Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | G | |
Entity Registrant Name | GENPACT LTD | |
Entity Central Index Key | 0001398659 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 189,956,225 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | D0 | |
Title of 12(b) Security | Common shares, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33626 | |
Entity Tax Identification Number | 98-0533350 | |
Entity Address, Address Line One | Victoria Place, 5th Floor | |
Entity Address, Address Line Two | 31 Victoria Street | |
Entity Address, City or Town | Hamilton | |
Entity Address, Country | BM | |
Entity Address, Postal Zip Code | HM 10 | |
City Area Code | 441 | |
Local Phone Number | 294-8000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 456,872 | $ 368,396 |
Accounts receivable, net | 863,232 | 774,184 |
Prepaid expenses and other current assets | 236,761 | 212,477 |
Total current assets | 1,556,865 | 1,355,057 |
Property, plant and equipment, net | 216,385 | 212,715 |
Operating lease right-of-use assets | 299,868 | |
Deferred tax assets | 80,583 | 74,566 |
Investment in equity affiliates | 836 | |
Intangible assets, net | 162,571 | 177,087 |
Goodwill | 1,389,487 | 1,393,832 |
Contract cost assets | 206,503 | 160,193 |
Other assets | 185,499 | 155,159 |
Total assets | 4,097,761 | 3,529,445 |
Current liabilities | ||
Short-term borrowings | 245,000 | 295,000 |
Current portion of long-term debt | 33,504 | 33,483 |
Accounts payable | 20,954 | 42,584 |
Income taxes payable | 84,537 | 33,895 |
Accrued expenses and other current liabilities | 630,151 | 571,350 |
Operating leases liability | 50,048 | |
Total current liabilities | 1,064,194 | 976,312 |
Long-term debt, less current portion | 950,908 | 975,645 |
Operating leases liability | 278,449 | |
Deferred tax liabilities | 4,413 | 8,080 |
Other liabilities | 194,113 | 165,226 |
Total liabilities | 2,492,077 | 2,125,263 |
Shareholders' equity | ||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | ||
Common shares, $0.01 par value, 500,000,000 authorized, 189,346,101 and 190,113,448 issued and outstanding as of December 31, 2018 and September 30, 2019, respectively | 1,896 | 1,888 |
Additional paid-in capital | 1,544,755 | 1,471,301 |
Retained earnings | 588,714 | 438,453 |
Accumulated other comprehensive income (loss) | (529,681) | (507,460) |
Total equity | 1,605,684 | 1,404,182 |
Commitments and contingencies | ||
Total liabilities and equity | $ 4,097,761 | $ 3,529,445 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 250,000,000 | 250,000,000 |
Preferred shares, issued | 0 | 0 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, authorized | 500,000,000 | 500,000,000 |
Common shares, issued | 190,113,448 | 189,346,101 |
Common shares, outstanding | 190,113,448 | 189,346,101 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net revenues | $ 888,799 | $ 747,978 | $ 2,579,804 | $ 2,165,451 |
Cost of revenue | 573,659 | 481,412 | 1,664,040 | 1,388,634 |
Gross profit | 315,140 | 266,566 | 915,764 | 776,817 |
Operating expenses: | ||||
Selling, general and administrative expenses | 194,537 | 168,010 | 582,251 | 515,285 |
Amortization of acquired intangible assets | 6,960 | 9,372 | 23,565 | 29,134 |
Other operating (income) expense, net | 59 | (4,844) | 90 | (4,913) |
Income from operations | 113,584 | 94,028 | 309,858 | 237,311 |
Foreign exchange gains (losses), net | 6,727 | 7,450 | 3,646 | 15,053 |
Interest income (expense), net | (10,221) | (9,139) | (33,487) | (27,646) |
Other income (expense), net | 704 | 5,385 | 5,067 | 30,683 |
Income before equity-method investment activity, net and income tax expense | 110,794 | 97,724 | 285,084 | 255,401 |
Equity-method investment activity, net | (5) | (7) | (16) | (22) |
Income before income tax expense | 110,789 | 97,717 | 285,068 | 255,379 |
Income tax expense | 22,669 | 24,114 | 62,385 | 53,268 |
Net income | 88,120 | 73,603 | 222,683 | 202,111 |
Net loss attributable to redeemable non-controlling interest | 761 | |||
Net income attributable to Genpact Limited shareholders | 88,120 | 73,603 | 222,683 | 202,872 |
Net income available to Genpact Limited common shareholders | $ 88,120 | $ 73,603 | $ 222,683 | $ 202,872 |
Earnings per common share attributable to Genpact Limited common shareholders | ||||
Basic | $ 0.46 | $ 0.39 | $ 1.17 | $ 1.06 |
Diluted | $ 0.45 | $ 0.38 | $ 1.14 | $ 1.04 |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | ||||
Basic | 190,599,049 | 190,024,924 | 190,071,418 | 190,991,405 |
Diluted | 195,890,841 | 193,115,769 | 194,683,699 | 194,256,771 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 88,120 | $ 73,603 | $ 222,683 | $ 202,872 |
Other comprehensive income: | ||||
Currency translation adjustments | (39,404) | (58,134) | (24,677) | (141,150) |
Net income (loss) on cash flow hedging derivatives, net of taxes | (11,360) | (28,918) | 1,683 | (75,729) |
Retirement benefits, net of taxes | 346 | 692 | 773 | 1,822 |
Other comprehensive income (loss) | (50,418) | (86,360) | (22,221) | (215,057) |
Comprehensive income (loss) | $ 37,702 | $ (12,757) | $ 200,462 | (12,185) |
Redeemable non-controlling interest, Net income (loss) | (761) | |||
Redeemable non-controlling interest, Other comprehensive income: | ||||
Redeemable non-controlling interest, Currency translation adjustments | (424) | |||
Redeemable non-controlling interest, Other comprehensive income (loss) | (424) | |||
Redeemable non-controlling interest, Comprehensive income (loss) | $ (1,185) |
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, 2017 | $ 1,424,044 | $ 1,924 | $ 1,421,368 | $ 355,982 | $ (355,230) |
Beginning balance, value (in shares) at Dec. 31, 2017 | 192,825,207 | ||||
Redeemable non-controlling interest, Beginning 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 | ||||
Issuance of common shares under the employee stock purchase plan | 5,017 | $ 2 | 5,015 | ||
Issuance of common shares under the employee stock purchase plan (in shares) | 181,643 | ||||
Net settlement on vesting of restricted share units | (1,663) | $ 2 | (1,665) | ||
Net settlement on vesting of restricted share units (in shares) | 192,222 | ||||
Net settlement on vesting of performance units | (13,284) | $ 7 | (13,291) | ||
Net settlement on vesting of performance units (in shares) | 691,958 | ||||
Stock repurchased and retired | $ (130,103) | $ (43) | 4,000 | (134,060) | |
Stock repurchased and retired (in shares) | (4,114,882) | (4,278,857) | |||
Expenses related to stock repurchase | $ (82) | (82) | |||
Stock-based compensation expense | 32,158 | 32,158 | |||
Payment for acquisition of redeemable non-controlling interest | (1,165) | (1,165) | |||
Redeemable non-controlling interest, Acquisition of redeemable non controlling interest | (3,565) | ||||
Comprehensive income (loss): | |||||
Net income (loss) | 202,872 | 202,872 | |||
Redeemable non-controlling interest, Net income (loss) | (761) | ||||
Other comprehensive income (loss) | (215,057) | (215,057) | |||
Redeemable non-controlling interest, Other comprehensive income (loss) | (424) | ||||
Dividend | (42,901) | (42,901) | |||
End balance, value at Sep. 30, 2018 | 1,285,018 | $ 1,896 | 1,453,674 | 397,470 | (568,022) |
End balance, value (in shares) at Sep. 30, 2018 | 190,053,249 | ||||
Beginning balance, value at Jun. 30, 2018 | 1,296,425 | $ 1,895 | 1,438,072 | 338,120 | (481,662) |
Beginning balance, value (in shares) at Jun. 30, 2018 | 189,876,061 | ||||
Issuance of common shares on exercise of options | 1,047 | 1,047 | |||
Issuance of common shares on exercise of options (in shares) | 74,694 | ||||
Issuance of common shares under the employee stock purchase plan | 1,840 | $ 1 | 1,839 | ||
Issuance of common shares under the employee stock purchase plan (in shares) | 66,692 | ||||
Net settlement on vesting of restricted share units | (718) | (718) | |||
Net settlement on vesting of restricted share units (in shares) | 35,802 | ||||
Stock-based compensation expense | 13,434 | 13,434 | |||
Comprehensive income (loss): | |||||
Net income (loss) | 73,603 | 73,603 | |||
Other comprehensive income (loss) | (86,360) | ||||
Other comprehensive income (loss) | (86,360) | (86,360) | |||
Dividend | (14,253) | (14,253) | |||
End balance, value at Sep. 30, 2018 | 1,285,018 | $ 1,896 | 1,453,674 | 397,470 | (568,022) |
End balance, value (in shares) at Sep. 30, 2018 | 190,053,249 | ||||
Beginning balance, value at Dec. 31, 2018 | $ 1,404,182 | $ 1,888 | 1,471,301 | 438,453 | (507,460) |
Beginning balance, value (in shares) at Dec. 31, 2018 | 189,346,101 | 189,346,101 | |||
Issuance of common shares on exercise of options | $ 9,505 | $ 6 | 9,499 | ||
Issuance of common shares on exercise of options (in shares) | 622,494 | 622,494 | |||
Issuance of common shares under the employee stock purchase plan | $ 6,444 | $ 2 | 6,442 | ||
Issuance of common shares under the employee stock purchase plan (in shares) | 195,221 | ||||
Net settlement on vesting of restricted share units | (3,788) | $ 6 | (3,794) | ||
Net settlement on vesting of restricted share units (in shares) | 557,917 | ||||
Stock repurchased and retired | $ (23,901) | $ (6) | (23,895) | ||
Stock repurchased and retired (in shares) | (608,285) | (608,285) | |||
Expenses related to stock repurchase | $ (12) | (12) | |||
Stock-based compensation expense | 61,307 | 61,307 | |||
Comprehensive income (loss): | |||||
Net income (loss) | 222,683 | 222,683 | |||
Other comprehensive income (loss) | (22,221) | ||||
Other comprehensive income (loss) | (22,221) | (22,221) | |||
Dividend | (48,515) | (48,515) | |||
End balance, value at Sep. 30, 2019 | $ 1,605,684 | $ 1,896 | 1,544,755 | 588,714 | (529,681) |
End balance, value (in shares) at Sep. 30, 2019 | 190,113,448 | 190,113,448 | |||
Beginning balance, value at Jun. 30, 2019 | $ 1,583,370 | $ 1,899 | 1,520,025 | 540,709 | (479,263) |
Beginning balance, value (in shares) at Jun. 30, 2019 | 190,486,041 | ||||
Issuance of common shares on exercise of options | 2,228 | $ 1 | 2,227 | ||
Issuance of common shares on exercise of options (in shares) | 115,997 | ||||
Issuance of common shares under the employee stock purchase plan | 2,244 | $ 1 | 2,243 | ||
Issuance of common shares under the employee stock purchase plan (in shares) | 60,875 | ||||
Net settlement on vesting of restricted share units | (1,059) | $ 1 | (1,060) | ||
Net settlement on vesting of restricted share units (in shares) | 58,820 | ||||
Stock repurchased and retired | (23,901) | $ (6) | (23,895) | ||
Stock repurchased and retired (in shares) | (608,285) | ||||
Expenses related to stock repurchase | (12) | (12) | |||
Stock-based compensation expense | 21,320 | 21,320 | |||
Comprehensive income (loss): | |||||
Net income (loss) | 88,120 | 88,120 | |||
Other comprehensive income (loss) | (50,418) | ||||
Other comprehensive income (loss) | (50,418) | (50,418) | |||
Dividend | (16,208) | (16,208) | |||
End balance, value at Sep. 30, 2019 | $ 1,605,684 | $ 1,896 | $ 1,544,755 | $ 588,714 | $ (529,681) |
End balance, value (in shares) at Sep. 30, 2019 | 190,113,448 | 190,113,448 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity and Redeemable Non-controlling Interest (Parenthetical) - $ / shares | Feb. 07, 2019 | Feb. 12, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Stockholders Equity [Abstract] | ||||||||
Dividends per common share | $ 0.085 | $ 0.075 | $ 0.085 | $ 0.075 | $ 0.255 | $ 0.225 | $ 0.075 | $ 0.06 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income attributable to Genpact Limited shareholders | $ 222,683 | $ 202,872 |
Redeemable non-controlling interest, Net income (loss) | (761) | |
Net income | 222,683 | 202,111 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 70,234 | 47,612 |
Amortization of debt issuance costs (including loss on extinguishment of debt) | 1,288 | 3,546 |
Amortization of acquired intangible assets | 23,565 | 29,134 |
Write-down of intangible assets and property, plant and equipment | 3,511 | 1,538 |
Reserve for doubtful receivables | 7,169 | 1,705 |
Unrealized (gain) on revaluation of foreign currency asset/liability | (4,862) | (4,544) |
Equity-method investment activity, net | 16 | 22 |
Stock-based compensation expense | 61,307 | 32,158 |
Deferred income taxes | (6,946) | (1,768) |
Others, net | (2,621) | 255 |
Change in operating assets and liabilities: | ||
Increase in accounts receivable | (97,269) | (12,946) |
Increase in prepaid expenses, other current assets, contract cost assets, operating lease right-of-use assets and other assets | (87,064) | (96,300) |
Increase (decrease) in accrued expenses, other current liabilities, operating lease liabilities and other liabilities | 122,411 | (44,602) |
Increase in income taxes payable | 48,567 | 45,798 |
Net cash provided by operating activities | 341,319 | 202,806 |
Decrease in accounts payable | (20,670) | (913) |
Investing activities | ||
Purchase of property, plant and equipment | (55,071) | (68,027) |
Payment for internally generated intangible assets (including intangibles under development) | (26,261) | (19,397) |
Proceeds from sale of property, plant and equipment | 1,621 | 499 |
Payment for business acquisitions, net of cash acquired | (6,305) | (108,105) |
Payment for purchase of redeemable non-controlling interest | (4,730) | |
Net cash used for investing activities | (86,016) | (199,760) |
Financing activities | ||
Repayment of capital/finance lease obligations | (6,256) | (1,954) |
Payment of debt issuance costs | (4,293) | |
Proceeds from long-term debt | 129,186 | |
Repayment of long-term debt | (25,500) | (157,686) |
Proceeds from short-term borrowings | 50,000 | 225,000 |
Repayment of short-term borrowings | (100,000) | (65,000) |
Proceeds from issuance of common shares under stock-based compensation plans | 15,949 | 12,275 |
Payment for net settlement of stock-based awards | (3,177) | (14,947) |
Payment of earn-out/deferred consideration | (12,790) | (1,559) |
Dividend paid | (48,515) | (42,901) |
Payment for stock repurchased and retired | (23,901) | (130,103) |
Payment for expenses related to stock repurchase | (12) | (82) |
Net cash used for financing activities | (154,202) | (52,064) |
Effect of exchange rate changes | (12,625) | (54,220) |
Net increase (decrease) in cash and cash equivalents | 101,101 | (49,018) |
Cash and cash equivalents at the beginning of the period | 368,396 | 504,468 |
Cash and cash equivalents at the end of the period | 456,872 | 401,230 |
Supplementary information | ||
Cash paid during the period for interest | 31,633 | 35,082 |
Cash paid during the period for income taxes | 65,562 | 54,920 |
Property, plant and equipment acquired under capital/finance lease obligations | $ 3,587 | $ 1,832 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2019 | |
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 93,000 employees serving clients in key industry verticals from more than 30 countries. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of preparation and principles of consolidation The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year. The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding changes to additional paid in capital. The Company’s 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, valuations of derivative financial instruments, the measurement of lease liabilities and right-of-use ( 2. Summary of significant accounting policies (Continued) (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under selling, general and administrative expenses. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 2-11 years Marketing-related intangible assets 2-8 years Technology-related intangible assets 2-8 years Other intangible assets 3 years 2. Summary of significant accounting policies (Continued) Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the consolidated statements of income. (d) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations an banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. The General Electric Company (“GE”) accounted for 11% and 16% of receivables as of December 31, 2018 and September 30, 2019, respectively. GE accounted for 9% of total revenue for each of the nine and three months periods ended September 30, 2018, respectively, and 14% (e) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial condition, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. ( f) Revenue Recognition The Company derives its revenue primarily from business process management including analytics, consulting and related digital solutions 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 the customization of applications and 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. 2. Summary of significant accounting policies (Continued) Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (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 client. 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. 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 the client 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. Significant judgments The Company often enters into contracts with its 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. (g) 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 Standards Codification Topic 842, Leases (“Topic 842”), effective January 1, 2019. The Company applied Topic 842 using the modified retrospective adoption approach, which involves recognizing new ROU assets and lease liabilities in its statement of financial position for various operating leases. Therefore, comparative information has not been adjusted and continues to be reported under ASC Topic 840. 2. Summary of significant accounting policies (Continued) As a result of the Company’s adoption of this new standard, all leases are classified as either operating leases or finance leases and are recorded on the balance sheet. The accounting for finance leases (capital leases under ASC 840) is substantially unchanged. 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 the practical expedients to not separate lease and non-lease components for all of its leases and to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (“short-term leases”). As of January 1, 2019, the date of the Company’s initial application of ASC 842, the Company recognized its lease liabilities measured as the present value of lease payments not yet paid, discounted using the discount rate for the lease as of the date of initial application. The ROU asset for each existing lease as of the date of initial application includes an initial measurement of the lease liability adjusted for any lease payments made to the lessor at or before the date of initial application, accrued lease payments and any lease incentives received or any initial direct costs incurred by the Company as of the date of initial application. As a result of adoption of the ASC 842, the Company recognized additional lease liabilities of $328,978, and ROU assets of $309,687. Leases (effective January 1, 2019) At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term of the contract, and (3) whether the Company has the right to direct the use of the asset. At the inception of a lease, the consideration in the contract is allocated to each lease component based on its relative standalone price to determine the lease payments. Leases entered into prior to January 1, 2019 have been accounted for under ASC 840 and were not reassessed. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: (1) the lease transfers ownership of the asset by the end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the lease term is for a major part of the remaining useful life of the asset or (4) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of the above criteria. For all leases at the lease commencement date, a ROU asset and a lease liability are recognized. The lease liability represents the present value of the lease payments under the lease. Lease liabilities are initially measured at the present value of the lease payments not yet paid, discounted using the discount rate for the lease at lease commencement. The lease liabilities are subsequently measured on an amortized cost basis. The lease liability is adjusted to reflect interest on the liability and the lease payments made during the period. Interest on the lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. The ROU asset represents the right to use the leased asset for the lease term. The ROU asset for each lease initially includes the amount of the initial measurement of the lease liability adjusted for any lease payments made to the lessor at or before the commencement date, accrued lease liabilities and any lease incentives received or any initial direct costs incurred by the Company. The ROU asset of finance leases is subsequently measured at cost, less accumulated amortization and any accumulated impairment losses. The ROU asset of operating leases is subsequently measured from the carrying amount of the lease liability at the end of each reporting period and is therefore equal to the carrying amount of lease liabilities adjusted for (1) unamortized initial direct costs, (2) prepaid/(accrued) lease payments and (3) the unamortized balance of lease incentives received. Leases with a lease term of 12 months or less from the commencement date that do not contain a purchase option are recognized as an expense on a straight-line basis over the lease term. 2. Summary of significant accounting policies (Continued) Significant judgments The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. Under certain of its leases, the Company has a renewal and termination option to lease assets for additional terms between one and five years. The Company applies judgment in evaluating whether it is reasonably certain to exercise the option to renew or terminate the lease. The Company considers all relevant factors that create an economic incentive for it to exercise the renewal or termination option. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within the Company’s control and affects its ability to exercise (or not to exercise) the option to renew or terminate. The company has applied an incremental borrowing rate for the purpose of computing lease liabilities based on the rate prevailing in different geographies. Upon the Company’s adoption of ASC 842, the Company applied an incremental borrowing rate to leases existing as of January 1, 2019, the date of initial application. Impact on consolidated financial statements The following tables summarize the impact of the Company’s adoption of Topic 842 on its consolidated financial statements as of January 1, 2019. As reported December 31, 2018 Adoption of ASC 842 Increase/(Decrease) Balance as of January 1, 2019 Prepaid expenses and other current assets 212,477 (3,529) 1 208,948 Operating lease ROU assets - 273,732 273,732 Other assets: Finance lease ROU assets - 35,955 6 35,955 Other assets 155,159 (5,126) 3 150,033 Property, plant and equipment, net 212,715 (2,343) 2 210,372 Accrued expenses and other current liabilities 571,350 (1,123) 4 570,227 Operating leases liability (current) - 42,200 42,200 Operating leases liability (non-current) - 258,378 258,378 Other liabilities 165,226 (767) 5 164,459 1. Includes prepaid rent amounting to $3,160 and leasehold land amounting to $369, which have been reclassified to operating lease ROU assets and finance lease ROU assets, respectively. 2. Represents vehicles recognized as capital leases under ASC 840 and reclassified as a finance lease ROU asset. 3. Includes prepaid rent amounting to $284 and leasehold land amounting to $4,842, which have been reclassified to operating lease ROU assets and finance lease ROU assets, respectively. 4. Includes accrued lease liabilities of $4,562 adjusted with operating lease ROU assets offset by additional current portion of finance lease liabilities of $3,439 recognized upon the adoption of ASC 842. 5. Includes accrued lease liabilities of $25,728 adjusted with operating lease ROU assets offset by additional finance lease liabilities of $24,961 recognized upon the adoption of ASC 842. 6. The balance is included in “other assets” in the consolidated balance sheet. (h) Recently issued accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for their impact on the Company’s consolidated financial statements. 2. Summary of significant accounting policies (Continued) The Company has adopted the following recently released accounting standards: The Company adopted ASC Topic 606, Revenue from Contracts with Customers, with a date of initial application of January 1, 2018 using the modified retrospective method, and the revenue recognition significant accounting policy is outlined in section (f) above. The Company adopted ASC Topic 842, Leases , In March 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-01, Leases (Topic 842): Codification Improvement. The new standard contains several amendments to clarify the codification more generally and/or to correct unintended application of guidance. The changes in the new standard eliminate the requirement for transition disclosures related to Topic 250-10-50-3. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Early application is permitted. In the quarter ended March 31, 2019, the Company adopted ASU 2019-01 effective January 1, 2019 and no prior periods have been adjusted. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging.” The amendment expands an entity’s ability to hedge accounting to non-financial and financial risk components and requires changes in the fair value of hedging instruments to be presented in the same income statement line as a hedged item. The ASU also amends the presentation and disclosure requirements for the effect of hedge accounting. The ASU must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. The ASU is effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. On January 1, 2019, the Company assessed the impact of this ASU and concluded that it does not have any impact on its consolidated results of operations, cash flows, financial position and disclosures. In addition, the following recently released accounting standards have not yet been adopted by the Company. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of credit losses on financial instruments.” The ASU requires measurement and recognition of expected credit losses for financial assets held by the Company. The ASU is effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures. In August 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. 2. Summary of significant accounting policies (Continued) In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The ASU provides additional guidance on the recognition of credit losses and addresses partial-term fair value hedges, fair value hedge basis adjustments and certain transition requirements, among other things. The ASU also addresses the scope of the guidance on the requirement for remeasurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which foreign currency-denominated equity securities must be remeasured at historical exchange rates. 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 May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments—Credit Losses (Topic 326).” The ASU provides final guidance that allows entities to make an irrevocable one-time election upon adoption of the new credit losses standard to measure financial assets measured at amortized cost (except held-to-maturity securities) using the fair value option. 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 July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections. This ASU amends various SEC paragraphs pursuant to the issuance of SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization. The S-X Rule 3-04 requires the presentation of changes in stockholders’ equity in the form of a reconciliation of the beginning balance to the ending balance for each period for which the statement of income is required to be filed with all the significant reconciling items. The Company has presented the changes in stockholders' equity through a separate statement of changes in equity for each of the current and comparative quarter and year-to-date interim periods beginning on April 1, 2019. The additional elements of the ASU did not have any material impact on the Company's Consolidated Financial Statements. This guidance was effective immediately upon issuance. (i) Reclassification Certain reclassifications have been made in the consolidated financial statements of prior periods to conform to the classification used in the current period. The impact of such reclassifications on the consolidated financial statements is not material. |
