tax assets Net operating loss carryforwards $ 55,500 $ 64,013 Accrued liabilities and other expenses 41,177 36,812 Provision for doubtful debts 10,509 9,650 Property, plant & equipment and leased assets 6,179 7,904 Unrealized losses on cash flow hedges, net 275 672 Share-based compensation 19,789 18,236 Retirement benefits 5,817 7,559 Contract liabilities 22,948 3,150 Tax credit carryforwards 35,322 22,409 Other 6,662 8,885 Gross deferred tax assets $ 204,178 $ 179,290 Less: Valuation allowance (24,549 ) (51,986 ) Total deferred tax assets $ 179,629 $ 127,304 Deferred tax liabilities Intangible assets $ 23,545 $ 17,975 Property, plant and equipment 1,131 5,493 Deferred cost 33,816 2,725 Investments in foreign subsidiaries not indefinitely reinvested 18,949 4,835 Unrealized gains on cash flow hedges, net 14,711 8,990 Goodwill 7,145 12,957 Other 10,150 7,843 Total deferred tax liabilities $ 109,447 $ 60,818 Net deferred tax asset $ 70,182 $ 66,486 As of December 31, Classified as 2017 2018 Deferred tax assets Non-current $ 76,929 $ 74,566 Deferred tax liabilities Non-current 6,747 8,080 $ 70,182 $ 66,486 The change in the total valuation allowance for deferred tax assets as of December 31, 2016, 2017 and 2018 is as follows: Year ended December 31, 2016 2017 2018 Opening valuation allowance $ 20,091 $ 14,746 $ 24,549 Reduction during the year (7,299 ) (3,957 ) (2,307 ) Addition during the year 1,954 13,760 29,744 Closing valuation allowance $ 14,746 $ 24,549 $ 51,986 25. Income taxes (Continued) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences are deductible. Management considers the scheduled reversal of deferred tax liabilities and projected taxable income in making this assessment. In order to fully realize a deferred tax asset, the Company must generate future taxable income prior to the expiration of the deferred tax asset under applicable law. Based on the level of historical taxable income and projections for future taxable income over the periods during which the Company’s deferred tax assets are deductible, management believes that it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances as of December 31, 2018. The amount of the Company’s deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. In 2016, one of the Company’s subsidiaries filed amended tax returns with respect to prior years, resulting in revised assessments, higher taxable income and the utilization of operating loss carryforwards. The use of operating loss carryforwards resulted in the complete reversal of the subsidiary’s remaining valuation allowance of $3,377. On January 1, 2016, the Company elected the early adoption of ASU 2016-09, which was applied using a modified retrospective approach. Accordingly, excess tax benefits relating to the exercise of stock options prior to December 31, 2015 amounting to $24,912 were recorded through retained earnings. For the years ended December 31, 2016 and 2017 and 2018, the Company recognized net excess tax benefits of $1,004, $1,723 and $2,131 in income tax expense attributable to continuing operations. As of December 31, 2018, the Company’s deferred tax assets related to net operating loss carryforwards of $276,040 amounted to $59,153 (excluding state net operating losses). Net operating losses of subsidiaries in the United Kingdom, Singapore, Malaysia, Australia, Brazil, Israel, South Africa, Hong Kong, Germany, the United States (for 2018) and Luxembourg (for 2016 and prior years) amounted to $164,014 and can be carried forward for an indefinite period. 25. Income taxes (Continued) The Company’s remaining tax loss carryforwards expire as set forth in the table below: US – Federal Europe Others Year ending December 31, 2020 $ — 2952 $ — 2021 — 1,121 2,347 2022 — 5,904 105 2023 — 6,639 1,426 2024 — 771 7,748 2025 — 27,147 8,520 2026 — 234 1,396 2027 — 856 5,071 2028 — 34 2,716 2029 — — 672 2034 — 18,820 — 2035 340 8,838 — 2036 477 — — 2037 7252 — — 2038 — — 640 $ 8,069 $ 73,316 $ 30,641 In the table above, “Europe” includes net operating losses of subsidiaries in Hungary, Poland, the Netherlands, the Czech Republic, Slovakia, Luxembourg, Latvia and Portugal, while “Others” includes net operating losses of subsidiaries in Mexico, Japan, China, India, New Zealand and Canada. As of December 31, 2018, the Company had additional deferred tax assets for U.S. state and local tax loss carryforwards amounting to $4,859 with varying expiration periods between 2019 and 2037. As of December 31, 2018, the company had a total foreign tax credit carryforward of $22,409, which will expire as set forth in the table below: Year ending December 31, Amount 2023 355 2024 2,819 2025 8,395 2026 5,728 2027 1,250 2028 3,862 $ 22,409 With exceptions, the Company has not accrued any income, distribution or withholding taxes that would arise if the undistributed earnings of the Company’s foreign (non-Bermuda) subsidiaries which cannot be repatriated in a tax-free manner were repatriated. Due to the Company’s changing corporate structure, the various methods that are available to repatriate earnings, and uncertainty relative to the applicable taxes at the time of repatriation, it is not practicable to determine the amount of tax that would be imposed upon repatriation. If undistributed earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the company will accrue the applicable amount of taxes associated with such earnings at that time. 25. Income taxes (Continued) As of December 31, 2018, $363,560 of the Company’s $368,396 in cash and cash equivalents was held by the Company’s foreign (non-Bermuda) subsidiaries. $131,617 of this cash is held by foreign subsidiaries for which the Company expects to incur and has accrued a deferred tax liability on the repatriation of $25,043 of retained earnings. $231,943 of the Company’s cash and cash equivalents is held by foreign subsidiaries in jurisdictions where no tax is expected to be imposed upon repatriation of the retained earnings of such foreign subsidiaries or is being indefinitely reinvested. 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 that affect 2017. 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. As a result of the reduction in the federal corporate income tax rate, the Company has revalued its net deferred tax assets, excluding tax credits to the extent affected by changes in the law as of December 31, 2017. Based on this revaluation, the Company has recorded a net income tax expense of $3,182 to reduce its net deferred tax asset balance, which was recorded as additional income tax expense for the year ended December 31, 2017. The Company completed its accounting for the transition tax liability under the Tax Act during the third quarter of 2018 without any impact on income tax expense. There is no material change in the estimates as of September 30, 2018 based on the final calculation of the earnings and profit pool of the Company’s controlled foreign corporations based on the Company’s U.S. tax returns. 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 (loss) (“AOCI”). As of December 31, 2017, due to a reduction in the U.S. federal corporate income tax rate under the Tax Act from 35% to 21%, the Company revalued its net deferred tax assets, including deferred tax liabilities recorded through AOCI. Based on this revaluation, the Company recorded an income tax benefit 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. 25. Income taxes (Continued) The following table summarizes activities related to our unrecognized tax benefits from January 1 to December 31 for each of 2016, 2017 and 2018: 2016 2017 2018 Opening balance at January 1 $ 26,357 $ 23,467 $ 26,060 Increase related to prior year tax positions, including recorded in acquisition accounting 370 2,582 1,851 Decrease related to prior year tax positions (1,506 ) (1,398 ) (153 ) Decrease related to divesture of business (345 ) — — Decrease related to prior year tax position due to lapse of applicable statute of limitation (2,122 ) (1,019 ) (1,841 ) Increase related to current year tax positions, including recorded in acquisition accounting 3,225 1,661 2,408 Decrease related to settlements with tax authorities (2,000 ) — — Effect of exchange rate changes (512 ) 767 (1,603 ) Closing balance at December 31 $ 23,467 $ 26,060 $ 26,722 As of December 31, 2016, 2017 and 2018, the Company had unrecognized tax benefits amounting to $22,469, $24,877 and $25,485, respectively, which, if recognized, would impact the effective tax rate. As of December 31, 2016, 2017 and 2018, the Company had accrued $3,856, $4,614 and $5,081, respectively, in interest relating to unrecognized tax benefits. During the years ended December 31, 2016, 2017 and 2018, the Company recognized $367, $758 and $467, respectively, including exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2016, 2017 and 2018, the company had accrued $977, $1,033 and $995, respectively, for penalties. In the next twelve months and for all tax years that remain open to examinations by U.S. federal and various state, local, and non-U.S. tax authorities, the Company estimates that it is reasonably possible that the total amount of its unrecognized tax benefits will vary. However, the Company does not expect significant changes within the next twelve months other than depending on the progress of tax matters or examinations with various tax authorities, which are difficult to predict. With exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax audits by taxing authorities for years prior to 2015. The Company’s subsidiaries in India and China are open to examination by relevant taxing authorities for tax years beginning on or after April 1, 2011 and January 1, 2008, respectively. The Company regularly reviews the likelihood of additional tax assessments and adjusts its reserves as additional information or events require. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment reporting | 26. Segment reporting The Company manages various types of business process and information technology services in an integrated manner for clients in various industries and geographic locations. The Company’s Chief Executive Officer, who has been identified as the Chief Operation Decision Maker (CODM), reviews financial information prepared on a consolidated basis, accompanied by disaggregated information about revenue and adjusted operating income by identified business units. The identified business units are organized for operational reasons and represent either services-based, customer-based, industry-based or geography-based units. There is significant overlap between the manner in which the business units are organized. Additionally, the composition and organization of the business units is fluid and the structure changes regularly in response to growth of the overall business, acquisitions and changes in the reporting structure, clients, services, industries served, and delivery centers. Based on an overall evaluation of all facts and circumstances, and after combining operating segments with similar economic characteristics that comply with other aggregation criteria specified in the FASB guidance on segment reporting, the Company has determined that it operates as a single reportable segment. 26. Segment reporting (Continued) Net revenues by customer type are as follows: Year ended December 31, 2016 2017 2018 GE $ 357,894 $ 269,217 $ 268,210 Global Clients 2,212,862 2,467,712 2,732,580 Total net revenues $ 2,570,756 $ 2,736,929 $ 3,000,790 Net revenues by service type are as follows: Year ended December 31, 2016 2017 2018 Business process outsourcing $ 2,083,450 $ 2,264,335 $ 2,502,806 Information technology services 487,306 472,594 497,984 Total net revenues $ 2,570,756 $ 2,736,929 $ 3,000,790 Revenues from clients based on the industry serviced are as follows: Year ended December 31, 2016 2017 2018 Banking, financial services and insurance $ 1,021,609 $ 1,090,134 $ 1,099,189 Consumer goods, retail, life sciences and healthcare 769,432 832,088 891,640 High tech, manufacturing and services 779,715 814,707 1,009,961 Total net revenues $ 2,570,756 $ 2,736,929 $ 3,000,790 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. Net revenues from geographic areas based on the location of the Company’s service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. Year ended December 31, 2016 2017 2018 India $ 1,804,113 $ 1,712,783 $ 1,739,455 Asia, other than India 249,839 286,338 327,462 North and Latin America 282,434 455,059 641,716 Europe 234,370 282,749 292,157 Total net revenues $ 2,570,756 $ 2,736,929 $ 3,000,790 Revenues from GE comprised 14%, 10% and 9% of the Company’s consolidated total net revenues in 2016, 2017 and 2018, respectively. No other customer accounted for 10% or more of the Company’s consolidated total net revenues during these periods. Property, plant and equipment, net by geographic region are as follows: As of December 31, 2017 2018 India $ 125,490 $ 130,824 Asia, other than India 15,899 14,866 Americas 38,438 46,763 Europe 27,203 20,262 Total $ 207,030 $ 212,715 |
Contract balances
Contract balances | 12 Months Ended |
Dec. 31, 2018 | |
Revenues [Abstract] | |
Contract balances | 27. 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: As of December 31, 2018 Particulars Advance from customers Deferred transition revenue Opening balance $ 26,266 $ 101,785 Impact of opening balance offset — $ 21,348 Gross opening balance $ 26,266 $ 123,133 Additions 33,328 67,838 Effect of business combinations 273 75 Revenue recognized (32,091 ) (68,697 ) Currency translation adjustments (1,063 ) (1,097 ) Gross closing balance $ 26,713 $ 121,252 Impact of closing balance offset with contract asset (3,821 ) (25,604 ) Closing balance (Note a) $ 22,892 $ 95,648 (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 December 31, 2018: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 95,670 41,830 40,128 12,619 1,093 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. The following table provides details of the Company’s contract assets: Particulars As of December 31,2018 Opening balance $ 43,366 Impact of opening balance offset 21,348 Gross opening balance $ 64,714 Additions 48,216 Reduction in revenue recognized (38,470 ) Gross closing balance $ 74,460 Impact of closing balance offset with contract liability (29,425 ) Closing balance (Note b) $ 45,035 (b) Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. 27. Contract balances (Continued) The following table provides details of the company’s contract cost assets: As of December 31, 2018 Particulars Sales incentive programs Transition activities Opening balance $ 23,227 $ 139,284 Closing balance 25,891 134,302 Amortization 14,788 70,775 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related party transactions | 28. Related party transactions The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates. The Company’s related party transactions can be categorized as follows: Revenue from services In the years ended December 31, 2016, 2017, and 2018, the Company recognized net revenues of $335, $398 and $714, respectively, from a client that is also a significant shareholder of the Company. In the years ended December 31, 2016 and 2017, the Company recognized net revenues of $8,077 and $5,400, respectively, from a client that was a non-consolidating affiliate of the Company. As of June 30, 2017, this non-consolidated affiliate ceased to be a related party. Cost of revenue from services The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in cost of revenue. For the years ended December 31, 2016, 2017 and 2018, cost of revenue includes an amount of $2,067, $2,043 and $1,094, respectively, attributable to the cost of such services provided by the Company’s non-consolidating affiliates. Selling, general and administrative expenses The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the years ended December 31, 2016, 2017 and 2018, selling, general and administrative expenses include an amount of $291, $315 During the years ended December 31, 2016, 2017 and 2018, the Company engaged a significant shareholder of the Company to provide services to the Company at a cost of $58, $57 and $30, respectively. Investment in equity affiliates During the year ended December 31, 2017, the Company invested $496 in its non-consolidating affiliates. During the year ended December 31, 2017, the Company recorded a charge of $2,849 related to an investment in one of its non-consolidating affiliates. This charge has been included in equity-method investment activity, net in the Company’s consolidated statement of income. As of December 31, 2017 and 2018, the Company’s investments in its non-consolidating affiliates amounted to $886 and $836, respectively. Others During the years ended December 31, 2016 and 2017, the Company entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $1,162 and $477, respectively. During the year ended December 31, 2017, the Company entered into transactions with a client that is a significant shareholder of the Company for certain cost reimbursements amounting to $127. 28. Related party transactions (Continued) During the year ended December 31, 2017, the Company made a payment of $3,847 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. As of June 30, 2017 this non-consolidating affiliate ceased to be a related party. |
Other Income (expense), net
Other Income (expense), net | 12 Months Ended |
Dec. 31, 2018 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | 29. Other Income (expense), net Year ended December 31, 2016 2017 2018 Government incentives $ - $ 26,882 $ 36,099 Other income/(expense) 9,691 (3,296 ) (338 ) Other Income (expense), net $ 9,691 $ 23,586 $ 35,761 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 30. Commitments and contingencies Capital commitments As of December 31, 2017 and 2018, the Company has committed to spend $8,314 and $4,859, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of such purchases. Bank guarantees The Company has outstanding bank guarantees amounting to $8,879 and $9,487 as of December 31, 2017 and 2018, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purposes of maintaining a bonded warehouse. These guarantees may be revoked by the government agencies if they suffer any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees. Other commitments The Company’s business process delivery centers in India are 100% export-oriented units or Software Technology Parks of India (“STPI”) units under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. |
Quarterly financial data (unaud
Quarterly financial data (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial data (unaudited) | 31. Quarterly financial data (unaudited) Three months ended Year ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 December 31, 2018 Total net revenues $ 688,912 $ 728,561 $ 747,978 $ 835,339 $ 3,000,790 Gross profit $ 244,588 $ 265,663 $ 266,566 $ 302,205 $ 1,079,022 Income from operations $ 63,761 $ 79,522 $ 94,028 $ 110,841 $ 348,152 Income before equity-method investment activity, net and income tax expense $ 76,009 $ 81,668 $ 97,724 $ 106,632 $ 362,033 Net income $ 63,934 $ 64,574 $ 73,603 $ 79,147 $ 281,258 Net (income) loss attributable to redeemable non-controlling interest $ 761 $ - $ - $ - $ 761 Net income attributable to Genpact Limited common shareholders $ 64,695 $ 64,574 $ 73,603 $ 79,147 $ 282,019 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.34 $ 0.34 $ 0.39 $ 0.42 $ 1.48 Diluted $ 0.33 $ 0.33 $ 0.38 $ 0.41 $ 1.45 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 192,816,626 190,132,664 190,024,924 189,724,744 190,674,740 Diluted 196,288,569 193,365,974 193,115,769 193,149,836 193,980,038 31. Quarterly financial data (unaudited) (Continued) Three months ended Year ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 December 31, 2017 Total net revenues $ 622,995 $ 670,697 $ 708,824 $ 734,413 $ 2,736,929 Gross profit $ 239,658 $ 256,189 $ 280,034 $ 279,610 $ 1,055,491 Income from operations $ 79,096 $ 80,959 $ 97,919 $ 73,305 $ 331,279 Income before equity-method investment activity, net and income tax expense $ 69,243 $ 84,582 $ 89,742 $ 81,559 $ 325,126 Net income $ 52,440 $ 69,102 $ 73,161 $ 66,138 $ 260,841 Net (income) loss attributable to redeemable non-controlling interest $ 898 $ (156 ) $ 584 $ 944 $ 2,270 Net income attributable to Genpact Limited common shareholders $ 53,338 $ 68,946 $ 73,745 $ 67,082 $ 263,111 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.27 $ 0.36 $ 0.38 $ 0.35 $ 1.36 Diluted $ 0.26 $ 0.36 $ 0.38 $ 0.34 $ 1.34 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 199,069,528 191,469,593 192,124,366 192,795,534 193,864,755 Diluted 202,655,937 193,732,406 194,947,699 196,862,168 197,049,552 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 32. Subsequent Events Dividend On February 7, 2019, the Company announced that its Board of Directors has approved a 13% increase in its quarterly cash dividend, representing a planned annual dividend of $0.34 per common share, increased from $0.30 per common share in 2018. The Board of Directors also declared a dividend for the first quarter of 2019 of $0.085 per common share, which will be paid on or about March 20, 2019 to shareholders of record as of the close of business on March 8, 2019. The declaration of any future dividends will be at the discretion of the Board of Directors and subject to Bermuda and other applicable laws. Secondary offering On February 15, 2019, the Company completed an additional secondary offering of its common shares pursuant to which certain of our shareholders affiliated with Bain Capital Investors, LLC, namely Glory Investments A Limited and its affiliated assignees, together with their co-investor, GIC Private Limited (the “Selling Shareholders”), sold 10.0 million common shares at a price of $32.215 per share in an underwritten public offering. All of the common shares were sold by the Selling Shareholders and, as a result, the Company did not receive any of the proceeds from the offering. |
Guarantor financial information
Guarantor financial information | 12 Months Ended |
Dec. 31, 2018 | |
Guarantor Financial Information [Abstract] | |
Guarantor financial information | 33. Guarantor financial information In March 2017, Genpact Luxembourg S.à r.l. (the “Issuer”), a subsidiary of the Company, issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering. See Note 14 for additional information. Condensed Consolidating Balance Sheet As of December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 Accounts receivable intercompany, net 89,958 — — (89,958 ) — Accounts receivable, net — — 774,184 — 774,184 Intercompany loans 447,578 1,300 1,835,608 (2,284,486 ) — Intercompany other receivable 33,224 52,783 117,537 (203,544 ) — Prepaid expenses and other current assets 2,242 1,278 208,957 — 212,477 Total current assets $ 585,799 $ 57,866 $ 3,289,380 $ (2,577,988 ) $ 1,355,057 Property, plant and equipment, Net 388 — 212,327 — 212,715 Intercompany loans 100,000 — 500,000 (600,000 ) — Deferred tax assets — — 74,566 — 74,566 Investment in subsidiaries 548,654 3,073,467 557,089 (4,179,210 ) — Investment in equity affiliates — — 836 — 836 Investment in debentures/bonds, intercompany 571,919 50,393 — (622,312 ) — Intercompany other receivable — 83,169 — (83,169 ) — Intangible assets, net — — 177,087 — 177,087 Goodwill — — 1,393,832 — 1,393,832 Contract cost assets — — 160,193 — 160,193 Other assets 682 — 154,477 — 155,159 Total assets $ 1,807,442 $ 3,264,895 $ 6,519,787 $ (8,062,679 ) $ 3,529,445 Liabilities and equity Current liabilities Short-term borrowings $ 100,000 $ — $ 195,000 $ — $ 295,000 Intercompany loans 128,572 1,849,537 306,377 (2,284,486 ) — Current portion of long-term debt 4,961 — 28,522 — 33,483 Accounts payable 1,636 520 40,428 — 42,584 Intercompany accounts payable — — 89,958 (89,958 ) — Income taxes payable — — 33,895 — 33,895 Intercompany other payable 47,844 70,973 84,727 (203,544 ) — Accrued expenses and other current liabilities 5,248 5,157 560,945 — 571,350 Total current liabilities $ 288,261 $ 1,926,187 $ 1,339,852 $ (2,577,988 ) $ 976,312 Long-term debt, less current portion 440,665 — 534,980 — 975,645 Deferred tax liabilities — — 8,080 — 8,080 Intercompany other payable — — 83,169 (83,169 ) — Non-current intercompany loans payable 500,000 — 722,312 (1,222,312 ) — Other liabilities 197 154 164,875 — 165,226 Total liabilities $ 1,229,123 $ 1,926,341 $ 2,853,268 $ (3,883,469 ) $ 2,125,263 Redeemable non-controlling interest — — — — — Shareholders' equity 578,319 1,338,554 3,666,519 (4,179,210 ) 1,404,182 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 1,807,442 $ 3,264,895 $ 6,519,787 $ (8,062,679 ) $ 3,529,445 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 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) year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 50,356 $ — $ 3,000,790 $ (50,356 ) $ 3,000,790 Cost of revenue — 5,188 1,916,580 — 1,921,768 Gross profit $ 50,356 $ (5,188 ) $ 1,084,210 $ (50,356 ) $ 1,079,022 Operating expenses: Selling, general and administrative expenses 11,324 23,703 709,260 (50,422 ) 693,865 Amortization of acquired intangible assets 48 — 38,802 — 38,850 Other operating (income) expense, net (17,599 ) — 15,754 — (1,845 ) Income (loss) from operations $ 56,583 $ (28,891 ) $ 320,394 $ 66 $ 348,152 Foreign exchange gains (losses), net 449 845 13,945 — 15,239 Interest income (expense), net (16,504 ) — (20,615 ) — (37,119 ) Intercompany interest income (expense), net 77,857 (19,279 ) (58,578 ) — — Other income (expense), net — — 35,761 — 35,761 Income (loss) before equity-method investment activity, net and income tax expense $ 118,385 $ (47,325 ) $ 290,907 $ 66 $ 362,033 Gain (loss) on equity-method investment activity, net 62,501 346,960 123,291 (532,764 ) (12 ) Income before income tax expense $ 180,886 $ 299,635 $ 414,198 $ (532,698 ) $ 362,021 Income tax expense 6,124 — 74,639 — 80,763 Net income $ 174,762 $ 299,635 $ 339,559 $ (532,698 ) $ 281,258 Net loss attributable to redeemable non-controlling interest — 761 — 761 Net income attributable to Genpact Limited shareholders $ 174,762 $ 299,635 $ 340,320 $ (532,698 ) $ 282,019 Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 46,722 $ — $ 2,736,929 $ (46,722 ) $ 2,736,929 Cost of revenue — — 1,681,438 — 1,681,438 Gross profit $ 46,722 $ — $ 1,055,491 $ (46,722 ) $ 1,055,491 Operating expenses: Selling, general and administrative expenses 9,859 21,076 728,145 (69,619 ) 689,461 Amortization of acquired intangible assets — — 36,412 — 36,412 Other operating (income) expense, net (3,412 ) — 1,751 — (1,661 ) Income (loss) from operations $ 40,275 $ (21,076 ) $ 289,183 $ 22,897 $ 331,279 Foreign exchange gains (losses), net 3,312 2 (1,318 ) — 1,996 Interest income (expense), net (11,375 ) — (20,360 ) — (31,735 ) Intercompany interest income (expense), net 47,547 (10,148 ) (37,399 ) — — Other income (expense), net 18,391 — 5,195 — 23,586 Income (loss) before equity-method investment activity, net and income tax expense $ 98,150 $ (31,222 ) $ 235,301 $ 22,897 $ 325,126 Gain (loss) on equity-method investment activity, net (15,058 ) 294,333 75,657 (359,475 ) (4,543 ) Income before income tax expense $ 83,092 $ 263,111 $ 310,958 $ (336,578 ) $ 320,583 Income tax expense 7,435 — 52,307 — 59,742 Net income $ 75,657 $ 263,111 $ 258,651 $ (336,578 ) $ 260,841 Net loss attributable to redeemable non-controlling interest — — 2,270 — 2,270 Net income attributable to Genpact Limited shareholders $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 39,518 $ — $ 2,570,756 $ (39,518 ) $ 2,570,756 Cost of revenue — — 1,554,340 — 1,554,340 Gross profit $ 39,518 $ — $ 1,016,416 $ (39,518 ) $ 1,016,416 Operating expenses: Selling, general and administrative expenses 9,499 12,772 672,680 (41,984 ) 652,967 Amortization of acquired intangible assets — — 27,183 — 27,183 Other operating (income) expense, net (4,043 ) (500 ) (397 ) — (4,940 ) Income (loss) from operations $ 34,062 $ (12,272 ) $ 316,950 $ 2,466 $ 341,206 Foreign exchange gains (losses), net (1,633 ) 57 4,206 — 2,630 Interest income (expense), net (1,358 ) — (14,826 ) — (16,184 ) Intercompany interest income (expense), net 81,359 - (81,359 ) — — Other income (expense), net (829 ) (3,390 ) 13,910 — 9,691 Income (loss) before equity-method investment activity, net and income tax expense $ 111,601 $ (15,605 ) $ 238,881 $ 2,466 $ 337,343 Gain (loss) on equity-method investment activity, net 29,969 285,289 133,186 (456,142 ) (7,698 ) Income before income tax expense $ 141,570 $ 269,684 $ 372,067 $ (453,676 ) $ 329,645 Income tax expense 8,384 — 53,714 — 62,098 Net income $ 133,186 $ 269,684 $ 318,353 $ (453,676 ) $ 267,547 Net loss attributable to redeemable non-controlling interest — — 2,137 — 2,137 Net income attributable to Genpact Limited shareholders $ 133,186 $ 269,684 $ 320,490 $ (453,676 ) $ 269,684 Condensed Consolidating Statement of Comprehensive Income (Loss) Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 174,762 $ 299,635 $ 340,320 $ (532,698 ) $ 282,019 $ (761 ) Other comprehensive income: Currency translation adjustments (72,071 ) (109,656 ) (109,656 ) 181,727 (109,656 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 498 (46,293 ) (46,293 ) 45,795 (46,293 ) — Retirement benefits, net of taxes (190 ) 1,454 1,454 (1,264 ) 1,454 — Other comprehensive income (loss) (71,763 ) (154,495 ) (154,495 ) 226,258 (154,495 ) (424 ) Comprehensive income (loss) $ 102,999 $ 145,140 $ 185,825 $ (306,440 ) $ 127,524 $ (1,185 ) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 $ (2,270 ) Other comprehensive income: Currency translation adjustments 74,716 93,871 93,871 (168,587 ) 93,871 (341 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 9,788 12,611 12,611 (22,399 ) 12,611 - Retirement benefits, net of taxes 475 (3,787 ) (3,787 ) 3,312 (3,787 ) - Other comprehensive income (loss) 84,979 102,695 102,695 (187,674 ) 102,695 (341 ) Comprehensive income (loss) $ 160,636 $ 365,806 $ 363,616 $ (524,252 ) $ 365,806 $ (2,611 ) Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 133,186 $ 269,684 $ 320,490 $ (453,676 ) $ 269,684 $ (2,137 ) Other comprehensive income: Currency translation adjustments (31,679 ) (46,340 ) (46,340 ) 78,019 (46,340 ) 104 Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 42,016 43,742 43,742 (85,758 ) 43,742 - Retirement benefits, net of taxes (717 ) (4,042 ) (4,042 ) 4,759 (4,042 ) - Other comprehensive income (loss) 9,620 (6,640 ) (6,640 ) (2,980 ) (6,640 ) 104 Comprehensive income (loss) $ 142,806 $ 263,044 $ 313,850 $ (456,656 ) $ 263,044 $ (2,033 ) Condensed Consolidating Cash Flow Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for)/provided by operating activities $ (266,889 ) $ 11,905 $ 25,399 $ 569,096 $ 339,511 Investing activities Purchase of property, plant and equipment — — (84,978 ) — (84,978 ) Payment for acquired/internally generated intangible assets (including intangibles under development) — — (75,439 ) — (75,439 ) Proceeds from sale of property, plant and equipment — — 668 — 668 Investment in equity affiliates — — - — - Investment in subsidiaries (97,730 ) — - 97,730 - Dividend received - — - - - Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany 91,760 (50,393 ) - (41,368 ) - Payment for business acquisitions, net of cash acquired — — (111,571 ) — (111,571 ) Payment for purchase of redeemable non-controlling interest — — (4,730 ) — (4,730 ) Net cash (used for)/provided by investing activities $ (5,970 ) $ (50,393 ) (276,050 ) $ 56,362 $ (276,050 ) Financing activities Repayment of capital lease obligations — — (2,395 ) — (2,395 ) Payment of debt issuance costs — — (4,293 ) — (4,293 ) Proceeds from long-term debt 100,000 — 29,186 — 129,186 Repayment of long-term debt (2,450 ) — (163,736 ) — (166,186 ) Proceeds from short-term borrowings 100,000 — 150,000 — 250,000 Repayment of Short-term borrowings — — (125,000 ) — (125,000 ) Proceeds from intercompany loans 172,047 308,500 334,320 (814,867 ) — Repayment of intercompany loans (81,479 ) (56,500 ) (107,792 ) 245,771 — Proceeds from issuance of common shares under stock-based compensation plans — 14,034 — — 14,034 Proceeds from issuance of common shares — — 113,954 (113,954 ) — Payment for net settlement of stock-based awards — (15,919 ) — — (15,919 ) Payment of earn-out/deferred consideration (1,797 ) — (1,559 ) — (3,356 ) Dividend paid — (57,102 ) (16,224 ) 16,224 (57,102 ) Payment for stock repurchased and retired — (154,058 ) — — (154,058 ) Payment for expenses related to stock repurchase — (98 ) — — (98 ) Payment for redemption of debentures/(proceeds) from issuance of bonds, intercompany — — (41,366 ) 41,366 — Net cash (used for)/provided by financing activities $ 286,321 $ 38,857 $ 165,095 $ (625,460 ) $ (135,187 ) Effect of exchange rate changes (5,172 ) — (59,174 ) — (64,346 ) Net increase (decrease) in cash and cash equivalents 13,462 369 (85,557 ) — (71,726 ) 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 $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 Condensed Consolidating Cash Flow Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for)/provided by operating activities $ (315,877 ) $ (8,345 ) $ 511,847 $ 171,453 $ 359,078 Investing activities Purchase of property, plant and equipment — — (57,231 ) — (57,231 ) Payment for acquired/internally generated intangible assets (including intangibles under development) — — (16,441 ) — (16,441 ) Proceeds from sale of property, plant and equipment — — 1,738 — 1,738 Investment in equity affiliates (523 ) — 27 — (496 ) Investment in subsidiaries (3,638 ) — 51,127 (47,489 ) — Payment for business acquisitions, net of cash acquired — — (284,822 ) — (284,822 ) Proceeds from divestiture of business, net of cash divested — — (4,738 ) — (4,738 ) Net cash (used for)/provided by investing activities $ (4,161 ) $ — $ (310,340 ) $ (47,489 ) $ (361,990 ) Financing activities Repayment of capital lease obligations — — (2,708 ) — (2,708 ) Payment of debt issuance costs (2,630 ) — — — (2,630 ) Proceeds from long-term debt 350,000 — — — 350,000 Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 295,000 — 295,000 Repayment of short-term borrowings — — (285,000 ) — (285,000 ) Proceeds from intercompany loans — 263,886 — (263,886 ) — Repayment of intercompany loans (35,000 ) — (80,328 ) 115,328 — Proceeds from issuance of common shares under stock-based compensation plans — 15,528 — — 15,528 Payment for net settlement of stock-based awards — (10,296 ) — — (10,296 ) Payment of earn-out/deferred consideration — — (6,219 ) — (6,219 ) Dividend paid — (46,686 ) — — (46,686 ) Payment for stock repurchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock repurchase — (16 ) — — (16 ) Change in amounts due from/ due to consolidated affiliates — — (24,594 ) 24,594 — Excess tax benefit on stock-based compensation — — — — — Net cash (used for)/provided by financing activities $ 312,370 $ 2,632 $ (143,849 ) $ (123,964 ) $ 47,189 Effect of exchange rate changes 960 — 36,608 — 37,568 Net increase (decrease) in cash and cash equivalents (7,668 ) (5,713 ) 57,658 — 44,277 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 $ 4,507 $ 2,136 $ 497,825 $ — $ 504,468 Condensed Consolidating Cash Flow Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for)/provided by operating activities $ (42,212 ) $ 25,592 $ (66,519 ) $ 428,911 $ 345,772 Investing activities Purchase of property, plant and equipment (625 ) — (81,301 ) — (81,926 ) Payment for acquired/internally generated intangible assets (including intangibles under development) — — (6,846 ) — (6,846 ) Proceeds from sale of property, plant and equipment — — 547 — 547 Investment in equity affiliates (5,884 ) — (3,736 ) — (9,620 ) Investment in subsidiaries (53,619 ) — (8,101 ) 61,720 — Payment for business acquisitions, net of cash acquired — — (45,162 ) — (45,162 ) Proceeds from divestiture of business, net of cash divested — — 17,242 — 17,242 Net cash (used for)/provided by investing activities $ (60,128 ) $ — $ (127,357 ) $ 61,720 $ (125,765 ) Financing activities Repayment of capital lease obligations — — (1,793 ) — (1,793 ) Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 200,000 — 200,000 Repayment of short-term borrowings — — (61,500 ) — (61,500 ) Proceeds from intercompany loans 73,000 303,000 50,445 (426,445 ) — Repayment of intercompany loans — — — — — Proceeds from issuance of common shares under stock-based compensation plans — 18,228 — — 18,228 Proceeds from issuance of common shares 40,000 — — (40,000 ) — Payment for net settlement of stock-based awards — (769 ) — — (769 ) Payment of earn-out/deferred consideration — — (1,485 ) — (1,485 ) Payment for stock purchased and retired — (345,200 ) 24,186 (24,186 ) (345,200 ) Payment for expenses related to stock purchase — (279 ) — — (279 ) Net cash (used for)/provided by financing activities $ 113,000 $ (25,020 ) $ 169,853 $ (490,631 ) $ (232,798 ) Effect of exchange rate changes (361 ) — (15,132 ) — (15,493 ) Net increase (decrease) in cash and cash equivalents 10,660 572 (24,023 ) — (12,791 ) Cash and cash equivalents at the beginning of the period 916 7,277 442,714 — 450,907 Cash and cash equivalents at the end of the period $ 11,215 $ 7,849 $ 403,559 $ — $ 422,623 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of preparation and principles of consolidation | (a) Basis of preparation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income. |
