Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 30, 2018 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | G | ||
Entity Registrant Name | GENPACT LIMITED | ||
Entity Central Index Key | 0001398659 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 190,398,920 | ||
Entity Public Float | $ 6,173,854,673 | ||
Entity Incorporation, State or Country Code | D0 | ||
Title of 12(b) Security | Common shares, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-33626 | ||
Entity Tax Identification Number | 98-0533350 | ||
Entity Address, Address Line One | Victoria Place | ||
Entity Address, Address Line Two | 5th Floor | ||
Entity Address, Address Line Three | 31 Victoria Street | ||
Entity Address, City or Town | Hamilton | ||
Entity Address, Country | BM | ||
Entity Address, Postal Zip Code | HM 10 | ||
City Area Code | 441 | ||
Local Phone Number | 294-8000 | ||
Documents Incorporated by Reference | The registrant intends to file a definitive proxy statement pursuant to Regulation 14A within 120 days of the end of the fiscal year ended December 31, 2019. Portions of the proxy statement are incorporated herein by reference to the following parts of this Annual Report on Form 10-K: Part III, Item 10, Directors, Executive Officers and Corporate Governance; Part III, Item 11, Executive Compensation; Part III, Item 12, Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters; Part III, Item 13, Certain Relationships and Related Transactions, and Director Independence; and Part III, Item 14, Principal Accounting Fees and Services. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 467,096 | $ 368,396 |
Accounts receivable, net | 914,255 | 774,184 |
Prepaid expenses and other current assets | 170,325 | 212,477 |
Total current assets | 1,551,676 | 1,355,057 |
Property, plant and equipment, net | 254,035 | 212,715 |
Operating lease right-of-use assets | 330,854 | |
Deferred tax assets | 89,715 | 74,566 |
Investment in equity affiliates | 836 | |
Intangible assets, net | 230,861 | 177,087 |
Goodwill | 1,574,466 | 1,393,832 |
Contract cost assets | 205,498 | 160,193 |
Other assets | 217,079 | 155,159 |
Total assets | 4,454,184 | 3,529,445 |
Current liabilities | ||
Short-term borrowings | 70,000 | 295,000 |
Current portion of long-term debt | 33,509 | 33,483 |
Accounts payable | 21,981 | 42,584 |
Income taxes payable | 43,186 | 33,895 |
Accrued expenses and other current liabilities | 683,871 | 571,350 |
Operating leases liability | 57,664 | |
Total current liabilities | 910,211 | 976,312 |
Long-term debt, less current portion | 1,339,796 | 975,645 |
Operating leases liability | 302,100 | |
Deferred tax liabilities | 3,990 | 8,080 |
Other liabilities | 208,916 | 165,226 |
Total liabilities | 2,765,013 | 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 190,118,181 issued and outstanding as of December 31, 2018 and December 31, 2019, respectively | 1,896 | 1,888 |
Additional paid-in capital | 1,570,575 | 1,471,301 |
Retained earnings | 648,656 | 438,453 |
Accumulated other comprehensive income (loss) | (531,956) | (507,460) |
Total equity | 1,689,171 | 1,404,182 |
Commitments and contingencies | ||
Total liabilities and equity | $ 4,454,184 | $ 3,529,445 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 190,118,181 | 189,346,101 |
Common shares, outstanding | 190,118,181 | 189,346,101 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Income Statement [Abstract] | ||||||||||||
Net revenues | $ 940,739 | $ 888,799 | $ 881,799 | $ 809,206 | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 3,520,543 | $ 3,000,790 | $ 2,736,929 | |
Cost of revenue | 2,294,688 | 1,921,768 | 1,681,438 | |||||||||
Gross profit | 310,091 | 315,140 | 310,555 | 290,069 | 302,205 | 266,566 | 265,663 | 244,588 | 1,225,855 | 1,079,022 | 1,055,491 | |
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 794,901 | 693,865 | 689,461 | |||||||||
Amortization of acquired intangible assets | 32,612 | 38,850 | 36,412 | |||||||||
Other operating (income) expense, net | (31,034) | (1,845) | (1,661) | |||||||||
Income from operations | 119,518 | 113,584 | 106,202 | 90,072 | 110,841 | 94,028 | 79,522 | 63,761 | 429,376 | 348,152 | 331,279 | |
Foreign exchange gains (losses), net | 7,729 | 15,239 | 1,996 | |||||||||
Interest income (expense), net | (43,458) | (37,119) | (31,735) | |||||||||
Other income (expense), net | 5,786 | 35,761 | 23,586 | |||||||||
Income before equity-method investment activity, net and income tax expense | 114,349 | 110,794 | 94,970 | 79,320 | 106,632 | 97,724 | 81,668 | 76,009 | 399,433 | 362,033 | 325,126 | |
Equity-method investment activity, net | (16) | (12) | (4,543) | |||||||||
Income before income tax expense | 399,417 | 362,021 | 320,583 | |||||||||
Income tax expense | 94,536 | 80,763 | 59,742 | |||||||||
Net income | 82,198 | 88,120 | 73,722 | 60,841 | 79,147 | 73,603 | 64,574 | 63,934 | 304,881 | 281,258 | 260,841 | |
Net loss attributable to redeemable non-controlling interest | 761 | 761 | 2,270 | |||||||||
Net income attributable to Genpact Limited shareholders | $ 82,198 | $ 88,120 | $ 73,722 | $ 60,841 | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | 304,881 | 282,019 | 263,111 | |
Net income available to Genpact Limited common shareholders | $ 304,881 | $ 282,019 | $ 263,111 | |||||||||
Earnings per common share attributable to Genpact Limited common shareholders | ||||||||||||
Basic | $ 0.43 | $ 0.46 | $ 0.39 | $ 0.32 | $ 0.42 | $ 0.39 | $ 0.34 | $ 0.34 | $ 1.60 | $ 1.48 | $ 1.36 | |
Diluted | $ 0.42 | $ 0.45 | $ 0.38 | $ 0.31 | $ 0.41 | $ 0.38 | $ 0.33 | $ 0.33 | $ 1.56 | $ 1.45 | $ 1.34 | |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | ||||||||||||
Basic | 190,083,647 | 190,599,049 | 190,163,359 | 189,451,845 | 189,724,744 | 190,024,924 | 190,132,664 | 192,816,626 | 190,074,475 | 190,674,740 | 193,864,755 | |
Diluted | 196,592,325 | 195,890,841 | 194,766,047 | 193,394,208 | 193,149,836 | 193,115,769 | 193,365,974 | 196,288,569 | 195,160,855 | 193,980,038 | 197,049,552 | |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||||||||||
Net income (loss) | $ 82,198 | $ 88,120 | $ 73,722 | $ 60,841 | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | $ 304,881 | $ 282,019 | $ 263,111 | [1] |
Other comprehensive income: | ||||||||||||
Currency translation adjustments | (20,297) | (109,656) | 93,871 | |||||||||
Net income (loss) on cash flow hedging derivatives, net of taxes | 2,343 | (46,293) | 12,611 | |||||||||
Retirement benefits, net of taxes | (6,542) | 1,454 | (3,787) | |||||||||
Other comprehensive income (loss) | (24,496) | (154,495) | 102,695 | |||||||||
Comprehensive income (loss) | $ 280,385 | 127,524 | 365,806 | |||||||||
Redeemable non-controlling interest, Net income (loss) | $ (761) | (761) | (2,270) | [1] | ||||||||
Redeemable non-controlling interest, Other comprehensive income: | ||||||||||||
Redeemable non-controlling interest, Currency translation adjustments | (424) | (341) | ||||||||||
Redeemable non-controlling interest, Other comprehensive income (loss) | (424) | (341) | ||||||||||
Redeemable non-controlling interest, Comprehensive income (loss) | $ (1,185) | $ (2,611) | ||||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Consolidated Statements of Equi
Consolidated Statements of Equity and Redeemable Non-controlling Interest - USD ($) $ in Thousands | Total | Common shares | Additional Paid- in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance, value at Dec. 31, 2016 | $ 1,286,648 | $ 1,984 | $ 1,384,468 | $ 358,121 | $ (457,925) | ||
Beginning balance, value (in shares) at Dec. 31, 2016 | 198,794,052 | ||||||
Redeemable non-controlling interest, Beginning balance at Dec. 31, 2016 | 4,520 | ||||||
Issuance of common shares on exercise of options | $ 10,772 | $ 7 | 10,765 | ||||
Issuance of common shares on exercise of options (in shares) | 743,045 | 743,045 | |||||
Issuance of common shares under the employee stock purchase plan | $ 4,756 | $ 2 | 4,754 | ||||
Issuance of common shares under the employee stock purchase plan (in shares) | 190,435 | ||||||
Net settlement on vesting of restricted share units | (357) | $ 1 | (358) | ||||
Net settlement on vesting of restricted share units (in shares) | 103,220 | ||||||
Net settlement on vesting of performance units | $ (9,939) | $ 7 | (9,946) | ||||
Net settlement on vesting of performance units (in shares) | 731,701 | 731,701 | |||||
Stock repurchased and retired | $ (219,784) | $ (77) | (4,000) | (215,707) | |||
Stock repurchased and retired (in shares) | (7,737,246) | ||||||
Expenses related to stock repurchase | (16) | (16) | |||||
Stock-based compensation expense | 35,685 | 35,685 | |||||
Change in fair value of redeemable non-controlling interest | (2,841) | (2,841) | |||||
Redeemable non-controlling interest, Change in fair value of redemeedable non-controlling interest | 2,841 | ||||||
Comprehensive income (loss): | |||||||
Net income (loss) | 263,111 | [1] | 263,111 | ||||
Redeemable non-controlling interest, Net income (loss) | [1] | (2,270) | |||||
Other comprehensive income (loss) | 102,695 | 102,695 | |||||
Redeemable non-controlling interest, Other comprehensive income (loss) | (341) | ||||||
Dividend | (46,686) | (46,686) | |||||
End balance, value at Dec. 31, 2017 | 1,424,044 | $ 1,924 | 1,421,368 | 355,982 | (355,230) | ||
End balance, value (in shares) at Dec. 31, 2017 | 192,825,207 | ||||||
Redeemable non-controlling interest, End balance at Dec. 31, 2017 | 4,750 | ||||||
Adoption of ASU (ASU 2014-09) at Dec. 31, 2017 | 17,924 | 17,924 | |||||
Adjusted balance, value at Dec. 31, 2017 | 1,441,968 | $ 1,924 | 1,421,368 | 373,906 | (355,230) | ||
Redeemable non-controlling interest, Adjusted balance at Dec. 31, 2017 | 4,750 | ||||||
Adoption of ASU | ASU 2018-02 | (2,265) | 2,265 | |||||
Issuance of common shares on exercise of options | $ 7,258 | $ 4 | 7,254 | ||||
Issuance of common shares on exercise of options (in shares) | 441,076 | 441,076 | |||||
Issuance of common shares under the employee stock purchase plan | $ 6,776 | $ 2 | 6,774 | ||||
Issuance of common shares under the employee stock purchase plan (in shares) | 245,467 | ||||||
Net settlement on vesting of restricted share units | (2,649) | $ 2 | (2,651) | ||||
Net settlement on vesting of restricted share units (in shares) | 227,560 | ||||||
Net settlement on vesting of performance units | $ (13,270) | $ 7 | (13,277) | ||||
Net settlement on vesting of performance units (in shares) | 691,958 | 691,958 | |||||
Stock repurchased and retired | $ (154,058) | $ (51) | 4,000 | (158,007) | |||
Stock repurchased and retired (in shares) | (4,921,192) | (5,085,167) | |||||
Expenses related to stock repurchase | $ (98) | (98) | |||||
Stock-based compensation expense | 48,998 | 48,998 | |||||
Payment for purchase of redeemable non-controlling interest | (1,165) | (1,165) | |||||
Redeemable non-controlling interest, Payment for purchase of redeemable non-controlling interest | (3,565) | ||||||
Comprehensive income (loss): | |||||||
Net income (loss) | 282,019 | 282,019 | |||||
Redeemable non-controlling interest, Net income (loss) | (761) | ||||||
Other comprehensive income (loss) | (154,495) | (154,495) | |||||
Redeemable non-controlling interest, Other comprehensive income (loss) | (424) | ||||||
Dividend | (57,102) | (57,102) | |||||
End balance, value at Dec. 31, 2018 | $ 1,404,182 | $ 1,888 | 1,471,301 | 438,453 | (507,460) | ||
End balance, value (in shares) at Dec. 31, 2018 | 189,346,101 | 189,346,101 | |||||
Issuance of common shares on exercise of options | $ 10,690 | $ 7 | 10,683 | ||||
Issuance of common shares on exercise of options (in shares) | 697,531 | 697,531 | |||||
Issuance of common shares under the employee stock purchase plan | $ 8,980 | $ 3 | 8,977 | ||||
Issuance of common shares under the employee stock purchase plan (in shares) | 264,440 | ||||||
Net settlement on vesting of restricted share units | $ (4,265) | $ 6 | (4,271) | ||||
Net settlement on vesting of restricted share units (in shares) | 574,112 | ||||||
Net settlement on vesting of performance units (in shares) | 2,151 | 2,151 | |||||
Stock repurchased and retired | $ (30,000) | $ (8) | (29,992) | ||||
Stock repurchased and retired (in shares) | (766,154) | (766,154) | |||||
Expenses related to stock repurchase | $ (15) | (15) | |||||
Stock-based compensation expense | 83,885 | 83,885 | |||||
Comprehensive income (loss): | |||||||
Net income (loss) | 304,881 | 304,881 | |||||
Other comprehensive income (loss) | (24,496) | (24,496) | |||||
Dividend | (64,671) | (64,671) | |||||
End balance, value at Dec. 31, 2019 | $ 1,689,171 | $ 1,896 | $ 1,570,575 | $ 648,656 | $ (531,956) | ||
End balance, value (in shares) at Dec. 31, 2019 | 190,118,181 | 190,118,181 | |||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity and Redeemable Non-controlling Interest (Parenthetical) - $ / shares | Feb. 07, 2019 | Feb. 12, 2018 | Feb. 28, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Stockholders Equity [Abstract] | ||||||
Dividends per common share | $ 0.085 | $ 0.075 | $ 0.06 | $ 0.34 | $ 0.30 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Operating activities | ||||
Net income attributable to Genpact Limited shareholders | $ 304,881 | $ 282,019 | $ 263,111 | [1] |
Redeemable non-controlling interest, Net income (loss) | (761) | (2,270) | [1] | |
Net income | 304,881 | 281,258 | 260,841 | [1] |
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||
Depreciation and amortization | 96,101 | 64,868 | 58,503 | |
Amortization of debt issuance costs (including loss on extinguishment of debt) | 1,779 | 3,975 | 1,884 | |
Amortization of acquired intangible assets | 32,612 | 38,850 | 36,412 | [1] |
Write-down of intangible assets and property, plant and equipment | 3,511 | 4,265 | 9,311 | |
Reserve for doubtful receivables | 7,443 | 1,857 | 9,819 | |
Unrealized loss (gain) on revaluation of foreign currency asset/liability | (5,171) | 3,352 | (11,830) | |
Equity-method investment activity, net | 16 | 12 | 4,543 | [1] |
Stock-based compensation expense | 83,885 | 48,998 | 35,685 | |
Deferred tax expense (benefit) | (16,315) | 6,054 | (10,391) | |
Loss (gain) on divestiture | 5,668 | |||
Gain on exchange of non-monetary asset | (31,380) | (4,100) | ||
Others, net | (2,229) | 1,317 | (685) | |
Change in operating assets and liabilities: | ||||
Increase in accounts receivable | (121,983) | (76,894) | (57,267) | |
Increase in prepaid expenses, other current assets, contract cost assets, operating lease right-of-use assets and other assets | (69,813) | (76,392) | (28,381) | |
Increase (decrease) in accounts payable | (21,375) | 26,401 | (2,155) | |
Increase in accrued expenses, other current liabilities, operating lease liabilities and other liabilities | 157,580 | 5,993 | 46,581 | |
Increase (decrease) in income taxes payable | 8,346 | 5,597 | 4,640 | |
Net cash provided by operating activities | 427,888 | 339,511 | 359,078 | |
Investing activities | ||||
Purchase of property, plant and equipment | (74,927) | (84,978) | (57,231) | |
Payment for internally generated intangible assets (including intangibles under development) | (33,834) | (75,439) | (16,441) | |
Proceeds from sale of property, plant and equipment | 1,750 | 668 | 1,738 | |
Investment in equity affiliates | (496) | |||
Proceeds from sale of equity affiliates | 2,168 | |||
Payment for business acquisitions, net of cash acquired | (252,276) | (111,571) | (284,822) | |
Proceeds from divestiture of business, net of cash divested | (4,738) | |||
Payment for purchase of redeemable non-controlling interest | (4,730) | |||
Net cash used for investing activities | (357,119) | (276,050) | (361,990) | |
Financing activities | ||||
Repayment of capital/finance lease obligations | (7,380) | (2,395) | (2,708) | |
Payment of debt issuance costs | (2,317) | (4,293) | (2,630) | |
Proceeds from long-term debt | 400,000 | 129,186 | 350,000 | |
Repayment of long-term debt | (34,000) | (166,186) | (40,000) | |
Proceeds from short-term borrowings | 400,000 | 250,000 | 295,000 | |
Repayment of short-term borrowings | (625,000) | (125,000) | (285,000) | |
Proceeds from issuance of common shares under stock-based compensation plans | 19,670 | 14,034 | 15,528 | |
Payment for net settlement of stock-based awards | (3,850) | (15,919) | (10,296) | |
Payment of earn-out/deferred consideration | (12,790) | (3,356) | (6,219) | |
Dividend paid | (64,671) | (57,102) | (46,686) | |
Payment for stock repurchased and retired | (30,000) | (154,058) | (219,784) | |
Payment for expenses related to stock repurchase | (15) | (98) | (16) | |
Net cash provided by/(used for) financing activities | 39,647 | (135,187) | 47,189 | |
Effect of exchange rate changes | (11,716) | (64,346) | 37,568 | |
Net increase (decrease) in cash and cash equivalents | 110,416 | (71,726) | 44,277 | |
Cash and cash equivalents at the beginning of the period | 368,396 | 504,468 | 422,623 | |
Cash and cash equivalents at the end of the period | 467,096 | 368,396 | 504,468 | |
Supplementary information | ||||
Cash paid during the period for interest (including interest rate swaps) | 45,084 | 41,484 | 27,915 | |
Cash paid during the period for income taxes (net of refunds) | 104,217 | 81,411 | 66,238 | |
Property, plant and equipment acquired under capital/finance lease obligations | 5,008 | $ 2,031 | 2,318 | |
Non-cash transaction: Gain on exchange of non-monetary asset | $ (31,380) | $ (4,100) | ||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Organization
Organization | 12 Months Ended |
Dec. 31, 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 customers, guided by its experience over time running thousands of processes for hundreds of Fortune Global 500 clients. The Company has over 96,500 employees serving customers in key industry verticals from more than 30 countries. Prior to the fourth quarter of 2019, the Company had one reportable segment. To align with how the Company’s Chief Operating Decision Maker, or CODM, manages its business, including resource allocation and performance assessment, the Company realigned its business segments into the following three reportable segments: Banking, Capital Markets and Insurance, or BCMI, Consumer Goods, Retail, Life Sciences and Healthcare, or CGRLH, and High Tech, Manufacturing and Services, or HMS. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies (a) Basis of preparation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated on consolidation. Non-controlling interest in subsidiaries outside of the Company’s control that is redeemable for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income. (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, the measurement of lease liabilities and right-of-use (ROU) assets, measurements of stock-based compensation, assets and obligations related to employee benefits, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, variable consideration, other obligations for revenue recognition, income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. 2. Summary of significant accounting policies (Continued) (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired business, 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 or developed internally are carried at cost less accumulated amortization and accumulated impairment loss 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. 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. The Company also capitalizes certain software and technology-related development costs incurred in connection with developing or obtaining software or technology for sale/lease to customers when the initial design phase is completed and commercial and technological feasibility has been established. Any development cost incurred before technological feasibility is established is expensed as incurred as research and development costs. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Capitalized software and technology costs include only (i) external direct costs of materials and services utilized in developing or obtaining software and technology and (ii) compensation and related benefits for employees who are directly associated with the project. Costs incurred in connection with developing or obtaining software or technology for sale/lease to customers which are under development and not put to use are disclosed under “intangible assets under development.” Advances paid toward the acquisition of intangible assets outstanding as of each balance sheet date are disclosed under “intangible assets under development.” Capitalized software and technology costs are included in intangible assets under technology-related intangible assets on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software and technology. The Company evaluates the remaining useful life of intangible assets that are being amortized at each reporting period wherever events and circumstances warrant a revision to the remaining period of amortization, and the remaining carrying amount of the intangible asset is amortized prospectively over that revised remaining useful life. 2. Summary of significant accounting policies (Continued) (d) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its customers. The General Electric Company (“GE”) accounted for 11% and 17% of the Company’s receivables as of December 31, 2018 and 2019, respectively. GE accounted for 10%, 9% and 14% of the Company’s revenues in the years ended December 31, 2017, 2018 and 2019, respectively. (e) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions, clients’ financial conditions, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. (f) Revenue Recognition (effective January 1, 2018) 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 upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for customization of applications, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. The Company’s contracts with customers also include incentive payments received for discrete benefits delivered or promised to be delivered to the customer or service level agreements that could result in credits or refunds to the customer. Revenues relating to such arrangements are accounted for as variable consideration when the amount of revenue to be recognized can be estimated to the extent that it is probable that a significant reversal of any incremental revenue will not occur. The Company records deferred revenue attributable to certain process transition activities where such activities do not represent separate performance obligations. Revenues relating to such transition activities are classified under contract liabilities and subsequently recognized ratably over the period in which the related services are performed. Costs relating to such transition activities are fulfillment costs which are directly related to the contract and result in the generation or enhancement of resources. Such costs are expected to be recoverable under the contract and are therefore classified as contract cost assets and recognized ratably over the estimated expected period of benefit under cost of revenue. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from customers have been included as part of revenues. Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and the satisfaction of a performance obligation. 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. 2. Summary of significant accounting policies (Continued) The Company enters into multiple-element revenue arrangements in which a customer may purchase a combination of products or services. The Company determines whether each product or service promised to a customer is capable of being distinct, and is distinct in the context of the contract. If not, the promised products or services are combined and accounted for as a single performance obligation. In the event of a multiple-element revenue arrangement, the Company allocates the arrangement consideration to separately identifiable performance obligations based on their relative stand-alone selling prices. Certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription-based. Revenue from distinct perpetual licenses is recognized upfront at the point in time when the software is made available to the customer. Revenue from distinct, non-cancellable, subscription-based licenses is recognized at the point in time it is transferred to the customers. 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 customers are classified as contract assets. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and deducted from revenue. Timing of revenue recognition may differ from the timing of invoicing. If a payment is received in respect of services prior to the delivery of services, the payment is recognized as an advance from customers and classified as a contract liability. Contract assets and contract liabilities relating to the same customer contract are offset against each other and presented on a net basis in the consolidated financial statements. Significant judgements The Company often enters into contracts with customers that include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately rather than together may require significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. In instances where the standalone selling price is not directly observable, it is determined using information that may include market conditions and other observable inputs. Customer contracts sometimes include incentive payments received for discrete benefits delivered to the customer or service level agreements that could result in credits or refunds to the customer. Such amounts are estimated at contract inception and are adjusted at the end of each reporting period as additional information becomes available only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. (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 right-of-use (“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 Company’s 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 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 the Company’s adoption of 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 whether: (1) the contract involves the use of a distinct identified asset, (2) 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) 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 as 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. Significant judgements 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. 2. Summary of significant accounting policies (Continued) 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 The Company has applied an incremental borrowing rate for the purpose of computing lease liabilities based on the rate prevailing in different geographies Impact on consolidated financial statements The following table summarizes 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 the 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) 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. ( i) Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. 2. Summary of significant accounting policies (Continued) (j) Short-term investments All liquid investments with an original maturity greater than three months but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative purposes. (k) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization and accumulated impairment loss. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Computer software 4-7 Leasehold improvements Lease period Vehicles 3-4 The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. Capitalized computer software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. Advances paid towards acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress.” (l) Impairment of long-lived assets Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. (m) Foreign currency The Company’s consolidated financial statements are reported in U.S. dollars, the Company’s functional currency. The functional currency for the Company’s subsidiaries organized in Europe, other than the United Kingdom, the Czech Republic, Luxembourg and one subsidiary in Poland, is the euro, and the functional currencies of the Company’s subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Israel, Japan, Morocco, South Africa, the Philippines, Poland, the Czech Republic, Hong Kong, Singapore, Australia and Canada are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the Company’s subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. 2. Summary of significant accounting policies (Continued) Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. (n) Derivative instruments and hedging activities In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates and interest rate fluctuation. The Company enters into forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and forecasted transactions denominated in foreign currencies and interest rate swaps to mitigate interest rate fluctuation risk on its indebtedness. The Company recognizes derivative instruments and hedging activities as either assets or liabilities in its consolidated balance sheets and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Changes in the fair values of derivatives designated as cash flow hedges are deferred and recorded as a component of other comprehensive income (loss) reported under accumulated other comprehensive income (loss) until the hedged transactions occur and are then recognized in the consolidated statements of income along with the underlying hedged item and disclosed as part of “Total net revenues,” “Cost of revenue,” “Selling, general and administrative expenses,” and “Interest expense,” as applicable. Changes in the fair value of derivatives not designated as hedging instruments and the ineffective portion of derivatives designated as cash flow hedges are recognized in the consolidated statements of income and are included in foreign exchange gains (losses), net, and other income (expense), net, respectively. With respect to derivatives designated as cash flow hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the inception of the hedge and on a quarterly basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative or portion thereof is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, the Company will prospectively discontinue hedge accounting with respect to that derivative instrument. In all situations in which hedge accounting is discontinued and the derivative is retained, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent change in its fair value in the consolidated statements of income. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately, in foreign exchange gains (losses), net in the consolidated statements of income, the gains and losses attributable to such derivative that were accumulated in other comprehensive |
Business acquisitions
Business acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | 3. Business acquisitions (a) Rightpoint Consulting, LLC On November 12, 2019, the Company acquired 100% of the outstanding equity/limited liability company interests in Rightpoint Consulting, LLC, an Illinois limited liability company, and certain affiliated entities in the United States and India (collectively referred to as “Rightpoint”) for total purchase consideration of $270,669. This amount includes cash consideration of $268,170, net of cash acquired of $2,499. The total purchase consideration paid by the Company to the sellers was $248,470, resulting in a payable of $22,199, which is outstanding as of December 31, 2019. The Company is evaluating adjustments related to certain income and other taxes, which, when determined, may result in the recognition of additional assets or liabilities as of the acquisition date. The measurement period will not exceed one year from the acquisition date. This acquisition is expected to expand the Company’s capabilities in improving customer experience. 3. Business acquisitions (Continued) The securities purchase agreement between the Company and the selling equity holders of Rightpoint provided certain of the selling equity holders the option to elect to either (a) receive 100% consideration in cash at the closing date for their limited liability company interests and vested options or (b) “roll over” and retain 25% of their Rightpoint limited liability company interests and vested options for a three-year In connection with this acquisition, the Company recorded $46,000 in customer-related intangibles and $29,000 in marketing-related intangibles which have a weighted average amortization period of five years. Goodwill arising from the acquisition amounting to $182,834 has been allocated using a relative fair value allocation method to each of the Company’s reporting segments as follows: to the BCMI segment in the amount of $17,525, to the CGRLH segment in the amount of $44,365 and to the HMS segment in the amount of $120,944. Of the total goodwill arising from this acquisition, $97,833 is deductible for income 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 $7,385 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 $39,140, assumed certain liabilities amounting to $23,095 and recognized a net deferred tax liability of $3,210. 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) 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 December 31, 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 amounting to $2,547 has been allocated to the Company’s BCMI reporting segment and is deductible for income 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. 3. Business acquisitions (Continued) (c) Barkawi Management Consultants GmbH & Co. KG and certain related entities On August 30, 2018, the Company acquired 100% of the outstanding equity/partnership interests in Barkawi Management Consultants GmbH & Co. KG, a German limited partnership, and certain affiliated entities in the United States, Germany and Austria (collectively referred to as “Barkawi”) for total purchase consideration of $101,307. This amount includes cash consideration of $95,625, net of cash acquired of $5,682. The total purchase consideration paid by the Company was $100,969, resulting in a payable of $338, which is outstanding as of December 31, 2019. During the year ended December 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 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 all three of the Company’s reporting segments using a relative fair value allocation method. Of the total goodwill arising out of this acquisition, $64,457 is 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. (d) 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 December 31, 2019. In connection with the acquisition of Commonwealth, the Company recorded $2,200 in customer-related intangibles and $2,600 in technology-related intangible assets, which have a weighted average amortization period of four years. Goodwill arising from the acquisition amounted to $11,587, which has been allocated to the Company’s CGRLH reporting segment 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 | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents As of December 31, 2018 2019 Cash and other bank balances $ 368,396 $ 467,096 Total $ 368,396 $ 467,096 |
Accounts receivable, net of res
Accounts receivable, net of reserve for doubtful receivables | 12 Months Ended |