Business acquisitions
Business acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | 3. Business acquisitions A. Certain acquisitions (a) riskCanvas Holdings, LLC On January 7, 2019, the Company acquired 100% of the outstanding equity interests in riskCanvas Holdings, LLC, a Delaware limited liability company, for total purchase consideration of $5,747. This amount includes cash consideration of $5,700, net of adjustment for working capital. No portion of the total consideration, payable in cash, was unpaid as of September 30, 2019. This acquisition expands the Company’s services in the areas of financial institution fraud, anti-money laundering and financial transaction surveillance and enhances its consulting capabilities for clients in the financial services industry. In connection with this acquisition, the Company recorded $1,700 in customer-related intangibles, $1,400 in software-related intangibles and $100 in restrictive covenants. Goodwill arising from the acquisition amounted to $2,547, 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 $967 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 $660 and assumed certain liabilities amounting to $707. 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) 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 September 30, 2019. During the quarter ended June 30, 2019, 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. 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 $79,928, which 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 $8,827 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. (c) 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 purchase consideration of $17,938. This amount includes cash consideration of $16,123, net of cash acquired of $1,477, and adjustments for working capital and indebtedness. No portion of the total consideration, payable in cash, was unpaid as of September 30, 2019. During the quarter ended March 31, 2019, 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. 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. 3. Business acquisitions (Continued) Goodwill arising from the acquisition amounted to $11,587, 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. |
Cash and cash equivalents
Cash and cash equivalents | 9 Months Ended |
Sep. 30, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents As of December 31, As of September 30, 2018 2019 Cash and other bank balances 368,396 456,872 Total $ 368,396 $ 456,872 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 Nine months ended September 30, 2019 Opening balance as of January 1 $ 23,660 $ 23,960 Additions charged/reversal released to cost and expense 1,857 7,169 Deductions/effect of exchange rate fluctuations (1,557 ) (1,199 ) Closing balance $ 23,960 $ 29,930 Accounts receivable were $798,144 and $893,162, and reserves for doubtful receivables were $23,960 and $29,930, resulting in net accounts receivable balances of $774,184 and $863,232 as of December 31, 2018 and September 30, 2019, respectively. In addition, accounts receivable due after one year amounting to $4,099 and $6,247 as of December 31, 2018 and September 30, 2019, respectively, are included under “other assets” in the consolidated balance sheets. Accounts receivable from related parties were $99 and $94 as of December 31, 2018 and September 30, 2019, respectively. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 and September 30, 2019: 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, e) 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, f) 1,582 — — 1,582 Total $ 53,900 $ — $ 35,245 $ 18,655 6. Fair value measurements (Continued) As of September 30, 2019 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) $ 28,412 $ — $ 28,412 $ — Deferred compensation plan assets (Note a, e) 9,906 — — 9,906 Total $ 38,318 $ — $ 28,412 $ 9,906 Liabilities Earn-out consideration (Note b, d) $ 477 $ — $ — $ 477 Derivative instruments (Note b, c) 31,053 — 31,053 — Deferred compensation plan liability (Note b, f) 9,642 — — 9,642 Total $ 41,172 $ — $ 31,053 $ 10,119 (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) 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 fair value hierarchy. (f) The fair value of the deferred compensation plan liability is derived based on the fair value of the underlying assets in the insurance portfolio and is therefore classified within level 3 of the fair value hierarchy. 6 . Fair value measurements (Continued) The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the three and nine months ended September 30, 2018 and 2019: Three months ended Nine months ended September 30, September 30, 2018 2019 2018 2019 Opening balance $ 23,609 $ 3,463 $ 24,732 $ 17,073 Earn-out consideration payable in connection with acquisitions — — — — Payments made on earn-out consideration ((Note a) (83 ) (3,000 ) (1,559 ) (17,098 ) Change in fair value of earn-out consideration (Note b) (5,341 ) — (5,974 ) — Others (Note c) 55 14 1,041 502 Closing balance $ 18,240 $ 477 $ 18,240 $ 477 (a) Includes the interest payment on earn-out consideration in excess of the acquisition date fair value, which is included in “cash flows from operating activities” amounting to $680 and $4,308 for three months and nine months ended September 30, 2019, respectively. (b) Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. (c) “ 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 three and nine months ended September 30, 2018 and 2019: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Opening balance $ — $ 9,141 $ — $ 1,613 Additions (net of redemption) 595 579 595 7,564 Change in fair value of deferred compensation plan assets (Note a) 13 186 13 729 Others (Note b) (20 ) — (20 ) — Closing balance $ 588 $ 9,906 $ 588 $ 9,906 (a) Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. (b) “Others” is comprised of certain administrative charges which are reported in “selling, general and administrative expenses” in the consolidated statements of income. 6. Fair value measurements (Continued) 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 three and nine months ended September 30, 2018 and 2019: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Opening balance $ — $ 8,994 $ — 1,582 Additions (net of redemption) 595 587 595 7,564 Change in fair value of deferred compensation plan liabilities (Note a) 3 61 3 496 Closing balance $ 598 $ 9,642 $ 598 9,642 (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 | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | 7. Derivative financial instruments The Company is exposed to the risk of rate fluctuations on its foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows and interest rates. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities, foreign currency denominated forecasted cash flows and interest rate risk. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature during a period of up to 51 months 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, 2018 As of September 30, 2019 As of December 31, 2018 As of September 30, 2019 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,439,000 $ 1,239,000 $ (3,643 ) $ (7,997 ) United States Dollars (sell) Mexican Peso (buy) — 3,000 — 109 United States Dollars (sell) Philippines Peso (buy) 55,800 49,650 (1,510 ) 2 Euro (sell) United States Dollars (buy) 136,412 117,964 4,804 8,237 Pound Sterling (buy) United States Dollars (sell) 128 — (128 ) — Singapore Dollars (buy) United States Dollars (sell) — 9,939 — (159 ) Euro (sell) Romanian Leu (buy) 41,198 36,039 (299 ) (362 ) Japanese Yen (sell) Chinese Renminbi (buy) 40,568 37,024 (2,195 ) (2,127 ) Pound Sterling (sell) United States Dollars (buy) 27,517 13,705 495 1,070 Australian Dollars (sell) United States Dollars (buy) 89,780 50,760 3,548 4,093 United States Dollars (sell) Hungarian Forint (buy) — 6,000 — (103 ) Interest rate swaps (floating to fixed) 507,425 485,060 7,782 (5,404 ) $ 8,854 $ (2,641 ) (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. Notional amounts are denominated in U.S. dollars. (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. 7. Derivative financial instruments (Continued) FASB guidance on derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with the FASB guidance on derivatives and hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, that are denominated in currencies other than the Company’s underlying functional currency. The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2018 As of September 30, 2019 As of December 31, 2018 As of September 30, 2019 Assets Prepaid expenses and other current assets $ 23,038 $ 20,611 $ 11,490 $ 2,169 Other assets $ 9,571 $ 5,629 $ — $ 3 Liabilities Accrued expenses and other current liabilities $ 15,148 $ 8,149 $ 225 $ 965 Other liabilities $ 19,872 $ 21,935 $ — $ 4 Cash flow hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred. In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ (10,277 ) $ 1,824 $ (8,453 ) $ 11,185 $ (6,077 ) $ 5,108 $ 50,529 $ (14,436 ) $ 36,093 $ (2,411 ) $ (5,524 ) $ (7,935 ) Adoption of ASU 2018-02 — — — — — — — 2,265 2,265 — — — Net gains (losses) reclassified into statement of income on completion of hedged transactions 173 47 220 5,915 (1,950 ) 3,965 12,734 (2,329 ) 10,405 15,105 (5,553 ) 9,552 Changes in fair value of effective portion of outstanding derivatives, net (38,242 ) 9,544 (28,698 ) (9,115 ) 1,720 (7,395 ) (86,487 ) 21,163 (65,324 ) 13,671 (2,436 ) 11,235 Gain (loss) on cash flow hedging derivatives, net (38,415 ) 9,497 (28,918 ) (15,030 ) 3,670 (11,360 ) (99,221 ) 23,492 (75,729 ) (1,434 ) 3,117 1,683 Closing balance $ (48,692 ) $ 11,321 $ (37,371 ) $ (3,845 ) $ (2,407 ) $ (6,252 ) $ (48,692 ) $ 11,321 $ (37,371 ) $ (3,845 ) $ (2,407 ) $ (6,252 ) 7. Derivative financial instruments (Continued) The Company’s gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Amount of Gain (Loss) reclassified recognized in OCI on Location of Gain (Loss) from OCI into Statement of Income Derivatives in Derivatives (Effective Portion) reclassified (Effective Portion) Cash Flow Three months ended Nine months ended from OCI into Three months ended Nine months ended Hedging September 30, September 30, Statement of Income September 30, September 30, Relationships 2018 2019 2018 2019 (Effective Portion) 2018 2019 2018 2019 Forward foreign exchange contracts $ (38,960 ) $ (7,261 ) $ (91,180 ) $ 22,964 Revenue $ 1,002 $ 1,919 $ (1,767 ) $ 4,441 Interest rate swaps 718 (1,854 ) 4,693 (9,293 ) Cost of revenue (1,510 ) 2,294 9,438 5,274 Selling, general and administrative expenses (382 ) $ 595 2,543 1,497 Interest expense 1,063 1,107 2,520 3,893 $ (38,242 ) $ (9,115 ) $ (86,487 ) $ 13,671 $ 173 $ 5,915 $ 12,734 $ 15,105 There are no gains (losses) recognized in income on the ineffective portion of derivatives and excluded from effectiveness testing Non-designated hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended September 30, Nine months ended September 30, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2018 2019 2018 2019 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ (6,450 ) $ (3,209 ) $ (23,279 ) $ 4,203 $ (6,450 ) $ (3,209 ) $ (23,279 ) $ 4,203 (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 | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid expenses and other current assets | 8. Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: As of December 31, As of September 30, 2018 2019 Advance income and non-income taxes $ 58,701 $ 103,239 Contract asset (Note 19) 22,472 23,084 Prepaid expenses 25,996 28,509 Derivative instruments 34,528 22,780 Employee advances 3,772 4,093 Deposits 2,758 1,555 Advances to suppliers 1,998 1,454 Others 62,252 52,047 $ 212,477 $ 236,761 |
Property, plant and equipment,
Property, plant and equipment, net | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | 9. Property, plant and equipment, net The following table provides the gross and net amount of property, plant and equipment: As of December 31, As of September 30, 2018 2019 Property, plant and equipment, gross $ 660,754 $ 695,136 Less: Accumulated depreciation and amortization (448,039 ) (478,751 ) Property, plant and equipment, net $ 212,715 $ 216,385 Depreciation expense on property, plant and equipment, including computer software, for the nine months ended September 30, 2018 and 2019 was $45,788 and $49,799, respectively, and for the three months ended September 30, 2018 and 2019 was $15,579 and $17,106, 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 The Company recorded a write-down to computer software during the nine months ended September 30, 2018 as described in Note 10. |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | 10. Goodwill and intangible assets The following table presents the changes in goodwill: As of December 31, As of September 30, 2018 2019 Opening balance $ 1,337,122 $ 1,393,832 Goodwill relating to acquisitions consummated during the period 91,936 2,547 Impact of measurement period adjustments 816 (988 ) Effect of exchange rate fluctuations (36,042 ) (5,904 ) Closing balance $ 1,393,832 $ 1,389,487 The total amount of goodwill deductible for tax purposes was $187,546 and $190,781 as of December 31, 2018 and September 30, 2019, respectively. The Company’s intangible assets are as follows: As of December 31, 2018 As of September 30,2019 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 368,558 $ 306,582 $ 61,976 $ 366,819 $ 320,866 $ 45,953 Marketing-related intangible assets 54,714 46,591 8,123 55,065 49,060 6,005 Technology-related intangible assets 76,790 33,976 42,814 138,825 54,408 84,417 Other intangible assets 1,204 1,077 127 1,180 1,124 56 Intangible assets under development 64,047 - 64,047 29,651 3,511 26,140 $ 565,313 $ 388,226 $ 177,087 $ 591,540 $ 428,969 $ 162,571 Amortization expenses for intangible assets acquired as a part of business combination and disclosed in the consolidated statements of income under amortization of acquired intangible assets for the nine months ended September 30, 2018 and 2019 were $29,134 and $23,565, respectively, and for the three months ended September 30, 2018 and 2019 were $9,372 and $6,960, respectively. Amortization expenses for internally-developed and other intangible assets disclosed in the consolidated statements of income under cost of revenue and selling, general and administrative expenses for the nine months ended September 30, 2018, and 2019 were $1,389 and $13,244, respectively, and for the three months ended September 30, 2018 and 2019 were $499 and $4,990, respectively. 10. Goodwill and intangible assets (Continued) 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 During the nine months ended September 30, 2018, the Company tested for recoverability a group of assets comprised of computer software and a technology-related intangible asset as a result of the termination of related client contracts. Additionally, during the nine months ended September 30, 2019, the Company tested for recoverability certain other technology-related intangible assets as a result of changes in the Company’s investment strategy. Based on the results of this testing, the Company determined that the carrying values of the assets tested were not recoverable, and the Company recorded complete write-downs of the carrying values of these assets amounting to $1,538 and $3,511 for the nine months ended September 30, 2018 and September 30, 2019, respectively. These write-downs have been recorded in “other operating (income) expense, net” in the consolidated statement of income. The impairment related to computer software and technology-related intangible assets for the nine months ended September 30, 2018 amounted to $1,200 and $338, respectively, and for the nine months ended September 30, 2019 amounted to $0 and $3,511, respectively. Impairment for the three months ended September 30, 2018 and 2019 related to computer software was $688 and $0, respectively, and has been recorded in “other operating (income) expense, net.” |
Short-term borrowings
Short-term borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | 11. Short-term borrowings The Company has the following borrowing facilities: (a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2018 and September 30, 2019, the limits available were $14,281 and $14,245, respectively, of which $7,389 and $7,510 , (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 12. 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 credit facility bore interest at a rate equal to the London Inter-bank Offered Rate, or LIBOR, plus a margin of 1.375% as of December 31, 2018 and |
Long-term debt
Long-term debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | 12. 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 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 amended 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 amended 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 is being amortized over the term of the amended facility, which will expire on August 8, 2023. 12. Long-term debt (Continued) Borrowings under the amended credit 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 nine months ended September 30, 2019, the Company was in compliance with the financial covenants. As of December 31, 2018 and September 30, 2019, the amount outstanding under the term loan, net of debt amortization expense of $2,158 and $1,769, was $660,841 and $635,731, respectively. As of December 31, 2018 and September 30, 2019, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.375% per annum. Indebtedness under the amended credit facility is unsecured. The amount outstanding on the term loan as of September 30, 2019 requires quarterly payments of $8,500, and the balance of the loan is due and payable upon the maturity of the term loan on August 8, 2023 . The maturity profile of the term loan outstanding as of September 30, 2019, net of debt amortization expense, is as follows: Year ended Amount 2019 8,372 2020 33,509 2021 33,537 2022 33,564 2023 526,749 Total $ 635,731 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, 2018 and September 30, 2019, the amount outstanding under the notes, net of debt amortization expense of $1,713 and $1,319, was $348,287 and $348,681, 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 nine months ended September 30, 2019, 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. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Payables And Accruals [Abstract] | |
Accrued expenses and other current liabilities | 13. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: As of December 31, As of September 30, 2018 2019 Accrued expenses $ 179,843 $ 181,954 Accrued employee cost 210,251 233,796 Earn-out consideration 16,875 369 Statutory liabilities 42,728 56,161 Retirement benefits 22,921 26,207 Derivative instruments 15,373 9,114 Contract liabilities (Note 19) 64,744 93,414 Finance lease liability — 9,323 Other liabilities 16,807 19,813 Capital lease obligations 1,808 — $ 571,350 $ 630,151 |
Other liabilities
Other liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 14. Other liabilities Other liabilities consist of the following: As of December 31, As of September 30, 2018 2019 Accrued employee cost $ 6,341 $ 8,770 Earn-out consideration 198 108 Retirement benefits 50,370 56,689 Derivative instruments 19,872 21,939 Contract liabilities (Note 19) 53,796 68,340 Finance lease liability — 20,962 Others 32,935 17,305 Capital lease obligations 1,714 — $ 165,226 $ 194,113 |
Employee benefit plans
Employee benefit plans | 9 Months Ended |
Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plans | 15. Employee benefit plans The Company has employee benefit plans in the form of certain statutory and other programs covering its employees. Defined benefit plans In accordance with Indian law, the Company maintains a defined benefit retirement plan covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines and Japan sponsor defined benefit retirement programs. 15. Employee benefit plans (Continued) Net defined benefit plan costs for the three and nine months ended September 30, 2018 and 2019 include the following components: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Service costs $ 1,762 $ 2,108 $ 5,815 $ 6,439 Interest costs 900 1,138 2,834 3,479 Amortization of actuarial loss 344 290 899 887 Expected return on plan assets (689 ) (643 ) (2,169 ) (1,967 ) Net defined benefit plan costs $ 2,317 $ 2,893 $ 7,379 $ 8,838 Defined contribution plans During the three and nine months ended September 30, 2018 and 2019, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 India $ 6,269 $ 7,805 $ 18,274 $ 21,757 U.S. 2,463 4,655 9,421 13,676 U.K. 2,033 2,634 7,357 9,290 China 4,388 4,693 13,190 14,111 Other regions 980 1,388 3,312 4,244 Total $ 16,133 $ 21,175 $ 51,554 $ 63,078 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. 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 are credited or debited with notional investment gains and losses equal to the performance 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. 15. Employee benefit plans (Continued) The liability for the deferred compensation plan was $1,582 and $9,642 as of December 31, 2018 and September 30, 2019, 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 $1,613 and $9,906 as of December 31, 2018 and September 30, 2019, respectively. The cash surrender value of these insurance policies is included in “other assets” in the consolidated balance sheets. The change in the fair value of Plan assets during the nine months ended September 30, 2018 and 2019 was $13 and $729, respectively, and for the three months ended September 30, 2018 and 2019 was $13 and $186, respectively, which is included in “other income (expense), net” in the consolidated statements of income. The change in the fair value of deferred compensation liabilities during the nine months ended September 30, 2018 and 2019 was $3 and $496, respectively, and for the three months ended September 30, 2018 and 2019 was $3 and $61, respectively, which is included in “selling, general and administrative expenses.” |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | 16. Stock-based compensation The Company has granted stock-based awards 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 awards forfeited, expired, terminated or cancelled under any of the Company’s predecessor plans were added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares. On May 9, 2017, the Company’s shareholders approved the adoption of the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”), pursuant to which 15,000,000 Company common shares are available for issuance. The 2017 Omnibus Plan was amended and restated on April 5, 2019 to increase the number of common shares authorized for issuance by 8,000,000 shares to 23,000,000 shares. No grants may be made under the 2007 Omnibus Plan after the date of adoption of the 2017 Omnibus Plan. Grants that were outstanding under the 2007 Omnibus Plan as of the date of Company’s adoption of the 2017 Omnibus Plan remain subject to the terms of the 2007 Omnibus Plan. Stock-based compensation costs relating to the foregoing plans during the nine months ended September 30, 2018 and 2019 were $31,567 and $60,525, respectively, and for the three months ended September 30, 2018 and 2019 were $13,224 and $21,042, respectively. These costs have been allocated to cost of revenue and selling, general, and administrative expenses. Options All options granted under the 2007 and 2017 Omnibus Plans are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. Compensation cost is determined at the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model. 16. Stock-based compensation (Continued) The following table shows the significant assumptions used in determining the fair value of options granted in the nine months ended September 30, 2018 and September 30, 2019. Nine months ended September 30, 2018 Nine months ended September 30, 2019 Dividend yield 0.95% - 1.01% 0.82% - 1.08% Expected life (in months) 84 84 Risk-free rate of interest 2.67%-2.93% 1.56% - 2.63% Volatility 22.55%-22.73% 21.0% - 21.38% A summary of option activity during the nine months ended September 30, 2019 is set out below: Nine months ended September 30, 2019 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2019 7,261,675 $ 23.61 6.4 $ — Granted 1,881,068 28.50 Forfeited (85,000) 29.91 Expired — — Exercised (622,494) 15.27 13,858 Outstanding as of September 30, 2019 8,435,249 $ 25.25 6.7 $ 114,171 Vested as of September 30, 2019 and expected to vest thereafter (Note a) 8,046,532 $ 25.08 6.7 $ 110,206 Vested and exercisable as of September 30, 2019 3,186,076 $ 19.08 3.6 $ 62,668 Weighted average grant date fair value of grants during the period $ 6.98 (a) Options expected to vest reflect the application of an estimated forfeiture rate. As of September 30, 2019, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $26,518, which will be recognized over the weighted average remaining requisite vesting period of 3.7 years. Restricted share units The Company has granted restricted share units, or RSUs, under the 2007 and 2017 Omnibus Plans. Each RSU represents the right to receive one common share. The fair value of each RSU is the market price of one common share of the Company on the date of the grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSU activity during the nine months ended September 30, 2019 is set out below: Nine months ended September 30, 2019 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2019 1,528,999 $ 27.45 Granted 218,965 34.34 Vested (Note a) (611,871 ) 26.38 Forfeited (65,067 ) 30.51 Outstanding as of September 30, 2019 1,071,026 $ 29.29 Expected to vest (Note b) 983,141 (a) (b) The number of RSUs expected to vest reflects the application of an estimated forfeiture rate. 16. Stock-based compensation (Continued) As of September 30, 2019, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $18,419, which will be recognized over the weighted average remaining requisite vesting period of 1.8 years. Performance units The Company also grants stock-based awards in the form of performance units, or PUs, and has granted PUs under both the 2007 and 2017 Omnibus Plans. Each PU represents the right to receive one common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plans are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. During the performance period, the Company’s estimate of the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the nine months ended September 30, 2019 is set out below: Nine months ended September 30, 2019 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2019 3,712,402 $ 28.40 3,712,402 Granted 1,577,530 34.68 3,155,060 Vested Forfeited (183,696 ) 28.74 (200,635 ) Adjustment upon final determination of level of performance goal achievement (Note a) (13,996 ) 30.68 Adjustment upon final determination of level of performance goal achievement (Note a) (13,996 ) Outstanding as of September 30, 2019 5,092,239 $ 30.33 6,652,830 Expected to vest (Note b) 5,368,588 ( a ) Represents an adjustment made in March 2019 to the number of shares subject to the PUs granted in 2018 upon certification of the level of achievement of the performance targets underlying such awards. ( b ) The number of PUs expected to vest reflects the application of an estimated forfeiture rate and the expected achievement of higher-than-target performance for the PUs granted during the year. As of September 30, 2019, the total remaining unrecognized stock-based compensation cost related to PUs amounted to $66,249, 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 may 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. 16. Stock-based compensation (Continued) During the nine months ended September 30, 2018 and 2019, 181,643 and 195,221 common shares, respectively, were issued under the ESPP. The ESPP is considered compensatory under the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP during the nine months ended September 30, 2018 and 2019 was $591 and $781, respectively, and for the three months ended September 30, 2018 and 2019 was $210 and $278, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital stock