Use of estimates | (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. |
Changes in Accounting Policies | (c) 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 Accounting standard codification (ASC) Topic 606, Revenue from Contracts with Customers (“Topic 606”), effective January 1, 2018. The revenue accounting policy followed by the company before its adoption of Topic 606 is described below. 2. Summary of significant accounting policies (Continued) The Company derives its revenue primarily from business process outsourcing and information technology services, which are provided on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been rendered and collectability is reasonably assured. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for application development, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. Customer contracts can also include incentive payments received for discrete benefits delivered to clients. Revenues relating to such incentive payments are recorded when the contingency is satisfied and the Company concludes the amounts are earned. Revenue from fixed-price contracts for the development of software and related services is recognized in accordance with the percentage-of-completion method. Guidance has been drawn from Financial Accounting Standards Board (“FASB”) guidance on Software—Revenue Recognition to account for revenue from fixed-price arrangements for software development and related services in conformity with FASB guidance on Revenue Recognition—Construction—Type and Production-Type Contracts. The input (effort or cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. The Company has deferred the revenue and costs attributable to certain process transition activities with respect to its customers where such activities do not represent the culmination of a separate earnings process. Such revenue and costs are subsequently recognized ratably over the period in which the related services are performed. Further, the deferred costs are limited to the amount of the deferred revenues. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from clients have been included as part of revenues. The Company enters into multiple-element revenue arrangements in which a client may purchase a combination of its services. Revenue from multiple-element arrangements is recognized, for each element, based on (1) the attainment of the delivery criterion; (2) its fair value, which is determined using the selling price hierarchy of vendor-specific objective evidence (“VSOE”) of fair value, third-party evidence or best estimated selling price, as applicable, and (3) its allocated selling price, which is based on the relative sales price method. 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 being expensed as incurred as was the Company’s prior practice. The cumulative impact of the adoption of this standard 2. Summary of significant accounting policies (Continued) 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 . As of January 1, 2018, contract assets and contract liabilities of $21,348 relating to the same customer contracts have been offset against each other. |
Revenue recognition | (d) Revenue recognition (effective January 1, 2018) 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 client. 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 distinct subscription-based licenses is recognized at the point in time it is transferred to the client. Revenue from any associated maintenance or ongoing support services is recognized ratably over the term of the contract. For a combined software license/services performance obligation, revenue is recognized over the period that the services are performed. 2. Summary of significant accounting policies (Continued) 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 clients 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 clients and classified as a contract liability. Contract assets and contract liabilities relating to the same client contract are offset against each other and presented on a net basis in the consolidated financial statements. See note 27 for information and related disclosures regarding contract balances. Significant judgements The Company often enters into contracts with clients that include promises to transfer multiple products and services to the client. 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. Client 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 client. 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. 2. Summary of significant accounting policies (Continued) 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 year ended December 31, 2018. Consolidated Balance Sheet As of December 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 368,396 $ 368,396 Accounts receivable, net 774,184 774,184 Prepaid expenses and other current assets (a, c) 212,477 56,594 269,071 Total current assets $ 1,355,057 56,594 $ 1,411,651 Property, plant and equipment, net 212,715 212,715 Deferred tax assets (b) 74,566 5,984 80,550 Investment in equity affiliates 836 836 Intangible assets, net 177,087 177,087 Goodwill 1,393,832 1,393,832 Contract cost assets (a, b) 160,193 (160,193 ) - Other assets (a, c) 155,159 107,133 262,292 Total assets $ 3,529,445 9,518 $ 3,538,963 Liabilities and equity Current liabilities Short-term borrowings 295,000 295,000 Current portion of long-term debt 33,483 33,483 Accounts payable 42,584 42,584 Income taxes payable 33,895 33,895 Accrued expenses and other current liabilities (c) 571,350 10,289 581,639 Total current liabilities $ 976,312 10,289 $ 986,601 Long-term debt, less current portion 975,645 975,645 Deferred tax liabilities 8,080 8,080 Other liabilities (c) 165,226 19,136 184,362 Total liabilities $ 2,125,263 29,425 $ 2,154,688 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 189,346,101 issued and outstanding as of December 31, 2017 and December 31, 2018, respectively 1,888 1,888 Additional paid-in capital 1,471,301 1,471,301 Retained earnings (b) 438,453 (19,907 ) 418,546 Accumulated other comprehensive income (loss) (507,460 ) (507,460 ) Total equity $ 1,404,182 (19,907 ) $ 1,384,275 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,529,445 9,518 $ 3,538,963 (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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. (b) The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 which has been offset against deferred tax assets. (c) As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. 2. Summary of significant accounting policies (Continued) Consolidated Statement of Income Year ended December 31,2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 3,000,790 $ 3,000,790 Cost of revenue 1,921,768 1,921,768 Gross profit $ 1,079,022 — $ 1,079,022 Operating expenses: Selling, general and administrative expenses (e) 693,865 2,664 696,529 Amortization of acquired intangible assets 38,850 38,850 Other operating (income) expense, net (1,845 ) (1,845 ) Income from operations $ 348,152 (2,664 ) $ 345,488 Foreign exchange gains (losses), net 15,239 15,239 Interest income (expense), net (37,119 ) (37,119 ) Other income (expense), net 35,761 35,761 Income before equity-method investment activity, net and income tax expense $ 362,033 (2,664 ) $ 359,369 Equity-method investment activity, net (12 ) — (12 ) Income before income tax expense $ 362,021 (2,664 ) $ 359,357 Income tax expense (benefit) 80,763 (681 ) 80,082 Net income $ 281,258 (1,983 ) $ 279,275 Net loss (income) attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ 282,019 (1,983 ) $ 280,036 (e) During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452 resulting in a net adjustment of $2,664 with a corresponding impact on income tax benefit of $681. 2. Summary of significant accounting policies (Continued) Consolidated Statement of Cash flow Year ended December 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (f) $ 282,019 (1,983 ) $ 280,036 Net loss attributable to redeemable non-controlling interest (761 ) (761 ) Net income (f) $ 281,258 (1,983 ) $ 279,275 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 64,868 64,868 Amortization of debt issuance costs (including loss on extinguishment of debt) 3,975 3,975 Amortization of acquired intangible assets 38,850 38,850 Write-down of intangible assets and property, plant and equipment 4,265 4,265 Reserve for doubtful receivables 1,857 1,857 Unrealized loss (gain) on revaluation of foreign currency asset/liability 3,352 3,352 Equity-method investment activity, net 12 12 Stock-based compensation expense 48,998 48,998 Deferred income taxes (f) 6,054 (681 ) 5,373 Others, net 1,317 1,317 Change in operating assets and liabilities: Increase in accounts receivable (76,894 ) (76,894 ) Increase in prepaid expenses, other current assets, contract cost assets and other assets (f, g) (76,392 ) (5,413 ) (81,805 ) Increase in accounts payable 26,401 26,401 Increase in accrued expenses, other current liabilities and other liabilities (g) 5,993 8,077 14,070 Increase in income taxes payable 5,597 5,597 Net cash provided by operating activities $ 339,511 — $ 339,511 Investing activities Purchase of property, plant and equipment (84,978 ) (84,978 ) Payment for internally generated intangible assets (including intangibles under development) (75,439 ) (75,439 ) Proceeds from sale of property, plant and equipment 668 668 Payment for business acquisitions, net of cash acquired (111,571 ) (111,571 ) Payment for redeemable non-controlling interest (4,730 ) (4,730 ) Net cash used for investing activities $ (276,050 ) — $ (276,050 ) Financing activities Repayment of capital lease obligations (2,395 ) (2,395 ) Payment of debt issuance and refinancing costs (4,293 ) (4,293 ) Proceeds from long term debt 129,186 129,186 Repayment of long-term debt (166,186 ) (166,186 ) Proceeds from short-term borrowings 250,000 250,000 Repayment of short-term borrowings (125,000 ) (125,000 ) Proceeds from issuance of common shares under stock-based compensation plans 14,034 14,034 Payment for net settlement of stock-based awards (15,919 ) (15,919 ) Payment of earn-out/deferred consideration (3,356 ) (3,356 ) Dividend paid (57,102 ) (57,102 ) Payment for stock repurchased and retired (154,058 ) (154,058 ) Payment for expenses related to stock repurchase (98 ) (98 ) Net cash used for financing activities $ (135,187 ) — $ (135,187 ) Effect of exchange rate changes (64,346 ) (64,346 ) Net increase (decrease) in cash and cash equivalents (71,726 ) (71,726 ) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ 368,396 — $ 368,396 (f) During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452, resulting in a net adjustment of $2,664 and a tax impact of $(681) 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 client contract in an amount of $8,077. |
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 conditions, 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. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. |
Short- term investments | (g) Short-term investments All liquid investments with an original maturity greater than 90 days but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative purposes. |
Property, plant and equipment, net | (h) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Computer software 4-7 Leasehold improvements Lesser of lease period or 10 Years Vehicles 3-4 The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. 2. Summary of significant accounting policies (Continued) Capitalized computer software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. Advances paid towards acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress.” |
Business combinations | (i) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under Selling, General and Administrative Expenses. In business combinations, where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income. |
Goodwill | Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. |
Other Intangible Assets | Intangible assets including technology acquired / developed individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 1-14 years Marketing-related intangible assets 1-10 years 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. The Company also capitalizes certain software and technology development costs incurred in connection with developing or obtaining software or technology for sale/lease to customers when the initial design phase is completed and commercial and technological feasibility has been established. Any development cost incurred before technological feasibility is established is expensed as incurred as research and development costs. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Capitalized software and technology costs include only (i) external direct costs of materials and services utilized in developing or obtaining software and technology and (ii) compensation and related benefits for employees who are directly associated with the project. Costs incurred in connection with developing or obtaining software or technology for sale/lease to customers which are under development and not put to use are disclosed under “intangible assets under development.” Advances paid toward the acquisition of intangible assets outstanding as of each balance sheet date are disclosed under “intangible assets under development.” Capitalized software and technology costs are included in intangible assets under technology-related intangible assets on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software and technology. |
Impairment of long-lived assets | (j) Impairment of long-lived assets Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. |
Foreign currency | (k) Foreign currency The Company’s consolidated financial statements are reported in U.S. dollars, the Company’s functional currency. The functional currency for the Company’s subsidiaries organized in Europe, other than the United Kingdom, the Czech Republic, Luxembourg and one subsidiary in Poland, is the euro, and the functional currencies of the Company’s subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Israel, Japan, Morocco, South Africa, the Philippines, Poland, the Czech Republic, Hong Kong, Singapore, Australia and Canada are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the Company’s subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. |
Derivative instruments and hedging activities | 2. Summary of significant accounting policies (Continued) (l) Derivative instruments and hedging activities In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates and interest rate fluctuation. The Company purchases forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and forecasted transactions denominated in foreign currencies and interest rate swaps to mitigate interest rate fluctuation risk on its indebtedness. The Company recognizes derivative instruments and hedging activities as either assets or liabilities in its consolidated balance sheets and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Changes in the fair values of derivatives designated as cash flow hedges are deferred and recorded as a component of other comprehensive income (loss) reported under accumulated other comprehensive income (loss) until the hedged transactions occur and are then recognized in the consolidated statements of income along with the underlying hedged item and disclosed as part of “Total net revenues,” “Cost of revenue,” “Selling, general and administrative expenses,” and “Interest expense,” as applicable. Changes in the fair value of derivatives not designated as hedging instruments and the ineffective portion of derivatives designated as cash flow hedges are recognized in the consolidated statements of income and are included in foreign exchange gains (losses), net, and other income (expense), net, respectively. With respect to derivatives designated as hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the inception of the hedge and on a quarterly basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative or portion thereof is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, the Company will prospectively discontinue hedge accounting with respect to that derivative. In all situations in which hedge accounting is discontinued and the derivative is retained, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent change in its fair value in the consolidated statements of income. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately, in foreign exchange gains (losses), net in the consolidated statements of income, the gains and losses attributable to such derivative that were accumulated in other comprehensive income (loss). |
Income taxes | (m) Income taxes The Company accounts for income taxes using the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and all operating loss and tax credit carry forwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in the statement of income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. 2. Summary of significant accounting policies (Continued) The Company applies a two-step approach for recognizing and measuring the benefit of tax positions. The first step is to evaluate the tax position for recognition by determining, based on the technical merits, that the position will more likely than not be sustained upon examination. The second step is to measure the tax benefit as the largest amount of the tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company includes interest and penalties related to underpayment of income taxes within income tax expense. The Company follows the specific identification approach for releasing stranded tax effects from AOCI upon recognition of these AOCI items in the Company’s statement of income. |
Employee benefit plans | (n) Employee benefit plans Contributions to defined contribution plans are charged to consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. 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 Postretirement Benefit Cost. The service cost is recognized under “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. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return, compensation increases and turnover rates. The Company reviews its assumptions on an annual or quarterly basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. |
Deferred Compensation Plans | ( o Deferred Compensation Plans The Company maintains a non-qualified deferred compensation plan for certain employees. The plan is accounted for using the fair value measurement approach. Plan earnings are calculated by reference to actual earnings of the funds chosen by individual participants. In connection with the administration of this plan, the Company has purchased Company-owned life insurance policies insuring the lives of certain employees, held under a Rabbi Trust. The Company consolidates the invested assets of the trust. The cash surrender value of these insurance policies is included in “other assets” in the consolidated balance sheets at fair value. Gains or losses on the plan’s assets and changes in the fair value of deferred compensation liabilities are included in “other income (expense), net,” and “selling, general and administrative expenses,” respectively, in the consolidated statements of income. |
Stock-based compensation | (p) Stock-based compensation The Company recognizes and measures compensation expense for all stock-based awards based on the grant date fair value. For option awards, grant date fair value is determined under the option-pricing model (Black-Scholes-Merton) and for awards other than option awards, grant date fair value is determined on the basis of the fair market value of a Company common share on the date of grant of such awards. The Company recognizes compensation expense for stock-based awards net of estimated forfeitures. Stock-based compensation recognized in the consolidated statements of income is based on awards ultimately expected to vest. As a result, the expense has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from such estimates. |
Accelerated Share Repurchase | 2. Summary of significant accounting policies (Continued) (q) Accelerated Share Repurchase The Company entered into an accelerated share repurchase (“ASR”) agreement in 2017 with a third-party financial institution to repurchase shares of the Company’s common stock. Under the ASR agreement, the Company paid an upfront amount to the financial institution and received an initial delivery of shares. Upon an interim delivery and settlement of the ASR agreement, the financial institution delivered |
Government incentives | (r) Government incentives The Company recognizes incentives in the consolidated statement of income under “other income (expense), net.” Incentives are recognized in the income statement when there is reasonable assurance that the Company will comply with the conditions for their receipt and a reasonable expectation that the funds will be received. In certain circumstances, the receipt of an incentive may not be subject to any condition or requirement to incur further costs, in which case the incentive is recognized in the income statement for the period in which it becomes receivable. In the event that it becomes likely that the Company will be required to repay an incentive that has already been recognized, the Company makes a provision for the estimated liability. |
Financial instruments and concentration of credit risk | (s) 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% of the Company’s receivables as of both December 31, 2017 and 2018. GE accounted for 14%, 10% and 9% of the Company’s revenues in the years ended December 31, 2016, 2017 and 2018, respectively. |
Earnings (loss) per share | (t) Earnings (loss) per share Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. |
Commitments and contingencies | (u) Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. |
Debt Restructuring | (v) Debt Restructuring The Company accounts for any restructuring of its credit facility using the ten percent cash flow test in accordance with ASC 470, Debt. If the cash flow effect of the change in terms on a present-value basis is less than ten percent, the debt instruments are not considered to be substantially different, and are accounted for as a modification. If the change is more than ten percent, it is treated as an extinguishment. In performing the cash flow test, the Company includes all amounts paid to its lenders in connection with the restructuring but excludes third party expenses. In the case of a modification, all new fees paid to lenders are capitalized and amortized as part of the existing effective yield and any new fees paid to third parties are expensed as incurred under selling, general and administrative expenses. No gain or loss is recorded in the case of a modification. In the case of an extinguishment, all new fees paid to lenders are expensed as incurred under selling, general and administrative expenses and any new fees paid to third parties are capitalized and amortized as a debt issuance cost. The old debt is derecognized and the new debt is recorded at fair value and a gain or loss is recorded for the difference between the net carrying value of the original debt and the fair value of the new debt . |
Recently issued accounting pronouncements | (w) Recently issued accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the company’s consolidated financial statements. The following recently released accounting standard has been adopted by the Company: In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the requirement for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in income tax expense or in additional paid-in capital. In the quarter ended December 31, 2016, the Company elected to early adopt ASU 2016-09 effective January 1, 2016 and applied ASU 2016-09 using a modified retrospective approach. The treatment of forfeitures has not changed as the Company is electing to continue its current process of estimating the number of forfeitures. With the early adoption of ASU 2016-09, the Company has elected to present the cash flow statement on a prospective transition method and no prior periods have been adjusted. The Company adopted ASC 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 following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures: Effective January 1, 2016, the Company adopted FASB ASU 2015-01 (Topic 225): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the consolidated financial statements. Effective January 1, 2016, the Company adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. 2. Summary of significant accounting policies (Continued) Effective January 1, 2016, the Company adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. Effective January 1, 2017, the Company adopted FASB ASU 2016-06, Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence. 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. 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 ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The following recently released accounting standards have not yet been adopted by the Company: In February 2016, FASB established Topic 842, “Leases”, by issuing ASU No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. 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, ASU No. 2018-01, in January 2018, ASU No. 2018-10, in July 2018, ASU No. 2018-11, in July 2018, ASU No. 2018-20, in December 2018 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 using a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption with the effective date as its date of initial application on January 1, 2019 , in its first reporting on adoption The Company has concluded its assessment of adopting ASU No. 2016-02 and expects that this standard will have a material effect on its financial statements. The assessment included reviewing existing leases and service contracts, which may include embedded leases. The Company is in the process of making necessary changes to its policies, processes, and internal controls as well as system enhancements to generate the information necessary for the new disclosures. The most significant effects of this new standard on the Company relate to (1) the recognition of new ROU (“Right of Use”) assets and lease liabilities on its balance sheet for various real estate operating leases and (2) providing significant new disclosures about its leasing activities. 2. Summary of significant accounting policies (Continued) The Company has elected the “package of practical expedients,” which allows the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company has also elected As a result of 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. Subsequently, the FASB issued ASU No. 2018-19, in November 2018 which amends and clarifies some parts of ASU 2016-13.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 do 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. Subsequently, the FASB issued ASU No. 2018-16 in October 2018 which includes the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) rate as a benchmark interest rate for hedge accounting purposes. These ASUs are effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. The Company does not expect the adoption of this update to have a material impact on its consolidated results of operations, cash flows, financial position or disclosures. In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU modifies the disclosure requirements with respect to fair value measurements. 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 2018, the FASB issued ASU No. 2018-14, “Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” The ASU modifies the disclosure requirements with respect to defined benefit pension plans. The ASU is effective for the Company beginning January 1, 2021. 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 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.” The ASU modifies the capitalization requirements with respect to implementation costs incurred by the customer in a hosting arrangement that is a service contract. The ASU is effective for the Company beginning January 1, 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. |
Reclassification | (w) 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 accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Estimated Economic Useful Lives of Property Plant and Equipment | The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Computer software 4-7 Leasehold improvements Lesser of lease period or 10 Years Vehicles 3-4 |
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 |
ASU 2014-09 | |