Dec. 31, 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, 2017 2018 2019 Opening balance as of January 1 $ 15,519 $ 23,660 $ 23,960 Additions due to acquisitions 235 — 1,004 Additions charged/reversal released to cost and expense 9,819 1,857 7,443 Deductions/effect of exchange rate fluctuations (1,913 ) (1,557 ) (2,438 ) Closing balance $ 23,660 $ 23,960 $ 29,969 Accounts receivable were $798,144 and $944,224, and reserves for doubtful receivables were $23,960 and $29,969, resulting in net accounts receivable balances of $774,184 and $914,255 as of December 31, 2018 and 2019, respectively. In addition, accounts receivable due after one year amounting to $4,099 and $7,858 as of December 31, 2018 and 2019, respectively, are included under “other assets” in the consolidated balance sheets. Accounts receivable from related parties were $99 and $0 as of December 31, 2018 and 2019, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 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 December 31, 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) $ 21,309 $ — $ 21,309 $ — Deferred compensation plan assets (a, e) $ 11,208 $ — $ — $ 11,208 Total $ 32,517 $ — $ 21,309 $ 11,208 Liabilities Earn out consideration (Note b, d) $ 22,184 $ — $ — $ 22,184 Derivative instruments (Note b, c) $ 24,239 $ — $ 24,239 $ — Deferred compensation plan liability (b, f) $ 10,943 $ — $ — $ 10,943 Total $ 57,366 $ — $ 24,239 $ 33,127 (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 policies and is therefore classified within level 3 of the fair value hierarchy . The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the years ended December 31, 2018 and 2019: Year ended December 31, 2018 2019 Opening balance $ 24,732 $ 17,073 Earn-out consideration payable in connection with acquisitions — 21,701 Payments made on earn-out consideration (Note a) (3,356 ) (17,098 ) Change in fair value of earn-out consideration (Note b) (5,655 ) — Others (Note c) 1,352 508 Closing balance $ 17,073 $ 22,184 (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 $0 and $4,308 for the year ended December 31, 2018 and 2019, respectively. 6. Fair Value Measurements (Continued) (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) “Others” is comprised of interest expense included in “interest income (expense), net” and the impact of changes in foreign exchange reported in “foreign exchange gains (losses), net” in the consolidated statements of income. This also includes a cumulative translation adjustment reported as a component of other comprehensive income (loss). The following table provides a roll-forward of the fair value of deferred compensation plan assets categorized as level 3 in the fair value hierarchy for the year ended December 31, 2018 and 2019: Year ended December 31, 2018 2019 Opening balance $ — $ 1,613 Additions (net of redemption) 1,669 8,299 Change in fair value of deferred compensation plan assets (Note a) (56 ) 1,296 Closing balance $ 1,613 $ 11,208 (a) Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. The following table provides a roll-forward of the fair value of deferred compensation liabilities categorized as level 3 in the fair value hierarchy for the year ended December 31, 2018 and 2019: Year ended December 31, 2018 2019 Opening balance $ — $ 1,582 Additions (net of redemption) 1,669 8,299 Change in fair value of deferred compensation plan liabilities (Note a) (87 ) 1,062 Closing balance $ 1,582 $ 10,943 (a) Changes in the fair value of deferred compensation liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 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 foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities and foreign currency denominated forecasted cash flows and interest rate risks. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature over periods of up to 48 months 7. Derivative financial instruments (Continued) The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2018 As of December 31, 2019 As of December 31, 2018 As of December 31, 2019 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,439,000 $ 1,305,000 $ (3,643 ) $ (5,740 ) United States Dollars (sell) Philippines Peso (buy) 55,800 66,600 (1,510 ) 462 Euro (sell) United States Dollars (buy) 136,412 122,337 4,804 4,135 Pound Sterling (buy) United States Dollars (sell) 128 — (128 ) — Singapore Dollars (buy) United States Dollars (sell) — 10,017 — 38 Euro (sell) Romanian Leu (buy) 41,198 26,918 (299 ) (314 ) Japanese Yen (sell) Chinese Renminbi (buy) 40,568 29,350 (2,195 ) (258 ) Pound Sterling (sell) United States Dollars (buy) 27,517 9,089 495 383 Australian Dollars (sell) United States Dollars (buy) 89,780 35,972 3,548 1,924 United States Dollars (sell) Hungarian Font (buy) — 20,500 — 162 Hungarian Font (Sell) Euro (buy) — 9,534 — (157 ) Interest rate swaps (floating to fixed) 507,425 477,604 7,782 (3,565 ) 8,854 (2,930 ) (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or other market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. 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 revenue and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, that are denominated in currencies other than the Company’s underlying functional currency. The fair values of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2018 As of December 31, 2019 As of December 31, 2018 As of December 31, 2019 Assets Prepaid expenses and other current assets $ 23,038 $ 16,214 $ 11,490 $ 2,009 Other assets $ 9,571 $ 3,086 $ — $ — Liabilities Accrued expenses and other current liabilities $ 15,148 $ 6,152 $ 225 $ 814 Other liabilities $ 19,872 $ 17,273 $ — $ — Cash flow hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred. In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Year ended December 31, 2017 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 Opening balance $ 37,461 $ (13,979) $ 23,482 $ 50,529 $ (14,436) $ 36,093 $ (2,411) $ (5,524) (7,935) Adoption of ASU 2018-02 (refer note 25) — — — — 2,265 2,265 — — — Net gains (losses) reclassified into statement of income on completion of hedged transactions (Note a) 54,494 (17,725) 36,769 9,336 (1,073) 8,263 19,401 (7,212) 12,189 Changes in fair value of effective portion of outstanding derivatives, net 67,562 (18,182) 49,380 (43,604) 5,574 (38,030) 17,686 (3,154) 14,532 Gain (loss) on cash flow hedging derivatives, net 13,068 (457) 12,611 (52,940) 6,647 (46,293) (1,715) 4,058 2,343 Closing balance $ 50,529 $ (14,436) $ 36,093 $ (2,411) $ (5,524) $ (7,935) $ (4,126) $ (1,466) $ (5,592) *The tax (expense) benefit includes the effect of novating certain hedging instruments as part of an intercompany transfer . 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) reclassified Derivatives in recognized in OCI on reclassified from OCI into Statement of Income Cash Flow Derivatives (Effective Portion) from OCI into (Effective Portion) Hedging Year ended December 31, Statement of Income Year ended December 31, Relationships 2017 2018 2019 (Effective Portion) 2017 2018 2019 Forward foreign exchange contracts $ 66,037 $ (45,840) $ 24,581 Revenue $ 5,858 $ (716) $ 6,782 Interest rate swaps 1,525 2,236 (6,895) Cost of revenue 37,849 4,723 6,435 Selling, general and administrative expenses 10,849 1,543 1,732 Interest expense (62) 3,786 4,452 $ 67,562 $ (43,604) $ 17,686 $ 54,494 $ 9,336 $ 19,401 There were no gains (losses) recognized in income on the ineffective portion of derivatives and excluded from effectiveness testing for the years ended December 31, 2017, 2018 and 2019, respectively. N on-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Year ended December 31, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2017 2018 2019 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 16,696 $ (6,240 ) $ 4,299 $ 16,696 $ (6,240 ) $ 4,299 (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items, such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 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, 2018 2019 Advance income and non-income taxes $ 58,701 $ 43,763 Contract asset (Note 27) 22,472 19,170 Prepaid expenses 25,996 29,734 Derivative instruments 34,528 18,223 Employee advances 3,772 4,209 Deposits 2,758 1,784 Advances to suppliers 1,998 4,289 Others 62,252 49,153 $ 212,477 $ 170,325 |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | 9. Property, plant and equipment, net Property, plant and equipment, net consist of the following: As of December 31, 2018 2019 Land $ 9,401 $ 5,923 Buildings 43,078 42,595 Furniture and fixtures 47,206 49,849 Computer equipment and servers 210,239 229,890 Plant, machinery and equipment 88,937 105,004 Computer software 138,824 141,330 Leasehold improvements 105,965 123,413 Vehicles 5,309 120 Capital work in progress 11,795 46,037 Property, plant and equipment, gross $ 660,754 $ 744,161 Less: Accumulated depreciation and amortization (448,039 ) (490,126 ) Property, plant and equipment, net $ 212,715 $ 254,035 Depreciation expense on property, plant and equipment for the years ended December 31, 2017, 2018 and 2019 was $44,909, $49,518 and $53,332, respectively. Software amortization for the years ended December 31, 2017, 2018 and 2019 amounted to $11,415, $12,317 and $14,167 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 $(1,712), $(231) and $(267) for the years ended December 31, 2017, 2018 and 2019, respectively. The Company recorded a write-down to computer software during the years ended December 31, 2017 and 2018 as described in Note 10. |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | 10. Goodwill and intangible assets Effective in the fourth quarter of 2019, the Company changed its segment reporting structure to align with how the Company’s Chief Operating Decision Maker (CODM) manages the Company. The Company now has three reportable segments: Banking, Capital Markets and Insurance (BCMI), Consumer Goods, Retail, Life Sciences and Healthcare (CGRLH), and High Tech, Manufacturing and Services (HMS). See Note 26 for further information. Goodwill has been allocated based on the relative fair value of each newly identified reporting segment. The Company tested goodwill for impairment prior to the reporting segment change and immediately thereafter, for events and conditions identified in accordance with the guidance in ASC 350, “Intangibles—Goodwill and Other.” The fair value of the Company and its segments was calculated using a discounted cash flow model using estimated future cash flows. The results of our evaluation showed that the fair value of each operating segment exceeded its book value. The following table presents the changes in goodwill for the years ended December 31, 2018 and 2019: As of December 31, 2018 2019 Opening balance $ 1,337,122 $ 1,393,832 Goodwill relating to acquisitions consummated during the period 91,936 185,381 Impact of measurement period adjustments 816 (988) Effect of exchange rate fluctuations (36,042) (3,759) Closing balance $ 1,393,832 $ 1,574,466 The following table presents the changes in goodwill by reporting unit for the year ended December 31, 2019: BCMI CGRLH HMS Total Opening balance $ 398,601 512,296 482,935 1,393,832 Goodwill relating to acquisitions consummated during the period 20,072 44,365 120,944 185,381 Impact of measurement period adjustments (380) (151) (457) (988) Effect of exchange rate fluctuations (1,080) (1,380) (1,299) (3,759) ) Closing balance $ 417,213 555,130 602,123 1,574,466 In the year ended December 31, 2018 and 2019, in accordance with ASU 2011-08, the Company performed an assessment to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on such assessment, as of December 31, 2018 and 2019, the Company concluded that it is not more likely than not that the fair values of any of the Company’s reporting units are less than their carrying amounts. The total amount of the Company’s goodwill deductible for tax purposes was $187,546 and $282,524 as of December 31, 2018 and 2019, respectively. 10. Goodwill and intangible assets (Continued) The Company’s intangible assets are as follows: As of December 31, 2018 As of December 31,2019 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 368,558 $ 306,582 $ 61,976 $ 415,375 $ 329,724 $ 85,651 Marketing-related intangible assets 54,714 46,591 8,123 84,180 50,217 33,963 Technology-related intangible assets 76,790 33,976 42,814 149,262 61,150 88,112 Other intangible assets 1,204 1,077 127 — — — Intangible assets under development 64,047 — 64,047 26,646 3,511 23,135 $ 565,313 $ 388,226 $ 177,087 $ 675,463 $ 444,602 $ 230,861 Amortization expenses for intangible assets acquired as a part of a business combination and disclosed in the consolidated statements of income under amortization of acquired intangible assets for the years ended December 31, 2017, 2018 and 2019 were $36,412, $38,850 and $32,612, 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 years ended December 31, 2017, 2018 and 2019 were $452, $2,807 and $18,957 respectively. Amortization expenses for the technology-related, internally-developed intangible assets set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $(15), $5 and $(76) for the years ended December 31, 2017, 2018 and 2019, respectively. During the year ended December 31, 2017, the Company tested for recoverability a group of assets, comprised of computer software and a technology-related intangible asset, as a result of a downward revision to the forecasted cash flows to be generated by this group of assets. Based on the results of its testing, the Company determined that the carrying value of the group of assets exceeded the estimated undiscounted cash flows and the Company recorded an $8,000 write-down to reduce the carrying value to its fair value. The Company used the income approach to determine the fair value of the group of assets for the purpose of calculating the charge. This write-down has been recorded in other operating (income) expenses, net in the consolidated statement of income and has been allocated to computer software and technology-related intangible assets, amounting to $5,760 and $2,240, respectively. During the year ended December 31, 2017, the Company tested a customer-related intangible asset for recoverability as a result of the termination of a client contract. Based on the results of such testing, the Company recorded a $1,311 write-down to reduce the amount of the asset’s total carrying value. The Company used the income approach to determine the fair value of the intangible asset for the purpose of calculating the resulting charge. This write-down has been recorded in other operating (income) expenses, net in the consolidated statement of income. 10. Goodwill and intangible assets (Continued) During the year ended December 31, 2018, the Company tested for recoverability a group of assets comprised of computer software and a technology-related intangible asset as a result of downward revision to the forecasted cash flow to be generated by this group of assets. Additionally, during the year ended December 31, 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 write-downs of the carrying values of these assets amounting to $4,265 and $3,511 for the year ended December 31, 2018 and December 31, 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 year ended December 31, 2018 amounted to $1,200, and $3,065, respectively, and for the year ended December 31, 2019 amounted to $0 and $3,511, respectively. The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: 2020 70,355 2021 52,597 2022 36,920 2023 29,817 2024 and beyond 18,037 $ 207,726 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | 11. Other Assets Other assets consist of the following: As of December 31, 2018 2019 Contract asset (Note 27) $ 22,563 $ 21,176 Advance income and non-income taxes 62,942 93,277 Deposits 25,984 36,342 Derivative instruments 9,571 3,086 Prepaid expenses 5,052 6,003 Accounts receivable due after one year 4,099 7,858 Others 24,948 15,853 Right of use (ROU) assets finance lease — 33,484 $ 155,159 $ 217,079 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 12. 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 year ended December 31, 2019 are summarized below: Year ended December 31, 2019 Finance lease cost: Amortization of ROU assets (Note a) 9,302 Interest on lease liabilities (Note b) 2,997 Operating lease cost (Note c) 74,436 Short-term lease cost (Note c) 438 Variable lease cost (Note c) 4,052 Total lease cost $ 91,225 a) Included in “depreciation and amortization” in the consolidated statements of income. b) Included in “interest income (expense), net” in the consolidated statements of income. c) Included in “cost of revenue” and “selling, general and administrative expenses” in the consolidated statements of income. ROU assets relating to finance leases of $33,484 as of December 31, 2019 are included in “other assets.” The operating lease cost set out above includes the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts amounting to $(105) for the years ended December 31, 2019. Other information Weighted-average remaining lease term—finance leases 3.9 years Weighted-average remaining lease term—operating leases 6.77 years Weighted-average discount rate—finance leases 9.20 % Weighted-average discount rate—operating leases 6.87 % 12. Leases (Continued) Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 2,859 Operating cash flows from operating leases $ 72,645 Financing cash flows from finance leases $ 7,380 The following table reconciles the undiscounted cash flows for the Company’s operating and finance leases as of December 31, 2019 to the operating and finance lease liabilities recorded on the Company’s balance sheet: Period range Finance lease Operating lease 2020 12,019 79,912 2021 8,765 74,736 2022 6,008 63,539 2023 4,506 57,742 2024 3,445 45,870 Thereafter 1,512 135,104 Total lease payments 36,255 456,903 Less: Imputed interest 5,790 97,139 Total lease liabilities $ 30,465 $ 359,764 The following table provides details of future minimum lease payments under lease agreements as of December 31, 2018 prior to our adoption of a new lease standard: As of December 31, 2018 2019 64,099 2020 58,434 2021 53,170 2022 47,976 2023 38,862 2024 and beyond 147,765 Total minimum lease payments $ 410,306 Rental expenses in agreements with rent holidays and scheduled rent increases are recorded on a straight-line basis over the applicable lease term. Rent expenses under cancellable and non-cancellable operating leases were $59,484 and $66,110 for the years ended December 31, 2017 and 2018, respectively. The rental expenses set out above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts amounting to $(1,533) and $(195) for the years ended December 31, 2017 and 2018, respectively. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 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, 2018 2019 Accrued expenses $ 179,843 $ 178,845 Accrued employee cost 210,251 273,506 Earn-out consideration 16,875 6,384 Statutory liabilities 42,728 62,350 Retirement benefits 22,921 28,379 Derivative instruments 15,373 6,966 Contract liabilities (Note 27) 64,744 97,313 Finance lease liability — 9,740 Other liabilities 16,807 20,388 Capital lease obligations 1,808 — $ 571,350 $ 683,871 |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | 14. Long-term debt In August 2018, the Company amended its 2015 credit facility (“the 2015 Facility”), which was comprised of an $800,000 term loan and a $350,000 revolving credit facility. The amended facility 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 will be amortized over the term of the amended facility, which will expire on August 8, 2023. Borrowings under the amended facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus an applicable margin equal to 1.375% per annum, compared to a margin of 1.50% under the 2015 facility, or a base rate plus an applicable margin equal to 0.375% per annum, compared to a margin of 0.50% under the 2015 facility, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.375% per annum. The amended credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the year ended December 31, 2019, the Company was in compliance with the financial covenants. As of December 31, 2018 and December 31, 2019, the amount outstanding under the term loan, net of debt amortization expense of $2,158 and $1,641, was $660,841 and $627,359, respectively. As of December 31, 2018 and December 31, 2019, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.375% 14. Long-term debt (Continued) The maturity profile of the term loan outstanding as of December 31, 2019, net of debt amortization expense, is as follows: Year ended Amount 2020 $ 33,509 2021 33,537 2022 33,564 2023 526,749 Total $ 627,359 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 March 2017, resulting in cash proceeds of approximately $348,519, net of an underwriting fee of $1,481. In November 2019, the Issuer issued $400,000 aggregate principal amount of 3.375% senior notes, resulting in cash proceeds of approximately $398,304, net of an underwriting fee of $1,600 and a discount of $96. These issuances were fully guaranteed by the Company. In connection with the offerings, the Company incurred other debt issuance costs of $1,161 related to the 2017 offering and $1,241 related to the 2019 offering. The total debt issuance cost of $2,642 and $2,937 incurred in connection with the 2019 and 2017 notes offerings, respectively, are being amortized over the lives of the notes as an additional interest expense. As of December 31, 2018 and December 31, 2019, the amount outstanding under the 3.70% senior notes, net of debt amortization expense of $1,713 and $1,186, respectively, was $348,287 and $348,814, respectively, which is payable on April 1, 2022. As of December 31, 2019, the amount outstanding under the 3.375% senior notes issued in November 2019, net of debt amortization expense of $2,868, was $397,132. 14. Long-term debt (Continued) A summary of the Company’s long-term debt is as follows: Year ended December 31, 2018 Year ended December 31, 2019 Credit facility, net of amortization expenses $ 660,841 $ 627,359 3.70% Senior Notes, net of debt 348,287 348,814 3.375% Senior Notes, net of debt amortization expenses — 397,132 1,009,128 1,373,305 Current portion 33,483 33,509 Non-current portion 975,645 1,339,796 Total $ 1,009,128 $ 1,373,305 |
Short-term borrowings
Short-term borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | 15. Short-term borrowings The Company has the following borrowing facilities: (a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2018 and 2019, the limits available were $14,281 and $14,307, respectively, of which $7,389 and $7,486 was utilized, constituting non-funded drawdown. (b) A fund-based and non-fund based revolving credit facility of $500,000, which the Company obtained through an amendment of its existing credit agreement on August 9, 2018, as described in note 14. Prior to the amendment, the Company’s revolving credit facility was $350,000. The amended credit facility expires on August 8, 2023. The funded drawdown amount under the Company’s revolving facilities bore interest at a rate equal to LIBOR plus a margin of 1.375% as of December 31, 2018 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 16. Other liabilities Other liabilities consist of the following: As of December 31, 2018 2019 Accrued employee cost $ 6,341 $ 8,729 Earn-out consideration 198 15,800 Retirement benefits 50,370 48,191 Derivative instruments 19,872 17,273 Contract liabilities (Note 27) 53,796 78,613 Finance lease liability — 20,725 Others 32,935 19,585 Capital lease obligations 1,714 — $ 165,226 $ 208,916 |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plans | 17. Employee benefit plans The Company has employee benefit plans in the form of certain statutory and other programs covering its employees. Defined benefit plans In accordance with Indian law, the Company provides a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. The Gratuity Plan provides a lump-sum payment to vested employees upon retirement or termination of employment in an amount based on each employee’s salary and duration of employment with the Company. The Gratuity Plan benefit cost for the year is calculated on an actuarial basis. The Company contributes the required funding for all ascertained liabilities to the Gratuity Plan. Trustees administer contributions made to the trust, and contributions are invested in specific designated instruments as permitted by Indian law. The Company’s overall investment strategy is to invest predominantly in fixed income funds managed by asset management companies and a small portion in equity funds. These funds further invest in debt securities such as money market instruments, government securities and public and private bonds. During the years ended December 31, 2017, 2018 and 2019, all of the plan assets were primarily invested in debt securities. In addition, in accordance with Mexican law, the Company provides certain termination benefits (the “Mexican Plan”) to all of its Mexican employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Mexican Plan is calculated on an actuarial basis. In addition, certain of the Company’s subsidiaries organized or operating in the Philippines and Japan have sponsored defined benefit retirement programs (respectively, the “Philippines Plan” and the “Japan Plan”). The full-year benefit costs of the Philippines Plan and the Japan Plan are calculated on an actuarial basis. Company contributions in respect of these plans are made to insurer-managed funds or to a trust. The trust contributions are further invested in government bonds. In addition, in accordance with Israeli law, the Company provides certain termination benefits (the “Israeli Plan”) to all of its Israeli employees based on the age, duration of service and salary of each eligible employee. The full-year benefit cost of the Israeli Plan is calculated on an actuarial basis. Current service costs for defined benefit plans are accrued in the year to which they relate on a monthly basis. Actuarial gains or losses, or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees or over the average remaining life expectancies for inactive employees if most of the plan obligations are payable to inactive employees. 17. Employee benefit plans (Continued) The following table sets forth the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of December 31, 2018 and 2019. As of December 31, 2018 2019 Change in benefit obligation Projected benefit obligation at the beginning of the year $ 58,094 $ 61,448 Service cost 7,833 8,915 Actuarial loss (gain) 470 12,323 Interest cost 3,822 4,667 Liabilities assumed on acquisition/ transfer of employees 503 96 Benefits paid (6,277 ) (7,043 ) Plan Amendments 995 (405 ) Effect of exchange rate changes (3,992 ) 560 Projected benefit obligation at the end of the year $ 61,448 $ 80,561 Change in fair value of plan assets Fair value of plan assets at the beginning of the year $ 45,560 $ 39,683 Employer contributions 1,573 35,459 Actual gain on plan assets 1,929 3,258 Actuarial gain/(loss) (9 ) 387 Benefits paid (6,228 ) (7,379 ) Effect of exchange rate changes (3,142 ) (508 ) Fair value of plan assets at the end of the year $ 39,683 $ 70,900 Funded, status, end of year $ (21,765 ) $ (9,661 ) Amounts recognized in the consolidated balance sheets Non-current assets (recorded under other assets-others) $ 1,622 $ 4,739 Current liabilities (recorded under accrued expenses and other current liabilities-retirement benefits) (1,111 ) (1,333 ) Non-current liabilities (recorded under other liabilities- retirement benefits) (22,276 ) (13,067 ) Funded status, end of year $ (21,765 ) $ (9,661 ) Amounts included in accumulated other comprehensive income (loss) as of December 31, 2017, 2018 and 2019 were as follows: As of December 31, 2017 2018 2019 Net actuarial loss $ (12,228) $ (11,037) (20,549 ) Net prior service credit/(cost) — (967) (717 ) Deferred tax assets 2221 3,451 2,067 Other comprehensive income, net $ (10,007) $ (8,553) (19,199 ) Changes in other comprehensive income (loss) during the year ended December 31, 2018 and 2019 were as follows: Net actuarial loss $ (951) $ (11,283 ) Amortization of net actuarial loss 1,202 1,150 Deferred income taxes 1,407 2,720 Net prior service credit/(cost) (944) 436 Effect of exchange rate changes 740 435 Other comprehensive income (loss), net $ 1,454 $ (6,542 ) 17. Employee benefit plans (Continued) Funded status for defined benefit plans The accumulated benefit obligation for defined benefit plans as of December 31, 2018 and 2019 was as follows: 2018 2019 Accumulated benefit obligation $ 43,703 $ 55,259 Net defined benefit plan costs for the years ended December 31, 2017, 2018 and 2019 include the following components: Year ended December 31, 2017 2018 2019 Service costs $ 7,735 $ 7,833 $ 8,915 Interest costs 3,252 3,822 4,667 Amortization of actuarial loss 1,177 806 1,384 Expected return on plan assets (2,412 ) (2,435 ) (2,605 ) One-time cost 209 — 202 Special termination benefits 426 — — Net defined benefit plan costs $ 10,387 $ 10,026 $ 12,563 The amount in “other comprehensive loss” that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $2,521. Expected Contributions The Company estimates that it will pay approximately $7,470 in fiscal 2020 related to contributions to defined benefit plans. The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2018 and 2019 are presented below: As of December 31, 2018 2019 Discount rate 8.30%-8.40% 6.80%-7.35% Rate of increase in compensation per annum 5.20%-11.00% 5.20%-11.50% The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2017, 2018 and 2019 are presented below: Year ended December 31, 2017 2018 2019 Discount rate 7.10% - 7.5% 7.40% - 7.60% 8.30%-8.40% Rate of increase in compensation per annum 5.20% - 11.00% 5.20% - 11.00% 5.20%-11.00% Expected long term rate of return on plan assets per annum 7.50% 7.50% 7.50% The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2018 and 2019 are presented below: As of December 31, 2018 2019 Discount rate 9.25 % 7.60 % Rate of increase in compensation per annum 5.50 % 5.50 % 17. Employee benefit plans (Continued) The weighted average assumptions used to determine the costs of the Mexican Plan for the years ended December 31, 2017, 2018 and 2019 are presented below: Year ended December 31, 2017 2018 2019 Discount rate 6.80 % 7.60 % 9.40 % Rate of increase in compensation per annum 5.50 % 5.50 % 5.50 % The weighted average assumptions used to determine the benefit obligations of the Philippines Plan as of December 31, 2018 and 2019 are presented below: As of December 31, 2018 2019 Discount rate 7.53 % 5.22 % Rate of increase in compensation per annum 6.00 % 6.00 % The weighted average assumptions used to determine the costs of the Philippines Plan for the years ended December 31, 2017, 2018 and 2019 are presented below: Year ended December 31, 2017 2018 2019 Discount rate 5.54 % 5.97 % 7.53 % Rate of increase in compensation per annum 8.00 % 8.00 % 6.00 % Expected long-term rate of return on plan assets per annum 4.00 % 4.00 % 1.00 % The weighted average assumptions used to determine the benefit obligation of the Japan Plan as of December 31, 2018 and 2019 are presented below: As of December 31, 2018 2019 Discount rate 0.076%-0.269% 0.094%-0.271% Rate of increase in compensation per annum 0.00% 0.00% The weighted average assumptions used to determine the costs of the Japan Plan for the years ended December 31, 2017, 2018 and 2019 are presented below: Year ended December 31, 2017 2018 2019 Discount rate 0.08% - 1.30% 0.113%-0.789% 0.076%-0.269% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% 0.00% Expected long term rate of return on plan assets per annum 0.00% - 3.09% 0.00%-1.84% 0.00%-1.77% The expected returns on plan assets set forth above are based on the Company’s expectation of the average long-term rate of return expected to prevail over the next 15 to 20 years on the types of investments prescribed by applicable statute. The Company evaluates these assumptions based on projections of the Company’s long-term growth and prevalent industry standards. Unrecognized actuarial loss is amortized over the average remaining service period of the active employees expected to receive benefits under the plan. 1 7. Employee benefit plans (Continued) Investment and Risk management strategy The overall investment objective of the Company’s defined benefit plans is to match the duration of the plans’ assets to the plans’ liabilities while managing risk in order to meet defined benefit obligations. The plans’ future prospects, their current financial conditions, our current funding levels and other relevant factors suggest that the plans can tolerate some interim fluctuations in market value and rates of return in order to achieve long-term objectives without undue risk to the plans’ ability to meet their current benefit obligations. Plan investments are exposed to risks including market, interest rate and operating risk. In order to mitigate significant concentrations of these risks, the assets are invested in a diversified portfolio primarily consisting of fixed income instruments, liquid assets, equities and debt. The fair values of the Company’s plan assets as of December 31, 2018 and 2019 by asset category are as follows: As of December 31, 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) Asset Category Equity $ 12 $ 12 $ — $ — Cash 11,001 11,001 — — Fixed income securities (Note a) 55,821 3,732 52,089 — Other securities (Note b) 4,066 2,630 1,436 — Total $ 70,900 $ 17,375 $ 53,525 $ — As of December 31, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Equity $ 7 $ 7 $ — $ — Cash 381 381 — — Fixed income securities (Note a) 36,499 3,345 33,154 — Other securities (Note b) 2,796 2,381 415 — Total $ 39,683 $ 6,114 $ 33,569 $ — (a) Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. (b) Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. 17. Employee benefit plans (Continued) The expected benefit plan payments set forth below reflect expected future service: Year ending December 31, 2020 $ 12,107 2021 11,946 2022 12,106 2023 13,475 2024 13,886 2025 – 2029 66,033 $ 129,553 The Company’s expected benefit plan payments are based on the same assumptions that were used to measure the Company’s benefit obligations as of December 31, 2019. Defined contribution plans During the years ended December 31, 2017, 2018 and 2019, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Year ended December 31, 2017 2018 2019 India $ 22,242 $ 23,877 $ 29,729 U.S. 11,147 13,454 19,401 U.K. 7,823 9,619 12,312 China 15,950 17,625 18,819 Other regions 4,059 4,604 5,804 Total $ 61,221 $ 69,179 $ 86,065 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 The Plan also provides an option for participants to elect to receive deferred compensation and earnings thereon on either fixed date(s) no earlier than two years following the applicable Plan year (or end of the applicable performance period for performance-based bonus compensation) or following a separation from service, in each case either in a lump sum or in annual installments over a term of up to 15 years. Each Plan participant’s compensation deferrals and discretionary supplemental employer contributions (if any) 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. 1 7. Employee benefit plans (Continued) The liability for the deferred compensation plan was $1,582 and $10,943 as of December 31, 2018 and December 31, 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 $11,208 as of December 31, 2018 and December 31, 2019, respectively. The cash surrender value of these insurance policies is included in “other assets” in the consolidated balance sheets. During the years ended December 31, 2018 and 2019, the change in the fair value of Plan assets was $(56) and $1,296, respectively, which is included in “other income (expense), net,” in the consolidated statements of income. During the years ended December 31, 2018 and 2019, the change in the fair value of deferred compensation liabilities was $(87) and $1,062, respectively, which is included in “selling, general and administrative expenses.” |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | 18. 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 options forfeited, expired, terminated or cancelled under any of the Company’s predecessor plans were added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares. During the year ended December 31, 2012, the number of common shares authorized for issuance under the 2007 Omnibus Plan was increased by 8,858,823 shares as a result of a one-time adjustment to outstanding unvested share awards in connection with a special dividend payment. A brief summary of each plan is provided below: 2007 Omnibus Plan The Company adopted the 2007 Omnibus Plan on July 13, 2007 and amended and restated it on April 11, 2012. The 2007 Omnibus Plan provided for the grant of awards intended to qualify as incentive stock options, non-qualified stock options, share appreciation rights, restricted share awards, restricted share units, performance units, cash incentive awards and other equity-based or equity-related awards. Under the 2007 Omnibus Plan, the Company was authorized to grant awards for the issuance of up to a total of 23,858,823 common shares. 2017 Omnibus Plan On May 9, 2017, the Company’s shareholders approved the adoption of the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”), pursuant to which 15,000,000 Company common shares are available for issuance. 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 Company’s adoption of the 2017 Omnibus Plan remain subject to the terms of the 2007 Omnibus Plan. Stock-based compensation costs relating to the foregoing plans during the years ended December 31, 2017, 2018 and 2019, were $35,112, $48,196 and $82,802, respectively, and have been allocated to cost of revenue and selling, general, and administrative expenses. Stock options All options granted under the 2007 and 2017 Omnibus Plans are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. 18. Stock-based compensation (Continued) Compensation cost is determined at the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model. The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in 2017, 2018 and 2019: 2017 2018 2019 Dividend yield 0.97% 0.95% -1.01% 0.82%-1.08% Expected life (in months) 84 84 84 Risk-free rate of interest for expected life 2.25% 2.67% - 2.93 % 1.56 %- 2.63% Volatility 24.28% 22.55% -22.73% 21.0%- 21.38% Volatility was calculated based on the historical volatility of the Company’s share price during a period equivalent to the estimated term of the option. The Company estimates the expected term of an option using the “simplified method,” which is based on the average of its contractual vesting term. The risk-free interest rate that the Company uses in the option valuation model is based on U.S. Treasury bonds with a term similar to the expected term of the options. The Company paid cash dividends of $0.075 and $0.085 per share in each quarter of fiscal 2018 and 2019, respectively. The Company has issued, and intends to continue to issue, new common shares upon stock option exercises and the vesting of share awards under its equity-based incentive compensation plans. A summary of stock option activity during the years ended December 31, 2017, 2018 and 2019 is set out below: Year ended December 31, 2017 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2017 5,707,690 $ 18.65 5.8 $ — Granted 250,000 24.74 — — Forfeited (80,000 ) 20.63 — — Expired — — — — Exercised (743,045 ) 14.50 — 8,512 Outstanding as of December 31, 2017 5,134,645 $ 19.52 5.6 $ 62,743 Vested as of December 31, 2017 and expected to vest thereafter (Note a) 4,988,875 $ 19.36 5.6 $ 61,779 Vested and exercisable as of December 31, 2017 2,203,146 $ 16.17 4.1 $ 34,303 Weighted average grant-date fair value of options granted during the period $ 6.62 18. Stock-based compensation (Continued) Year ended December 31, 2018 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2018 5,134,645 $ 19.52 5.6 $ — Granted 2,638,106 30.47 — — Forfeited (70,000 ) 27.65 — — Expired — — — — Exercised (441,076 ) 16.46 — 6,731 Outstanding as of December 31, 2018 7,261,675 $ 23.61 6.4 $ 34,143 Vested as of December 31, 2018 and expected to vest thereafter (Note a) 7,107,605 $ 23.50 6.4 $ 33,997 Vested and exercisable as of December 31, 2018 3,313,570 $ 17.69 3.7 $ 30,806 Weighted average grant-date fair value of options granted during the period $ 8.32 Year ended December 31, 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 (697,531 ) 15.33 — 18,724 Outstanding as of December 31, 2019 8,360,212 $ 25.33 6.5 $ 140,760 Vested as of December 31, 2019 and expected to vest thereafter (Note a) 8,006,985 $ 25.18 6.5 $ 136,017 Vested and exercisable as of December 31, 2019 3,111,039 $ 19.16 3.4 $ 71,584 Weighted average grant-date fair value of options granted during the period $ 6.98 (a) Options expected to vest reflect an estimated forfeiture rate. Cash received by the Company upon the exercise of stock options during the year ended December 31, 2017, 2018 and 2019 amounted to $14,896, $10,772 and $10,690. Tax benefits from the exercise of stock options during the years ended December 31, 2017, 2018 and 2019 were $2,016 and $2,473 and $2,966 (including excess tax benefits of $1,723, $2,131 and $2,743), respectively. Income tax benefits recognized in relation to stock-based compensation charges, excluding excess tax benefits, during the years ended December 31, 2017, 2018 and 2019 were $9,600, $11,783 and $18,921, respectively. As of December 31, 2019, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $24,447 which will be recognized over the weighted average remaining requisite vesting period of 3.5 years. Restricted Share Units The Company has granted restricted share units, or RSUs, under the 2007 and 2017 Omnibus Plans. Each RSU represents the right to receive one common share. The fair value of each RSU is the market price of one common share of the Company on the date of grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. 