Capital stock | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Capital stock | 17. Capital stock Share repurchases The Board of Directors of the Company (the “Board”) has authorized repurchases of up to $1,250,000 under the Company’s existing share repurchase program. Since the Company’s share repurchase program was initially authorized in 2015, the Company has repurchased shares amounting to approximately $970,000, representing 37,239,353 common shares, at an average price of $26.04 per share. This number includes shares repurchased under the Company’s 2017 accelerated share repurchase program. During the nine months ended September 30, 2018 and September 30, 2019, the Company repurchased 4,114,882 and 608,285 of its common shares, respectively, Dividend On February 12, 2018, the Company announced that its Board 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 and September 19, 2018, the Company paid dividends of $0.075 per share, amounting to $14,408, $14,240 and $14,253 in the aggregate, to shareholders of record as of March 9, 2018, June 8, 2018 and September 10, 2018, respectively. On February 7, 2019, the Company announced that its Board had approved a 13% increase in its quarterly cash dividend to $0.085 per share, up from $0.075 per share in 2018, representing a planned annual dividend of $0.34 per common share, up from $0.30 per share in 2018, payable to holders of the Company’s common shares. On March 20, 2019, June 21, 2019 and September 20, 2019, the Company paid dividends of $0.085 per share, amounting to $16,119, $16,188 and $16,208 in the aggregate, to shareholders of record as of March 8, 2019, June 12, 2019 and September 11, 2019, respectively. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | 18. Earnings per share The Company calculates earnings per share in accordance with FASB guidance on earnings per share. Basic and diluted earnings per common share give effect to the change in the number of Company common shares outstanding. The calculation of basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the respective periods. Potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, performance units and common shares to be issued under the employee stock purchase plan, have been included in the computation of diluted net earnings per share and the weighted average shares outstanding, except where the result would be anti-dilutive. The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 2,051,062 and 2,375,425 for the nine months ended September 30, 2018 and 2019, respectively, and 3,222,303 and 60,194 for the three months ended September 30, 2018 and 2019, respectively. Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Net income available to Genpact Limited common shareholders $ 73,603 $ 88,120 $ 202,872 $ 222,683 Weighted average number of common shares used in computing basic earnings per common share 190,024,924 190,599,049 190,991,405 190,071,418 Dilutive effect of stock-based awards 3,090,845 5,291,792 3,265,366 4,612,281 Weighted average number of common shares used in computing dilutive earnings per common share 193,115,769 195,890,841 194,256,771 194,683,699 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.39 $ 0.46 $ 1.06 $ 1.17 Diluted $ 0.38 $ 0.45 $ 1.04 $ 1.14 |
Net revenues
Net revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenues [Abstract] | |
Net revenues | 19. Net revenues Disaggregation of revenue In the following tables, the Company’s revenue is disaggregated by customer classification, service type, major industrial vertical and location of service delivery center. Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 GE $ 64,507 $ 121,096 $ 188,000 $ 348,742 Global Clients 683,471 767,703 1,977,451 2,231,062 Total net revenues $ 747,978 $ 888,799 $ 2,165,451 $ 2,579,804 Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Business process outsourcing $ 622,940 $ 749,322 $ 1,802,912 $ 2,173,562 Information technology services 125,038 139,477 362,539 406,242 Total net revenues $ 747,978 $ 888,799 $ 2,165,451 $ 2,579,804 19. Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Banking, financial services and insurance $ 258,372 $ 279,445 $ 803,771 $ 792,388 Consumer goods, retail, life sciences and healthcare 230,177 272,029 648,705 801,440 High tech, manufacturing and services 259,429 337,325 712,975 985,976 Total net revenues $ 747,978 $ 888,799 $ 2,165,451 $ 2,579,804 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 also consists of net revenues for services performed at clients’ premises outside of India by business units or personnel normally based in India. Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 India $ 408,169 $ 472,896 $ 1,262,225 $ 1,395,989 Asia, other than India 83,844 86,009 241,535 261,462 North and Latin America 152,121 233,062 456,241 622,873 Europe 103,844 96,832 205,450 299,480 Total net revenues $ 747,978 $ 888,799 $ 2,165,451 $ 2,579,804 Contract balances Accounts receivable include amounts for services that the Company has performed but for which payment has not been received. The Company typically follows a 30-day billing cycle and, as such, at any point in time may have accrued up to 30 days of revenues that have not been billed. The Company has determined that in instances where the timing of revenue recognition differs from the timing of invoicing, the related contracts generally do not include a significant financing component. Refer to Note 5 for details on the Company’s accounts receivable and reserve for doubtful receivables. The following table provides details of the Company’s contract liabilities: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Particulars Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Opening balance $ 30,341 $ 98,962 $ 39,110 $ 104,276 $ 26,266 $ 101,785 $ 22,892 $ 95,648 Impact of opening balance offset with contract asset — $ 23,735 7,943 $ 43,648 — $ 21,348 3,821 $ 25,604 Gross opening balance $ 30,341 $ 122,697 $ 47,053 $ 147,924 $ 26,266 $ 123,133 $ 26,713 $ 121,252 Additions 9,152 16,881 25,455 31,226 25,888 49,592 67,281 85,203 Effect of business combination 273 75 — — 273 75 444 — Revenue recognized (11,934 ) (21,143 ) (20,425 ) (15,832 ) (23,837 ) (53,499 ) (39,955 ) (43,159 ) Currency translation adjustments (147 ) (383 ) (452 ) (397 ) (905 ) (1,174 ) (450 ) (375 ) Others — — - — — — (2,402 ) — Gross closing balance $ 27,685 $ 118,127 $ 51,631 $ 162,921 $ 27,685 $ 118,127 $ 51,631 $ 162,921 Impact of closing balance offset with contract asset — (22,586 ) (8,286 ) (44,512 ) — (22,586 ) (8,286 ) (44,512 ) Closing balance (Note a) $ 27,685 $ 95,541 $ 43,345 $ 118,409 $ 27,685 $ 95,541 $ 43,345 $ 118,409 (a) Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet. 19. The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of September 30, 2019: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 161,754 93,414 51,454 14,645 2,241 The following table provides details of the Company’s contract assets: Particulars Three months ended September 30, Nine months ended September 30, Particulars 2018 2019 2018 2019 Opening balance $ 41,671 $ 48,593 $ 43,366 $ 45,035 Impact of opening balance offset with contract liability 23,735 51,591 21,348 29,425 Gross opening balance $ 65,406 $ 100,184 $ 64,714 $ 74,460 Additions 9,710 9,496 29,228 58,594 Reduction in revenue recognized (10,706 ) (9,899 ) (29,532 ) (33,273 ) Gross closing balance $ 64,410 $ 99,781 $ 64,410 $ 99,781 Impact of closing balance offset with contract liability (22,586 ) (52,798 ) (22,586 ) (52,798 ) Closing balance (Note b) $ 41,824 $ 46,983 $ 41,824 $ 46,983 (b) Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. The following table provides details of the Company’s contract cost assets: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Particulars Sales incentive programs Transition activities Sales incentive programs Transition activities Sales incentive programs Transition activities Sales incentive programs Transition activities Opening balance $ 24,808 $ 137,370 $ 35,593 $ 156,585 $ 23,227 $ 139,284 $ 25,891 $ 134,302 Closing balance 26,459 133,651 35,146 171,357 26,459 133,651 35,146 171,357 Amortization 3,666 19,974 4,496 15,106 10,509 54,874 13,044 41,701 |
Cost of revenue
Cost of revenue | 9 Months Ended |
Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | 20. Cost of revenue Cost of revenue consists of the following: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Personnel expenses $ 326,717 $ 422,508 $ 959,648 $ 1,224,610 Operational expenses 141,236 129,294 389,702 376,878 Depreciation and amortization 13,459 21,857 39,284 62,552 $ 481,412 $ 573,659 $ 1,388,634 $ 1,664,040 |
Selling, general and administra
Selling, general and administrative expenses | 9 Months Ended |
Sep. 30, 2019 | |
Selling General And Administrative Expenses [Abstract] | |
Selling, general and administrative expenses | 21. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Personnel expenses $ 125,838 $ 147,037 $ 380,532 $ 438,427 Operational expenses 39,551 44,965 126,860 136,461 Depreciation and amortization 2,621 2,535 7,893 7,363 $ 168,010 $ 194,537 $ 515,285 $ 582,251 |
Other operating (income) expens
Other operating (income) expense, net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Other operating (income) expense, net | 22. Other operating (income) expense, net Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Other operating (income) expense $ (191 ) $ 59 $ (477 ) $ (3,421 ) Provision for impairment of intangible assets and property, plant and equipment 688 — 1,538 3,511 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) (5,341 ) — $ (5,974 ) $ — Other operating (income) expense, net $ (4,844 ) $ 59 $ (4,913 ) $ 90 |
Interest income (expense), net
Interest income (expense), net | 9 Months Ended |
Sep. 30, 2019 | |
Banking And Thrift Interest [Abstract] | |
Interest income (expense), net | 23. Interest income (expense), net Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Interest income $ 3,328 $ 1,968 $ 8,472 $ 4,758 Interest expense (12,467 ) (12,189 ) (36,118 ) (38,245 ) Interest income (expense), net $ (9,139 ) $ (10,221 ) $ (27,646 ) $ (33,487 ) |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 24. Income taxes The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. The Company’s effective tax rate (“ETR”) was 21.9% for the nine months ended September 30, 2019, up from 20.8% for the nine months ended September 30, 2018. The increase in the Company’s ETR is primarily due to As of December 31, 2018, the Company had unrecognized tax benefits amounting to $26,722, including an amount of $25,485, which, if recognized, would impact the Company’s ETR. The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions for the nine months ended September 30, 2019: 2019 Opening balance at January 1 $ 26,722 Decrease related to prior year tax positions (56 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (217 ) Increase related to current year tax positions, including recorded in acquisition accounting 225 Effect of exchange rate changes (163 ) Closing balance at September 30 $ 26,511 The Company’s unrecognized tax benefits as of September 30, 2019 include an amount of $25,273, which, if recognized, would impact the Company’s ETR. As of December 31, 2018 and September 30, 2019 the Company had accrued approximately $5,081 and $5,600, respectively, in interest relating to unrecognized tax benefits. During the year ended December 31, 2018 and the nine months ended September 30, 2019, the Company recognized approximately $467 and $519, respectively, excluding the impact of exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2018 and September 30, 2019, the Company had accrued approximately $995 and $914, respectively, for penalties. |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related party transactions | 25. Related party transactions The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates. The Company’s related party transactions can be categorized as follows: Revenue from services During the nine months ended September 30 2018 and 2019, the Company recognized net revenues of $552 and $478, respectively, and for the three months ended September 30, 2018 and 2019, Cost of revenue The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, which are included in cost of revenue. For the nine months ended September 30, 2018 and 2019, cost of revenue includes an amount of $863 and $521, respectively, and for the three months ended September 30, 2018 and 2019, cost of revenue includes an amount of $414 and $185, respectively, Selling, general and administrative expenses The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the nine months ended September 30, 2018 and 2019, selling, general and administrative expenses include an amount of $158 and $101, respectively, and for the three months ended September 30, 2018 and 2019, selling, general and administrative expenses include an amount of $68 and $47, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates. During the three and nine months ended September 30, 2018 and 2019, the Company engaged a significant shareholder to provide certain services , |
Other Income (expense), net
Other Income (expense), net | 9 Months Ended |
Sep. 30, 2019 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | 26. Other Income (expense), net Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Government incentives $ 5,154 $ — $ 30,850 $ 3,976 Other income/(expense) 231 704 (167 ) 1,091 Other Income (expense), net $ 5,385 $ 704 $ 30,683 $ 5,067 |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 27. Commitments and contingencies Capital commitments As of December 31, 2018 and September 30, 2019, the Company has committed to spend $4,859 and $8,246, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases. Bank guarantees The Company has outstanding bank guarantees amounting to $9,487 and $9,609 as of December 31, 2018 and September 30, 2019, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purpose of maintaining a bonded warehouse. These guarantees may be revoked if the government agencies suffer any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees. Other commitments Certain units of our Indian subsidiaries are established as Software Technology Parks of India units or Special Economic Zone (“SEZ”) units under the relevant regulations issued by the Government of India. These units are exempt from customs and other duties on imported and indigenous capital goods, stores and spares. SEZ units are also exempt from the goods and services tax that was introduced in India in 2017. The Company has undertaken to pay taxes and duties, if any, in respect of capital goods, stores, spares and services consumed duty-free, in the event that certain terms and conditions are not fulfilled. Contingency In February 2019, there was a judicial pronouncement in India with respect to defined contribution benefit payments interpreting certain statutory defined contribution obligations of employees and employers. It is not currently clear whether the interpretation set out in the pronouncement has retrospective application. If applied retrospectively, the interpretation would result in an increase in contributions payable by the Company for past periods for certain of its India-based employees. There are numerous interpretative challenges concerning the retrospective application of the judgment. Due to such challenges and a lack of interpretive guidance, and based on legal advice the Company has obtained on the matter, it is currently impracticable to reliably estimate the timing and amount of any payments the Company may be required to make. Accordingly, the Company plans to obtain further clarity and will evaluate the amount of a potential provision, if any. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 28. Leases The Company has leased buildings, vehicles, furniture and fixtures, leased lines, computer equipment and servers, and plants, machinery and equipment from various lessors. Certain lease agreements include options to terminate or extend the leases for up to 5 years. The lease agreements do not contain any material residual value guarantees or material restrictive covenants . The components of lease cost for operating and finance leases for the three and nine months ended September 30, 2019 are summarized below : Finance lease cost Three months ended September 30, 2019 Nine months ended September 30, 2019 Amortization of ROU assets (Note a) 2,326 6,905 Interest on lease liabilities (Note b) 698 2,193 Operating lease cost (Note c) 18,510 50,538 Short-term lease cost (Note c) 128 356 Variable lease cost (Note c) 1,113 2,992 Total lease cost $ 22,775 $ 62,984 a) Included in “depreciation and amortization” in consolidated statements of income. b) Included in “interest income (expense), net” in consolidated statements of income. c) Included in “cost of revenue” and “selling, general and administrative expenses” in consolidated statements of income. ROU assets relating to finance leases of $34,137 as of September 30, 2019 are included in “other assets.” Other information Weighted-average remaining lease term—finance leases 4.18 years Weighted-average remaining lease term—operating leases 6.99 years Weighted-average discount rate—finance leases 9.23% Weighted-average discount rate—operating leases 6.93% Three months ended September 30, 2019 Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 698 $ 2,182 Operating cash flows from operating leases $ 18,321 $ 52,807 Financing cash flows from finance leases $ 2,154 $ 6,256 28. Leases (Continued) The following table reconciles the undiscounted cash flows for the operating and finance leases at September 30, 2019 to the operating and finance lease liabilities recorded on the balance sheet: Period range Finance lease Operating lease 2019 2,761 16,940 2020 10,451 69,166 2021 8,225 64,634 2022 5,457 57,066 2023 4,090 51,354 2024 3,548 42,851 Thereafter 1,572 119,458 Total lease payments 36,104 421,469 Less: Imputed interest 5,819 92,972 Total lease liabilities $ 30,285 $ 328,497 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 29. Subsequent Events Acquisition On October 15, 2019, the Company signed a definitive agreement to acquire substantially all the outstanding equity interests in Rightpoint Consulting LLC (“Rightpoint”), an Illinois limited liability company. Dividend On October 17, 2019, the Company announced that its Board has declared a dividend for the third quarter of 2019 of $0.085 per common share, which is payable on December 18, 2019 to shareholders of record as of the close of business on December 9, 2019. The declaration of any future dividends will be at the discretion of the Board of Directors. |
Guarantor financial information
Guarantor financial information | 9 Months Ended |
Sep. 30, 2019 | |
Guarantor Financial Information [Abstract] | |
Guarantor financial information | 30. Guarantor financial information In March 2017, the Issuer issued $350,000 aggregate principal amount of 3.70% senior notes in a private offering. See Note 12 for additional information. Condensed Consolidating Balance Sheet As of September 30, 2019 Issuer/ Subsidiary Guarantor/Parent Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 14,292 $ 5,068 $ 437,512 $ — $ 456,872 Intercompany Accounts receivable, net 91,478 — — (91,478 ) — Accounts receivable, net — — 863,232 — 863,232 Intercompany loans 664,702 10,900 2,034,993 (2,710,596 ) — Intercompany other receivable 40,040 131,757 141,369 (313,166 ) — Prepaid expenses and other current assets 2,618 1,602 232,541 — 236,761 Total current assets $ 813,130 $ 149,327 $ 3,709,647 $ (3,115,239 ) $ 1,556,865 Property, plant and equipment, net 203 — 216,182 — 216,385 Operating lease right-of-use assets — — 299,868 — 299,868 Intercompany loans 100,000 — 500,000 (600,000 ) — Deferred tax assets — — 80,583 — 80,583 Investment in subsidiaries 563,063 3,279,928 623,954 (4,466,945 ) — Investment in equity affiliates — — — — — Intercompany Investment in debentures 480,023 118,393 — (598,416 ) — Intercompany other receivable — 57,861 — (57,861 ) — Intangible assets, net — — 162,571 — 162,571 Goodwill — — 1,389,487 — 1,389,487 Contract cost assets — — 206,503 — 206,503 Other assets 435 — 185,064 — 185,499 Total assets $ 1,956,854 $ 3,605,510 $ 7,373,859 $ (8,838,462 ) $ 4,097,761 Liabilities and equity Current liabilities Short-term borrowings $ 75,000 $ — $ 170,000 $ — $ 245,000 Current portion of Intercompany loans 229,457 1,965,037 516,102 (2,710,596 ) — Current portion of long-term debt 4,972 — 28,532 — 33,504 Accounts payable 176 13 20,765 — 20,954 Intercompany accounts payable — — 91,478 (91,478 ) — Income taxes payable — — 84,537 — 84,537 Intercompany other payable 54,260 94,452 164,454 (313,166 ) — Accrued expenses and other current liabilities 9,046 5,820 615,286 — 630,151 Operating leases liability — — 50,048 — 50,048 Total current liabilities $ 372,910 $ 2,065,321 $ 1,741,202 $ (3,115,239 ) $ 1,064,194 Long-term debt, less current portion 437,326 — 513,582 — 950,908 Operating leases liability — — 278,449 — 278,449 Deferred tax liabilities — — 4,413 — 4,413 Intercompany other payable — — 57,861 (57,861 ) — Intercompany loans and debenture, less current portion 500,000 — 698,416 (1,198,416 ) — Other liabilities 109 136 193,869 — 194,113 Total liabilities $ 1,310,345 $ 2,065,457 $ 3,487,792 $ (4,371,517 ) $ 2,492,077 Shareholders' equity 646,509 1,540,053 3,886,067 (4,466,945 ) 1,605,684 Commitments and contingencies — — — — — Total liabilities and equity $ 1,956,854 $ 3,605,510 $ 7,373,859 $ (8,838,462 ) $ 4,097,761 30. Guarantor financial information (continued) Condensed Consolidating Balance Sheet As of December 31, 2018 Issuer/ Subsidiary Guarantor/Parent Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 Intercompany accounts receivable, 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 Intercompany investment in debentures 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 Current portion of 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 ) — Intercompany loans and debenture, less current portion 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 Shareholders' equity 578,319 1,338,554 3,666,519 (4,179,210 ) 1,404,182 Commitments and contingencies — — — — — Total liabilities and equity $ 1,807,442 $ 3,264,895 $ 6,519,787 $ (8,062,679 ) $ 3,529,445 30. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Three months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 18,089 $ — $ 888,799 $ (18,089 ) $ 888,799 Cost of revenue — — 573,659 — 573,659 Gross profit $ 18,089 $ — $ 315,140 $ (18,089 ) $ 315,140 Operating expenses: Selling, general and administrative expenses 2,357 7,915 202,354 (18,089 ) 194,537 Amortization of acquired intangible assets — — 6,960 — 6,960 Other operating (income) expense, net — — 59 — 59 Income (loss) from operations $ 15,731 $ (7,915 ) $ 105,767 — $ 113,584 Foreign exchange gains (losses), net 91 103 6,533 — 6,727 Interest income (expense), net (5,275 ) — (4,946 ) — (10,221 ) Intercompany interest income (expense), net 21,427 (4,048 ) (17,379 ) — — Other income (expense), net — — 704 — 704 Income (loss) before equity-method investment activity, net and income tax expense $ 31,974 $ (11,860 ) $ 90,680 $ — $ 110,794 Gain (loss) on equity-method investment activity, net 10,957 99,980 30,311 (141,253 ) (5 ) Income before income tax expense $ 42,932 $ 88,120 $ 120,990 $ (141,253 ) $ 110,789 Income tax expense 1,665 — 21,004 — 22,669 Net income $ 41,267 $ 88,120 $ 99,986 $ (141,253 ) $ 88,120 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 41,267 $ 88,120 $ 99,986 $ (141,253 ) $ 88,120 Condensed Consolidating Statement of Income (Loss) Nine months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 44,112 $ — $ 2,579,804 $ (44,112 ) $ 2,579,804 Cost of revenue — — 1,664,040 — 1,664,040 Gross profit $ 44,112 $ — $ 915,764 $ (44,112 ) $ 915,764 Operating expenses: Selling, general and administrative expenses 7,746 22,690 595,927 (44,112 ) 582,251 Amortization of acquired intangible assets — — 23,565 — 23,565 Other operating (income) expense, net — — 90 — 90 Income (loss) from operations $ 36,366 $ (22,690 ) $ 296,181 $ — $ 309,858 Foreign exchange gains (losses), net 593 70 2,983 — 3,646 Interest income (expense), net (16,090 ) — (17,397 ) — (33,487 ) Intercompany interest income (expense), net 57,869 (13,384 ) (44,485 ) — — Other income (expense), net 30 0 5,037 — 5,067 Income (loss) before equity-method investment activity, net and income tax expense $ 78,769 $ (36,003 ) $ 242,319 $ — $ 285,084 Gain (loss) on equity-method investment activity, net 13,056 258,686 73,643 (345,402 ) (16 ) Income before income tax expense $ 91,825 $ 222,683 $ 315,963 $ (345,402 ) $ 285,068 Income tax expense 5,125 — 57,260 — 62,385 Net income $ 86,700 $ 222,683 $ 258,702 $ (345,402 ) $ 222,683 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 86,700 $ 222,683 $ 258,702 $ (345,402 ) $ 222,683 30. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Three months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 13,243 $ — $ 747,978 $ (13,243 ) $ 747,978 Cost of revenue — 707 480,705 — 481,412 Gross profit $ 13,243 $ (707 ) $ 267,273 $ (13,243 ) $ 266,566 Operating expenses: Selling, general and administrative expenses 4,935 5,154 171,164 (13,243 ) 168,010 Amortization of acquired intangible assets — — 9,372 — 9,372 Other operating (income) expense, net — — (4,844 ) — (4,844 ) Income (loss) from operations $ 8,308 $ (5,861 ) $ 91,581 $ — $ 94,028 Foreign exchange gains (losses), net (299 ) 372 7,377 — 7,450 Interest income (expense), net (4,651 ) — (4,488 ) — (9,139 ) Intercompany interest income (expense), net 18,031 (6,291 ) (11,740 ) — — Other income (expense), net — — 5,385 — 5,385 Income (loss) before equity-method investment activity, net and income tax expense $ 21,389 $ (11,780 ) $ 88,115 $ — $ 97,724 Gain (loss) on equity-method investment activity, net 11,069 85,383 19,820 (116,279 ) (7 ) Income before income tax expense $ 32,458 $ 73,603 $ 107,935 $ (116,279 ) $ 97,717 Income tax expense 1,567 — 22,547 — 24,114 Net income $ 30,891 $ 73,603 $ 85,388 $ (116,279 ) $ 73,603 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 30,891 $ 73,603 $ 85,388 $ (116,279 ) $ 73,603 Condensed Consolidating Statement of Income (Loss) Nine Months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 37,301 $ — $ 2,165,451 $ (37,301 ) $ 2,165,451 Cost of revenue — 707 1,387,927 — 1,388,634 Gross profit $ 37,301 $ (707 ) $ 777,524 $ (37,301 ) $ 776,817 Operating expenses: Selling, general and administrative expenses 8,936 16,916 526,800 (37,367 ) 515,285 Amortization of acquired intangible assets 48 — 29,086 — 29,134 Other operating (income) expense, net 17 — (4,930 ) — (4,913 ) Income (loss) from operations $ 28,300 $ (17,623 ) $ 226,568 $ 66 $ 237,311 Foreign exchange gains (losses), net 862 874 13,317 — 15,053 Interest income (expense), net (11,629 ) — (16,017 ) — (27,646 ) Intercompany interest income (expense), net 58,156 (13,594 ) (44,562 ) — — Other income (expense), net — — 30,683 — 30,683 Income (loss) before equity-method investment activity, net and income tax expense $ 75,689 $ (30,343 ) $ 209,989 $ 66 $ 255,401 Gain (loss) on equity-method investment activity, net 22,100 233,215 81,864 (337,201 ) (22 ) Income before income tax expense $ 97,789 $ 202,872 $ 291,853 $ (337,135 ) $ 255,379 Income tax expense 4,854 — 48,414 — 53,268 Net income $ 92,935 $ 202,872 $ 243,439 $ (337,135 ) $ 202,111 Net loss attributable to redeemable non-controlling interest — — (761 ) — (761 ) Net income attributable to Genpact Limited shareholders $ 92,935 $ 202,872 $ 244,200 $ (337,135 ) $ 202,872 30. Guarantor financial information (continued) Condensed Consolidating Statement of Comprehensive Income (Loss) Three months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 41,267 $ 88,121 $ 99,986 $ (141,253 ) $ 88,120 $ — Other comprehensive income: Currency translation adjustments (21,772 ) (39,404 ) (39,404 ) 61,175 (39,404 ) $ — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 1,485 (11,360 ) (11,360 ) 9,875 (11,360 ) — Retirement benefits, net of taxes 54 346 346 (400 ) 346 $ — Other comprehensive income (loss) (20,233 ) (50,418 ) (50,418 ) 70,650 (50,418 ) — Comprehensive income (loss) $ 21,034 $ 37,703 $ 49,569 $ (70,603 ) $ 37,702 $ — Nine months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 86,700 $ 222,683 $ 258,702 $ (345,402 ) $ 222,683 $ — Other comprehensive income: Currency translation adjustments (14,307 ) (24,677 ) (24,677 ) 38,984 (24,677 ) $ — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (53 ) 1,683 1,683 (1,630 ) 1,683 — Retirement benefits, net of taxes 63 773 773 (836 ) 773 $ — Other comprehensive income (loss) (14,297 ) (22,221 ) (22,221 ) 36,518 (22,221 ) — Comprehensive income (loss) $ 72,403 $ 200,462 $ 236,481 $ (308,885 ) $ 200,462 $ — Three months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 30,891 $ 73,603 $ 85,388 $ (116,279 ) $ 73,603 $ — Other comprehensive income: Currency translation adjustments (35,035 ) (58,134 ) (58,134 ) 93,169 (58,134 ) — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (29,242 ) (28,918 ) (28,918 ) 58,160 (28,918 ) — Retirement benefits, net of taxes (6 ) 692 692 (686 ) 692 — Other comprehensive income (loss) (64,283 ) (86,360 ) (86,360 ) 150,643 (86,360 ) — Comprehensive income (loss) $ (33,392 ) $ (12,757 ) $ (972 ) $ 34,364 $ (12,757 ) $ — Nine months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 92,935 $ 202,872 $ 244,200 $ (337,135 ) $ 202,872 $ (761 ) Other comprehensive income: Currency translation adjustments (88,743 ) (141,150 ) (141,150 ) 229,893 (141,150 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (71,352 ) (75,729 ) (74,279 ) 145,631 (75,729 ) — Retirement benefits, net of taxes 67 1,822 1,198 (1,265 ) 1,822 — Other comprehensive income (loss) (160,028 ) (215,057 ) (214,231 ) 374,259 (215,057 ) (424 ) Comprehensive income (loss) $ (67,093 ) $ (12,185 ) $ 29,969 $ 37,124 $ (12,185 ) $ (1,185 ) 30. Guarantor financial information (continued) Condensed Consolidating Statement of Cash Flow Nine months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (148,906 ) $ (15,281 ) $ 79,397 $ 426,110 $ 341,319 Investing activities Purchase of property, plant and equipment — — (55,072 ) — (55,071 ) Payment for internally generated intangible assets (including intangibles under development) — — (26,261 ) — (26,261 ) Proceeds from sale of property, plant and equipment — — 1,621 — 1,621 Investment in subsidiaries (6,848 ) — — 6,848 — Dividend received — 30,000 — (30,000 ) — Payment for purchase of bonds, intercompany — (103,100 ) — 103,100 — Proceeds from redemption of debentures, intercompany 86,818 35,100 — (121,918 ) — Payment for business acquisitions, net of cash acquired — — (6,305 ) — (6,305 ) Payment for purchase of redeemable non-controlling interest — — — — — Net cash (used for) provided by investing activities $ 79,970 $ (38,000 ) (86,017 ) $ (41,970 ) $ (86,016 ) Financing activities Repayment of capital lease obligations — — (6,256 ) — (6,256 ) Proceeds from long-term debt — — — — — Repayment of long-term debt (3,750 ) — (21,750 ) — (25,500 ) Proceeds from short-term borrowings — — 50,000 — 50,000 Repayment of short-term borrowings (25,000 ) — (75,000 ) — (100,000 ) Proceeds from intercompany loans 105,885 122,500 245,037 (473,422 ) — Repayment of intercompany loans (5,000 ) (7,000 ) (35,312 ) 47,312 — Proceeds from issuance of common shares under stock-based compensation plans — 15,949 — — 15,949 Proceeds from issuance of common shares — — 6,848 (6,848 ) — Payment for net settlement of stock-based awards — (3,177 ) — — (3,177 ) Payment of earn-out/deferred consideration — — (12,790 ) — (12,790 ) Dividend paid — (48,515 ) (30,000 ) 30,000 (48,515 ) Payment for stock repurchased and retired — (23,901 ) — — (23,901 ) Payment for expenses related to stock repurchase — (12 ) — — (12 ) Proceeds from issuance of bonds, intercompany — — 103,100 (103,100 ) — Payment for redemption of debentures, intercompany — — (121,918 ) 121,918 — Net cash (used for) provided by financing activities $ 72,134 $ 55,844 $ 101,959 $ (384,140 ) $ (154,202 ) Effect of exchange rate changes (1,703 ) - (10,922 ) — (12,625 ) Net increase (decrease) in cash and cash equivalents 3,198 2,563 95,340 — 101,101 Cash and cash equivalents at the beginning of the period 12,797 2,505 353,094 — 368,396 Cash and cash equivalents at the end of the period $ 14,292 $ 5,068 $ 437,512 $ — $ 456,872 30. Guarantor financial information (continued) Condensed Consolidating Statement of Cash Flow Nine months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (169,540 ) $ (896 ) $ (9,110 ) $ 382,352 $ 202,806 Investing activities Purchase of property, plant and equipment (1 ) — (68,026 ) — (68,027 ) Payment for internally generated intangible assets — — (19,397 ) — (19,397 ) Proceeds from sale of property, plant and equipment — — 499 — 499 Investment in equity affiliates — — — — — Investment in subsidiaries (109,759 ) — 8,861 100,898 — Proceeds from redemption of debentures, intercompany 91,761 — — (91,761 ) — Payment for business acquisitions, net of cash acquired — — (108,105 ) — (108,105 ) Payment for purchase of redeemable non-controlling interest — — (4,730 ) — (4,730 ) Net cash (used for) provided by investing activities $ (17,999 ) $ — $ (190,898 ) $ 9,137 $ (199,760 ) Financing activities Repayment of capital lease obligations — — (1,954 ) — (1,954 ) 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 (1,225 ) — (156,461 ) — (157,686 ) Proceeds from short-term borrowings 100,000 — 125,000 — 225,000 Repayment of short-term borrowings — — (65,000 ) — (65,000 ) Proceeds from intercompany loans 58,638 226,500 298,467 (583,605 ) — Repayment of intercompany loans (62,979 ) (51,500 ) (86,839 ) 201,318 — Proceeds from issuance of common shares under stock-based compensation plans — 12,275 100,963 (100,963 ) 12,275 Payment for net settlement of stock-based awards — (14,947 ) — — (14,947 ) Payment of earn-out/deferred consideration — — (1,559 ) — (1,559 ) Dividend paid — (42,901 ) — — (42,901 ) Payment for stock repurchased and retired — (130,103 ) — — (130,103 ) Payment for expenses related to stock repurchase — (82 ) — — (82 ) Payment for redemption of debentures, intercompany — — (91,761 ) 91,761 — Net cash (used for) provided by financing activities $ 194,434 $ (758 ) $ 145,749 $ (391,489 ) $ (52,064 ) Effect of exchange rate changes (5,375 ) — (48,845 ) — (54,220 ) Net increase (decrease) in cash and cash equivalents 6,895 (1,654 ) (54,259 ) — (49,018 ) 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 $ 6,027 $ 482 $ 394,721 $ — $ 401,230 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of preparation and principles of consolidation | (a) Basis of preparation and principles of consolidation The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year. The accompanying unaudited interim consolidated financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding changes to additional paid in capital. The Company’s 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, valuations of derivative financial instruments, the measurement of lease liabilities and right-of-use ( |
Business combinations | (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under selling, general and administrative expenses. In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the consolidated statements of income. |
Goodwill | Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. |
Other Intangible Assets | Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally are carried at cost less accumulated amortization based on their estimated useful lives as follows: Customer-related intangible assets 2-11 years Marketing-related intangible assets 2-8 years Technology-related intangible assets 2-8 years Other intangible assets 3 years Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized. |
Financial instruments and concentration of credit risk | (d) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations an banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. The General Electric Company (“GE”) accounted for 11% and 16% of receivables as of December 31, 2018 and September 30, 2019, respectively. GE accounted for 9% of total revenue for each of the nine and three months periods ended September 30, 2018, respectively, and 14% |
Accounts receivable | (e) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and clients’ financial condition, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. |
Revenue recognition | ( f) Revenue Recognition The Company derives its revenue primarily from business process management including analytics, consulting and related digital solutions 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 the customization of applications and 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. 2. Summary of significant accounting policies (Continued) Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (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 client. 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. 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 the client 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. Significant judgments The Company often enters into contracts with its 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. |
Changes in Accounting Policies | (g) 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 Standards Codification Topic 842, Leases (“Topic 842”), effective January 1, 2019. The Company applied Topic 842 using the modified retrospective adoption approach, which involves recognizing new ROU assets and lease liabilities in its statement of financial position for various operating leases. Therefore, comparative information has not been adjusted and continues to be reported under ASC Topic 840. 2. Summary of significant accounting policies (Continued) As a result of the Company’s adoption of this new standard, all leases are classified as either operating leases or finance leases and are recorded on the balance sheet. The accounting for finance leases (capital leases under ASC 840) is substantially unchanged. 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 the practical expedients to not separate lease and non-lease components for all of its leases and to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (“short-term leases”). As of January 1, 2019, the date of the Company’s initial application of ASC 842, the Company recognized its lease liabilities measured as the present value of lease payments not yet paid, discounted using the discount rate for the lease as of the date of initial application. The ROU asset for each existing lease as of the date of initial application includes an initial measurement of the lease liability adjusted for any lease payments made to the lessor at or before the date of initial application, accrued lease payments and any lease incentives received or any initial direct costs incurred by the Company as of the date of initial application. As a result of adoption of the ASC 842, the Company recognized additional lease liabilities of $328,978, and ROU assets of $309,687. |
Leases | Leases (effective January 1, 2019) At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term of the contract, and (3) whether the Company has the right to direct the use of the asset. At the inception of a lease, the consideration in the contract is allocated to each lease component based on its relative standalone price to determine the lease payments. Leases entered into prior to January 1, 2019 have been accounted for under ASC 840 and were not reassessed. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: (1) the lease transfers ownership of the asset by the end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the lease term is for a major part of the remaining useful life of the asset or (4) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of the above criteria. For all leases at the lease commencement date, a ROU asset and a lease liability are recognized. The lease liability represents the present value of the lease payments under the lease. Lease liabilities are initially measured at the present value of the lease payments not yet paid, discounted using the discount rate for the lease at lease commencement. The lease liabilities are subsequently measured on an amortized cost basis. The lease liability is adjusted to reflect interest on the liability and the lease payments made during the period. Interest on the lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. The ROU asset represents the right to use the leased asset for the lease term. The ROU asset for each lease initially includes the amount of the initial measurement of the lease liability adjusted for any lease payments made to the lessor at or before the commencement date, accrued lease liabilities and any lease incentives received or any initial direct costs incurred by the Company. The ROU asset of finance leases is subsequently measured at cost, less accumulated amortization and any accumulated impairment losses. The ROU asset of operating leases is subsequently measured from the carrying amount of the lease liability at the end of each reporting period and is therefore equal to the carrying amount of lease liabilities adjusted for (1) unamortized initial direct costs, (2) prepaid/(accrued) lease payments and (3) the unamortized balance of lease incentives received. Leases with a lease term of 12 months or less from the commencement date that do not contain a purchase option are recognized as an expense on a straight-line basis over the lease term. 2. Summary of significant accounting policies (Continued) Significant judgments The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. Under certain of its leases, the Company has a renewal and termination option to lease assets for additional terms between one and five years. The Company applies judgment in evaluating whether it is reasonably certain to exercise the option to renew or terminate the lease. The Company considers all relevant factors that create an economic incentive for it to exercise the renewal or termination option. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within the Company’s control and affects its ability to exercise (or not to exercise) the option to renew or terminate. The company has applied an incremental borrowing rate for the purpose of computing lease liabilities based on the rate prevailing in different geographies. Upon the Company’s adoption of ASC 842, the Company applied an incremental borrowing rate to leases existing as of January 1, 2019, the date of initial application. Impact on consolidated financial statements The following tables summarize the impact of the Company’s adoption of Topic 842 on its consolidated financial statements as of January 1, 2019. As reported December 31, 2018 Adoption of ASC 842 Increase/(Decrease) Balance as of January 1, 2019 Prepaid expenses and other current assets 212,477 (3,529) 1 208,948 Operating lease ROU assets - 273,732 273,732 Other assets: Finance lease ROU assets - 35,955 6 35,955 Other assets 155,159 (5,126) 3 150,033 Property, plant and equipment, net 212,715 (2,343) 2 210,372 Accrued expenses and other current liabilities 571,350 (1,123) 4 570,227 Operating leases liability (current) - 42,200 42,200 Operating leases liability (non-current) - 258,378 258,378 Other liabilities 165,226 (767) 5 164,459 1. Includes prepaid rent amounting to $3,160 and leasehold land amounting to $369, which have been reclassified to operating lease ROU assets and finance lease ROU assets, respectively. 2. Represents vehicles recognized as capital leases under ASC 840 and reclassified as a finance lease ROU asset. 3. Includes prepaid rent amounting to $284 and leasehold land amounting to $4,842, which have been reclassified to operating lease ROU assets and finance lease ROU assets, respectively. 4. Includes accrued lease liabilities of $4,562 adjusted with operating lease ROU assets offset by additional current portion of finance lease liabilities of $3,439 recognized upon the adoption of ASC 842. 5. Includes accrued lease liabilities of $25,728 adjusted with operating lease ROU assets offset by additional finance lease liabilities of $24,961 recognized upon the adoption of ASC 842. 6. The balance is included in “other assets” in the consolidated balance sheet. |
Recently issued accounting pronouncements | (h) Recently issued accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for their impact on the Company’s consolidated financial statements. 2. Summary of significant accounting policies (Continued) The Company has adopted the following recently released accounting standards: The Company adopted ASC Topic 606, Revenue from Contracts with Customers, with a date of initial application of January 1, 2018 using the modified retrospective method, and the revenue recognition significant accounting policy is outlined in section (f) above. The Company adopted ASC Topic 842, Leases , In March 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-01, Leases (Topic 842): Codification Improvement. The new standard contains several amendments to clarify the codification more generally and/or to correct unintended application of guidance. The changes in the new standard eliminate the requirement for transition disclosures related to Topic 250-10-50-3. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Early application is permitted. In the quarter ended March 31, 2019, the Company adopted ASU 2019-01 effective January 1, 2019 and no prior periods have been adjusted. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging.” The amendment expands an entity’s ability to hedge accounting to non-financial and financial risk components and requires changes in the fair value of hedging instruments to be presented in the same income statement line as a hedged item. The ASU also amends the presentation and disclosure requirements for the effect of hedge accounting. The ASU must be adopted using a modified retrospective approach with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. The ASU is effective for the Company beginning January 1, 2019, including interim periods in the fiscal year 2019. On January 1, 2019, the Company assessed the impact of this ASU and concluded that it does not have any impact on its consolidated results of operations, cash flows, financial position and disclosures. In addition, the following recently released accounting standards have not yet been adopted by the Company. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of credit losses on financial instruments.” The ASU requires measurement and recognition of expected credit losses for financial assets held by the Company. The ASU is effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated results of operations, cash flows, financial position and disclosures. In August 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. 2. Summary of significant accounting policies (Continued) In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” The ASU provides additional guidance on the recognition of credit losses and addresses partial-term fair value hedges, fair value hedge basis adjustments and certain transition requirements, among other things. The ASU also addresses the scope of the guidance on the requirement for remeasurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which foreign currency-denominated equity securities must be remeasured at historical exchange rates. 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 May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments—Credit Losses (Topic 326).” The ASU provides final guidance that allows entities to make an irrevocable one-time election upon adoption of the new credit losses standard to measure financial assets measured at amortized cost (except held-to-maturity securities) using the fair value option. 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 July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections. This ASU amends various SEC paragraphs pursuant to the issuance of SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization. The S-X Rule 3-04 requires the presentation of changes in stockholders’ equity in the form of a reconciliation of the beginning balance to the ending balance for each period for which the statement of income is required to be filed with all the significant reconciling items. The Company has presented the changes in stockholders' equity through a separate statement of changes in equity for each of the current and comparative quarter and year-to-date interim periods beginning on April 1, 2019. The additional elements of the ASU did not have any material impact on the Company's Consolidated Financial Statements. This guidance was effective immediately upon issuance. |
Reclassification | (i) 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) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Intangible Assets Acquired | Customer-related intangible assets 2-11 years Marketing-related intangible assets 2-8 years Technology-related intangible assets 2-8 years Other intangible assets 3 years |
Summary of Impact of Adoption of Topic 842 on consolidated financial statements | The following tables summarize the impact of the Company’s adoption of Topic 842 on its consolidated financial statements as of January 1, 2019. As reported December 31, 2018 Adoption of ASC 842 Increase/(Decrease) Balance as of January 1, 2019 Prepaid expenses and other current assets 212,477 (3,529) 1 208,948 Operating lease ROU assets - 273,732 273,732 Other assets: Finance lease ROU assets - 35,955 6 35,955 Other assets 155,159 (5,126) 3 150,033 Property, plant and equipment, net 212,715 (2,343) 2 210,372 Accrued expenses and other current liabilities 571,350 (1,123) 4 570,227 Operating leases liability (current) - 42,200 42,200 Operating leases liability (non-current) - 258,378 258,378 Other liabilities 165,226 (767) 5 164,459 1. Includes prepaid rent amounting to $3,160 and leasehold land amounting to $369, which have been reclassified to operating lease ROU assets and finance lease ROU assets, respectively. 2. Represents vehicles recognized as capital leases under ASC 840 and reclassified as a finance lease ROU asset. 3. Includes prepaid rent amounting to $284 and leasehold land amounting to $4,842, which have been reclassified to operating lease ROU assets and finance lease ROU assets, respectively. 4. Includes accrued lease liabilities of $4,562 adjusted with operating lease ROU assets offset by additional current portion of finance lease liabilities of $3,439 recognized upon the adoption of ASC 842. 5. Includes accrued lease liabilities of $25,728 adjusted with operating lease ROU assets offset by additional finance lease liabilities of $24,961 recognized upon the adoption of ASC 842. 6. The balance is included in “other assets” in the consolidated balance sheet. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | As of December 31, As of September 30, 2018 2019 Cash and other bank balances 368,396 456,872 Total $ 368,396 $ 456,872 |
Accounts receivable, net of r_2
Accounts receivable, net of reserve for doubtful receivables (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Reserve for Doubtful Receivables | The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2018 Nine months ended September 30, 2019 Opening balance as of January 1 $ 23,660 $ 23,960 Additions charged/reversal released to cost and expense 1,857 7,169 Deductions/effect of exchange rate fluctuations (1,557 ) (1,199 ) Closing balance $ 23,960 $ 29,930 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 and September 30, 2019: 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, e) 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, f) 1,582 — — 1,582 Total $ 53,900 $ — $ 35,245 $ 18,655 6. Fair value measurements (Continued) As of September 30, 2019 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) $ 28,412 $ — $ 28,412 $ — Deferred compensation plan assets (Note a, e) 9,906 — — 9,906 Total $ 38,318 $ — $ 28,412 $ 9,906 Liabilities Earn-out consideration (Note b, d) $ 477 $ — $ — $ 477 Derivative instruments (Note b, c) 31,053 — 31,053 — Deferred compensation plan liability (Note b, f) 9,642 — — 9,642 Total $ 41,172 $ — $ 31,053 $ 10,119 (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) 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 fair value hierarchy. (f) The fair value of the deferred compensation plan liability is derived based on the fair value of the underlying assets in the insurance portfolio and is therefore classified within level 3 of the fair value hierarchy. |
Deferred Compensation Plan Assets | |
Roll-Forward of Fair Value of Deferred Compensation Plan Assets Categorized as Level 3 in Fair Value Hierarchy | (c) “ 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 three and nine months ended September 30, 2018 and 2019: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Opening balance $ — $ 9,141 $ — $ 1,613 Additions (net of redemption) 595 579 595 7,564 Change in fair value of deferred compensation plan assets (Note a) 13 186 13 729 Others (Note b) (20 ) — (20 ) — Closing balance $ 588 $ 9,906 $ 588 $ 9,906 (a) Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. (b) “Others” is comprised of certain administrative charges which are reported in “selling, general and administrative expenses” 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 three and nine months ended September 30, 2018 and 2019: Three months ended Nine months ended September 30, September 30, 2018 2019 2018 2019 Opening balance $ 23,609 $ 3,463 $ 24,732 $ 17,073 Earn-out consideration payable in connection with acquisitions — — — — Payments made on earn-out consideration ((Note a) (83 ) (3,000 ) (1,559 ) (17,098 ) Change in fair value of earn-out consideration (Note b) (5,341 ) — (5,974 ) — Others (Note c) 55 14 1,041 502 Closing balance $ 18,240 $ 477 $ 18,240 $ 477 (a) Includes the interest payment on earn-out consideration in excess of the acquisition date fair value, which is included in “cash flows from operating activities” amounting to $680 and $4,308 for three months and nine months ended September 30, 2019, respectively. (b) Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. |