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 year ended December 31, 2018. Consolidated Balance Sheet As of December 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Assets Current assets Cash and cash equivalents $ 368,396 $ 368,396 Accounts receivable, net 774,184 774,184 Prepaid expenses and other current assets (a, c) 212,477 56,594 269,071 Total current assets $ 1,355,057 56,594 $ 1,411,651 Property, plant and equipment, net 212,715 212,715 Deferred tax assets (b) 74,566 5,984 80,550 Investment in equity affiliates 836 836 Intangible assets, net 177,087 177,087 Goodwill 1,393,832 1,393,832 Contract cost assets (a, b) 160,193 (160,193 ) - Other assets (a, c) 155,159 107,133 262,292 Total assets $ 3,529,445 9,518 $ 3,538,963 Liabilities and equity Current liabilities Short-term borrowings 295,000 295,000 Current portion of long-term debt 33,483 33,483 Accounts payable 42,584 42,584 Income taxes payable 33,895 33,895 Accrued expenses and other current liabilities (c) 571,350 10,289 581,639 Total current liabilities $ 976,312 10,289 $ 986,601 Long-term debt, less current portion 975,645 975,645 Deferred tax liabilities 8,080 8,080 Other liabilities (c) 165,226 19,136 184,362 Total liabilities $ 2,125,263 29,425 $ 2,154,688 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 189,346,101 issued and outstanding as of December 31, 2017 and December 31, 2018, respectively 1,888 1,888 Additional paid-in capital 1,471,301 1,471,301 Retained earnings (b) 438,453 (19,907 ) 418,546 Accumulated other comprehensive income (loss) (507,460 ) (507,460 ) Total equity $ 1,404,182 (19,907 ) $ 1,384,275 Commitments and contingencies Total liabilities, redeemable non-controlling interest and equity $ 3,529,445 9,518 $ 3,538,963 (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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. (b) The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 which has been offset against deferred tax assets. (c) As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. 2. Summary of significant accounting policies (Continued) Consolidated Statement of Income Year ended December 31,2018 As reported Adjustments Balances without adoption of Topic 606 Net revenues $ 3,000,790 $ 3,000,790 Cost of revenue 1,921,768 1,921,768 Gross profit $ 1,079,022 — $ 1,079,022 Operating expenses: Selling, general and administrative expenses (e) 693,865 2,664 696,529 Amortization of acquired intangible assets 38,850 38,850 Other operating (income) expense, net (1,845 ) (1,845 ) Income from operations $ 348,152 (2,664 ) $ 345,488 Foreign exchange gains (losses), net 15,239 15,239 Interest income (expense), net (37,119 ) (37,119 ) Other income (expense), net 35,761 35,761 Income before equity-method investment activity, net and income tax expense $ 362,033 (2,664 ) $ 359,369 Equity-method investment activity, net (12 ) — (12 ) Income before income tax expense $ 362,021 (2,664 ) $ 359,357 Income tax expense (benefit) 80,763 (681 ) 80,082 Net income $ 281,258 (1,983 ) $ 279,275 Net loss (income) attributable to non-controlling interest 761 — 761 Net income attributable to Genpact Limited shareholders $ 282,019 (1,983 ) $ 280,036 (e) During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452 resulting in a net adjustment of $2,664 with a corresponding impact on income tax benefit of $681. 2. Summary of significant accounting policies (Continued) Consolidated Statement of Cash flow Year ended December 31, 2018 As reported Adjustments Balances without adoption of Topic 606 Operating activities Net income attributable to Genpact Limited shareholders (f) $ 282,019 (1,983 ) $ 280,036 Net loss attributable to redeemable non-controlling interest (761 ) (761 ) Net income (f) $ 281,258 (1,983 ) $ 279,275 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 64,868 64,868 Amortization of debt issuance costs (including loss on extinguishment of debt) 3,975 3,975 Amortization of acquired intangible assets 38,850 38,850 Write-down of intangible assets and property, plant and equipment 4,265 4,265 Reserve for doubtful receivables 1,857 1,857 Unrealized loss (gain) on revaluation of foreign currency asset/liability 3,352 3,352 Equity-method investment activity, net 12 12 Stock-based compensation expense 48,998 48,998 Deferred income taxes (f) 6,054 (681 ) 5,373 Others, net 1,317 1,317 Change in operating assets and liabilities: Increase in accounts receivable (76,894 ) (76,894 ) Increase in prepaid expenses, other current assets, contract cost assets and other assets (f, g) (76,392 ) (5,413 ) (81,805 ) Increase in accounts payable 26,401 26,401 Increase in accrued expenses, other current liabilities and other liabilities (g) 5,993 8,077 14,070 Increase in income taxes payable 5,597 5,597 Net cash provided by operating activities $ 339,511 — $ 339,511 Investing activities Purchase of property, plant and equipment (84,978 ) (84,978 ) Payment for internally generated intangible assets (including intangibles under development) (75,439 ) (75,439 ) Proceeds from sale of property, plant and equipment 668 668 Payment for business acquisitions, net of cash acquired (111,571 ) (111,571 ) Payment for redeemable non-controlling interest (4,730 ) (4,730 ) Net cash used for investing activities $ (276,050 ) — $ (276,050 ) Financing activities Repayment of capital lease obligations (2,395 ) (2,395 ) Payment of debt issuance and refinancing costs (4,293 ) (4,293 ) Proceeds from long term debt 129,186 129,186 Repayment of long-term debt (166,186 ) (166,186 ) Proceeds from short-term borrowings 250,000 250,000 Repayment of short-term borrowings (125,000 ) (125,000 ) Proceeds from issuance of common shares under stock-based compensation plans 14,034 14,034 Payment for net settlement of stock-based awards (15,919 ) (15,919 ) Payment of earn-out/deferred consideration (3,356 ) (3,356 ) Dividend paid (57,102 ) (57,102 ) Payment for stock repurchased and retired (154,058 ) (154,058 ) Payment for expenses related to stock repurchase (98 ) (98 ) Net cash used for financing activities $ (135,187 ) — $ (135,187 ) Effect of exchange rate changes (64,346 ) (64,346 ) Net increase (decrease) in cash and cash equivalents (71,726 ) (71,726 ) Cash and cash equivalents at the beginning of the period 504,468 504,468 Cash and cash equivalents at the end of the period $ 368,396 — $ 368,396 (f) During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452, resulting in a net adjustment of $2,664 and a tax impact of $(681) 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 client contract in an amount of $8,077. |
Business acquisitions and div_2
Business acquisitions and divestiture (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
IT Support Business | Europe | |
Summary of Calculation of Loss on Sale of Business | The Company recorded a loss of $5,668 in its consolidated statement of income in connection with the sale of the Business, calculated as follows: Net sale proceeds $ — Net assets of the business, including the translation impact thereof 5,569 Selling expenses 99 Loss on divestiture included in other income (expense), net $ 5,668 |
Other Acquisitions | |
Business Combination, Acquisition Date, Goodwill Reporting Unit and Goodwill Deductibility for Tax | 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) | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | As of December 31, 2017 2018 Cash and other bank balances $ 504,468 $ 368,396 Total $ 504,468 $ 368,396 |
Accounts receivable, net of r_2
Accounts receivable, net of reserve for doubtful receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Reserve for Doubtful Receivables | The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2016 2017 2018 Opening balance as of January 1 $ 11,530 $ 15,519 $ 23,660 Additions due to acquisitions — 235 — Additions charged/reversal released to cost and expense 7,282 9,819 1,857 Deductions/effect of exchange rate fluctuations (3,293 ) (1,913 ) (1,557 ) Closing balance $ 15,519 $ 23,660 $ 23,960 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments | 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 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 As of December 31 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Assets Derivative instruments (Note a, c) $ 44,099 $ — $ 44,099 $ — Deferred compensation plan assets (a, f) 1,613 — — 1,613 Total $ 45,712 $ — $ 44,099 $ 1,613 Liabilities Earn-out consideration (Note b, d) $ 17,073 $ — $ — $ 17,073 Derivative instruments (Note b, c) 35,245 — 35,245 — Deferred compensation plan liability (b, g) 1,582 — — 1,582 Total $ 53,900 $ — $ 35,245 $ 18,655 (a) Included in “prepaid expenses and other current assets” and “other assets” in the consolidated balance sheets. (b) Included in “accrued expenses and other current liabilities” and “other liabilities” in the consolidated balance sheets. (c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. (d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. (e) The Company’s estimate of the fair value of redeemable non-controlling interest as of December 31, 2017 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions. (f) Deferred compensation plan assets consist of life insurance policies held under a Rabbi Trust. Assets held in the Rabbi Trust are valued based on the cash surrender value of the insurance contract, which is determined based on the fair value of the underlying assets included in the insurance portfolio and are therefore classified within level 3 of the valuation hierarchy. 6. Fair Value Measurements (Continued) (g) The fair value of the deferred compensation plan liability is derived based on the fair value of the underlying assets in the insurance policies and is therefore classified within level 3 of the valuation hierarchy . |
Deferred Compensation Plan Assets | |
Roll-Forward of Fair Value of Deferred Compensation Plan Assets Categorized as Level 3 in Fair Value Hierarchy | The following table provides a roll-forward of the fair value of deferred compensation plan assets categorized as level 3 in the fair value hierarchy for the year ended December 31, 2017 and 2018: Year ended December 31, 2017 2018 Opening balance $ — $ — Redemptions — — Additions — 1,669 Change in fair value of deferred compensation plan assets (note a) — (56 ) Closing balance $ — $ 1,613 (a) Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. |
Business Acquisition Contingent Consideration | |
Roll-Forward of Fair Value of Earn-out Consideration and Deferred Compensation Liabilities Categorized as Level 3 in Fair Value Hierarchy | The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the years ended December 31, 2017 and 2018: Year ended December 31, 2017 2018 Opening balance $ 22,435 $ 24,732 Earn-out consideration payable in connection with acquisitions 10,720 — Payments made on earn-out consideration (7,239 ) (3,356 ) Change in fair value of earn out consideration (Note a) (3,695 ) (5,655 ) Others (Note b) 2,511 1,352 Ending balance $ 24,732 $ 17,073 (a) Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. (b) Interest expense is included in “interest income (expense), net” and the impact of changes in foreign exchange is reported in “foreign exchange gains (losses), net” in the consolidated statements of income. The cumulative translation adjustment is reported as a component of “other comprehensive income (loss).” |
Deferred Compensation Liabilities | |
Roll-Forward of Fair Value of Earn-out Consideration and Deferred Compensation Liabilities Categorized as Level 3 in Fair Value Hierarchy | The following table provides a roll-forward of the fair value of deferred compensation liabilities categorized as level 3 in the fair value hierarchy for the year ended December 31, 2017 and 2018: Year ended December 31, 2017 2018 Opening balance $ — $ — Redemptions — — Additions — 1669 Change in fair value of deferred compensation plan liabilities (note a) — (87 ) Closing balance $ — $ 1,582 (a) Changes in the fair value of deferred compensation liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure | The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2017 As of December 31, 2018 As of December 31, 2017 As of December 31, 2018 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,289,400 $ 1,439,000 $ 54,398 $ (3,643 ) United States Dollars (sell) Mexican Peso (buy) 9,000 — (441 ) — United States Dollars (sell) Philippines Peso (buy) 76,650 55,800 69 (1,510 ) Euro (sell) United States Dollars (buy) 170,542 136,412 (2,069 ) 4,804 Pound Sterling (buy) United States Dollars (sell) 24,041 128 253 (128 ) Euro (sell) Romanian Leu (buy) 35,826 41,198 (892 ) (299 ) Japanese Yen (sell) Chinese Renminbi (buy) 60,768 40,568 1,918 (2,195 ) Pound Sterling (sell) United States Dollars (buy) 80,871 27,517 (2,478 ) 495 Australian Dollars (sell) United States Dollars (buy) 136,092 89,780 (5,180 ) 3,548 Interest rate swaps (floating to fixed) 432,117 507,425 9,332 7,782 54,910 8,854 (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 other 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 Values of Derivative Instruments and Location in Financial Statements | The fair values 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 December 31, 2018 As of December 31, 2017 As of December 31, 2018 Assets Prepaid expenses and other current assets $ 43,557 $ 23,038 $ 4,635 $ 11,490 Other assets $ 24,906 $ 9,571 $ — $ — Liabilities Accrued expenses and other current liabilities $ 10,092 $ 15,148 $ 254 $ 225 Other liabilities $ 7,842 $ 19,872 $ — $ — |
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Year ended December 31, 2016 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 Opening balance $ (30,090 ) $ 9,830 $ (20,260 ) $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 Adoption of ASU 2018-02 (refer to note 25) — — — — — — — 2,265 2,265 Net gains (losses) reclassified into statement of income on completion of hedged transactions (Note (a)) (6,799 ) 409 (6,390 ) 54,494 (17,725 ) 36,769 9,336 (1,073 ) 8,263 Changes in fair value of effective portion of outstanding derivatives, net 60,752 (23,400 ) 37,352 67,562 (18,182 ) 49,380 (43,604 ) 5,574 (38,030 ) Gain (loss) on cash flow hedging derivatives, net 67,551 (23,809 ) 43,742 13,068 (457 ) 12,611 (52,940 ) 6,647 (46,293 ) Closing balance $ 37,461 $ (13,979 ) $ 23,482 $ 50,529 $ (14,436 ) $ 36,093 $ (2,411 ) $ (5,524 ) $ (7,935 ) |
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) reclassified Derivatives in recognized in OCI on reclassified from OCI into Statement of Income Cash Flow Derivatives (Effective Portion) from OCI into (Effective Portion) Hedging Year ended December 31, Statement of Income Year ended December 31, Relationships 2016 2017 2018 (Effective Portion) 2016 2017 2018 Forward foreign exchange contracts $ 54,664 $ 66,037 $ (45,840 ) Revenue $ 12,859 $ 5,858 $ (716 ) Interest rate swaps 6,088 1,525 2,236 Cost of revenue (14,223 ) 37,849 4,723 Selling, general and administrative expenses $ (3,765 ) 10,849 1,543 Interest expense (1,670 ) (62 ) 3,786 $ 60,752 $ 67,562 $ (43,604 ) $ (6,799 ) $ 54,494 $ 9,336 There were no gains (losses) related to the ineffective portion of derivatives for the periods shown. Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Year ended December 31, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2016 2017 2018 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 2,921 $ 16,696 $ (6,240 ) $ 2,921 $ 16,696 $ (6,240 ) (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 cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: As of December 31, 2017 2018 Advance income and non-income taxes $ 51,832 $ 58,701 Deferred transition costs 62,029 — Contract asset (Note 27) — 22,472 Customer acquisition cost 19,327 — Prepaid expenses 16,944 25,996 Derivative instruments 48,192 34,528 Employee advances 5,014 3,772 Deposits 4,719 2,758 Advances to suppliers 2,705 1,998 Others 25,580 62,252 $ 236,342 $ 212,477 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | Property, plant and equipment, net consist of the following: As of December 31, 2017 2018 Land $ 10,209 $ 9,401 Buildings 46,007 43,078 Furniture and fixtures 43,091 47,206 Computer equipment and servers 210,725 210,239 Plant, machinery and equipment 92,981 88,937 Computer software 137,459 138,824 Leasehold improvements 102,072 105,965 Vehicles 6,418 5,309 Capital work in progress 17,069 11,795 Property, plant and equipment, gross $ 666,031 $ 660,754 Less: Accumulated depreciation and amortization (459,001 ) (448,039 ) Property, plant and equipment, net $ 207,030 $ 212,715 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table presents the changes in goodwill for the years ended December 31, 2017 and 2018: As of December 31, 2017 2018 Opening balance $ 1,069,408 $ 1,337,122 Goodwill relating to acquisitions consummated during the period 229,745 91,936 Impact of measurement period adjustments (106 ) 816 Effect of exchange rate fluctuations 38,075 (36,042 ) Closing balance $ 1,337,122 $ 1,393,832 |
Goodwill Allocated to Reporting Units | Goodwill has been allocated to the following reporting units, which represent different business units of the Company, as follows: As of December 31, 2017 2018 India $ 735,596 $ 794,902 China 60,171 59,319 Europe 41,775 40,033 Americas 57,021 57,021 IT services 442,559 442,557 $ 1,337,122 $ 1,393,832 |
Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination | The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows: As of December 31, 2017 As of December 31,2018 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 369,173 $ 293,029 $ 76,144 $ 368,558 $ 306,582 $ 61,976 Marketing-related intangible assets 52,443 39,212 13,231 54,714 46,591 8,123 Technology-related intangible assets 54,189 28,278 25,911 76,790 33,976 42,814 Other intangible assets 3,081 2,314 767 1,204 1,077 127 Intangible assets under development 15,537 - 15,537 64,047 - 64,047 494,423 362,833 $ 131,590 $ 565,313 $ 388,226 $ 177,087 |
Estimated Amortization Schedule of Intangible Assets for Future Periods | The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: 2019 $ 36,395 2020 34,949 2021 20,814 2022 10,957 2023 and beyond 9,925 $ 113,040 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: As of December 31, 2017 2018 Customer acquisition cost $ 37,017 — Contract asset (Note 27) — 22,563 Advance income and non-income taxes 63,474 62,942 Deferred transition costs 77,255 — Deposits 32,174 25,984 Derivative instruments 24,906 9,571 Prepaid expenses 2,849 5,052 Accounts Receivable due after one year 1,624 4,099 Others 22,870 24,948 $ 262,169 $ 155,159 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future Minimum Lease Payments under Operating Lease Arrangements | operating lease agreements that expire at various dates. Future minimum lease payments under these agreements are as follows As of December 31: 2019 $ 64,099 2020 58,434 2021 53,170 2022 47,976 2023 38,862 2024 and beyond 147,765 Total minimum lease payments $ 410,306 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of December 31, 2017 2018 Accrued expenses $ 204,997 $ 179,843 Accrued employee cost 204,506 210,251 Earn-out consideration 14,928 16,875 Statutory liabilities 36,283 42,728 Retirement benefits 21,074 22,921 Derivative instruments 10,346 15,373 Advance from customers 25,476 — Contract liabilities (Note 27) — 64,744 Deferred transition revenue 52,233 — Other liabilities 13,093 16,807 Capital lease obligations 1,546 1,808 $ 584,482 $ 571,350 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Maturity Profile of Term Loan, Outstanding Net of Debt Amortization Expense | The maturity profile of the term loan outstanding as of December 31, 2018, net of debt amortization expense, is as follows: Year ended Amount 2019 $ 33,483 2020 33,509 2021 33,537 2022 33,564 2023 526,748 Total $ 660,841 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other liabilities | Other liabilities consist of the following: As of December 31, 2017 2018 Accrued employee cost $ 14,020 $ 6,341 Earn-out consideration 9,804 198 Retirement benefits 40,520 50,370 Derivative instruments 7,842 19,872 Advance from customers 790 — Contract liabilities (Note 27) — 53,796 Deferred transition revenue 70,900 — Others 22,069 32,935 Capital lease obligations 2,664 1,714 $ 168,609 $ 165,226 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Funded Status of Defined Benefit Plans and Amount Recognized | The following table sets forth the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of December 31, 2017 and 2018. As of December 31, 2017 2018 Change in benefit obligation Projected benefit obligation at the beginning of the year $ 45,283 $ 58,094 Service cost 7,735 7,833 Actuarial loss (gain) 4,493 470 Interest cost 3,252 3,822 Liabilities assumed on acquisition — 503 Benefits paid (5,367 ) (6,277 ) Special termination benefit 57 — Plan amendments — 995 Effect of exchange rate changes 2,641 (3,992 ) Projected benefit obligation at the end of the year $ 58,094 $ 61,448 Change in fair value of plan assets Fair value of plan assets at the beginning of the year $ 30,871 $ 45,560 Employer contributions 15,176 1,573 Actual gain on plan assets 2,746 1,929 Actuarial gain/(loss) 11 (9 ) Benefits paid (5,301 ) (6,228 ) Effect of exchange rate changes 2,057 (3,142 ) Fair value of plan assets at the end of the year $ 45,560 $ 39,683 |
Amounts Included in Other Comprehensive Income (Loss) | Amounts included in other comprehensive income (loss) as of December 31, 2017 and 2018 were as follows: As of December 31, 2017 2018 Net actuarial loss $ (12,228 ) $ (11,037 ) Net Prior Service Credit / (Cost) — (967 ) Deferred tax assets 2,221 3,451 Other comprehensive income, net $ (10,007 ) $ (8,553 ) |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in other comprehensive income (loss) during the year ended December 31, 2018 were as follows: 2018 Net actuarial loss $ (951 ) Amortization of net actuarial loss 1,202 Deferred income taxes 1,407 Net prior service credit/(cost) (944 ) Effect of exchange rate changes 740 Other comprehensive income (loss), net $ 1,454 |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the years ended December 31, 2016, 2017 and 2018 include the following components: Year ended December 31, 2016 2017 2018 Service costs $ 5,661 $ 7,735 $ 7,833 Interest costs 2,585 3,252 3,822 Amortization of actuarial loss (113 ) 1,177 806 Expected return on plan assets (2,043 ) (2,412 ) (2,435 ) One time cost — 209 — Special termination benefits — 426 — Net defined benefit plan costs $ 6,090 $ 10,387 $ 10,026 |
Fair Values of Plan Assets | The fair values of the Company’s plan assets as of December 31, 2017 and 2018 by asset category are as follows: Total As of December 31, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset category Equity $ 7 $ 7 $ — $ — Cash 381 381 — — Fixed income securities (Note a) 36,499 3,345 33,154 — Other securities (Note b) 2,796 2,381 415 — Total $ 39,683 $ 6,114 $ 33,569 $ — Total 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) Asset category Cash $ 472 $ 472 $ — $ — Fixed income securities (Note a) 42,328 3,419 38,909 — Other securities (Note b) 2,760 2,437 323 — Total $ 45,560 $ 6,328 $ 39,232 $ — (a) Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. (b) Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. |
Benefit Plan Payments Reflect Expected Future Service | 17. Employee benefit plans (Continued) The expected benefit plan payments set forth below reflect expected future service: Year ending December 31, 2019 $ 9,983 2020 10,454 2021 10,686 2022 10,877 2023 11,193 2024 - 2028 53,112 $ 106,305 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the years ended December 31, 2016, 2017 and 2018, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Year ended December 31, 2016 2017 2018 India $ 19,074 $ 22,242 $ 23,877 U.S. 10,379 11,147 13,454 U.K. 6,593 7,823 9,619 China 15,512 15,950 17,625 Other regions 4,684 4,059 4,604 Total $ 56,242 $ 61,221 $ 69,179 |
Benefit Obligations Of Gratuity Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2017 and 2018 are presented below: As of December 31, 2017 2018 Discount rate 7.40% - 7.60% 8.30% - 8.40% Rate of increase in compensation per annum 5.20%-11.00% 5.20%-11.00% |
Gratuity Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2016, 2017 and 2018 are presented below: Year ended December 31, 2016 2017 2018 Discount rate 8.30% - 8.45% 7.10% - 7.5% 7.40% - 7.60% Rate of increase in compensation per annum 5.20% - 11.00% 5.20% - 11.00% 5.20% - 11.00% Expected long term rate of return on plan assets per annum 7.50% 7.50% 7.50% |
Benefit Obligations Of Mexican Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2017 and 2018 are presented below: As of December 31, 2017 2018 Discount rate 7.60 % 9.25 % Rate of increase in compensation per annum 5.50 % 5.50 % |
Mexican Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the costs of the Mexican Plan for the years ended December 31, 2016, 2017 and 2018 are presented below: Year ended December 31, 2016 2017 2018 Discount rate 6.50 % 6.80 % 7.60 % Rate of increase in compensation per annum 5.50 % 5.50 % 5.50 % Expected long term rate of return on plan assets per annum 0.00 % 0.00 % 0.00 % |
Benefit Obligations Of Japan Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | 17. Employee benefit plans (Continued) The weighted average assumptions used to determine the benefit obligation of the Japan Plan as of December 31, 2017 and 2018 are presented below: As of December 31, 2017 2018 Discount rate 0.113%-0.789% 0.076%-0.269% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% |
Japan Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the costs of the Japan Plan for the years ended December 31, 2016, 2017 and 2018 are presented below: Year ended December 31, 2016 2017 2018 Discount rate 0.24% - 1.30% 0.08% - 1.30% 0.113%-0.789% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% 0.00% - 3.55% Expected long term rate of return on plan assets per annum 0.00% - 3.77% 0.00% - 3.09% 0-1.84% |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 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 connection with the determination of the fair value of options granted in 2016, 2017 and 2018: 2016 2017 2018 Dividend yield — 0.97% 0.95%-1.01% Expected life (in months) 84 84 84 Risk-free rate of interest for expected life 1.42% - 1.56% 2.25 % 2.67 %-2.93% Volatility 25.60% - 27.22% 24.28% 22.55-22.73% |
Summary of Stock Option Activity | A summary of stock option activity during the years ended December 31, 2016, 2017 and 2018 is set out below: Year ended December 31, 2016 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2016 5,986,845 $ 16.99 5.8 $ — Granted 860,000 26.80 — — Forfeited (145,000 ) 17.77 — — Expired — — — — Exercised (994,155 ) 14.98 — 10,982 Outstanding as of December 31, 2016 5,707,690 $ 18.65 5.8 $ 34,641 Vested as of December 31, 2016 and expected to vest thereafter (Note a) 5,457,701 $ 18.42 5.8 $ 34,150 Vested and exercisable as of December 31, 2016 2,746,191 $ 15.62 4.0 $ 23,960 Weighted average grant-date fair value of options granted during the period $ 8.50 18. Stock-based compensation (Continued) Year ended December 31, 2017 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2017 5,707,690 $ 18.65 5.8 $ — Granted 250,000 24.74 — — Forfeited (80,000 ) 20.63 — — Expired — — — — Exercised (743,045 ) 14.50 — 8,512 Outstanding as of December 31, 2017 5,134,645 $ 19.52 5.6 $ 62,743 Vested as of December 31, 2017 and expected to vest thereafter (Note a) 4,988,875 $ 19.36 5.6 $ 61,779 Vested and exercisable as of December 31, 2017 2,203,146 $ 16.17 4.1 $ 34,303 Weighted average grant-date fair value of options granted during the period $ 6.62 Year ended December 31, 2018 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2018 5,134,645 $ 19.52 5.6 $ — Granted 2,638,106 30.47 — — Forfeited (70,000 ) 27.65 — — Expired — — — — Exercised (441,076 ) 16.46 — 6,731 Outstanding as of December 31, 2018 7,261,675 $ 23.61 6.4 $ 34,143 Vested as of December 31, 2018 and expected to vest thereafter (Note a) 7,107,605 $ 23.50 6.4 $ 33,997 Vested and exercisable as of December 31, 2018 3,313,570 $ 17.69 3.7 $ 30,806 Weighted average grant-date fair value of options granted during the period $ 8.32 (a) Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Units Activity | A summary of RSU activity during the years ended December 31, 2016, 2017 and 2018 is set out below: Year ended December 31, 2016 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2016 157,390 $ 17.67 Granted 95,553 25.49 Vested (Note b) (133,903 ) 20.66 Forfeited (1,135 ) 14.18 Outstanding as of December 31, 2016 117,905 $ 20.65 Expected to vest (Note a) 107,366 Year ended December 31, 2017 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2017 117,905 $ 20.65 Granted 1,533,836 26.36 Vested (Note c) (45,248 ) 18.31 Forfeited (1,242 ) 25.53 Outstanding as of December 31, 2017 1605,251 $ 26.17 Expected to vest (Note a) 1,371,567 Year ended December 31, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted 484,427 30.13 Vested (Note d) (358,697 ) 25.53 Forfeited (201,982 ) 27.09 Outstanding as of December 31, 2018 1,528,999 $ 27.45 Expected to vest (Note a) 1,360,048 (a) RSUs expected to vest reflect an estimated forfeiture rate. (b) Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016. 17,802 common shares underlying 34,035 of such RSUs were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. 52,482 RSUs vested in the year ended December 31, 2016, in respect of which 52,055 shares were issued in 2018 after withholding shares to the extent of minimum statutory withholding taxes. (c) Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). (d) 261,260 RSUs that vested during the period were net settled upon vesting by issuing 175,505 shares (net of minimum statutory tax withholding). 52,875 and 44,562 RSUs vested in the year ended December 31, 2017 and December 31, 2018 respectively, shares in respect of which will be issuable in 2019 after withholding shares to the extent of minimum statutory withholding taxes. |
Summary of Performance Units Activity | A summary of PU activity during the years ended December 31, 2016, 2017 and 2018 is set out below: Year ended December 31, 2016 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2016 2,499,322 $ 19.95 2,499,322 Granted 1,518,374 27.93 3,343,335 Vested — — — Forfeited (252,842 ) 21.88 (325,817 ) Adjustment upon final determination of level of performance goal achievement (Note b) 7,274 22.72 Adjustment upon final determination of level of performance goal achievement (Note b) 7,274 Outstanding as of December 31, 2016 3,772,128 $ 23.04 5,524,114 Expected to vest (Note a) 2,226,489 18. Stock-based compensation (Continued) Year ended December 31, 2017 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2017 3,772,128 $ 23.04 5,524,114 Granted 1,811,292 25.22 3,622,584 Vested (Note c) (1,136,047 ) 16.78 (1,136,047 ) Forfeited (Note d) (1,583,913 ) 27.57 (1,627,313 ) Adjustment upon final determination of level of performance goal achievement (Note e) 37,480 25.22 Adjustment upon final determination of level of performance goal achievement (Note f) (3,482,398 ) Outstanding as of December 31, 2017 2,900,940 $ 24.40 2,900,940 Expected to vest (Note a) 2,657,685 Year ended December 31, 2018 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2018 2,900,940 $ 24.40 2,900,940 Granted 1,682,740 30.62 3,365,480 Vested (Note g) (1,087,751 ) 22.73 (1,087,751) Forfeited (258,237 ) 26.03 (305,737 ) Adjustment upon final determination of level of performance goal achievement (Note h) 474,800 30.68 Adjustment upon final determination of level of performance goal achievement (Note i) (1,160,530) Outstanding as of December 31, 2018 3,712,402 $ 28.40 3,712,402 Expected to vest (Note a) 3,261,069 (a) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (b) Represents an adjustment made in March 2016 to the number of shares underlying the PUs granted in 2015 upon certification of the level of achievement of the performance targets for such awards. 18. Stock-based compensation (Continued) (c) Vested PUs were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). (d) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards. (e) Represents a 2.7% increase in the number of target shares as a result of achievement of higher-than-target performance for certain PUs granted in 2017, partially offset by a 12.5% reduction as a result of achievement of lower-than-target performance for certain PUs granted in 2017. (f) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2017 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards. (g) Vested PUs were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). (h) Represents a 28.77% increase in the number of target shares expected to vest as a result of achievement of higher-than-target performance for PUs granted in 2018 partially offset by 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. ( i ) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2018 based on the level of achievement of the performance goals. Also includes 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. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Year ended December 31, 2016 2017 2018 Net income available to Genpact Limited common shareholders $ 269,684 $ 263,111 $ 282,019 Weighted average number of common shares used in computing basic earnings per common share 206,861,536 193,864,755 190,674,740 Dilutive effect of stock-based awards 3,264,487 3,184,797 3,305,298 Weighted average number of common shares used in computing dilutive earnings per common share 210,126,023 197,049,552 193,980,038 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 1.30 $ 1.36 $ 1.48 Diluted $ 1.28 $ 1.34 $ 1.45 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Schedule of Cost of Revenue | Cost of revenue consists of the following: Year ended December 31, 2016 2017 2018 Personnel expenses $ 1,061,134 $ 1,153,479 $ 1,322,651 Operational expenses 446,922 481,012 543,006 Depreciation and amortization 46,284 46,947 56,111 $ 1,554,340 $ 1,681,438 $ 1,921,768 |