18. Stock-based compensation (Continued) A summary of RSU activity during the years ended December 31, 2017, 2018 and 2019 is set out below: Year ended December 31, 2017 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2017 117,905 $ 20.65 Granted 1,533,836 26.36 Vested (Note b) (45,248 ) 18.31 Forfeited (1,242 ) 25.53 Outstanding as of December 31, 2017 1,605,251 $ 26.17 Expected to vest (Note a) 1,371,567 Year ended December 31, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted 484,427 30.13 Vested (Note c) (358,697 ) 25.53 Forfeited (201,982 ) 27.09 Outstanding as of December 31, 2018 1,528,999 $ 27.45 Expected to vest (Note a) 1,360,048 Year ended December 31, 2019 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2019 1,528,999 $ 27.45 Granted 470,939 37.58 Vested (Note d) (672,025 ) 26.84 Forfeited (66,207 ) 30.43 Outstanding as of December 31, 2019 1,261,706 $ 31.41 Expected to vest (Note a) 1,149,286 (a) RSUs expected to vest reflect an estimated forfeiture rate. (b ) Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). 18. Stock-based compensation (Continued) (c ) 261,260 RSUs that vested during the period were net settled upon vesting by issuing 175,505 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, 52,405 shares in respect of which were issued in 2019 after withholding shares to the extent of minimum statutory withholding taxes. 44,562 RSUs vested in the year ended December 31, 2018, shares in respect of which will be issued in 2020 after withholding shares to the extent of minimum statutory withholding taxes. (d) 52,482 RSUs vested in the year ended December 31, 2016, 52,055 shares in respect of which were issued in 2018 after withholding shares to the extent of minimum statutory withholding taxes. 34,035 RSUs vested in the year ended December 31, 2016, 17,802 shares in respect of which were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. 53,546 RSUs vested in the year ended December 31, 2015, 53,023 shares in respect of which were issued in 2017 after withholding shares to the extent of minimum statutory withholding taxes. As of December 31, 2019, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $23,060, which will be recognized over the weighted average remaining requisite vesting period of 2.5 years. Performance Units The Company also grants stock awards in the form of performance units, or PUs, and has granted PUs under both the 2007 and 2017 Omnibus Plans. Each PU represents the right to receive one common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting term. During the performance period, the Company’s estimate of the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the years ended December 31, 2017, 2018 and 2019 is set out below: Year ended December 31, 2017 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2017 3,772,128 $ 23.04 5,524,114 Granted 1,811,292 25.22 3,622,584 Vested (Note b) (1,136,047) 16.78 (1,136,047) Forfeited (Note c) (1,583,913 ) 27.57 (1,627,313 ) Adjustment upon final determination of level of performance goal achievement (Note d) 37,480 25.22 Adjustment upon final determination of level of performance goal achievement (Note e) (3,482,398) Outstanding as of December 31, 2017 2,900,940 $ 24.40 2,900,940 Expected to vest (Note a) 2,657,685 18. Stock-based compensation (Continued) Year ended December 31, 2018 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2018 2,900,940 $ 24.40 2,900,940 Granted 1,682,740 30.62 3,365,480 Vested (Note f) (1,087,751 ) 22.73 (1,087,751 ) Forfeited (258,237 ) 26.03 (305,737 ) Adjustment upon final determination of level of performance goal achievement (Note g) 474,800 30.68 Adjustment upon final determination of level of performance goal achievement (Note h) (1,160,530 ) Outstanding as of December 31, 2018 3,712,402 $ 28.40 3,712,402 Expected to vest (Note a) 3,261,069 Year ended December 31, 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 1,579,109 34.68 3,158,218 Vested (Note i) (3,276) 27.47 (3,276) Forfeited (248,031 ) 29.04 (278,755 ) Adjustment upon final determination of level of performance goal achievement 1,018,260 34.72 Adjustment upon final determination of level of performance goal achievement (Note k) (530,125) Outstanding as of December 31, 2019 6,058,464 $ 31.07 6,058,464 Expected to vest (Note a) 5,507,640 (a) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (b ) Vested PUs were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). (c ) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards. (d ) Represents a 2.7% increase in the number of target shares as a result of achievement of higher-than-target performance for certain PUs granted in 2017, partially offset by a 12.5% reduction as a result of achievement of lower-than-target performance for certain PUs granted in 2017. (e ) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2017 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards. (f ) Vested PUs were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). (g ) Represents a 28.77% increase in the number of target shares expected to vest as a result of achievement of higher-than-target performance for PUs granted in 2018 partially offset by an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. 18. Stock-based compensation (Continued) (h ) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2018 based on the level of achievement of the performance goals. Also includes an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. (i) Vested PUs were net settled upon vesting by issuing 2,151 shares (net of minimum statutory tax withholding). (j ) Represents a 66.67% increase in the number of target shares expected to vest as a result of achievement of higher-than-target performance for PUs granted in 2019 partially offset by 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 (k) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2019 based on the level of achievement of the performance goals. Also includes 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. As of December 31, 2019, the total remaining unrecognized stock-based compensation cost related to PUs amounted to $76,386, which will be recognized over the weighted average remaining requisite vesting period of 1.8 years. Employee Stock Purchase Plan (ESPP) On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). In April 2018, these plans were amended and restated, and their terms were extended to August 31, 2028. The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day of the subsequent May, August, November and February. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP. During the years ended December 31, 2017, 2018 and 2019, 190,435, 245,467 and 264,440 common shares, respectively, were issued under the ESPP. The ESPP is considered compensatory under FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation—Stock Compensation. The compensation expense for the ESPP during the years ended December 31, 2017, 2018 and 2019 was $573, $802 and $1,083, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses. |
Capital stock
Capital stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Capital stock | 19. Capital stock The Company’s authorized capital stock as of December 31, 2018 and 2019 consisted of 500 million common shares with a par value of $0.01 per share, and 250 million preferred shares with a par value of $0.01 per share. There were 189,346,101 and 190,118,181 common shares, and no preferred shares, issued and outstanding as of December 31, 2018 and 2019, respectively. Holders of common shares are entitled to one vote per share. 19. Capital stock (Continued) The Company’s board of directors by resolution can establish one or more series of preferred shares having such par value, designations, dividend rates, relative voting rights, conversion or exchange rights, redemption rights, liquidation rights and other relative participation, optional or other rights, qualifications, limitations or restrictions as may be fixed by the board of directors without shareholder approval. Such rights, preferences, powers and limitations as may be established could also have the effect of discouraging an attempt to obtain control of the Company. These preferred shares are of the type commonly known as “blank-check” preferred shares. Under Bermuda law, the Company may declare and pay dividends from time to time unless there are reasonable grounds for believing that the Company is or would, after the payment, be unable to pay its liabilities as they become due or that the realizable value of its assets would thereby be less than the aggregate of its liabilities, its issued share capital, and its share premium accounts. Under the Company’s bye-laws, each common share is entitled to dividends if, as and when dividends are declared by the Company’s board of directors. There are no restrictions in Bermuda on the Company’s ability to transfer funds (other than funds denominated in Bermuda dollars) in or out of Bermuda or to pay dividends to U.S. residents who are holders of common shares. The Company’s ability to declare and pay cash dividends is restricted by its debt covenants. Share Repurchases 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. On March 29, 2017, the Company entered into an accelerated share repurchase (“ASR”) agreement with Morgan Stanley & Co. LLC (the “Dealer”) to repurchase Company common shares for an aggregate purchase price of $200,000. Pursuant to the ASR agreement, as amended in November 2017, the Company paid the aggregate purchase price to the Dealer upfront and received an initial delivery of 6,578,947 common shares on March 30, 2017, an additional delivery of 350,006 common shares on December 29, 2017 and a final delivery of 163,975 common shares on January 17, 2018 upon final settlement of the transaction. The weighted average price per share of the common shares delivered was $28.20. The Company’s purchase of its common shares under the ASR has been recorded as a reduction in retained earnings. All repurchased shares have been retired. The final number of common shares repurchased by the Company under the ASR agreement was based on the volume-weighted average share price of the Company’s common shares during the term of the transaction, less a discount and subject to adjustments pursuant to the terms of the ASR agreement. The ASR agreement contains customary provisions, including, among other things, with respect to mechanisms to determine the number of shares or the amount of cash that will be delivered at settlement, the required timing of delivery upon settlement, specific circumstances under which adjustments may be made to the repurchase transaction, and specific circumstances under which the repurchase transaction may be canceled prior to the scheduled maturity. During the years ended December 31, 2019 and December 31, 2018, the Company also purchased 766,154 and 4,921,192 The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the year ended December 31, 2017, December 31, 2018 and December 31, 2019, $16, $98 and $15, respectively, was deducted from retained earnings in direct costs related to share repurchases. Approximately $274,042 remained available for share repurchases under our existing share repurchase program as of December 31, 2019. This repurchase program does not obligate us to acquire any specific number of shares and does not specify an expiration date. 19. Capital stock (Continued) Dividend In February 2017, the Company’s board of directors approved a dividend program under which the Company paid a regular quarterly cash dividend of $0.06 per share to holders of its common shares, representing an annual dividend of $0.24 per share. On March 28, 2017, June 28, 2017, September 21, 2017, and December 20, 2017, the Company paid dividends of $0.06 per share, amounting to $11,957, $11,558, $11,581 and $11,590 in the aggregate, to shareholders of record as of March 10, 2017, June 12, 2017, September 8, 2017 and December 8, 2017, respectively. On February 12, 2018, the Company announced that its Board of Directors had approved a 25% increase in its quarterly cash dividend to $0.075 per share, up from $0.06 per share in 2017, representing an annual dividend of $0.30 per common share, up from $0.24 per share in 2017, payable to holders of the Company’s common shares. On March 21, 2018, June 20, 2018, September 19, 2018 and December 19, 2018, the Company paid dividends of $0.075 per share, amounting to $14,408, $14,240, $14,253 and $14,201 in the aggregate, to shareholders of record as of March 9, 2018, June 8, 2018, September 10, 2018 and December 10, 2018, respectively. On February 7, 2019, the Company announced that its Board of Directors had approved a 13% increase in its quarterly cash dividend to $0.085 per share, up from $0.075 per share in 2018, representing an 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, September 20, 2019 and December 18, 2019, the Company paid dividends of $0.085 per share, amounting to $16,119, $16,188, $16,208 and $16,156 in the aggregate, to shareholders of record as of March 8, 2019, June 12, 2019, September 11, 2019 and December 9, 2019, respectively. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | 20. Earnings per share The Company calculates earnings per share in accordance with FASB guidance on Earnings per Share. Basic and diluted earnings per common share give effect to the change in the number of common shares outstanding. The calculation of basic earnings per common share was determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding. The potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, common shares to be issued under the ESPP and performance units, have been included in the computation of diluted net earnings per share and number of weighted average shares outstanding, except where the result would be anti-dilutive. The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 1,007,480, 2,410,230 and 1,809,069 for the years ended December 31, 2017, 2018 and 2019, respectively. Year ended December 31, 2017 2018 2019 Net income available to Genpact Limited common shareholders $ 263,111 $ 282,019 $ 304,881 Weighted average number of common shares used in computing basic earnings per common share 193,864,755 190,674,740 190,074,475 Dilutive effect of stock-based awards 3,184,797 3,305,298 5,086,380 Weighted average number of common shares used in computing dilutive earnings per common share 197,049,552 193,980,038 195,160,855 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 1.36 $ 1.48 $ 1.60 Diluted $ 1.34 $ 1.45 $ 1.56 |
Cost of revenue
Cost of revenue | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Cost of revenue | 21. Cost of revenue Cost of revenue consists of the following: Year ended December 31, 2017 2018 2019 Personnel expenses $ 1,153,479 $ 1,322,651 $ 1,687,896 Operational expenses 481,012 543,006 521,041 Depreciation and amortization 46,947 56,111 85,751 $ 1,681,438 $ 1,921,768 $ 2,294,688 |
Selling, general and administra
Selling, general and administrative expenses | 12 Months Ended |
Dec. 31, 2019 | |
Selling General And Administrative Expenses [Abstract] | |
Selling, general and administrative expenses | 22. Selling, general and administrative expenses Selling, general and administrative expenses consist of the following: Year ended December 31, 2017 2018 2019 Personnel expenses $ 501,059 $ 518,897 $ 592,827 Operational expenses 178,573 166,437 192,107 Depreciation and amortization 9,829 8,531 9,967 $ 689,461 $ 693,865 $ 794,901 |
Other operating (income) expens
Other operating (income) expense, net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Other operating (income) expense, net | 23. Other operating (income) expense, net Year ended December 31, 2017 2018 2019 Other operating (income) expense* $ (7,277 ) $ (455 ) $ (34,545 ) Provision for impairment of intangible assets and property, plant and equipment 9,311 4,265 3,511 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) (3,695 ) (5,655 ) — Other operating (income) expense, net $ (1,661 ) $ (1,845 ) $ (31,034 ) *Includes a gain of $31,380 for the year ended December 31, 2019 on land rights transferred to a third-party real estate developer in exchange for an interest in commercial property being developed on the land. |
Interest income (expense), net
Interest income (expense), net | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift Interest [Abstract] | |
Interest income (expense), net | 24. Interest income (expense), net Interest income (expense), net consists of the following: Year ended December 31, 2017 2018 2019 Interest income $ 8,182 $ 11,388 $ 7,321 Interest expense (39,917 ) (48,507 ) (50,779 ) Interest income (expense), net $ (31,735 ) $ (37,119 ) $ (43,458 ) |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 25. Income taxes Income tax expense (benefit) for the years ended December 31, 2017, 2018 and 2019 is allocated as follows: Year ended December 31, 2017 2018 2019 Income from continuing operations $ 59,742 $ 80,763 $ 94,536 Other comprehensive income: Unrealized gains (losses) on cash flow hedges 457 (6,647 ) (4,058 ) Retirement benefits 670 (1,407 ) (2,720 ) Retained earnings: Reclassification from AOCI on early adoption of ASU 2018-02 — 2,265 — Deferred tax expense recognized on adoption of ASU 2014-09 — 5,303 — Accumulated Other Comprehensive Income: Reclassification to retained earnings on early adoption of ASU 2018-02 — (2,265 ) — 25. Income taxes (Continued) The components of income before income tax expense from continuing operations are as follows: Year ended December 31, 2017 2018 2019 Domestic (U.S.) $ 8,440 $ 49,986 $ 27,783 Foreign (other than U.S.) 312,143 312,035 371,634 Income before income tax expense $ 320,583 $ 362,021 $ 399,417 Income tax expense (benefit) attributable to income from continuing operations consists of: Year ended December 31, 2017 2018 2019 Current tax expense : Domestic (U.S. federal) $ 3,380 $ 6,466 $ 2,854 Domestic (U.S. state) 1,268 3,508 3,908 Foreign (other than U.S.) 65,485 64,735 104,089 $ 70,133 $ 74,709 $ 110,851 Deferred tax expense (benefit) : Domestic (U.S. federal) $ 3,549 $ 6,577 $ 2,669 Domestic (U.S. state) (2,809 ) (1,176 ) (1,679 ) Foreign (other than U.S.) (11,131 ) 653 (17,305 ) $ (10,391 ) $ 6,054 $ (16,315 ) Total income tax expense (benefit) $ 59,742 $ 80,763 $ 94,536 Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% Year ended December 31, 2017 2018 2019 Income before income tax expense $ 320,583 $ 362,021 $ 399,417 Statutory tax rates 35 % 21 % 21 % Computed expected income tax expense 112,204 76,024 83,878 Increase (decrease) in income taxes resulting from: Foreign tax rate differential (25,224 ) 23,373 34,566 Tax benefit from tax holiday (35,814 ) (23,003 ) (21,393 ) Non-deductible expenses 3,985 3,245 2,152 Effect of change in tax rates 2,778 (147 ) 6,497 Change in valuation allowance 9,041 27,826 10,515 Unrecognized tax benefits 1,611 3,008 5,502 Employment related tax incentive (1,918 ) (3,243 ) (5,239 ) Other* (6,921 ) (26,320 ) (21,942 ) Reported income tax expense (benefit) $ 59,742 $ 80,763 $ 94,536 *Following the transfer/closure of certain affiliated entities, deferred tax liabilities recorded against the outside basis difference were reversed amounting to $9,600, $18,510, $3,782 during the year ended December 31, 2017, 2018 and 2019. A portion of the profits of the Company’s operations is exempt from income tax in India. One of the Company’s Indian subsidiaries has certain units eligible for a tax holiday as a special economic zone unit in respect of 100% of the export profits it generates for a period of 5 years from commencement, 50% of such profits for the next 5 years (year 6 to year 10 from commencement) and 50% of the profits for an additional period of 5 years (year 11 to year 15 from commencement), subject to the satisfaction of certain capital investment requirements. The tax holidays for the Company’s existing special economic zone units will begin to expire on March 31, 2022 and will have fully expired on March 31, 2034, assuming the Company satisfies the capital investment requirements. 25. Income taxes (Continued) During the year ended December 31, 2019, the Indian tax authorities introduced a new tax regime under which a Company can elect to pay taxes at a lower tax rate by forgoing certain deductions and exemptions, including SEZ exemptions. The Company currently expects to elect out of applicable Indian tax holidays to benefit from the reduced tax rate after March 31, 2022. The effect of the Indian tax holiday on both basic and diluted earnings per share was $0.18, $0.12 and $0.11, respectively, for the years ended December 31, 2017, 2018 and 2019. The components of the Company’s deferred tax balances as of December 31, 2018 and 2019 are as follows: As of December 31, 2018 2019 Deferred tax assets Net operating loss carryforwards $ 64,013 $ 66,448 Accrued expenses and other liabilities 36,812 50,678 Provision for doubtful debts 9,650 10,583 Property, plant and equipment and lease assets 7,904 11,569 Share-based compensation 18,236 30,192 Retirement benefits 7,559 11,332 Contract liabilities 3,150 4,437 Tax credit carryforwards 22,409 10,739 Other 9,557 12,934 Gross deferred tax assets $ 179,290 $ 208,912 Less: Valuation allowance (51,986 ) (62,628 ) Total deferred tax assets $ 127,304 $ 146,284 Deferred tax liabilities Intangible assets, net $ 17,975 $ 24,819 Property, plant and equipment, net 5,493 6,067 Deferred cost 2,725 2,665 Investments in foreign subsidiaries not indefinitely reinvested 4,835 1,401 Derivative instruments 8,990 2,722 Goodwill 12,957 11,793 Other 7,843 11,092 Total deferred tax liabilities $ 60,818 $ 60,559 Net deferred tax asset $ 66,486 $ 85,725 As of December 31, Classified as 2018 2019 Deferred tax assets Non-current $ 74,566 $ 89,715 Deferred tax liabilities Non-current 8,080 3,990 $ 66,486 $ 85,725 The change in the Company’s total valuation allowance for deferred tax assets as of December 31, 2017, 2018 and 2019 is as follows: Year ended December 31, 2017 2018 2019 Opening valuation allowance $ 14,746 $ 24,549 $ 51,986 Reduction during the year (3,957 ) (2,307 ) (4,240 ) Addition during the year 13,760 29,744 14,882 Closing valuation allowance $ 24,549 $ 51,986 $ 62,628 25. Income taxes (Continued) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences are deductible. Management considers the scheduled reversal of deferred tax liabilities and projected taxable income in making this assessment. In order to fully realize a deferred tax asset, the Company must generate future taxable income prior to the expiration of the deferred tax asset under applicable law. Based on the level of historical taxable income and projections for future taxable income over the periods during which the Company’s deferred tax assets are deductible, management believes that it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances as of December 31, 2019. The amount of the Company’s deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry-forward period are reduced. For the years ended December 31, 2017 and 2018 and 2019, the Company recognized net excess tax benefits of $1,723 and $2,131 and $2,743, respectively, in income tax expense attributable to continuing operations. As of December 31, 2019, the Company’s deferred tax assets related to net operating loss carry-forwards of $268,412 amounted to $61,779 (excluding state net operating losses). Net operating losses of subsidiaries in the United Kingdom, Israel, South Africa, Hong Kong, Germany, Austria, New Zealand, the United States (for 2018) and Luxembourg (for 2016 and prior years) amounted to $166,816 and can be carried forward for an indefinite period. The Company’s remaining tax loss carry-forwards expire as set forth in the table below: US - Federal Europe Others Year ending December 31, 2020 $ — $ — $ 1,645 2021 — 948 676 2022 — 1,635 3,807 2023 — 3,803 831 2024 — 405 5,584 2025 — — 2,897 2026 — — 652 2027 — — 4,436 2028 — 2 2,874 2029 — — 196 2034 — 18,820 — 2035 — 11,954 — 2036 — 32,425 — 2037 7791 — — 2038 — — 45 2039 — — 170 $ 7,791 $ 69,992 $ 23,813 In the table above, “Europe” includes net operating losses of subsidiaries in Poland, the Czech Republic, Slovakia, Luxembourg and Portugal, while “Others” includes net operating losses of subsidiaries in Mexico, Japan, Philippines, China, India and Canada. As of December 31, 2019, the Company had additional deferred tax assets for U.S. state and local tax loss carry-forwards amounting to $4,669 with varying expiration periods between 2020 and 2038. 25. Income taxes (Continued) As of December 31, 2019, the Company had a total foreign tax credit carry-forward of $10,739 for subsidiaries in the United States, India and the Philippines, which will expire as set forth in the table below: Year ending December 31, Amount 2021 125 2027 2,431 2028 3,862 2029 3,745 2035 576 $ 10,739 With exceptions, the Company has not accrued any income, distribution or withholding taxes that would arise if the undistributed earnings of the Company’s foreign (non-Bermuda) subsidiaries that cannot be repatriated in a tax-free manner were to be repatriated. Due to the Company’s changing corporate structure, the various methods that are available to repatriate earnings, and uncertainty relative to the applicable taxes at the time of repatriation, it is not practicable to determine the amount of tax that would be imposed upon repatriation. If undistributed earnings are repatriated in the future, or are no longer deemed to be indefinitely reinvested, the company will accrue the applicable amount of taxes, the quantification of which is not practicable, associated with such earnings at that time. As of December 31, 2019, $464,899 of the Company’s $467,096 in cash and cash equivalents was held by the Company’s foreign (non-Bermuda) subsidiaries. $25,543 of this cash is held by foreign subsidiaries for which the Company expects to incur and has accrued a deferred tax liability on the repatriation of $15,561 of retained earnings. $439,356 of the Company’s cash and cash equivalents is held by foreign subsidiaries in jurisdictions where no tax is expected to be imposed upon repatriation of the retained earnings of such foreign subsidiaries or is being indefinitely reinvested. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act made broad and complex changes to the U.S. tax code that took effect beginning in 2018, including a reduction in the U.S. federal corporate income tax rate from 35% to 21%. As a result of the reduction in the federal corporate income tax rate, the Company revalued its net deferred tax assets, excluding tax credits to the extent affected by changes in the law as of December 31, 2017. Based on this revaluation, the Company recorded a net income tax expense of $3,182 to reduce its net deferred tax asset balance, which was recorded as additional income tax expense for the year ended December 31, 2017. The Company reports its gain/loss on derivatives designated as cash flow hedges, actuarial gain/loss on retirement benefits and currency translation adjustment, net of income taxes to the extent applicable, in AOCI. As of December 31, 2017, due to a reduction in the U.S. federal corporate income tax rate under the Tax Act from 35% to 21%, the Company revalued its net deferred tax assets, including deferred tax liabilities recorded through AOCI. Based on this revaluation, the Company recorded an income tax benefit of $2,265 relating to derivatives, reducing its net deferred tax liability balance, which was recorded as an income tax benefit in continuing operations for the year ended December 31, 2017. In the quarter ended March 31, 2018, the Company elected to early adopt ASU 2018-02, effective January 1, 2018, and made an election to reclassify the stranded income tax effects of the Tax Act from AOCI to retained earnings for all items of AOCI. The Company has elected to adopt the new guidance at the beginning of the period, and no prior periods have been adjusted. Accordingly, a stranded tax effect in AOCI of $2,265 resulting from the Tax Act has been adjusted through retained earnings. 25. Income taxes (Continued) The following table summarizes activities related to our unrecognized tax benefits from January 1 to December 31 for each of 2018 and 2019: 2018 2019 Opening balance at January 1 $ 26,060 $ 26,722 Increase related to prior year tax positions, including recorded in acquisition accounting 1,851 1,684 Decrease related to prior year tax positions (153 ) (1,232 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (1,841 ) (135 ) Increase related to current year tax positions, including recorded in acquisition accounting 2,408 4,270 Effect of exchange rate changes (1,603 ) (280 ) Closing balance at December 31 $ 26,722 $ 31,029 As of December 31, 2018 and 2019, the Company had unrecognized tax benefits amounting to As of December 31, 2018 and 2019, the Company had accrued An affiliate of the Company in India received an assessment order in 2016 seeking to assess tax amounting to $114,867 (including interest to the date of the order) on certain transactions that occurred in 2013. This amount excludes penalty or interest accrued since the date of the order. The Company filed an appeal against this assessment order with the Commissioner Income Tax (Appeals), the first tax appellant authority in India, which has ruled against the Company. Subsequent to year end, the Company filed an appeal with the Income Tax Appellate Tribunal of India which has stayed the recovery of the demand subject to partial payment (approximately $28,050) and adjustment of tax refunds relating to other tax years (approximately $27,069). The Company paid the tax amount under protest on February 26, 2020. Based on its evaluation of the facts underlying the transaction and legal advice received to date, the Company believes that it is more likely than not that this transaction would not be subject to tax liability in India. Accordingly, no reserve has been provided as of December 31, 2019. In the next twelve months and for all tax years that remain open to examinations by U.S. federal and various state, local, and other U.S. tax authorities, the Company estimates that it is reasonably possible that the total amount of its unrecognized tax benefits will vary. However, the Company does not expect significant changes within the next twelve months other than depending on the progress of tax matters or examinations with various tax authorities, which are difficult to predict. With certain immaterial exceptions, the Company is no longer subject to U.S. federal, state and local or other U.S. income tax audits by taxing authorities for years prior to 2016. The Company’s subsidiaries in India and China are open to examination by relevant taxing authorities for tax years beginning on or after April 1, 2012 and January 1, 2010, respectively. The Company regularly reviews the likelihood of additional tax assessments and adjusts its reserves as additional information or events require. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment reporting | 26. Segment reporting The Company manages various types of business process and information technology services in an integrated manner for clients in various industries and geographic locations. The Company's operating segments are significant strategic business units that align its products and services with how it manages its business, approaches key markets and interacts with its clients. Effective for the quarter and year ended December 31, 2019, the Company implemented operational changes in how its Chief Operating Decision Maker, or CODM, manages its businesses, including resource allocation and performance assessment. As a result of these changes, the Company now has three operating segments, representing the individual businesses that are run separately under the new structure. The Company’s new reportable segments are as follows: (1) Banking, Capital Markets and Insurance (BCMI); (2) Consumer Goods, Retail, Life Sciences and Healthcare (CGRLH); and (3) High Tech, Manufacturing and Services (HMS). The Company has restated segment information for the historical periods presented herein to conform to the current presentation. This change in segment presentation does not affect the Company's consolidated statements of income, balance sheets or statements of cash flows. The Company’s Chief Executive Officer, who has been identified as the CODM, reviews operating segment revenue, which is a GAAP measure, and operating segment adjusted income from operations, which is a non-GAAP measure. The Company does not allocate and therefore the CODM does not evaluate foreign exchange gain/(losses), interest income/(expense), other income/(expense), or income taxes by segment. The Company’s operating assets are shared by multiple segments. The Company manages assets on a total company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented to the CODM and are not reviewed by the CODM. Revenues and adjusted income from operations for each of the Company’s segments for the year ended December 31, 2019 were as follows: Reportable segments BCMI CGRLH HMS Others* Total Revenues, net 1,078,844 1,107,534 1,348,635 (14,470 ) 3,520,543 Adjusted income from operations 115,998 161,515 238,129 43,199 # 558,841 Stock-based compensation (83,885 ) Amortization of acquired intangible assets (other than included above) (31,458 ) Acquisition-related expenses (8,352 ) Foreign exchange gains (losses), net 7,729 Interest income (expense), net (43,458 ) Income tax expense (94,536 ) Net income attributable to Genpact Limited shareholders 304,881 *Revenues, net for “Others” primarily represents the impact of foreign exchange fluctuations, which is not allocated to the Company’s segments for management’s internal reporting purposes. Adjusted income from operations for “Others” primarily represents gains related to a transfer of land, government incentives and the impact of foreign exchange fluctuations, which are not allocated to the Company’s segments for management’s internal reporting purposes. 26. Segment reporting (Continued) #Includes $10,524 toward the accelerated charge of a contract cost asset relating to a wealth management platform used in the Company’s BCMI segment that the Company no longer plans to leverage beyond its current scope. If this charge had been recorded in the BCMI segment in the year ended December 31, 2019, AOI for the Company’s BCMI segment in 2019 would have been $105,474, with a corresponding increase in AOI of “Others” to $53,723. Revenues and adjusted income from operations for each of the Company’s segments for the year ended December 31, 2018 were as follows: Reportable segments BCMI CGRLH HMS Others** Total Revenues, net 1,079,673 903,225 1,005,070 12,822 3,000,790 Adjusted income from 0perations 148,712 116,705 177,209 30,688 473,314 Stock-based compensation (48,998 ) Amortization of acquired intangible assets (other than included above) (37,292 ) Acquisition-related expenses (2,362 ) Foreign exchange gains (losses), net 15,239 Interest income (expense), net (37,119 ) Income tax expense (80,763 ) Net income attributable to Genpact Limited shareholders 282,019 **Revenues, net for “Others” primarily represents the impact of foreign exchange fluctuations, which is not allocated to the Company’s three segments for management’s internal reporting purposes. AOI for Others primarily represents government incentives and the impact of foreign exchange fluctuations which are not allocated to the Company’s segments for management’s internal reporting purposes. Revenues and adjusted income from operations for the Company’s segments for the year ended December 31, 2017 were as follows: Reportable segments BCMI CGRLH HMS Others*** Total Revenues, net 1,054,660 852,170 827,528 2,571 2,736,929 Adjusted income from operations 150,545 84,908 126,238 67,939 429,630 Stock-based compensation (35,685 ) Amortization of acquired intangible assets (other than included above) (35,467 ) Acquisition-related expenses (5,886 ) Foreign exchange gains (losses), net 1,996 Interest income (expense), net (31,735 ) Income tax expense (59,742 ) Net income attributable to Genpact Limited Shareholders 263,111 ***Revenue, net for “Others” primarily represents the impact of foreign exchange fluctuations, which is not allocated to the Company’s three segments for management’s internal reporting purposes. AOI for Others primarily represents government incentives and the impact of foreign exchange fluctuations which are not allocated to the Company’s segments for management’s internal reporting purposes. 26. Segment reporting (Continued) Revenues from a single customer in the Company’s HMS segment comprised 9.8%, 8.9% and 13.6% of the Company’s consolidated total net revenues in 2017, 2018 and 2019, respectively. Net revenues by service type are as follows: Year ended December 31, 2017 2018 2019 Business process outsourcing $ 2,264,335 $ 2,502,806 $ 2,974,212 Information technology services 472,594 497,984 546,331 Total net revenues $ 2,736,929 $ 3,000,790 $ 3,520,543 These services are provided in each of the Company’s three segments. Net revenues from geographic areas based on the location of the Company’s service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. Year ended December 31, 2017 2018 2019 India $ 1,712,783 $ 1,739,455 $ 1,890,897 Asia, other than India 286,338 327,462 356,726 North and Latin America 455,059 641,716 863,748 Europe 282,749 292,157 409,172 Total net revenues $ 2,736,929 $ 3,000,790 $ 3,520,543 Property, plant and equipment, net by geographic region are as follows: As of December 31, 2018 2019 India $ 130,824 $ 161,227 Asia, other than India 14,866 17,212 North and Latin America 46,763 58,499 Europe 20,262 17,097 Total $ 212,715 $ 254,035 |