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 three and nine months ended September 30, 2018 and 2019: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Opening balance $ — $ 8,994 $ — 1,582 Additions (net of redemption) 595 587 595 7,564 Change in fair value of deferred compensation plan liabilities (Note a) 3 61 3 496 Closing balance $ 598 $ 9,642 $ 598 9,642 (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) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 As of September 30, 2019 As of December 31, 2018 As of September 30, 2019 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,439,000 $ 1,239,000 $ (3,643 ) $ (7,997 ) United States Dollars (sell) Mexican Peso (buy) — 3,000 — 109 United States Dollars (sell) Philippines Peso (buy) 55,800 49,650 (1,510 ) 2 Euro (sell) United States Dollars (buy) 136,412 117,964 4,804 8,237 Pound Sterling (buy) United States Dollars (sell) 128 — (128 ) — Singapore Dollars (buy) United States Dollars (sell) — 9,939 — (159 ) Euro (sell) Romanian Leu (buy) 41,198 36,039 (299 ) (362 ) Japanese Yen (sell) Chinese Renminbi (buy) 40,568 37,024 (2,195 ) (2,127 ) Pound Sterling (sell) United States Dollars (buy) 27,517 13,705 495 1,070 Australian Dollars (sell) United States Dollars (buy) 89,780 50,760 3,548 4,093 United States Dollars (sell) Hungarian Forint (buy) — 6,000 — (103 ) Interest rate swaps (floating to fixed) 507,425 485,060 7,782 (5,404 ) $ 8,854 $ (2,641 ) (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. Notional amounts are denominated in U.S. dollars. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. |
Fair Value of Derivative Instruments and Location in Financial Statements | The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2018 As of September 30, 2019 As of December 31, 2018 As of September 30, 2019 Assets Prepaid expenses and other current assets $ 23,038 $ 20,611 $ 11,490 $ 2,169 Other assets $ 9,571 $ 5,629 $ — $ 3 Liabilities Accrued expenses and other current liabilities $ 15,148 $ 8,149 $ 225 $ 965 Other liabilities $ 19,872 $ 21,935 $ — $ 4 |
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Before-Tax amount Tax (Expense) or Benefit Net of tax Amount Opening balance $ (10,277 ) $ 1,824 $ (8,453 ) $ 11,185 $ (6,077 ) $ 5,108 $ 50,529 $ (14,436 ) $ 36,093 $ (2,411 ) $ (5,524 ) $ (7,935 ) Adoption of ASU 2018-02 — — — — — — — 2,265 2,265 — — — Net gains (losses) reclassified into statement of income on completion of hedged transactions 173 47 220 5,915 (1,950 ) 3,965 12,734 (2,329 ) 10,405 15,105 (5,553 ) 9,552 Changes in fair value of effective portion of outstanding derivatives, net (38,242 ) 9,544 (28,698 ) (9,115 ) 1,720 (7,395 ) (86,487 ) 21,163 (65,324 ) 13,671 (2,436 ) 11,235 Gain (loss) on cash flow hedging derivatives, net (38,415 ) 9,497 (28,918 ) (15,030 ) 3,670 (11,360 ) (99,221 ) 23,492 (75,729 ) (1,434 ) 3,117 1,683 Closing balance $ (48,692 ) $ 11,321 $ (37,371 ) $ (3,845 ) $ (2,407 ) $ (6,252 ) $ (48,692 ) $ 11,321 $ (37,371 ) $ (3,845 ) $ (2,407 ) $ (6,252 ) |
Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | 7. Derivative financial instruments (Continued) The Company’s gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Amount of Gain (Loss) reclassified recognized in OCI on Location of Gain (Loss) from OCI into Statement of Income Derivatives in Derivatives (Effective Portion) reclassified (Effective Portion) Cash Flow Three months ended Nine months ended from OCI into Three months ended Nine months ended Hedging September 30, September 30, Statement of Income September 30, September 30, Relationships 2018 2019 2018 2019 (Effective Portion) 2018 2019 2018 2019 Forward foreign exchange contracts $ (38,960 ) $ (7,261 ) $ (91,180 ) $ 22,964 Revenue $ 1,002 $ 1,919 $ (1,767 ) $ 4,441 Interest rate swaps 718 (1,854 ) 4,693 (9,293 ) Cost of revenue (1,510 ) 2,294 9,438 5,274 Selling, general and administrative expenses (382 ) $ 595 2,543 1,497 Interest expense 1,063 1,107 2,520 3,893 $ (38,242 ) $ (9,115 ) $ (86,487 ) $ 13,671 $ 173 $ 5,915 $ 12,734 $ 15,105 There are no gains (losses) recognized in income on the ineffective portion of derivatives and excluded from effectiveness testing Non-designated hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended September 30, Nine months ended September 30, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2018 2019 2018 2019 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ (6,450 ) $ (3,209 ) $ (23,279 ) $ 4,203 $ (6,450 ) $ (3,209 ) $ (23,279 ) $ 4,203 (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) | 9 Months Ended |
Sep. 30, 2019 | |
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, As of September 30, 2018 2019 Advance income and non-income taxes $ 58,701 $ 103,239 Contract asset (Note 19) 22,472 23,084 Prepaid expenses 25,996 28,509 Derivative instruments 34,528 22,780 Employee advances 3,772 4,093 Deposits 2,758 1,555 Advances to suppliers 1,998 1,454 Others 62,252 52,047 $ 212,477 $ 236,761 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | The following table provides the gross and net amount of property, plant and equipment: As of December 31, As of September 30, 2018 2019 Property, plant and equipment, gross $ 660,754 $ 695,136 Less: Accumulated depreciation and amortization (448,039 ) (478,751 ) Property, plant and equipment, net $ 212,715 $ 216,385 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table presents the changes in goodwill: As of December 31, As of September 30, 2018 2019 Opening balance $ 1,337,122 $ 1,393,832 Goodwill relating to acquisitions consummated during the period 91,936 2,547 Impact of measurement period adjustments 816 (988 ) Effect of exchange rate fluctuations (36,042 ) (5,904 ) Closing balance $ 1,393,832 $ 1,389,487 |
Summary of Intangible Assets | The Company’s intangible assets are as follows: As of December 31, 2018 As of September 30,2019 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 368,558 $ 306,582 $ 61,976 $ 366,819 $ 320,866 $ 45,953 Marketing-related intangible assets 54,714 46,591 8,123 55,065 49,060 6,005 Technology-related intangible assets 76,790 33,976 42,814 138,825 54,408 84,417 Other intangible assets 1,204 1,077 127 1,180 1,124 56 Intangible assets under development 64,047 - 64,047 29,651 3,511 26,140 $ 565,313 $ 388,226 $ 177,087 $ 591,540 $ 428,969 $ 162,571 |
Long-term debt (Tables)
Long-term debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Maturity Profile of Term Loan Outstanding Net of Debt Amortization Expense | The maturity profile of the term loan outstanding as of September 30, 2019, net of debt amortization expense, is as follows: Year ended Amount 2019 8,372 2020 33,509 2021 33,537 2022 33,564 2023 526,749 Total $ 635,731 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, As of September 30, 2018 2019 Accrued expenses $ 179,843 $ 181,954 Accrued employee cost 210,251 233,796 Earn-out consideration 16,875 369 Statutory liabilities 42,728 56,161 Retirement benefits 22,921 26,207 Derivative instruments 15,373 9,114 Contract liabilities (Note 19) 64,744 93,414 Finance lease liability — 9,323 Other liabilities 16,807 19,813 Capital lease obligations 1,808 — $ 571,350 $ 630,151 |
Other liabilities (Tables)
Other liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other liabilities | Other liabilities consist of the following: As of December 31, As of September 30, 2018 2019 Accrued employee cost $ 6,341 $ 8,770 Earn-out consideration 198 108 Retirement benefits 50,370 56,689 Derivative instruments 19,872 21,939 Contract liabilities (Note 19) 53,796 68,340 Finance lease liability — 20,962 Others 32,935 17,305 Capital lease obligations 1,714 — $ 165,226 $ 194,113 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Defined Benefit Plan Costs | 15. Employee benefit plans (Continued) Net defined benefit plan costs for the three and nine months ended September 30, 2018 and 2019 include the following components: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Service costs $ 1,762 $ 2,108 $ 5,815 $ 6,439 Interest costs 900 1,138 2,834 3,479 Amortization of actuarial loss 344 290 899 887 Expected return on plan assets (689 ) (643 ) (2,169 ) (1,967 ) Net defined benefit plan costs $ 2,317 $ 2,893 $ 7,379 $ 8,838 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the three and nine months ended September 30, 2018 and 2019, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 India $ 6,269 $ 7,805 $ 18,274 $ 21,757 U.S. 2,463 4,655 9,421 13,676 U.K. 2,033 2,634 7,357 9,290 China 4,388 4,693 13,190 14,111 Other regions 980 1,388 3,312 4,244 Total $ 16,133 $ 21,175 $ 51,554 $ 63,078 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Significant Assumptions used in Determining Fair Value of Options Granted | The following table shows the significant assumptions used in determining the fair value of options granted in the nine months ended September 30, 2018 and September 30, 2019. Nine months ended September 30, 2018 Nine months ended September 30, 2019 Dividend yield 0.95% - 1.01% 0.82% - 1.08% Expected life (in months) 84 84 Risk-free rate of interest 2.67%-2.93% 1.56% - 2.63% Volatility 22.55%-22.73% 21.0% - 21.38% |
Summary of Option Activity | A summary of option activity during the nine months ended September 30, 2019 is set out below: Nine months ended September 30, 2019 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2019 7,261,675 $ 23.61 6.4 $ — Granted 1,881,068 28.50 Forfeited (85,000) 29.91 Expired — — Exercised (622,494) 15.27 13,858 Outstanding as of September 30, 2019 8,435,249 $ 25.25 6.7 $ 114,171 Vested as of September 30, 2019 and expected to vest thereafter (Note a) 8,046,532 $ 25.08 6.7 $ 110,206 Vested and exercisable as of September 30, 2019 3,186,076 $ 19.08 3.6 $ 62,668 Weighted average grant date fair value of grants during the period $ 6.98 (a) Options expected to vest reflect the application of an estimated forfeiture rate. |
Summary of Restricted Share Units Activity | A summary of RSU activity during the nine months ended September 30, 2019 is set out below: Nine months ended September 30, 2019 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2019 1,528,999 $ 27.45 Granted 218,965 34.34 Vested (Note a) (611,871 ) 26.38 Forfeited (65,067 ) 30.51 Outstanding as of September 30, 2019 1,071,026 $ 29.29 Expected to vest (Note b) 983,141 (a) (b) The number of RSUs expected to vest reflects the application of an estimated forfeiture rate. |
Summary of Performance Units Activity | A summary of PU activity during the nine months ended September 30, 2019 is set out below: Nine months ended September 30, 2019 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2019 3,712,402 $ 28.40 3,712,402 Granted 1,577,530 34.68 3,155,060 Vested Forfeited (183,696 ) 28.74 (200,635 ) Adjustment upon final determination of level of performance goal achievement (Note a) (13,996 ) 30.68 Adjustment upon final determination of level of performance goal achievement (Note a) (13,996 ) Outstanding as of September 30, 2019 5,092,239 $ 30.33 6,652,830 Expected to vest (Note b) 5,368,588 ( a ) Represents an adjustment made in March 2019 to the number of shares subject to the PUs granted in 2018 upon certification of the level of achievement of the performance targets underlying such awards. ( b ) The number of PUs expected to vest reflects the application of an estimated forfeiture rate and the expected achievement of higher-than-target performance for the PUs granted during the year. |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Net income available to Genpact Limited common shareholders $ 73,603 $ 88,120 $ 202,872 $ 222,683 Weighted average number of common shares used in computing basic earnings per common share 190,024,924 190,599,049 190,991,405 190,071,418 Dilutive effect of stock-based awards 3,090,845 5,291,792 3,265,366 4,612,281 Weighted average number of common shares used in computing dilutive earnings per common share 193,115,769 195,890,841 194,256,771 194,683,699 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.39 $ 0.46 $ 1.06 $ 1.17 Diluted $ 0.38 $ 0.45 $ 1.04 $ 1.14 |
Net revenues (Tables)
Net revenues (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenues [Abstract] | |
Net Revenues Disaggregated by Customer | In the following tables, the Company’s revenue is disaggregated by customer classification, service type, major industrial vertical and location of service delivery center. Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 GE $ 64,507 $ 121,096 $ 188,000 $ 348,742 Global Clients 683,471 767,703 1,977,451 2,231,062 Total net revenues $ 747,978 $ 888,799 $ 2,165,451 $ 2,579,804 |
Net Revenues for Service Type | Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Business process outsourcing $ 622,940 $ 749,322 $ 1,802,912 $ 2,173,562 Information technology services 125,038 139,477 362,539 406,242 Total net revenues $ 747,978 $ 888,799 $ 2,165,451 $ 2,579,804 |
Revenues from Clients Based on Industry Serviced | 19. Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Banking, financial services and insurance $ 258,372 $ 279,445 $ 803,771 $ 792,388 Consumer goods, retail, life sciences and healthcare 230,177 272,029 648,705 801,440 High tech, manufacturing and services 259,429 337,325 712,975 985,976 Total net revenues $ 747,978 $ 888,799 $ 2,165,451 $ 2,579,804 |
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers | Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 India $ 408,169 $ 472,896 $ 1,262,225 $ 1,395,989 Asia, other than India 83,844 86,009 241,535 261,462 North and Latin America 152,121 233,062 456,241 622,873 Europe 103,844 96,832 205,450 299,480 Total net revenues $ 747,978 $ 888,799 $ 2,165,451 $ 2,579,804 |
Details of Company's Contract Liabilities | The following table provides details of the Company’s contract liabilities: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Particulars Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Opening balance $ 30,341 $ 98,962 $ 39,110 $ 104,276 $ 26,266 $ 101,785 $ 22,892 $ 95,648 Impact of opening balance offset with contract asset — $ 23,735 7,943 $ 43,648 — $ 21,348 3,821 $ 25,604 Gross opening balance $ 30,341 $ 122,697 $ 47,053 $ 147,924 $ 26,266 $ 123,133 $ 26,713 $ 121,252 Additions 9,152 16,881 25,455 31,226 25,888 49,592 67,281 85,203 Effect of business combination 273 75 — — 273 75 444 — Revenue recognized (11,934 ) (21,143 ) (20,425 ) (15,832 ) (23,837 ) (53,499 ) (39,955 ) (43,159 ) Currency translation adjustments (147 ) (383 ) (452 ) (397 ) (905 ) (1,174 ) (450 ) (375 ) Others — — - — — — (2,402 ) — Gross closing balance $ 27,685 $ 118,127 $ 51,631 $ 162,921 $ 27,685 $ 118,127 $ 51,631 $ 162,921 Impact of closing balance offset with contract asset — (22,586 ) (8,286 ) (44,512 ) — (22,586 ) (8,286 ) (44,512 ) Closing balance (Note a) $ 27,685 $ 95,541 $ 43,345 $ 118,409 $ 27,685 $ 95,541 $ 43,345 $ 118,409 (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 | 19. The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of September 30, 2019: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 161,754 93,414 51,454 14,645 2,241 |
Details of Company's Contract Assets | The following table provides details of the Company’s contract assets: Particulars Three months ended September 30, Nine months ended September 30, Particulars 2018 2019 2018 2019 Opening balance $ 41,671 $ 48,593 $ 43,366 $ 45,035 Impact of opening balance offset with contract liability 23,735 51,591 21,348 29,425 Gross opening balance $ 65,406 $ 100,184 $ 64,714 $ 74,460 Additions 9,710 9,496 29,228 58,594 Reduction in revenue recognized (10,706 ) (9,899 ) (29,532 ) (33,273 ) Gross closing balance $ 64,410 $ 99,781 $ 64,410 $ 99,781 Impact of closing balance offset with contract liability (22,586 ) (52,798 ) (22,586 ) (52,798 ) Closing balance (Note b) $ 41,824 $ 46,983 $ 41,824 $ 46,983 (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: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Particulars Sales incentive programs Transition activities Sales incentive programs Transition activities Sales incentive programs Transition activities Sales incentive programs Transition activities Opening balance $ 24,808 $ 137,370 $ 35,593 $ 156,585 $ 23,227 $ 139,284 $ 25,891 $ 134,302 Closing balance 26,459 133,651 35,146 171,357 26,459 133,651 35,146 171,357 Amortization 3,666 19,974 4,496 15,106 10,509 54,874 13,044 41,701 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of Cost of Revenue | Cost of revenue consists of the following: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Personnel expenses $ 326,717 $ 422,508 $ 959,648 $ 1,224,610 Operational expenses 141,236 129,294 389,702 376,878 Depreciation and amortization 13,459 21,857 39,284 62,552 $ 481,412 $ 573,659 $ 1,388,634 $ 1,664,040 |
Selling, general and administ_2
Selling, general and administrative expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Selling General And Administrative Expenses [Abstract] | |
Schedule of Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Personnel expenses $ 125,838 $ 147,037 $ 380,532 $ 438,427 Operational expenses 39,551 44,965 126,860 136,461 Depreciation and amortization 2,621 2,535 7,893 7,363 $ 168,010 $ 194,537 $ 515,285 $ 582,251 |
Other operating (income) expe_2
Other operating (income) expense, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Operating (Income) Expense, Net | Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Other operating (income) expense $ (191 ) $ 59 $ (477 ) $ (3,421 ) Provision for impairment of intangible assets and property, plant and equipment 688 — 1,538 3,511 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) (5,341 ) — $ (5,974 ) $ — Other operating (income) expense, net $ (4,844 ) $ 59 $ (4,913 ) $ 90 |
Interest income (expense), net
Interest income (expense), net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Banking And Thrift Interest [Abstract] | |
Schedule of Interest Income (Expense), Net | Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Interest income $ 3,328 $ 1,968 $ 8,472 $ 4,758 Interest expense (12,467 ) (12,189 ) (36,118 ) (38,245 ) Interest income (expense), net $ (9,139 ) $ (10,221 ) $ (27,646 ) $ (33,487 ) |
Income taxes (Tables)
Income taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions | The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions for the nine months ended September 30, 2019: 2019 Opening balance at January 1 $ 26,722 Decrease related to prior year tax positions (56 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (217 ) Increase related to current year tax positions, including recorded in acquisition accounting 225 Effect of exchange rate changes (163 ) Closing balance at September 30 $ 26,511 |
Other Income (expense), net (Ta
Other Income (expense), net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Nonoperating Income Expense [Abstract] | |
Schedule of Other Income (Expense), Net | Three months ended September 30, Nine months ended September 30, 2018 2019 2018 2019 Government incentives $ 5,154 $ — $ 30,850 $ 3,976 Other income/(expense) 231 704 (167 ) 1,091 Other Income (expense), net $ 5,385 $ 704 $ 30,683 $ 5,067 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Cost of Operating and Finance Leases | The components of lease cost for operating and finance leases for the three and nine months ended September 30, 2019 are summarized below : Finance lease cost Three months ended September 30, 2019 Nine months ended September 30, 2019 Amortization of ROU assets (Note a) 2,326 6,905 Interest on lease liabilities (Note b) 698 2,193 Operating lease cost (Note c) 18,510 50,538 Short-term lease cost (Note c) 128 356 Variable lease cost (Note c) 1,113 2,992 Total lease cost $ 22,775 $ 62,984 a) Included in “depreciation and amortization” in consolidated statements of income. b) Included in “interest income (expense), net” in consolidated statements of income. c) Included in “cost of revenue” and “selling, general and administrative expenses” in consolidated statements of income. |
Schedule of Other Information | Other information Weighted-average remaining lease term—finance leases 4.18 years Weighted-average remaining lease term—operating leases 6.99 years Weighted-average discount rate—finance leases 9.23% Weighted-average discount rate—operating leases 6.93% Three months ended September 30, 2019 Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 698 $ 2,182 Operating cash flows from operating leases $ 18,321 $ 52,807 Financing cash flows from finance leases $ 2,154 $ 6,256 |
Schedule of Operating and Finance Lease Liabilities | The following table reconciles the undiscounted cash flows for the operating and finance leases at September 30, 2019 to the operating and finance lease liabilities recorded on the balance sheet: Period range Finance lease Operating lease 2019 2,761 16,940 2020 10,451 69,166 2021 8,225 64,634 2022 5,457 57,066 2023 4,090 51,354 2024 3,548 42,851 Thereafter 1,572 119,458 Total lease payments 36,104 421,469 Less: Imputed interest 5,819 92,972 Total lease liabilities $ 30,285 $ 328,497 |
Guarantor financial informati_2
Guarantor financial information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Guarantor Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of September 30, 2019 Issuer/ Subsidiary Guarantor/Parent Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 14,292 $ 5,068 $ 437,512 $ — $ 456,872 Intercompany Accounts receivable, net 91,478 — — (91,478 ) — Accounts receivable, net — — 863,232 — 863,232 Intercompany loans 664,702 10,900 2,034,993 (2,710,596 ) — Intercompany other receivable 40,040 131,757 141,369 (313,166 ) — Prepaid expenses and other current assets 2,618 1,602 232,541 — 236,761 Total current assets $ 813,130 $ 149,327 $ 3,709,647 $ (3,115,239 ) $ 1,556,865 Property, plant and equipment, net 203 — 216,182 — 216,385 Operating lease right-of-use assets — — 299,868 — 299,868 Intercompany loans 100,000 — 500,000 (600,000 ) — Deferred tax assets — — 80,583 — 80,583 Investment in subsidiaries 563,063 3,279,928 623,954 (4,466,945 ) — Investment in equity affiliates — — — — — Intercompany Investment in debentures 480,023 118,393 — (598,416 ) — Intercompany other receivable — 57,861 — (57,861 ) — Intangible assets, net — — 162,571 — 162,571 Goodwill — — 1,389,487 — 1,389,487 Contract cost assets — — 206,503 — 206,503 Other assets 435 — 185,064 — 185,499 Total assets $ 1,956,854 $ 3,605,510 $ 7,373,859 $ (8,838,462 ) $ 4,097,761 Liabilities and equity Current liabilities Short-term borrowings $ 75,000 $ — $ 170,000 $ — $ 245,000 Current portion of Intercompany loans 229,457 1,965,037 516,102 (2,710,596 ) — Current portion of long-term debt 4,972 — 28,532 — 33,504 Accounts payable 176 13 20,765 — 20,954 Intercompany accounts payable — — 91,478 (91,478 ) — Income taxes payable — — 84,537 — 84,537 Intercompany other payable 54,260 94,452 164,454 (313,166 ) — Accrued expenses and other current liabilities 9,046 5,820 615,286 — 630,151 Operating leases liability — — 50,048 — 50,048 Total current liabilities $ 372,910 $ 2,065,321 $ 1,741,202 $ (3,115,239 ) $ 1,064,194 Long-term debt, less current portion 437,326 — 513,582 — 950,908 Operating leases liability — — 278,449 — 278,449 Deferred tax liabilities — — 4,413 — 4,413 Intercompany other payable — — 57,861 (57,861 ) — Intercompany loans and debenture, less current portion 500,000 — 698,416 (1,198,416 ) — Other liabilities 109 136 193,869 — 194,113 Total liabilities $ 1,310,345 $ 2,065,457 $ 3,487,792 $ (4,371,517 ) $ 2,492,077 Shareholders' equity 646,509 1,540,053 3,886,067 (4,466,945 ) 1,605,684 Commitments and contingencies — — — — — Total liabilities and equity $ 1,956,854 $ 3,605,510 $ 7,373,859 $ (8,838,462 ) $ 4,097,761 30. Guarantor financial information (continued) Condensed Consolidating Balance Sheet As of December 31, 2018 Issuer/ Subsidiary Guarantor/Parent Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 Intercompany accounts receivable, 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 Intercompany investment in debentures 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 Current portion of 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 ) — Intercompany loans and debenture, less current portion 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 Shareholders' equity 578,319 1,338,554 3,666,519 (4,179,210 ) 1,404,182 Commitments and contingencies — — — — — Total liabilities and equity $ 1,807,442 $ 3,264,895 $ 6,519,787 $ (8,062,679 ) $ 3,529,445 |
Condensed Consolidating Statement of Income (Loss) | Condensed Consolidating Statement of Income (Loss) Three months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 18,089 $ — $ 888,799 $ (18,089 ) $ 888,799 Cost of revenue — — 573,659 — 573,659 Gross profit $ 18,089 $ — $ 315,140 $ (18,089 ) $ 315,140 Operating expenses: Selling, general and administrative expenses 2,357 7,915 202,354 (18,089 ) 194,537 Amortization of acquired intangible assets — — 6,960 — 6,960 Other operating (income) expense, net — — 59 — 59 Income (loss) from operations $ 15,731 $ (7,915 ) $ 105,767 — $ 113,584 Foreign exchange gains (losses), net 91 103 6,533 — 6,727 Interest income (expense), net (5,275 ) — (4,946 ) — (10,221 ) Intercompany interest income (expense), net 21,427 (4,048 ) (17,379 ) — — Other income (expense), net — — 704 — 704 Income (loss) before equity-method investment activity, net and income tax expense $ 31,974 $ (11,860 ) $ 90,680 $ — $ 110,794 Gain (loss) on equity-method investment activity, net 10,957 99,980 30,311 (141,253 ) (5 ) Income before income tax expense $ 42,932 $ 88,120 $ 120,990 $ (141,253 ) $ 110,789 Income tax expense 1,665 — 21,004 — 22,669 Net income $ 41,267 $ 88,120 $ 99,986 $ (141,253 ) $ 88,120 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 41,267 $ 88,120 $ 99,986 $ (141,253 ) $ 88,120 Condensed Consolidating Statement of Income (Loss) Nine months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 44,112 $ — $ 2,579,804 $ (44,112 ) $ 2,579,804 Cost of revenue — — 1,664,040 — 1,664,040 Gross profit $ 44,112 $ — $ 915,764 $ (44,112 ) $ 915,764 Operating expenses: Selling, general and administrative expenses 7,746 22,690 595,927 (44,112 ) 582,251 Amortization of acquired intangible assets — — 23,565 — 23,565 Other operating (income) expense, net — — 90 — 90 Income (loss) from operations $ 36,366 $ (22,690 ) $ 296,181 $ — $ 309,858 Foreign exchange gains (losses), net 593 70 2,983 — 3,646 Interest income (expense), net (16,090 ) — (17,397 ) — (33,487 ) Intercompany interest income (expense), net 57,869 (13,384 ) (44,485 ) — — Other income (expense), net 30 0 5,037 — 5,067 Income (loss) before equity-method investment activity, net and income tax expense $ 78,769 $ (36,003 ) $ 242,319 $ — $ 285,084 Gain (loss) on equity-method investment activity, net 13,056 258,686 73,643 (345,402 ) (16 ) Income before income tax expense $ 91,825 $ 222,683 $ 315,963 $ (345,402 ) $ 285,068 Income tax expense 5,125 — 57,260 — 62,385 Net income $ 86,700 $ 222,683 $ 258,702 $ (345,402 ) $ 222,683 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 86,700 $ 222,683 $ 258,702 $ (345,402 ) $ 222,683 30. Guarantor financial information (continued) Condensed Consolidating Statement of Income (Loss) Three months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 13,243 $ — $ 747,978 $ (13,243 ) $ 747,978 Cost of revenue — 707 480,705 — 481,412 Gross profit $ 13,243 $ (707 ) $ 267,273 $ (13,243 ) $ 266,566 Operating expenses: Selling, general and administrative expenses 4,935 5,154 171,164 (13,243 ) 168,010 Amortization of acquired intangible assets — — 9,372 — 9,372 Other operating (income) expense, net — — (4,844 ) — (4,844 ) Income (loss) from operations $ 8,308 $ (5,861 ) $ 91,581 $ — $ 94,028 Foreign exchange gains (losses), net (299 ) 372 7,377 — 7,450 Interest income (expense), net (4,651 ) — (4,488 ) — (9,139 ) Intercompany interest income (expense), net 18,031 (6,291 ) (11,740 ) — — Other income (expense), net — — 5,385 — 5,385 Income (loss) before equity-method investment activity, net and income tax expense $ 21,389 $ (11,780 ) $ 88,115 $ — $ 97,724 Gain (loss) on equity-method investment activity, net 11,069 85,383 19,820 (116,279 ) (7 ) Income before income tax expense $ 32,458 $ 73,603 $ 107,935 $ (116,279 ) $ 97,717 Income tax expense 1,567 — 22,547 — 24,114 Net income $ 30,891 $ 73,603 $ 85,388 $ (116,279 ) $ 73,603 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 30,891 $ 73,603 $ 85,388 $ (116,279 ) $ 73,603 Condensed Consolidating Statement of Income (Loss) Nine Months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 37,301 $ — $ 2,165,451 $ (37,301 ) $ 2,165,451 Cost of revenue — 707 1,387,927 — 1,388,634 Gross profit $ 37,301 $ (707 ) $ 777,524 $ (37,301 ) $ 776,817 Operating expenses: Selling, general and administrative expenses 8,936 16,916 526,800 (37,367 ) 515,285 Amortization of acquired intangible assets 48 — 29,086 — 29,134 Other operating (income) expense, net 17 — (4,930 ) — (4,913 ) Income (loss) from operations $ 28,300 $ (17,623 ) $ 226,568 $ 66 $ 237,311 Foreign exchange gains (losses), net 862 874 13,317 — 15,053 Interest income (expense), net (11,629 ) — (16,017 ) — (27,646 ) Intercompany interest income (expense), net 58,156 (13,594 ) (44,562 ) — — Other income (expense), net — — 30,683 — 30,683 Income (loss) before equity-method investment activity, net and income tax expense $ 75,689 $ (30,343 ) $ 209,989 $ 66 $ 255,401 Gain (loss) on equity-method investment activity, net 22,100 233,215 81,864 (337,201 ) (22 ) Income before income tax expense $ 97,789 $ 202,872 $ 291,853 $ (337,135 ) $ 255,379 Income tax expense 4,854 — 48,414 — 53,268 Net income $ 92,935 $ 202,872 $ 243,439 $ (337,135 ) $ 202,111 Net loss attributable to redeemable non-controlling interest — — (761 ) — (761 ) Net income attributable to Genpact Limited shareholders $ 92,935 $ 202,872 $ 244,200 $ (337,135 ) $ 202,872 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | 30. Guarantor financial information (continued) Condensed Consolidating Statement of Comprehensive Income (Loss) Three months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 41,267 $ 88,121 $ 99,986 $ (141,253 ) $ 88,120 $ — Other comprehensive income: Currency translation adjustments (21,772 ) (39,404 ) (39,404 ) 61,175 (39,404 ) $ — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 1,485 (11,360 ) (11,360 ) 9,875 (11,360 ) — Retirement benefits, net of taxes 54 346 346 (400 ) 346 $ — Other comprehensive income (loss) (20,233 ) (50,418 ) (50,418 ) 70,650 (50,418 ) — Comprehensive income (loss) $ 21,034 $ 37,703 $ 49,569 $ (70,603 ) $ 37,702 $ — Nine months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 86,700 $ 222,683 $ 258,702 $ (345,402 ) $ 222,683 $ — Other comprehensive income: Currency translation adjustments (14,307 ) (24,677 ) (24,677 ) 38,984 (24,677 ) $ — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (53 ) 1,683 1,683 (1,630 ) 1,683 — Retirement benefits, net of taxes 63 773 773 (836 ) 773 $ — Other comprehensive income (loss) (14,297 ) (22,221 ) (22,221 ) 36,518 (22,221 ) — Comprehensive income (loss) $ 72,403 $ 200,462 $ 236,481 $ (308,885 ) $ 200,462 $ — Three months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 30,891 $ 73,603 $ 85,388 $ (116,279 ) $ 73,603 $ — Other comprehensive income: Currency translation adjustments (35,035 ) (58,134 ) (58,134 ) 93,169 (58,134 ) — Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (29,242 ) (28,918 ) (28,918 ) 58,160 (28,918 ) — Retirement benefits, net of taxes (6 ) 692 692 (686 ) 692 — Other comprehensive income (loss) (64,283 ) (86,360 ) (86,360 ) 150,643 (86,360 ) — Comprehensive income (loss) $ (33,392 ) $ (12,757 ) $ (972 ) $ 34,364 $ (12,757 ) $ — Nine months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 92,935 $ 202,872 $ 244,200 $ (337,135 ) $ 202,872 $ (761 ) Other comprehensive income: Currency translation adjustments (88,743 ) (141,150 ) (141,150 ) 229,893 (141,150 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) (71,352 ) (75,729 ) (74,279 ) 145,631 (75,729 ) — Retirement benefits, net of taxes 67 1,822 1,198 (1,265 ) 1,822 — Other comprehensive income (loss) (160,028 ) (215,057 ) (214,231 ) 374,259 (215,057 ) (424 ) Comprehensive income (loss) $ (67,093 ) $ (12,185 ) $ 29,969 $ 37,124 $ (12,185 ) $ (1,185 ) |