Selling, general and administ_2
Selling, general and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selling General And Administrative Expenses [Abstract] | |
Schedule of Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: Year ended December 31, 2016 2017 2018 Personnel expenses $ 469,894 $ 501,059 $ 518,897 Operational expenses 174,060 178,573 166,437 Depreciation and amortization 9,013 9,829 8,531 $ 652,967 $ 689,461 $ 693,865 |
Other operating (income) expe_2
Other operating (income) expense, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Operating (Income) Expense, Net | Year ended December 31, 2016 2017 2018 Other operating (income) expense $ (1,266 ) $ (7,277 ) $ (455 ) Provision for impairment of intangible assets and property, plant and equipment 11,195 9,311 4,265 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) (14,869 ) (3,695 ) (5,655 ) Other operating (income) expense, net $ (4,940 ) $ (1,661 ) $ (1,845 ) |
Interest income (expense), net
Interest income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift Interest [Abstract] | |
Schedule of Interest Income (Expense), Net | Interest income (expense), net consists of the following: Year ended December 31, 2016 2017 2018 Interest income $ 7,247 $ 8,182 $ 11,388 Interest expense (23,431 ) (39,917 ) (48,507 ) Interest income (expense), net $ (16,184 ) $ (31,735 ) $ (37,119 ) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income tax expense (benefit) for the years ended December 31, 2016, 2017 and 2018 is allocated as follows: Year ended December 31, 2016 2017 2018 Income from continuing operations $ 62,098 $ 59,742 $ 80,763 Other comprehensive income: Unrealized gains (losses) on cash flow hedges 23,809 457 (6,647 ) Retirement benefits (1,885 ) 670 (1,407 ) Retained earnings: Deferred tax benefit recognized on early adoption of ASU 2016-09 (24,912 ) — — Reclassification from AOCI on early adoption of ASU 2018-02 — — 2,265 Deferred tax expense recognized on adoption of ASU 2014-09 — — 5,303 Accumulated other comprehensive income: Reclassification to retained earnings on early adoption of ASU 2018-02 — — (2,265 ) |
Components of Income before Income Tax Expense from Continuing Operations | The components of income before income tax expense from continuing operations are as follows: Year ended December 31, 2016 2017 2018 Domestic (U.S.) $ 44,110 $ 8,440 $ 49,986 Foreign (Non-U.S.) 285,535 312,143 312,035 Income before income tax expense $ 329,645 $ 320,583 $ 362,021 |
Income Tax Expense (Benefit) Attributable to Income from Continuing Operations | Income tax expense (benefit) attributable to income from continuing operations consists of: Year ended December 31, 2016 2017 2018 Current tax expense : Domestic (U.S. federal) $ 78 $ 3,380 $ 6,466 Domestic (U.S. state) 1,069 1,268 3,508 Foreign (Non-U.S.) 30,497 65,485 64,735 $ 31,644 $ 70,133 $ 74,709 Deferred tax expense (benefit) : Domestic (U.S. federal) $ 11,379 $ 3,549 $ 6,577 Domestic (U.S. state) (459 ) (2,809 ) (1,176 ) Foreign (Non-U.S.) 19,534 (11,131 ) 653 $ 30,454 $ (10,391 ) $ 6,054 Total income tax expense (benefit) $ 62,098 $ 59,742 $ 80,763 |
Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes | Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017 and 2016 to income before income taxes, as a result of the following: Year ended December 31, 2016 2017 2018 Income before income tax expense $ 329,645 $ 320,583 $ 362,021 Statutory tax rates 35 % 35 % 21 % Computed expected income tax expense 115,376 112,204 76,024 Increase (decrease) in income taxes resulting from: Foreign tax rate differential (18,574 ) (25,224 ) 23,373 Tax benefit from tax holiday (32,893 ) (35,814 ) (24,968 ) Non-deductible expenses 4,559 3,985 3,245 Effect of change in tax rates 353 2,778 (147 ) Change in valuation allowance (4,830 ) 9,041 27,826 Unrecognized tax benefits (627 ) 1,611 3,008 Other* (1,266 ) (8,839 ) (27,598 ) Reported income tax expense (benefit) $ 62,098 $ 59,742 $ 80,763 *Following the transfer/closure of certain affiliated entities, deferred tax liabilities recorded against the outside basis difference were reversed amounting to $0, $9,600, $18,510 during the year ended December 31, 2016, 2017 and 2018. It was not more likely than not that the resulting net deferred tax asset would be realized. Therefore, a full valuation allowance was established to offset the reduction in deferred tax liabilities. |
Components of Deferred Tax Balances | The components of the Company’s deferred tax balances as of December 31, 2017 and 2018 are as follows: As of December 31, 2017 2018 Deferred tax assets Net operating loss carryforwards $ 55,500 $ 64,013 Accrued liabilities and other expenses 41,177 36,812 Provision for doubtful debts 10,509 9,650 Property, plant & equipment and leased assets 6,179 7,904 Unrealized losses on cash flow hedges, net 275 672 Share-based compensation 19,789 18,236 Retirement benefits 5,817 7,559 Contract liabilities 22,948 3,150 Tax credit carryforwards 35,322 22,409 Other 6,662 8,885 Gross deferred tax assets $ 204,178 $ 179,290 Less: Valuation allowance (24,549 ) (51,986 ) Total deferred tax assets $ 179,629 $ 127,304 Deferred tax liabilities Intangible assets $ 23,545 $ 17,975 Property, plant and equipment 1,131 5,493 Deferred cost 33,816 2,725 Investments in foreign subsidiaries not indefinitely reinvested 18,949 4,835 Unrealized gains on cash flow hedges, net 14,711 8,990 Goodwill 7,145 12,957 Other 10,150 7,843 Total deferred tax liabilities $ 109,447 $ 60,818 Net deferred tax asset $ 70,182 $ 66,486 As of December 31, Classified as 2017 2018 Deferred tax assets Non-current $ 76,929 $ 74,566 Deferred tax liabilities Non-current 6,747 8,080 $ 70,182 $ 66,486 |
Change in Total Valuation Allowance for Deferred Tax Assets | The change in the total valuation allowance for deferred tax assets as of December 31, 2016, 2017 and 2018 is as follows: Year ended December 31, 2016 2017 2018 Opening valuation allowance $ 20,091 $ 14,746 $ 24,549 Reduction during the year (7,299 ) (3,957 ) (2,307 ) Addition during the year 1,954 13,760 29,744 Closing valuation allowance $ 14,746 $ 24,549 $ 51,986 |
Remaining Tax Loss Carry Forwards Expiration | The Company’s remaining tax loss carryforwards expire as set forth in the table below: US – Federal Europe Others Year ending December 31, 2020 $ — 2952 $ — 2021 — 1,121 2,347 2022 — 5,904 105 2023 — 6,639 1,426 2024 — 771 7,748 2025 — 27,147 8,520 2026 — 234 1,396 2027 — 856 5,071 2028 — 34 2,716 2029 — — 672 2034 — 18,820 — 2035 340 8,838 — 2036 477 — — 2037 7252 — — 2038 — — 640 $ 8,069 $ 73,316 $ 30,641 |
Foreign Tax Credit Expiry Period | As of December 31, 2018, the company had a total foreign tax credit carryforward of $22,409, which will expire as set forth in the table below: Year ending December 31, Amount 2023 355 2024 2,819 2025 8,395 2026 5,728 2027 1,250 2028 3,862 $ 22,409 |
Activities Related to Unrecognized Tax Benefits | 25. Income taxes (Continued) The following table summarizes activities related to our unrecognized tax benefits from January 1 to December 31 for each of 2016, 2017 and 2018: 2016 2017 2018 Opening balance at January 1 $ 26,357 $ 23,467 $ 26,060 Increase related to prior year tax positions, including recorded in acquisition accounting 370 2,582 1,851 Decrease related to prior year tax positions (1,506 ) (1,398 ) (153 ) Decrease related to divesture of business (345 ) — — Decrease related to prior year tax position due to lapse of applicable statute of limitation (2,122 ) (1,019 ) (1,841 ) Increase related to current year tax positions, including recorded in acquisition accounting 3,225 1,661 2,408 Decrease related to settlements with tax authorities (2,000 ) — — Effect of exchange rate changes (512 ) 767 (1,603 ) Closing balance at December 31 $ 23,467 $ 26,060 $ 26,722 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Net Revenues Disaggregated by Customer | 26. Segment reporting (Continued) Net revenues by customer type are as follows: Year ended December 31, 2016 2017 2018 GE $ 357,894 $ 269,217 $ 268,210 Global Clients 2,212,862 2,467,712 2,732,580 Total net revenues $ 2,570,756 $ 2,736,929 $ 3,000,790 |
Net Revenues for Service Type | Net revenues by service type are as follows: Year ended December 31, 2016 2017 2018 Business process outsourcing $ 2,083,450 $ 2,264,335 $ 2,502,806 Information technology services 487,306 472,594 497,984 Total net revenues $ 2,570,756 $ 2,736,929 $ 3,000,790 |
Revenues from Clients Based on Industry Serviced | Revenues from clients based on the industry serviced are as follows: Year ended December 31, 2016 2017 2018 Banking, financial services and insurance $ 1,021,609 $ 1,090,134 $ 1,099,189 Consumer goods, retail, life sciences and healthcare 769,432 832,088 891,640 High tech, manufacturing and services 779,715 814,707 1,009,961 Total net revenues $ 2,570,756 $ 2,736,929 $ 3,000,790 |
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers | Net revenues from geographic areas based on the location of the Company’s service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. Year ended December 31, 2016 2017 2018 India $ 1,804,113 $ 1,712,783 $ 1,739,455 Asia, other than India 249,839 286,338 327,462 North and Latin America 282,434 455,059 641,716 Europe 234,370 282,749 292,157 Total net revenues $ 2,570,756 $ 2,736,929 $ 3,000,790 |
Property, Plant and Equipment, Net by Geographic Areas | Property, plant and equipment, net by geographic region are as follows: As of December 31, 2017 2018 India $ 125,490 $ 130,824 Asia, other than India 15,899 14,866 Americas 38,438 46,763 Europe 27,203 20,262 Total $ 207,030 $ 212,715 |
Contract balances (Tables)
Contract balances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenues [Abstract] | |
Details of Company's Contract Liabilities | The following table provides details of the Company’s contract liabilities: As of December 31, 2018 Particulars Advance from customers Deferred transition revenue Opening balance $ 26,266 $ 101,785 Impact of opening balance offset — $ 21,348 Gross opening balance $ 26,266 $ 123,133 Additions 33,328 67,838 Effect of business combinations 273 75 Revenue recognized (32,091 ) (68,697 ) Currency translation adjustments (1,063 ) (1,097 ) Gross closing balance $ 26,713 $ 121,252 Impact of closing balance offset with contract asset (3,821 ) (25,604 ) Closing balance (Note a) $ 22,892 $ 95,648 (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 December 31, 2018: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 95,670 41,830 40,128 12,619 1,093 |
Details of Company's Contract Assets | The following table provides details of the Company’s contract assets: Particulars As of December 31,2018 Opening balance $ 43,366 Impact of opening balance offset 21,348 Gross opening balance $ 64,714 Additions 48,216 Reduction in revenue recognized (38,470 ) Gross closing balance $ 74,460 Impact of closing balance offset with contract liability (29,425 ) Closing balance (Note b) $ 45,035 (b) Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. |
Summary of Contract Cost Assets | The following table provides details of the company’s contract cost assets: As of December 31, 2018 Particulars Sales incentive programs Transition activities Opening balance $ 23,227 $ 139,284 Closing balance 25,891 134,302 Amortization 14,788 70,775 |
Other Income (expense), net (Ta
Other Income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Nonoperating Income Expense [Abstract] | |
Schedule of Other Income (Expense), Net | Year ended December 31, 2016 2017 2018 Government incentives $ - $ 26,882 $ 36,099 Other income/(expense) 9,691 (3,296 ) (338 ) Other Income (expense), net $ 9,691 $ 23,586 $ 35,761 |
Quarterly financial data (una_2
Quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Three months ended Year ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 December 31, 2018 Total net revenues $ 688,912 $ 728,561 $ 747,978 $ 835,339 $ 3,000,790 Gross profit $ 244,588 $ 265,663 $ 266,566 $ 302,205 $ 1,079,022 Income from operations $ 63,761 $ 79,522 $ 94,028 $ 110,841 $ 348,152 Income before equity-method investment activity, net and income tax expense $ 76,009 $ 81,668 $ 97,724 $ 106,632 $ 362,033 Net income $ 63,934 $ 64,574 $ 73,603 $ 79,147 $ 281,258 Net (income) loss attributable to redeemable non-controlling interest $ 761 $ - $ - $ - $ 761 Net income attributable to Genpact Limited common shareholders $ 64,695 $ 64,574 $ 73,603 $ 79,147 $ 282,019 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.34 $ 0.34 $ 0.39 $ 0.42 $ 1.48 Diluted $ 0.33 $ 0.33 $ 0.38 $ 0.41 $ 1.45 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 192,816,626 190,132,664 190,024,924 189,724,744 190,674,740 Diluted 196,288,569 193,365,974 193,115,769 193,149,836 193,980,038 31. Quarterly financial data (unaudited) (Continued) Three months ended Year ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 December 31, 2017 Total net revenues $ 622,995 $ 670,697 $ 708,824 $ 734,413 $ 2,736,929 Gross profit $ 239,658 $ 256,189 $ 280,034 $ 279,610 $ 1,055,491 Income from operations $ 79,096 $ 80,959 $ 97,919 $ 73,305 $ 331,279 Income before equity-method investment activity, net and income tax expense $ 69,243 $ 84,582 $ 89,742 $ 81,559 $ 325,126 Net income $ 52,440 $ 69,102 $ 73,161 $ 66,138 $ 260,841 Net (income) loss attributable to redeemable non-controlling interest $ 898 $ (156 ) $ 584 $ 944 $ 2,270 Net income attributable to Genpact Limited common shareholders $ 53,338 $ 68,946 $ 73,745 $ 67,082 $ 263,111 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.27 $ 0.36 $ 0.38 $ 0.35 $ 1.36 Diluted $ 0.26 $ 0.36 $ 0.38 $ 0.34 $ 1.34 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 199,069,528 191,469,593 192,124,366 192,795,534 193,864,755 Diluted 202,655,937 193,732,406 194,947,699 196,862,168 197,049,552 |
Guarantor financial informati_2
Guarantor financial information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Guarantor Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 Accounts receivable intercompany, net 89,958 — — (89,958 ) — Accounts receivable, net — — 774,184 — 774,184 Intercompany loans 447,578 1,300 1,835,608 (2,284,486 ) — Intercompany other receivable 33,224 52,783 117,537 (203,544 ) — Prepaid expenses and other current assets 2,242 1,278 208,957 — 212,477 Total current assets $ 585,799 $ 57,866 $ 3,289,380 $ (2,577,988 ) $ 1,355,057 Property, plant and equipment, Net 388 — 212,327 — 212,715 Intercompany loans 100,000 — 500,000 (600,000 ) — Deferred tax assets — — 74,566 — 74,566 Investment in subsidiaries 548,654 3,073,467 557,089 (4,179,210 ) — Investment in equity affiliates — — 836 — 836 Investment in debentures/bonds, intercompany 571,919 50,393 — (622,312 ) — Intercompany other receivable — 83,169 — (83,169 ) — Intangible assets, net — — 177,087 — 177,087 Goodwill — — 1,393,832 — 1,393,832 Contract cost assets — — 160,193 — 160,193 Other assets 682 — 154,477 — 155,159 Total assets $ 1,807,442 $ 3,264,895 $ 6,519,787 $ (8,062,679 ) $ 3,529,445 Liabilities and equity Current liabilities Short-term borrowings $ 100,000 $ — $ 195,000 $ — $ 295,000 Intercompany loans 128,572 1,849,537 306,377 (2,284,486 ) — Current portion of long-term debt 4,961 — 28,522 — 33,483 Accounts payable 1,636 520 40,428 — 42,584 Intercompany accounts payable — — 89,958 (89,958 ) — Income taxes payable — — 33,895 — 33,895 Intercompany other payable 47,844 70,973 84,727 (203,544 ) — Accrued expenses and other current liabilities 5,248 5,157 560,945 — 571,350 Total current liabilities $ 288,261 $ 1,926,187 $ 1,339,852 $ (2,577,988 ) $ 976,312 Long-term debt, less current portion 440,665 — 534,980 — 975,645 Deferred tax liabilities — — 8,080 — 8,080 Intercompany other payable — — 83,169 (83,169 ) — Non-current intercompany loans payable 500,000 — 722,312 (1,222,312 ) — Other liabilities 197 154 164,875 — 165,226 Total liabilities $ 1,229,123 $ 1,926,341 $ 2,853,268 $ (3,883,469 ) $ 2,125,263 Redeemable non-controlling interest — — — — — Shareholders' equity 578,319 1,338,554 3,666,519 (4,179,210 ) 1,404,182 Commitments and contingencies — — — — — Total liabilities, redeemable non-controlling interest and equity $ 1,807,442 $ 3,264,895 $ 6,519,787 $ (8,062,679 ) $ 3,529,445 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 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) year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 50,356 $ — $ 3,000,790 $ (50,356 ) $ 3,000,790 Cost of revenue — 5,188 1,916,580 — 1,921,768 Gross profit $ 50,356 $ (5,188 ) $ 1,084,210 $ (50,356 ) $ 1,079,022 Operating expenses: Selling, general and administrative expenses 11,324 23,703 709,260 (50,422 ) 693,865 Amortization of acquired intangible assets 48 — 38,802 — 38,850 Other operating (income) expense, net (17,599 ) — 15,754 — (1,845 ) Income (loss) from operations $ 56,583 $ (28,891 ) $ 320,394 $ 66 $ 348,152 Foreign exchange gains (losses), net 449 845 13,945 — 15,239 Interest income (expense), net (16,504 ) — (20,615 ) — (37,119 ) Intercompany interest income (expense), net 77,857 (19,279 ) (58,578 ) — — Other income (expense), net — — 35,761 — 35,761 Income (loss) before equity-method investment activity, net and income tax expense $ 118,385 $ (47,325 ) $ 290,907 $ 66 $ 362,033 Gain (loss) on equity-method investment activity, net 62,501 346,960 123,291 (532,764 ) (12 ) Income before income tax expense $ 180,886 $ 299,635 $ 414,198 $ (532,698 ) $ 362,021 Income tax expense 6,124 — 74,639 — 80,763 Net income $ 174,762 $ 299,635 $ 339,559 $ (532,698 ) $ 281,258 Net loss attributable to redeemable non-controlling interest — 761 — 761 Net income attributable to Genpact Limited shareholders $ 174,762 $ 299,635 $ 340,320 $ (532,698 ) $ 282,019 Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 46,722 $ — $ 2,736,929 $ (46,722 ) $ 2,736,929 Cost of revenue — — 1,681,438 — 1,681,438 Gross profit $ 46,722 $ — $ 1,055,491 $ (46,722 ) $ 1,055,491 Operating expenses: Selling, general and administrative expenses 9,859 21,076 728,145 (69,619 ) 689,461 Amortization of acquired intangible assets — — 36,412 — 36,412 Other operating (income) expense, net (3,412 ) — 1,751 — (1,661 ) Income (loss) from operations $ 40,275 $ (21,076 ) $ 289,183 $ 22,897 $ 331,279 Foreign exchange gains (losses), net 3,312 2 (1,318 ) — 1,996 Interest income (expense), net (11,375 ) — (20,360 ) — (31,735 ) Intercompany interest income (expense), net 47,547 (10,148 ) (37,399 ) — — Other income (expense), net 18,391 — 5,195 — 23,586 Income (loss) before equity-method investment activity, net and income tax expense $ 98,150 $ (31,222 ) $ 235,301 $ 22,897 $ 325,126 Gain (loss) on equity-method investment activity, net (15,058 ) 294,333 75,657 (359,475 ) (4,543 ) Income before income tax expense $ 83,092 $ 263,111 $ 310,958 $ (336,578 ) $ 320,583 Income tax expense 7,435 — 52,307 — 59,742 Net income $ 75,657 $ 263,111 $ 258,651 $ (336,578 ) $ 260,841 Net loss attributable to redeemable non-controlling interest — — 2,270 — 2,270 Net income attributable to Genpact Limited shareholders $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 39,518 $ — $ 2,570,756 $ (39,518 ) $ 2,570,756 Cost of revenue — — 1,554,340 — 1,554,340 Gross profit $ 39,518 $ — $ 1,016,416 $ (39,518 ) $ 1,016,416 Operating expenses: Selling, general and administrative expenses 9,499 12,772 672,680 (41,984 ) 652,967 Amortization of acquired intangible assets — — 27,183 — 27,183 Other operating (income) expense, net (4,043 ) (500 ) (397 ) — (4,940 ) Income (loss) from operations $ 34,062 $ (12,272 ) $ 316,950 $ 2,466 $ 341,206 Foreign exchange gains (losses), net (1,633 ) 57 4,206 — 2,630 Interest income (expense), net (1,358 ) — (14,826 ) — (16,184 ) Intercompany interest income (expense), net 81,359 - (81,359 ) — — Other income (expense), net (829 ) (3,390 ) 13,910 — 9,691 Income (loss) before equity-method investment activity, net and income tax expense $ 111,601 $ (15,605 ) $ 238,881 $ 2,466 $ 337,343 Gain (loss) on equity-method investment activity, net 29,969 285,289 133,186 (456,142 ) (7,698 ) Income before income tax expense $ 141,570 $ 269,684 $ 372,067 $ (453,676 ) $ 329,645 Income tax expense 8,384 — 53,714 — 62,098 Net income $ 133,186 $ 269,684 $ 318,353 $ (453,676 ) $ 267,547 Net loss attributable to redeemable non-controlling interest — — 2,137 — 2,137 Net income attributable to Genpact Limited shareholders $ 133,186 $ 269,684 $ 320,490 $ (453,676 ) $ 269,684 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income (Loss) Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 174,762 $ 299,635 $ 340,320 $ (532,698 ) $ 282,019 $ (761 ) Other comprehensive income: Currency translation adjustments (72,071 ) (109,656 ) (109,656 ) 181,727 (109,656 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 498 (46,293 ) (46,293 ) 45,795 (46,293 ) — Retirement benefits, net of taxes (190 ) 1,454 1,454 (1,264 ) 1,454 — Other comprehensive income (loss) (71,763 ) (154,495 ) (154,495 ) 226,258 (154,495 ) (424 ) Comprehensive income (loss) $ 102,999 $ 145,140 $ 185,825 $ (306,440 ) $ 127,524 $ (1,185 ) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 $ (2,270 ) Other comprehensive income: Currency translation adjustments 74,716 93,871 93,871 (168,587 ) 93,871 (341 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 9,788 12,611 12,611 (22,399 ) 12,611 - Retirement benefits, net of taxes 475 (3,787 ) (3,787 ) 3,312 (3,787 ) - Other comprehensive income (loss) 84,979 102,695 102,695 (187,674 ) 102,695 (341 ) Comprehensive income (loss) $ 160,636 $ 365,806 $ 363,616 $ (524,252 ) $ 365,806 $ (2,611 ) Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 133,186 $ 269,684 $ 320,490 $ (453,676 ) $ 269,684 $ (2,137 ) Other comprehensive income: Currency translation adjustments (31,679 ) (46,340 ) (46,340 ) 78,019 (46,340 ) 104 Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 42,016 43,742 43,742 (85,758 ) 43,742 - Retirement benefits, net of taxes (717 ) (4,042 ) (4,042 ) 4,759 (4,042 ) - Other comprehensive income (loss) 9,620 (6,640 ) (6,640 ) (2,980 ) (6,640 ) 104 Comprehensive income (loss) $ 142,806 $ 263,044 $ 313,850 $ (456,656 ) $ 263,044 $ (2,033 ) |
Condensed Consolidating Cash Flow | Condensed Consolidating Cash Flow Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for)/provided by operating activities $ (266,889 ) $ 11,905 $ 25,399 $ 569,096 $ 339,511 Investing activities Purchase of property, plant and equipment — — (84,978 ) — (84,978 ) Payment for acquired/internally generated intangible assets (including intangibles under development) — — (75,439 ) — (75,439 ) Proceeds from sale of property, plant and equipment — — 668 — 668 Investment in equity affiliates — — - — - Investment in subsidiaries (97,730 ) — - 97,730 - Dividend received - — - - - Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany 91,760 (50,393 ) - (41,368 ) - Payment for business acquisitions, net of cash acquired — — (111,571 ) — (111,571 ) Payment for purchase of redeemable non-controlling interest — — (4,730 ) — (4,730 ) Net cash (used for)/provided by investing activities $ (5,970 ) $ (50,393 ) (276,050 ) $ 56,362 $ (276,050 ) Financing activities Repayment of capital lease obligations — — (2,395 ) — (2,395 ) Payment of debt issuance costs — — (4,293 ) — (4,293 ) Proceeds from long-term debt 100,000 — 29,186 — 129,186 Repayment of long-term debt (2,450 ) — (163,736 ) — (166,186 ) Proceeds from short-term borrowings 100,000 — 150,000 — 250,000 Repayment of Short-term borrowings — — (125,000 ) — (125,000 ) Proceeds from intercompany loans 172,047 308,500 334,320 (814,867 ) — Repayment of intercompany loans (81,479 ) (56,500 ) (107,792 ) 245,771 — Proceeds from issuance of common shares under stock-based compensation plans — 14,034 — — 14,034 Proceeds from issuance of common shares — — 113,954 (113,954 ) — Payment for net settlement of stock-based awards — (15,919 ) — — (15,919 ) Payment of earn-out/deferred consideration (1,797 ) — (1,559 ) — (3,356 ) Dividend paid — (57,102 ) (16,224 ) 16,224 (57,102 ) Payment for stock repurchased and retired — (154,058 ) — — (154,058 ) Payment for expenses related to stock repurchase — (98 ) — — (98 ) Payment for redemption of debentures/(proceeds) from issuance of bonds, intercompany — — (41,366 ) 41,366 — Net cash (used for)/provided by financing activities $ 286,321 $ 38,857 $ 165,095 $ (625,460 ) $ (135,187 ) Effect of exchange rate changes (5,172 ) — (59,174 ) — (64,346 ) Net increase (decrease) in cash and cash equivalents 13,462 369 (85,557 ) — (71,726 ) 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 $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 Condensed Consolidating Cash Flow Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for)/provided by operating activities $ (315,877 ) $ (8,345 ) $ 511,847 $ 171,453 $ 359,078 Investing activities Purchase of property, plant and equipment — — (57,231 ) — (57,231 ) Payment for acquired/internally generated intangible assets (including intangibles under development) — — (16,441 ) — (16,441 ) Proceeds from sale of property, plant and equipment — — 1,738 — 1,738 Investment in equity affiliates (523 ) — 27 — (496 ) Investment in subsidiaries (3,638 ) — 51,127 (47,489 ) — Payment for business acquisitions, net of cash acquired — — (284,822 ) — (284,822 ) Proceeds from divestiture of business, net of cash divested — — (4,738 ) — (4,738 ) Net cash (used for)/provided by investing activities $ (4,161 ) $ — $ (310,340 ) $ (47,489 ) $ (361,990 ) Financing activities Repayment of capital lease obligations — — (2,708 ) — (2,708 ) Payment of debt issuance costs (2,630 ) — — — (2,630 ) Proceeds from long-term debt 350,000 — — — 350,000 Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 295,000 — 295,000 Repayment of short-term borrowings — — (285,000 ) — (285,000 ) Proceeds from intercompany loans — 263,886 — (263,886 ) — Repayment of intercompany loans (35,000 ) — (80,328 ) 115,328 — Proceeds from issuance of common shares under stock-based compensation plans — 15,528 — — 15,528 Payment for net settlement of stock-based awards — (10,296 ) — — (10,296 ) Payment of earn-out/deferred consideration — — (6,219 ) — (6,219 ) Dividend paid — (46,686 ) — — (46,686 ) Payment for stock repurchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock repurchase — (16 ) — — (16 ) Change in amounts due from/ due to consolidated affiliates — — (24,594 ) 24,594 — Excess tax benefit on stock-based compensation — — — — — Net cash (used for)/provided by financing activities $ 312,370 $ 2,632 $ (143,849 ) $ (123,964 ) $ 47,189 Effect of exchange rate changes 960 — 36,608 — 37,568 Net increase (decrease) in cash and cash equivalents (7,668 ) (5,713 ) 57,658 — 44,277 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 $ 4,507 $ 2,136 $ 497,825 $ — $ 504,468 Condensed Consolidating Cash Flow Year ended December 31, 2016 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for)/provided by operating activities $ (42,212 ) $ 25,592 $ (66,519 ) $ 428,911 $ 345,772 Investing activities Purchase of property, plant and equipment (625 ) — (81,301 ) — (81,926 ) Payment for acquired/internally generated intangible assets (including intangibles under development) — — (6,846 ) — (6,846 ) Proceeds from sale of property, plant and equipment — — 547 — 547 Investment in equity affiliates (5,884 ) — (3,736 ) — (9,620 ) Investment in subsidiaries (53,619 ) — (8,101 ) 61,720 — Payment for business acquisitions, net of cash acquired — — (45,162 ) — (45,162 ) Proceeds from divestiture of business, net of cash divested — — 17,242 — 17,242 Net cash (used for)/provided by investing activities $ (60,128 ) $ — $ (127,357 ) $ 61,720 $ (125,765 ) Financing activities Repayment of capital lease obligations — — (1,793 ) — (1,793 ) Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 200,000 — 200,000 Repayment of short-term borrowings — — (61,500 ) — (61,500 ) Proceeds from intercompany loans 73,000 303,000 50,445 (426,445 ) — Repayment of intercompany loans — — — — — Proceeds from issuance of common shares under stock-based compensation plans — 18,228 — — 18,228 Proceeds from issuance of common shares 40,000 — — (40,000 ) — Payment for net settlement of stock-based awards — (769 ) — — (769 ) Payment of earn-out/deferred consideration — — (1,485 ) — (1,485 ) Payment for stock purchased and retired — (345,200 ) 24,186 (24,186 ) (345,200 ) Payment for expenses related to stock purchase — (279 ) — — (279 ) Net cash (used for)/provided by financing activities $ 113,000 $ (25,020 ) $ 169,853 $ (490,631 ) $ (232,798 ) Effect of exchange rate changes (361 ) — (15,132 ) — (15,493 ) Net increase (decrease) in cash and cash equivalents 10,660 572 (24,023 ) — (12,791 ) Cash and cash equivalents at the beginning of the period 916 7,277 442,714 — 450,907 Cash and cash equivalents at the end of the period $ 11,215 $ 7,849 $ 403,559 $ — $ 422,623 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Dec. 31, 2018EmployeeCountry |
Accounting Policies [Abstract] | |
Number of employees around the globe, minimum | Employee | 87,000 |
Number of countries in which entity operates | Country | 25 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Cumulative effect of adoption resulted increase in retained earning | $ 438,453,000 | [1] | $ 355,982,000 | |||
Impact on contract cost asset | [1],[2] | 160,193,000 | ||||
Impact on deferred tax liabilities | 8,080,000 | $ 6,747,000 | ||||
Gains (losses) on restructuring of debt | $ 0 | |||||
General Electric Company | Credit Concentration Risk | Receivables | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Percentage of accounts receivables | 11.00% | 11.00% | ||||
General Electric Company | Credit Concentration Risk | Revenue From Contract With Customer | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Percentage of accounts receivables | 9.00% | 10.00% | 14.00% | |||
Minimum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Short term investment, maturity period | 90 days | |||||
Minimum | ASU 2016-02 | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Additional lease liabilities | $ 320,000,000 | |||||
Additional right of use assets | $ 300,000,000 | |||||
Maximum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Short term investment, maturity period | 1 year | |||||
Maximum | ASU 2016-02 | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Additional lease liabilities | $ 340,000,000 | |||||
Additional right of use assets | 320,000,000 | |||||
Adjustments | Topic 606 | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Cumulative effect of adoption resulted increase in retained earning | (19,907,000) | [1] | $ 17,924,000 | |||
Impact on contract cost asset | $ (160,193,000) | [1],[2] | 23,227,000 | |||
Impact on deferred tax liabilities | 5,303,000 | |||||
Contract assets and contract liabilities netted off | $ 21,348,000 | |||||
[1] | The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Current assets | |||||||
Cash and cash equivalents | $ 368,396 | $ 504,468 | $ 422,623 | $ 450,907 | |||
Accounts receivable, net | 774,184 | 693,085 | |||||
Prepaid expenses and other current assets | 212,477 | [1],[2] | 236,342 | ||||
Total current assets | 1,355,057 | 1,433,895 | |||||
Property, plant and equipment, net | 212,715 | 207,030 | |||||
Deferred tax assets | 74,566 | [3] | 76,929 | ||||
Investment in equity affiliates | 836 | 886 | |||||
Intangible assets, net | 177,087 | 131,590 | |||||
Goodwill | 1,393,832 | 1,337,122 | 1,069,408 | ||||
Contract cost assets | [1],[3] | 160,193 | |||||
Other assets | 155,159 | [1],[2] | 262,169 | ||||
Total assets | 3,529,445 | 3,449,621 | |||||
Current liabilities | |||||||
Short-term borrowings | 295,000 | 170,000 | |||||
Current portion of long-term debt | 33,483 | 39,226 | |||||
Accounts payable | 42,584 | 15,050 | |||||
Income taxes payable | 33,895 | 30,026 | |||||
Accrued expenses and other current liabilities | 571,350 | [2] | 584,482 | ||||
Total current liabilities | 976,312 | 838,784 | |||||
Long-term debt, less current portion | 975,645 | 1,006,687 | |||||
Deferred tax liabilities | 8,080 | 6,747 | |||||
Other liabilities | 165,226 | [2] | 168,609 | ||||
Total liabilities | 2,125,263 | 2,020,827 | |||||
Redeemable non-controlling interest | 4,750 | 4,520 | |||||
Shareholders' equity | |||||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | |||||||
Common shares, $0.01 par value, 500,000,000 authorized,192,825,207 and 189,346,101 issued and outstanding as of December 31, 2017 and December 31, 2018, respectively | 1,888 | 1,924 | |||||
Additional paid-in capital | 1,471,301 | 1,421,368 | |||||
Retained earnings | 438,453 | [3] | 355,982 | ||||
Accumulated other comprehensive income (loss) | (507,460) | (355,230) | |||||
Total equity | 1,404,182 | 1,424,044 | $ 1,286,648 | $ 1,304,356 | |||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | 3,529,445 | 3,449,621 | |||||
ASU 2014-09 | |||||||
Current assets | |||||||
Cash and cash equivalents | 368,396 | 504,468 | |||||
ASU 2014-09 | Adjustments | |||||||
Current assets | |||||||
Prepaid expenses and other current assets | [1],[2] | 56,594 | |||||