Net Revenues
Net Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Net Revenues | 27. Net Revenues Disaggregation of revenue In the following tables, the Company’s revenue is disaggregated by customer classification. Year ended December 31, 2017 2018 2019 GE $ 269,217 $ 268,210 $ 478,091 Global Clients 2,467,712 2,732,580 3,042,452 Total net revenues $ 2,736,929 $ 3,000,790 $ 3,520,543 27. Net Revenues (Continued) 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. See Note 5 for details on the Company’s accounts receivable and reserve for doubtful receivables. The following table provides details of the Company’s contract liabilities: As of December 31, 2018 As of December 31, 2019 Particulars Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Opening balance $ 26,266 $ 101,785 $ 22,892 $ 95,648 Impact of opening balance offset with contract asset — 21,348 3,821 25,604 Gross opening balance $ 26,266 $ 123,133 $ 26,713 $ 121,252 Additions 33,328 67,838 48,285 101,976 Effect of business combinations 273 75 5,950 — Revenue recognized (32,091 ) (68,697 ) (23,614 ) (48,671 ) Currency translation adjustments (1,063 ) (1,097 ) (1 ) (160 ) Gross closing balance $ 26,713 $ 121,252 $ 57,333 $ 174,397 Impact of closing balance offset with contract asset (3,821 ) (25,604 ) (12,515 ) (43,289 ) Closing balance (Note a) $ 22,892 $ 95,648 $ 44,818 $ 131,108 (a) Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet. The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of December 31, 2019: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 175,926 97,313 58,820 17,586 2,207 The following table provides details of the Company’s contract assets: Particulars As of December 31,2018 As of December 31,2019 Opening balance $ 43,366 $ 45,035 Impact of opening balance offset with contract liabilities 21,348 29,425 Gross opening balance $ 64,714 $ 74,460 Additions 48,216 66,396 Reduction in revenue recognized (38,470 ) (44,706 ) Gross closing balance $ 74,460 $ 96,150 Impact of closing balance offset with contract liabilities (29,425 ) (55,804 ) Closing balance (Note b) $ 45,035 $ 40,346 (b) Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. 27. Net Revenues (Continued) The following table provides details of the company’s contract cost assets: As of December 31, 2018 As of December 31, 2019 Particulars Sales incentive programs Transition activities Sales incentive programs Transition activities Opening balance $ 23,227 $ 139,284 $ 25,891 $ 134,302 Closing balance 25,891 134,302 35,366 170,132 Amortization 14,788 70,775 17,684 70,001 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related party transactions | 28. Related party transactions The Company has from time to time entered into related party transactions with Bain Capital Investors, LLC (“Bain”), which was an affiliate of significant shareholders of the Company until November 2019. During the year ended December 31, 2019, Bain’s affiliates sold their remaining shares in the Company, and Bain is no longer a related party. Accordingly, transactions between the Company and Bain or its affiliates are no longer presented as related party transactions. The Company has entered into related party transactions with its non-consolidating affiliates. The Company’s related party transactions can be categorized as follows: Revenue from services In the years ended December 31, 2017, 2018 and 2019, the Company recognized net revenues of $398, $714 and $478, respectively, from a client that is also a significant shareholder of the Company. In the years ended December 31, 2017, the Company recognized net revenues of $5,400 from a client that was a non-consolidating affiliate of the Company. As of June 30, 2017, this non-consolidated affiliate ceased to be a related party. Cost of revenue from services The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in cost of revenue. For the years ended December 31, 2017, 2018 and 2019, cost of revenue includes an amount of $2,043, $1,094 and $521, respectively, attributable to the cost of such services provided by the Company’s non-consolidating affiliates. Selling, general and administrative expenses The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the years ended December 31, 2017, 2018 and 2019, selling, general and administrative expenses include an amount of $315, $191 During the years ended December 31, 2017 and 2018, the Company engaged a significant shareholder of the Company to provide services to the Company at a cost of $57 and $30, respectively. Investment in equity affiliates During the year ended December 31, 2017, the Company invested $496 in its non-consolidating affiliates. During the year ended December 31, 2017, the Company recorded a charge of $2,849 related to an investment in one of its non-consolidating affiliates. This charge has been included in equity-method investment activity, net in the Company’s consolidated statement of income. As of December 31, 2018 and 2019, the Company’s investments in its non-consolidating affiliates amounted to $836 and $0, respectively. Others During the year ended December 31, 2017, the Company entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $477. During the year ended December 31, 2017, the Company entered into transactions with a client that is a significant shareholder of the Company for certain cost reimbursements amounting to $127. |
Other Income (expense), net
Other Income (expense), net | 12 Months Ended |
Dec. 31, 2019 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | 29. Other Income (expense), net Year ended December 31, 2017 2018 2019 Government incentives $ 26,882 $ 36,099 $ 3,976 Other income/(expense) (3,296 ) (338 ) 1,810 Other Income (expense), net $ 23,586 $ 35,761 $ 5,786 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 30. Commitments and contingencies Capital commitments As of December 31, 2018 and 2019, the Company has committed to spend $4,859 and $5,368, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of such purchases. Bank guarantees The Company has outstanding bank guarantees and letters of credit amounting to $9,487 and $9,585 as of December 31, 2018 and 2019, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purposes of maintaining a bonded warehouse. These guarantees may be revoked by the government agencies if they suffer any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees. Other commitments Certain units of the Company’s 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. |
Quarterly financial data (unaud
Quarterly financial data (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial data (unaudited) | 31. Quarterly financial data (unaudited) Three months ended Year ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 December 31, 2019 Total net revenues $ 809,206 $ 881,799 $ 888,799 $ 940,739 $ 3,520,543 Gross profit $ 290,069 $ 310,555 $ 315,140 $ 310,091 $ 1,225,855 Income from operations $ 90,072 $ 106,202 $ 113,584 $ 119,518 $ 429,376 Income before equity-method investment activity, net and income tax expense $ 79,320 $ 94,970 $ 110,794 $ 114,349 $ 399,433 Net Income $ 60,841 $ 73,722 $ 88,120 $ 82,198 $ 304,881 Net income attributable to Genpact Limited common shareholders $ 60,841 $ 73,722 $ 88,120 $ 82,198 $ 304,881 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.32 $ 0.39 $ 0.46 $ 0.43 $ 1.60 Diluted $ 0.31 $ 0.38 $ 0.45 $ 0.42 $ 1.56 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 189,451,845 190,163,359 190,599,049 190,083,647 190,074,475 Diluted 193,394,208 194,766,047 195,890,841 196,592,325 195,160,855 31. Quarterly financial data (unaudited) (Continued) Three months ended Year ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 December 31, 2018 Total net revenues $ 688,912 $ 728,561 $ 747,978 $ 835,339 $ 3,000,790 Gross profit $ 244,588 $ 265,663 $ 266,566 $ 302,205 $ 1,079,022 Income from operations $ 63,761 $ 79,522 $ 94,028 $ 110,841 $ 348,152 Income before Equity method investment activity, net and income tax expense $ 76,009 $ 81,668 $ 97,724 $ 106,632 $ 362,033 Net Income $ 63,934 $ 64,574 $ 73,603 $ 79,147 $ 281,258 Net (income) loss attributable to redeemable non-controlling interest $ 761 $ - $ - $ - $ 761 Net income attributable to Genpact Limited common shareholders $ 64,695 $ 64,574 $ 73,603 $ 79,147 $ 282,019 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.34 $ 0.34 $ 0.39 $ 0.42 $ 1.48 Diluted $ 0.33 $ 0.33 $ 0.38 $ 0.41 $ 1.45 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 192,816,626 190,132,664 190,024,924 189,724,744 190,674,740 Diluted 196,288,569 193,365,974 193,115,769 193,149,836 193,980,038 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 32. Subsequent Events Dividend On February 6, 2020, the Company announced that its Board of Directors has approved an approximately 15% increase in its quarterly cash dividend, representing a planned annual dividend of $0.39 per common share, increased from $0.34 per common share in 2019. The Board of Directors also declared a dividend for the first quarter of 2020 of $0.0975 per common share, which will be paid on March 18, 2020 to shareholders of record as of the close of business on March 9, 2020. The declaration of any future dividends will be at the discretion of the Board of Directors and subject to Bermuda and other applicable laws. |
Guarantor financial information
Guarantor financial information | 12 Months Ended |
Dec. 31, 2019 | |
Guarantor Financial Information [Abstract] | |
Guarantor financial information | 33. Guarantor financial information Genpact Luxembourg S.à r.l. (the “Issuer”), a subsidiary of the Company, issued $350,000 aggregate principal amount of 3.70% senior notes in March 2017 and $400,000 aggregate principal amount of 3.375% senior notes in November 2019. See Note 14 for additional information. Condensed Consolidating Balance Sheet As of December 31, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents 7,435 $ 2,029 $ 457,632 $ — $ 467,096 Intercompany Accounts receivable, net 84,803 — — (84,803 ) — Accounts receivable, net - — 914,255 — 914,255 Intercompany loans 1,003,032 12,400 1,976,064 (2,991,496 ) — Intercompany other receivable 61,456 124,043 158,234 (343,734 ) — Prepaid expenses and other current assets 3,383 977 165,965 - 170,325 Total current assets $ 1,160,109 $ 139,449 $ 3,672,150 $ (3,420,033 ) $ 1,551,676 Property, plant and equipment, Net 374 — 253,661 — 254,035 Operating lease right-of-use assets — — 330,854 — 330,854 Intercompany loans 100,000 — 500,000 (600,000 ) — Deferred tax assets — — 89,715 — 89,715 Investment in subsidiaries 583,600 3,362,390 644,554 (4,590,544 ) — Investment in debentures/bonds, intercompany 476,571 118,393 — (594,964 ) — Intercompany other receivable — 89,460 — (89,460 ) — Intangible assets, net — — 230,861 — 230,861 Goodwill — — 1,574,466 — 1,574,466 Contract cost assets — — 205,498 — 205,498 Other assets 311 85 216,683 — 217,079 Total assets $ 2,320,965 $ 3,709,777 $ 7,718,442 $ (9,295,000 ) $ 4,454,184 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 70,000 $ — $ 70,000 Current portion of Intercompany loans 232,027 1,971,037 788,432 (2,991,496 ) — Current portion of long-term debt 4,963 — 28,546 — 33,509 Accounts payable 1,176 122 20,683 — 21,981 Intercompany accounts payable — — 84,803 (84,803 ) — Income taxes payable — — 43,186 — 43,186 Intercompany other payable 56,936 110,974 175,824 (343,734 ) — Accrued expenses and other current liabilities 8,062 3,886 671,923 — 683,871 Operating leases liability — — 57,664 — 57,664 Total current liabilities $ 303,164 $ 2,086,019 $ 1,941,061 $ (3,420,033 ) $ 910,211 Long-term debt, less current portion 833,358 — 506,438 — 1,339,796 Operating leases liability — — 302,100 — 302,100 Deferred tax liabilities — — 3,990 — 3,990 Intercompany other payable — — 89,460 (89,460 ) — Intercompany loans and debenture, less current portion 500,000 — 694,964 (1,194,964 ) — Other liabilities — 217 208,699 — 208,916 Total liabilities $ 1,636,522 $ 2,086,236 $ 3,746,711 $ (4,704,456 ) $ 2,765,013 Shareholders' equity 684,443 1,623,541 3,971,731 (4,590,544 ) 1,689,171 Total liabilities and equity $ 2,320,965 $ 3,709,777 $ 7,718,442 $ (9,295,000 ) $ 4,454,184 33. Guarantor financial information (Continued) Condensed Consolidating Balance Sheet As of December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 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 Investment in debentures/bonds, intercompany 571,919 50,393 — (622,312 ) — Intercompany other receivable — 83,169 — (83,169 ) — Intangible assets, net — — 177,087 — 177,087 Goodwill — — 1,393,832 — 1,393,832 Contract cost assets — — 160,193 — 160,193 Other assets 682 — 154,477 — 155,159 Total assets $ 1,807,442 $ 3,264,895 $ 6,519,787 $ (8,062,679 ) $ 3,529,445 Liabilities and equity Current liabilities Short-term borrowings $ 100,000 $ — $ 195,000 $ — $ 295,000 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 Total liabilities and equity $ 1,807,442 $ 3,264,895 $ 6,519,787 $ (8,062,679 ) $ 3,529,445 33. Guarantor financial information (Continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 59,657 $ — $ 3,520,543 $ (59,657 ) $ 3,520,543 Cost of revenue — — 2,294,688 — 2,294,688 Gross profit $ 59,657 $ — $ 1,225,855 $ (59,657 ) $ 1,225,855 Operating expenses: Selling, general and administrative expenses 10,753 31,475 812,330 (59,657 ) 794,901 Amortization of acquired intangible assets — — 32,612 — 32,612 Other operating (income) expense, net — — (31,034 ) — (31,034 ) Income (loss) from operations $ 48,904 $ (31,475 ) $ 411,947 — $ 429,376 Foreign exchange gains (losses), net 613 119 6,997 — 7,729 Interest income (expense), net (22,356 ) — (21,102 ) — (43,458 ) Intercompany interest income (expense), net 76,905 (22,206 ) (54,699 ) — — Other income (expense), net 30 — 5,756 — 5,786 Income (loss) before equity-method investment activity, net and income tax expense $ 104,096 $ (53,562 ) $ 348,899 — $ 399,433 Gain (loss) on equity-method investment activity, net 21,599 358,443 97,580 (477,638 ) (16 ) Income before income tax expense $ 125,695 $ 304,881 $ 446,479 $ (477,638 ) $ 399,417 Income tax expense 6,516 — 88,020 — 94,536 Net income $ 119,179 $ 304,881 $ 358,459 $ (477,638 ) $ 304,881 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 119,179 $ 304,881 $ 358,459 $ (477,638 ) $ 304,881 Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 50,356 $ — $ 3,000,790 $ (50,356 ) $ 3,000,790 Cost of revenue — 5,188 1,916,580 — 1,921,768 Gross profit $ 50,356 $ (5,188 ) $ 1,084,210 $ (50,356 ) $ 1,079,022 Operating expenses: Selling, general and administrative expenses 11,324 23,703 709,260 (50,422 ) 693,865 Amortization of acquired intangible assets 48 — 38,802 — 38,850 Other operating (income) expense, net (17,599 ) — 15,754 — (1,845 ) Income (loss) from operations $ 56,583 $ (28,891 ) $ 320,394 $ 66 $ 348,152 Foreign exchange gains (losses), net 449 845 13,945 — 15,239 Interest income (expense), net (16,504 ) — (20,615 ) — (37,119 ) Intercompany interest income (expense), net 77,857 (19,279 ) (58,578 ) — — Other income (expense), net — — 35,761 — 35,761 Income (loss) before equity-method investment activity, net and income tax expense $ 118,385 $ (47,325 ) $ 290,907 $ 66 $ 362,033 Gain (loss) on equity-method investment activity, net 62,501 346,960 123,291 (532,764 ) (12 ) Income before income tax expense $ 180,886 $ 299,635 $ 414,198 $ (532,698 ) $ 362,021 Income tax expense 6,124 — 74,639 — 80,763 Net income $ 174,762 $ 299,635 $ 339,559 $ (532,698 ) $ 281,258 Net loss attributable to redeemable non-controlling interest — 761 — 761 Net income attributable to Genpact Limited shareholders $ 174,762 $ 299,635 $ 340,320 $ (532,698 ) $ 282,019 33. Guarantor financial information (Continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 46,722 $ — $ 2,736,929 $ (46,722 ) $ 2,736,929 Cost of revenue — — 1,681,438 — 1,681,438 Gross profit $ 46,722 $ — $ 1,055,491 $ (46,722 ) $ 1,055,491 Operating expenses: Selling, general and administrative expenses 9,859 21,076 728,145 (69,619 ) 689,461 Amortization of acquired intangible assets — — 36,412 — 36,412 Other operating (income) expense, net (3,412 ) — 1,751 — (1,661 ) Income (loss) from operations $ 40,275 $ (21,076 ) $ 289,183 $ 22,897 $ 331,279 Foreign exchange gains (losses), net 3,312 2 (1,318 ) — 1,996 Interest income (expense), net (11,375 ) — (20,360 ) — (31,735 ) Intercompany interest income (expense), net 47,547 (10,148 ) (37,399 ) — — Other income (expense), net 18,391 — 5,195 — 23,586 Income (loss) before equity-method investment activity, net and income tax expense $ 98,150 $ (31,222 ) $ 235,301 $ 22,897 $ 325,126 Gain (loss) on equity-method investment activity, net (15,058 ) 294,333 75,657 (359,475 ) (4,543 ) Income before income tax expense $ 83,092 $ 263,111 $ 310,958 $ (336,578 ) $ 320,583 Income tax expense 7,435 — 52,307 — 59,742 Net income $ 75,657 $ 263,111 $ 258,651 $ (336,578 ) $ 260,841 Net loss attributable to redeemable non-controlling interest — — 2,270 — 2,270 Net income attributable to Genpact Limited shareholders $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 33. Guarantor financial information (Continued) Condensed Consolidating Statement of Comprehensive Income (Loss) Year ended December 31, 2019 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Net income (loss) $ 119,179 $ 304,881 $ 358,459 $ (477,638 ) $ 304,881 Other comprehensive income: Currency translation adjustments (10,079 ) (20,297 ) (20,297 ) 30,376 (20,297 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 1,484 2,343 2,343 (3,827 ) 2,343 Retirement benefits, net of taxes (449 ) (6,542 ) (6,542 ) 6,991 (6,542 ) Other comprehensive income (loss) (9,044 ) (24,496 ) (24,496 ) 33,540 (24,496 ) Comprehensive income (loss) $ 110,135 $ 280,385 $ 333,963 $ (444,098 ) $ 280,385 Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 174,762 $ 299,635 $ 340,320 $ (532,698 ) $ 282,019 $ (761 ) Other comprehensive income: Currency translation adjustments (72,071 ) (109,656 ) (109,656 ) 181,727 (109,656 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 498 (46,293 ) (46,293 ) 45,795 (46,293 ) — Retirement benefits, net of taxes (190 ) 1,454 1,454 (1,264 ) 1,454 — Other comprehensive income (loss) (71,763 ) (154,495 ) (154,495 ) 226,258 (154,495 ) (424 ) Comprehensive income (loss) $ 102,999 $ 145,140 $ 185,825 $ (306,440 ) $ 127,524 $ (1,185 ) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 $ (2,270 ) Other comprehensive income: Currency translation adjustments 74,716 93,871 93,871 (168,587 ) 93,871 (341 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 9,788 12,611 12,611 (22,399 ) 12,611 — Retirement benefits, net of taxes 475 (3,787 ) (3,787 ) 3,312 (3,787 ) — Other comprehensive income (loss) 84,979 102,695 102,695 (187,674 ) 102,695 (341 ) Comprehensive income (loss) $ 160,636 $ 365,806 $ 363,616 $ (524,252 ) $ 365,806 $ (2,611 ) 33. Guarantor financial information (Continued) Condensed Consolidating Cash Flow Year ended December 31, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (476,680 ) $ 24,890 $ 217,668 $ 662,010 $ 427,888 Investing activities Purchase of property, plant and equipment — — (74,927 ) — (74,927 ) Payment for internally generated intangible assets (including intangibles under development) — — (33,834 ) — (33,834 ) Proceeds from sale of property, plant and equipment — — 1,750 — 1,750 Proceeds from sale of equity affiliates — — 2,168 — 2,168 Investment in subsidiaries (10,050 ) — — 10,050 — Payment for Purchase of bonds, intercompany — (103,100 ) — 103,100 — Proceeds from redemption of debentures/bonds, intercompany 86,818 35,100 — (121,918 ) — Payment for business acquisitions, net of cash acquired — — (252,276 ) — (252,276 ) Net cash (used for) provided by investing activities $ 76,768 $ (68,000 ) (357,119 ) $ (8,768 ) $ (357,119 ) Financing activities Repayment of capital lease obligations — — (7,380 ) — (7,380 ) Payment of debt issuance costs (2,317 ) — — — (2,317 ) Proceeds from long-term debt 400,000 — — — 400,000 Repayment of long-term debt (5,000 ) — (29,000 ) — (34,000 ) Proceeds from short-term borrowings — — 400,000 — 400,000 Repayment of Short-term borrowings (100,000 ) — (525,000 ) — (625,000 ) Proceeds from intercompany loans 108,455 128,500 517,367 (754,322 ) — Repayment of intercompany loans (5,000 ) (7,000 ) (35,312 ) 47,312 — Proceeds from issuance of common shares under stock-based compensation plans — 19,670 — — 19,670 Proceeds from issuance of common shares, intercompany — — 10,050 (10,050 ) — Payment for net settlement of stock-based awards — (3,850 ) — — (3,850 ) Payment of earn-out/deferred consideration — — (12,790 ) — (12,790 ) Dividend paid — (64,671 ) (45,000 ) 45,000 (64,671 ) Payment for stock repurchased and retired — (30,000 ) — — (30,000 ) Payment for expenses related to stock repurchase — (15 ) — — (15 ) Proceeds from issuance of bonds, intercompany — — 103,100 (103,100 ) — Repayment of debentures/bonds, intercompany — — (121,918 ) 121,918 — Net cash (used for) provided by financing activities $ 396,138 $ 42,634 $ 254,117 $ (653,242 ) $ 39,647 Effect of exchange rate changes (1,588 ) — (10,128 ) — (11,716 ) Net increase (decrease) in cash and cash equivalents (3,774 ) (476 ) 114,666 — 110,416 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 $ 7,435 $ 2,029 $ 457,632 $ — $ 467,096 33. Guarantor financial information (Continued) Condensed Consolidating Cash Flow Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (266,889 ) $ 11,905 $ 25,399 $ 569,096 $ 339,511 Investing activities Purchase of property, plant and equipment — — (84,978 ) — (84,978 ) Payment for internally generated intangible assets (including intangibles under development) — — (75,439 ) — (75,439 ) Proceeds from sale of property, plant and equipment — — 668 — 668 Investment in equity affiliates — — — — — Investment in subsidiaries (97,730 ) — — 97,730 — Dividend received — — — — — Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany 91,760 (50,393 ) — (41,367 ) — Payment for business acquisitions, net of cash acquired — — (111,571 ) — (111,571 ) Payment for purchase of redeemable non-controlling interest — — (4,730 ) — (4,730 ) Net cash (used for) provided by investing activities $ (5,970 ) $ (50,393 ) (276,050 ) $ 56,363 $ (276,050 ) Financing activities Repayment of capital lease obligations — — (2,395 ) — (2,395 ) Payment of debt issuance costs — — (4,293 ) — (4,293 ) Proceeds from long-term debt 100,000 — 29,186 — 129,186 Repayment of long-term debt (2,450 ) — (163,736 ) — (166,186 ) Proceeds from short-term borrowings 100,000 — 150,000 — 250,000 Repayment of Short-term borrowings — — (125,000 ) — (125,000 ) Proceeds from intercompany loans 172,047 308,500 334,320 (814,867 ) — Repayment of intercompany loans (81,479 ) (56,500 ) (107,792 ) 245,771 — Proceeds from issuance of common shares under stock-based compensation plans — 14,034 — — 14,034 Proceeds from issuance of common shares, intercompany 113,954 (113,954 ) Payment for net settlement of stock-based awards — (15,919 ) — — (15,919 ) Payment of earn-out/deferred consideration (1,797 ) — (1,559 ) — (3,356 ) Dividend paid — (57,102 ) (16,224 ) 16,224 (57,102 ) Payment for stock repurchased and retired — (154,058 ) — — (154,058 ) Payment for expenses related to stock repurchase — (98 ) — — (98 ) Payment for redemption of debentures/(proceeds) from issuance of bonds, intercompany — — (41,367 ) 41,367 — Net cash (used for) provided by financing activities $ 286,321 $ 38,857 $ 165,094 $ (625,459 ) $ (135,187 ) Effect of exchange rate changes (5,172 ) — (59,174 ) — (64,346 ) Net increase (decrease) in cash and cash equivalents 13,462 369 (85,557 ) — (71,726 ) Cash and cash equivalents at the beginning of the period 4,507 2,136 497,825 — 504,468 Cash and cash equivalents at the end of the period $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 33. Guarantor financial information (Continued) Condensed Consolidating Cash Flow Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (315,877 ) $ (8,345 ) $ 511,847 $ 171,453 $ 359,078 Investing activities Purchase of property, plant and equipment — — (57,231 ) — (57,231 ) Payment for internally generated intangible assets (including intangibles under development) — — (16,441 ) — (16,441 ) Proceeds from sale of property, plant and equipment — — 1,738 — 1,738 Investment in equity affiliates (523 ) — 27 — (496 ) Investment in subsidiaries (3,638 ) — 51,127 (47,489 ) — Payment for business acquisitions, net of cash acquired — — (284,822 ) — (284,822 ) Proceeds from divestiture of business, net of cash divested — — (4,738 ) — (4,738 ) Net cash (used for) provided by investing activities $ (4,161 ) $ — $ (310,340 ) $ (47,489 ) $ (361,990 ) Financing activities Repayment of capital lease obligations — — (2,708 ) — (2,708 ) Payment of debt issuance costs (2,630 ) — — — (2,630 ) Proceeds from long-term debt 350,000 — — — 350,000 Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 295,000 — 295,000 Repayment of short-term borrowings — — (285,000 ) — (285,000 ) Proceeds from intercompany loans — 263,886 — (263,886 ) — Repayment of intercompany loans (35,000 ) — (80,328 ) 115,328 — Proceeds from issuance of common shares under stock-based compensation plans — 15,528 — — 15,528 Payment for net settlement of stock-based awards — (10,296 ) — — (10,296 ) Payment of earn-out/deferred consideration — — (6,219 ) — (6,219 ) Dividend paid — (46,686 ) — — (46,686 ) Payment for stock repurchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock repurchase — (16 ) — — (16 ) Change in amounts due from/ due to consolidated affiliates — — (24,594 ) 24,594 — Excess tax benefit on stock-based compensation — — — — — Net cash (used for) provided by financing activities $ 312,370 $ 2,632 $ (143,849 ) $ (123,964 ) $ 47,189 Effect of exchange rate changes 960 — 36,608 — 37,568 Net increase (decrease) in cash and cash equivalents (7,668 ) (5,714 ) 57,658 — 44,277 Cash and cash equivalents at the beginning of the period 11,215 7,849 403,559 — 422,623 Cash and cash equivalents at the end of the period $ 4,507 $ 2,136 $ 497,825 $ — $ 504,468 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of preparation and principles of consolidation | (a) Basis of preparation and principles of consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated on consolidation. Non-controlling interest in subsidiaries outside of the Company’s control that is redeemable for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to redeemable non-controlling interest in the consolidated statements of income. |
Use of estimates | (b) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, the measurement of lease liabilities and right-of-use (ROU) assets, measurements of stock-based compensation, assets and obligations related to employee benefits, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, variable consideration, other obligations for revenue recognition, income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements. |
Business combinations | 2. Summary of significant accounting policies (Continued) (c) Business combinations, goodwill and other intangible assets The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired business, 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 or developed internally are carried at cost less accumulated amortization and accumulated impairment loss 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. The Company also capitalizes certain software and technology-related development costs incurred in connection with developing or obtaining software or technology for sale/lease to customers when the initial design phase is completed and commercial and technological feasibility has been established. Any development cost incurred before technological feasibility is established is expensed as incurred as research and development costs. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Capitalized software and technology costs include only (i) external direct costs of materials and services utilized in developing or obtaining software and technology and (ii) compensation and related benefits for employees who are directly associated with the project. Costs incurred in connection with developing or obtaining software or technology for sale/lease to customers which are under development and not put to use are disclosed under “intangible assets under development.” Advances paid toward the acquisition of intangible assets outstanding as of each balance sheet date are disclosed under “intangible assets under development.” Capitalized software and technology costs are included in intangible assets under technology-related intangible assets on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software and technology. The Company evaluates the remaining useful life of intangible assets that are being amortized at each reporting period wherever events and circumstances warrant a revision to the remaining period of amortization, and the remaining carrying amount of the intangible asset is amortized prospectively over that revised remaining useful life. |
Financial instruments and concentration of credit risk | 2. Summary of significant accounting policies (Continued) (d) Financial instruments and concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its customers. The General Electric Company (“GE”) accounted for 11% and 17% of the Company’s receivables as of December 31, 2018 and 2019, respectively. GE accounted for 10%, 9% and 14% of the Company’s revenues in the years ended December 31, 2017, 2018 and 2019, respectively. |
Accounts receivable | (e) Accounts receivable Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions, clients’ financial conditions, the amount of receivables in dispute, and the current receivables’ aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its clients. |
Revenue recognition | (f) Revenue Recognition (effective January 1, 2018) 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 upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for customization of applications, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for the services rendered between the last billing date and the balance sheet date. The Company’s contracts with customers also include incentive payments received for discrete benefits delivered or promised to be delivered to the customer or service level agreements that could result in credits or refunds to the customer. Revenues relating to such arrangements are accounted for as variable consideration when the amount of revenue to be recognized can be estimated to the extent that it is probable that a significant reversal of any incremental revenue will not occur. The Company records deferred revenue attributable to certain process transition activities where such activities do not represent separate performance obligations. Revenues relating to such transition activities are classified under contract liabilities and subsequently recognized ratably over the period in which the related services are performed. Costs relating to such transition activities are fulfillment costs which are directly related to the contract and result in the generation or enhancement of resources. Such costs are expected to be recoverable under the contract and are therefore classified as contract cost assets and recognized ratably over the estimated expected period of benefit under cost of revenue. Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from customers have been included as part of revenues. Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and the satisfaction of a performance obligation. 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. 2. Summary of significant accounting policies (Continued) The Company enters into multiple-element revenue arrangements in which a customer may purchase a combination of products or services. The Company determines whether each product or service promised to a customer is capable of being distinct, and is distinct in the context of the contract. If not, the promised products or services are combined and accounted for as a single performance obligation. In the event of a multiple-element revenue arrangement, the Company allocates the arrangement consideration to separately identifiable performance obligations based on their relative stand-alone selling prices. Certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription-based. Revenue from distinct perpetual licenses is recognized upfront at the point in time when the software is made available to the customer. Revenue from distinct, non-cancellable, subscription-based licenses is recognized at the point in time it is transferred to the customers. 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 customers are classified as contract assets. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and deducted from revenue. Timing of revenue recognition may differ from the timing of invoicing. If a payment is received in respect of services prior to the delivery of services, the payment is recognized as an advance from customers and classified as a contract liability. Contract assets and contract liabilities relating to the same customer contract are offset against each other and presented on a net basis in the consolidated financial statements. Significant judgements The Company often enters into contracts with customers that include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately rather than together may require significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. In instances where the standalone selling price is not directly observable, it is determined using information that may include market conditions and other observable inputs. Customer contracts sometimes include incentive payments received for discrete benefits delivered to the customer or service level agreements that could result in credits or refunds to the customer. Such amounts are estimated at contract inception and are adjusted at the end of each reporting period as additional information becomes available only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. |
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 right-of-use (“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 Company’s 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 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 the Company’s adoption of 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 whether: (1) the contract involves the use of a distinct identified asset, (2) 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) 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 as 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. Significant judgements 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. 2. Summary of significant accounting policies (Continued) 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 The Company has applied an incremental borrowing rate for the purpose of computing lease liabilities based on the rate prevailing in different geographies Impact on consolidated financial statements The following table summarizes 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 the 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. |
Reclassification | (h) Reclassification Certain reclassifications have been made in the consolidated financial statements of prior periods to conform to the classification used in the current period. The impact of such reclassifications on the consolidated financial statements is not material. |
Cash and cash equivalents | ( i) Cash and cash equivalents Cash and cash equivalents consist of cash and bank balances and all highly liquid investments purchased with an original maturity of three months or less. |
Short- term investments | 2. Summary of significant accounting policies (Continued) (j) Short-term investments All liquid investments with an original maturity greater than three months but less than one year are considered to be short-term investments. Marketable short-term investments are classified and accounted for as available-for-sale investments. Available-for-sale investments are reported at fair value with changes in unrealized gains and losses recorded as a separate component of other comprehensive income (loss) until realized. Realized gains and losses on investments are determined based on the specific identification method and are included in “Other income (expense), net.” The Company does not hold these investments for speculative purposes. |