Condensed Consolidating Cash Flow | Condensed Consolidating Statement of Cash Flow Nine months ended September 30, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (148,906 ) $ (15,281 ) $ 79,397 $ 426,110 $ 341,319 Investing activities Purchase of property, plant and equipment — — (55,072 ) — (55,071 ) Payment for internally generated intangible assets (including intangibles under development) — — (26,261 ) — (26,261 ) Proceeds from sale of property, plant and equipment — — 1,621 — 1,621 Investment in subsidiaries (6,848 ) — — 6,848 — Dividend received — 30,000 — (30,000 ) — Payment for purchase of bonds, intercompany — (103,100 ) — 103,100 — Proceeds from redemption of debentures, intercompany 86,818 35,100 — (121,918 ) — Payment for business acquisitions, net of cash acquired — — (6,305 ) — (6,305 ) Payment for purchase of redeemable non-controlling interest — — — — — Net cash (used for) provided by investing activities $ 79,970 $ (38,000 ) (86,017 ) $ (41,970 ) $ (86,016 ) Financing activities Repayment of capital lease obligations — — (6,256 ) — (6,256 ) Proceeds from long-term debt — — — — — Repayment of long-term debt (3,750 ) — (21,750 ) — (25,500 ) Proceeds from short-term borrowings — — 50,000 — 50,000 Repayment of short-term borrowings (25,000 ) — (75,000 ) — (100,000 ) Proceeds from intercompany loans 105,885 122,500 245,037 (473,422 ) — Repayment of intercompany loans (5,000 ) (7,000 ) (35,312 ) 47,312 — Proceeds from issuance of common shares under stock-based compensation plans — 15,949 — — 15,949 Proceeds from issuance of common shares — — 6,848 (6,848 ) — Payment for net settlement of stock-based awards — (3,177 ) — — (3,177 ) Payment of earn-out/deferred consideration — — (12,790 ) — (12,790 ) Dividend paid — (48,515 ) (30,000 ) 30,000 (48,515 ) Payment for stock repurchased and retired — (23,901 ) — — (23,901 ) Payment for expenses related to stock repurchase — (12 ) — — (12 ) Proceeds from issuance of bonds, intercompany — — 103,100 (103,100 ) — Payment for redemption of debentures, intercompany — — (121,918 ) 121,918 — Net cash (used for) provided by financing activities $ 72,134 $ 55,844 $ 101,959 $ (384,140 ) $ (154,202 ) Effect of exchange rate changes (1,703 ) - (10,922 ) — (12,625 ) Net increase (decrease) in cash and cash equivalents 3,198 2,563 95,340 — 101,101 Cash and cash equivalents at the beginning of the period 12,797 2,505 353,094 — 368,396 Cash and cash equivalents at the end of the period $ 14,292 $ 5,068 $ 437,512 $ — $ 456,872 30. Guarantor financial information (continued) Condensed Consolidating Statement of Cash Flow Nine months ended September 30, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (169,540 ) $ (896 ) $ (9,110 ) $ 382,352 $ 202,806 Investing activities Purchase of property, plant and equipment (1 ) — (68,026 ) — (68,027 ) Payment for internally generated intangible assets — — (19,397 ) — (19,397 ) Proceeds from sale of property, plant and equipment — — 499 — 499 Investment in equity affiliates — — — — — Investment in subsidiaries (109,759 ) — 8,861 100,898 — Proceeds from redemption of debentures, intercompany 91,761 — — (91,761 ) — Payment for business acquisitions, net of cash acquired — — (108,105 ) — (108,105 ) Payment for purchase of redeemable non-controlling interest — — (4,730 ) — (4,730 ) Net cash (used for) provided by investing activities $ (17,999 ) $ — $ (190,898 ) $ 9,137 $ (199,760 ) Financing activities Repayment of capital lease obligations — — (1,954 ) — (1,954 ) 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 (1,225 ) — (156,461 ) — (157,686 ) Proceeds from short-term borrowings 100,000 — 125,000 — 225,000 Repayment of short-term borrowings — — (65,000 ) — (65,000 ) Proceeds from intercompany loans 58,638 226,500 298,467 (583,605 ) — Repayment of intercompany loans (62,979 ) (51,500 ) (86,839 ) 201,318 — Proceeds from issuance of common shares under stock-based compensation plans — 12,275 100,963 (100,963 ) 12,275 Payment for net settlement of stock-based awards — (14,947 ) — — (14,947 ) Payment of earn-out/deferred consideration — — (1,559 ) — (1,559 ) Dividend paid — (42,901 ) — — (42,901 ) Payment for stock repurchased and retired — (130,103 ) — — (130,103 ) Payment for expenses related to stock repurchase — (82 ) — — (82 ) Payment for redemption of debentures, intercompany — — (91,761 ) 91,761 — Net cash (used for) provided by financing activities $ 194,434 $ (758 ) $ 145,749 $ (391,489 ) $ (52,064 ) Effect of exchange rate changes (5,375 ) — (48,845 ) — (54,220 ) Net increase (decrease) in cash and cash equivalents 6,895 (1,654 ) (54,259 ) — (49,018 ) 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 $ 6,027 $ 482 $ 394,721 $ — $ 401,230 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Sep. 30, 2019EmployeeCountry |
Accounting Policies [Abstract] | |
Number of employees around the globe, minimum | Employee | 93,000 |
Number of countries in which entity operates | Country | 30 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Estimated Useful Lives of Intangible Assets Acquired (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Customer-Related Intangible Assets | Minimum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 2 years |
Customer-Related Intangible Assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 11 years |
Marketing-Related Intangible Assets | Minimum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 2 years |
Marketing-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 |
Technology-related intangible assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 8 years |
Other Intangible Assets | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2019 | |
Minimum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Additional terms of renewal option | 1 year | 1 year | ||||
Additional terms of termination option | 1 year | |||||
Maximum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Additional terms of renewal option | 5 years | 5 years | ||||
Additional terms of termination option | 5 years | |||||
Topic 842 | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Additional lease liabilities | $ 328,978 | |||||
Additional right of use assets | $ 309,687 | |||||
General Electric Company | Credit Concentration Risk | Receivables | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk, percentage | 16.00% | 11.00% | ||||
General Electric Company | Credit Concentration Risk | Revenue From Contract With Customer | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk, percentage | 14.00% | 9.00% | 14.00% | 9.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 842 on consolidated financial statements (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Schedule Of Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other current assets | $ 236,761 | $ 212,477 | ||
Operating lease ROU assets | 299,868 | |||
Other assets: Finance lease ROU assets | 34,137 | |||
Other assets | 185,499 | 155,159 | ||
Property, plant and equipment, net | 216,385 | 212,715 | ||
Accrued expenses and other current liabilities | 630,151 | 571,350 | ||
Operating leases liability (current) | 50,048 | |||
Operating leases liability (non-current) | 278,449 | |||
Other liabilities | $ 194,113 | $ 165,226 | ||
Topic 842 | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other current assets | $ 208,948 | |||
Operating lease ROU assets | 273,732 | |||
Other assets: Finance lease ROU assets | $ 35,955 | |||
Finance Lease, Right-of-use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | |||
Other assets | $ 150,033 | |||
Property, plant and equipment, net | 210,372 | |||
Accrued expenses and other current liabilities | 570,227 | |||
Operating leases liability (current) | 42,200 | |||
Operating leases liability (non-current) | 258,378 | |||
Other liabilities | 164,459 | |||
Topic 842 | Adoption of ASC 842 Increase/(Decrease) | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other current assets | [1] | (3,529) | ||
Operating lease ROU assets | 273,732 | |||
Other assets: Finance lease ROU assets | [2] | $ 35,955 | ||
Finance Lease, Right-of-use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | |||
Other assets | [3] | $ (5,126) | ||
Property, plant and equipment, net | [4] | (2,343) | ||
Accrued expenses and other current liabilities | [5] | (1,123) | ||
Operating leases liability (current) | 42,200 | |||
Operating leases liability (non-current) | 258,378 | |||
Other liabilities | [6] | $ (767) | ||
[1] | Includes prepaid rent amounting to $3,160 and leasehold land amounting to $369, which have been reclassified to operating lease ROU assets and finance lease ROU assets, respectively. | |||
[2] | The balance is included in “other assets” in the consolidated balance sheet. | |||
[3] | Includes prepaid rent amounting to $284 and leasehold land amounting to $4,842, which have been reclassified to operating lease ROU assets and finance lease ROU assets, respectively. | |||
[4] | Represents vehicles recognized as capital leases under ASC 840 and reclassified as a finance lease ROU asset. | |||
[5] | Includes accrued lease liabilities of $4,562 adjusted with operating lease ROU assets offset by additional current portion of finance lease liabilities of $3,439 recognized upon the adoption of ASC 842. | |||
[6] | Includes accrued lease liabilities of $25,728 adjusted with operating lease ROU assets offset by additional finance lease liabilities of $24,961 recognized upon the adoption of ASC 842. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 842 on consolidated financial statements (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Revenue Recognition [Line Items] | ||
Operating lease ROU assets | $ 299,868 | |
Finance lease ROU assets | 34,137 | |
Topic 842 | ||
Revenue Recognition [Line Items] | ||
Operating lease ROU assets | $ 273,732 | |
Finance lease ROU assets | $ 35,955 | |
Prepaid Rent as Component of Prepaid Expenses and Other Current Assets | ||
Revenue Recognition [Line Items] | ||
Operating lease ROU assets | 3,160 | |
Leasehold Land as Component of Prepaid Expenses and Other Current Assets | ||
Revenue Recognition [Line Items] | ||
Finance lease ROU assets | 369 | |
Prepaid Rent as Component of Other Assets | ||
Revenue Recognition [Line Items] | ||
Operating lease ROU assets | 284 | |
Leasehold Land as Component of Other Assets | ||
Revenue Recognition [Line Items] | ||
Finance lease ROU assets | 4,842 | |
Accrued Lease Liabilities as Component of Accrued Expenses and Other Current Liabilities | ||
Revenue Recognition [Line Items] | ||
Operating lease ROU assets | 4,562 | |
Accrued Expenses and Other Current Liabilities | Topic 842 | ||
Revenue Recognition [Line Items] | ||
Additional current portion of finance lease liabilities | 3,439 | |
Accrued Lease Liabilities as Component of Other Liabilities | ||
Revenue Recognition [Line Items] | ||
Operating lease ROU assets | 25,728 | |
Other Liabilities | Topic 842 | ||
Revenue Recognition [Line Items] | ||
Additional finance lease liabilities | $ 24,961 |
Business Acquisitions - Risk Ca
Business Acquisitions - Risk Canvas Holdings, LLC - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 07, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,389,487 | $ 1,393,832 | $ 1,337,122 | |
riskCanvas Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Jan. 7, 2019 | |||
Ownership percentage acquired | 100.00% | |||
Purchase consideration | $ 5,747 | |||
Cash consideration to acquired certain assets and assumed certain liabilities | 5,700 | |||
Goodwill | 2,547 | |||
Acquisition related cost | 967 | |||
Acquired assets | 660 | |||
Liabilities assumed | 707 | |||
riskCanvas Holdings, LLC | Customer-Related Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 1,700 | |||
riskCanvas Holdings, LLC | Software-Related Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 1,400 | |||
riskCanvas Holdings, LLC | Restrictive Covenants | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 100 |
Business Acquisitions - Barkawi
Business Acquisitions - Barkawi Management Consultants GmbH and Co. KG and Certain Related Entities - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Payment for business acquisitions, net of cash acquired | $ 6,305 | $ 108,105 | |||
Goodwill | 1,389,487 | $ 1,393,832 | $ 1,337,122 | ||
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 | ||||
Acquired intangible assets, weighted average amortization period | 3 years | ||||
Goodwill | $ 79,928 | ||||
Acquisition related cost | 1,842 | ||||
Acquired assets | 17,314 | ||||
Liabilities assumed | 8,827 | ||||
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 - Commonw
Business Acquisitions - Commonwealth Informatics Inc. - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 03, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Payment for business acquisitions, net of cash acquired | $ 6,305 | $ 108,105 | |||
Goodwill | 1,389,487 | $ 1,393,832 | $ 1,337,122 | ||
Commonwealth | |||||
Business Acquisition [Line Items] | |||||
Date of acquisition | Jul. 3, 2018 | ||||
Ownership percentage acquired | 100.00% | ||||
Purchase consideration | $ 17,938 | ||||
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 | 0 | ||||
Consideration payable | $ 0 | ||||
Acquired intangible assets, weighted average amortization period | 4 years | ||||
Goodwill | $ 11,587 | ||||
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 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Abstract] | ||
Cash and other bank balances | $ 456,872 | $ 368,396 |
Total | $ 456,872 | $ 368,396 |
Accounts Receivable, Net of R_3
Accounts Receivable, Net of Reserve for Doubtful Receivables - Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Opening balance | $ 23,960 | $ 23,660 | $ 23,660 |
Additions charged/reversal released to cost and expense | 7,169 | $ 1,705 | 1,857 |
Deductions/effect of exchange rate fluctuations | (1,199) | (1,557) | |
Closing balance | $ 29,930 | $ 23,960 |
Accounts Receivable, Net of R_4
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | |||
Gross accounts receivable | $ 893,162,000 | $ 798,144,000 | |
Reserve for doubtful receivables | 29,930,000 | 23,960,000 | $ 23,660,000 |
Net accounts receivable | 863,232,000 | 774,184,000 | |
Accounts receivable due after one year | 6,247,000 | 4,099,000 | |
Accounts receivable from related parties | 94,000 | 99,000 | |
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 | Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative instruments, assets | [1],[2] | $ 28,412 | $ 44,099 |
Deferred compensation plan assets | [1],[3] | 9,906 | 1,613 |
Total, assets | 38,318 | 45,712 | |
Earn-out consideration | [4],[5] | 477 | 17,073 |
Derivative instruments, liabilities | [2],[4] | 31,053 | 35,245 |
Deferred compensation plan liability | [4],[6] | 9,642 | 1,582 |
Total, liabilities | 41,172 | 53,900 | |
Fair Value, Inputs, Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative instruments, assets | [1],[2] | 28,412 | 44,099 |
Total, assets | 28,412 | 44,099 | |
Derivative instruments, liabilities | [2],[4] | 31,053 | 35,245 |
Total, liabilities | 31,053 | 35,245 | |
Fair Value, Inputs, Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Deferred compensation plan assets | [1],[3] | 9,906 | 1,613 |
Total, assets | 9,906 | 1,613 | |
Earn-out consideration | [4],[5] | 477 | 17,073 |
Deferred compensation plan liability | [4],[6] | 9,642 | 1,582 |
Total, liabilities | $ 10,119 | $ 18,655 | |
[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 fair value 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 portfolio and is therefore classified within level 3 of the fair value hierarchy. |
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 | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | $ 3,463 | $ 23,609 | $ 17,073 | $ 24,732 | |
Payments made on earn-out consideration | [1] | (3,000) | (83) | (17,098) | (1,559) |
Change in fair value of earn-out consideration | [2] | (5,341) | (5,974) | ||
Others | [3] | 14 | 55 | 502 | 1,041 |
Closing balance | $ 477 | $ 18,240 | $ 477 | $ 18,240 | |
[1] | Includes the interest payment on earn-out consideration in excess of the acquisition date fair value, which is included in “cash flows from operating activities” amounting to $680 and $4,308 for three months and nine months ended September 30, 2019, respectively. | ||||
[2] | Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. | ||||
[3] | “ |
Fair Value Measurements - Rol_2
Fair Value Measurements - Roll-Forward of Fair Value of Earn-out Consideration Categorized as Level 3 in Fair Value Hierarchy (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||
Payment of earn-out consideration include in cash flows from operating activities | $ 680 | $ 4,308 |
Fair Value Measurements - Rol_3
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 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | $ 9,141 | $ 1,613 | |||
Additions (net of redemption) | 579 | $ 595 | 7,564 | $ 595 | |
Change in fair value of deferred compensation plan assets | [1] | 186 | 13 | 729 | 13 |
Others | [2] | (20) | (20) | ||
Closing balance | $ 9,906 | $ 588 | $ 9,906 | $ 588 | |
[1] | Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. | ||||
[2] | “Others” is comprised of certain administrative charges which are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Fair Value Measurements - Rol_4
Fair Value Measurements - Roll-Forward of Fair Value of Deferred Compensation Liabilities Categorized as Level 3 in Fair Value Hierarchy (Detail) - Deferred Compensation Liabilities - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | $ 8,994 | $ 1,582 | |||
Additions (net of redemption) | 587 | $ 595 | 7,564 | $ 595 | |
Change in fair value of deferred compensation plan liabilities | [1] | 61 | 3 | 496 | 3 |
Closing balance | $ 9,642 | $ 598 | $ 9,642 | $ 598 | |
[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 ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Gains (losses) recognized in income on ineffective portion of derivatives and excluded from effectiveness testing | $ 0 | $ 0 | $ 0 | $ 0 |
Forward Foreign Exchange Contracts | Maximum | ||||
Derivative [Line Items] | ||||
Derivative financial instrument contracts, maturity period | 51 months | |||
Interest Rate Swaps | Maximum | ||||
Derivative [Line Items] | ||||
Derivative financial instrument contracts, maturity period | 51 months |
Derivative Financial Instrume_4
Derivative Financial Instruments - Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (2,641,000) | $ 8,854,000 |
United States Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,239,000,000 | 1,439,000,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (7,997,000) | (3,643,000) |
United States Dollars (sell) Mexican Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 3,000,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 109,000 | |
United States Dollars (sell) Philippines Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 49,650,000 | 55,800,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 2,000 | (1,510,000) |
Euro (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 117,964,000 | 136,412,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 8,237,000 | 4,804,000 |
Pound Sterling (buy) United States Dollars (sell) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 128,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (128,000) | |
Euro (sell) Romanian Leu (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 36,039,000 | 41,198,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (362,000) | (299,000) |
Singapore Dollars (buy) United States Dollars (sell) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 9,939,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (159,000) | |
Japanese Yen (sell) Chinese Renminbi (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 37,024,000 | 40,568,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (2,127,000) | (2,195,000) |
Pound Sterling (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 13,705,000 | 27,517,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 1,070,000 | 495,000 |
Australian Dollars (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 50,760,000 | 89,780,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 4,093,000 | 3,548,000 |
United States Dollars (sell) Hungarian Forint (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 6,000,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (103,000) | |
Interest Rate Swap Floating To Fixed [Member] | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 485,060,000 | 507,425,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (5,404,000) | $ 7,782,000 |
[1] | Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. | ||
[2] | Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. Notional amounts are denominated in U.S. dollars. |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Value of Derivative Instruments and Location in Financial Statements (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | $ 2,169 | $ 11,490 |
Other Assets | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 3 | |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 965 | 225 |
Other Liabilities | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 4 | |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 20,611 | 23,038 |
Cash Flow Hedges | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 5,629 | 9,571 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 8,149 | 15,148 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | $ 21,935 | $ 19,872 |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Comprehensive Income (Loss) [Line Items] | ||||
Opening balance, before-tax amount | $ 11,185 | $ (10,277) | $ (2,411) | $ 50,529 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount | 5,915 | 173 | 15,105 | 12,734 |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | (9,115) | (38,242) | 13,671 | (86,487) |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | (15,030) | (38,415) | (1,434) | (99,221) |
Closing balance, before-tax amount | (3,845) | (48,692) | (3,845) | (48,692) |
Opening balance, tax (expense) or benefit | (6,077) | 1,824 | (5,524) | (14,436) |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit | (1,950) | 47 | (5,553) | (2,329) |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | 1,720 | 9,544 | (2,436) | 21,163 |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | 3,670 | 9,497 | 3,117 | 23,492 |
Closing balance, tax (expense) or benefit | (2,407) | 11,321 | (2,407) | 11,321 |
Opening balance, net of tax amount | 5,108 | (8,453) | (7,935) | 36,093 |
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount | 3,965 | 220 | 9,552 | 10,405 |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | (7,395) | (28,698) | 11,235 | (65,324) |
Gain (loss) on cash flow hedging derivatives, net of taxes amount | (11,360) | (28,918) | 1,683 | (75,729) |
Closing balance, net of tax amount | $ (6,252) | (37,371) | $ (6,252) | (37,371) |
ASU 2018-02 | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Adoption of ASU 2018-02, tax (expense) or benefit | 2,265 | 2,265 | ||
Adoption of ASU 2018-02, net of tax amount | $ 2,265 | $ 2,265 |
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 | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $ (9,115) | $ (38,242) | $ 13,671 | $ (86,487) | |
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 5,915 | 173 | 15,105 | 12,734 | |
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | (3,209) | (6,450) | 4,203 | (23,279) | |
Net revenues | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 1,919 | 1,002 | 4,441 | (1,767) | |
Cost of Revenue | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 2,294 | (1,510) | 5,274 | 9,438 | |
Selling, General and Administrative Expenses | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 595 | (382) | 1,497 | 2,543 | |
Interest Expense | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | 1,107 | 1,063 | 3,893 | 2,520 | |
Forward Foreign Exchange Contracts | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | (7,261) | (38,960) | 22,964 | (91,180) | |
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] | (3,209) | (6,450) | 4,203 | (23,279) |
Interest Rate Swaps | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | $ (1,854) | $ 718 | $ (9,293) | $ 4,693 | |