Total current assets | 56,594 | ||||||
Deferred tax assets | [3] | 5,984 | |||||
Contract cost assets | (160,193) | [1],[3] | $ 23,227 | ||||
Other assets | [1],[2] | 107,133 | |||||
Total assets | 9,518 | ||||||
Current liabilities | |||||||
Accrued expenses and other current liabilities | [2] | 10,289 | |||||
Total current liabilities | 10,289 | ||||||
Deferred tax liabilities | 5,303 | ||||||
Other liabilities | [2] | 19,136 | |||||
Total liabilities | 29,425 | ||||||
Shareholders' equity | |||||||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | |||||||
Retained earnings | (19,907) | [3] | $ 17,924 | ||||
Total equity | (19,907) | ||||||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | 9,518 | ||||||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||||
Current assets | |||||||
Cash and cash equivalents | 368,396 | $ 504,468 | |||||
Accounts receivable, net | 774,184 | ||||||
Prepaid expenses and other current assets | [1],[2] | 269,071 | |||||
Total current assets | 1,411,651 | ||||||
Property, plant and equipment, net | 212,715 | ||||||
Deferred tax assets | [3] | 80,550 | |||||
Investment in equity affiliates | 836 | ||||||
Intangible assets, net | 177,087 | ||||||
Goodwill | 1,393,832 | ||||||
Other assets | [1],[2] | 262,292 | |||||
Total assets | 3,538,963 | ||||||
Current liabilities | |||||||
Short-term borrowings | 295,000 | ||||||
Current portion of long-term debt | 33,483 | ||||||
Accounts payable | 42,584 | ||||||
Income taxes payable | 33,895 | ||||||
Accrued expenses and other current liabilities | [2] | 581,639 | |||||
Total current liabilities | 986,601 | ||||||
Long-term debt, less current portion | 975,645 | ||||||
Deferred tax liabilities | 8,080 | ||||||
Other liabilities | [2] | 184,362 | |||||
Total liabilities | 2,154,688 | ||||||
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 189,346,101 issued and outstanding as of December 31, 2017 and December 31, 2018, respectively | 1,888 | ||||||
Additional paid-in capital | 1,471,301 | ||||||
Retained earnings | [3] | 418,546 | |||||
Accumulated other comprehensive income (loss) | (507,460) | ||||||
Total equity | 1,384,275 | ||||||
Commitments and contingencies | |||||||
Total liabilities, redeemable non-controlling interest and equity | $ 3,538,963 | ||||||
[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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. | ||||||
[2] | As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. | ||||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 which has been offset against deferred tax assets. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Balance Sheet (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 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 | 189,346,101 | 192,825,207 | |||
Common shares, outstanding | 189,346,101 | 192,825,207 | |||
Impact on contract cost asset | [1],[2] | $ 160,193 | |||
Prepaid expenses and other current assets | 212,477 | [1],[3] | $ 236,342 | ||
Other assets | 155,159 | [1],[3] | 262,169 | ||
Cumulative effect of adoption resulted increase in retained earning | 438,453 | [2] | 355,982 | ||
Impact on deferred tax assets | 74,566 | [2] | 76,929 | ||
Accrued expenses and other current liabilities | 571,350 | [3] | 584,482 | ||
Other liabilities | 165,226 | [3] | 168,609 | ||
Process Transition Activities | |||||
Revenue Recognition [Line Items] | |||||
Impact on contract cost asset | 134,302 | 139,284 | |||
Sales Incentive Programs | |||||
Revenue Recognition [Line Items] | |||||
Impact on contract cost asset | 25,891 | $ 23,227 | |||
ASU 2014-09 | Sales Incentive Programs | |||||
Revenue Recognition [Line Items] | |||||
Impact on contract cost asset | 25,891 | ||||
Adjustments | ASU 2014-09 | |||||
Revenue Recognition [Line Items] | |||||
Impact on contract cost asset | (160,193) | [1],[2] | $ 23,227 | ||
Prepaid expenses and other current assets | [1],[3] | 56,594 | |||
Other assets | [1],[3] | 107,133 | |||
Cumulative effect of adoption resulted increase in retained earning | (19,907) | [2] | $ 17,924 | ||
Impact on deferred tax assets | [2] | 5,984 | |||
Accrued expenses and other current liabilities | [3] | 10,289 | |||
Other liabilities | [3] | 19,136 | |||
Adjustments | ASU 2014-09 | Contract Assets | |||||
Revenue Recognition [Line Items] | |||||
Prepaid expenses and other current assets | (7,890) | ||||
Other assets | (21,535) | ||||
Adjustments | ASU 2014-09 | Contract Liabilities | |||||
Revenue Recognition [Line Items] | |||||
Accrued expenses and other current liabilities | (10,289) | ||||
Other liabilities | (19,136) | ||||
Adjustments | ASU 2014-09 | Process Transition Activities | |||||
Revenue Recognition [Line Items] | |||||
Impact on contract cost asset | 134,302 | ||||
Prepaid expenses and other current assets | (48,704) | ||||
Other assets | (85,598) | ||||
Adjustments | ASU 2014-09 | Sales Incentive Programs | |||||
Revenue Recognition [Line Items] | |||||
Impact on contract cost asset | 160,193 | ||||
Cumulative effect of adoption resulted increase in retained earning | 19,907 | ||||
Impact on deferred tax assets | $ (5,984) | ||||
[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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. | ||||
[2] | The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 which has been offset against deferred tax assets. | ||||
[3] | As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |||
Revenue Recognition [Line Items] | |||||||||||||||
Net revenues | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 3,000,790 | $ 2,736,929 | $ 2,570,756 | ||||
Cost of revenue | 1,921,768 | 1,681,438 | 1,554,340 | ||||||||||||
Gross profit | 302,205 | 266,566 | 265,663 | 244,588 | 279,610 | 280,034 | 256,189 | 239,658 | 1,079,022 | 1,055,491 | 1,016,416 | ||||
Operating expenses: | |||||||||||||||
Selling, general and administrative expenses | 693,865 | [2] | 689,461 | 652,967 | |||||||||||
Amortization of acquired intangible assets | 38,850 | 36,412 | 27,183 | ||||||||||||
Other operating (income) expense, net | (1,845) | (1,661) | (4,940) | ||||||||||||
Income from operations | 110,841 | 94,028 | 79,522 | 63,761 | 73,305 | 97,919 | 80,959 | 79,096 | 348,152 | 331,279 | 341,206 | ||||
Foreign exchange gains (losses), net | 15,239 | 1,996 | 2,630 | ||||||||||||
Interest income (expense), net | (37,119) | (31,735) | (16,184) | ||||||||||||
Other income (expense), net | 35,761 | 23,586 | 9,691 | ||||||||||||
Income before equity-method investment activity, net and income tax expense | 106,632 | 97,724 | 81,668 | 76,009 | 81,559 | 89,742 | 84,582 | 69,243 | 362,033 | 325,126 | 337,343 | ||||
Equity-method investment activity, net | (12) | (4,543) | (7,698) | ||||||||||||
Income before income tax expense | 362,021 | 320,583 | 329,645 | ||||||||||||
Income tax expense (benefit) | 80,763 | 59,742 | 62,098 | ||||||||||||
Net income | 79,147 | 73,603 | 64,574 | 63,934 | 66,138 | 73,161 | 69,102 | 52,440 | 281,258 | 260,841 | 267,547 | ||||
Net loss (income) attributable to non-controlling interest | 761 | 944 | 584 | (156) | 898 | 761 | 2,270 | 2,137 | |||||||
Net income attributable to Genpact Limited shareholders | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | 282,019 | $ 263,111 | $ 269,684 | ||||
ASU 2014-09 | |||||||||||||||
Operating expenses: | |||||||||||||||
Amortization of acquired intangible assets | 38,850 | ||||||||||||||
Equity-method investment activity, net | (12) | ||||||||||||||
Net income | [3] | 281,258 | |||||||||||||
Net loss (income) attributable to non-controlling interest | 761 | ||||||||||||||
Net income attributable to Genpact Limited shareholders | [3] | 282,019 | |||||||||||||
ASU 2014-09 | Adjustments | |||||||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative expenses | [2] | 2,664 | |||||||||||||
Income from operations | (2,664) | ||||||||||||||
Income before equity-method investment activity, net and income tax expense | (2,664) | ||||||||||||||
Income before income tax expense | (2,664) | ||||||||||||||
Income tax expense (benefit) | (681) | ||||||||||||||
Net income | [3] | (1,983) | |||||||||||||
Net income attributable to Genpact Limited shareholders | [3] | (1,983) | |||||||||||||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||||||||||||
Revenue Recognition [Line Items] | |||||||||||||||
Net revenues | 3,000,790 | ||||||||||||||
Cost of revenue | 1,921,768 | ||||||||||||||
Gross profit | 1,079,022 | ||||||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative expenses | [2] | 696,529 | |||||||||||||
Amortization of acquired intangible assets | 38,850 | ||||||||||||||
Other operating (income) expense, net | (1,845) | ||||||||||||||
Income from operations | 345,488 | ||||||||||||||
Foreign exchange gains (losses), net | 15,239 | ||||||||||||||
Interest income (expense), net | (37,119) | ||||||||||||||
Other income (expense), net | 35,761 | ||||||||||||||
Income before equity-method investment activity, net and income tax expense | 359,369 | ||||||||||||||
Equity-method investment activity, net | (12) | ||||||||||||||
Income before income tax expense | 359,357 | ||||||||||||||
Income tax expense (benefit) | 80,082 | ||||||||||||||
Net income | [3] | 279,275 | |||||||||||||
Net loss (income) attributable to non-controlling interest | 761 | ||||||||||||||
Net income attributable to Genpact Limited shareholders | [3] | $ 280,036 | |||||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. | ||||||||||||||
[2] | During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452 resulting in a net adjustment of $2,664 with a corresponding impact on income tax benefit of $681. | ||||||||||||||
[3] | During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452, resulting in a net adjustment of $2,664 and a tax impact of $(681) which is further adjusted by note (g) below. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Statement of Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Revenue Recognition [Line Items] | |||||
Income tax expense (benefit) | $ 80,763 | $ 59,742 | $ 62,098 | ||
ASU 2014-09 | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 14,788 | ||||
ASU 2014-09 | Balances without adoption of Topic 606 | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 17,452 | ||||
Income tax expense (benefit) | 80,082 | ||||
ASU 2014-09 | Adjustments | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 2,664 | ||||
Income tax expense (benefit) | $ (681) | ||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Summary of Significant Accoun_9
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 | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Operating activities | ||||||||||||||
Net income attributable to Genpact Limited shareholders | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | $ 282,019 | $ 263,111 | [1] | $ 269,684 | [1] | |
Redeemable non-controlling interest, Net income (loss) | (761) | (944) | (584) | 156 | (898) | (761) | (2,270) | [1] | (2,137) | [1] | ||||
Net income | 79,147 | $ 73,603 | $ 64,574 | 63,934 | 66,138 | $ 73,161 | $ 69,102 | 52,440 | 281,258 | 260,841 | [1] | 267,547 | [1] | |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
Depreciation and amortization | 64,868 | 58,503 | 54,553 | |||||||||||
Amortization of debt issuance costs (including loss on extinguishment of debt) | 3,975 | 1,884 | 1,531 | |||||||||||
Amortization of acquired intangible assets | 38,850 | 36,412 | [1] | 27,183 | [1] | |||||||||
Write-down of intangible assets and property, plant and equipment | 4,265 | 9,311 | 11,195 | |||||||||||
Reserve for doubtful receivables | 1,857 | 9,819 | 7,282 | |||||||||||
Unrealized loss (gain) on revaluation of foreign currency asset/liability | 3,352 | (11,830) | 1,717 | |||||||||||
Equity-method investment activity, net | 12 | 4,543 | [1] | 7,698 | [1] | |||||||||
Stock-based compensation expense | 48,998 | 35,685 | 25,113 | |||||||||||
Deferred income taxes | 6,054 | (10,391) | 30,454 | |||||||||||
Others, net | 1,317 | (4,785) | (41) | |||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Increase in accounts receivable | (76,894) | (57,267) | (48,612) | |||||||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | (76,392) | (28,381) | (62,852) | |||||||||||
Increase (decrease) in accounts payable | 26,401 | (2,155) | (463) | |||||||||||
Increase in accrued expenses, other current liabilities and other liabilities | 5,993 | 46,581 | 27,977 | |||||||||||
Increase in income taxes payable | 5,597 | 4,640 | 704 | |||||||||||
Net cash provided by operating activities | 339,511 | 359,078 | 345,772 | |||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | (84,978) | (57,231) | (81,926) | |||||||||||
Payment for internally generated intangible assets (including intangibles under development) | (75,439) | (16,441) | (6,846) | |||||||||||
Proceeds from sale of property, plant and equipment | 668 | 1,738 | 547 | |||||||||||
Payment for business acquisitions, net of cash acquired | (111,571) | (284,822) | (45,162) | |||||||||||
Payment for redeemable non-controlling interest | (4,730) | |||||||||||||
Net cash used for investing activities | (276,050) | (361,990) | (125,765) | |||||||||||
Financing activities | ||||||||||||||
Repayment of capital lease obligations | (2,395) | (2,708) | (1,793) | |||||||||||
Payment of debt issuance and refinancing costs | (4,293) | (2,630) | ||||||||||||
Proceeds from long-term debt | 129,186 | 350,000 | ||||||||||||
Repayment of long-term debt | (166,186) | (40,000) | (40,000) | |||||||||||
Proceeds from short-term borrowings | 250,000 | 295,000 | 200,000 | |||||||||||
Repayment of short-term borrowings | (125,000) | (285,000) | (61,500) | |||||||||||
Proceeds from issuance of common shares under stock-based compensation plans | 14,034 | 15,528 | 18,228 | |||||||||||
Payment for net settlement of stock-based awards | (15,919) | (10,296) | (769) | |||||||||||
Payment of earn-out/deferred consideration | (3,356) | (6,219) | (1,485) | |||||||||||
Dividend paid | (57,102) | (46,686) | ||||||||||||
Payment for stock repurchased and retired | (154,058) | (219,784) | (345,200) | |||||||||||
Payment for expenses related to stock repurchase | (98) | (16) | (279) | |||||||||||
Net cash provided by/(used for) financing activities | (135,187) | 47,189 | (232,798) | |||||||||||
Effect of exchange rate changes | (64,346) | 37,568 | (15,493) | |||||||||||
Net increase (decrease) in cash and cash equivalents | (71,726) | 44,277 | (12,791) | |||||||||||
Cash and cash equivalents at the beginning of the period | 504,468 | $ 422,623 | 504,468 | 422,623 | 450,907 | |||||||||
Cash and cash equivalents at the end of the period | 368,396 | 504,468 | 368,396 | 504,468 | $ 422,623 | |||||||||
ASU 2014-09 | ||||||||||||||
Operating activities | ||||||||||||||
Net income attributable to Genpact Limited shareholders | [2] | 282,019 | ||||||||||||
Redeemable non-controlling interest, Net income (loss) | (761) | |||||||||||||
Net income | [2] | 281,258 | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
Depreciation and amortization | 64,868 | |||||||||||||
Amortization of debt issuance costs (including loss on extinguishment of debt) | 3,975 | |||||||||||||
Amortization of acquired intangible assets | 38,850 | |||||||||||||
Write-down of intangible assets and property, plant and equipment | 4,265 | |||||||||||||
Reserve for doubtful receivables | 1,857 | |||||||||||||
Unrealized loss (gain) on revaluation of foreign currency asset/liability | 3,352 | |||||||||||||
Equity-method investment activity, net | 12 | |||||||||||||
Stock-based compensation expense | 48,998 | |||||||||||||
Deferred income taxes | [2] | 6,054 | ||||||||||||
Others, net | 1,317 | |||||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Increase in accounts receivable | (76,894) | |||||||||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [2] | (76,392) | ||||||||||||
Increase (decrease) in accounts payable | 26,401 | |||||||||||||
Increase in accrued expenses, other current liabilities and other liabilities | 5,993 | |||||||||||||
Increase in income taxes payable | 5,597 | |||||||||||||
Net cash provided by operating activities | 339,511 | |||||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | (84,978) | |||||||||||||
Payment for internally generated intangible assets (including intangibles under development) | (75,439) | |||||||||||||
Proceeds from sale of property, plant and equipment | 668 | |||||||||||||
Payment for business acquisitions, net of cash acquired | (111,571) | |||||||||||||
Payment for redeemable non-controlling interest | (4,730) | |||||||||||||
Net cash used for investing activities | (276,050) | |||||||||||||
Financing activities | ||||||||||||||
Repayment of capital lease obligations | (2,395) | |||||||||||||
Payment of debt issuance and refinancing costs | (4,293) | |||||||||||||
Proceeds from long-term debt | 129,186 | |||||||||||||
Repayment of long-term debt | (166,186) | |||||||||||||
Proceeds from short-term borrowings | 250,000 | |||||||||||||
Repayment of short-term borrowings | (125,000) | |||||||||||||
Proceeds from issuance of common shares under stock-based compensation plans | 14,034 | |||||||||||||
Payment for net settlement of stock-based awards | (15,919) | |||||||||||||
Payment of earn-out/deferred consideration | (3,356) | |||||||||||||
Dividend paid | (57,102) | |||||||||||||
Payment for stock repurchased and retired | (154,058) | |||||||||||||
Payment for expenses related to stock repurchase | (98) | |||||||||||||
Net cash provided by/(used for) financing activities | (135,187) | |||||||||||||
Effect of exchange rate changes | (64,346) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (71,726) | |||||||||||||
Cash and cash equivalents at the beginning of the period | 504,468 | 504,468 | ||||||||||||
Cash and cash equivalents at the end of the period | 368,396 | 504,468 | 368,396 | 504,468 | ||||||||||
ASU 2014-09 | Adjustments | ||||||||||||||
Operating activities | ||||||||||||||
Net income attributable to Genpact Limited shareholders | [2] | (1,983) | ||||||||||||
Net income | [2] | (1,983) | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
Deferred income taxes | [2] | (681) | ||||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [2] | (5,413) | ||||||||||||
Increase in accrued expenses, other current liabilities and other liabilities | 8,077 | |||||||||||||
ASU 2014-09 | Balances without adoption of Topic 606 | ||||||||||||||
Operating activities | ||||||||||||||
Net income attributable to Genpact Limited shareholders | [2] | 280,036 | ||||||||||||
Redeemable non-controlling interest, Net income (loss) | (761) | |||||||||||||
Net income | [2] | 279,275 | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
Depreciation and amortization | 64,868 | |||||||||||||
Amortization of debt issuance costs (including loss on extinguishment of debt) | 3,975 | |||||||||||||
Amortization of acquired intangible assets | 38,850 | |||||||||||||
Write-down of intangible assets and property, plant and equipment | 4,265 | |||||||||||||
Reserve for doubtful receivables | 1,857 | |||||||||||||
Unrealized loss (gain) on revaluation of foreign currency asset/liability | 3,352 | |||||||||||||
Equity-method investment activity, net | 12 | |||||||||||||
Stock-based compensation expense | 48,998 | |||||||||||||
Deferred income taxes | [2] | 5,373 | ||||||||||||
Others, net | 1,317 | |||||||||||||
Change in operating assets and liabilities: | ||||||||||||||
Increase in accounts receivable | (76,894) | |||||||||||||
Increase in prepaid expenses, other current assets, contract cost assets and other assets | [2] | (81,805) | ||||||||||||
Increase (decrease) in accounts payable | 26,401 | |||||||||||||
Increase in accrued expenses, other current liabilities and other liabilities | 14,070 | |||||||||||||
Increase in income taxes payable | 5,597 | |||||||||||||
Net cash provided by operating activities | 339,511 | |||||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | (84,978) | |||||||||||||
Payment for internally generated intangible assets (including intangibles under development) | (75,439) | |||||||||||||
Proceeds from sale of property, plant and equipment | 668 | |||||||||||||
Payment for business acquisitions, net of cash acquired | (111,571) | |||||||||||||
Payment for redeemable non-controlling interest | (4,730) | |||||||||||||
Net cash used for investing activities | (276,050) | |||||||||||||
Financing activities | ||||||||||||||
Repayment of capital lease obligations | (2,395) | |||||||||||||
Payment of debt issuance and refinancing costs | (4,293) | |||||||||||||
Proceeds from long-term debt | 129,186 | |||||||||||||
Repayment of long-term debt | (166,186) | |||||||||||||
Proceeds from short-term borrowings | 250,000 | |||||||||||||
Repayment of short-term borrowings | (125,000) | |||||||||||||
Proceeds from issuance of common shares under stock-based compensation plans | 14,034 | |||||||||||||
Payment for net settlement of stock-based awards | (15,919) | |||||||||||||
Payment of earn-out/deferred consideration | (3,356) | |||||||||||||
Dividend paid | (57,102) | |||||||||||||
Payment for stock repurchased and retired | (154,058) | |||||||||||||
Payment for expenses related to stock repurchase | (98) | |||||||||||||
Net cash provided by/(used for) financing activities | (135,187) | |||||||||||||
Effect of exchange rate changes | (64,346) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (71,726) | |||||||||||||
Cash and cash equivalents at the beginning of the period | $ 504,468 | 504,468 | ||||||||||||
Cash and cash equivalents at the end of the period | $ 368,396 | $ 504,468 | $ 368,396 | $ 504,468 | ||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. | |||||||||||||
[2] | During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452, resulting in a net adjustment of $2,664 and a tax impact of $(681) which is further adjusted by note (g) below. |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 606 on Consolidated Statement of Cash Flow (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | ||
Revenue Recognition [Line Items] | |||||
Deferred income taxes | $ 6,054 | $ (10,391) | $ 30,454 | ||
ASU 2014-09 | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 14,788 | ||||
Deferred income taxes | [1] | 6,054 | |||
Balances without adoption of Topic 606 | ASU 2014-09 | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 17,452 | ||||
Deferred income taxes | [1] | 5,373 | |||
Adjustments | ASU 2014-09 | |||||
Revenue Recognition [Line Items] | |||||
Amortized contract cost asset amount | 2,664 | ||||
Deferred income taxes | [1] | $ (681) | |||
Contract assets and contract liabilities netted off | $ 21,348 | ||||
[1] | During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452, resulting in a net adjustment of $2,664 and a tax impact of $(681) which is further adjusted by note (g) below. |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Estimated Economic Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 40 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer Equipment and Servers | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Plant, Machinery and Equipment | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer software | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer software | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 7 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Property, plant and equipment, estimated useful lives description | Lesser of lease period or 10 Years |
Vehicles | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Vehicles | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Estimated Useful Lives of Intangible Assets Acquired/Developed (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Customer-Related Intangible Assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 14 years |
Customer-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 |
Marketing-Related Intangible Assets | Minimum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 1 year |
Technology-related intangible assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 8 years |
Technology-related intangible assets | Minimum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 2 years |
Other Intangible Assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 5 years |
Other Intangible Assets | Minimum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 3 years |
Business Acquisitions and Div_3
Business Acquisitions and Divestiture - Barkawi Management Consultants GmbH and Co. KG and Certain Related Entities - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Payment for business acquisitions, net of cash acquired | $ 111,571 | $ 284,822 | $ 45,162 | |
Goodwill | 1,393,832 | $ 1,337,122 | $ 1,069,408 | |
Barkawi | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Aug. 30, 2018 | |||
Ownership percentage acquired | 100.00% | |||
Purchase consideration | $ 101,307 | |||
Payment for business acquisitions, net of cash acquired | 95,625 | |||
Cash and cash equivalents | 5,682 | |||
Cash consideration to acquired certain assets and assumed certain liabilities | $ 100,969 | |||
Consideration payable | $ 338 | |||
Maximum measurement period for tax position evaluation | 1 year | |||
Acquired intangible assets, weighted average amortization period | 3 years | |||
Goodwill | $ 81,250 | |||
Acquisition related cost | 1,842 | |||
Acquired assets | 17,314 | |||
Liabilities assumed | 10,149 | |||
Recognized net deferred tax asset | 892 | |||
Barkawi | Customer-Related Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 10,200 | |||
Barkawi | Marketing-Related Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 1,800 |
Business Acquisitions and Div_4
Business Acquisitions and Divestiture - Commonwealth Informatics Inc. - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 03, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Payment for business acquisitions, net of cash acquired | $ 111,571 | $ 284,822 | $ 45,162 | |
Goodwill | 1,393,832 | $ 1,337,122 | $ 1,069,408 | |
Commonwealth | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Jul. 3, 2018 | |||
Ownership percentage acquired | 100.00% | |||
Purchase consideration | $ 17,599 | |||
Payment for business acquisitions, net of cash acquired | 16,123 | |||
Cash and cash equivalents | $ 1,477 | |||
Cash consideration to acquired certain assets and assumed certain liabilities | 17,333 | |||
Consideration payable | $ 266 | |||
Maximum measurement period for tax position evaluation | 1 year | |||
Acquired intangible assets, weighted average amortization period | 4 years | |||
Goodwill | $ 11,248 | |||
Acquisition related cost | 521 | |||
Acquired assets | 2,583 | |||
Liabilities assumed | 1,032 | |||
Commonwealth | Customer-Related Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 2,200 | |||
Commonwealth | Technology-Related Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 2,600 |
Business Acquisitions and Div_5
Business Acquisitions and Divestiture - Strategic Sourcing Excellence Limited - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 01, 2018 | Jan. 08, 2016 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,393,832 | $ 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 | ||||||
Acquisition related cost | $ 164 | ||||||
Acquired assets | 412 | ||||||
Liabilities assumed | 617 | ||||||
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 and Div_6
Business Acquisitions and Divestiture - TandemSeven, Inc. - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 05, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Payment for business acquisitions, net of cash acquired | $ 111,571 | $ 284,822 | $ 45,162 | |
Goodwill | $ 1,393,832 | $ 1,337,122 | $ 1,069,408 | |
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 liability | 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 and Div_7
Business Acquisitions and Divestiture - BrightClaim LLC and Associated Companies - Additional Information (Detail) - USD ($) $ in Thousands | May 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Payment for business acquisitions, net of cash acquired | $ 111,571 | $ 284,822 | $ 45,162 | |
Goodwill | $ 1,393,832 | $ 1,337,122 | $ 1,069,408 | |
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 liability | 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 and Div_8
Business Acquisitions and Divestiture - RAGE Frameworks, Inc. - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 13, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Payment for business acquisitions, net of cash acquired | $ 111,571 | $ 284,822 | $ 45,162 | |
Goodwill | $ 1,393,832 | $ 1,337,122 | $ 1,069,408 | |
Rage Frameworks, Inc. | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Apr. 13, 2017 | |||
Ownership percentage acquired | 100.00% | |||
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 and Div_9
Business Acquisitions and Divestiture - Other Acquisitions in 2017 - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Payment for business acquisitions, net of cash acquired | $ 111,571 | $ 284,822 | $ 45,162 |
Goodwill | $ 1,393,832 | 1,337,122 | $ 1,069,408 |
Other Acquisitions | |||
Business Acquisition [Line Items] | |||
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 liability | 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 | ||
U.S. Delivery Center | |||
Business Acquisition [Line Items] | |||
Contingent earn-out consideration-Low end | 0 | ||
Contingent earn-out consideration-High end | 10,000 | ||
Lease Dimensions Inc. | |||
Business Acquisition [Line Items] | |||
Contingent earn-out consideration-Low end | 0 | ||
Contingent earn-out consideration-High end | $ 3,000 |
Business Acquisitions and Di_10
Business Acquisitions and Divestiture - Summary of Acquisition Date, Goodwill Reporting Unit and Tax Deductibility of Goodwill of Each Acquisition (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
U.S. Delivery Center | |
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 |
Lease Dimensions Inc. | |
Business Acquisition [Line Items] | |
Acquisition date | Feb. 15, 2017 |
Goodwill reporting unit | Americas |
Tax deductibility - goodwill | Non-deductible |
Business Acquisitions and Di_11
Business Acquisitions and Divestiture - IT Support Business - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Loss (gain) on divestiture | $ 5,668 | $ (5,214) | |
IT Support Business | Europe | |||
Business Acquisition [Line Items] | |||
Sale proceeds | $ 0 | ||
Net revenues | 4,546 | ||
Net loss | $ (9,706) | ||
Loss (gain) on divestiture | $ 5,668 |
Business Acquisitions and Di_12
Business Acquisitions and Divestiture - Summary of Calculation of Loss on Sale of Business (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Net sale proceeds | $ (4,738) | $ 17,242 | |
Loss on divestiture included in other income (expense), net | $ 5,668 | $ (5,214) | |
IT Support Business | Europe | |||
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 - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and other bank balances | $ 368,396 | $ 504,468 | ||
Total | $ 368,396 | $ 504,468 | $ 422,623 | $ 450,907 |
Accounts Receivable, Net of R_3
Accounts Receivable, Net of Reserve for Doubtful Receivables - Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Opening Balance | $ 23,660 | $ 15,519 | $ 11,530 |
Additions due to acquisitions | 235 | ||
Reserve for doubtful receivables | 1,857 | 9,819 | 7,282 |
Deductions/effect of exchange rate fluctuations | (1,557) | (1,913) | (3,293) |
Closing balance | $ 23,960 | $ 23,660 | $ 15,519 |
Accounts Receivable, Net of R_4
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||||
Gross accounts receivable | $ 798,144,000 | $ 716,745,000 | ||
Reserve for doubtful receivables | 23,960,000 | 23,660,000 | $ 15,519,000 | $ 11,530,000 |
Net accounts receivable | 774,184,000 | 693,085,000 | ||
Accounts receivable due after one year | 4,099,000 | 1,624,000 | ||
Accounts receivable from related parties | 99,000 | 36,000 | ||
Reserve for doubtful receivables from related parties | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative instruments, assets | [1],[2] | $ 44,099 | $ 73,098 |
Deferred compensation plan assets | [1],[3] | 1,613 | |
Total, assets | 45,712 | 73,098 | |
Earn out consideration | [4],[5] | 17,073 | 24,732 |
Derivative instruments, liabilities | [2],[4] | 35,245 | 18,188 |
Deferred compensation plan liability | [4],[6] | 1,582 | |
Total, liabilities | 53,900 | 42,920 | |
Redeemable non-controlling interest | [7] | 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] | 44,099 | 73,098 |
Total, assets | 44,099 | 73,098 | |
Derivative instruments, liabilities | [2],[4] | 35,245 | 18,188 |
Total, liabilities | 35,245 | 18,188 | |
Fair Value, Inputs, Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | [1],[3] | 1,613 | |
Total, assets | 1,613 | ||
Earn out consideration | [4],[5] | 17,073 | 24,732 |
Deferred compensation plan liability | [4],[6] | 1,582 | |
Total, liabilities | $ 18,655 | 24,732 | |
Redeemable non-controlling interest | [7] | $ 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] | Deferred compensation plan assets consist of life insurance policies held under a Rabbi Trust. Assets held in the Rabbi Trust are valued based on the cash surrender value of the insurance contract, which is determined based on the fair value of the underlying assets included in the insurance portfolio and are therefore classified within level 3 of the valuation hierarchy. | ||