Property, plant and equipment, net | (k) Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and amortization and accumulated impairment loss. Expenditures for replacements and improvements are capitalized, whereas the costs of maintenance and repairs are charged to earnings as incurred. The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Computer software 4-7 Leasehold improvements Lease period Vehicles 3-4 The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs include only (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs incurred while developing internal-use computer software. Capitalized computer software costs are included in property, plant and equipment on the Company’s balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software. Advances paid towards acquisition of property, plant and equipment outstanding as of each balance sheet date and the cost of property, plant and equipment not put to use before such date are disclosed under “Capital work in progress.” |
Impairment of long-lived assets | (l) Impairment of long-lived assets Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach. |
Foreign currency | (m) Foreign currency The Company’s consolidated financial statements are reported in U.S. dollars, the Company’s functional currency. The functional currency for the Company’s subsidiaries organized in Europe, other than the United Kingdom, the Czech Republic, Luxembourg and one subsidiary in Poland, is the euro, and the functional currencies of the Company’s subsidiaries organized in Brazil, China, Colombia, Guatemala, India, Israel, Japan, Morocco, South Africa, the Philippines, Poland, the Czech Republic, Hong Kong, Singapore, Australia and Canada are their respective local currencies. The functional currency of all other Company subsidiaries is the U.S. dollar. The translation of the functional currencies of the Company’s subsidiaries into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect as of the balance sheet date and for revenues and expense accounts using a monthly average exchange rate prevailing during the respective period. The gains or losses resulting from such translation are reported as currency translation adjustments under other comprehensive income (loss), net, under accumulated other comprehensive income (loss) as a separate component of equity. 2. Summary of significant accounting policies (Continued) Monetary assets and liabilities of each subsidiary denominated in currencies other than the subsidiary’s functional currency are translated into their respective functional currency at the rates of exchange prevailing on the balance sheet date. Transactions of each subsidiary in currencies other than the subsidiary’s functional currency are translated into the respective functional currencies at the average monthly exchange rate prevailing during the period of the transaction. The gains or losses resulting from foreign currency transactions are included in the consolidated statements of income. |
Derivative instruments and hedging activities | (n) Derivative instruments and hedging activities In the normal course of business, the Company uses derivative financial instruments to manage fluctuations in foreign currency exchange rates and interest rate fluctuation. The Company enters into forward foreign exchange contracts to mitigate the risk of changes in foreign exchange rates on intercompany transactions and forecasted transactions denominated in foreign currencies and interest rate swaps to mitigate interest rate fluctuation risk on its indebtedness. The Company recognizes derivative instruments and hedging activities as either assets or liabilities in its consolidated balance sheets and measures them at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. Changes in the fair values of derivatives designated as cash flow hedges are deferred and recorded as a component of other comprehensive income (loss) reported under accumulated other comprehensive income (loss) until the hedged transactions occur and are then recognized in the consolidated statements of income along with the underlying hedged item and disclosed as part of “Total net revenues,” “Cost of revenue,” “Selling, general and administrative expenses,” and “Interest expense,” as applicable. Changes in the fair value of derivatives not designated as hedging instruments and the ineffective portion of derivatives designated as cash flow hedges are recognized in the consolidated statements of income and are included in foreign exchange gains (losses), net, and other income (expense), net, respectively. With respect to derivatives designated as cash flow hedges, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also formally assesses, both at the inception of the hedge and on a quarterly basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If it is determined that a derivative or portion thereof is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, the Company will prospectively discontinue hedge accounting with respect to that derivative instrument. In all situations in which hedge accounting is discontinued and the derivative is retained, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent change in its fair value in the consolidated statements of income. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately, in foreign exchange gains (losses), net in the consolidated statements of income, the gains and losses attributable to such derivative that were accumulated in other comprehensive income (loss). |
Income taxes | (o) Income taxes The Company accounts for income taxes using the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their tax bases and for all operating loss and tax credit carry forwards, if any. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates is recognized in the consolidated statement of income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company applies a two-step approach for recognizing and measuring the benefit of tax positions. The first step is to evaluate the tax position for recognition by determining, based on the technical merits, that the position will more likely than not be sustained upon examination. The second step is to measure the tax benefit as the largest amount of the tax benefit that is greater than 50 percent likely of being realized upon settlement. The Company includes interest and penalties related to underpayment of income taxes within income tax expense The Company follows the specific identification approach for releasing stranded tax effects from accumulated other comprehensive income (“AOCI”) upon recognition of these AOCI items in the consolidated statement of income. |
Employee benefit plans | 2. Summary of significant accounting policies (Continued) (p) Employee benefit plans Contributions to defined contribution plans are charged to consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees. The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable. On January 1, 2018, the Company adopted ASU 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The service cost is recognized under “cost of revenue” and “selling, general and administrative expenses,” depending on the functional area of the underlying employees included in the plans, and the non-operating components of net benefit plan costs are included within “other income (expense), net” in the consolidated statements of income. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return on plan assets, future compensation increases and attrition rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. |
Deferred Compensation Plans | (q) Deferred Compensation Plans The Company maintains a non-qualified deferred compensation plan for certain employees. The plan is accounted for using the fair value measurement approach. Plan earnings are calculated by reference to actual earnings of the funds chosen by individual participants. In connection with the administration of this plan, the Company has purchased Company-owned life insurance policies insuring the lives of certain employees, held under a Rabbi Trust. The Company consolidates the invested assets of the trust. The cash surrender value of these insurance policies is included in “other assets” in the consolidated balance sheets at fair value. Gains or losses on the plan’s assets and changes in the fair value of deferred compensation liabilities are included in “other income (expense), net,” and “selling, general and administrative expenses,” respectively, in the consolidated statements of income. |
Stock-based compensation | (r) Stock-based compensation The Company recognizes and measures compensation expense for all stock-based awards based on the grant date fair value. For option awards, grant date fair value is determined under the option-pricing model (Black-Scholes-Merton model) and for stock based awards other than option awards, grant date fair value is determined on the basis of the fair market value of a Company common share on the date of grant of such awards. The fair value determined at the grant date is expensed over the vesting period of the stock-based awards. The Company recognizes compensation expense for stock-based awards net of estimated forfeitures. Stock-based compensation recognized in the consolidated statements of income is based on awards ultimately expected to vest. As a result, the expense has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from such estimates. |
Accelerated Share Repurchase | (s) Accelerated Share Repurchase The Company entered into an accelerated share repurchase (“ASR”) agreement in 2017 with a third-party financial institution to repurchase the Company’s common shares. Under the ASR agreement, the Company paid an upfront amount to the financial institution and received an initial delivery of shares. Upon an interim delivery and settlement of the ASR agreement, the financial institution delivered |
Government incentives | 2. Summary of significant (t) Government incentives The Company recognizes incentives in the consolidated statements of income under “other income (expense), net.” Incentives are recognized in the consolidated statements of income when there is reasonable assurance that the Company will comply with the conditions for their receipt and a reasonable expectation that the funds will be received. In certain circumstances, the receipt of an incentive may not be subject to any condition or requirement to incur further costs, in which case the incentive is recognized in the consolidated statement of income for the period in which it becomes receivable. In the event that it becomes likely that the Company will be required to repay an incentive that has already been recognized, the Company makes a provision for the estimated liability. |
Earnings (loss) per share | (u) Earnings Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive. |
Commitments and contingencies | (v) Commitments Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred. |
Debt Restructuring | (w) Debt restructuring The Company accounts for any restructuring of its credit facility using the ten percent cash flow test in accordance with ASC 470, Debt. If the cash flow effect of the change in terms on a present-value basis is less than ten percent, the debt instruments are not considered to be substantially different, and are accounted for as a modification. If the change is more than ten percent, it is treated as an extinguishment. In performing the cash flow test, the Company includes all amounts paid to its lenders in connection with the restructuring but excludes third party expenses. In the case of a modification, all new fees paid to lenders are capitalized and amortized as part of the existing effective yield and any new fees paid to third parties are expensed as incurred under selling, general and administrative expenses. No gain or loss is recorded in the case of a modification. In the case of an extinguishment, all new fees paid to lenders are expensed as incurred under selling, general and administrative expenses and any new fees paid to third parties are capitalized and amortized as a debt issuance cost. The old debt is derecognized and the new debt is recorded at fair value and a gain or loss is recorded for the difference between the net carrying value of the original debt and the fair value of the new debt. |
Recently issued accounting pronouncements | (x) Recently issued accounting pronouncements The authoritative bodies release standards and guidance which are assessed by management for impact on the company’s consolidated financial statements. The 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, with a date of initial application of January 1, 2019 using the modified retrospective approach. The cumulative impact of the adoption of this standard has been described in section (g) above. 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 was 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. 2. Summary of significant accounting policies (Continued) 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 a statement of income is required to be filed with all significant reconciling items. The Company presented changes in stockholders' equity as separate financial statements for the current and comparative year-to-date interim periods beginning on January 1, 2019. This guidance was effective immediately upon issuance. The additional elements of the ASU did not have a material impact on the Company's 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 requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings. The ASU is effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020. 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 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. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses.” This ASU clarifies that the scope of the guidance related to expected recoveries extends to purchased financial assets with credit deterioration. For entities that have not yet adopted ASU 2016-13, the amendments in ASU 2019-11 are effective on the same date as those in ASU 2016-13. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-11 are effective for fiscal years beginning January 1, 2020 and interim periods therein. The Company has elected to adopt ASU 2016-13, ASU 2019-05 and ASU 2019-11 beginning January 1, 2020, including interim periods in fiscal year 2020. The Company has concluded its assessment of adopting ASU No. 2016-13, 2019-05 and 2019-11 and expects that these standards will not have material impact on its financial statements. 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. The Company does not expect the adoption of this update to have a material impact on its consolidated results of operations, cash flows, financial position or disclosures. In August 2018, the FASB issued ASU No. 2018-14, “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. The Company does not expect the adoption of this update to have a material impact on its consolidated results of operations, cash flows, financial position or disclosures. 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. The Company does not expect the adoption of this update to have a material impact on its consolidated results of operations, cash flows, financial position or disclosures. In November 2019, the FASB issued ASU No. 2019-08, “Codification Improvements—Share-Based Consideration Payable to a Customer.” The ASU clarifies that share-based consideration payable to a customer is measured in accordance with guidance under AC 718--Share based payments. The ASU is effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020. The Company does not expect the adoption of this update to have a material impact on its consolidated results of operations, cash flows, financial position or disclosures. In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes”. This ASU removes certain exceptions for investments, intra-period tax allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The ASU is effective for the Company for fiscal years, and interim periods within those fiscal years, 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. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 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 table summarizes 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 the 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. |
Schedule of Estimated Economic Useful Lives of Property Plant and Equipment | The Company depreciates and amortizes all property, plant and equipment using the straight-line method over the following estimated economic useful lives of the assets: Years Buildings 40 Furniture and fixtures 4 Computer equipment and servers 4 Plant, machinery and equipment 4 Computer software 4-7 Leasehold improvements Lease period Vehicles 3-4 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | As of December 31, 2018 2019 Cash and other bank balances $ 368,396 $ 467,096 Total $ 368,396 $ 467,096 |
Accounts receivable, net of r_2
Accounts receivable, net of reserve for doubtful receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Reserve for Doubtful Receivables | The following table provides details of the Company’s reserve for doubtful receivables: Year ended December 31, 2017 2018 2019 Opening balance as of January 1 $ 15,519 $ 23,660 $ 23,960 Additions due to acquisitions 235 — 1,004 Additions charged/reversal released to cost and expense 9,819 1,857 7,443 Deductions/effect of exchange rate fluctuations (1,913 ) (1,557 ) (2,438 ) Closing balance $ 23,660 $ 23,960 $ 29,969 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 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 December 31, 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) $ 21,309 $ — $ 21,309 $ — Deferred compensation plan assets (a, e) $ 11,208 $ — $ — $ 11,208 Total $ 32,517 $ — $ 21,309 $ 11,208 Liabilities Earn out consideration (Note b, d) $ 22,184 $ — $ — $ 22,184 Derivative instruments (Note b, c) $ 24,239 $ — $ 24,239 $ — Deferred compensation plan liability (b, f) $ 10,943 $ — $ — $ 10,943 Total $ 57,366 $ — $ 24,239 $ 33,127 (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 policies 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 | The following table provides a roll-forward of the fair value of deferred compensation plan assets categorized as level 3 in the fair value hierarchy for the year ended December 31, 2018 and 2019: Year ended December 31, 2018 2019 Opening balance $ — $ 1,613 Additions (net of redemption) 1,669 8,299 Change in fair value of deferred compensation plan assets (Note a) (56 ) 1,296 Closing balance $ 1,613 $ 11,208 (a) Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. |
Business Acquisition Contingent Consideration | |
Roll-Forward of Fair Value of Earn-out Consideration and Deferred Compensation Liabilities Categorized as Level 3 in Fair Value Hierarchy | The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the years ended December 31, 2018 and 2019: Year ended December 31, 2018 2019 Opening balance $ 24,732 $ 17,073 Earn-out consideration payable in connection with acquisitions — 21,701 Payments made on earn-out consideration (Note a) (3,356 ) (17,098 ) Change in fair value of earn-out consideration (Note b) (5,655 ) — Others (Note c) 1,352 508 Closing balance $ 17,073 $ 22,184 (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 $0 and $4,308 for the year ended December 31, 2018 and 2019, respectively. 6. Fair Value Measurements (Continued) (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) “Others” is comprised of interest expense included in “interest income (expense), net” and the impact of changes in foreign exchange reported in “foreign exchange gains (losses), net” in the consolidated statements of income. This also includes a cumulative translation adjustment reported as a component of other comprehensive income (loss). |
Deferred Compensation Liabilities | |
Roll-Forward of Fair Value of Earn-out Consideration and Deferred Compensation Liabilities Categorized as Level 3 in Fair Value Hierarchy | The following table provides a roll-forward of the fair value of deferred compensation liabilities categorized as level 3 in the fair value hierarchy for the year ended December 31, 2018 and 2019: Year ended December 31, 2018 2019 Opening balance $ — $ 1,582 Additions (net of redemption) 1,669 8,299 Change in fair value of deferred compensation plan liabilities (Note a) (87 ) 1,062 Closing balance $ 1,582 $ 10,943 (a) Changes in the fair value of deferred compensation liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 As of December 31, 2018 As of December 31, 2019 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,439,000 $ 1,305,000 $ (3,643 ) $ (5,740 ) United States Dollars (sell) Philippines Peso (buy) 55,800 66,600 (1,510 ) 462 Euro (sell) United States Dollars (buy) 136,412 122,337 4,804 4,135 Pound Sterling (buy) United States Dollars (sell) 128 — (128 ) — Singapore Dollars (buy) United States Dollars (sell) — 10,017 — 38 Euro (sell) Romanian Leu (buy) 41,198 26,918 (299 ) (314 ) Japanese Yen (sell) Chinese Renminbi (buy) 40,568 29,350 (2,195 ) (258 ) Pound Sterling (sell) United States Dollars (buy) 27,517 9,089 495 383 Australian Dollars (sell) United States Dollars (buy) 89,780 35,972 3,548 1,924 United States Dollars (sell) Hungarian Font (buy) — 20,500 — 162 Hungarian Font (Sell) Euro (buy) — 9,534 — (157 ) Interest rate swaps (floating to fixed) 507,425 477,604 7,782 (3,565 ) 8,854 (2,930 ) (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or other market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. 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 Values of Derivative Instruments and Location in Financial Statements | The fair values of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2018 As of December 31, 2019 As of December 31, 2018 As of December 31, 2019 Assets Prepaid expenses and other current assets $ 23,038 $ 16,214 $ 11,490 $ 2,009 Other assets $ 9,571 $ 3,086 $ — $ — Liabilities Accrued expenses and other current liabilities $ 15,148 $ 6,152 $ 225 $ 814 Other liabilities $ 19,872 $ 17,273 $ — $ — |
Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income | In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below: Year ended December 31, 2017 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 Opening balance $ 37,461 $ (13,979) $ 23,482 $ 50,529 $ (14,436) $ 36,093 $ (2,411) $ (5,524) (7,935) Adoption of ASU 2018-02 (refer note 25) — — — — 2,265 2,265 — — — Net gains (losses) reclassified into statement of income on completion of hedged transactions (Note a) 54,494 (17,725) 36,769 9,336 (1,073) 8,263 19,401 (7,212) 12,189 Changes in fair value of effective portion of outstanding derivatives, net 67,562 (18,182) 49,380 (43,604) 5,574 (38,030) 17,686 (3,154) 14,532 Gain (loss) on cash flow hedging derivatives, net 13,068 (457) 12,611 (52,940) 6,647 (46,293) (1,715) 4,058 2,343 Closing balance $ 50,529 $ (14,436) $ 36,093 $ (2,411) $ (5,524) $ (7,935) $ (4,126) $ (1,466) $ (5,592) . |
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | 7. Derivative financial instruments (Continued) The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) reclassified Derivatives in recognized in OCI on reclassified from OCI into Statement of Income Cash Flow Derivatives (Effective Portion) from OCI into (Effective Portion) Hedging Year ended December 31, Statement of Income Year ended December 31, Relationships 2017 2018 2019 (Effective Portion) 2017 2018 2019 Forward foreign exchange contracts $ 66,037 $ (45,840) $ 24,581 Revenue $ 5,858 $ (716) $ 6,782 Interest rate swaps 1,525 2,236 (6,895) Cost of revenue 37,849 4,723 6,435 Selling, general and administrative expenses 10,849 1,543 1,732 Interest expense (62) 3,786 4,452 $ 67,562 $ (43,604) $ 17,686 $ 54,494 $ 9,336 $ 19,401 There were no gains (losses) recognized in income on the ineffective portion of derivatives and excluded from effectiveness testing for the years ended December 31, 2017, 2018 and 2019, respectively. N on-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Year ended December 31, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2017 2018 2019 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ 16,696 $ (6,240 ) $ 4,299 $ 16,696 $ (6,240 ) $ 4,299 (a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items, such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 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, 2018 2019 Advance income and non-income taxes $ 58,701 $ 43,763 Contract asset (Note 27) 22,472 19,170 Prepaid expenses 25,996 29,734 Derivative instruments 34,528 18,223 Employee advances 3,772 4,209 Deposits 2,758 1,784 Advances to suppliers 1,998 4,289 Others 62,252 49,153 $ 212,477 $ 170,325 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | Property, plant and equipment, net consist of the following: As of December 31, 2018 2019 Land $ 9,401 $ 5,923 Buildings 43,078 42,595 Furniture and fixtures 47,206 49,849 Computer equipment and servers 210,239 229,890 Plant, machinery and equipment 88,937 105,004 Computer software 138,824 141,330 Leasehold improvements 105,965 123,413 Vehicles 5,309 120 Capital work in progress 11,795 46,037 Property, plant and equipment, gross $ 660,754 $ 744,161 Less: Accumulated depreciation and amortization (448,039 ) (490,126 ) Property, plant and equipment, net $ 212,715 $ 254,035 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table presents the changes in goodwill for the years ended December 31, 2018 and 2019: As of December 31, 2018 2019 Opening balance $ 1,337,122 $ 1,393,832 Goodwill relating to acquisitions consummated during the period 91,936 185,381 Impact of measurement period adjustments 816 (988) Effect of exchange rate fluctuations (36,042) (3,759) Closing balance $ 1,393,832 $ 1,574,466 The following table presents the changes in goodwill by reporting unit for the year ended December 31, 2019: BCMI CGRLH HMS Total Opening balance $ 398,601 512,296 482,935 1,393,832 Goodwill relating to acquisitions consummated during the period 20,072 44,365 120,944 185,381 Impact of measurement period adjustments (380) (151) (457) (988) Effect of exchange rate fluctuations (1,080) (1,380) (1,299) (3,759) ) Closing balance $ 417,213 555,130 602,123 1,574,466 |
Summary of Intangible Assets | The Company’s intangible assets are as follows: As of December 31, 2018 As of December 31,2019 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 368,558 $ 306,582 $ 61,976 $ 415,375 $ 329,724 $ 85,651 Marketing-related intangible assets 54,714 46,591 8,123 84,180 50,217 33,963 Technology-related intangible assets 76,790 33,976 42,814 149,262 61,150 88,112 Other intangible assets 1,204 1,077 127 — — — Intangible assets under development 64,047 — 64,047 26,646 3,511 23,135 $ 565,313 $ 388,226 $ 177,087 $ 675,463 $ 444,602 $ 230,861 |
Estimated Amortization Schedule of Intangible Assets for Future Periods | The estimated amortization schedule for the Company’s intangible assets for future periods is set out below: 2020 70,355 2021 52,597 2022 36,920 2023 29,817 2024 and beyond 18,037 $ 207,726 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: As of December 31, 2018 2019 Contract asset (Note 27) $ 22,563 $ 21,176 Advance income and non-income taxes 62,942 93,277 Deposits 25,984 36,342 Derivative instruments 9,571 3,086 Prepaid expenses 5,052 6,003 Accounts receivable due after one year 4,099 7,858 Others 24,948 15,853 Right of use (ROU) assets finance lease — 33,484 $ 155,159 $ 217,079 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Cost of Operating and Finance Leases | The components of lease cost for operating and finance leases for the year ended December 31, 2019 are summarized below: Year ended December 31, 2019 Finance lease cost: Amortization of ROU assets (Note a) 9,302 Interest on lease liabilities (Note b) 2,997 Operating lease cost (Note c) 74,436 Short-term lease cost (Note c) 438 Variable lease cost (Note c) 4,052 Total lease cost $ 91,225 a) Included in “depreciation and amortization” in the consolidated statements of income. b) Included in “interest income (expense), net” in the consolidated statements of income. c) Included in “cost of revenue” and “selling, general and administrative expenses” in the consolidated statements of income. |
Schedule of Other Information | Other information Weighted-average remaining lease term—finance leases 3.9 years Weighted-average remaining lease term—operating leases 6.77 years Weighted-average discount rate—finance leases 9.20 % Weighted-average discount rate—operating leases 6.87 % 12. Leases (Continued) Year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 2,859 Operating cash flows from operating leases $ 72,645 Financing cash flows from finance leases $ 7,380 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 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, 2018 2019 Accrued expenses $ 179,843 $ 178,845 Accrued employee cost 210,251 273,506 Earn-out consideration 16,875 6,384 Statutory liabilities 42,728 62,350 Retirement benefits 22,921 28,379 Derivative instruments 15,373 6,966 Contract liabilities (Note 27) 64,744 97,313 Finance lease liability — 9,740 Other liabilities 16,807 20,388 Capital lease obligations 1,808 — $ 571,350 $ 683,871 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Maturity Profile of Term Loan Outstanding Net of Debt Amortization Expense | 14. Long-term debt (Continued) The maturity profile of the term loan outstanding as of December 31, 2019, net of debt amortization expense, is as follows: Year ended Amount 2020 $ 33,509 2021 33,537 2022 33,564 2023 526,749 Total $ 627,359 |
Summary of Long Term Debt | 14. Long-term debt (Continued) A summary of the Company’s long-term debt is as follows: Year ended December 31, 2018 Year ended December 31, 2019 Credit facility, net of amortization expenses $ 660,841 $ 627,359 3.70% Senior Notes, net of debt 348,287 348,814 3.375% Senior Notes, net of debt amortization expenses — 397,132 1,009,128 1,373,305 Current portion 33,483 33,509 Non-current portion 975,645 1,339,796 Total $ 1,009,128 $ 1,373,305 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other liabilities | Other liabilities consist of the following: As of December 31, 2018 2019 Accrued employee cost $ 6,341 $ 8,729 Earn-out consideration 198 15,800 Retirement benefits 50,370 48,191 Derivative instruments 19,872 17,273 Contract liabilities (Note 27) 53,796 78,613 Finance lease liability — 20,725 Others 32,935 19,585 Capital lease obligations 1,714 — $ 165,226 $ 208,916 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Funded Status of Defined Benefit Plans and Amount Recognized | The following table sets forth the funded status of the Company’s defined benefit plans and the amounts recognized in the Company’s financial statements based on actuarial valuations carried out as of December 31, 2018 and 2019. As of December 31, 2018 2019 Change in benefit obligation Projected benefit obligation at the beginning of the year $ 58,094 $ 61,448 Service cost 7,833 8,915 Actuarial loss (gain) 470 12,323 Interest cost 3,822 4,667 Liabilities assumed on acquisition/ transfer of employees 503 96 Benefits paid (6,277 ) (7,043 ) Plan Amendments 995 (405 ) Effect of exchange rate changes (3,992 ) 560 Projected benefit obligation at the end of the year $ 61,448 $ 80,561 Change in fair value of plan assets Fair value of plan assets at the beginning of the year $ 45,560 $ 39,683 Employer contributions 1,573 35,459 Actual gain on plan assets 1,929 3,258 Actuarial gain/(loss) (9 ) 387 Benefits paid (6,228 ) (7,379 ) Effect of exchange rate changes (3,142 ) (508 ) Fair value of plan assets at the end of the year $ 39,683 $ 70,900 Funded, status, end of year $ (21,765 ) $ (9,661 ) Amounts recognized in the consolidated balance sheets Non-current assets (recorded under other assets-others) $ 1,622 $ 4,739 Current liabilities (recorded under accrued expenses and other current liabilities-retirement benefits) (1,111 ) (1,333 ) Non-current liabilities (recorded under other liabilities- retirement benefits) (22,276 ) (13,067 ) Funded status, end of year $ (21,765 ) $ (9,661 ) |
Amounts Included in Accumulated Other Comprehensive Income (Loss) | Amounts included in accumulated other comprehensive income (loss) as of December 31, 2017, 2018 and 2019 were as follows: As of December 31, 2017 2018 2019 Net actuarial loss $ (12,228) $ (11,037) (20,549 ) Net prior service credit/(cost) — (967) (717 ) Deferred tax assets 2221 3,451 2,067 Other comprehensive income, net $ (10,007) $ (8,553) (19,199 ) |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in other comprehensive income (loss) during the year ended December 31, 2018 and 2019 were as follows: Net actuarial loss $ (951) $ (11,283 ) Amortization of net actuarial loss 1,202 1,150 Deferred income taxes 1,407 2,720 Net prior service credit/(cost) (944) 436 Effect of exchange rate changes 740 435 Other comprehensive income (loss), net $ 1,454 $ (6,542 ) |
Accumulated Benefit Obligation for Defined Benefit Plans | Funded status for defined benefit plans The accumulated benefit obligation for defined benefit plans as of December 31, 2018 and 2019 was as follows: 2018 2019 Accumulated benefit obligation $ 43,703 $ 55,259 |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the years ended December 31, 2017, 2018 and 2019 include the following components: Year ended December 31, 2017 2018 2019 Service costs $ 7,735 $ 7,833 $ 8,915 Interest costs 3,252 3,822 4,667 Amortization of actuarial loss 1,177 806 1,384 Expected return on plan assets (2,412 ) (2,435 ) (2,605 ) One-time cost 209 — 202 Special termination benefits 426 — — Net defined benefit plan costs $ 10,387 $ 10,026 $ 12,563 |
Fair Values of Plan Assets | The fair values of the Company’s plan assets as of December 31, 2018 and 2019 by asset category are as follows: As of December 31, 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) Asset Category Equity $ 12 $ 12 $ — $ — Cash 11,001 11,001 — — Fixed income securities (Note a) 55,821 3,732 52,089 — Other securities (Note b) 4,066 2,630 1,436 — Total $ 70,900 $ 17,375 $ 53,525 $ — As of December 31, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs Total (Level 1) (Level 2) (Level 3) Asset Category Equity $ 7 $ 7 $ — $ — Cash 381 381 — — Fixed income securities (Note a) 36,499 3,345 33,154 — Other securities (Note b) 2,796 2,381 415 — Total $ 39,683 $ 6,114 $ 33,569 $ — (a) Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. (b) Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. |
Benefit Plan Payments Reflect Expected Future Service | 17. Employee benefit plans (Continued) The expected benefit plan payments set forth below reflect expected future service: Year ending December 31, 2020 $ 12,107 2021 11,946 2022 12,106 2023 13,475 2024 13,886 2025 – 2029 66,033 $ 129,553 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the years ended December 31, 2017, 2018 and 2019, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Year ended December 31, 2017 2018 2019 India $ 22,242 $ 23,877 $ 29,729 U.S. 11,147 13,454 19,401 U.K. 7,823 9,619 12,312 China 15,950 17,625 18,819 Other regions 4,059 4,604 5,804 Total $ 61,221 $ 69,179 $ 86,065 |
Benefit Obligations Of Gratuity Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Gratuity Plan as of December 31, 2018 and 2019 are presented below: As of December 31, 2018 2019 Discount rate 8.30%-8.40% 6.80%-7.35% Rate of increase in compensation per annum 5.20%-11.00% 5.20%-11.50% |
Gratuity Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the Gratuity Plan costs for the years ended December 31, 2017, 2018 and 2019 are presented below: Year ended December 31, 2017 2018 2019 Discount rate 7.10% - 7.5% 7.40% - 7.60% 8.30%-8.40% Rate of increase in compensation per annum 5.20% - 11.00% 5.20% - 11.00% 5.20%-11.00% Expected long term rate of return on plan assets per annum 7.50% 7.50% 7.50% |
Benefit Obligations Of Mexican Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Mexican Plan as of December 31, 2018 and 2019 are presented below: As of December 31, 2018 2019 Discount rate 9.25 % 7.60 % Rate of increase in compensation per annum 5.50 % 5.50 % |
Mexican Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the costs of the Mexican Plan for the years ended December 31, 2017, 2018 and 2019 are presented below: Year ended December 31, 2017 2018 2019 Discount rate 6.80 % 7.60 % 9.40 % Rate of increase in compensation per annum 5.50 % 5.50 % 5.50 % |
Benefit Obligations Of Philippines Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligations of the Philippines Plan as of December 31, 2018 and 2019 are presented below: As of December 31, 2018 2019 Discount rate 7.53 % 5.22 % Rate of increase in compensation per annum 6.00 % 6.00 % |
Philippines Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the costs of the Philippines Plan for the years ended December 31, 2017, 2018 and 2019 are presented below: Year ended December 31, 2017 2018 2019 Discount rate 5.54 % 5.97 % 7.53 % Rate of increase in compensation per annum 8.00 % 8.00 % 6.00 % Expected long-term rate of return on plan assets per annum 4.00 % 4.00 % 1.00 % |
Benefit Obligations Of Japan Plan | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the benefit obligation of the Japan Plan as of December 31, 2018 and 2019 are presented below: As of December 31, 2018 2019 Discount rate 0.076%-0.269% 0.094%-0.271% Rate of increase in compensation per annum 0.00% 0.00% |
Japan Plan Costs | |
Weighted Average Assumptions used to Determine Benefit Obligations and Plan Costs | The weighted average assumptions used to determine the costs of the Japan Plan for the years ended December 31, 2017, 2018 and 2019 are presented below: Year ended December 31, 2017 2018 2019 Discount rate 0.08% - 1.30% 0.113%-0.789% 0.076%-0.269% Rate of increase in compensation per annum 0.00% - 3.55% 0.00% - 3.55% 0.00% Expected long term rate of return on plan assets per annum 0.00% - 3.09% 0.00%-1.84% 0.00%-1.77% |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Significant Assumptions used in Determination of Fair Value of Options Granted | The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in 2017, 2018 and 2019: 2017 2018 2019 Dividend yield 0.97% 0.95% -1.01% 0.82%-1.08% Expected life (in months) 84 84 84 Risk-free rate of interest for expected life 2.25% 2.67% - 2.93 % 1.56 %- 2.63% Volatility 24.28% 22.55% -22.73% 21.0%- 21.38% |