[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 | Sep. 30, 2019 | Dec. 31, 2018 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Advance income and non-income taxes | $ 103,239 | $ 58,701 |
Contract asset | 23,084 | 22,472 |
Prepaid expenses | 28,509 | 25,996 |
Derivative instruments | 22,780 | 34,528 |
Employee advances | 4,093 | 3,772 |
Deposits | 1,555 | 2,758 |
Advances to suppliers | 1,454 | 1,998 |
Others | 52,047 | 62,252 |
Prepaid expenses and other current assets, net | $ 236,761 | $ 212,477 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Property, plant and equipment, gross | $ 695,136 | $ 660,754 |
Less: Accumulated depreciation and amortization | (478,751) | (448,039) |
Property, plant and equipment, net | $ 216,385 | $ 212,715 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ 70,234 | $ 47,612 | ||
Effect of Reclassification of Foreign Exchange (Gains) Losses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ (94) | $ 79 | (224) | (423) |
Depreciation Expense on Property, Plant And Equipment Including Computer Software | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ 17,106 | $ 15,579 | $ 49,799 | $ 45,788 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Opening balance | $ 1,393,832 | $ 1,337,122 |
Goodwill relating to acquisitions consummated during the period | 2,547 | 91,936 |
Impact of measurement period adjustments | (988) | 816 |
Effect of exchange rate fluctuations | (5,904) | (36,042) |
Closing balance | $ 1,389,487 | $ 1,393,832 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill deductible for tax purposes | $ 190,781 | $ 190,781 | $ 187,546 | ||
Amortization of acquired intangible assets | 6,960 | $ 9,372 | 23,565 | $ 29,134 | |
Tangible assets write-down | 3,511 | 1,538 | |||
Computer Software | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Tangible assets write-down | 0 | 688 | 0 | 1,200 | |
Internally developed and other intangibles | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization of acquired intangible assets | 4,990 | 499 | 13,244 | 1,389 | |
Internally developed and other intangibles | Effect of Reclassification of Foreign Exchange (Gains) Losses | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization of acquired intangible assets | $ (27) | $ (2) | (62) | (12) | |
Technology Related Intangible Assets | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Tangible assets write-down | $ 3,511 | $ 338 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 591,540 | $ 565,313 |
Accumulated amortization & Impairment | 428,969 | 388,226 |
Net | 162,571 | 177,087 |
Customer-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 366,819 | 368,558 |
Accumulated amortization & Impairment | 320,866 | 306,582 |
Net | 45,953 | 61,976 |
Marketing-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 55,065 | 54,714 |
Accumulated amortization & Impairment | 49,060 | 46,591 |
Net | 6,005 | 8,123 |
Technology-related intangible assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 138,825 | 76,790 |
Accumulated amortization & Impairment | 54,408 | 33,976 |
Net | 84,417 | 42,814 |
Other Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,180 | 1,204 |
Accumulated amortization & Impairment | 1,124 | 1,077 |
Net | 56 | 127 |
Intangible Assets Under Development | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 29,651 | 64,047 |
Accumulated amortization & Impairment | 3,511 | |
Net | $ 26,140 | $ 64,047 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Aug. 09, 2018 | Aug. 08, 2018 | |
Line Of Credit Facility [Line Items] | |||||
Fund-based and non-fund-based credit facilities limits available | $ 14,245,000 | $ 14,281,000 | |||
Utilization of credit facility for non fund-based usage | 7,510,000 | 7,389,000 | |||
Credit facility, amount utilized | 247,098,000 | 297,098,000 | |||
Short-term borrowings | $ 245,000,000 | $ 295,000,000 | |||
Revolving credit facility, expiration month and year | Aug. 8, 2023 | ||||
Margin over LIBOR | 1.375% | 1.375% | 1.375% | ||
Percentage of commitment fee | 0.20% | 0.20% | |||
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 | $ 2,098,000 | |||
Fund-Based Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Margin over LIBOR | 1.375% | 1.375% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2019USD ($)Day | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Aug. 09, 2018USD ($) | Aug. 08, 2018USD ($) | |
Debt Instrument [Line Items] | |||||||
Maturity date of loan agreement | Aug. 8, 2023 | ||||||
Margin over LIBOR | 1.375% | 1.375% | 1.375% | ||||
Debt discount and underwriting fee | $ 4,293,000 | ||||||
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] | |||||||
Debt amortization expense | $ 1,769,000 | $ 2,158,000 | |||||
Maturity date of loan agreement | Aug. 8, 2023 | ||||||
Debt amount outstanding | $ 635,731,000 | 660,841,000 | |||||
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 | ||||||
Amended 2015 Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt amortization expense | $ 2,029,000 | ||||||
Margin over LIBOR | 1.375% | ||||||
Credit facility, base rate | 0.375% | ||||||
Amended 2015 Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 500,000,000 | $ 500,000,000 | |||||
Debt amortization expense | $ 82,000 | ||||||
Maturity date of loan agreement | Aug. 8, 2023 | ||||||
Amended 2015 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 | $ 1,319,000 | 1,713,000 | |||||
Debt amount outstanding | $ 348,681,000 | $ 348,287,000 | |||||
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2019 | $ 8,372 | |
2020 | 33,509 | |
2021 | 33,537 | |
2022 | 33,564 | |
2023 | 526,749 | |
Total | $ 635,731 | $ 660,841 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued expenses | $ 181,954 | $ 179,843 |
Accrued employee cost | 233,796 | 210,251 |
Earn-out consideration | 369 | 16,875 |
Statutory liabilities | 56,161 | 42,728 |
Retirement benefits | 26,207 | 22,921 |
Derivative instruments | 9,114 | 15,373 |
Contract liabilities (Note 19) | 93,414 | 64,744 |
Finance lease liability | 9,323 | |
Other liabilities | 19,813 | 16,807 |
Capital lease obligations | 1,808 | |
Accrued expenses and other current liabilities, net | $ 630,151 | $ 571,350 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Accrued employee cost | $ 8,770 | $ 6,341 |
Earn-out consideration | 108 | 198 |
Retirement benefits | 56,689 | 50,370 |
Derivative instruments | 21,939 | 19,872 |
Contract liabilities (Note 19) | 68,340 | 53,796 |
Finance lease liability | 20,962 | |
Others | 17,305 | 32,935 |
Capital lease obligations | 1,714 | |
Other Liabilities | $ 194,113 | $ 165,226 |
Employee Benefit Plans - Net De
Employee Benefit Plans - Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Service costs | $ 2,108 | $ 1,762 | $ 6,439 | $ 5,815 |
Interest costs | 1,138 | 900 | 3,479 | 2,834 |
Amortization of actuarial loss | 290 | 344 | 887 | 899 |
Expected return on plan assets | (643) | (689) | (1,967) | (2,169) |
Net defined benefit plan costs | $ 2,893 | $ 2,317 | $ 8,838 | $ 7,379 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | $ 21,175 | $ 16,133 | $ 63,078 | $ 51,554 |
India | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 7,805 | 6,269 | 21,757 | 18,274 |
U.K. | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 2,634 | 2,033 | 9,290 | 7,357 |
China | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 4,693 | 4,388 | 14,111 | 13,190 |
Other Regions | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 1,388 | 980 | 4,244 | 3,312 |
U.S. | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | $ 4,655 | $ 2,463 | $ 13,676 | $ 9,421 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | ||||||
Deferred compensation plan liability | $ 9,642 | $ 9,642 | $ 1,582 | |||
Cash surrender value of policies | 9,906 | 9,906 | $ 1,613 | |||
Change in fair value of plan assets | 186 | $ 13 | 729 | $ 13 | ||
Change in fair value of deferred compensation liabilities | $ 61 | $ 3 | $ 496 | $ 3 | ||
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 | |||||
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% | |||||
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% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Apr. 05, 2019 | Apr. 11, 2012 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | May 09, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock based compensation cost | $ 21,042,000 | $ 13,224,000 | $ 60,525,000 | $ 31,567,000 | |||
Options granted, contractual period, years | 10 years | ||||||
Unrecognized stock-based compensation cost for options | 26,518,000 | $ 26,518,000 | |||||
Employee Stock Option | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Weighted average remaining requisite vesting period | 3 years 8 months 12 days | ||||||
Restricted Share Units (RSUs) | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Weighted average remaining requisite vesting period | 1 year 9 months 18 days | ||||||
Unrecognized stock-based compensation cost | 18,419,000 | $ 18,419,000 | |||||
Performance Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Weighted average remaining requisite vesting period | 1 year 9 months 18 days | ||||||
Unrecognized stock-based compensation cost | $ 66,249,000 | $ 66,249,000 | |||||
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) | 195,221 | 181,643 | |||||
Compensation expense for ESPP | $ 278,000 | $ 210,000 | $ 781,000 | $ 591,000 | |||
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 | 8,000,000 | 5,593,200 | |||||
Number of common shares authorized for issuance | 23,000,000 | 15,000,000 | |||||
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 Determining Fair Value of Options Granted (Detail) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life (in months) | 84 months | 84 months |
Risk-free rate of interest, minimum | 1.56% | 2.67% |
Risk-free rate of interest, maximum | 2.63% | 2.93% |
Volatility, minimum | 21.00% | 22.55% |
Volatility, maximum | 21.38% | 22.73% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 0.82% | 0.95% |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 1.08% | 1.01% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Activity (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | ||
Shares arising out of options | |||
Outstanding, shares arising out of options, beginning balance | shares | 7,261,675 | ||
Granted, shares arising out of options | shares | 1,881,068 | ||
Forfeited, shares arising out of options | shares | (85,000) | ||
Exercised, shares arising out of options | shares | (622,494) | ||
Outstanding, shares arising out of options, ending balance | shares | 8,435,249 | 7,261,675 | |
Vested and expected to vest thereafter, shares arising out of options | shares | 8,046,532 | [1] | |
Vested and exercisable, shares arising out of options | shares | 3,186,076 | ||
Weighted average grant-date fair value of options granted during the period | $ 6.98 | ||
Weighted average exercise price | |||
Outstanding weighted average exercise price, beginning balance | 23.61 | ||
Granted, weighted average exercise price | 28.50 | ||
Forfeited, weighted average exercise price | 29.91 | ||
Exercised, weighted average exercise price | 15.27 | ||
Outstanding weighted average exercise price, ending balance | 25.25 | $ 23.61 | |
Vested and expected to vest thereafter, weighted average exercise price | 25.08 | [1] | |
Vested and exercisable, weighted average exercise price | $ 19.08 | ||
Weighted average remaining contractual life (years) | |||
Outstanding weighted average remaining contractual life (years) | 6 years 8 months 12 days | 6 years 4 months 24 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | 6 years 8 months 12 days | [1] | |
Vested and exercisable, weighted average remaining contractual life (years) | 3 years 7 months 6 days | ||
Aggregate intrinsic value | |||
Exercised, aggregate intrinsic value | $ | $ 13,858 | ||
Outstanding aggregate intrinsic value, ending balance | $ | 114,171 | ||
Vested and expected to vest thereafter, aggregate intrinsic value | $ | 110,206 | [1] | |
Vested and exercisable, aggregate intrinsic value | $ | $ 62,668 | ||
[1] | Options expected to vest reflect the application of an estimated forfeiture rate. |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Share Units Activity (Detail) - Restricted Share Units (RSUs) | 9 Months Ended | |
Sep. 30, 2019$ / sharesshares | ||
Number of Restricted Share Units | ||
Outstanding number of shares (Units), beginning balance | 1,528,999 | |
Granted, number of shares (Units) | 218,965 | |
Vested, number of shares (Units) | (611,871) | [1] |
Forfeited, number of shares (Units) | (65,067) | |
Outstanding number of shares (Units), ending balance | 1,071,026 | |
Expected to vest, number of shares (Units) | 983,141 | [2] |
Weighted Average Grant Date Fair Value | ||
Outstanding weighted average grant date fair value, beginning balance | $ / shares | $ 27.45 | |
Granted, weighted average grant date fair value | $ / shares | 34.34 | |
Vested, weighted average grant date fair value | $ / shares | 26.38 | [1] |
Forfeited, weighted average grant date fair value | $ / shares | 30.51 | |
Outstanding weighted average grant date fair value, ending balance | $ / shares | $ 29.29 | |
[1] | ||
[2] | The number of RSUs expected to vest reflects the application of 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 | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2017 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vested, number of shares (Units) | [1] | 611,871 | |
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 505,512 | ||
Shares to be issued on vested awards other than options | 52,875 | ||
Vested RSU issued during the period | 52,405 | ||
[1] |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Performance Units Activity (Detail) - Performance Units | 9 Months Ended | |
Sep. 30, 2019$ / sharesshares | ||
Number of Performance Units | ||
Outstanding number of shares (Units), beginning balance | 3,712,402 | |
Granted, number of shares (Units) | 1,577,530 | |
Forfeited, number of shares (Units) | (183,696) | |
Adjustment upon final determination of level of performance goal achievement | (13,996) | [1] |
Outstanding number of shares (Units), ending balance | 5,092,239 | |
Expected to vest, number of shares (Units) | 5,368,588 | [2] |
Weighted Average Grant Date Fair Value | ||
Outstanding weighted average grant date fair value, beginning balance | $ / shares | $ 28.40 | |
Granted, weighted average grant date fair value | $ / shares | 34.68 | |
Forfeited, weighted average grant date fair value | $ / shares | 28.74 | |
Adjustment upon final determination of level of performance goal achievement | $ / shares | 30.68 | [1] |
Outstanding weighted average grant date fair value, ending balance | $ / shares | $ 30.33 | |
Maximum shares eligible to receive | ||
Outstanding maximum shares eligible to receive, beginning balance | 3,712,402 | |
Granted, maximum shares eligible to receive | 3,155,060 | |
Forfeited, maximum shares eligible to receive | (200,635) | |
Adjustment upon final determination of level of performance goal achievement | (13,996) | [1] |
Outstanding maximum shares eligible to receive, ending balance | 6,652,830 | |
[1] | Represents an adjustment made in March 2019 to the number of shares subject to the PUs granted in 2018 upon certification of the level of achievement of the performance targets underlying such awards. | |
[2] | The number of PUs expected to vest reflects the application of an estimated forfeiture rate and the expected achievement of higher-than-target performance for the PUs granted during the year. |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Sep. 20, 2019 | Jun. 21, 2019 | Mar. 20, 2019 | Feb. 07, 2019 | Sep. 19, 2018 | Jun. 20, 2018 | Mar. 21, 2018 | Feb. 12, 2018 | Jan. 17, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
Class Of Stock [Line Items] | ||||||||||||||||
Stock repurchase authorized amount | $ 1,250,000,000 | $ 1,250,000,000 | ||||||||||||||
Shares repurchased during period value | $ 970,000,000 | |||||||||||||||
Shares repurchased during period | 37,239,353 | |||||||||||||||
Common stock shares repurchased price per share | $ 39.29 | $ 31.62 | $ 26.04 | |||||||||||||
Shares repurchased and retired (in shares) | 608,285 | 4,114,882 | ||||||||||||||
Aggregate amount of common stock shares repurchased | $ 23,901,000 | $ 130,103,000 | ||||||||||||||
Percentage Increase In Quarterly Cash Dividend | 13.00% | 25.00% | ||||||||||||||
Quarterly dividend declared | $ 0.085 | $ 0.075 | $ 0.085 | $ 0.075 | $ 0.255 | $ 0.225 | $ 0.075 | $ 0.06 | ||||||||
Annual dividend | $ 0.30 | $ 0.24 | ||||||||||||||
Initial dividend paid | $ 16,208,000 | $ 16,188,000 | $ 16,119,000 | $ 14,253,000 | $ 14,240,000 | $ 14,408,000 | ||||||||||
Dividends payable, date declared | Feb. 7, 2019 | Feb. 12, 2018 | ||||||||||||||
Dividends paid per share | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.075 | $ 0.075 | $ 0.075 | ||||||||||
Planned annual dividend | $ 0.34 | $ 0.30 | ||||||||||||||
First Quarter Dividend | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Dividend payment date | Mar. 20, 2019 | Mar. 21, 2018 | ||||||||||||||
Dividends payable, date of record | Mar. 8, 2019 | Mar. 9, 2018 | ||||||||||||||
Second Quarter Dividend | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Dividend payment date | Jun. 21, 2019 | Jun. 20, 2018 | ||||||||||||||
Dividends payable, date of record | Jun. 12, 2019 | Jun. 8, 2018 | ||||||||||||||
Third Quarter Dividend | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Dividend payment date | Sep. 20, 2019 | Sep. 19, 2018 | ||||||||||||||
Dividends payable, date of record | Sep. 11, 2019 | Sep. 10, 2018 | ||||||||||||||
Share Repurchase Open Market | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Aggregate amount of common stock shares repurchased | $ 23,901,000 | $ 130,103,000 | ||||||||||||||
Accelerated Share Repurchase Agreement | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Final delivery of common shares received | 163,975 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 60,194 | 3,222,303 | 2,375,425 | 2,051,062 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share (Abstract) | ||||
Net income available to Genpact Limited common shareholders | $ 88,120 | $ 73,603 | $ 222,683 | $ 202,872 |
Weighted average number of common shares used in computing basic earnings per common share | 190,599,049 | 190,024,924 | 190,071,418 | 190,991,405 |
Dilutive effect of stock-based awards | 5,291,792 | 3,090,845 | 4,612,281 | 3,265,366 |
Weighted average number of common shares used in computing dilutive earnings per common share | 195,890,841 | 193,115,769 | 194,683,699 | 194,256,771 |
Basic | $ 0.46 | $ 0.39 | $ 1.17 | $ 1.06 |
Diluted | $ 0.45 | $ 0.38 | $ 1.14 | $ 1.04 |
Net Revenues - Net Revenues Dis
Net Revenues - Net Revenues Disaggregated by Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 888,799 | $ 747,978 | $ 2,579,804 | $ 2,165,451 |
General Electric Company | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 121,096 | 64,507 | 348,742 | 188,000 |
Global Clients | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 767,703 | $ 683,471 | $ 2,231,062 | $ 1,977,451 |
Net Revenues - Net Revenues for
Net Revenues - Net Revenues for Service Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 888,799 | $ 747,978 | $ 2,579,804 | $ 2,165,451 |
Business Process Outsourcing | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 749,322 | 622,940 | 2,173,562 | 1,802,912 |
Information Technology Services | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 139,477 | $ 125,038 | $ 406,242 | $ 362,539 |
Net Revenues - Revenues from Cl
Net Revenues - Revenues from Clients Based on Industrial Serviced (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 888,799 | $ 747,978 | $ 2,579,804 | $ 2,165,451 |
Banking, Financial Services and Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 279,445 | 258,372 | 792,388 | 803,771 |
Consumer Goods, Retail, Life Sciences and Healthcare | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 272,029 | 230,177 | 801,440 | 648,705 |
High tech, Manufacturing and Services | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 337,325 | $ 259,429 | $ 985,976 | $ 712,975 |
Net Revenues - Net Revenues fro
Net Revenues - Net Revenues from Geographic Areas Based on Location of Service Delivery Centers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 888,799 | $ 747,978 | $ 2,579,804 | $ 2,165,451 |
India | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 472,896 | 408,169 | 1,395,989 | 1,262,225 |
Asia, other than India | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 86,009 | 83,844 | 261,462 | 241,535 |
North and Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 233,062 | 152,121 | 622,873 | 456,241 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 96,832 | $ 103,844 | $ 299,480 | $ 205,450 |
Net Revenues - Additional Infor
Net Revenues - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Revenues [Abstract] | |
Billing cycle period | 30 days |
Net Revenues - Details of Compa
Net Revenues - Details of Company's Contract Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues [Abstract] | |||||
Advance from customers, Opening balance | $ 39,110 | $ 30,341 | $ 22,892 | $ 26,266 | |
Advance from customers, Impact of opening balance offset with contract asset | 7,943 | 3,821 | |||
Advance from customers, Gross opening balance | 47,053 | 30,341 | 26,713 | 26,266 | |
Advance from customers, Additions | 25,455 | 9,152 | 67,281 | 25,888 | |
Advance from customers, Effect of business combination | 273 | 444 | 273 | ||
Advance from customers, Revenue recognized | (20,425) | (11,934) | (39,955) | (23,837) | |
Advance from customers, Currency translation adjustments | (452) | (147) | (450) | (905) | |
Advance from customers, Others | (2,402) | ||||
Advance from customers, Gross closing balance | 51,631 | 27,685 | 51,631 | 27,685 | |
Advance from customers, Impact of closing balance offset with contract asset | (8,286) | (8,286) | |||
Advance from customers, Closing balance | [1] | 43,345 | 27,685 | 43,345 | 27,685 |
Deferred transition revenue, Opening balance | 104,276 | 98,962 | 95,648 | 101,785 | |
Deferred transition revenue, Impact of opening balance offset with contract asset | 43,648 | 23,735 | 25,604 | 21,348 | |
Deferred transition revenue, Gross opening balance | 147,924 | 122,697 | 121,252 | 123,133 | |
Deferred transition revenue, Additions | 31,226 | 16,881 | 85,203 | 49,592 | |
Deferred transition revenue, Effect of business combinations | 75 | 75 | |||
Deferred transition revenue, Revenue recognized | (15,832) | (21,143) | (43,159) | (53,499) | |
Deferred transition revenue, Currency translation adjustments | (397) | (383) | (375) | (1,174) | |
Deferred transition revenue, Gross closing balance | 162,921 | 118,127 | 162,921 | 118,127 | |
Deferred transition revenue, Impact of closing balance offset with contract asset | (44,512) | (22,586) | (44,512) | (22,586) | |
Deferred transition revenue, Closing Balance | [1] | $ 118,409 | $ 95,541 | $ 118,409 | $ 95,541 |
[1] | Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet. |
Net Revenues - Estimated Revenu
Net Revenues - Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 161,754 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 93,414 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
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 | $ 51,454 |
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 | $ 14,645 |
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 | $ 2,241 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Net Revenues - Estimated Reve_2
Net Revenues - Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation (Detail 1) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 161,754 |
Net Revenues - Details of Com_2
Net Revenues - Details of Company's Contract Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues [Abstract] | |||||
Opening balance | $ 48,593 | $ 41,671 | $ 45,035 | $ 43,366 | |
Impact of opening balance offset with contract liability | 51,591 | 23,735 | 29,425 | 21,348 | |
Gross opening balance | 100,184 | 65,406 | 74,460 | 64,714 | |
Additions | 9,496 | 9,710 | 58,594 | 29,228 | |
Reduction in revenue recognized | (9,899) | (10,706) | (33,273) | (29,532) | |
Gross closing balance | 99,781 | 64,410 | 99,781 | 64,410 | |
Impact of closing balance offset with contract liability | (52,798) | (22,586) | (52,798) | (22,586) | |
Closing balance | [1] | $ 46,983 | $ 41,824 | $ 46,983 | $ 41,824 |
[1] | Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. |
Net Revenues - Details of Com_3
Net Revenues - Details of Company's Contract Cost Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Opening balance | $ 160,193 | |||
Closing balance | $ 206,503 | 206,503 | ||
Sales Incentive Programs | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Opening balance | 35,593 | $ 24,808 | 25,891 | $ 23,227 |
Closing balance | 35,146 | 26,459 | 35,146 | 26,459 |
Amortization | 4,496 | 3,666 | 13,044 | 10,509 |
Process Transition Activities | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Opening balance | 156,585 | 137,370 | 134,302 | 139,284 |
Closing balance | 171,357 | 133,651 | 171,357 | 133,651 |
Amortization | $ 15,106 | $ 19,974 | $ 41,701 | $ 54,874 |
Cost of Revenue - Schedule of C
Cost of Revenue - Schedule of Cost of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Component Of Operating Other Cost And Expense [Line Items] | ||||
Cost of revenue | $ 573,659 | $ 481,412 | $ 1,664,040 | $ 1,388,634 |
Personnel expenses | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Cost of revenue | 422,508 | 326,717 | 1,224,610 | 959,648 |
Operational expenses | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Cost of revenue | 129,294 | 141,236 | 376,878 | 389,702 |
Depreciation and amortization | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Cost of revenue | $ 21,857 | $ 13,459 | $ 62,552 | $ 39,284 |
Selling, General and Administ_3
Selling, General and Administrative Expenses - Schedule of Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Component Of Operating Other Cost And Expense [Line Items] | ||||
Selling, general and administrative expenses | $ 194,537 | $ 168,010 | $ 582,251 | $ 515,285 |
Personnel expenses | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Selling, general and administrative expenses | 147,037 | 125,838 | 438,427 | 380,532 |
Operational expenses | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Selling, general and administrative expenses | 44,965 | 39,551 | 136,461 | 126,860 |
Depreciation and amortization | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Selling, general and administrative expenses | $ 2,535 | $ 2,621 | $ 7,363 | $ 7,893 |
Other Operating (Income) Expe_3
Other Operating (Income) Expense, Net - Schedule of Other Operating (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income And Expenses [Abstract] | ||||
Other operating (income) expense | $ 59 | $ (191) | $ (3,421) | $ (477) |
Provision for impairment of intangible assets and property, plant and equipment | 688 | 3,511 | 1,538 | |
Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) | (5,341) | (5,974) | ||
Other operating (income) expense, net | $ 59 | $ (4,844) | $ 90 | $ (4,913) |
Interest Income (Expense), Ne_2
Interest Income (Expense), Net - Schedule of Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income And Expenses [Abstract] | ||||
Interest income | $ 1,968 | $ 3,328 | $ 4,758 | $ 8,472 |
Interest expense | (12,189) | (12,467) | (38,245) | (36,118) |
Interest income (expense), net | $ (10,221) | $ (9,139) | $ (33,487) | $ (27,646) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 21.90% | 20.80% | |
Unrecognized tax benefits | $ 26,511 | $ 26,722 | |
Unrecognized tax benefits that would impact ETR | 25,273 | 25,485 | |
Unrecognized tax benefits, interest on income taxes accrued | 5,600 | 5,081 | |
Unrecognized tax benefits, excluding exchange rate differences for interest recognized | 519 | 467 | |