[4] | Included in “accrued expenses and other current liabilities” and “other liabilities” in the consolidated balance sheets. | ||
[5] | The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. | ||
[6] | The fair value of the deferred compensation plan liability is derived based on the fair value of the underlying assets in the insurance policies and is therefore classified within level 3 of the valuation hierarchy. | ||
[7] | The Company’s estimate of the fair value of redeemable non-controlling interest as of December 31, 2017 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions. |
Fair Value Measurements - Roll-
Fair Value Measurements - Roll-Forward of Fair Value of Earn-out Consideration Categorized as Level 3 in Fair Value Hierarchy (Detail) - Business Acquisition Contingent Consideration - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Opening balance | $ 24,732 | $ 22,435 | |
Earn-out consideration payable in connection with acquisitions | 10,720 | ||
Payments made on earn-out consideration | (3,356) | (7,239) | |
Change in fair value of earn out consideration | [1] | (5,655) | (3,695) |
Others | [2] | 1,352 | 2,511 |
Ending balance | $ 17,073 | $ 24,732 | |
[1] | Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. | ||
[2] | Interest expense is included in “interest income (expense), net” and the impact of changes in foreign exchange is reported in “foreign exchange gains (losses), net” in the consolidated statements of income. The cumulative translation adjustment is reported as a component of “other comprehensive income (loss).” |
Fair Value Measurements - Rol_2
Fair Value Measurements - Roll-Forward of Fair Value of Deferred Compensation Plan Assets Categorized as Level 3 in Fair Value Hierarchy (Detail) - Deferred Compensation Plan Assets $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Additions | $ 1,669 | |
Change in fair value of deferred compensation plan assets | (56) | [1] |
Closing balance | $ 1,613 | |
[1] | Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. |
Fair Value Measurements - Rol_3
Fair Value Measurements - Roll-Forward of Fair Value of Deferred Compensation Liabilities Categorized as Level 3 in Fair Value Hierarchy (Detail) - Deferred Compensation Liabilities $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Additions | $ 1,669 | |
Change in fair value of deferred compensation plan liabilities | (87) | [1] |
Ending balance | $ 1,582 | |
[1] | Changes in the fair value of deferred compensation liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Gains (losses) related to the ineffective portion of derivatives | $ 0 | $ 0 | $ 0 |
Forward Foreign Exchange Contracts | Maximum | |||
Derivative [Line Items] | |||
Derivative financial instrument contracts, maturity period | 60 months | ||
Interest Rate Swaps | Maximum | |||
Derivative [Line Items] | |||
Derivative financial instrument contracts, maturity period | 60 months |
Derivative Financial Instrume_4
Derivative Financial Instruments - Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 8,854,000 | $ 54,910,000 |
United States Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,439,000,000 | 1,289,400,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (3,643,000) | 54,398,000 |
United States Dollars (sell) Mexican Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 9,000,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (441,000) | |
United States Dollars (sell) Philippines Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 55,800,000 | 76,650,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (1,510,000) | 69,000 |
Euro (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 136,412,000 | 170,542,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 4,804,000 | (2,069,000) |
Pound Sterling (buy) United States Dollars (sell) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 128,000 | 24,041,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (128,000) | 253,000 |
Euro (sell) Romanian Leu (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 41,198,000 | 35,826,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (299,000) | (892,000) |
Japanese Yen (sell) Chinese Renminbi (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 40,568,000 | 60,768,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (2,195,000) | 1,918,000 |
Pound Sterling (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 27,517,000 | 80,871,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 495,000 | (2,478,000) |
Australian Dollars (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 89,780,000 | 136,092,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 3,548,000 | (5,180,000) |
Interest Rate Swap Floating To Fixed [Member] | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 507,425,000 | 432,117,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ 7,782,000 | $ 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 other market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Values of Derivative Instruments and Location in Financial Statements (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | $ 11,490 | $ 4,635 |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 225 | 254 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 23,038 | 43,557 |
Cash Flow Hedges | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 9,571 | 24,906 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 15,148 | 10,092 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | $ 19,872 | $ 7,842 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Comprehensive Income (Loss) [Line Items] | ||||
Opening balance, before-tax amount | $ 50,529 | $ 37,461 | $ (30,090) | |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount | [1] | 9,336 | 54,494 | (6,799) |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | (43,604) | 67,562 | 60,752 | |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | (52,940) | 13,068 | 67,551 | |
Closing balance, before-tax amount | (2,411) | 50,529 | 37,461 | |
Opening balance, tax (expense) or benefit | (14,436) | (13,979) | 9,830 | |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit | [1] | (1,073) | (17,725) | 409 |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | 5,574 | (18,182) | (23,400) | |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | 6,647 | (457) | (23,809) | |
Closing balance, tax (expense) or benefit | (5,524) | (14,436) | (13,979) | |
Opening balance, net of tax amount | 36,093 | 23,482 | (20,260) | |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount | [1] | 8,263 | 36,769 | (6,390) |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | (38,030) | 49,380 | 37,352 | |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | (46,293) | 12,611 | 43,742 | |
Closing balance, net of tax amount | (7,935) | $ 36,093 | $ 23,482 | |
ASU 2018-02 | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of ASU 2018-02, tax (expense) or benefit | 2,265 | |||
Adoption of ASU 2018-02, net of tax amount | $ 2,265 | |||
[1] | The tax (expense) benefit includes the effect of novating certain hedging instruments as part of an intercompany transfer. |
Derivative Financial Instrume_7
Derivative Financial Instruments - Gains or Losses Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ (43,604) | $ 67,562 | $ 60,752 | |
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 9,336 | 54,494 | (6,799) | |
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | (6,240) | 16,696 | 2,921 | |
Net revenues | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | (716) | 5,858 | 12,859 | |
Cost of Revenue | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 4,723 | 37,849 | (14,223) | |
Selling, General and Administrative Expenses | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 1,543 | 10,849 | (3,765) | |
Interest Expense | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 3,786 | (62) | (1,670) | |
Forward Foreign Exchange Contracts | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | (45,840) | 66,037 | 54,664 | |
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] | (6,240) | 16,696 | 2,921 |
Interest Rate Swaps | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ 2,236 | $ 1,525 | $ 6,088 | |
[1] | These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items, such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Prepaid Expense And Other Assets Current [Abstract] | |||
Advance income and non-income taxes | $ 58,701 | $ 51,832 | |
Deferred transition costs | 62,029 | ||
Contract asset | 22,472 | ||
Customer acquisition cost | 19,327 | ||
Prepaid expenses | 25,996 | 16,944 | |
Derivative instruments | 34,528 | 48,192 | |
Employee advances | 3,772 | 5,014 | |
Deposits | 2,758 | 4,719 | |
Advances to suppliers | 1,998 | 2,705 | |
Others | 62,252 | 25,580 | |
Prepaid expenses and other current assets, net | $ 212,477 | [1],[2] | $ 236,342 |
[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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. | ||
[2] | As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 660,754 | $ 666,031 |
Less: Accumulated depreciation and amortization | (448,039) | (459,001) |
Property, plant and equipment, net | 212,715 | 207,030 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,401 | 10,209 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 43,078 | 46,007 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 47,206 | 43,091 |
Computer Equipment and Servers | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 210,239 | 210,725 |
Plant, Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 88,937 | 92,981 |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 138,824 | 137,459 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 105,965 | 102,072 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,309 | 6,418 |
Capital Work in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 11,795 | $ 17,069 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 64,868 | $ 58,503 | $ 54,553 |
Property, plant and equipment held under capital lease arrangements, gross | 2,343 | 3,302 | |
Tangible assets write-down | 4,265 | 8,000 | |
Technology Related Intangible Assets | |||
Property Plant And Equipment [Line Items] | |||
Tangible assets write-down | 3,065 | 2,240 | |
Effect of Reclassification of Foreign Exchange (Gains) Losses | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | (231) | (1,712) | 744 |
Assets Held Under Capital Leases | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 1,395 | 1,682 | 1,564 |
Depreciation Expense on Property, Plant And Equipment | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 49,518 | 44,909 | 45,826 |
Computer Software | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 12,317 | 11,415 | $ 9,471 |
Tangible assets write-down | $ 1,200 | $ 5,760 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Opening balance | $ 1,337,122 | $ 1,069,408 |
Goodwill relating to acquisitions consummated during the period | 91,936 | 229,745 |
Impact of measurement period adjustments | 816 | (106) |
Effect of exchange rate fluctuations | (36,042) | 38,075 |
Closing balance | $ 1,393,832 | $ 1,337,122 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Allocated to Reporting Units (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | |||
Goodwill | $ 1,393,832 | $ 1,337,122 | $ 1,069,408 |
India | |||
Goodwill [Line Items] | |||
Goodwill | 794,902 | 735,596 | |
China | |||
Goodwill [Line Items] | |||
Goodwill | 59,319 | 60,171 | |
Europe | |||
Goodwill [Line Items] | |||
Goodwill | 40,033 | 41,775 | |
Americas | |||
Goodwill [Line Items] | |||
Goodwill | 57,021 | 57,021 | |
IT Services | |||
Goodwill [Line Items] | |||
Goodwill | $ 442,557 | $ 442,559 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill deductible for tax purposes | $ 187,546 | $ 120,617 | |||
Amortization of acquired intangible assets | 38,850 | 36,412 | [1] | $ 27,183 | [1] |
Technology related internally developed intangibles | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization of acquired intangible assets | 2,807 | 452 | 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 | (15) | 0 | ||
Customer-Related Intangible Assets | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible assets write-down | $ 1,311 | 871 | |||
Intangible Software Asset | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible assets write-down | $ 10,324 | ||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 565,313 | $ 494,423 |
Accumulated amortization & Impairment | 388,226 | 362,833 |
Net | 177,087 | 131,590 |
Customer-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 368,558 | 369,173 |
Accumulated amortization & Impairment | 306,582 | 293,029 |
Net | 61,976 | 76,144 |
Marketing-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 54,714 | 52,443 |
Accumulated amortization & Impairment | 46,591 | 39,212 |
Net | 8,123 | 13,231 |
Technology-related intangible assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 76,790 | 54,189 |
Accumulated amortization & Impairment | 33,976 | 28,278 |
Net | 42,814 | 25,911 |
Other Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,204 | 3,081 |
Accumulated amortization & Impairment | 1,077 | 2,314 |
Net | 127 | 767 |
Intangible Assets Under Development [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 64,047 | 15,537 |
Net | $ 64,047 | $ 15,537 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Amortization Schedule of Intangible Assets for Future Periods (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,019 | $ 36,395 |
2,020 | 34,949 |
2,021 | 20,814 |
2,022 | 10,957 |
2023 and beyond | 9,925 |
Intangible assets excluding under development assets | $ 113,040 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Assets Noncurrent Disclosure [Abstract] | |||
Customer acquisition cost | $ 37,017 | ||
Contract asset (Note 27) | $ 22,563 | ||
Advance income and non-income taxes | 62,942 | 63,474 | |
Deferred transition costs | 77,255 | ||
Deposits | 25,984 | 32,174 | |
Derivative instruments | 9,571 | 24,906 | |
Prepaid expenses | 5,052 | 2,849 | |
Accounts Receivable due after one year | 4,099 | 1,624 | |
Others | 24,948 | 22,870 | |
Other assets, net | $ 155,159 | [1],[2] | $ 262,169 |
[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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. | ||
[2] | As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Operating Lease Arrangements (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 64,099 |
2,020 | 58,434 |
2,021 | 53,170 |
2,022 | 47,976 |
2,023 | 38,862 |
2024 and beyond | 147,765 |
Total minimum lease payments | $ 410,306 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rent expenses | $ 66,110 | $ 59,484 | $ 50,827 |
Rental expense including effect of reclassification of foreign exchange (gains) losses | $ (195) | $ (1,533) | $ 598 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Accrued Liabilities And Other Liabilities [Abstract] | |||
Accrued expenses | $ 179,843 | $ 204,997 | |
Accrued employee cost | 210,251 | 204,506 | |
Earn-out consideration | 16,875 | 14,928 | |
Statutory liabilities | 42,728 | 36,283 | |
Retirement benefits | 22,921 | 21,074 | |
Derivative instruments | 15,373 | 10,346 | |
Advance from customers | 25,476 | ||
Contract liabilities | 64,744 | ||
Deferred transition revenue | 52,233 | ||
Other liabilities | 16,807 | 13,093 | |
Capital lease obligations | 1,808 | 1,546 | |
Accrued expenses and other current liabilities, net | $ 571,350 | [1] | $ 584,482 |
[1] | As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018USD ($) | Mar. 31, 2017USD ($)Day | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 09, 2018USD ($) | Aug. 08, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||
Maturity date of loan agreement | Aug. 8, 2023 | |||||
Margin over LIBOR | 1.375% | 1.375% | 1.50% | |||
Debt discount and underwriting fee | $ 4,293,000 | $ 2,630,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 500,000,000 | $ 350,000,000 | ||||
Term Loan Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date of loan agreement | Aug. 8, 2023 | |||||
Debt amortization expense | $ 2,158,000 | 1,848,000 | ||||
Debt amount outstanding | 660,841,000 | 698,152,000 | ||||
Principal amount of term loan | $ 8,500,000 | |||||
Credit facility, frequency of payments | Quarterly | |||||
2015 Facility | ||||||
Debt Instrument [Line Items] | ||||||
Margin over LIBOR | 1.50% | |||||
Credit facility, base rate | 0.50% | |||||
2015 Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 350,000,000 | |||||
2015 Facility | Term Loan Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | 800,000,000 | |||||
Outstanding term loan | 550,814,000 | |||||
Extinguished outstanding term loan | 129,186,000 | |||||
2018 Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt amortization expense | $ 2,029,000 | |||||
Margin over LIBOR | 1.375% | |||||
Credit facility, base rate | 0.375% | |||||
2018 Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 500,000,000 | |||||
Maturity date of loan agreement | Aug. 8, 2023 | |||||
Debt amortization expense | $ 82,000 | |||||
2018 Facility | Term Loan Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding term loan | 680,000,000 | |||||
Additional funding | 129,186,000 | |||||
Change to outstanding principal of term loan | $ 0 | |||||
3.70% Senior Notes | Genpact Luxembourg S.à r.l. | ||||||
Debt Instrument [Line Items] | ||||||
Debt amortization expense | $ 1,713,000 | 2,239,000 | ||||
Debt amount outstanding | $ 348,287,000 | $ 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 |
Long-Term Debt - Maturity Profi
Long-Term Debt - Maturity Profile of Term Loan, Outstanding Net of Debt Amortization Expense (Detail) - Term Loan Credit Facility - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2,019 | $ 33,483 | |
2,020 | 33,509 | |
2,021 | 33,537 | |
2,022 | 33,564 | |
2,023 | 526,748 | |
Total | $ 660,841 | $ 698,152 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 09, 2018 | Aug. 08, 2018 | |
Line Of Credit Facility [Line Items] | |||||
Fund-based and non-fund-based credit facilities limits available | $ 14,281,000 | $ 15,064,000 | |||
Utilization of credit facility for non fund-based usage | 7,389,000 | 7,900,000 | |||
Credit facility, amount utilized | 297,098,000 | 170,978,000 | |||
Short-term borrowings | $ 295,000,000 | $ 170,000,000 | |||
Revolving credit facility, expiration month and year | Aug. 8, 2023 | ||||
Margin over LIBOR | 1.375% | 1.375% | 1.50% | ||
Percentage of commitment fee | 0.20% | 0.25% | |||
Revolving Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 500,000,000 | $ 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 | 1.375% | 1.50% |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |||
Accrued employee cost | $ 6,341 | $ 14,020 | |
Earn-out consideration | 198 | 9,804 | |
Retirement benefits | 50,370 | 40,520 | |
Derivative instruments | 19,872 | 7,842 | |
Advance from customers | 790 | ||
Contract liabilities | 53,796 | ||
Deferred transition revenue | 70,900 | ||
Others | 32,935 | 22,069 | |
Capital lease obligations | 1,714 | 2,664 | |
Other Liabilities | $ 165,226 | [1] | $ 168,609 |
[1] | As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Defined Benefit Plans and Amount Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Projected benefit obligation at the beginning of the year | $ 58,094 | $ 45,283 | |
Service cost | 7,833 | 7,735 | $ 5,661 |
Actuarial loss (gain) | 470 | 4,493 | |
Interest cost | 3,822 | 3,252 | 2,585 |
Liabilities assumed on acquisition | 503 | ||
Benefits paid | (6,277) | (5,367) | |
Special termination benefit | 57 | ||
Plan amendments | 995 | ||
Effect of exchange rate changes | (3,992) | 2,641 | |
Projected benefit obligation at the end of the year | 61,448 | 58,094 | 45,283 |
Fair value of plan assets at the beginning of the year | 45,560 | 30,871 | |
Employer contributions | 1,573 | 15,176 | |
Actual gain on plan assets | 1,929 | 2,746 | |
Actuarial gain/(loss) | (9) | 11 | |
Benefits paid | (6,228) | (5,301) | |
Effect of exchange rate changes | (3,142) | 2,057 | |
Fair value of plan assets at the end of the year | $ 39,683 | $ 45,560 | $ 30,871 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Included in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Compensation And Retirement Disclosure [Abstract] | ||
Net actuarial loss | $ (11,037) | $ (12,228) |
Net Prior Service Credit / (Cost) | (967) | |
Deferred tax assets | 3,451 | 2,221 |
Other comprehensive income, net | $ (8,553) | $ (10,007) |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Net actuarial loss | $ (951) | ||
Amortization of net actuarial loss | 1,202 | ||
Deferred income taxes | 1,407 | ||
Net prior service credit/(cost) | (944) | ||
Effect of exchange rate changes | 740 | ||
Other comprehensive income (loss), net | $ 1,454 | $ (3,787) | $ (4,042) |
Employee Benefit Plans - Net De
Employee Benefit Plans - Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Service costs | $ 7,833 | $ 7,735 | $ 5,661 |
Interest costs | 3,822 | 3,252 | 2,585 |
Amortization of actuarial loss | 806 | 1,177 | (113) |
Expected return on plan assets | (2,435) | (2,412) | (2,043) |
One time cost | 209 | ||
Special termination benefits | 426 | ||
Net defined benefit plan costs | $ 10,026 | $ 10,387 | $ 6,090 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Amount in other comprehensive loss expected to be recognized as component of net periodic benefit cost over next fiscal year | $ 1,116 | ||
Deferred compensation plan liability | 1,582 | $ 0 | |
Cash surrender value of policies | 1,613 | 0 | |
Change in fair value of plan assets | (56) | 0 | |
Change in fair value of deferred compensation liabilities | $ (87) | $ 0 | |
U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Vesting percentage of participants | 100.00% | ||
Employer discretionary vesting period | 2 years | ||
Earnings receivable minimum term | 2 years | ||
Earnings receivable lump sum or annual installment maximum terms | 15 years | ||
One-Year Anniversary of Approval of Contribution | U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Employer discretionary vesting percentage | 50.00% | ||
Two-Year Anniversary of Approval of Contribution | U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Employer discretionary vesting percentage | 50.00% | ||
Minimum | U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Individual qualifying base compensation, percentage | 1.00% | ||
Individual qualifying bonus compensation, percentage | 1.00% | ||
Maximum | U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Individual qualifying base compensation, percentage | 80.00% | ||
Individual qualifying bonus compensation, percentage | 100.00% | ||
Benefit Obligations Of Philippines Plan | Minimum | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Expectation of the average long term rate of return expected, years | 15 years | ||
Benefit Obligations Of Philippines Plan | Maximum | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Expectation of the average long term rate of return expected, years | 20 years |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions used to Determine Benefit Obligations, Gratuity Plan (Detail) - Benefit Obligations Of Gratuity Plan | Dec. 31, 2018 | Dec. 31, 2017 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 8.30% | 7.40% |
Rate of increase in compensation per annum | 5.20% | 5.20% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 8.40% | 7.60% |
Rate of increase in compensation per annum | 11.00% | 11.00% |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted Average Assumptions used to Determine Plan Costs, Gratuity Plan (Detail) - Gratuity Plan Costs | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long term rate of return on plan assets per annum | 7.50% | 7.50% | 7.50% |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 7.40% | 7.10% | 8.30% |
Rate of increase in compensation per annum | 5.20% | 5.20% | 5.20% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 7.60% | 7.50% | 8.45% |
Rate of increase in compensation per annum | 11.00% | 11.00% | 11.00% |
Employee Benefit Plans - Weig_3
Employee Benefit Plans - Weighted Average Assumptions used to Determine Benefit Obligations, Mexican Plan (Detail) - Benefit Obligations Of Mexican Plan | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 9.25% | 7.60% |
Rate of increase in compensation per annum | 5.50% | 5.50% |
Employee Benefit Plans - Weig_4
Employee Benefit Plans - Weighted Average Assumptions used to Determine Plan Costs, Mexican Plan (Detail) - Mexican Plan Costs | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 7.60% | 6.80% | 6.50% |
Rate of increase in compensation per annum | 5.50% | 5.50% | 5.50% |
Expected long term rate of return on plan assets per annum | 0.00% | 0.00% | 0.00% |
Employee Benefit Plans - Weig_5
Employee Benefit Plans - Weighted Average Assumptions used to Determine Benefit Obligations, Japan Plan (Detail) - Benefit Obligations Of Japan Plan | Dec. 31, 2018 | Dec. 31, 2017 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.076% | 0.113% |
Rate of increase in compensation per annum | 0.00% | 0.00% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.269% | 0.789% |
Rate of increase in compensation per annum | 3.55% |
Employee Benefit Plans - Weig_6
Employee Benefit Plans - Weighted Average Assumptions used to Determine Plan Costs, Japan Plan (Detail) - Japan Plan Costs | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.113% | 0.08% | 0.24% |
Rate of increase in compensation per annum | 0.00% | 0.00% | 0.00% |
Expected long term rate of return on plan assets per annum | 0.00% | 0.00% | 0.00% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.789% | 1.30% | 1.30% |
Rate of increase in compensation per annum | 3.55% | 3.55% | 3.55% |
Expected long term rate of return on plan assets per annum | 1.84% | 3.09% | 3.77% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | $ 39,683 | $ 45,560 | $ 30,871 | |
Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 6,114 | 6,328 | ||
Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 33,569 | 39,232 | ||
Equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 7 | |||
Equity | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 7 | |||
Cash | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 381 | 472 | ||
Cash | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 381 | 472 | ||
Fixed Income Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 36,499 | 42,328 | |
Fixed Income Securities | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 3,345 | 3,419 | |
Fixed Income Securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 33,154 | 38,909 | |
Other Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | 2,796 | 2,760 | |
Other Securities | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | 2,381 | 2,437 | |
Other Securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | $ 415 | $ 323 | |
[1] | Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds | |||
[2] | Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. |
Employee Benefit Plans - Fair_2
Employee Benefit Plans - Fair Value of Plan Assets (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of investment in funds | 100.00% | 100.00% |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Benefit Plan Payments Reflecting Expected Future Service (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Compensation And Retirement Disclosure [Abstract] | |
2,019 | $ 9,983 |
2,020 | 10,454 |
2,021 | 10,686 |
2,022 | 10,877 |
2,023 | 11,193 |
2024 - 2028 | 53,112 |
Defined benefit plan expected future benefit payments | $ 106,305 |
Employee Benefit Plans - Amou_2
Employee Benefit Plans - Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | $ 69,179 | $ 61,221 | $ 56,242 |
India | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 23,877 | 22,242 | 19,074 |
U.K. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 9,619 | 7,823 | 6,593 |
China | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 17,625 | 15,950 | 15,512 |
Other Regions | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 4,604 | 4,059 | 4,684 |
U.S. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | $ 13,454 | $ 11,147 | $ 10,379 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Dec. 19, 2018 | Sep. 19, 2018 | Jun. 20, 2018 | Mar. 21, 2018 | Dec. 20, 2017 | Sep. 21, 2017 | Jun. 28, 2017 | Mar. 28, 2017 | Apr. 11, 2012 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | May 09, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Stock based compensation cost | $ 48,196,000 | $ 35,112,000 | $ 24,686,000 | |||||||||||||||||||||
Options granted, contractual period, years | 10 years | |||||||||||||||||||||||
Cash dividends paid per share | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | ||||||||
Cash received from the exercise of stock option | $ 10,772,000 | 14,896,000 | 13,564,000 | |||||||||||||||||||||
Tax benefits from the exercise of stock option | 2,473,000 | 2,016,000 | 1,548,000 | |||||||||||||||||||||
Tax benefits recognized in relation to stock-based compensation | 11,783,000 | 9,600,000 | 6,446,000 | |||||||||||||||||||||
Unrecognized stock-based compensation cost for options | $ 21,925,000 | 21,925,000 | ||||||||||||||||||||||
Employee Stock Option | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Excess tax benefit on stock-based compensation | $ 2,131,000 | $ 1,723,000 | $ 1,004,000 | |||||||||||||||||||||
Weighted average remaining requisite vesting period | 4 years | |||||||||||||||||||||||
Restricted Share Units (RSUs) | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Weighted average remaining requisite vesting period | 2 years 3 months 18 days | |||||||||||||||||||||||
Shares to be issued on vested awards other than options | 86,517 | 53,546 | 92,692 | |||||||||||||||||||||
Unrecognized stock-based compensation cost | 24,946,000 | $ 24,946,000 | ||||||||||||||||||||||
Restricted Share Units (RSUs) | Vested in December 31, 2015 | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Vested RSU issued during the period | 53,023 | |||||||||||||||||||||||
Restricted Share Units (RSUs) | Vested in December 31, 2014 | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Vested RSU issued during the period | 91,963 | |||||||||||||||||||||||
Performance Units | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Weighted average remaining requisite vesting period | 1 year 9 months 18 days | |||||||||||||||||||||||
Unrecognized stock-based compensation cost | $ 55,985,000 | $ 55,985,000 | ||||||||||||||||||||||
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) | 245,467 | 190,435 | 146,685 | |||||||||||||||||||||
Compensation expense for ESPP | $ 802,000 | $ 573,000 | $ 428,000 | |||||||||||||||||||||
Minimum | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Award, vesting period, years | 4 years | |||||||||||||||||||||||
Minimum | Restricted Share Units (RSUs) | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Award, vesting period, years | 3 months | |||||||||||||||||||||||
Minimum | Performance Units | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Award, vesting period, years | 6 months | |||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Award, vesting period, years | 5 years | |||||||||||||||||||||||
Maximum | Restricted Share Units (RSUs) | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Award, vesting period, years | 4 years | |||||||||||||||||||||||
Maximum | Performance Units | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Award, vesting period, years | 3 years | |||||||||||||||||||||||
2007 Omnibus Plan | ||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||||||||||
Amended Omnibus Plan, increase in number of common shares authorized for issuance | 5,593,200 | 8,858,823 | ||||||||||||||||||||||
Number of common shares authorized for issuance | 15,000,000 | 23,858,823 | 23,858,823 | |||||||||||||||||||||
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 |
Stock-Based Compensation - Sign
Stock-Based Compensation - Significant Assumptions used in Determination of Fair Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.97% | ||
Expected life (in months) | 84 months | 84 months | 84 months |
Risk-free rate of interest for expected life | 2.25% | ||
Risk-free rate of interest for expected life, minimum | 2.67% | 1.42% | |
Risk-free rate of interest for expected life, maximum | 2.93% | 1.56% | |
Volatility | 24.28% | ||
Volatility, minimum | 22.55% | 25.60% | |
Volatility, maximum | 22.73% | 27.22% | |
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 | 1.01% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Shares arising out of options | |||||
Outstanding, shares arising out of options, beginning balance | 5,134,645 | 5,707,690 | 5,986,845 | ||
Granted, shares arising out of options | 2,638,106 | 250,000 | 860,000 | ||
Forfeited, shares arising out of options | (70,000) | (80,000) | (145,000) | ||
Exercised, shares arising out of options | (441,076) | (743,045) | (994,155) | ||
Outstanding, shares arising out of options, ending balance | 7,261,675 | 5,134,645 | 5,707,690 | 5,986,845 | |
Vested and expected to vest thereafter, shares arising out of options | [1] | 7,107,605 | 4,988,875 | 5,457,701 | |
Vested and exercisable, shares arising out of options | 3,313,570 | 2,203,146 | 2,746,191 | ||