Summary of Stock Option Activity | A summary of stock option activity during the years ended December 31, 2017, 2018 and 2019 is set out below: Year ended December 31, 2017 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2017 5,707,690 $ 18.65 5.8 $ — Granted 250,000 24.74 — — Forfeited (80,000 ) 20.63 — — Expired — — — — Exercised (743,045 ) 14.50 — 8,512 Outstanding as of December 31, 2017 5,134,645 $ 19.52 5.6 $ 62,743 Vested as of December 31, 2017 and expected to vest thereafter (Note a) 4,988,875 $ 19.36 5.6 $ 61,779 Vested and exercisable as of December 31, 2017 2,203,146 $ 16.17 4.1 $ 34,303 Weighted average grant-date fair value of options granted during the period $ 6.62 18. Stock-based compensation (Continued) Year ended December 31, 2018 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value Outstanding as of January 1, 2018 5,134,645 $ 19.52 5.6 $ — Granted 2,638,106 30.47 — — Forfeited (70,000 ) 27.65 — — Expired — — — — Exercised (441,076 ) 16.46 — 6,731 Outstanding as of December 31, 2018 7,261,675 $ 23.61 6.4 $ 34,143 Vested as of December 31, 2018 and expected to vest thereafter (Note a) 7,107,605 $ 23.50 6.4 $ 33,997 Vested and exercisable as of December 31, 2018 3,313,570 $ 17.69 3.7 $ 30,806 Weighted average grant-date fair value of options granted during the period $ 8.32 Year ended December 31, 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 (697,531 ) 15.33 — 18,724 Outstanding as of December 31, 2019 8,360,212 $ 25.33 6.5 $ 140,760 Vested as of December 31, 2019 and expected to vest thereafter (Note a) 8,006,985 $ 25.18 6.5 $ 136,017 Vested and exercisable as of December 31, 2019 3,111,039 $ 19.16 3.4 $ 71,584 Weighted average grant-date fair value of options granted during the period $ 6.98 (a) Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Units Activity | 18. Stock-based compensation (Continued) A summary of RSU activity during the years ended December 31, 2017, 2018 and 2019 is set out below: Year ended December 31, 2017 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2017 117,905 $ 20.65 Granted 1,533,836 26.36 Vested (Note b) (45,248 ) 18.31 Forfeited (1,242 ) 25.53 Outstanding as of December 31, 2017 1,605,251 $ 26.17 Expected to vest (Note a) 1,371,567 Year ended December 31, 2018 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2018 1,605,251 $ 26.17 Granted 484,427 30.13 Vested (Note c) (358,697 ) 25.53 Forfeited (201,982 ) 27.09 Outstanding as of December 31, 2018 1,528,999 $ 27.45 Expected to vest (Note a) 1,360,048 Year ended December 31, 2019 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2019 1,528,999 $ 27.45 Granted 470,939 37.58 Vested (Note d) (672,025 ) 26.84 Forfeited (66,207 ) 30.43 Outstanding as of December 31, 2019 1,261,706 $ 31.41 Expected to vest (Note a) 1,149,286 (a) RSUs expected to vest reflect an estimated forfeiture rate. (b ) Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). 18. Stock-based compensation (Continued) (c ) 261,260 RSUs that vested during the period were net settled upon vesting by issuing 175,505 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, 52,405 shares in respect of which were issued in 2019 after withholding shares to the extent of minimum statutory withholding taxes. 44,562 RSUs vested in the year ended December 31, 2018, shares in respect of which will be issued in 2020 after withholding shares to the extent of minimum statutory withholding taxes. (d) |
Summary of Performance Units Activity | A summary of PU activity during the years ended December 31, 2017, 2018 and 2019 is set out below: Year ended December 31, 2017 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2017 3,772,128 $ 23.04 5,524,114 Granted 1,811,292 25.22 3,622,584 Vested (Note b) (1,136,047) 16.78 (1,136,047) Forfeited (Note c) (1,583,913 ) 27.57 (1,627,313 ) Adjustment upon final determination of level of performance goal achievement (Note d) 37,480 25.22 Adjustment upon final determination of level of performance goal achievement (Note e) (3,482,398) Outstanding as of December 31, 2017 2,900,940 $ 24.40 2,900,940 Expected to vest (Note a) 2,657,685 18. Stock-based compensation (Continued) Year ended December 31, 2018 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2018 2,900,940 $ 24.40 2,900,940 Granted 1,682,740 30.62 3,365,480 Vested (Note f) (1,087,751 ) 22.73 (1,087,751 ) Forfeited (258,237 ) 26.03 (305,737 ) Adjustment upon final determination of level of performance goal achievement (Note g) 474,800 30.68 Adjustment upon final determination of level of performance goal achievement (Note h) (1,160,530 ) Outstanding as of December 31, 2018 3,712,402 $ 28.40 3,712,402 Expected to vest (Note a) 3,261,069 Year ended December 31, 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 1,579,109 34.68 3,158,218 Vested (Note i) (3,276) 27.47 (3,276) Forfeited (248,031 ) 29.04 (278,755 ) Adjustment upon final determination of level of performance goal achievement 1,018,260 34.72 Adjustment upon final determination of level of performance goal achievement (Note k) (530,125) Outstanding as of December 31, 2019 6,058,464 $ 31.07 6,058,464 Expected to vest (Note a) 5,507,640 (a) PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. (b ) Vested PUs were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). (c ) Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards. (d ) Represents a 2.7% increase in the number of target shares as a result of achievement of higher-than-target performance for certain PUs granted in 2017, partially offset by a 12.5% reduction as a result of achievement of lower-than-target performance for certain PUs granted in 2017. (e ) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2017 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards. (f ) Vested PUs were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). (g ) Represents a 28.77% increase in the number of target shares expected to vest as a result of achievement of higher-than-target performance for PUs granted in 2018 partially offset by an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. 18. Stock-based compensation (Continued) (h ) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2018 based on the level of achievement of the performance goals. Also includes an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. (i) Vested PUs were net settled upon vesting by issuing 2,151 shares (net of minimum statutory tax withholding). (j ) Represents a 66.67% increase in the number of target shares expected to vest as a result of achievement of higher-than-target performance for PUs granted in 2019 partially offset by 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 (k) Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2019 based on the level of achievement of the performance goals. Also includes 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. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Year ended December 31, 2017 2018 2019 Net income available to Genpact Limited common shareholders $ 263,111 $ 282,019 $ 304,881 Weighted average number of common shares used in computing basic earnings per common share 193,864,755 190,674,740 190,074,475 Dilutive effect of stock-based awards 3,184,797 3,305,298 5,086,380 Weighted average number of common shares used in computing dilutive earnings per common share 197,049,552 193,980,038 195,160,855 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 1.36 $ 1.48 $ 1.60 Diluted $ 1.34 $ 1.45 $ 1.56 |
Cost of revenue (Tables)
Cost of revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of Cost of Revenue | Cost of revenue consists of the following: Year ended December 31, 2017 2018 2019 Personnel expenses $ 1,153,479 $ 1,322,651 $ 1,687,896 Operational expenses 481,012 543,006 521,041 Depreciation and amortization 46,947 56,111 85,751 $ 1,681,438 $ 1,921,768 $ 2,294,688 |
Selling, general and administ_2
Selling, general and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selling General And Administrative Expenses [Abstract] | |
Schedule of Selling, General and Administrative Expenses | Selling, general and administrative expenses consist of the following: Year ended December 31, 2017 2018 2019 Personnel expenses $ 501,059 $ 518,897 $ 592,827 Operational expenses 178,573 166,437 192,107 Depreciation and amortization 9,829 8,531 9,967 $ 689,461 $ 693,865 $ 794,901 |
Other operating (income) expe_2
Other operating (income) expense, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Operating (Income) Expense, Net | Year ended December 31, 2017 2018 2019 Other operating (income) expense* $ (7,277 ) $ (455 ) $ (34,545 ) Provision for impairment of intangible assets and property, plant and equipment 9,311 4,265 3,511 Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) (3,695 ) (5,655 ) — Other operating (income) expense, net $ (1,661 ) $ (1,845 ) $ (31,034 ) *Includes a gain of $31,380 for the year ended December 31, 2019 on land rights transferred to a third-party real estate developer in exchange for an interest in commercial property being developed on the land. |
Interest income (expense), net
Interest income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift Interest [Abstract] | |
Schedule of Interest Income (Expense), Net | Interest income (expense), net consists of the following: Year ended December 31, 2017 2018 2019 Interest income $ 8,182 $ 11,388 $ 7,321 Interest expense (39,917 ) (48,507 ) (50,779 ) Interest income (expense), net $ (31,735 ) $ (37,119 ) $ (43,458 ) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | Income tax expense (benefit) for the years ended December 31, 2017, 2018 and 2019 is allocated as follows: Year ended December 31, 2017 2018 2019 Income from continuing operations $ 59,742 $ 80,763 $ 94,536 Other comprehensive income: Unrealized gains (losses) on cash flow hedges 457 (6,647 ) (4,058 ) Retirement benefits 670 (1,407 ) (2,720 ) Retained earnings: Reclassification from AOCI on early adoption of ASU 2018-02 — 2,265 — Deferred tax expense recognized on adoption of ASU 2014-09 — 5,303 — Accumulated Other Comprehensive Income: Reclassification to retained earnings on early adoption of ASU 2018-02 — (2,265 ) — |
Components of Income before Income Tax Expense from Continuing Operations | 25. Income taxes (Continued) The components of income before income tax expense from continuing operations are as follows: Year ended December 31, 2017 2018 2019 Domestic (U.S.) $ 8,440 $ 49,986 $ 27,783 Foreign (other than U.S.) 312,143 312,035 371,634 Income before income tax expense $ 320,583 $ 362,021 $ 399,417 |
Income Tax Expense (Benefit) Attributable to Income from Continuing Operations | Income tax expense (benefit) attributable to income from continuing operations consists of: Year ended December 31, 2017 2018 2019 Current tax expense : Domestic (U.S. federal) $ 3,380 $ 6,466 $ 2,854 Domestic (U.S. state) 1,268 3,508 3,908 Foreign (other than U.S.) 65,485 64,735 104,089 $ 70,133 $ 74,709 $ 110,851 Deferred tax expense (benefit) : Domestic (U.S. federal) $ 3,549 $ 6,577 $ 2,669 Domestic (U.S. state) (2,809 ) (1,176 ) (1,679 ) Foreign (other than U.S.) (11,131 ) 653 (17,305 ) $ (10,391 ) $ 6,054 $ (16,315 ) Total income tax expense (benefit) $ 59,742 $ 80,763 $ 94,536 |
Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes | Income tax expense (benefit) attributable to income from continuing operations differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% Year ended December 31, 2017 2018 2019 Income before income tax expense $ 320,583 $ 362,021 $ 399,417 Statutory tax rates 35 % 21 % 21 % Computed expected income tax expense 112,204 76,024 83,878 Increase (decrease) in income taxes resulting from: Foreign tax rate differential (25,224 ) 23,373 34,566 Tax benefit from tax holiday (35,814 ) (23,003 ) (21,393 ) Non-deductible expenses 3,985 3,245 2,152 Effect of change in tax rates 2,778 (147 ) 6,497 Change in valuation allowance 9,041 27,826 10,515 Unrecognized tax benefits 1,611 3,008 5,502 Employment related tax incentive (1,918 ) (3,243 ) (5,239 ) Other* (6,921 ) (26,320 ) (21,942 ) Reported income tax expense (benefit) $ 59,742 $ 80,763 $ 94,536 *Following the transfer/closure of certain affiliated entities, deferred tax liabilities recorded against the outside basis difference were reversed amounting to $9,600, $18,510, $3,782 during the year ended December 31, 2017, 2018 and 2019. |
Components of Deferred Tax Balances | The components of the Company’s deferred tax balances as of December 31, 2018 and 2019 are as follows: As of December 31, 2018 2019 Deferred tax assets Net operating loss carryforwards $ 64,013 $ 66,448 Accrued expenses and other liabilities 36,812 50,678 Provision for doubtful debts 9,650 10,583 Property, plant and equipment and lease assets 7,904 11,569 Share-based compensation 18,236 30,192 Retirement benefits 7,559 11,332 Contract liabilities 3,150 4,437 Tax credit carryforwards 22,409 10,739 Other 9,557 12,934 Gross deferred tax assets $ 179,290 $ 208,912 Less: Valuation allowance (51,986 ) (62,628 ) Total deferred tax assets $ 127,304 $ 146,284 Deferred tax liabilities Intangible assets, net $ 17,975 $ 24,819 Property, plant and equipment, net 5,493 6,067 Deferred cost 2,725 2,665 Investments in foreign subsidiaries not indefinitely reinvested 4,835 1,401 Derivative instruments 8,990 2,722 Goodwill 12,957 11,793 Other 7,843 11,092 Total deferred tax liabilities $ 60,818 $ 60,559 Net deferred tax asset $ 66,486 $ 85,725 As of December 31, Classified as 2018 2019 Deferred tax assets Non-current $ 74,566 $ 89,715 Deferred tax liabilities Non-current 8,080 3,990 $ 66,486 $ 85,725 |
Change in Total Valuation Allowance for Deferred Tax Assets | The change in the Company’s total valuation allowance for deferred tax assets as of December 31, 2017, 2018 and 2019 is as follows: Year ended December 31, 2017 2018 2019 Opening valuation allowance $ 14,746 $ 24,549 $ 51,986 Reduction during the year (3,957 ) (2,307 ) (4,240 ) Addition during the year 13,760 29,744 14,882 Closing valuation allowance $ 24,549 $ 51,986 $ 62,628 |
Remaining Tax Loss Carry Forwards Expiration | The Company’s remaining tax loss carry-forwards expire as set forth in the table below: US - Federal Europe Others Year ending December 31, 2020 $ — $ — $ 1,645 2021 — 948 676 2022 — 1,635 3,807 2023 — 3,803 831 2024 — 405 5,584 2025 — — 2,897 2026 — — 652 2027 — — 4,436 2028 — 2 2,874 2029 — — 196 2034 — 18,820 — 2035 — 11,954 — 2036 — 32,425 — 2037 7791 — — 2038 — — 45 2039 — — 170 $ 7,791 $ 69,992 $ 23,813 |
Foreign Tax Credit Expiry Period | As of December 31, 2019, the Company had a total foreign tax credit carry-forward of $10,739 for subsidiaries in the United States, India and the Philippines, which will expire as set forth in the table below: Year ending December 31, Amount 2021 125 2027 2,431 2028 3,862 2029 3,745 2035 576 $ 10,739 |
Activities Related to Unrecognized Tax Benefits | 25. Income taxes (Continued) The following table summarizes activities related to our unrecognized tax benefits from January 1 to December 31 for each of 2018 and 2019: 2018 2019 Opening balance at January 1 $ 26,060 $ 26,722 Increase related to prior year tax positions, including recorded in acquisition accounting 1,851 1,684 Decrease related to prior year tax positions (153 ) (1,232 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (1,841 ) (135 ) Increase related to current year tax positions, including recorded in acquisition accounting 2,408 4,270 Effect of exchange rate changes (1,603 ) (280 ) Closing balance at December 31 $ 26,722 $ 31,029 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Adjusted Income from Operations by Reporting Segments | Revenues and adjusted income from operations for each of the Company’s segments for the year ended December 31, 2019 were as follows: Reportable segments BCMI CGRLH HMS Others* Total Revenues, net 1,078,844 1,107,534 1,348,635 (14,470 ) 3,520,543 Adjusted income from operations 115,998 161,515 238,129 43,199 # 558,841 Stock-based compensation (83,885 ) Amortization of acquired intangible assets (other than included above) (31,458 ) Acquisition-related expenses (8,352 ) Foreign exchange gains (losses), net 7,729 Interest income (expense), net (43,458 ) Income tax expense (94,536 ) Net income attributable to Genpact Limited shareholders 304,881 Revenues and adjusted income from operations for each of the Company’s segments for the year ended December 31, 2018 were as follows: Reportable segments BCMI CGRLH HMS Others** Total Revenues, net 1,079,673 903,225 1,005,070 12,822 3,000,790 Adjusted income from 0perations 148,712 116,705 177,209 30,688 473,314 Stock-based compensation (48,998 ) Amortization of acquired intangible assets (other than included above) (37,292 ) Acquisition-related expenses (2,362 ) Foreign exchange gains (losses), net 15,239 Interest income (expense), net (37,119 ) Income tax expense (80,763 ) Net income attributable to Genpact Limited shareholders 282,019 Revenues and adjusted income from operations for the Company’s segments for the year ended December 31, 2017 were as follows: Reportable segments BCMI CGRLH HMS Others*** Total Revenues, net 1,054,660 852,170 827,528 2,571 2,736,929 Adjusted income from operations 150,545 84,908 126,238 67,939 429,630 Stock-based compensation (35,685 ) Amortization of acquired intangible assets (other than included above) (35,467 ) Acquisition-related expenses (5,886 ) Foreign exchange gains (losses), net 1,996 Interest income (expense), net (31,735 ) Income tax expense (59,742 ) Net income attributable to Genpact Limited Shareholders 263,111 |
Net Revenues for Service Type | Net revenues by service type are as follows: Year ended December 31, 2017 2018 2019 Business process outsourcing $ 2,264,335 $ 2,502,806 $ 2,974,212 Information technology services 472,594 497,984 546,331 Total net revenues $ 2,736,929 $ 3,000,790 $ 3,520,543 These services are provided in each of the Company’s three segments. |
Net Revenues from Geographic Areas Based on Location of Service Delivery Centers | Net revenues from geographic areas based on the location of the Company’s service delivery centers are as follows. A portion of net revenues attributable to India consists of net revenues for services performed by delivery centers in India or at clients’ premises outside of India by business units or personnel normally based in India. Year ended December 31, 2017 2018 2019 India $ 1,712,783 $ 1,739,455 $ 1,890,897 Asia, other than India 286,338 327,462 356,726 North and Latin America 455,059 641,716 863,748 Europe 282,749 292,157 409,172 Total net revenues $ 2,736,929 $ 3,000,790 $ 3,520,543 |
Property, Plant and Equipment, Net by Geographic Areas | Property, plant and equipment, net by geographic region are as follows: As of December 31, 2018 2019 India $ 130,824 $ 161,227 Asia, other than India 14,866 17,212 North and Latin America 46,763 58,499 Europe 20,262 17,097 Total $ 212,715 $ 254,035 |
Net Revenues (Tables)
Net Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Net Revenues Disaggregated by Customer | In the following tables, the Company’s revenue is disaggregated by customer classification. Year ended December 31, 2017 2018 2019 GE $ 269,217 $ 268,210 $ 478,091 Global Clients 2,467,712 2,732,580 3,042,452 Total net revenues $ 2,736,929 $ 3,000,790 $ 3,520,543 |
Details of Company's Contract Liabilities | The following table provides details of the Company’s contract liabilities: As of December 31, 2018 As of December 31, 2019 Particulars Advance from customers Deferred transition revenue Advance from customers Deferred transition revenue Opening balance $ 26,266 $ 101,785 $ 22,892 $ 95,648 Impact of opening balance offset with contract asset — 21,348 3,821 25,604 Gross opening balance $ 26,266 $ 123,133 $ 26,713 $ 121,252 Additions 33,328 67,838 48,285 101,976 Effect of business combinations 273 75 5,950 — Revenue recognized (32,091 ) (68,697 ) (23,614 ) (48,671 ) Currency translation adjustments (1,063 ) (1,097 ) (1 ) (160 ) Gross closing balance $ 26,713 $ 121,252 $ 57,333 $ 174,397 Impact of closing balance offset with contract asset (3,821 ) (25,604 ) (12,515 ) (43,289 ) Closing balance (Note a) $ 22,892 $ 95,648 $ 44,818 $ 131,108 (a) Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet. |
Estimated Revenue Expected to Recognized in Future Related to Remaining Performance Obligation | The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of December 31, 2019: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 175,926 97,313 58,820 17,586 2,207 |
Details of Company's Contract Assets | The following table provides details of the Company’s contract assets: Particulars As of December 31,2018 As of December 31,2019 Opening balance $ 43,366 $ 45,035 Impact of opening balance offset with contract liabilities 21,348 29,425 Gross opening balance $ 64,714 $ 74,460 Additions 48,216 66,396 Reduction in revenue recognized (38,470 ) (44,706 ) Gross closing balance $ 74,460 $ 96,150 Impact of closing balance offset with contract liabilities (29,425 ) (55,804 ) Closing balance (Note b) $ 45,035 $ 40,346 (b) Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. |
Summary of Contract Cost Assets | 27. Net Revenues (Continued) The following table provides details of the company’s contract cost assets: As of December 31, 2018 As of December 31, 2019 Particulars Sales incentive programs Transition activities Sales incentive programs Transition activities Opening balance $ 23,227 $ 139,284 $ 25,891 $ 134,302 Closing balance 25,891 134,302 35,366 170,132 Amortization 14,788 70,775 17,684 70,001 |
Other Income (expense), net (Ta
Other Income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Nonoperating Income Expense [Abstract] | |
Schedule of Other Income (Expense), Net | Year ended December 31, 2017 2018 2019 Government incentives $ 26,882 $ 36,099 $ 3,976 Other income/(expense) (3,296 ) (338 ) 1,810 Other Income (expense), net $ 23,586 $ 35,761 $ 5,786 |
Quarterly financial data (una_2
Quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | Three months ended Year ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 December 31, 2019 Total net revenues $ 809,206 $ 881,799 $ 888,799 $ 940,739 $ 3,520,543 Gross profit $ 290,069 $ 310,555 $ 315,140 $ 310,091 $ 1,225,855 Income from operations $ 90,072 $ 106,202 $ 113,584 $ 119,518 $ 429,376 Income before equity-method investment activity, net and income tax expense $ 79,320 $ 94,970 $ 110,794 $ 114,349 $ 399,433 Net Income $ 60,841 $ 73,722 $ 88,120 $ 82,198 $ 304,881 Net income attributable to Genpact Limited common shareholders $ 60,841 $ 73,722 $ 88,120 $ 82,198 $ 304,881 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.32 $ 0.39 $ 0.46 $ 0.43 $ 1.60 Diluted $ 0.31 $ 0.38 $ 0.45 $ 0.42 $ 1.56 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 189,451,845 190,163,359 190,599,049 190,083,647 190,074,475 Diluted 193,394,208 194,766,047 195,890,841 196,592,325 195,160,855 31. Quarterly financial data (unaudited) (Continued) Three months ended Year ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 December 31, 2018 Total net revenues $ 688,912 $ 728,561 $ 747,978 $ 835,339 $ 3,000,790 Gross profit $ 244,588 $ 265,663 $ 266,566 $ 302,205 $ 1,079,022 Income from operations $ 63,761 $ 79,522 $ 94,028 $ 110,841 $ 348,152 Income before Equity method investment activity, net and income tax expense $ 76,009 $ 81,668 $ 97,724 $ 106,632 $ 362,033 Net Income $ 63,934 $ 64,574 $ 73,603 $ 79,147 $ 281,258 Net (income) loss attributable to redeemable non-controlling interest $ 761 $ - $ - $ - $ 761 Net income attributable to Genpact Limited common shareholders $ 64,695 $ 64,574 $ 73,603 $ 79,147 $ 282,019 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.34 $ 0.34 $ 0.39 $ 0.42 $ 1.48 Diluted $ 0.33 $ 0.33 $ 0.38 $ 0.41 $ 1.45 Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders Basic 192,816,626 190,132,664 190,024,924 189,724,744 190,674,740 Diluted 196,288,569 193,365,974 193,115,769 193,149,836 193,980,038 |
Guarantor financial informati_2
Guarantor financial information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Guarantor Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of December 31, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents 7,435 $ 2,029 $ 457,632 $ — $ 467,096 Intercompany Accounts receivable, net 84,803 — — (84,803 ) — Accounts receivable, net - — 914,255 — 914,255 Intercompany loans 1,003,032 12,400 1,976,064 (2,991,496 ) — Intercompany other receivable 61,456 124,043 158,234 (343,734 ) — Prepaid expenses and other current assets 3,383 977 165,965 - 170,325 Total current assets $ 1,160,109 $ 139,449 $ 3,672,150 $ (3,420,033 ) $ 1,551,676 Property, plant and equipment, Net 374 — 253,661 — 254,035 Operating lease right-of-use assets — — 330,854 — 330,854 Intercompany loans 100,000 — 500,000 (600,000 ) — Deferred tax assets — — 89,715 — 89,715 Investment in subsidiaries 583,600 3,362,390 644,554 (4,590,544 ) — Investment in debentures/bonds, intercompany 476,571 118,393 — (594,964 ) — Intercompany other receivable — 89,460 — (89,460 ) — Intangible assets, net — — 230,861 — 230,861 Goodwill — — 1,574,466 — 1,574,466 Contract cost assets — — 205,498 — 205,498 Other assets 311 85 216,683 — 217,079 Total assets $ 2,320,965 $ 3,709,777 $ 7,718,442 $ (9,295,000 ) $ 4,454,184 Liabilities and equity Current liabilities Short-term borrowings $ — $ — $ 70,000 $ — $ 70,000 Current portion of Intercompany loans 232,027 1,971,037 788,432 (2,991,496 ) — Current portion of long-term debt 4,963 — 28,546 — 33,509 Accounts payable 1,176 122 20,683 — 21,981 Intercompany accounts payable — — 84,803 (84,803 ) — Income taxes payable — — 43,186 — 43,186 Intercompany other payable 56,936 110,974 175,824 (343,734 ) — Accrued expenses and other current liabilities 8,062 3,886 671,923 — 683,871 Operating leases liability — — 57,664 — 57,664 Total current liabilities $ 303,164 $ 2,086,019 $ 1,941,061 $ (3,420,033 ) $ 910,211 Long-term debt, less current portion 833,358 — 506,438 — 1,339,796 Operating leases liability — — 302,100 — 302,100 Deferred tax liabilities — — 3,990 — 3,990 Intercompany other payable — — 89,460 (89,460 ) — Intercompany loans and debenture, less current portion 500,000 — 694,964 (1,194,964 ) — Other liabilities — 217 208,699 — 208,916 Total liabilities $ 1,636,522 $ 2,086,236 $ 3,746,711 $ (4,704,456 ) $ 2,765,013 Shareholders' equity 684,443 1,623,541 3,971,731 (4,590,544 ) 1,689,171 Total liabilities and equity $ 2,320,965 $ 3,709,777 $ 7,718,442 $ (9,295,000 ) $ 4,454,184 33. Guarantor financial information (Continued) Condensed Consolidating Balance Sheet As of December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets Cash and cash equivalents $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 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 Investment in debentures/bonds, intercompany 571,919 50,393 — (622,312 ) — Intercompany other receivable — 83,169 — (83,169 ) — Intangible assets, net — — 177,087 — 177,087 Goodwill — — 1,393,832 — 1,393,832 Contract cost assets — — 160,193 — 160,193 Other assets 682 — 154,477 — 155,159 Total assets $ 1,807,442 $ 3,264,895 $ 6,519,787 $ (8,062,679 ) $ 3,529,445 Liabilities and equity Current liabilities Short-term borrowings $ 100,000 $ — $ 195,000 $ — $ 295,000 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 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) | 33. Guarantor financial information (Continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 59,657 $ — $ 3,520,543 $ (59,657 ) $ 3,520,543 Cost of revenue — — 2,294,688 — 2,294,688 Gross profit $ 59,657 $ — $ 1,225,855 $ (59,657 ) $ 1,225,855 Operating expenses: Selling, general and administrative expenses 10,753 31,475 812,330 (59,657 ) 794,901 Amortization of acquired intangible assets — — 32,612 — 32,612 Other operating (income) expense, net — — (31,034 ) — (31,034 ) Income (loss) from operations $ 48,904 $ (31,475 ) $ 411,947 — $ 429,376 Foreign exchange gains (losses), net 613 119 6,997 — 7,729 Interest income (expense), net (22,356 ) — (21,102 ) — (43,458 ) Intercompany interest income (expense), net 76,905 (22,206 ) (54,699 ) — — Other income (expense), net 30 — 5,756 — 5,786 Income (loss) before equity-method investment activity, net and income tax expense $ 104,096 $ (53,562 ) $ 348,899 — $ 399,433 Gain (loss) on equity-method investment activity, net 21,599 358,443 97,580 (477,638 ) (16 ) Income before income tax expense $ 125,695 $ 304,881 $ 446,479 $ (477,638 ) $ 399,417 Income tax expense 6,516 — 88,020 — 94,536 Net income $ 119,179 $ 304,881 $ 358,459 $ (477,638 ) $ 304,881 Net loss attributable to redeemable non-controlling interest — — — — — Net income attributable to Genpact Limited shareholders $ 119,179 $ 304,881 $ 358,459 $ (477,638 ) $ 304,881 Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 50,356 $ — $ 3,000,790 $ (50,356 ) $ 3,000,790 Cost of revenue — 5,188 1,916,580 — 1,921,768 Gross profit $ 50,356 $ (5,188 ) $ 1,084,210 $ (50,356 ) $ 1,079,022 Operating expenses: Selling, general and administrative expenses 11,324 23,703 709,260 (50,422 ) 693,865 Amortization of acquired intangible assets 48 — 38,802 — 38,850 Other operating (income) expense, net (17,599 ) — 15,754 — (1,845 ) Income (loss) from operations $ 56,583 $ (28,891 ) $ 320,394 $ 66 $ 348,152 Foreign exchange gains (losses), net 449 845 13,945 — 15,239 Interest income (expense), net (16,504 ) — (20,615 ) — (37,119 ) Intercompany interest income (expense), net 77,857 (19,279 ) (58,578 ) — — Other income (expense), net — — 35,761 — 35,761 Income (loss) before equity-method investment activity, net and income tax expense $ 118,385 $ (47,325 ) $ 290,907 $ 66 $ 362,033 Gain (loss) on equity-method investment activity, net 62,501 346,960 123,291 (532,764 ) (12 ) Income before income tax expense $ 180,886 $ 299,635 $ 414,198 $ (532,698 ) $ 362,021 Income tax expense 6,124 — 74,639 — 80,763 Net income $ 174,762 $ 299,635 $ 339,559 $ (532,698 ) $ 281,258 Net loss attributable to redeemable non-controlling interest — 761 — 761 Net income attributable to Genpact Limited shareholders $ 174,762 $ 299,635 $ 340,320 $ (532,698 ) $ 282,019 33. Guarantor financial information (Continued) Condensed Consolidating Statement of Income (Loss) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated Net revenues $ 46,722 $ — $ 2,736,929 $ (46,722 ) $ 2,736,929 Cost of revenue — — 1,681,438 — 1,681,438 Gross profit $ 46,722 $ — $ 1,055,491 $ (46,722 ) $ 1,055,491 Operating expenses: Selling, general and administrative expenses 9,859 21,076 728,145 (69,619 ) 689,461 Amortization of acquired intangible assets — — 36,412 — 36,412 Other operating (income) expense, net (3,412 ) — 1,751 — (1,661 ) Income (loss) from operations $ 40,275 $ (21,076 ) $ 289,183 $ 22,897 $ 331,279 Foreign exchange gains (losses), net 3,312 2 (1,318 ) — 1,996 Interest income (expense), net (11,375 ) — (20,360 ) — (31,735 ) Intercompany interest income (expense), net 47,547 (10,148 ) (37,399 ) — — Other income (expense), net 18,391 — 5,195 — 23,586 Income (loss) before equity-method investment activity, net and income tax expense $ 98,150 $ (31,222 ) $ 235,301 $ 22,897 $ 325,126 Gain (loss) on equity-method investment activity, net (15,058 ) 294,333 75,657 (359,475 ) (4,543 ) Income before income tax expense $ 83,092 $ 263,111 $ 310,958 $ (336,578 ) $ 320,583 Income tax expense 7,435 — 52,307 — 59,742 Net income $ 75,657 $ 263,111 $ 258,651 $ (336,578 ) $ 260,841 Net loss attributable to redeemable non-controlling interest — — 2,270 — 2,270 Net income attributable to Genpact Limited shareholders $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 |
Condensed Consolidating Statement of Comprehensive Income (Loss) | 33. Guarantor financial information (Continued) Condensed Consolidating Statement of Comprehensive Income (Loss) Year ended December 31, 2019 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Net income (loss) $ 119,179 $ 304,881 $ 358,459 $ (477,638 ) $ 304,881 Other comprehensive income: Currency translation adjustments (10,079 ) (20,297 ) (20,297 ) 30,376 (20,297 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 1,484 2,343 2,343 (3,827 ) 2,343 Retirement benefits, net of taxes (449 ) (6,542 ) (6,542 ) 6,991 (6,542 ) Other comprehensive income (loss) (9,044 ) (24,496 ) (24,496 ) 33,540 (24,496 ) Comprehensive income (loss) $ 110,135 $ 280,385 $ 333,963 $ (444,098 ) $ 280,385 Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 174,762 $ 299,635 $ 340,320 $ (532,698 ) $ 282,019 $ (761 ) Other comprehensive income: Currency translation adjustments (72,071 ) (109,656 ) (109,656 ) 181,727 (109,656 ) (424 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 498 (46,293 ) (46,293 ) 45,795 (46,293 ) — Retirement benefits, net of taxes (190 ) 1,454 1,454 (1,264 ) 1,454 — Other comprehensive income (loss) (71,763 ) (154,495 ) (154,495 ) 226,258 (154,495 ) (424 ) Comprehensive income (loss) $ 102,999 $ 145,140 $ 185,825 $ (306,440 ) $ 127,524 $ (1,185 ) Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non-Guarantor Subsidiaries Eliminations Genpact Limited Shareholders Redeemable Non-controlling interest Net income (loss) $ 75,657 $ 263,111 $ 260,921 $ (336,578 ) $ 263,111 $ (2,270 ) Other comprehensive income: Currency translation adjustments 74,716 93,871 93,871 (168,587 ) 93,871 (341 ) Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7) 9,788 12,611 12,611 (22,399 ) 12,611 — Retirement benefits, net of taxes 475 (3,787 ) (3,787 ) 3,312 (3,787 ) — Other comprehensive income (loss) 84,979 102,695 102,695 (187,674 ) 102,695 (341 ) Comprehensive income (loss) $ 160,636 $ 365,806 $ 363,616 $ (524,252 ) $ 365,806 $ (2,611 ) |
Condensed Consolidating Cash Flow | 33. Guarantor financial information (Continued) Condensed Consolidating Cash Flow Year ended December 31, 2019 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (476,680 ) $ 24,890 $ 217,668 $ 662,010 $ 427,888 Investing activities Purchase of property, plant and equipment — — (74,927 ) — (74,927 ) Payment for internally generated intangible assets (including intangibles under development) — — (33,834 ) — (33,834 ) Proceeds from sale of property, plant and equipment — — 1,750 — 1,750 Proceeds from sale of equity affiliates — — 2,168 — 2,168 Investment in subsidiaries (10,050 ) — — 10,050 — Payment for Purchase of bonds, intercompany — (103,100 ) — 103,100 — Proceeds from redemption of debentures/bonds, intercompany 86,818 35,100 — (121,918 ) — Payment for business acquisitions, net of cash acquired — — (252,276 ) — (252,276 ) Net cash (used for) provided by investing activities $ 76,768 $ (68,000 ) (357,119 ) $ (8,768 ) $ (357,119 ) Financing activities Repayment of capital lease obligations — — (7,380 ) — (7,380 ) Payment of debt issuance costs (2,317 ) — — — (2,317 ) Proceeds from long-term debt 400,000 — — — 400,000 Repayment of long-term debt (5,000 ) — (29,000 ) — (34,000 ) Proceeds from short-term borrowings — — 400,000 — 400,000 Repayment of Short-term borrowings (100,000 ) — (525,000 ) — (625,000 ) Proceeds from intercompany loans 108,455 128,500 517,367 (754,322 ) — Repayment of intercompany loans (5,000 ) (7,000 ) (35,312 ) 47,312 — Proceeds from issuance of common shares under stock-based compensation plans — 19,670 — — 19,670 Proceeds from issuance of common shares, intercompany — — 10,050 (10,050 ) — Payment for net settlement of stock-based awards — (3,850 ) — — (3,850 ) Payment of earn-out/deferred consideration — — (12,790 ) — (12,790 ) Dividend paid — (64,671 ) (45,000 ) 45,000 (64,671 ) Payment for stock repurchased and retired — (30,000 ) — — (30,000 ) Payment for expenses related to stock repurchase — (15 ) — — (15 ) Proceeds from issuance of bonds, intercompany — — 103,100 (103,100 ) — Repayment of debentures/bonds, intercompany — — (121,918 ) 121,918 — Net cash (used for) provided by financing activities $ 396,138 $ 42,634 $ 254,117 $ (653,242 ) $ 39,647 Effect of exchange rate changes (1,588 ) — (10,128 ) — (11,716 ) Net increase (decrease) in cash and cash equivalents (3,774 ) (476 ) 114,666 — 110,416 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 $ 7,435 $ 2,029 $ 457,632 $ — $ 467,096 33. Guarantor financial information (Continued) Condensed Consolidating Cash Flow Year ended December 31, 2018 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (266,889 ) $ 11,905 $ 25,399 $ 569,096 $ 339,511 Investing activities Purchase of property, plant and equipment — — (84,978 ) — (84,978 ) Payment for internally generated intangible assets (including intangibles under development) — — (75,439 ) — (75,439 ) Proceeds from sale of property, plant and equipment — — 668 — 668 Investment in equity affiliates — — — — — Investment in subsidiaries (97,730 ) — — 97,730 — Dividend received — — — — — Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany 91,760 (50,393 ) — (41,367 ) — Payment for business acquisitions, net of cash acquired — — (111,571 ) — (111,571 ) Payment for purchase of redeemable non-controlling interest — — (4,730 ) — (4,730 ) Net cash (used for) provided by investing activities $ (5,970 ) $ (50,393 ) (276,050 ) $ 56,363 $ (276,050 ) Financing activities Repayment of capital lease obligations — — (2,395 ) — (2,395 ) Payment of debt issuance costs — — (4,293 ) — (4,293 ) Proceeds from long-term debt 100,000 — 29,186 — 129,186 Repayment of long-term debt (2,450 ) — (163,736 ) — (166,186 ) Proceeds from short-term borrowings 100,000 — 150,000 — 250,000 Repayment of Short-term borrowings — — (125,000 ) — (125,000 ) Proceeds from intercompany loans 172,047 308,500 334,320 (814,867 ) — Repayment of intercompany loans (81,479 ) (56,500 ) (107,792 ) 245,771 — Proceeds from issuance of common shares under stock-based compensation plans — 14,034 — — 14,034 Proceeds from issuance of common shares, intercompany 113,954 (113,954 ) Payment for net settlement of stock-based awards — (15,919 ) — — (15,919 ) Payment of earn-out/deferred consideration (1,797 ) — (1,559 ) — (3,356 ) Dividend paid — (57,102 ) (16,224 ) 16,224 (57,102 ) Payment for stock repurchased and retired — (154,058 ) — — (154,058 ) Payment for expenses related to stock repurchase — (98 ) — — (98 ) Payment for redemption of debentures/(proceeds) from issuance of bonds, intercompany — — (41,367 ) 41,367 — Net cash (used for) provided by financing activities $ 286,321 $ 38,857 $ 165,094 $ (625,459 ) $ (135,187 ) Effect of exchange rate changes (5,172 ) — (59,174 ) — (64,346 ) Net increase (decrease) in cash and cash equivalents 13,462 369 (85,557 ) — (71,726 ) Cash and cash equivalents at the beginning of the period 4,507 2,136 497,825 — 504,468 Cash and cash equivalents at the end of the period $ 12,797 $ 2,505 $ 353,094 $ — $ 368,396 33. Guarantor financial information (Continued) Condensed Consolidating Cash Flow Year ended December 31, 2017 Issuer/ Subsidiary Parent/ Guarantor Non- Guarantor Subsidiaries Eliminations Consolidated Operating activities Net cash (used for) provided by operating activities $ (315,877 ) $ (8,345 ) $ 511,847 $ 171,453 $ 359,078 Investing activities Purchase of property, plant and equipment — — (57,231 ) — (57,231 ) Payment for internally generated intangible assets (including intangibles under development) — — (16,441 ) — (16,441 ) Proceeds from sale of property, plant and equipment — — 1,738 — 1,738 Investment in equity affiliates (523 ) — 27 — (496 ) Investment in subsidiaries (3,638 ) — 51,127 (47,489 ) — Payment for business acquisitions, net of cash acquired — — (284,822 ) — (284,822 ) Proceeds from divestiture of business, net of cash divested — — (4,738 ) — (4,738 ) Net cash (used for) provided by investing activities $ (4,161 ) $ — $ (310,340 ) $ (47,489 ) $ (361,990 ) Financing activities Repayment of capital lease obligations — — (2,708 ) — (2,708 ) Payment of debt issuance costs (2,630 ) — — — (2,630 ) Proceeds from long-term debt 350,000 — — — 350,000 Repayment of long-term debt — — (40,000 ) — (40,000 ) Proceeds from short-term borrowings — — 295,000 — 295,000 Repayment of short-term borrowings — — (285,000 ) — (285,000 ) Proceeds from intercompany loans — 263,886 — (263,886 ) — Repayment of intercompany loans (35,000 ) — (80,328 ) 115,328 — Proceeds from issuance of common shares under stock-based compensation plans — 15,528 — — 15,528 Payment for net settlement of stock-based awards — (10,296 ) — — (10,296 ) Payment of earn-out/deferred consideration — — (6,219 ) — (6,219 ) Dividend paid — (46,686 ) — — (46,686 ) Payment for stock repurchased and retired — (219,784 ) — — (219,784 ) Payment for expenses related to stock repurchase — (16 ) — — (16 ) Change in amounts due from/ due to consolidated affiliates — — (24,594 ) 24,594 — Excess tax benefit on stock-based compensation — — — — — Net cash (used for) provided by financing activities $ 312,370 $ 2,632 $ (143,849 ) $ (123,964 ) $ 47,189 Effect of exchange rate changes 960 — 36,608 — 37,568 Net increase (decrease) in cash and cash equivalents (7,668 ) (5,714 ) 57,658 — 44,277 Cash and cash equivalents at the beginning of the period 11,215 7,849 403,559 — 422,623 Cash and cash equivalents at the end of the period $ 4,507 $ 2,136 $ 497,825 $ — $ 504,468 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019EmployeeCountrySegment | Dec. 31, 2018Segment | |