Accrued penalties | $ 914 | $ 995 |
Income Taxes - Activities Relat
Income Taxes - Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Income Tax Uncertainties [Abstract] | |
Beginning balance | $ 26,722 |
Decrease related to prior year tax positions | (56) |
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (217) |
Increase related to current year tax positions, including recorded in acquisition accounting | 225 |
Effect of exchange rate changes | (163) |
Ending balance | $ 26,511 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Affiliate of Significant Shareholder | ||||
Related Party Transaction [Line Items] | ||||
Recognized net revenues | $ 159 | $ 113 | $ 478 | $ 552 |
Non-Consolidating Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Cost of revenue | 185 | 414 | 521 | 863 |
Selling, general and administrative expenses, net of recovery | 47 | 68 | 101 | 158 |
Significant Shareholder of Company | ||||
Related Party Transaction [Line Items] | ||||
Selling, general and administrative expenses, net of recovery | $ 23 | $ 10 | $ 105 | $ 20 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Nonoperating Income Expense [Abstract] | ||||
Government incentives | $ 5,154 | $ 3,976 | $ 30,850 | |
Other income/(expense) | $ 704 | 231 | 1,091 | (167) |
Other Income (expense), net | $ 704 | $ 5,385 | $ 5,067 | $ 30,683 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies [Line Items] | ||
Bank guarantees, outstanding | $ 9,609 | $ 9,487 |
Capital Addition Purchase Commitments | ||
Commitments And Contingencies [Line Items] | ||
Commitments and contingencies | $ 8,246 | $ 4,859 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Finance lease ROU assets | $ 34,137 |
Finance Lease Right Of Use Asset Statement Of Financial Position Extensible List | us-gaap:OtherAssetsNoncurrent |
Maximum | |
Lessee Lease Description [Line Items] | |
Lease renewal term | 5 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost of Operating and Finance Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | ||
Finance lease cost | |||
Amortization of ROU assets | [1] | $ 2,326 | $ 6,905 |
Interest on lease liabilities | [2] | 698 | 2,193 |
Operating lease cost | [3] | 18,510 | 50,538 |
Short term lease cost | [3] | 128 | 356 |
Variable lease cost | [3] | 1,113 | 2,992 |
Total lease cost | $ 22,775 | $ 62,984 | |
[1] | Included in “depreciation and amortization” in consolidated statements of income. | ||
[2] | Included in “interest income (expense), net” in consolidated statements of income. | ||
[3] | Included in “cost of revenue” and “selling, general and administrative expenses” in consolidated statements of income. |
Leases - Schedule of Other info
Leases - Schedule of Other information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | |||
Weighted-average remaining lease term—finance leases | 4 years 2 months 4 days | 4 years 2 months 4 days | |
Weighted-average remaining lease term—operating leases | 6 years 11 months 26 days | 6 years 11 months 26 days | |
Weighted-average discount rate—finance leases | 9.23% | 9.23% | |
Weighted-average discount rate—operating leases | 6.93% | 6.93% | |
Operating cash flows from finance leases | $ 698 | $ 2,182 | |
Operating cash flows from operating leases | 18,321 | 52,807 | |
Financing cash flows from finance leases | $ 2,154 | $ 6,256 | $ 1,954 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Finance lease | |
2019 | $ 2,761 |
2020 | 10,451 |
2021 | 8,225 |
2022 | 5,457 |
2023 | 4,090 |
2024 | 3,548 |
Thereafter | 1,572 |
Total lease payments | 36,104 |
Less: Imputed interest | 5,819 |
Total lease liabilities | 30,285 |
Operating lease | |
2019 | 16,940 |
2020 | 69,166 |
2021 | 64,634 |
2022 | 57,066 |
2023 | 51,354 |
2024 | 42,851 |
Thereafter | 119,458 |
Total lease payments | 421,469 |
Less: Imputed interest | 92,972 |
Total lease liabilities | $ 328,497 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Oct. 17, 2019 | Feb. 07, 2019 | Feb. 12, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||||||
Dividends payable, date declared | Feb. 7, 2019 | Feb. 12, 2018 | |||||||
Quarterly dividend declared | $ 0.085 | $ 0.075 | $ 0.085 | $ 0.075 | $ 0.255 | $ 0.225 | $ 0.075 | $ 0.06 | |
Third Quarter Dividend | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividend payment date | Sep. 20, 2019 | Sep. 19, 2018 | |||||||
Dividends payable, date of record | Sep. 11, 2019 | Sep. 10, 2018 | |||||||
Third Quarter Dividend | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable, date declared | Oct. 17, 2019 | ||||||||
Quarterly dividend declared | $ 0.085 | ||||||||
Dividend payment date | Dec. 18, 2019 | ||||||||
Dividends payable, date of record | Dec. 9, 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 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||||||
Cash and cash equivalents | $ 456,872 | $ 368,396 | ||||
Accounts receivable, net | 863,232 | 774,184 | ||||
Prepaid expenses and other current assets | 236,761 | 212,477 | ||||
Total current assets | 1,556,865 | 1,355,057 | ||||
Property, plant and equipment, net | 216,385 | 212,715 | ||||
Operating lease right-of-use assets | 299,868 | |||||
Deferred tax assets | 80,583 | 74,566 | ||||
Investment in equity affiliates | 836 | |||||
Intangible assets, net | 162,571 | 177,087 | ||||
Goodwill | 1,389,487 | 1,393,832 | $ 1,337,122 | |||
Contract cost assets | 206,503 | 160,193 | ||||
Other assets | 185,499 | 155,159 | ||||
Total assets | 4,097,761 | 3,529,445 | ||||
Current liabilities | ||||||
Short-term borrowings | 245,000 | 295,000 | ||||
Current portion of long-term debt | 33,504 | 33,483 | ||||
Accounts payable | 20,954 | 42,584 | ||||
Income taxes payable | 84,537 | 33,895 | ||||
Accrued expenses and other current liabilities | 630,151 | 571,350 | ||||
Operating leases liability | 50,048 | |||||
Total current liabilities | 1,064,194 | 976,312 | ||||
Long-term debt, less current portion | 950,908 | 975,645 | ||||
Operating leases liability | 278,449 | |||||
Deferred tax liabilities | 4,413 | 8,080 | ||||
Other liabilities | 194,113 | 165,226 | ||||
Total liabilities | 2,492,077 | 2,125,263 | ||||
Shareholders' equity | 1,605,684 | $ 1,583,370 | 1,404,182 | $ 1,285,018 | $ 1,296,425 | $ 1,424,044 |
Commitments and contingencies | ||||||
Total liabilities and equity | 4,097,761 | 3,529,445 | ||||
Eliminations | ||||||
Current assets | ||||||
Intercompany Accounts receivable, net | (91,478) | (89,958) | ||||
Intercompany loans | (2,710,596) | (2,284,486) | ||||
Intercompany other receivable | (313,166) | (203,544) | ||||
Total current assets | (3,115,239) | (2,577,988) | ||||
Intercompany loans | (600,000) | (600,000) | ||||
Investment in subsidiaries | (4,466,945) | (4,179,210) | ||||
Intercompany Investment in debentures | (598,416) | (622,312) | ||||
Intercompany other receivable | (57,861) | (83,169) | ||||
Total assets | (8,838,462) | (8,062,679) | ||||
Current liabilities | ||||||
Current portion of Intercompany loans | (2,710,596) | (2,284,486) | ||||
Intercompany accounts payable | (91,478) | (89,958) | ||||
Intercompany other payable | (313,166) | (203,544) | ||||
Total current liabilities | (3,115,239) | (2,577,988) | ||||
Intercompany other payable | (57,861) | (83,169) | ||||
Intercompany loans and debenture, less current portion | (1,198,416) | (1,222,312) | ||||
Total liabilities | (4,371,517) | (3,883,469) | ||||
Shareholders' equity | (4,466,945) | (4,179,210) | ||||
Commitments and contingencies | ||||||
Total liabilities and equity | (8,838,462) | (8,062,679) | ||||
Issuer/Subsidiary | Reportable Legal Entities | ||||||
Current assets | ||||||
Cash and cash equivalents | 14,292 | 12,797 | ||||
Intercompany Accounts receivable, net | 91,478 | 89,958 | ||||
Intercompany loans | 664,702 | 447,578 | ||||
Intercompany other receivable | 40,040 | 33,224 | ||||
Prepaid expenses and other current assets | 2,618 | 2,242 | ||||
Total current assets | 813,130 | 585,799 | ||||
Property, plant and equipment, net | 203 | 388 | ||||
Intercompany loans | 100,000 | 100,000 | ||||
Investment in subsidiaries | 563,063 | 548,654 | ||||
Intercompany Investment in debentures | 480,023 | 571,919 | ||||
Other assets | 435 | 682 | ||||
Total assets | 1,956,854 | 1,807,442 | ||||
Current liabilities | ||||||
Short-term borrowings | 75,000 | 100,000 | ||||
Current portion of Intercompany loans | 229,457 | 128,572 | ||||
Current portion of long-term debt | 4,972 | 4,961 | ||||
Accounts payable | 176 | 1,636 | ||||
Intercompany other payable | 54,260 | 47,844 | ||||
Accrued expenses and other current liabilities | 9,046 | 5,248 | ||||
Total current liabilities | 372,910 | 288,261 | ||||
Long-term debt, less current portion | 437,326 | 440,665 | ||||
Intercompany loans and debenture, less current portion | 500,000 | 500,000 | ||||
Other liabilities | 109 | 197 | ||||
Total liabilities | 1,310,345 | 1,229,123 | ||||
Shareholders' equity | 646,509 | 578,319 | ||||
Commitments and contingencies | ||||||
Total liabilities and equity | 1,956,854 | 1,807,442 | ||||
Parent Company | Reportable Legal Entities | ||||||
Current assets | ||||||
Cash and cash equivalents | 5,068 | 2,505 | ||||
Intercompany loans | 10,900 | 1,300 | ||||
Intercompany other receivable | 131,757 | 52,783 | ||||
Prepaid expenses and other current assets | 1,602 | 1,278 | ||||
Total current assets | 149,327 | 57,866 | ||||
Investment in subsidiaries | 3,279,928 | 3,073,467 | ||||
Intercompany Investment in debentures | 118,393 | 50,393 | ||||
Intercompany other receivable | 57,861 | 83,169 | ||||
Total assets | 3,605,510 | 3,264,895 | ||||
Current liabilities | ||||||
Current portion of Intercompany loans | 1,965,037 | 1,849,537 | ||||
Accounts payable | 13 | 520 | ||||
Intercompany other payable | 94,452 | 70,973 | ||||
Accrued expenses and other current liabilities | 5,820 | 5,157 | ||||
Total current liabilities | 2,065,321 | 1,926,187 | ||||
Other liabilities | 136 | 154 | ||||
Total liabilities | 2,065,457 | 1,926,341 | ||||
Shareholders' equity | 1,540,053 | 1,338,554 | ||||
Commitments and contingencies | ||||||
Total liabilities and equity | 3,605,510 | 3,264,895 | ||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||
Current assets | ||||||
Cash and cash equivalents | 437,512 | 353,094 | ||||
Accounts receivable, net | 863,232 | 774,184 | ||||
Intercompany loans | 2,034,993 | 1,835,608 | ||||
Intercompany other receivable | 141,369 | 117,537 | ||||
Prepaid expenses and other current assets | 232,541 | 208,957 | ||||
Total current assets | 3,709,647 | 3,289,380 | ||||
Property, plant and equipment, net | 216,182 | 212,327 | ||||
Operating lease right-of-use assets | 299,868 | |||||
Intercompany loans | 500,000 | 500,000 | ||||
Deferred tax assets | 80,583 | 74,566 | ||||
Investment in subsidiaries | 623,954 | 557,089 | ||||
Investment in equity affiliates | 836 | |||||
Intangible assets, net | 162,571 | 177,087 | ||||
Goodwill | 1,389,487 | 1,393,832 | ||||
Contract cost assets | 206,503 | 160,193 | ||||
Other assets | 185,064 | 154,477 | ||||
Total assets | 7,373,859 | 6,519,787 | ||||
Current liabilities | ||||||
Short-term borrowings | 170,000 | 195,000 | ||||
Current portion of Intercompany loans | 516,102 | 306,377 | ||||
Current portion of long-term debt | 28,532 | 28,522 | ||||
Accounts payable | 20,765 | 40,428 | ||||
Intercompany accounts payable | 91,478 | 89,958 | ||||
Income taxes payable | 84,537 | 33,895 | ||||
Intercompany other payable | 164,454 | 84,727 | ||||
Accrued expenses and other current liabilities | 615,286 | 560,945 | ||||
Operating leases liability | 50,048 | |||||
Total current liabilities | 1,741,202 | 1,339,852 | ||||
Long-term debt, less current portion | 513,582 | 534,980 | ||||
Operating leases liability | 278,449 | |||||
Deferred tax liabilities | 4,413 | 8,080 | ||||
Intercompany other payable | 57,861 | 83,169 | ||||
Intercompany loans and debenture, less current portion | 698,416 | 722,312 | ||||
Other liabilities | 193,869 | 164,875 | ||||
Total liabilities | 3,487,792 | 2,853,268 | ||||
Shareholders' equity | 3,886,067 | 3,666,519 | ||||
Commitments and contingencies | ||||||
Total liabilities and equity | $ 7,373,859 | $ 6,519,787 |
Guarantor Financial Informati_5
Guarantor Financial Information - Condensed Consolidating Statement of Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net revenues | $ 888,799 | $ 747,978 | $ 2,579,804 | $ 2,165,451 |
Cost of revenue | 573,659 | 481,412 | 1,664,040 | 1,388,634 |
Gross profit | 315,140 | 266,566 | 915,764 | 776,817 |
Operating expenses: | ||||
Selling, general and administrative expenses | 194,537 | 168,010 | 582,251 | 515,285 |
Amortization of acquired intangible assets | 6,960 | 9,372 | 23,565 | 29,134 |
Other operating (income) expense, net | 59 | (4,844) | 90 | (4,913) |
Income from operations | 113,584 | 94,028 | 309,858 | 237,311 |
Foreign exchange gains (losses), net | 6,727 | 7,450 | 3,646 | 15,053 |
Interest income (expense), net | (10,221) | (9,139) | (33,487) | (27,646) |
Other income (expense), net | 704 | 5,385 | 5,067 | 30,683 |
Income before equity-method investment activity, net and income tax expense | 110,794 | 97,724 | 285,084 | 255,401 |
Gain (loss) on equity-method investment activity, net | (5) | (7) | (16) | (22) |
Income before income tax expense | 110,789 | 97,717 | 285,068 | 255,379 |
Income tax expense | 22,669 | 24,114 | 62,385 | 53,268 |
Net income | 88,120 | 73,603 | 222,683 | 202,111 |
Redeemable non-controlling interest, Net income (loss) | (761) | |||
Net income attributable to Genpact Limited shareholders | 88,120 | 73,603 | 222,683 | 202,872 |
Eliminations | ||||
Net revenues | (18,089) | (13,243) | (44,112) | (37,301) |
Gross profit | (18,089) | (13,243) | (44,112) | (37,301) |
Operating expenses: | ||||
Selling, general and administrative expenses | (18,089) | (13,243) | (44,112) | (37,367) |
Income from operations | 66 | |||
Income before equity-method investment activity, net and income tax expense | 66 | |||
Gain (loss) on equity-method investment activity, net | (141,253) | (116,279) | (345,402) | (337,201) |
Income before income tax expense | (141,253) | (116,279) | (345,402) | (337,135) |
Net income | (141,253) | (116,279) | (345,402) | (337,135) |
Net income attributable to Genpact Limited shareholders | (141,253) | (116,279) | (345,402) | (337,135) |
Issuer/Subsidiary | Reportable Legal Entities | ||||
Net revenues | 18,089 | 13,243 | 44,112 | 37,301 |
Gross profit | 18,089 | 13,243 | 44,112 | 37,301 |
Operating expenses: | ||||
Selling, general and administrative expenses | 2,357 | 4,935 | 7,746 | 8,936 |
Amortization of acquired intangible assets | 48 | |||
Other operating (income) expense, net | 17 | |||
Income from operations | 15,731 | 8,308 | 36,366 | 28,300 |
Foreign exchange gains (losses), net | 91 | (299) | 593 | 862 |
Interest income (expense), net | (5,275) | (4,651) | (16,090) | (11,629) |
Intercompany interest income (expense), net | 21,427 | 18,031 | 57,869 | 58,156 |
Other income (expense), net | 30 | |||
Income before equity-method investment activity, net and income tax expense | 31,974 | 21,389 | 78,769 | 75,689 |
Gain (loss) on equity-method investment activity, net | 10,957 | 11,069 | 13,056 | 22,100 |
Income before income tax expense | 42,932 | 32,458 | 91,825 | 97,789 |
Income tax expense | 1,665 | 1,567 | 5,125 | 4,854 |
Net income | 41,267 | 30,891 | 86,700 | 92,935 |
Net income attributable to Genpact Limited shareholders | 41,267 | 30,891 | 86,700 | 92,935 |
Parent Company | Reportable Legal Entities | ||||
Cost of revenue | 707 | 707 | ||
Gross profit | (707) | (707) | ||
Operating expenses: | ||||
Selling, general and administrative expenses | 7,915 | 5,154 | 22,690 | 16,916 |
Income from operations | (7,915) | (5,861) | (22,690) | (17,623) |
Foreign exchange gains (losses), net | 103 | 372 | 70 | 874 |
Intercompany interest income (expense), net | (4,048) | (6,291) | (13,384) | (13,594) |
Other income (expense), net | 0 | |||
Income before equity-method investment activity, net and income tax expense | (11,860) | (11,780) | (36,003) | (30,343) |
Gain (loss) on equity-method investment activity, net | 99,980 | 85,383 | 258,686 | 233,215 |
Income before income tax expense | 88,120 | 73,603 | 222,683 | 202,872 |
Net income | 88,120 | 73,603 | 222,683 | 202,872 |
Net income attributable to Genpact Limited shareholders | 88,120 | 73,603 | 222,683 | 202,872 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Net revenues | 888,799 | 747,978 | 2,579,804 | 2,165,451 |
Cost of revenue | 573,659 | 480,705 | 1,664,040 | 1,387,927 |
Gross profit | 315,140 | 267,273 | 915,764 | 777,524 |
Operating expenses: | ||||
Selling, general and administrative expenses | 202,354 | 171,164 | 595,927 | 526,800 |
Amortization of acquired intangible assets | 6,960 | 9,372 | 23,565 | 29,086 |
Other operating (income) expense, net | 59 | (4,844) | 90 | (4,930) |
Income from operations | 105,767 | 91,581 | 296,181 | 226,568 |
Foreign exchange gains (losses), net | 6,533 | 7,377 | 2,983 | 13,317 |
Interest income (expense), net | (4,946) | (4,488) | (17,397) | (16,017) |
Intercompany interest income (expense), net | (17,379) | (11,740) | (44,485) | (44,562) |
Other income (expense), net | 704 | 5,385 | 5,037 | 30,683 |
Income before equity-method investment activity, net and income tax expense | 90,680 | 88,115 | 242,319 | 209,989 |
Gain (loss) on equity-method investment activity, net | 30,311 | 19,820 | 73,643 | 81,864 |
Income before income tax expense | 120,990 | 107,935 | 315,963 | 291,853 |
Income tax expense | 21,004 | 22,547 | 57,260 | 48,414 |
Net income | 99,986 | 85,388 | 258,702 | 243,439 |
Redeemable non-controlling interest, Net income (loss) | (761) | |||
Net income attributable to Genpact Limited shareholders | $ 99,986 | $ 85,388 | $ 258,702 | $ 244,200 |
Guarantor Financial Informati_6
Guarantor Financial Information - Condensed Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income (loss) | $ 88,120 | $ 73,603 | $ 222,683 | $ 202,872 |
Other comprehensive income: | ||||
Currency translation adjustments | (39,404) | (58,134) | (24,677) | (141,150) |
Net income (loss) on cash flow hedging derivatives, net of taxes | (11,360) | (28,918) | 1,683 | (75,729) |
Retirement benefits, net of taxes | 346 | 692 | 773 | 1,822 |
Other comprehensive income (loss) | (50,418) | (86,360) | (22,221) | (215,057) |
Comprehensive income (loss) | 37,702 | (12,757) | 200,462 | (12,185) |
Redeemable non-controlling interest, Net income (loss) | (761) | |||
Redeemable non-controlling interest, Other comprehensive income: | ||||
Redeemable non-controlling interest, Currency translation adjustments | (424) | |||
Redeemable non-controlling interest, Other comprehensive income (loss) | (424) | |||
Redeemable non-controlling interest, Comprehensive income (loss) | (1,185) | |||
Eliminations | ||||
Net income (loss) | (141,253) | (116,279) | (345,402) | (337,135) |
Other comprehensive income: | ||||
Currency translation adjustments | 61,175 | 93,169 | 38,984 | 229,893 |
Net income (loss) on cash flow hedging derivatives, net of taxes | 9,875 | 58,160 | (1,630) | 145,631 |
Retirement benefits, net of taxes | (400) | (686) | (836) | (1,265) |
Other comprehensive income (loss) | 70,650 | 150,643 | 36,518 | 374,259 |
Comprehensive income (loss) | (70,603) | 34,364 | (308,885) | 37,124 |
Issuer/Subsidiary | Reportable Legal Entities | ||||
Net income (loss) | 41,267 | 30,891 | 86,700 | 92,935 |
Other comprehensive income: | ||||
Currency translation adjustments | (21,772) | (35,035) | (14,307) | (88,743) |
Net income (loss) on cash flow hedging derivatives, net of taxes | 1,485 | (29,242) | (53) | (71,352) |
Retirement benefits, net of taxes | 54 | (6) | 63 | 67 |
Other comprehensive income (loss) | (20,233) | (64,283) | (14,297) | (160,028) |
Comprehensive income (loss) | 21,034 | (33,392) | 72,403 | (67,093) |
Parent Company | Reportable Legal Entities | ||||
Net income (loss) | 88,121 | 73,603 | 222,683 | 202,872 |
Other comprehensive income: | ||||
Currency translation adjustments | (39,404) | (58,134) | (24,677) | (141,150) |
Net income (loss) on cash flow hedging derivatives, net of taxes | (11,360) | (28,918) | 1,683 | (75,729) |
Retirement benefits, net of taxes | 346 | 692 | 773 | 1,822 |
Other comprehensive income (loss) | (50,418) | (86,360) | (22,221) | (215,057) |
Comprehensive income (loss) | 37,703 | (12,757) | 200,462 | (12,185) |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Net income (loss) | 99,986 | 85,388 | 258,702 | 244,200 |
Other comprehensive income: | ||||
Currency translation adjustments | (39,404) | (58,134) | (24,677) | (141,150) |
Net income (loss) on cash flow hedging derivatives, net of taxes | (11,360) | (28,918) | 1,683 | (74,279) |
Retirement benefits, net of taxes | 346 | 692 | 773 | 1,198 |
Other comprehensive income (loss) | (50,418) | (86,360) | (22,221) | (214,231) |
Comprehensive income (loss) | $ 49,569 | $ (972) | $ 236,481 | 29,969 |
Redeemable non-controlling interest, Net income (loss) | $ (761) |
Guarantor Financial Informati_7
Guarantor Financial Information - Condensed Consolidating Cash Flow (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | |||
Net cash (used for) provided by operating activities | $ 341,319 | $ 202,806 | |
Investing activities | |||
Purchase of property, plant and equipment | (55,071) | (68,027) | |
Payment for internally generated intangible assets (including intangibles under development) | (26,261) | (19,397) | |
Proceeds from sale of property, plant and equipment | 1,621 | 499 | |
Payment for business acquisitions, net of cash acquired | (6,305) | (108,105) | |
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Net cash used for investing activities | (86,016) | (199,760) | |
Financing activities | |||
Repayment of capital/finance lease obligations | $ (2,154) | (6,256) | (1,954) |
Payment of debt issuance costs | (4,293) | ||
Proceeds from long-term debt | 129,186 | ||
Repayment of long-term debt | (25,500) | (157,686) | |
Proceeds from short-term borrowings | 50,000 | 225,000 | |
Repayment of short-term borrowings | (100,000) | (65,000) | |
Proceeds from issuance of common shares under stock-based compensation plans | 15,949 | 12,275 | |
Payment for net settlement of stock-based awards | (3,177) | (14,947) | |
Payment of earn-out/deferred consideration | (12,790) | (1,559) | |
Dividend paid | (48,515) | (42,901) | |
Payment for stock repurchased and retired | (23,901) | (130,103) | |
Payment for expenses related to stock repurchase | (12) | (82) | |
Net cash used for financing activities | (154,202) | (52,064) | |
Effect of exchange rate changes | (12,625) | (54,220) | |
Net increase (decrease) in cash and cash equivalents | 101,101 | (49,018) | |
Cash and cash equivalents at the beginning of the period | 368,396 | 504,468 | |
Cash and cash equivalents at the end of the period | 456,872 | 456,872 | 401,230 |
Eliminations | |||
Operating activities | |||
Net cash (used for) provided by operating activities | 426,110 | 382,352 | |
Investing activities | |||
Investment in subsidiaries | 6,848 | 100,898 | |
Dividend received | (30,000) | ||
Payment for purchase of bonds, intercompany | 103,100 | ||
Proceeds from redemption of debentures, intercompany | (121,918) | (91,761) | |
Net cash used for investing activities | (41,970) | 9,137 | |
Financing activities | |||
Proceeds from intercompany loans | (473,422) | (583,605) | |
Repayment of intercompany loans | 47,312 | 201,318 | |
Proceeds from issuance of common shares under stock-based compensation plans | (100,963) | ||
Proceeds from issuance of common shares | (6,848) | ||
Dividend paid | 30,000 | ||
Proceeds from issuance of bonds, intercompany | (103,100) | ||
Payment for redemption of debentures, intercompany | 121,918 | 91,761 | |
Net cash used for financing activities | (384,140) | (391,489) | |
Issuer/Subsidiary | Reportable Legal Entities | |||
Operating activities | |||
Net cash (used for) provided by operating activities | (148,906) | (169,540) | |
Investing activities | |||
Purchase of property, plant and equipment | (1) | ||
Investment in subsidiaries | (6,848) | (109,759) | |
Proceeds from redemption of debentures, intercompany | 86,818 | 91,761 | |
Net cash used for investing activities | 79,970 | (17,999) | |
Financing activities | |||
Proceeds from long-term debt | 100,000 | ||
Repayment of long-term debt | (3,750) | (1,225) | |
Proceeds from short-term borrowings | 100,000 | ||
Repayment of short-term borrowings | (25,000) | ||
Proceeds from intercompany loans | 105,885 | 58,638 | |
Repayment of intercompany loans | (5,000) | (62,979) | |
Net cash used for financing activities | 72,134 | 194,434 | |
Effect of exchange rate changes | (1,703) | (5,375) | |
Net increase (decrease) in cash and cash equivalents | 3,198 | 6,895 | |
Cash and cash equivalents at the beginning of the period | 12,797 | 4,507 | |
Cash and cash equivalents at the end of the period | 14,292 | 14,292 | 6,027 |
Parent Company | Reportable Legal Entities | |||
Operating activities | |||
Net cash (used for) provided by operating activities | (15,281) | (896) | |
Investing activities | |||
Dividend received | 30,000 | ||
Payment for purchase of bonds, intercompany | (103,100) | ||
Proceeds from redemption of debentures, intercompany | 35,100 | ||
Net cash used for investing activities | (38,000) | ||
Financing activities | |||
Proceeds from intercompany loans | 122,500 | 226,500 | |
Repayment of intercompany loans | (7,000) | (51,500) | |
Proceeds from issuance of common shares under stock-based compensation plans | 15,949 | 12,275 | |
Payment for net settlement of stock-based awards | (3,177) | (14,947) | |
Dividend paid | (48,515) | (42,901) | |
Payment for stock repurchased and retired | (23,901) | (130,103) | |
Payment for expenses related to stock repurchase | (12) | (82) | |
Net cash used for financing activities | 55,844 | (758) | |
Net increase (decrease) in cash and cash equivalents | 2,563 | (1,654) | |
Cash and cash equivalents at the beginning of the period | 2,505 | 2,136 | |
Cash and cash equivalents at the end of the period | 5,068 | 5,068 | 482 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Operating activities | |||
Net cash (used for) provided by operating activities | 79,397 | (9,110) | |
Investing activities | |||
Purchase of property, plant and equipment | (55,072) | (68,026) | |
Payment for internally generated intangible assets (including intangibles under development) | (26,261) | (19,397) | |
Proceeds from sale of property, plant and equipment | 1,621 | 499 | |
Investment in subsidiaries | 8,861 | ||
Payment for business acquisitions, net of cash acquired | (6,305) | (108,105) | |
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Net cash used for investing activities | (86,017) | (190,898) | |
Financing activities | |||
Repayment of capital/finance lease obligations | (6,256) | (1,954) | |
Payment of debt issuance costs | (4,293) | ||
Proceeds from long-term debt | 29,186 | ||
Repayment of long-term debt | (21,750) | (156,461) | |
Proceeds from short-term borrowings | 50,000 | 125,000 | |
Repayment of short-term borrowings | (75,000) | (65,000) | |
Proceeds from intercompany loans | 245,037 | 298,467 | |
Repayment of intercompany loans | (35,312) | (86,839) | |
Proceeds from issuance of common shares under stock-based compensation plans | 100,963 | ||
Proceeds from issuance of common shares | 6,848 | ||
Payment of earn-out/deferred consideration | (12,790) | (1,559) | |
Dividend paid | (30,000) | ||
Proceeds from issuance of bonds, intercompany | 103,100 | ||
Payment for redemption of debentures, intercompany | (121,918) | (91,761) | |
Net cash used for financing activities | 101,959 | 145,749 | |
Effect of exchange rate changes | (10,922) | (48,845) | |
Net increase (decrease) in cash and cash equivalents | 95,340 | (54,259) | |
Cash and cash equivalents at the beginning of the period | 353,094 | 497,825 | |
Cash and cash equivalents at the end of the period | $ 437,512 | $ 437,512 | $ 394,721 |