Weighted average grant-date fair value of options granted during the period | $ 8.32 | $ 6.62 | $ 8.50 | ||
Weighted average exercise price | |||||
Outstanding weighted average exercise price, beginning balance | 19.52 | 18.65 | 16.99 | ||
Granted, weighted average exercise price | 30.47 | 24.74 | 26.80 | ||
Forfeited, weighted average exercise price | 27.65 | 20.63 | 17.77 | ||
Exercised, weighted average exercise price | 16.46 | 14.50 | 14.98 | ||
Outstanding weighted average exercise price, ending balance | 23.61 | 19.52 | 18.65 | $ 16.99 | |
Vested and expected to vest thereafter, weighted average exercise price | [1] | 23.50 | 19.36 | 18.42 | |
Vested and exercisable, weighted average exercise price | $ 17.69 | $ 16.17 | $ 15.62 | ||
Weighted average remaining contractual life (years) | |||||
Outstanding weighted average remaining contractual life (years) | 6 years 4 months 24 days | 5 years 7 months 6 days | 5 years 9 months 18 days | 5 years 9 months 18 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [1] | 6 years 4 months 24 days | 5 years 7 months 6 days | 5 years 9 months 18 days | |
Vested and exercisable, weighted average remaining contractual life (years) | 3 years 8 months 12 days | 4 years 1 month 6 days | 4 years | ||
Aggregate intrinsic value | |||||
Exercised, aggregate intrinsic value | $ 6,731 | $ 8,512 | $ 10,982 | ||
Outstanding aggregate intrinsic value | 34,143 | 62,743 | 34,641 | ||
Vested and expected to vest thereafter, aggregate intrinsic value | [1] | 33,997 | 61,779 | 34,150 | |
Vested and exercisable, aggregate intrinsic value | $ 30,806 | $ 34,303 | $ 23,960 | ||
[1] | Options expected to vest reflect an estimated forfeiture rate |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Share Units Activity (Detail) - Restricted Share Units (RSUs) - $ / shares | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Number of Restricted Share Units | |||||||
Outstanding number of shares (Units), beginning balance | 1,605,251 | 117,905 | 157,390 | ||||
Granted, number of shares (Units) | 484,427 | 1,533,836 | 95,553 | ||||
Vested, number of shares (Units) | (358,697) | [1] | (45,248) | [2] | (133,903) | [3] | |
Forfeited, number of shares (Units) | (201,982) | (1,242) | (1,135) | ||||
Outstanding number of shares (Units), ending balance | 1,528,999 | 1,605,251 | 117,905 | ||||
Expected to vest, number of shares (Units) | [4] | 1,360,048 | 1,371,567 | 107,366 | |||
Weighted Average Grant Date Fair Value | |||||||
Outstanding weighted average grant date fair value, beginning balance | $ 26.17 | $ 20.65 | $ 17.67 | ||||
Granted, weighted average grant date fair value | 30.13 | 26.36 | 25.49 | ||||
Vested, weighted average grant date fair value | 25.53 | [1] | 18.31 | [2] | 20.66 | [3] | |
Forfeited, weighted average grant date fair value | 27.09 | 25.53 | 14.18 | ||||
Outstanding weighted average grant date fair value, ending balance | $ 27.45 | $ 26.17 | $ 20.65 | ||||
[1] | 261,260 RSUs that vested during the period were net settled upon vesting by issuing 175,505 shares (net of minimum statutory tax withholding). 52,875 and 44,562 RSUs vested in the year ended December 31, 2017 and December 31, 2018 respectively, shares in respect of which will be issuable in 2019 after withholding shares to the extent of minimum statutory withholding taxes. | ||||||
[2] | Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). | ||||||
[3] | Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016. 17,802 common shares underlying 34,035 of such RSUs were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. 52,482 RSUs vested in the year ended December 31, 2016, in respect of which 52,055 shares were issued in 2018 after withholding shares to the extent of minimum statutory withholding taxes. | ||||||
[4] | RSUs expected to vest reflect an estimated forfeiture rate. |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Share Units Activity (Parenthetical) (Detail) - Restricted Share Units (RSUs) - shares | 12 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 175,505 | 32,395 | 29,719 | ||||||
Shares to be issued on vested awards other than options | 86,517 | 53,546 | 92,692 | ||||||
Vested RSU issued during the period | 358,697 | [1] | 45,248 | [2] | 133,903 | [3] | |||
Vested in December 31, 2017 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 17,802 | ||||||||
Vested RSU issued during the period | 34,035 | ||||||||
Vested in December 31, 2017 | Scenario, Forecast | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vested RSU issued during the period | 52,875 | ||||||||
Vested in December 31, 2016 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 52,055 | ||||||||
Vested RSU issued during the period | 52,482 | ||||||||
Vested and Settled During 2018 | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 261,260 | ||||||||
Vested in December 31, 2018 | Scenario, Forecast | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vested RSU issued during the period | 44,562 | ||||||||
[1] | 261,260 RSUs that vested during the period were net settled upon vesting by issuing 175,505 shares (net of minimum statutory tax withholding). 52,875 and 44,562 RSUs vested in the year ended December 31, 2017 and December 31, 2018 respectively, shares in respect of which will be issuable in 2019 after withholding shares to the extent of minimum statutory withholding taxes. | ||||||||
[2] | Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). | ||||||||
[3] | Vested RSUs were net settled by issuing 29,719 shares (net of minimum statutory tax withholding). 86,517 RSUs vested in the year ended December 31, 2016. 17,802 common shares underlying 34,035 of such RSUs were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. 52,482 RSUs vested in the year ended December 31, 2016, in respect of which 52,055 shares were issued in 2018 after withholding shares to the extent of minimum statutory withholding taxes. |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Performance Units Activity (Detail) - Performance Units - $ / shares | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Number of Performance Units | |||||||
Outstanding number of shares (Units), beginning balance | 2,900,940 | 3,772,128 | 2,499,322 | ||||
Granted, number of shares (Units) | 1,682,740 | 1,811,292 | 1,518,374 | ||||
Vested, number of shares (Units) | (1,087,751) | [1] | (1,136,047) | [2] | |||
Forfeited, number of shares (Units) | (258,237) | (1,583,913) | [3] | (252,842) | |||
Adjustment upon final determination of level of performance goal achievement | 474,800 | [4] | 37,480 | [5] | 7,274 | [6] | |
Outstanding number of shares (Units), ending balance | 3,712,402 | 2,900,940 | 3,772,128 | ||||
Expected to vest, number of shares (Units) | [7] | 3,261,069 | 2,657,685 | 2,226,489 | |||
Weighted Average Grant Date Fair Value | |||||||
Outstanding weighted average grant date fair value, beginning balance | $ 24.40 | $ 23.04 | $ 19.95 | ||||
Granted, weighted average grant date fair value | 30.62 | 25.22 | 27.93 | ||||
Vested, weighted average grant date fair value | 22.73 | [1] | 16.78 | [2] | |||
Forfeited, weighted average grant date fair value | 26.03 | 27.57 | [3] | 21.88 | |||
Adjustment upon final determination of level of performance goal achievement | 30.68 | [4] | 25.22 | [5] | 22.72 | [6] | |
Outstanding weighted average grant date fair value, ending balance | $ 28.40 | $ 24.40 | $ 23.04 | ||||
Maximum shares eligible to receive | |||||||
Outstanding maximum shares eligible to receive, beginning balance | 2,900,940 | 5,524,114 | 2,499,322 | ||||
Granted, maximum shares eligible to receive | 3,365,480 | 3,622,584 | 3,343,335 | ||||
Vested, maximum shares eligible to receive | (1,087,751) | [1] | (1,136,047) | [2] | |||
Forfeited, maximum shares eligible to receive | (305,737) | (1,627,313) | [3] | (325,817) | |||
Adjustment upon final determination of level of performance goal achievement | (1,160,530) | [8] | (3,482,398) | [9] | 7,274 | [6] | |
Outstanding maximum shares eligible to receive, ending balance | 3,712,402 | 2,900,940 | 5,524,114 | ||||
[1] | Vested PUs were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). | ||||||
[2] | Vested PUs were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). | ||||||
[3] | Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards. | ||||||
[4] | Represents a 28.77% increase in the number of target shares expected to vest as a result of achievement of higher-than-target performance for PUs granted in 2018 partially offset by 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. | ||||||
[5] | Represents a 2.7% increase in the number of target shares as a result of achievement of higher-than-target performance for certain PUs granted in 2017, partially offset by a 12.5% reduction as a result of achievement of lower-than-target performance for certain PUs granted in 2017. | ||||||
[6] | Represents an adjustment made in March 2016 to the number of shares underlying the PUs granted in 2015 upon certification of the level of achievement of the performance targets for such awards. | ||||||
[7] | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||
[8] | Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2018 based on the level of achievement of the performance goals. Also includes 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. | ||||||
[9] | Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2017 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Performance Units Activity (Parenthetical) (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net settlement on vesting of performance units (in shares) | 691,958 | 731,701 | ||
Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeited, number of shares (Units) | 258,237 | 1,583,913 | [1] | 252,842 |
Increase due to achievement of higher-than-target performance for grants in 2017/2018, percentage | 28.77% | 2.70% | ||
Decrease due to achievement of lower-than-target performance for grants in 2017, percentage | 12.50% | |||
Performance Units | Granted in 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeited, number of shares (Units) | 1,443,624 | |||
[1] | Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards. |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Dec. 19, 2018 | Sep. 19, 2018 | Jun. 20, 2018 | Mar. 21, 2018 | Feb. 12, 2018 | Jan. 17, 2018 | Dec. 29, 2017 | Dec. 20, 2017 | Sep. 21, 2017 | Jun. 28, 2017 | Mar. 30, 2017 | Mar. 28, 2017 | Feb. 28, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 29, 2017 | Feb. 10, 2017 |
Class Of Stock [Line Items] | ||||||||||||||||||||||||||
Common shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||||||||||||||||||||||
Common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||
Preferred shares, authorized | 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | ||||||||||||||||||||||
Preferred shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||
Common shares, issued | 189,346,101 | 192,825,207 | 189,346,101 | 192,825,207 | ||||||||||||||||||||||
Common shares, outstanding | 189,346,101 | 192,825,207 | 189,346,101 | 192,825,207 | ||||||||||||||||||||||
Preferred shares, issued | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Preferred shares, outstanding | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Common stock voting right | Holders of common shares are entitled to one vote per share | |||||||||||||||||||||||||
Stock repurchase authorized amount | $ 750,000,000 | $ 1,250,000,000 | ||||||||||||||||||||||||
Additional stock repurchase authorized amount | $ 500,000,000 | |||||||||||||||||||||||||
Shares repurchased and retired (in shares) | 4,921,192 | 808,293 | ||||||||||||||||||||||||
Common stock shares repurchased price per share | $ 31.30 | $ 24.48 | ||||||||||||||||||||||||
Aggregate amount of common stock shares repurchased | $ 154,058,000 | $ 219,784,000 | 345,200,000 | |||||||||||||||||||||||
Expenses related to stock purchases | 98,000 | $ 16,000 | $ 279,000 | |||||||||||||||||||||||
Quarterly dividend declared | $ 0.075 | $ 0.06 | $ 0.06 | |||||||||||||||||||||||
Annual dividend | $ 0.24 | |||||||||||||||||||||||||
Initial dividend paid | $ 14,201,000 | $ 14,253,000 | $ 14,240,000 | $ 14,408,000 | $ 11,590,000 | $ 11,581,000 | $ 11,558,000 | $ 11,957,000 | 57,102,000 | $ 46,686,000 | ||||||||||||||||
Dividends payable, date declared | 2018-02 | 2017-02 | ||||||||||||||||||||||||
Dividends paid per share | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.06 | $ 0.06 | $ 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 | ||||||||||||||||||||||||
Third Quarter Dividend | ||||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||||
Dividend payment date | Sep. 19, 2018 | Sep. 21, 2017 | ||||||||||||||||||||||||
Dividends payable, date of record | Sep. 10, 2018 | Sep. 8, 2017 | ||||||||||||||||||||||||
Fourth Quarter Dividend | ||||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||||
Dividend payment date | Dec. 19, 2018 | Dec. 20, 2017 | ||||||||||||||||||||||||
Dividends payable, date of record | Dec. 10, 2018 | Dec. 8, 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 | $ 154,058,000 | $ 19,784,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 2,410,230 | 1,007,480 | 781,215 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Earnings Per Share (Abstract) | |||||||||||||
Net income available to Genpact Limited common shareholders | $ 282,019 | $ 263,111 | [1] | $ 269,684 | [1] | ||||||||
Weighted average number of common shares used in computing basic earnings per common share | 189,724,744 | 190,024,924 | 190,132,664 | 192,816,626 | 192,795,534 | 192,124,366 | 191,469,593 | 199,069,528 | 190,674,740 | 193,864,755 | [1] | 206,861,536 | [1] |
Dilutive effect of stock-based awards | 3,305,298 | 3,184,797 | 3,264,487 | ||||||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 193,149,836 | 193,115,769 | 193,365,974 | 196,288,569 | 196,862,168 | 194,947,699 | 193,732,406 | 202,655,937 | 193,980,038 | 197,049,552 | [1] | 210,126,023 | [1] |
Basic | $ 0.42 | $ 0.39 | $ 0.34 | $ 0.34 | $ 0.35 | $ 0.38 | $ 0.36 | $ 0.27 | $ 1.48 | $ 1.36 | [1] | $ 1.30 | [1] |
Diluted | $ 0.41 | $ 0.38 | $ 0.33 | $ 0.33 | $ 0.34 | $ 0.38 | $ 0.36 | $ 0.26 | $ 1.45 | $ 1.34 | [1] | $ 1.28 | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Cost of Revenue - Schedule of C
Cost of Revenue - Schedule of Cost of Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | $ 1,921,768 | $ 1,681,438 | [1] | $ 1,554,340 | [1] |
Personnel expenses | |||||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | 1,322,651 | 1,153,479 | 1,061,134 | ||
Operational expenses | |||||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | 543,006 | 481,012 | 446,922 | ||
Depreciation and amortization | |||||
Component Of Operating Other Cost And Expense [Line Items] | |||||
Cost of revenue | $ 56,111 | $ 46,947 | $ 46,284 | ||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Selling, General and Administ_3
Selling, General and Administrative Expenses - Schedule of Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||||
Selling, general and administrative expenses | $ 693,865 | [1] | $ 689,461 | [2] | $ 652,967 | [2] |
Personnel expenses | ||||||
Component Of Operating Other Cost And Expense [Line Items] | ||||||
Selling, general and administrative expenses | 518,897 | 501,059 | 469,894 | |||
Operational expenses | ||||||
Component Of Operating Other Cost And Expense [Line Items] | ||||||
Selling, general and administrative expenses | 166,437 | 178,573 | 174,060 | |||
Depreciation and amortization | ||||||
Component Of Operating Other Cost And Expense [Line Items] | ||||||
Selling, general and administrative expenses | $ 8,531 | $ 9,829 | $ 9,013 | |||
[1] | During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452 resulting in a net adjustment of $2,664 with a corresponding impact on income tax benefit of $681. | |||||
[2] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Other Operating (Income) Expe_3
Other Operating (Income) Expense, Net - Schedule of Other Operating (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Other Income And Expenses [Abstract] | |||||
Other operating (income) expense | $ (455) | $ (7,277) | $ (1,266) | ||
Provision for impairment of intangible assets and property, plant and equipment | 4,265 | 9,311 | 11,195 | ||
Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) | (5,655) | (3,695) | (14,869) | ||
Other operating (income) expense, net | $ (1,845) | $ (1,661) | [1] | $ (4,940) | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Interest Income (Expense), Ne_2
Interest Income (Expense), Net - Schedule of Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Other Income And Expenses [Abstract] | |||||
Interest income | $ 11,388 | $ 8,182 | $ 7,247 | ||
Interest expense | (48,507) | (39,917) | (23,431) | ||
Interest income (expense), net | $ (37,119) | $ (31,735) | [1] | $ (16,184) | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income Tax Disclosure [Line Items] | |||||
Income tax expense | $ 80,763 | $ 59,742 | [1] | $ 62,098 | [1] |
Other comprehensive income: | |||||
Unrealized gains (losses) on cash flow hedges | (6,647) | 457 | 23,809 | ||
Retirement benefits | (1,407) | $ 670 | (1,885) | ||
ASU 2016-09 | Deferred tax benefit | |||||
Retained earnings: | |||||
Retained earnings | $ (24,912) | ||||
ASU 2018-02 | |||||
Retained earnings: | |||||
Reclassification from AOCI on early adoption of ASU 2018-02 | 2,265 | ||||
Reclassification to retained earnings on early adoption of ASU 2018-02 | (2,265) | ||||
ASU 2014-09 | Deferred tax expense | |||||
Retained earnings: | |||||
Retained earnings | $ 5,303 | ||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Tax Expense from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income Tax Disclosure [Abstract] | |||||
Domestic (U.S.) | $ 49,986 | $ 8,440 | $ 44,110 | ||
Foreign (Non-U.S.) | 312,035 | 312,143 | 285,535 | ||
Income before income tax expense | $ 362,021 | $ 320,583 | [1] | $ 329,645 | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Income Taxes - Income Tax Exp_2
Income Taxes - Income Tax Expense (Benefit) Attributable to Income from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Current tax expense : | |||||
Domestic (U.S. federal) | $ 6,466 | $ 3,380 | $ 78 | ||
Domestic (U.S. state) | 3,508 | 1,268 | 1,069 | ||
Foreign (Non-U.S.) | 64,735 | 65,485 | 30,497 | ||
Current Income Tax Expense (Benefit), Total | 74,709 | 70,133 | 31,644 | ||
Deferred tax expense (benefit) : | |||||
Domestic (U.S. federal) | 6,577 | 3,549 | 11,379 | ||
Domestic (U.S. state) | (1,176) | (2,809) | (459) | ||
Foreign (Non-U.S.) | 653 | (11,131) | 19,534 | ||
Deferred Income Tax Expense (Benefit), Total | 6,054 | (10,391) | 30,454 | ||
Total income tax expense (benefit) | $ 80,763 | $ 59,742 | [1] | $ 62,098 | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)Unit$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Line Items] | ||||
U.S. federal corporate income tax rate | 21.00% | 35.00% | 35.00% | |
Number of Special Economic Zone units held by Indian subsidiary eligible for tax holiday | Unit | 10 | |||
Net operating loss carryforwards | $ 276,040 | |||
Deferred tax assets related to net operating loss carryforwards, excluding state | 59,153 | |||
Net operating loss of subsidiary, carried forward | 164,014 | |||
Additional deferred tax assets for U.S. state and local tax loss carry-forwards | $ 4,859 | |||
Operating loss carry-forwards, expiration date, range start | 2,019 | |||
Operating loss carry-forwards, expiration date, range end | 2,037 | |||
Tax credit carry forward | $ 22,409 | |||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries | 363,560 | |||
Cash and cash equivalents | 368,396 | $ 504,468 | $ 422,623 | $ 450,907 |
Cash held by foreign subsidiary | 131,617 | |||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries for which no tax will accrue on repatriation of retained earnings indefinitely reinvested | 231,943 | |||
Net tax expense in net deferred tax asset | 3,182 | |||
Tax benefit relating to derivatives | 2,265 | |||
Unrecognized tax benefits that would impact effective tax rate | 25,485 | 24,877 | 22,469 | |
Unrecognized tax benefits, interest on income taxes accrued | 5,081 | 4,614 | 3,856 | |
Unrecognized tax benefits, including exchange rate differences for interest recognized | 467 | 758 | 367 | |
Accrued penalties | 995 | 1,033 | 977 | |
Retained Earnings | ||||
Income Tax Disclosure [Line Items] | ||||
Repatriation of retained earnings | 25,043 | |||
Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carry forward | 22,409 | |||
Early Adoption of ASU 2016-09 | ||||
Income Tax Disclosure [Line Items] | ||||
Excess tax benefits relating to exercise of stock awards recorded through retained earnings | 24,912 | |||
Income tax expense attributable to continuing operations | 2,131 | $ 1,723 | 1,004 | |
ASU 2018-02 | ||||
Income Tax Disclosure [Line Items] | ||||
Stranded tax effect in AOCI resulting from the Tax Act | $ 2,265 | |||
Foreign Subsidiary | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carryforwards reversal of remaining valuation allowance | $ 3,377 | |||
Begin to Expire Date | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, expiring date | March 31, 2022 | |||
Fully Expired Date | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, expiring date | March 31, 2030 | |||
Tax Holiday For First 5 Years | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 100.00% | |||
Tax Holiday from year 6 to year 10 | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 50.00% | |||
Tax Holiday from year 11 to year 15 | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 50.00% | |||
Basic Earnings Per Share | ||||
Income Tax Disclosure [Line Items] | ||||
Earnings per share effect of tax holiday | $ / shares | $ 0.13 | $ 0.18 | $ 0.19 | |
Diluted Earnings Per Share | ||||
Income Tax Disclosure [Line Items] | ||||
Earnings per share effect of tax holiday | $ / shares | $ 0.13 | $ 0.18 | $ 0.18 |
Income Taxes - Income Tax Exp_3
Income Taxes - Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Income Tax Disclosure [Abstract] | ||||||
Income before income tax expense | $ 362,021 | $ 320,583 | [1] | $ 329,645 | [1] | |
Statutory tax rates | 21.00% | 35.00% | 35.00% | |||
Computed expected income tax expense | $ 76,024 | $ 112,204 | $ 115,376 | |||
Increase (decrease) in income taxes resulting from: | ||||||
Foreign tax rate differential | 23,373 | (25,224) | (18,574) | |||
Tax benefit from tax holiday | (24,968) | (35,814) | (32,893) | |||
Non-deductible expenses | 3,245 | 3,985 | 4,559 | |||
Effect of change in tax rates | (147) | 2,778 | 353 | |||
Change in valuation allowance | 27,826 | 9,041 | (4,830) | |||
Unrecognized tax benefits | 3,008 | 1,611 | (627) | |||
Other | [2] | (27,598) | (8,839) | (1,266) | ||
Total income tax expense (benefit) | $ 80,763 | $ 59,742 | [1] | $ 62,098 | [1] | |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. | |||||
[2] | Following the transfer/closure of certain affiliated entities, deferred tax liabilities recorded against the outside basis difference were reversed amounting to $0, $9,600, $18,510 during the year ended December 31, 2016, 2017 and 2018. It was not more likely than not that the resulting net deferred tax asset would be realized. Therefore, a full valuation allowance was established to offset the reduction in deferred tax liabilities. |
Income Taxes - Income Tax Exp_4
Income Taxes - Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Reversal of deferred tax liabilities due to transfer/closure of certain affiliated entities | $ 18,510 | $ 9,600 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets | |||||
Net operating loss carryforwards | $ 64,013 | $ 55,500 | |||
Accrued liabilities and other expenses | 36,812 | 41,177 | |||
Provision for doubtful debts | 9,650 | 10,509 | |||
Property, plant & equipment and leased assets | 7,904 | 6,179 | |||
Unrealized losses on cash flow hedges, net | 672 | 275 | |||
Share-based compensation | 18,236 | 19,789 | |||
Retirement benefits | 7,559 | 5,817 | |||
Contract liabilities | 3,150 | 22,948 | |||
Tax credit carryforwards | 22,409 | 35,322 | |||
Other | 8,885 | 6,662 | |||
Gross deferred tax assets | 179,290 | 204,178 | |||
Less: Valuation allowance | (51,986) | (24,549) | $ (14,746) | $ (20,091) | |
Total deferred tax assets | 127,304 | 179,629 | |||
Deferred tax assets | 74,566 | [1] | 76,929 | ||
Deferred tax liabilities | |||||
Intangible assets | 17,975 | 23,545 | |||
Property, plant and equipment | 5,493 | 1,131 | |||
Deferred cost | 2,725 | 33,816 | |||
Investments in foreign subsidiaries not indefinitely reinvested | 4,835 | 18,949 | |||
Unrealized gains on cash flow hedges, net | 8,990 | 14,711 | |||
Goodwill | 12,957 | 7,145 | |||
Other | 7,843 | 10,150 | |||
Total deferred tax liabilities | 60,818 | 109,447 | |||
Deferred tax liabilities | 8,080 | 6,747 | |||
Net deferred tax asset | $ 66,486 | $ 70,182 | |||
[1] | The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 which has been offset against deferred tax assets. |
Income Taxes - Change in Total
Income Taxes - Change in Total Valuation Allowance for Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Opening valuation allowance | $ 24,549 | $ 14,746 | $ 20,091 |
Reduction during the year | (2,307) | (3,957) | (7,299) |
Addition during the year | 29,744 | 13,760 | 1,954 |
Closing valuation allowance | $ 51,986 | $ 24,549 | $ 14,746 |
Income Taxes - Remaining Tax Lo
Income Taxes - Remaining Tax Loss Carry Forwards Expiration (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
US - Federal | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $ 8,069 |
US - Federal | 2035 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 340 |
US - Federal | 2036 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 477 |
US - Federal | 2037 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 7,252 |
Europe | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 73,316 |
Europe | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,952 |
Europe | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,121 |
Europe | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 5,904 |
Europe | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 6,639 |
Europe | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 771 |
Europe | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 27,147 |
Europe | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 234 |
Europe | 2027 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 856 |
Europe | 2028 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 34 |
Europe | 2034 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 18,820 |
Europe | 2035 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 8,838 |
Others | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 30,641 |
Others | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,347 |
Others | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 105 |
Others | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,426 |
Others | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 7,748 |
Others | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 8,520 |
Others | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,396 |
Others | 2027 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 5,071 |
Others | 2028 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,716 |
Others | 2029 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 672 |
Others | 2038 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $ 640 |
Income Taxes - Foreign Tax Cred
Income Taxes - Foreign Tax Credit Expiry Period (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | $ 22,409 |
2,023 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 355 |
2,024 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 2,819 |
2,025 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 8,395 |
2,026 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 5,728 |
2,027 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 1,250 |
2,028 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | $ 3,862 |
Income Taxes - Activities Relat
Income Taxes - Activities Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Uncertainties [Abstract] | |||
Beginning balance | $ 26,060 | $ 23,467 | $ 26,357 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 1,851 | 2,582 | 370 |
Decrease related to prior year tax positions | (153) | (1,398) | (1,506) |
Decrease related to divesture of business | (345) | ||
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (1,841) | (1,019) | (2,122) |
Increase related to current year tax positions, including recorded in acquisition accounting | 2,408 | 1,661 | 3,225 |
Decrease related to settlements with tax authorities | (2,000) | ||
Effect of exchange rate changes | (1,603) | 767 | (512) |
Ending balance | $ 26,722 | $ 26,060 | $ 23,467 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues Disaggregated by Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 3,000,790 | $ 2,736,929 | [1] | $ 2,570,756 | [1] |
General Electric Company | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | 268,210 | 269,217 | 357,894 | ||||||||||
Global Clients | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | $ 2,732,580 | $ 2,467,712 | $ 2,212,862 | ||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues for Service Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 3,000,790 | $ 2,736,929 | [1] | $ 2,570,756 | [1] |
Business process outsourcing | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | 2,502,806 | 2,264,335 | 2,083,450 | ||||||||||
Information technology services | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | $ 497,984 | $ 472,594 | $ 487,306 | ||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Segment Reporting - Revenues fr
Segment Reporting - Revenues from Clients Based on Industry Serviced (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 3,000,790 | $ 2,736,929 | [1] | $ 2,570,756 | [1] |
Banking, Financial Services and Insurance | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | 1,099,189 | 1,090,134 | 1,021,609 | ||||||||||
Consumer Goods, Retail, Life Sciences and Healthcare | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | 891,640 | 832,088 | 769,432 | ||||||||||
High tech, Manufacturing and Services | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | $ 1,009,961 | $ 814,707 | $ 779,715 | ||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Segment Reporting - Net Reven_3
Segment Reporting - Net Revenues from Geographic Areas Based on Location of Service Delivery Centers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 3,000,790 | $ 2,736,929 | [1] | $ 2,570,756 | [1] |
India | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | 1,739,455 | 1,712,783 | 1,804,113 | ||||||||||
Asia, other than India | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | 327,462 | 286,338 | 249,839 | ||||||||||
North and Latin America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | 641,716 | 455,059 | 282,434 | ||||||||||
Europe | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Total net revenues | $ 292,157 | $ 282,749 | $ 234,370 | ||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Disclosure [Line Items] | |||
Percentage of consolidated revenue not exceeded by any customer | 10.00% | 10.00% | 10.00% |
General Electric Company | |||
Segment Reporting Disclosure [Line Items] | |||
Percentage of revenues | 9.00% | 10.00% | 14.00% |
Segment Reporting - Property, P
Segment Reporting - Property, Plant and Equipment, Net by Geographic Areas (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 212,715 | $ 207,030 |
India | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 130,824 | 125,490 |
Asia, other than India | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 14,866 | 15,899 |
Americas | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 46,763 | 38,438 |
Europe | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 20,262 | $ 27,203 |
Contract Balances - Additional
Contract Balances - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Revenues [Abstract] | |
Billing cycle period | 30 days |
Contract Balances - Details of
Contract Balances - Details of Company's Contract Liabilities (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Revenues [Abstract] | ||
Advance from customers, Opening balance | $ 26,266 | |
Advance from customers, Gross opening balance | 26,266 | |
Advance from customers, Additions | 33,328 | |
Advance from customers, Effect of business combinations | 273 | |
Advance from customers, Revenue recognized | (32,091) | |
Advance from customers, Currency translation adjustments | (1,063) | |
Advance from customers, Gross closing balance | 26,713 | |
Advance from customers, Impact of closing balance offset with contract asset | (3,821) | |
Advance from customers, Closing balance | 22,892 | [1] |
Deferred transition revenue, Opening balance | 101,785 | |
Deferred transition revenue, Impact of opening balance offset | (21,348) | |
Deferred transition revenue, Gross opening balance | 123,133 | |
Deferred transition revenue, Additions | 67,838 | |
Deferred transition revenue, Effect of business combinations | 75 | |
Deferred transition revenue, Revenue recognized | (68,697) | |
Deferred transition revenue, Currency translation adjustments | (1,097) | |