Accounting Policies [Abstract] | ||
Number of employees around the globe, minimum | Employee | 96,500 | |
Number of countries in which entity operates | Country | 30 | |
Number of reportable segments | Segment | 3 | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Estimated Useful Lives of Intangible Assets Acquired (Detail) | 12 Months Ended |
Dec. 31, 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 ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Schedule Of Significant Accounting Policies [Line Items] | ||||
Gains (losses) on restructuring of debt | $ 0 | |||
Minimum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Additional terms of renewal option | 1 year | |||
Additional terms of termination option | 1 year | |||
Short term investment, maturity period | 3 months | |||
Maximum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Additional terms of renewal option | 5 years | |||
Additional terms of termination option | 5 years | |||
Short term investment, maturity period | 1 year | |||
Topic 842 | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Additional lease liabilities | $ 328,978,000 | |||
Additional right of use assets | $ 309,687,000 | |||
General Electric Company | Credit Concentration Risk | Receivables | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 17.00% | 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% | 10.00% |
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 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Schedule Of Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other current assets | $ 170,325 | $ 212,477 | ||
Operating lease ROU assets | 330,854 | |||
Other assets: Finance lease ROU assets | 33,484 | |||
Other assets | 217,079 | 155,159 | ||
Property, plant and equipment, net | 254,035 | 212,715 | ||
Accrued expenses and other current liabilities | 683,871 | 571,350 | ||
Operating leases liability (current) | 57,664 | |||
Operating leases liability (non-current) | 302,100 | |||
Other liabilities | $ 208,916 | $ 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 the 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 | Dec. 31, 2019 | Jan. 01, 2019 |
Revenue Recognition [Line Items] | ||
Operating lease ROU assets | $ 330,854 | |
Finance lease ROU assets | 33,484 | |
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 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Estimated Economic Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 40 years |
Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer Equipment and Servers | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Plant, Machinery and Equipment | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer software | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Computer software | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 7 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Property, plant and equipment, estimated useful lives description | Lease periodor 10 Years, whichever is less |
Vehicles | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Vehicles | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 4 years |
Business Acquisitions - Right P
Business Acquisitions - Right Point Consulting LLC - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 12, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Payment for business acquisitions, net of cash acquired | $ 252,276 | $ 111,571 | $ 284,822 | |
Goodwill | 1,574,466 | 1,393,832 | 1,337,122 | |
Goodwill deductible for tax purposes | 282,524 | 187,546 | ||
Acquisition related cost | $ 8,352 | $ 2,362 | $ 5,886 | |
Rightpoint Consulting LLC | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Nov. 12, 2019 | |||
Ownership percentage acquired | 100.00% | 100.00% | ||
Purchase consideration | $ 270,669 | |||
Payment for business acquisitions, net of cash acquired | 268,170 | |||
Cash and cash equivalents | 2,499 | |||
Cash consideration to acquired certain assets and assumed certain liabilities | $ 248,470 | |||
Consideration payable | $ 22,199 | |||
Maximum measurement period for tax position evaluation | 1 year | |||
Percentage of receive consideration in cash at closing date for limited liability company interests and vested options to selling equity holders | 100.00% | |||
Retain percentage of limited liability company interests and vested options to selling equity holders | 25.00% | |||
Vested options rolling period to certain selling equity holders | 3 years | |||
Percentage of receive consideration for remaining limited liability company interests and vested options to selling equity holders | 75.00% | |||
Deferred variable earnout consideration to certain selling equity holders | $ 21,500 | |||
Deferred earn out consideration rolling period to certain selling equity holders | 3 years | |||
Acquired intangible assets, weighted average amortization period | 5 years | |||
Goodwill | $ 182,834 | |||
Goodwill deductible for tax purposes | 97,833 | |||
Acquisition related cost | 7,385 | |||
Acquired assets | 39,140 | |||
Liabilities assumed | 23,095 | |||
Recognized net deferred tax liability | 3,210 | |||
Rightpoint Consulting LLC | BCMI | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 17,525 | |||
Rightpoint Consulting LLC | CGRLH | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 44,365 | |||
Rightpoint Consulting LLC | HMS | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 120,944 | |||
Rightpoint Consulting LLC | Customer-Related Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 46,000 | |||
Rightpoint Consulting LLC | Marketing-Related Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 29,000 |
Business Acquisitions - Risk Ca
Business Acquisitions - Risk Canvas Holdings, LLC - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 07, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,574,466 | $ 1,393,832 | $ 1,337,122 | |
Acquisition related cost | 8,352 | $ 2,362 | $ 5,886 | |
riskCanvas Holdings, LLC | ||||
Business Acquisition [Line Items] | ||||
Date of acquisition | Jan. 7, 2019 | |||
Ownership percentage acquired | 100.00% | |||
Purchase consideration | $ 5,747 | |||
Consideration payable | $ 0 | |||
Cash consideration to acquired certain assets and assumed certain liabilities | 5,700 | |||
Acquisition related cost | 967 | |||
Acquired assets | 660 | |||
Liabilities assumed | 707 | |||
riskCanvas Holdings, LLC | BCMI | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 2,547 | |||
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 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Payment for business acquisitions, net of cash acquired | $ 252,276 | $ 111,571 | $ 284,822 | |
Goodwill | 1,574,466 | 1,393,832 | 1,337,122 | |
Goodwill deductible for tax purposes | 282,524 | 187,546 | ||
Acquisition related cost | 8,352 | $ 2,362 | $ 5,886 | |
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 deductible for tax purposes | $ 64,457 | |||
Acquisition related cost | 1,842 | |||
Acquired assets | 17,314 | |||
Liabilities assumed | 8,827 | |||
Recognized net deferred tax asset | 892 | |||
Barkawi | BCMI, CGRLH and HMS | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 79,928 | |||
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 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Payment for business acquisitions, net of cash acquired | $ 252,276 | $ 111,571 | $ 284,822 | |
Goodwill | 1,574,466 | 1,393,832 | 1,337,122 | |
Acquisition related cost | 8,352 | $ 2,362 | $ 5,886 | |
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 | |||
Acquisition related cost | $ 521 | |||
Acquired assets | 2,583 | |||
Liabilities assumed | 1,032 | |||
Commonwealth | CGRLH | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 11,587 | |||
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Abstract] | ||
Cash and other bank balances | $ 467,096 | $ 368,396 |
Total | $ 467,096 | $ 368,396 |
Accounts Receivable, Net of R_3
Accounts Receivable, Net of Reserve for Doubtful Receivables - Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Opening balance | $ 23,960 | $ 23,660 | $ 15,519 |
Additions due to acquisitions | 1,004 | 235 | |
Additions charged/reversal released to cost and expense | 7,443 | 1,857 | 9,819 |
Deductions/effect of exchange rate fluctuations | (2,438) | (1,557) | (1,913) |
Closing balance | $ 29,969 | $ 23,960 | $ 23,660 |
Accounts Receivable, Net of R_4
Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||||
Gross accounts receivable | $ 944,224,000 | $ 798,144,000 | ||
Reserve for doubtful receivables | 29,969,000 | 23,960,000 | $ 23,660,000 | $ 15,519,000 |
Net accounts receivable | 914,255,000 | 774,184,000 | ||
Accounts receivable due after one year | 7,858,000 | 4,099,000 | ||
Accounts receivable from related parties | 0 | 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 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative instruments, assets | [1],[2] | $ 21,309 | $ 44,099 |
Deferred compensation plan assets | [1],[3] | 11,208 | 1,613 |
Total, assets | 32,517 | 45,712 | |
Earn out consideration | [4],[5] | 22,184 | 17,073 |
Derivative instruments, liabilities | [2],[4] | 24,239 | 35,245 |
Deferred compensation plan liability | [4],[6] | 10,943 | 1,582 |
Total, liabilities | 57,366 | 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] | 21,309 | 44,099 |
Total, assets | 21,309 | 44,099 | |
Derivative instruments, liabilities | [2],[4] | 24,239 | 35,245 |
Total, liabilities | 24,239 | 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] | 11,208 | 1,613 |
Total, assets | 11,208 | 1,613 | |
Earn out consideration | [4],[5] | 22,184 | 17,073 |
Deferred compensation plan liability | [4],[6] | 10,943 | 1,582 |
Total, liabilities | $ 33,127 | $ 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 policies 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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Opening balance | $ 17,073 | $ 24,732 | |
Earn-out consideration payable in connection with acquisitions | 21,701 | ||
Payments made on earn-out consideration | [1] | (17,098) | (3,356) |
Change in fair value of earn out consideration | [2] | (5,655) | |
Others | [3] | 508 | 1,352 |
Closing balance | $ 22,184 | $ 17,073 | |
[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 $0 and $4,308 for the year ended December 31, 2018 and 2019, respectively. | ||
[2] | Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. | ||
[3] | “Others” is comprised of interest expense included in “interest income (expense), net” and the impact of changes in foreign exchange reported in “foreign exchange gains (losses), net” in the consolidated statements of income. This also includes a cumulative translation adjustment reported as a component of other comprehensive income (loss). |
Fair Value Measurements - Rol_2
Fair Value Measurements - Roll-Forward of Fair Value of Earn-out Consideration Categorized as Level 3 in Fair Value Hierarchy (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Payment of earn-out consideration include in cash flows from operating activities | $ 4,308 | $ 0 |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Opening balance | $ 1,613 | ||
Additions (net of redemption) | 8,299 | $ 1,669 | |
Change in fair value of deferred compensation plan assets | [1] | 1,296 | (56) |
Closing balance | $ 11,208 | $ 1,613 | |
[1] | (a) Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. |
Fair Value Measurements - Rol_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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Opening balance | $ 1,582 | ||
Additions (net of redemption) | 8,299 | $ 1,669 | |
Change in fair value of deferred compensation plan liabilities | [1] | 1,062 | (87) |
Closing balance | $ 10,943 | $ 1,582 | |
[1] | Changes in the fair value of deferred compensation liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Gains (losses) recognized income ineffective portion of derivatives | $ 0 | $ 0 | $ 0 |
Forward Foreign Exchange Contracts | Maximum | |||
Derivative [Line Items] | |||
Derivative financial instrument contracts, maturity period | 48 months | ||
Interest Rate Swaps | Maximum | |||
Derivative [Line Items] | |||
Derivative financial instrument contracts, maturity period | 48 months |
Derivative Financial Instrume_4
Derivative Financial Instruments - Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |||
Derivative [Line Items] | |||||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (2,930,000) | $ 8,854,000 | ||
United States Dollars (sell) Indian Rupees (buy) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | 1,305,000,000 | [1] | 1,439,000,000 | [2] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (5,740,000) | (3,643,000) | ||
United States Dollars (sell) Philippines Peso (buy) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | 66,600,000 | [1] | 55,800,000 | [2] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 462,000 | (1,510,000) | ||
Euro (sell) United States Dollars (buy) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | 122,337,000 | [1] | 136,412,000 | [2] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 4,135,000 | 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) | |||
Singapore Dollars (buy) United States Dollars (sell) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | [1] | 10,017,000 | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 38,000 | |||
Euro (sell) Romanian Leu (buy) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | 26,918,000 | [1] | 41,198,000 | [2] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (314,000) | (299,000) | ||
Japanese Yen (sell) Chinese Renminbi (buy) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | 29,350,000 | [1] | 40,568,000 | [2] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (258,000) | (2,195,000) | ||
Pound Sterling (sell) United States Dollars (buy) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | 9,089,000 | [1] | 27,517,000 | [2] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 383,000 | 495,000 | ||
Australian Dollars (sell) United States Dollars (buy) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | 35,972,000 | [1] | 89,780,000 | [2] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 1,924,000 | 3,548,000 | ||
United States Dollars (sell) Hungarian Font (buy) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | [1] | 20,500,000 | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 162,000 | |||
Interest Rate Swap Floating To Fixed [Member] | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | 477,604,000 | [1] | 507,425,000 | [2] | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (3,565,000) | $ 7,782,000 | ||
Hungarian Font (Sell) Euro (buy) | |||||
Derivative [Line Items] | |||||
Derivative instrument notional principal amount | [1] | 9,534,000 | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (157,000) | |||
[1] | Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. | ||||
[2] | Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or other market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. Notional amounts are denominated in U.S. dollars. |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Values of Derivative Instruments and Location in Financial Statements (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | $ 2,009 | $ 11,490 |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 814 | 225 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 16,214 | 23,038 |
Cash Flow Hedges | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 3,086 | 9,571 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 6,152 | 15,148 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | $ 17,273 | $ 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 | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Opening balance, before-tax amount | $ (2,411) | $ 50,529 | $ 37,461 | |||
Net gains (losses) reclassified into statement of income on completion of hedged transactions (Note a) | 19,401 | 9,336 | 54,494 | |||
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | 17,686 | (43,604) | 67,562 | |||
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | (1,715) | (52,940) | 13,068 | |||
Closing balance, before-tax amount | (4,126) | (2,411) | 50,529 | |||
Opening balance, tax (expense) or benefit | (5,524) | [1] | (14,436) | [1] | (13,979) | |
Net gains (losses) reclassified into statement of income on completion of hedged transactions (Note a) | (7,212) | [1] | (1,073) | [1] | (17,725) | |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | (3,154) | [1] | 5,574 | [1] | (18,182) | |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | 4,058 | [1] | 6,647 | [1] | (457) | |
Closing balance, tax (expense) or benefit | [1] | (1,466) | (5,524) | (14,436) | ||
Opening balance, net of tax amount | (7,935) | 36,093 | 23,482 | |||
Net gains (losses) reclassified into statement of income on completion of hedged transactions (Note a) | 12,189 | 8,263 | 36,769 | |||
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | 14,532 | (38,030) | 49,380 | |||
Gain (loss) on cash flow hedging derivatives, net of taxes amount | 2,343 | (46,293) | 12,611 | |||
Closing balance, net of tax amount | $ (5,592) | (7,935) | $ 36,093 | |||
ASU 2018-02 | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Adoption of ASU 2018-02 (refer note 25) | [1] | 2,265 | ||||
Adoption of ASU 2018-02 (refer note 25) | $ 2,265 | |||||
[1] | *The tax (expense) benefit includes the effect of novating certain hedging instruments as part of an intercompany transfer . |
Derivative Financial Instrume_7
Derivative Financial Instruments - Gains (Losses) Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ 17,686 | $ (43,604) | $ 67,562 | |
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 19,401 | 9,336 | 54,494 | |
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | 4,299 | (6,240) | 16,696 | |
Net revenues | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 6,782 | (716) | 5,858 | |
Cost of Revenue | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 6,435 | 4,723 | 37,849 | |
Selling, General and Administrative Expenses | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 1,732 | 1,543 | 10,849 | |
Interest Expense | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 4,452 | 3,786 | (62) | |
Forward Foreign Exchange Contracts | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | 24,581 | (45,840) | 66,037 | |
Forward Foreign Exchange Contracts | Foreign Exchange (Gains) Losses, Net | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | [1] | 4,299 | (6,240) | 16,696 |
Interest Rate Swaps | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ (6,895) | $ 2,236 | $ 1,525 | |
[1] | These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items, such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income. |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Advance income and non-income taxes | $ 43,763 | $ 58,701 |
Contract asset | 19,170 | 22,472 |
Prepaid expenses | 29,734 | 25,996 |
Derivative instruments | 18,223 | 34,528 |
Employee advances | 4,209 | 3,772 |
Deposits | 1,784 | 2,758 |
Advances to suppliers | 4,289 | 1,998 |
Others | 49,153 | 62,252 |
Prepaid expenses and other current assets, net | $ 170,325 | $ 212,477 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 744,161 | $ 660,754 |
Less: Accumulated depreciation and amortization | (490,126) | (448,039) |
Property, plant and equipment, net | 254,035 | 212,715 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,923 | 9,401 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 42,595 | 43,078 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 49,849 | 47,206 |
Computer Equipment and Servers | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 229,890 | 210,239 |
Plant, Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 105,004 | 88,937 |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 141,330 | 138,824 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 123,413 | 105,965 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | 120 | 5,309 |
Capital Work in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 46,037 | $ 11,795 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 96,101 | $ 64,868 | $ 58,503 |
Effect of Reclassification of Foreign Exchange (Gains) Losses | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | (267) | (231) | (1,712) |
Depreciation Expense on Property, Plant And Equipment | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | 53,332 | 49,518 | 44,909 |
Computer software | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization | $ 14 | $ 12,317 | $ 11,415 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Number of reportable segments | Segment | 3 | 1 | ||
Goodwill deductible for tax purposes | $ 282,524 | $ 187,546 | ||
Amortization of acquired intangible assets | 32,612 | 38,850 | $ 36,412 | [1] |
Tangible assets write-down | 3,511 | 4,265 | 8,000 | |
Computer Software | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Tangible assets write-down | 0 | 1,200 | 5,760 | |
Internally developed and other intangibles | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Amortization of acquired intangible assets | 18,957 | 2,807 | 452 | |
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 | (76) | 5 | (15) | |
Technology Related Intangible Assets | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Tangible assets write-down | $ 3,511 | $ 3,065 | 2,240 | |
Customer-Related Intangible Assets | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Tangible assets write-down | $ 1,311 | |||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | 185,381 | 91,936 |
Impact of measurement period adjustments | (988) | 816 |
Effect of exchange rate fluctuations | (3,759) | (36,042) |
Closing balance | $ 1,574,466 | $ 1,393,832 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Changes in Goodwill by Reporting Unit (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Opening balance | $ 1,393,832 | $ 1,337,122 |
Goodwill relating to acquisitions consummated during the period | 185,381 | 91,936 |
Impact of measurement period adjustments | (988) | 816 |
Effect of exchange rate fluctuations | (3,759) | (36,042) |
Closing balance | 1,574,466 | 1,393,832 |
BCMI | ||
Goodwill [Line Items] | ||
Opening balance | 398,601 | |
Goodwill relating to acquisitions consummated during the period | 20,072 | |
Impact of measurement period adjustments | (380) | |
Effect of exchange rate fluctuations | (1,080) | |
Closing balance | 417,213 | 398,601 |
CGRLH | ||
Goodwill [Line Items] | ||
Opening balance | 512,296 | |
Goodwill relating to acquisitions consummated during the period | 44,365 | |
Impact of measurement period adjustments | (151) | |
Effect of exchange rate fluctuations | (1,380) | |
Closing balance | 555,130 | 512,296 |
HMS | ||
Goodwill [Line Items] | ||
Opening balance | 482,935 | |
Goodwill relating to acquisitions consummated during the period | 120,944 | |
Impact of measurement period adjustments | (457) | |
Effect of exchange rate fluctuations | (1,299) | |
Closing balance | $ 602,123 | $ 482,935 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 675,463 | $ 565,313 |
Accumulated amortization & Impairment | 444,602 | 388,226 |
Net | 230,861 | 177,087 |
Customer-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 415,375 | 368,558 |
Accumulated amortization & Impairment | 329,724 | 306,582 |
Net | 85,651 | 61,976 |
Marketing-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 84,180 | 54,714 |
Accumulated amortization & Impairment | 50,217 | 46,591 |
Net | 33,963 | 8,123 |
Technology-related intangible assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 149,262 | 76,790 |
Accumulated amortization & Impairment | 61,150 | 33,976 |
Net | 88,112 | 42,814 |
Other Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,204 | |
Accumulated amortization & Impairment | 1,077 | |
Net | 127 | |
Intangible Assets Under Development | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 26,646 | 64,047 |
Accumulated amortization & Impairment | 3,511 | |
Net | $ 23,135 | $ 64,047 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Amortization Schedule of Intangible Assets for Future Periods (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 70,355 |
2021 | 52,597 |
2022 | 36,920 |
2023 | 29,817 |
2024 and beyond | 18,037 |
Intangible assets excluding under development assets | $ 207,726 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets Noncurrent Disclosure [Abstract] | ||
Contract asset (Note 27) | $ 21,176 | $ 22,563 |
Advance income and non-income taxes | 93,277 | 62,942 |
Deposits | 36,342 | 25,984 |
Derivative instruments | 3,086 | 9,571 |
Prepaid expenses | 6,003 | 5,052 |
Accounts receivable due after one year | 7,858 | 4,099 |
Others | 15,853 | 24,948 |
Right of use (ROU) assets finance lease | 33,484 | |
Other assets, net | $ 217,079 | $ 155,159 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Lessee Lease Description [Line Items] | ||||
Right-of-use assets relating to finance leases | $ 33,484 | |||
Finance lease Right of use asset, Statement of financial position Extensible list | us-gaap:OtherAssetsNoncurrent | |||
Operating lease cost | [1] | $ 74,436 | ||
Rent expenses | $ 66,110 | $ 59,484 | ||
Effect of Reclassification of Foreign Exchange (Gains) Losses | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease cost | $ (105) | |||
Rent expenses | $ (195) | $ (1,533) | ||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Lease renewal term | 5 years | |||
[1] | Included in “cost of revenue” and “selling, general and administrative expenses” in the consolidated statements of income. |
Leases - Components of Lease Co
Leases - Components of Lease Cost of Operating and Finance Leases (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Finance lease cost: | ||
Amortization of ROU assets | $ 9,302 | [1] |
Interest on lease liabilities | 2,997 | [2] |
Operating lease cost | 74,436 | [3] |
Short-term lease cost | 438 | [3] |
Variable lease cost | 4,052 | [3] |
Total lease cost | $ 91,225 | |
[1] | Included in “depreciation and amortization” in the consolidated statements of income. | |
[2] | Included in “interest income (expense), net” in the consolidated statements of income. | |
[3] | Included in “cost of revenue” and “selling, general and administrative expenses” in the consolidated statements of income. |
Leases - Schedule of Other info
Leases - Schedule of Other information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Weighted-average remaining lease term—finance leases | 3 years 10 months 24 days | ||
Weighted-average remaining lease term—operating leases | 6 years 9 months 7 days | ||
Weighted-average discount rate—finance leases | 9.20% | ||
Weighted-average discount rate—operating leases | 6.87% | ||
Operating cash flows from finance leases | $ 2,859 | ||
Operating cash flows from operating leases | 72,645 | ||
Financing cash flows from finance leases | $ 7,380 | $ 2,395 | $ 2,708 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finance lease | |
2020 | $ 12,019 |
2021 | 8,765 |
2022 | 6,008 |
2023 | 4,506 |
2024 | 3,445 |
Thereafter | 1,512 |
Total lease payments | 36,255 |
Less: Imputed interest | 5,790 |
Total lease liabilities | 30,465 |
Operating lease | |
2020 | 79,912 |
2021 | 74,736 |
2022 | 63,539 |
2023 | 57,742 |
2024 | 45,870 |
Thereafter | 135,104 |
Total lease payments | 456,903 |
Less: Imputed interest | 97,139 |
Total lease liabilities | $ 359,764 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Operating Lease Arrangements (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 64,099 |
2020 | 58,434 |
2021 | 53,170 |
2022 | 47,976 |
2023 | 38,862 |
2024 and beyond | 147,765 |
Total minimum lease payments | $ 410,306 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued expenses | $ 178,845 | $ 179,843 |
Accrued employee cost | 273,506 | 210,251 |
Earn-out consideration | 6,384 | 16,875 |
Statutory liabilities | 62,350 | 42,728 |
Retirement benefits | 28,379 | 22,921 |
Derivative instruments | 6,966 | 15,373 |
Contract liabilities (Note 27) | 97,313 | 64,744 |
Finance lease liability | 9,740 | |
Other liabilities | 20,388 | 16,807 |
Capital lease obligations | 1,808 | |
Accrued expenses and other current liabilities, net | $ 683,871 | $ 571,350 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2019USD ($) | Aug. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2019USD ($)Day | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 09, 2018USD ($) | Aug. 08, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||||
Maturity date of loan agreement | Aug. 8, 2023 | |||||||
Margin over LIBOR | 1.375% | 1.375% | 1.375% | |||||
Debt amount outstanding | $ 1,373,305,000 | $ 1,009,128,000 | ||||||
Debt discount and underwriting fee | $ 2,317,000 | 4,293,000 | $ 2,630,000 | |||||
Genpact Luxembourg S.à r.l. | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument description | The Issuer will pay interest on the 2017 notes semi-annually in arrears on April 1 and October 1 of each year and on the 2019 notes semi-annually in arrears on June 1 and December 1 of each year, ending on the maturity dates of April 1, 2022 and December 1, 2024, respectively. | |||||||
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 | $ 1,641,000 | 2,158,000 | ||||||
Maturity date of loan agreement | Aug. 8, 2023 | |||||||
Debt amount outstanding | $ 627,359,000 | 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 | |||||||
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 | $ 1,186,000 | 1,713,000 | ||||||
Debt amount outstanding | $ 348,814,000 | $ 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 | |||||||
Debt instrument, number of days to provide offer to exchange notes for outstanding unregistered notes | Day | 455 | |||||||
Other debt issuance costs | 1,161,000 | |||||||
Total debt issuance cost | $ 2,642,000 | |||||||
Debt instrument, maturity date | Apr. 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% | |||||||
3.375% Senior Notes | Genpact Luxembourg S.à r.l. | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt amortization expense | $ 2,868,000 | |||||||
Debt amount outstanding | $ 397,132,000 | |||||||
Principal amount of senior notes issued | $ 400,000,000 | |||||||
Interest rate on senior notes | 3.375% | |||||||
Net proceeds from issue of senior notes | $ 398,304,000 | |||||||
Debt discount and underwriting fee | 1,600,000 | |||||||
Debt discount | 96,000 | |||||||
Other debt issuance costs | 1,241,000 | |||||||
Total debt issuance cost | $ 2,937,000 | |||||||
Debt instrument redemption price percentage | 100.00% | |||||||
Debt instrument redemption date | Nov. 1, 2024 | |||||||
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% |
Long-Term Debt - Maturity Profi
Long-Term Debt - Maturity Profile of Term Loan Outstanding Net of Debt Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total | $ 1,373,305 | $ 1,009,128 |
Term Loan Credit Facility | ||
Debt Instrument [Line Items] | ||
2020 | 33,509 | |
2021 | 33,537 | |
2022 | 33,564 | |
2023 | 526,749 | |
Total | $ 627,359 | $ 660,841 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total | $ 1,373,305 | $ 1,009,128 |
Current portion of long-term debt | 33,509 | 33,483 |
Long-term debt, less current portion | 1,339,796 | 975,645 |
Credit facility, Net of Amortization Expenses | ||
Debt Instrument [Line Items] | ||
Total | 627,359 | 660,841 |
3.70% Senior Notes, Net of Debt Amortization Expenses | ||
Debt Instrument [Line Items] | ||
Total | 348,814 | $ 348,287 |
3.375% Senior Notes, Net of Debt Amortization Expenses | ||
Debt Instrument [Line Items] | ||
Total | $ 397,132 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2018 | Dec. 31, 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 | $ 14,307,000 | $ 14,281,000 | |||
Utilization of credit facility for non fund-based usage | 7,486,000 | 7,389,000 | |||
Credit facility, amount utilized | 72,098,000 | 297,098,000 | |||
Short-term borrowings | $ 70,000,000 | $ 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% |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Accrued employee cost | $ 8,729 | $ 6,341 |
Earn-out consideration | 15,800 | 198 |
Retirement benefits | 48,191 | 50,370 |
Derivative instruments | 17,273 | 19,872 |
Contract liabilities (Note 27) | 78,613 | 53,796 |
Finance lease liability | 20,725 | |
Others | 19,585 | 32,935 |
Capital lease obligations | 1,714 | |
Other Liabilities | $ 208,916 | $ 165,226 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded Status of Defined Benefit Plans and Amount Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at the beginning of the year | $ 61,448 | $ 58,094 | |
Service cost | 8,915 | 7,833 | $ 7,735 |
Actuarial loss (gain) | 12,323 | 470 | |
Interest cost | 4,667 | 3,822 | 3,252 |
Liabilities assumed on acquisition/ transfer of employees | 96 | 503 | |
Benefits paid | (7,043) | (6,277) | |
Plan Amendments | (405) | 995 | |
Effect of exchange rate changes | 560 | (3,992) | |
Projected benefit obligation at the end of the year | 80,561 | 61,448 | 58,094 |
Fair value of plan assets at the beginning of the year | 39,683 | 45,560 | |
Employer contributions | 35,459 | 1,573 | |
Actual gain on plan assets | 3,258 | 1,929 | |
Actuarial gain/(loss) | 387 | (9) | |
Benefits paid | (7,379) | (6,228) | |
Effect of exchange rate changes | (508) | (3,142) | |
Fair value of plan assets at the end of the year | 70,900 | 39,683 | $ 45,560 |
Funded, status, end of year | (9,661) | (21,765) | |
Amounts recognized in the consolidated balance sheets | |||
Non-current assets (recorded under other assets-others) | 4,739 | 1,622 | |
Current liabilities (recorded under accrued expenses and other current liabilities-retirement benefits) | (28,379) | (22,921) | |
Non-current liabilities (recorded under other liabilities- retirement benefits) | (48,191) | (50,370) | |
Funded, status, end of year | (9,661) | (21,765) | |
Other Current Liabilities | |||
Amounts recognized in the consolidated balance sheets | |||
Current liabilities (recorded under accrued expenses and other current liabilities-retirement benefits) | (1,333) | (1,111) | |
Other Noncurrent Liabilities | |||
Amounts recognized in the consolidated balance sheets | |||
Non-current liabilities (recorded under other liabilities- retirement benefits) | $ (13,067) | $ (22,276) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Included in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Compensation And Retirement Disclosure [Abstract] | |||
Net actuarial loss | $ (20,549) | $ (11,037) | $ (12,228) |
Net prior service credit/(cost) | (717) | (967) | |
Deferred tax assets | 2,067 | 3,451 | 2,221 |
Other comprehensive income, net | $ (19,199) | $ (8,553) | $ (10,007) |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Net actuarial loss | $ (11,283) | $ (951) | |