Deferred transition revenue, Gross closing balance | 121,252 | |
Deferred transition revenue, Impact of closing balance offset with contract asset | (25,604) | |
Deferred transition revenue, Closing Balance | $ 95,648 | [1] |
[1] | Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet. |
Contract Balances - Estimated R
Contract Balances - Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation (Detail 1) $ in Thousands | Dec. 31, 2018USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 95,670 |
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 | $ 41,830 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 40,128 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 12,619 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 1,093 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Contract Balances - Estimated_2
Contract Balances - Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 95,670 |
Contract Balances - Details o_2
Contract Balances - Details of Company's Contract Assets (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Revenues [Abstract] | ||
Opening balance | $ 43,366 | |
Impact of opening balance offset | (21,348) | |
Gross opening balance | 64,714 | |
Additions | 48,216 | |
Reduction in revenue recognized | (38,470) | |
Gross closing balance | 74,460 | |
Impact of closing balance offset with contract liability | (29,425) | |
Closing balance | $ 45,035 | [1] |
[1] | Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. |
Contract Balances - Summary of
Contract Balances - Summary of Contract Cost Assets (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Closing balance | $ 160,193 | [1],[2] |
Sales Incentive Programs | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Opening balance | 23,227 | |
Closing balance | 25,891 | |
Amortization | 14,788 | |
Process Transition Activities | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Opening balance | 139,284 | |
Closing balance | 134,302 | |
Amortization | $ 70,775 | |
[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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. | |
[2] | The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 which has been offset against deferred tax assets. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Investment in equity affiliates | $ 836 | $ 886 | |
Affiliate of Significant Shareholder | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 714 | 398 | $ 335 |
Non-Consolidating Affiliates | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 5,400 | 8,077 | |
Cost of revenue | 1,094 | 2,043 | 2,067 |
Selling, general and administrative expenses, net of recovery | 191 | 315 | 291 |
Investment in equity affiliates | 496 | ||
Charges to equity-method investment | 2,849 | ||
Investment in equity affiliates | 836 | 886 | |
Cost reimbursements to non-consolidating affiliates | 477 | 1,162 | |
Non-Consolidating Affiliates | U.K. | |||
Related Party Transaction [Line Items] | |||
Payment for affiliate under tax sharing arrangement | 3,847 | ||
Significant Shareholder of Company | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative expenses, net of recovery | $ 30 | 57 | $ 58 |
Cost reimbursements to non-consolidating affiliates | $ 127 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Other Nonoperating Income Expense [Abstract] | |||||
Government incentives | $ 36,099 | $ 26,882 | |||
Other income/(expense) | (338) | (3,296) | $ 9,691 | ||
Other Income (expense), net | $ 35,761 | $ 23,586 | [1] | $ 9,691 | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies [Line Items] | ||
Bank guarantees, outstanding | $ 9,487 | $ 8,879 |
Capital Addition Purchase Commitments | ||
Commitments And Contingencies [Line Items] | ||
Commitments and contingencies | $ 4,859 | $ 8,314 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Total net revenues | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 3,000,790 | $ 2,736,929 | $ 2,570,756 | ||
Gross profit | 302,205 | 266,566 | 265,663 | 244,588 | 279,610 | 280,034 | 256,189 | 239,658 | 1,079,022 | 1,055,491 | 1,016,416 | ||
Income from operations | 110,841 | 94,028 | 79,522 | 63,761 | 73,305 | 97,919 | 80,959 | 79,096 | 348,152 | 331,279 | 341,206 | ||
Income before equity-method investment activity, net and income tax expense | 106,632 | 97,724 | 81,668 | 76,009 | 81,559 | 89,742 | 84,582 | 69,243 | 362,033 | 325,126 | 337,343 | ||
Net income | 79,147 | 73,603 | 64,574 | 63,934 | 66,138 | 73,161 | 69,102 | 52,440 | 281,258 | 260,841 | 267,547 | ||
Net loss attributable to redeemable non-controlling interest | 761 | 944 | 584 | (156) | 898 | 761 | 2,270 | 2,137 | |||||
Net income attributable to Genpact Limited common shareholders | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | $ 282,019 | $ 263,111 | $ 269,684 | ||
Earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||
Basic | $ 0.42 | $ 0.39 | $ 0.34 | $ 0.34 | $ 0.35 | $ 0.38 | $ 0.36 | $ 0.27 | $ 1.48 | $ 1.36 | $ 1.30 | ||
Diluted | $ 0.41 | $ 0.38 | $ 0.33 | $ 0.33 | $ 0.34 | $ 0.38 | $ 0.36 | $ 0.26 | $ 1.45 | $ 1.34 | $ 1.28 | ||
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | |||||||||||||
Basic | 189,724,744 | 190,024,924 | 190,132,664 | 192,816,626 | 192,795,534 | 192,124,366 | 191,469,593 | 199,069,528 | 190,674,740 | 193,864,755 | 206,861,536 | ||
Diluted | 193,149,836 | 193,115,769 | 193,365,974 | 196,288,569 | 196,862,168 | 194,947,699 | 193,732,406 | 202,655,937 | 193,980,038 | 197,049,552 | 210,126,023 | ||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Feb. 15, 2019 | Feb. 07, 2019 | Feb. 12, 2018 | Feb. 28, 2017 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||
Percentage increase in quarterly cash dividend | 25.00% | ||||
Planned annual dividend | $ 0.30 | $ 0.24 | |||
Quarterly dividend declared | $ 0.075 | $ 0.06 | $ 0.06 | ||
First Quarter Dividend | |||||
Subsequent Event [Line Items] | |||||
Dividend payment date | Mar. 21, 2018 | Mar. 28, 2017 | |||
Dividends payable, date of record | Mar. 9, 2018 | Mar. 10, 2017 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Percentage increase in quarterly cash dividend | 13.00% | ||||
Planned annual dividend | $ 0.34 | ||||
Subsequent Event | Underwritten Public Offering | Common shares | |||||
Subsequent Event [Line Items] | |||||
Common stock shares issued in secondary offering | 10 | ||||
Common stock price per share | $ 32.215 | ||||
Subsequent Event | First Quarter Dividend | |||||
Subsequent Event [Line Items] | |||||
Quarterly dividend declared | $ 0.085 | ||||
Dividend payment date | Mar. 20, 2019 | ||||
Dividends payable, date of record | Mar. 8, 2019 |
Guarantor Financial Informati_3
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 Informati_4
Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Current assets | ||||||
Cash and cash equivalents | $ 368,396 | $ 504,468 | $ 422,623 | $ 450,907 | ||
Accounts receivable, net | 774,184 | 693,085 | ||||
Prepaid expenses and other current assets | 212,477 | [1],[2] | 236,342 | |||
Total current assets | 1,355,057 | 1,433,895 | ||||
Property, plant and equipment, Net | 212,715 | 207,030 | ||||
Deferred tax assets | 74,566 | [3] | 76,929 | |||
Investment in equity affiliates | 836 | 886 | ||||
Intangible assets, net | 177,087 | 131,590 | ||||
Goodwill | 1,393,832 | 1,337,122 | 1,069,408 | |||
Contract cost assets | [1],[3] | 160,193 | ||||
Other assets | 155,159 | [1],[2] | 262,169 | |||
Total assets | 3,529,445 | 3,449,621 | ||||
Current liabilities | ||||||
Short-term borrowings | 295,000 | 170,000 | ||||
Current portion of long-term debt | 33,483 | 39,226 | ||||
Accounts payable | 42,584 | 15,050 | ||||
Income taxes payable | 33,895 | 30,026 | ||||
Accrued expenses and other current liabilities | 571,350 | [2] | 584,482 | |||
Total current liabilities | 976,312 | 838,784 | ||||
Long-term debt, less current portion | 975,645 | 1,006,687 | ||||
Deferred tax liabilities | 8,080 | 6,747 | ||||
Other liabilities | 165,226 | [2] | 168,609 | |||
Total liabilities | 2,125,263 | 2,020,827 | ||||
Redeemable non-controlling interest | 4,750 | 4,520 | ||||
Shareholders' equity | 1,404,182 | 1,424,044 | 1,286,648 | 1,304,356 | ||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | 3,529,445 | 3,449,621 | ||||
Eliminations | ||||||
Current assets | ||||||
Accounts receivable intercompany, net | (89,958) | (82,935) | ||||
Intercompany loans | (2,284,486) | (1,815,391) | ||||
Intercompany other receivable | (203,544) | (197,163) | ||||
Total current assets | (2,577,988) | (2,095,489) | ||||
Intercompany loans | (600,000) | (500,000) | ||||
Investment in subsidiaries | (4,179,210) | (3,819,975) | ||||
Investment in debentures/bonds, intercompany | (622,312) | (717,909) | ||||
Intercompany other receivable | (83,169) | (49,761) | ||||
Total assets | (8,062,679) | (7,183,134) | ||||
Current liabilities | ||||||
Intercompany loans | (2,284,486) | (1,815,391) | ||||
Intercompany accounts payable | (89,958) | (82,935) | ||||
Intercompany other payable | (203,544) | (197,163) | ||||
Total current liabilities | (2,577,988) | (2,095,489) | ||||
Intercompany other payable | (83,169) | (49,761) | ||||
Non-current intercompany loans payable | (1,222,312) | (1,217,909) | ||||
Total liabilities | (3,883,469) | (3,363,159) | ||||
Shareholders' equity | (4,179,210) | (3,819,975) | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | (8,062,679) | (7,183,134) | ||||
Issuer/Subsidiary | Reportable Legal Entities | ||||||
Current assets | ||||||
Cash and cash equivalents | 12,797 | 4,507 | 11,215 | 916 | ||
Accounts receivable intercompany, net | 89,958 | 82,935 | ||||
Intercompany loans | 447,578 | 194,854 | ||||
Intercompany other receivable | 33,224 | 25,343 | ||||
Prepaid expenses and other current assets | 2,242 | 311 | ||||
Total current assets | 585,799 | 307,950 | ||||
Property, plant and equipment, Net | 388 | 391 | ||||
Intercompany loans | 100,000 | |||||
Investment in subsidiaries | 548,654 | 426,410 | ||||
Investment in debentures/bonds, intercompany | 571,919 | 717,909 | ||||
Other assets | 682 | |||||
Total assets | 1,807,442 | 1,452,660 | ||||
Current liabilities | ||||||
Short-term borrowings | 100,000 | |||||
Intercompany loans | 128,572 | 38,000 | ||||
Current portion of long-term debt | 4,961 | |||||
Accounts payable | 1,636 | 103 | ||||
Income taxes payable | 885 | |||||
Intercompany other payable | 47,844 | 29,526 | ||||
Accrued expenses and other current liabilities | 5,248 | 5,995 | ||||
Total current liabilities | 288,261 | 74,509 | ||||
Long-term debt, less current portion | 440,665 | 347,761 | ||||
Non-current intercompany loans payable | 500,000 | 500,000 | ||||
Other liabilities | 197 | 1,211 | ||||
Total liabilities | 1,229,123 | 923,481 | ||||
Shareholders' equity | 578,319 | 529,179 | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | 1,807,442 | 1,452,660 | ||||
Parent/Guarantor | Reportable Legal Entities | ||||||
Current assets | ||||||
Cash and cash equivalents | 2,505 | 2,136 | 7,849 | 7,277 | ||
Intercompany loans | 1,300 | |||||
Intercompany other receivable | 52,783 | 82,631 | ||||
Prepaid expenses and other current assets | 1,278 | 1,276 | ||||
Total current assets | 57,866 | 86,043 | ||||
Investment in subsidiaries | 3,073,467 | 2,864,386 | ||||
Investment in debentures/bonds, intercompany | 50,393 | |||||
Intercompany other receivable | 83,169 | 49,761 | ||||
Total assets | 3,264,895 | 3,000,190 | ||||
Current liabilities | ||||||
Intercompany loans | 1,849,537 | 1,597,537 | ||||
Accounts payable | 520 | 58 | ||||
Intercompany other payable | 70,973 | 59,266 | ||||
Accrued expenses and other current liabilities | 5,157 | 2,390 | ||||
Total current liabilities | 1,926,187 | 1,659,251 | ||||
Other liabilities | 154 | 153 | ||||
Total liabilities | 1,926,341 | 1,659,404 | ||||
Shareholders' equity | 1,338,554 | 1,340,786 | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | 3,264,895 | 3,000,190 | ||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||
Current assets | ||||||
Cash and cash equivalents | 353,094 | 497,825 | $ 403,559 | $ 442,714 | ||
Accounts receivable, net | 774,184 | 693,085 | ||||
Intercompany loans | 1,835,608 | 1,620,537 | ||||
Intercompany other receivable | 117,537 | 89,189 | ||||
Prepaid expenses and other current assets | 208,957 | 234,755 | ||||
Total current assets | 3,289,380 | 3,135,391 | ||||
Property, plant and equipment, Net | 212,327 | 206,639 | ||||
Intercompany loans | 500,000 | 500,000 | ||||
Deferred tax assets | 74,566 | 76,929 | ||||
Investment in subsidiaries | 557,089 | 529,179 | ||||
Investment in equity affiliates | 836 | 886 | ||||
Intangible assets, net | 177,087 | 131,590 | ||||
Goodwill | 1,393,832 | 1,337,122 | ||||
Contract cost assets | 160,193 | |||||
Other assets | 154,477 | 262,169 | ||||
Total assets | 6,519,787 | 6,179,905 | ||||
Current liabilities | ||||||
Short-term borrowings | 195,000 | 170,000 | ||||
Intercompany loans | 306,377 | 179,854 | ||||
Current portion of long-term debt | 28,522 | 39,226 | ||||
Accounts payable | 40,428 | 14,889 | ||||
Intercompany accounts payable | 89,958 | 82,935 | ||||
Income taxes payable | 33,895 | 29,141 | ||||
Intercompany other payable | 84,727 | 108,371 | ||||
Accrued expenses and other current liabilities | 560,945 | 576,097 | ||||
Total current liabilities | 1,339,852 | 1,200,513 | ||||
Long-term debt, less current portion | 534,980 | 658,926 | ||||
Deferred tax liabilities | 8,080 | 6,747 | ||||
Intercompany other payable | 83,169 | 49,761 | ||||
Non-current intercompany loans payable | 722,312 | 717,909 | ||||
Other liabilities | 164,875 | 167,245 | ||||
Total liabilities | 2,853,268 | 2,801,101 | ||||
Redeemable non-controlling interest | 4,750 | |||||
Shareholders' equity | 3,666,519 | 3,374,054 | ||||
Commitments and contingencies | ||||||
Total liabilities, redeemable non-controlling interest and equity | $ 6,519,787 | $ 6,179,905 | ||||
[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 $48,704 and “Other assets” amounting to $85,598 to “Contract cost assets” amounting to $134,302. | |||||
[2] | As a result of its adoption of ASC 606, the company has offset contract assets amounting to $7,890 under “Prepaid expenses and other current assets” and $21,535 under “Other assets” against contract liabilities amounting $10,289 under “Accrued expenses and other current liabilities” and $19,136 under “Other liabilities” related to the same customer contract. | |||||
[3] | The cumulative impact of the adoption of ASC 606 resulted in a $160,193 increase in "Contract cost assets," which includes the reclassification of $134,302 (refer to note a in the table above) and a closing balance of $25,891 related to sales incentive programs, with a corresponding impact on retained earnings of $ 19,907 and on deferred tax assets of $5,984 which has been offset against deferred tax assets. |
Guarantor Financial Informati_5
Guarantor Financial Information - Condensed Consolidating Statement of Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Net revenues | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 734,413 | $ 708,824 | $ 670,697 | $ 622,995 | $ 3,000,790 | $ 2,736,929 | [1] | $ 2,570,756 | [1] | |
Cost of revenue | 1,921,768 | 1,681,438 | [1] | 1,554,340 | [1] | |||||||||
Gross profit | 302,205 | 266,566 | 265,663 | 244,588 | 279,610 | 280,034 | 256,189 | 239,658 | 1,079,022 | 1,055,491 | [1] | 1,016,416 | [1] | |
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses | 693,865 | [2] | 689,461 | [1] | 652,967 | [1] | ||||||||
Amortization of acquired intangible assets | 38,850 | 36,412 | [1] | 27,183 | [1] | |||||||||
Other operating (income) expense, net | (1,845) | (1,661) | [1] | (4,940) | [1] | |||||||||
Income from operations | 110,841 | 94,028 | 79,522 | 63,761 | 73,305 | 97,919 | 80,959 | 79,096 | 348,152 | 331,279 | [1] | 341,206 | [1] | |
Foreign exchange gains (losses), net | 15,239 | 1,996 | [1] | 2,630 | [1] | |||||||||
Interest income (expense), net | (37,119) | (31,735) | [1] | (16,184) | [1] | |||||||||
Other income (expense), net | 35,761 | 23,586 | [1] | 9,691 | [1] | |||||||||
Income before equity-method investment activity, net and income tax expense | 106,632 | 97,724 | 81,668 | 76,009 | 81,559 | 89,742 | 84,582 | 69,243 | 362,033 | 325,126 | [1] | 337,343 | [1] | |
Gain (loss) on equity-method investment activity, net | (12) | (4,543) | [1] | (7,698) | [1] | |||||||||
Income before income tax expense | 362,021 | 320,583 | [1] | 329,645 | [1] | |||||||||
Income tax expense | 80,763 | 59,742 | [1] | 62,098 | [1] | |||||||||
Net income | 79,147 | 73,603 | 64,574 | 63,934 | 66,138 | 73,161 | 69,102 | 52,440 | 281,258 | 260,841 | [1] | 267,547 | [1] | |
Net loss attributable to redeemable non-controlling interest | 761 | 944 | 584 | (156) | 898 | 761 | 2,270 | [1] | 2,137 | [1] | ||||
Net income attributable to Genpact Limited shareholders | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | 282,019 | 263,111 | [1] | 269,684 | [1] | |
Eliminations | ||||||||||||||
Net revenues | (50,356) | (46,722) | (39,518) | |||||||||||
Gross profit | (50,356) | (46,722) | (39,518) | |||||||||||
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses | (50,422) | (69,619) | (41,984) | |||||||||||
Income from operations | 66 | 22,897 | 2,466 | |||||||||||
Income before equity-method investment activity, net and income tax expense | 66 | 22,897 | 2,466 | |||||||||||
Gain (loss) on equity-method investment activity, net | (532,764) | (359,475) | (456,142) | |||||||||||
Income before income tax expense | (532,698) | (336,578) | (453,676) | |||||||||||
Net income | (532,698) | (336,578) | (453,676) | |||||||||||
Net income attributable to Genpact Limited shareholders | (532,698) | (336,578) | (453,676) | |||||||||||
Issuer/Subsidiary | Reportable Legal Entities | ||||||||||||||
Net revenues | 50,356 | 46,722 | 39,518 | |||||||||||
Gross profit | 50,356 | 46,722 | 39,518 | |||||||||||
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses | 11,324 | 9,859 | 9,499 | |||||||||||
Amortization of acquired intangible assets | 48 | |||||||||||||
Other operating (income) expense, net | (17,599) | (3,412) | (4,043) | |||||||||||
Income from operations | 56,583 | 40,275 | 34,062 | |||||||||||
Foreign exchange gains (losses), net | 449 | 3,312 | (1,633) | |||||||||||
Interest income (expense), net | (16,504) | (11,375) | (1,358) | |||||||||||
Intercompany interest income (expense), net | 77,857 | 47,547 | 81,359 | |||||||||||
Other income (expense), net | 18,391 | (829) | ||||||||||||
Income before equity-method investment activity, net and income tax expense | 118,385 | 98,150 | 111,601 | |||||||||||
Gain (loss) on equity-method investment activity, net | 62,501 | (15,058) | 29,969 | |||||||||||
Income before income tax expense | 180,886 | 83,092 | 141,570 | |||||||||||
Income tax expense | 6,124 | 7,435 | 8,384 | |||||||||||
Net income | 174,762 | 75,657 | 133,186 | |||||||||||
Net income attributable to Genpact Limited shareholders | 174,762 | 75,657 | 133,186 | |||||||||||
Parent Company | Reportable Legal Entities | ||||||||||||||
Cost of revenue | 5,188 | |||||||||||||
Gross profit | (5,188) | |||||||||||||
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses | 23,703 | 21,076 | 12,772 | |||||||||||
Other operating (income) expense, net | (500) | |||||||||||||
Income from operations | (28,891) | (21,076) | (12,272) | |||||||||||
Foreign exchange gains (losses), net | 845 | 2 | 57 | |||||||||||
Intercompany interest income (expense), net | (19,279) | (10,148) | ||||||||||||
Other income (expense), net | (3,390) | |||||||||||||
Income before equity-method investment activity, net and income tax expense | (47,325) | (31,222) | (15,605) | |||||||||||
Gain (loss) on equity-method investment activity, net | 346,960 | 294,333 | 285,289 | |||||||||||
Income before income tax expense | 299,635 | 263,111 | 269,684 | |||||||||||
Net income | 299,635 | 263,111 | 269,684 | |||||||||||
Net income attributable to Genpact Limited shareholders | 299,635 | 263,111 | 269,684 | |||||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||||
Net revenues | 3,000,790 | 2,736,929 | 2,570,756 | |||||||||||
Cost of revenue | 1,916,580 | 1,681,438 | 1,554,340 | |||||||||||
Gross profit | 1,084,210 | 1,055,491 | 1,016,416 | |||||||||||
Operating expenses: | ||||||||||||||
Selling, general and administrative expenses | 709,260 | 728,145 | 672,680 | |||||||||||
Amortization of acquired intangible assets | 38,802 | 36,412 | 27,183 | |||||||||||
Other operating (income) expense, net | 15,754 | 1,751 | (397) | |||||||||||
Income from operations | 320,394 | 289,183 | 316,950 | |||||||||||
Foreign exchange gains (losses), net | 13,945 | (1,318) | 4,206 | |||||||||||
Interest income (expense), net | (20,615) | (20,360) | (14,826) | |||||||||||
Intercompany interest income (expense), net | (58,578) | (37,399) | (81,359) | |||||||||||
Other income (expense), net | 35,761 | 5,195 | 13,910 | |||||||||||
Income before equity-method investment activity, net and income tax expense | 290,907 | 235,301 | 238,881 | |||||||||||
Gain (loss) on equity-method investment activity, net | 123,291 | 75,657 | 133,186 | |||||||||||
Income before income tax expense | 414,198 | 310,958 | 372,067 | |||||||||||
Income tax expense | 74,639 | 52,307 | 53,714 | |||||||||||
Net income | 339,559 | 258,651 | 318,353 | |||||||||||
Net loss attributable to redeemable non-controlling interest | 761 | 2,270 | 2,137 | |||||||||||
Net income attributable to Genpact Limited shareholders | $ 340,320 | $ 260,921 | $ 320,490 | |||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. | |||||||||||||
[2] | During the year ended December 31, 2018, the Company amortized $14,788 in contract costs related to obtaining a contract. Following the adoption of ASC 606, the Company capitalized such costs in an amount of $17,452 resulting in a net adjustment of $2,664 with a corresponding impact on income tax benefit of $681. |
Guarantor Financial Informati_6
Guarantor Financial Information - Condensed Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Net income (loss) | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | $ 67,082 | $ 73,745 | $ 68,946 | $ 53,338 | $ 282,019 | $ 263,111 | [1] | $ 269,684 | [1] |
Other comprehensive income: | |||||||||||||
Currency translation adjustments | (109,656) | 93,871 | (46,340) | ||||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes | (46,293) | 12,611 | 43,742 | ||||||||||
Retirement benefits, net of taxes | 1,454 | (3,787) | (4,042) | ||||||||||
Other comprehensive income (loss) | (154,495) | 102,695 | (6,640) | ||||||||||
Comprehensive income (loss) | 127,524 | 365,806 | 263,044 | ||||||||||
Redeemable non-controlling interest, Net income (loss) | $ (761) | $ (944) | $ (584) | $ 156 | $ (898) | (761) | (2,270) | [1] | (2,137) | [1] | |||
Redeemable non-controlling interest, Other comprehensive income: | |||||||||||||
Redeemable non-controlling interest, Currency translation adjustments | (424) | (341) | 104 | ||||||||||
Redeemable non-controlling interest, Other comprehensive income (loss) | (424) | (341) | 104 | ||||||||||
Redeemable non-controlling interest, Comprehensive income (loss) | (1,185) | (2,611) | (2,033) | ||||||||||
Eliminations | |||||||||||||
Net income (loss) | (532,698) | (336,578) | (453,676) | ||||||||||
Other comprehensive income: | |||||||||||||
Currency translation adjustments | 181,727 | (168,587) | 78,019 | ||||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes | 45,795 | (22,399) | (85,758) | ||||||||||
Retirement benefits, net of taxes | (1,264) | 3,312 | 4,759 | ||||||||||
Other comprehensive income (loss) | 226,258 | (187,674) | (2,980) | ||||||||||
Comprehensive income (loss) | (306,440) | (524,252) | (456,656) | ||||||||||
Issuer/Subsidiary | Reportable Legal Entities | |||||||||||||
Net income (loss) | 174,762 | 75,657 | 133,186 | ||||||||||
Other comprehensive income: | |||||||||||||
Currency translation adjustments | (72,071) | 74,716 | (31,679) | ||||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes | 498 | 9,788 | 42,016 | ||||||||||
Retirement benefits, net of taxes | (190) | 475 | (717) | ||||||||||
Other comprehensive income (loss) | (71,763) | 84,979 | 9,620 | ||||||||||
Comprehensive income (loss) | 102,999 | 160,636 | 142,806 | ||||||||||
Parent Company | Reportable Legal Entities | |||||||||||||
Net income (loss) | 299,635 | 263,111 | 269,684 | ||||||||||
Other comprehensive income: | |||||||||||||
Currency translation adjustments | (109,656) | 93,871 | (46,340) | ||||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes | (46,293) | 12,611 | 43,742 | ||||||||||
Retirement benefits, net of taxes | 1,454 | (3,787) | (4,042) | ||||||||||
Other comprehensive income (loss) | (154,495) | 102,695 | (6,640) | ||||||||||
Comprehensive income (loss) | 145,140 | 365,806 | 263,044 | ||||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||||
Net income (loss) | 340,320 | 260,921 | 320,490 | ||||||||||
Other comprehensive income: | |||||||||||||
Currency translation adjustments | (109,656) | 93,871 | (46,340) | ||||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes | (46,293) | 12,611 | 43,742 | ||||||||||
Retirement benefits, net of taxes | 1,454 | (3,787) | (4,042) | ||||||||||
Other comprehensive income (loss) | (154,495) | 102,695 | (6,640) | ||||||||||
Comprehensive income (loss) | 185,825 | 363,616 | 313,850 | ||||||||||
Redeemable non-controlling interest, Net income (loss) | $ (761) | $ (2,270) | $ (2,137) | ||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2016 and 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Guarantor Financial Informati_7
Guarantor Financial Information - Condensed Consolidating Cash Flow (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net cash (used for)/provided by operating activities | $ 339,511 | $ 359,078 | $ 345,772 |
Investing activities | |||
Purchase of property, plant and equipment | (84,978) | (57,231) | (81,926) |
Payment for acquired/internally generated intangible assets (including intangibles under development) | (75,439) | (16,441) | (6,846) |
Proceeds from sale of property, plant and equipment | 668 | 1,738 | 547 |
Investment in equity affiliates | (496) | (9,620) | |
Payment for business acquisitions, net of cash acquired | (111,571) | (284,822) | (45,162) |
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Proceeds from divestiture of business, net of cash divested | (4,738) | 17,242 | |
Net cash used for investing activities | (276,050) | (361,990) | (125,765) |
Financing activities | |||
Repayment of capital lease obligations | (2,395) | (2,708) | (1,793) |
Payment of debt issuance costs | (4,293) | (2,630) | |
Proceeds from long-term debt | 129,186 | 350,000 | |
Repayment of long-term debt | (166,186) | (40,000) | (40,000) |
Proceeds from short-term borrowings | 250,000 | 295,000 | 200,000 |
Repayment of short-term borrowings | (125,000) | (285,000) | (61,500) |
Proceeds from issuance of common shares under stock-based compensation plans | 14,034 | 15,528 | 18,228 |
Payment for net settlement of stock-based awards | (15,919) | (10,296) | (769) |
Payment of earn-out/deferred consideration | (3,356) | (6,219) | (1,485) |
Dividend paid | (57,102) | (46,686) | |
Payment for stock repurchased and retired | (154,058) | (219,784) | (345,200) |
Payment for expenses related to stock repurchase | (98) | (16) | (279) |
Net cash provided by/(used for) financing activities | (135,187) | 47,189 | (232,798) |
Effect of exchange rate changes | (64,346) | 37,568 | (15,493) |
Net increase (decrease) in cash and cash equivalents | (71,726) | 44,277 | (12,791) |
Cash and cash equivalents at the beginning of the period | 504,468 | 422,623 | 450,907 |
Cash and cash equivalents at the end of the period | 368,396 | 504,468 | 422,623 |
Eliminations | |||
Operating activities | |||
Net cash (used for)/provided by operating activities | 569,096 | 171,453 | 428,911 |
Investing activities | |||
Investment in subsidiaries | 97,730 | (47,489) | 61,720 |
Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany | (41,368) | ||
Net cash used for investing activities | 56,362 | (47,489) | 61,720 |
Financing activities | |||
Proceeds from intercompany loans | (814,867) | (263,886) | (426,445) |
Repayment of intercompany loans | 245,771 | 115,328 | |
Proceeds from issuance of common shares | (113,954) | (40,000) | |
Dividend paid | 16,224 | ||
Payment for stock repurchased and retired | (24,186) | ||
Payment for redemption of debentures/(proceeds) from issuance of bonds, intercompany | 41,366 | ||
Change in amounts due from/ due to consolidated affiliates | 24,594 | ||
Net cash provided by/(used for) financing activities | (625,460) | (123,964) | (490,631) |
Issuer/Subsidiary | Reportable Legal Entities | |||
Operating activities | |||
Net cash (used for)/provided by operating activities | (266,889) | (315,877) | (42,212) |
Investing activities | |||
Purchase of property, plant and equipment | (625) | ||
Investment in equity affiliates | (523) | (5,884) | |
Investment in subsidiaries | (97,730) | (3,638) | (53,619) |
Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany | 91,760 | ||
Net cash used for investing activities | (5,970) | (4,161) | (60,128) |
Financing activities | |||
Payment of debt issuance costs | (2,630) | ||
Proceeds from long-term debt | 100,000 | 350,000 | |
Repayment of long-term debt | (2,450) | ||
Proceeds from short-term borrowings | 100,000 | ||
Proceeds from intercompany loans | 172,047 | 73,000 | |
Repayment of intercompany loans | (81,479) | (35,000) | |
Proceeds from issuance of common shares | 40,000 | ||
Payment of earn-out/deferred consideration | (1,797) | ||
Net cash provided by/(used for) financing activities | 286,321 | 312,370 | 113,000 |
Effect of exchange rate changes | (5,172) | 960 | (361) |
Net increase (decrease) in cash and cash equivalents | 13,462 | (7,668) | 10,660 |
Cash and cash equivalents at the beginning of the period | 4,507 | 11,215 | 916 |
Cash and cash equivalents at the end of the period | 12,797 | 4,507 | 11,215 |
Parent Company | Reportable Legal Entities | |||
Operating activities | |||
Net cash (used for)/provided by operating activities | 11,905 | (8,345) | 25,592 |
Investing activities | |||
Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany | (50,393) | ||
Net cash used for investing activities | (50,393) | ||
Financing activities | |||
Proceeds from intercompany loans | 308,500 | 263,886 | 303,000 |
Repayment of intercompany loans | (56,500) | ||
Proceeds from issuance of common shares under stock-based compensation plans | 14,034 | 15,528 | 18,228 |
Payment for net settlement of stock-based awards | (15,919) | (10,296) | (769) |
Dividend paid | (57,102) | (46,686) | |
Payment for stock repurchased and retired | (154,058) | (219,784) | (345,200) |
Payment for expenses related to stock repurchase | (98) | (16) | (279) |
Net cash provided by/(used for) financing activities | 38,857 | 2,632 | (25,020) |
Net increase (decrease) in cash and cash equivalents | 369 | (5,713) | 572 |
Cash and cash equivalents at the beginning of the period | 2,136 | 7,849 | 7,277 |
Cash and cash equivalents at the end of the period | 2,505 | 2,136 | 7,849 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Operating activities | |||
Net cash (used for)/provided by operating activities | 25,399 | 511,847 | (66,519) |
Investing activities | |||
Purchase of property, plant and equipment | (84,978) | (57,231) | (81,301) |
Payment for acquired/internally generated intangible assets (including intangibles under development) | (75,439) | (16,441) | (6,846) |
Proceeds from sale of property, plant and equipment | 668 | 1,738 | 547 |
Investment in equity affiliates | 27 | (3,736) | |
Investment in subsidiaries | 51,127 | (8,101) | |
Payment for business acquisitions, net of cash acquired | (111,571) | (284,822) | (45,162) |
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Proceeds from divestiture of business, net of cash divested | (4,738) | 17,242 | |
Net cash used for investing activities | (276,050) | (310,340) | (127,357) |
Financing activities | |||
Repayment of capital lease obligations | (2,395) | (2,708) | (1,793) |
Payment of debt issuance costs | (4,293) | ||
Proceeds from long-term debt | 29,186 | ||
Repayment of long-term debt | (163,736) | (40,000) | (40,000) |
Proceeds from short-term borrowings | 150,000 | 295,000 | 200,000 |
Repayment of short-term borrowings | (125,000) | (285,000) | (61,500) |
Proceeds from intercompany loans | 334,320 | 50,445 | |
Repayment of intercompany loans | (107,792) | (80,328) | |
Proceeds from issuance of common shares | 113,954 | ||
Payment of earn-out/deferred consideration | (1,559) | (6,219) | (1,485) |
Dividend paid | (16,224) | ||
Payment for stock repurchased and retired | 24,186 | ||
Payment for redemption of debentures/(proceeds) from issuance of bonds, intercompany | (41,366) | ||
Change in amounts due from/ due to consolidated affiliates | (24,594) | ||
Net cash provided by/(used for) financing activities | 165,095 | (143,849) | 169,853 |
Effect of exchange rate changes | (59,174) | 36,608 | (15,132) |
Net increase (decrease) in cash and cash equivalents | (85,557) | 57,658 | (24,023) |
Cash and cash equivalents at the beginning of the period | 497,825 | 403,559 | 442,714 |
Cash and cash equivalents at the end of the period | $ 353,094 | $ 497,825 | $ 403,559 |