Amortization of net actuarial loss | 1,150 | 1,202 | |
Deferred income taxes | 2,720 | 1,407 | |
Net prior service credit/(cost) | 436 | (944) | |
Effect of exchange rate changes | 435 | 740 | |
Other comprehensive income (loss), net | $ (6,542) | $ 1,454 | $ (3,787) |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated Benefit Obligation for Defined Benefit Plans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation And Retirement Disclosure [Abstract] | ||
Accumulated benefit obligation | $ 43,703 | $ 55,259 |
Employee Benefit Plans - Net De
Employee Benefit Plans - Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Service costs | $ 8,915 | $ 7,833 | $ 7,735 |
Interest costs | 4,667 | 3,822 | 3,252 |
Amortization of actuarial loss | 1,384 | 806 | 1,177 |
Expected return on plan assets | (2,605) | (2,435) | (2,412) |
One-time cost | 202 | 209 | |
Special termination benefits | 426 | ||
Net defined benefit plan costs | $ 12,563 | $ 10,026 | $ 10,387 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Amount in other comprehensive loss expected to be recognized as component of net periodic benefit cost over next fiscal year | $ 2,521 | ||
Expected contributions in fiscal 2020 | 7,470 | ||
Deferred compensation plan liability | 1,582 | $ 10,943 | |
Cash surrender value of policies | 1,613 | 11,208 | |
Change in fair value of plan assets | 1,296 | (56) | |
Change in fair value of deferred compensation liabilities | $ 1,062 | $ (87) | |
U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Vesting percentage of participants | 100.00% | ||
Employer discretionary vesting period | 2 years | ||
Earnings receivable minimum term | 2 years | ||
Earnings receivable lump sum or annual installment maximum terms | 15 years | ||
One-Year Anniversary of Approval of Contribution | U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Employer discretionary vesting percentage | 50.00% | ||
Two-Year Anniversary of Approval of Contribution | U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Employer discretionary vesting percentage | 50.00% | ||
Minimum | U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Individual qualifying base compensation, percentage | 1.00% | ||
Individual qualifying bonus compensation, percentage | 1.00% | ||
Maximum | U.S. | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Individual qualifying base compensation, percentage | 80.00% | ||
Individual qualifying bonus compensation, percentage | 100.00% | ||
Benefit Obligations Of Philippines Plan | Minimum | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Expectation of the average long term rate of return expected, years | 15 years | ||
Benefit Obligations Of Philippines Plan | Maximum | |||
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | |||
Expectation of the average long term rate of return expected, years | 20 years |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions used to Determine Benefit Obligations, Gratuity Plan (Detail) - Benefit Obligations Of Gratuity Plan | Dec. 31, 2019 | Dec. 31, 2018 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 6.80% | 8.30% |
Rate of increase in compensation per annum | 5.20% | 5.20% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 7.35% | 8.40% |
Rate of increase in compensation per annum | 11.50% | 11.00% |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted Average Assumptions used to Determine Plan Costs, Gratuity Plan (Detail) - Gratuity Plan Costs | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long term rate of return on plan assets per annum | 7.50% | 7.50% | 7.50% |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 8.30% | 7.40% | 7.10% |
Rate of increase in compensation per annum | 5.20% | 5.20% | 5.20% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 8.40% | 7.60% | 7.50% |
Rate of increase in compensation per annum | 11.00% | 11.00% | 11.00% |
Employee Benefit Plans - Weig_3
Employee Benefit Plans - Weighted Average Assumptions used to Determine Benefit Obligations, Mexican Plan (Detail) - Benefit Obligations Of Mexican Plan | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 7.60% | 9.25% |
Rate of increase in compensation per annum | 5.50% | 5.50% |
Employee Benefit Plans - Weig_4
Employee Benefit Plans - Weighted Average Assumptions used to Determine Plan Costs, Mexican Plan (Detail) - Mexican Plan Costs | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 9.40% | 7.60% | 6.80% |
Rate of increase in compensation per annum | 5.50% | 5.50% | 5.50% |
Employee Benefit Plans - Weig_5
Employee Benefit Plans - Weighted Average Assumptions used to Determine Benefit Obligations, Philippines Plan (Detail) - Benefit Obligations Of Philippines Plan | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.22% | 7.53% |
Rate of increase in compensation per annum | 6.00% | 6.00% |
Employee Benefit Plans - Weig_6
Employee Benefit Plans - Weighted Average Assumptions used to Determine Plan Costs, Philippines Plan (Detail) - Philippines Plan Costs | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 7.53% | 5.97% | 5.54% |
Rate of increase in compensation per annum | 6.00% | 8.00% | 8.00% |
Expected long term rate of return on plan assets per annum | 1.00% | 4.00% | 4.00% |
Employee Benefit Plans - Weig_7
Employee Benefit Plans - Weighted Average Assumptions used to Determine Benefit Obligations, Japan Plan (Detail) - Benefit Obligations Of Japan Plan | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of increase in compensation per annum | 0.00% | 0.00% |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.094% | 0.076% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.271% | 0.269% |
Employee Benefit Plans - Weig_8
Employee Benefit Plans - Weighted Average Assumptions used to Determine Plan Costs, Japan Plan (Detail) - Japan Plan Costs | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of increase in compensation per annum | 0.00% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.076% | 0.113% | 0.08% |
Rate of increase in compensation per annum | 0.00% | 0.00% | |
Expected long term rate of return on plan assets per annum | 0.00% | 0.00% | 0.00% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.269% | 0.789% | 1.30% |
Rate of increase in compensation per annum | 3.55% | 3.55% | |
Expected long term rate of return on plan assets per annum | 1.77% | 1.84% | 3.09% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | $ 70,900 | $ 39,683 | $ 45,560 | |
Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 17,375 | 6,114 | ||
Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 53,525 | 33,569 | ||
Equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 12 | 7 | ||
Equity | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 12 | 7 | ||
Cash | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 11,001 | 381 | ||
Cash | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | 11,001 | 381 | ||
Fixed Income Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 55,821 | 36,499 | |
Fixed Income Securities | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 3,732 | 3,345 | |
Fixed Income Securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [1] | 52,089 | 33,154 | |
Other Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | 4,066 | 2,796 | |
Other Securities | Fair Value, Inputs, Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | 2,630 | 2,381 | |
Other Securities | Fair Value, Inputs, Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets, fair value | [2] | $ 1,436 | $ 415 | |
[1] | Includes investments in funds that invest 100% of their assets in fixed income securities such as money market instruments, government securities and public and private bonds. | |||
[2] | Includes investments in funds that invest primarily in fixed income securities and the remaining portion in equity securities. |
Employee Benefit Plans - Fair_2
Employee Benefit Plans - Fair Value of Plan Assets (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of investment in funds | 100.00% | 100.00% |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Benefit Plan Payments Reflecting Expected Future Service (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Compensation And Retirement Disclosure [Abstract] | |
2020 | $ 12,107 |
2021 | 11,946 |
2022 | 12,106 |
2023 | 13,475 |
2024 | 13,886 |
2025 – 2029 | 66,033 |
Defined benefit plan expected future benefit payments | $ 129,553 |
Employee Benefit Plans - Amou_2
Employee Benefit Plans - Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | $ 86,065 | $ 69,179 | $ 61,221 |
India | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 29,729 | 23,877 | 22,242 |
U.K. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 12,312 | 9,619 | 7,823 |
China | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 18,819 | 17,625 | 15,950 |
Other Regions | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | 5,804 | 4,604 | 4,059 |
U.S. | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plans, contributed amount | $ 19,401 | $ 13,454 | $ 11,147 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Dec. 18, 2019 | Sep. 20, 2019 | Jun. 21, 2019 | Apr. 05, 2019 | Mar. 20, 2019 | Dec. 19, 2018 | Sep. 19, 2018 | Jun. 20, 2018 | Mar. 21, 2018 | Dec. 20, 2017 | Sep. 21, 2017 | Jun. 28, 2017 | Mar. 28, 2017 | Apr. 11, 2012 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | May 09, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Stock based compensation cost | $ 82,802,000 | $ 48,196,000 | $ 35,112,000 | ||||||||||||||||||||||||||
Options granted, contractual period, years | 10 years | ||||||||||||||||||||||||||||
Cash dividends paid per share | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | |||||||||
Cash received from the exercise of stock option | $ 10,690,000 | 10,772,000 | 14,896,000 | ||||||||||||||||||||||||||
Tax benefits from the exercise of stock option | 2,966,000 | 2,473,000 | 2,016,000 | ||||||||||||||||||||||||||
Tax benefits recognized in relation to stock-based compensation | 18,921,000 | 11,783,000 | 9,600,000 | ||||||||||||||||||||||||||
Unrecognized stock-based compensation cost for options | $ 24,447,000 | 24,447,000 | |||||||||||||||||||||||||||
Employee Stock Option | |||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Excess tax benefit on stock-based compensation | $ 2,743,000 | $ 2,131,000 | $ 1,723,000 | ||||||||||||||||||||||||||
Weighted average remaining requisite vesting period | 3 years 6 months | ||||||||||||||||||||||||||||
Restricted Share Units (RSUs) | |||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Weighted average remaining requisite vesting period | 2 years 6 months | ||||||||||||||||||||||||||||
Shares to be issued on vested awards other than options | 53,546 | ||||||||||||||||||||||||||||
Unrecognized stock-based compensation cost | 23,060,000 | $ 23,060,000 | |||||||||||||||||||||||||||
Restricted Share Units (RSUs) | Granted in December 31, 2017 | |||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Shares to be issued on vested awards other than options | 52,482 | ||||||||||||||||||||||||||||
Restricted Share Units (RSUs) | Vested in December 31, 2018 | |||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Vested RSU issued during the period | 52,055 | ||||||||||||||||||||||||||||
Restricted Share Units (RSUs) | Granted in December 31, 2017 | |||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Shares to be issued on vested awards other than options | 34,035 | ||||||||||||||||||||||||||||
Restricted Share Units (RSUs) | Two-Year Anniversary of Approval of Contribution | |||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Vested RSU issued during the period | 17,802 | ||||||||||||||||||||||||||||
Restricted Share Units (RSUs) | Vested in December 31, 2017 | |||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Vested RSU issued during the period | 53,023 | ||||||||||||||||||||||||||||
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 | $ 76,386,000 | $ 76,386,000 | |||||||||||||||||||||||||||
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) | 264,440 | 245,467 | 190,435 | ||||||||||||||||||||||||||
Compensation expense for ESPP | $ 1,083,000 | $ 802,000 | $ 573,000 | ||||||||||||||||||||||||||
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 | 8,858,823 | ||||||||||||||||||||||||||
Number of common shares authorized for issuance | 23,000,000 | 15,000,000 | 23,858,823 | 23,858,823 | |||||||||||||||||||||||||
2017 Omnibus Incentive Compensation Plan | |||||||||||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||||||||||||||||
Number of common shares authorized for issuance | 15,000,000 |
Stock-Based Compensation - Sign
Stock-Based Compensation - Significant Assumptions used in Determination of Fair Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.97% | ||
Expected life (in months) | 84 months | 84 months | 84 months |
Risk-free rate of interest for expected life | 2.25% | ||
Risk-free rate of interest for expected life, minimum | 1.56% | 2.67% | |
Risk-free rate of interest for expected life, maximum | 2.63% | 2.93% | |
Volatility | 24.28% | ||
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 Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Shares arising out of options | |||||
Outstanding, shares arising out of options, beginning balance | 7,261,675 | 5,134,645 | 5,707,690 | ||
Granted, shares arising out of options | 1,881,068 | 2,638,106 | 250,000 | ||
Forfeited, shares arising out of options | (85,000) | (70,000) | (80,000) | ||
Exercised, shares arising out of options | (697,531) | (441,076) | (743,045) | ||
Outstanding, shares arising out of options, ending balance | 8,360,212 | 7,261,675 | 5,134,645 | 5,707,690 | |
Vested and expected to vest thereafter, shares arising out of options | [1] | 8,006,985 | 7,107,605 | 4,988,875 | |
Vested and exercisable, shares arising out of options | 3,111,039 | 3,313,570 | 2,203,146 | ||
Weighted average grant-date fair value of options granted during the period | $ 6.98 | $ 8.32 | $ 6.62 | ||
Weighted average exercise price | |||||
Outstanding weighted average exercise price, beginning balance | 23.61 | 19.52 | 18.65 | ||
Granted, weighted average exercise price | 28.50 | 30.47 | 24.74 | ||
Forfeited, weighted average exercise price | 29.91 | 27.65 | 20.63 | ||
Exercised, weighted average exercise price | 15.33 | 16.46 | 14.50 | ||
Outstanding weighted average exercise price, ending balance | 25.33 | 23.61 | 19.52 | $ 18.65 | |
Vested and expected to vest thereafter, weighted average exercise price | [1] | 25.18 | 23.50 | 19.36 | |
Vested and exercisable, weighted average exercise price | $ 19.16 | $ 17.69 | $ 16.17 | ||
Weighted average remaining contractual life (years) | |||||
Outstanding weighted average remaining contractual life (years) | 6 years 6 months | 6 years 4 months 24 days | 5 years 7 months 6 days | 5 years 9 months 18 days | |
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [1] | 6 years 6 months | 6 years 4 months 24 days | 5 years 7 months 6 days | |
Vested and exercisable, weighted average remaining contractual life (years) | 3 years 4 months 24 days | 3 years 8 months 12 days | 4 years 1 month 6 days | ||
Aggregate intrinsic value | |||||
Exercised, aggregate intrinsic value | $ 18,724 | $ 6,731 | $ 8,512 | ||
Outstanding aggregate intrinsic value, ending balance | 140,760 | 34,143 | 62,743 | ||
Vested and expected to vest thereafter, aggregate intrinsic value | [1] | 136,017 | 33,997 | 61,779 | |
Vested and exercisable, aggregate intrinsic value | $ 71,584 | $ 30,806 | $ 34,303 | ||
[1] | Options expected to vest reflect an estimated forfeiture rate. |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Share Units Activity (Detail) - Restricted Share Units (RSUs) - $ / shares | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Number of Restricted Share Units | |||||||
Outstanding number of shares (Units), beginning balance | 1,528,999 | 1,605,251 | 117,905 | ||||
Granted, number of shares (Units) | 470,939 | 484,427 | 1,533,836 | ||||
Vested, number of shares (Units) | (672,025) | [1] | (358,697) | [2] | (45,248) | [3] | |
Forfeited, number of shares (Units) | (66,207) | (201,982) | (1,242) | ||||
Outstanding number of shares (Units), ending balance | 1,261,706 | 1,528,999 | 1,605,251 | ||||
Expected to vest, number of shares (Units) | [4] | 1,149,286 | 1,360,048 | 1,371,567 | |||
Weighted Average Grant Date Fair Value | |||||||
Outstanding weighted average grant date fair value, beginning balance | $ 27.45 | $ 26.17 | $ 20.65 | ||||
Granted, weighted average grant date fair value | 37.58 | 30.13 | 26.36 | ||||
Vested, weighted average grant date fair value | 26.84 | [1] | 25.53 | [2] | 18.31 | [3] | |
Forfeited, weighted average grant date fair value | 30.43 | 27.09 | 25.53 | ||||
Outstanding weighted average grant date fair value, ending balance | $ 31.41 | $ 27.45 | $ 26.17 | ||||
[1] | |||||||
[2] | 261,260 RSUs that vested during the period were net settled upon vesting by issuing 175,505 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, 52,405 shares in respect of which were issued in 2019 after withholding shares to the extent of minimum statutory withholding taxes. 44,562 RSUs vested in the year ended December 31, 2018, shares in respect of which will be issued in 2020 after withholding shares to the extent of minimum statutory withholding taxes. | ||||||
[3] | Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). | ||||||
[4] | RSUs expected to vest reflect an estimated forfeiture rate. |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Share Units Activity (Parenthetical) (Detail) - Restricted Share Units (RSUs) - shares | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 521,707 | 175,505 | 32,395 | ||||
Vested, number of shares (Units) | 672,025 | [1] | 358,697 | [2] | 45,248 | [3] | |
Shares to be issued on vested awards other than options | 53,546 | ||||||
Vested and Settled During 2018 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vested, number of shares (Units) | 261,260 | ||||||
Vested in December 31, 2017 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares to be issued on vested awards other than options | 52,875 | ||||||
Vested in December 31, 2018 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vested, number of shares (Units) | 44,562 | ||||||
Vested in December 31, 2019 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vested, number of shares (Units) | 34,092 | ||||||
Vested RSU issued during the period | 52,405 | ||||||
Vested and Settled During 2019 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vested, number of shares (Units) | 637,933 | ||||||
[1] | |||||||
[2] | 261,260 RSUs that vested during the period were net settled upon vesting by issuing 175,505 shares (net of minimum statutory tax withholding). 52,875 RSUs vested in the year ended December 31, 2017, 52,405 shares in respect of which were issued in 2019 after withholding shares to the extent of minimum statutory withholding taxes. 44,562 RSUs vested in the year ended December 31, 2018, shares in respect of which will be issued in 2020 after withholding shares to the extent of minimum statutory withholding taxes. | ||||||
[3] | Vested RSUs were net settled by issuing 32,395 shares (net of minimum statutory tax withholding). |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Performance Units Activity (Detail) - Performance Units - $ / shares | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Outstanding number of shares (Units), beginning balance | 3,712,402 | 2,900,940 | 3,772,128 | ||||
Granted, number of shares (Units) | 1,579,109 | 1,682,740 | 1,811,292 | ||||
Vested, number of shares (Units) | (3,276) | [1] | (1,087,751) | [2] | (1,136,047) | [3] | |
Forfeited, number of shares (Units) | (248,031) | (258,237) | (1,583,913) | [4] | |||
Adjustment upon final determination of level of performance goal achievement | 1,018,260 | [5] | 474,800 | [6] | 37,480 | [7] | |
Outstanding number of shares (Units), ending balance | 6,058,464 | 3,712,402 | 2,900,940 | ||||
Expected to vest, number of shares (Units) | [8] | 5,507,640 | 3,261,069 | 2,657,685 | |||
Weighted Average Grant Date Fair Value | |||||||
Outstanding weighted average grant date fair value, beginning balance | $ 28.40 | $ 24.40 | $ 23.04 | ||||
Granted, weighted average grant date fair value | 34.68 | 30.62 | 25.22 | ||||
Vested, weighted average grant date fair value | 27.47 | [1] | 22.73 | [2] | 16.78 | [3] | |
Forfeited, weighted average grant date fair value | 29.04 | 26.03 | 27.57 | [4] | |||
Adjustment upon final determination of level of performance goal achievement | 34.72 | [5] | 30.68 | [6] | 25.22 | [7] | |
Outstanding weighted average grant date fair value, ending balance | $ 31.07 | $ 28.40 | $ 24.40 | ||||
Maximum shares eligible to receive | |||||||
Outstanding maximum shares eligible to receive, beginning balance | 3,712,402 | 2,900,940 | 5,524,114 | ||||
Granted, maximum shares eligible to receive | 3,158,218 | 3,365,480 | 3,622,584 | ||||
Vested, maximum shares eligible to receive | (3,276) | [1] | (1,087,751) | [2] | (1,136,047) | [3] | |
Forfeited, maximum shares eligible to receive | (278,755) | (305,737) | (1,627,313) | [4] | |||
Adjustment upon final determination of level of performance goal achievement | (530,125) | [9] | (1,160,530) | [10] | (3,482,398) | [11] | |
Outstanding maximum shares eligible to receive, ending balance | 6,058,464 | 3,712,402 | 2,900,940 | ||||
[1] | Vested PUs were net settled upon vesting by issuing 2,151 shares (net of minimum statutory tax withholding). | ||||||
[2] | Vested PUs were net settled upon vesting by issuing 691,958 shares (net of minimum statutory tax withholding). | ||||||
[3] | Vested PUs were net settled upon vesting by issuing 731,701 shares (net of minimum statutory tax withholding). | ||||||
[4] | Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards. | ||||||
[5] | Represents a 66.67% increase in the number of target shares expected to vest as a result of achievement of higher-than-target performance for PUs granted in 2019 partially offset by 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 | ||||||
[6] | Represents a 28.77% increase in the number of target shares expected to vest as a result of achievement of higher-than-target performance for PUs granted in 2018 partially offset by an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. | ||||||
[7] | Represents a 2.7% increase in the number of target shares as a result of achievement of higher-than-target performance for certain PUs granted in 2017, partially offset by a 12.5% reduction as a result of achievement of lower-than-target performance for certain PUs granted in 2017. | ||||||
[8] | PUs expected to vest are based on the probable achievement of the performance targets after considering an estimated forfeiture rate. | ||||||
[9] | Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2019 based on the level of achievement of the performance goals. Also includes 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. | ||||||
[10] | Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2018 based on the level of achievement of the performance goals. Also includes an adjustment made in March 2018 to the number of shares subject to the PUs granted in 2017 upon certification of the level of achievement of the performance targets underlying such awards. | ||||||
[11] | Represents the difference between the maximum number of shares achievable and the number of shares expected to vest under the PU awards granted in 2017 based on the level of achievement of the performance goals. Also includes the difference between the maximum number of shares achievable and the number of shares eligible to vest under the PU awards granted in 2016, which were forfeited for failure to achieve all of the threshold performance targets under such awards. |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Performance Units Activity (Parenthetical) (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net settlement on vesting of performance units (in shares) | 2,151 | 691,958 | 731,701 | |
Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeited, number of shares (Units) | 248,031 | 258,237 | 1,583,913 | [1] |
Increase due to achievement of higher-than-target performance for grants in 2017/2018, percentage | 66.67% | 28.77% | 2.70% | |
Decrease due to achievement of lower-than-target performance for grants in 2017, percentage | 12.50% | |||
Performance Units | Granted in 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeited, number of shares (Units) | 1,443,624 | |||
[1] | Includes 1,443,624 target shares underlying PUs granted in 2016 which were forfeited for failure to achieve all of the threshold performance targets under such awards. |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Dec. 18, 2019 | Sep. 20, 2019 | Jun. 21, 2019 | Mar. 20, 2019 | Feb. 07, 2019 | Dec. 19, 2018 | Sep. 19, 2018 | Jun. 20, 2018 | Mar. 21, 2018 | Feb. 12, 2018 | Jan. 17, 2018 | Dec. 29, 2017 | Dec. 20, 2017 | Sep. 21, 2017 | Jun. 28, 2017 | Mar. 30, 2017 | Mar. 28, 2017 | Feb. 28, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 29, 2017 |
Class Of Stock [Line Items] | ||||||||||||||||||||||||||||||
Common shares, authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||||||||||||||||||||||||||
Common shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||||
Preferred shares, authorized | 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | ||||||||||||||||||||||||||
Preferred shares, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||||
Common shares, issued | 190,118,181 | 189,346,101 | 190,118,181 | 189,346,101 | ||||||||||||||||||||||||||
Common shares, outstanding | 190,118,181 | 189,346,101 | 190,118,181 | 189,346,101 | ||||||||||||||||||||||||||
Preferred shares, issued | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Preferred shares, outstanding | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Common stock voting right | Holders of common shares are entitled to one vote per share. | |||||||||||||||||||||||||||||
Stock repurchase authorized amount | $ 1,250,000,000 | $ 1,250,000,000 | ||||||||||||||||||||||||||||
Shares repurchased and retired (in shares) | 766,154 | 4,921,192 | ||||||||||||||||||||||||||||
Common stock shares repurchased price per share | $ 39.16 | $ 31.30 | ||||||||||||||||||||||||||||
Aggregate amount of common stock shares repurchased | $ 30,000,000 | $ 154,058,000 | $ 219,784,000 | |||||||||||||||||||||||||||
Expenses related to stock purchases | 15,000 | $ 98,000 | $ 16,000 | |||||||||||||||||||||||||||
Stock repurchase program remained available for share | $ 274,042,000 | $ 274,042,000 | ||||||||||||||||||||||||||||
Quarterly dividend declared | $ 0.085 | $ 0.075 | $ 0.06 | $ 0.34 | $ 0.30 | $ 0.24 | ||||||||||||||||||||||||
Planned annual dividend | $ 0.34 | $ 0.30 | $ 0.24 | |||||||||||||||||||||||||||
Initial dividend paid | $ 16,156,000 | $ 16,208,000 | $ 16,188,000 | $ 16,119,000 | $ 14,201,000 | $ 14,253,000 | $ 14,240,000 | $ 14,408,000 | $ 11,590,000 | $ 11,581,000 | $ 11,558,000 | $ 11,957,000 | ||||||||||||||||||
Dividends paid per share | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.085 | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.075 | ||||||||||
Percentage Increase In Quarterly Cash Dividend | 13.00% | 25.00% | ||||||||||||||||||||||||||||
First Quarter Dividend | ||||||||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||||||||
Dividend payment date | Mar. 20, 2019 | Mar. 21, 2018 | Mar. 28, 2017 | |||||||||||||||||||||||||||
Dividends payable, date of record | Mar. 8, 2019 | Mar. 9, 2018 | Mar. 10, 2017 | |||||||||||||||||||||||||||
Second Quarter Dividend | ||||||||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||||||||
Dividend payment date | Jun. 21, 2019 | Jun. 20, 2018 | Jun. 28, 2017 | |||||||||||||||||||||||||||
Dividends payable, date of record | Jun. 12, 2019 | Jun. 8, 2018 | Jun. 12, 2017 | |||||||||||||||||||||||||||
Third Quarter Dividend | ||||||||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||||||||
Dividend payment date | Sep. 20, 2019 | Sep. 19, 2018 | Sep. 21, 2017 | |||||||||||||||||||||||||||
Dividends payable, date of record | Sep. 11, 2019 | Sep. 10, 2018 | Sep. 8, 2017 | |||||||||||||||||||||||||||
Fourth Quarter Dividend | ||||||||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||||||||
Dividend payment date | Dec. 18, 2019 | Dec. 19, 2018 | Dec. 20, 2017 | |||||||||||||||||||||||||||
Dividends payable, date of record | Dec. 9, 2019 | Dec. 10, 2018 | Dec. 8, 2017 | |||||||||||||||||||||||||||
Accelerated Share Repurchase Agreement | ||||||||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||||||||
Aggregate purchase price of common shares | $ 200,000,000 | |||||||||||||||||||||||||||||
Initial delivery of common shares received | 6,578,947 | |||||||||||||||||||||||||||||
Additional delivery of common shares received | 350,006 | |||||||||||||||||||||||||||||
Final delivery of common shares received | 163,975 | |||||||||||||||||||||||||||||
Delivery of weighted average price per share of common shares | $ 28.20 | |||||||||||||||||||||||||||||
Share Repurchase Open Market | ||||||||||||||||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||||||||||||||||
Aggregate amount of common stock shares repurchased | $ 30,000,000 | $ 154,058,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 1,809,069 | 2,410,230 | 1,007,480 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earnings Per Share (Abstract) | ||||||||||||
Net income available to Genpact Limited common shareholders | $ 304,881 | $ 282,019 | $ 263,111 | [1] | ||||||||
Weighted average number of common shares used in computing basic earnings per common share | 190,083,647 | 190,599,049 | 190,163,359 | 189,451,845 | 189,724,744 | 190,024,924 | 190,132,664 | 192,816,626 | 190,074,475 | 190,674,740 | 193,864,755 | [1] |
Dilutive effect of stock-based awards | 5,086,380 | 3,305,298 | 3,184,797 | |||||||||
Weighted average number of common shares used in computing dilutive earnings per common share | 196,592,325 | 195,890,841 | 194,766,047 | 193,394,208 | 193,149,836 | 193,115,769 | 193,365,974 | 196,288,569 | 195,160,855 | 193,980,038 | 197,049,552 | [1] |
Basic | $ 0.43 | $ 0.46 | $ 0.39 | $ 0.32 | $ 0.42 | $ 0.39 | $ 0.34 | $ 0.34 | $ 1.60 | $ 1.48 | $ 1.36 | [1] |
Diluted | $ 0.42 | $ 0.45 | $ 0.38 | $ 0.31 | $ 0.41 | $ 0.38 | $ 0.33 | $ 0.33 | $ 1.56 | $ 1.45 | $ 1.34 | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Cost of Revenue - Schedule of C
Cost of Revenue - Schedule of Cost of Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Cost of revenue | $ 2,294,688 | $ 1,921,768 | $ 1,681,438 | [1] |
Personnel expenses | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Cost of revenue | 1,687,896 | 1,322,651 | 1,153,479 | |
Operational expenses | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Cost of revenue | 521,041 | 543,006 | 481,012 | |
Depreciation and amortization | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Cost of revenue | $ 85,751 | $ 56,111 | $ 46,947 | |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Selling, General and Administ_3
Selling, General and Administrative Expenses - Schedule of Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Selling, general and administrative expenses | $ 794,901 | $ 693,865 | $ 689,461 | [1] |
Personnel expenses | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Selling, general and administrative expenses | 592,827 | 518,897 | 501,059 | |
Operational expenses | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Selling, general and administrative expenses | 192,107 | 166,437 | 178,573 | |
Depreciation and amortization | ||||
Component Of Operating Other Cost And Expense [Line Items] | ||||
Selling, general and administrative expenses | $ 9,967 | $ 8,531 | $ 9,829 | |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Other Operating (Income) Expe_3
Other Operating (Income) Expense, Net - Schedule of Other Operating (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Other Income And Expenses [Abstract] | |||||
Other operating (income) expense* | [1] | $ (34,545) | $ (455) | $ (7,277) | |
Provision for impairment of intangible assets and property, plant and equipment | 3,511 | 4,265 | 9,311 | ||
Change in fair value of earn-out consideration and deferred consideration (relating to business acquisitions) | (5,655) | (3,695) | |||
Other operating (income) expense, net | $ (31,034) | $ (1,845) | $ (1,661) | [2] | |
[1] | Includes a gain of $31,380 for the year ended December 31, 2019 on land rights transferred to a third-party real estate developer in exchange for an interest in commercial property being developed on the land. | ||||
[2] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Other Operating (Income) Expe_4
Other Operating (Income) Expense, Net - Schedule of Other Operating (Income) Expense, Net (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Non-cash transaction: Gain on land rights transferred | $ 31,380 | $ 4,100 |
Interest Income (Expense), Ne_2
Interest Income (Expense), Net - Schedule of Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Other Income And Expenses [Abstract] | ||||
Interest income | $ 7,321 | $ 11,388 | $ 8,182 | |
Interest expense | (50,779) | (48,507) | (39,917) | |
Interest income (expense), net | $ (43,458) | $ (37,119) | $ (31,735) | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Income Tax Disclosure [Line Items] | ||||||
Income tax expense | $ 94,536 | $ 80,763 | $ 59,742 | [1] | ||
Other comprehensive income: | ||||||
Unrealized gains (losses) on cash flow hedges | (4,058) | [2] | (6,647) | [2] | 457 | |
Retirement benefits | (2,720) | (1,407) | $ 670 | |||
ASU 2018-02 | ||||||
Retained earnings: | ||||||
Reclassification from AOCI on early adoption of ASU 2018-02 | $ 2,265 | 2,265 | ||||
Reclassification to retained earnings on early adoption of ASU 2018-02 | (2,265) | |||||
ASU 2014-09 | Deferred tax expense | ||||||
Retained earnings: | ||||||
Retained earnings | $ 5,303 | |||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. | |||||
[2] | *The tax (expense) benefit includes the effect of novating certain hedging instruments as part of an intercompany transfer . |
Income Taxes - Components of In
Income Taxes - Components of Income before Income Tax Expense from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
Domestic (U.S.) | $ 27,783 | $ 49,986 | $ 8,440 | |
Foreign (other than U.S.) | 371,634 | 312,035 | 312,143 | |
Income before income tax expense | $ 399,417 | $ 362,021 | $ 320,583 | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Income Taxes - Income Tax Exp_2
Income Taxes - Income Tax Expense (Benefit) Attributable to Income from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Current tax expense : | ||||
Domestic (U.S. federal) | $ 2,854 | $ 6,466 | $ 3,380 | |
Domestic (U.S. state) | 3,908 | 3,508 | 1,268 | |
Foreign (other than U.S.) | 104,089 | 64,735 | 65,485 | |
Current Income Tax Expense (Benefit), Total | 110,851 | 74,709 | 70,133 | |
Deferred tax expense (benefit) : | ||||
Domestic (U.S. federal) | 2,669 | 6,577 | 3,549 | |
Domestic (U.S. state) | (1,679) | (1,176) | (2,809) | |
Foreign (other than U.S.) | (17,305) | 653 | (11,131) | |
Deferred Income Tax Expense (Benefit), Total | (16,315) | 6,054 | (10,391) | |
Total income tax expense (benefit) | $ 94,536 | $ 80,763 | $ 59,742 | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||||
U.S. federal corporate income tax rate | 21.00% | 21.00% | 35.00% | |
Income tax expense attributable to continuing operations | $ 2,743 | $ 2,131 | $ 1,723 | |
Net operating loss carryforwards | 268,412 | |||
Deferred tax assets related to net operating loss carryforwards, excluding state | 61,779 | |||
Net operating loss of subsidiary, carried forward | 166,816 | |||
Additional deferred tax assets for U.S. state and local tax loss carry-forwards | $ 4,669 | |||
Operating loss carry-forwards, expiration date, range start | 2020 | |||
Operating loss carry-forwards, expiration date, range end | 2038 | |||
Tax credit carry-forward | $ 10,739 | |||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries | 464,899 | |||
Cash and cash equivalents | 467,096 | 368,396 | ||
Cash held by foreign subsidiary | 25,543 | |||
Cash and cash equivalents held by foreign (non-Bermuda) subsidiaries for which no tax will accrue on repatriation of retained earnings indefinitely reinvested | 439,356 | |||
Net tax expense in net deferred tax asset | $ 3,182 | |||
Tax benefit relating to derivatives | 2,265 | |||
Unrecognized tax benefits that would impact effective tax rate | 29,835 | 25,485 | ||
Unrecognized tax benefits, interest on income taxes accrued | 5,812 | 5,081 | ||
Unrecognized tax benefits, including exchange rate differences for interest recognized | 826 | 467 | ||
Accrued penalties | $ 1,084 | 995 | ||
Ministry of Finance, India | ||||
Income Tax Disclosure [Line Items] | ||||
Income tax examination year | 2016 | |||
Assessed tax amount | $ 114,867 | |||
Ministry of Finance, India | Subsequent Event | ||||
Income Tax Disclosure [Line Items] | ||||
Cash paid for penalty | $ 28,050 | |||
Tax refunds | $ 27,069 | |||
ASU 2018-02 | ||||
Income Tax Disclosure [Line Items] | ||||
Stranded tax effect in AOCI resulting from the Tax Act | 2,265 | $ 2,265 | ||
Retained Earnings | ||||
Income Tax Disclosure [Line Items] | ||||
Repatriation of retained earnings | 15,561 | |||
Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carry-forward | $ 10,739 | |||
Begin to Expire Date | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, expiring date | March 31, 2022 | |||
Fully Expired Date | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, expiring date | March 31, 2034 | |||
Tax Holiday For First 5 Years | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 100.00% | |||
Tax Holiday from year 6 to year 10 | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 50.00% | |||
Tax Holiday from year 11 to year 15 | ||||
Income Tax Disclosure [Line Items] | ||||
Tax holiday, period, in years | 5 years | |||
Percentage of tax holiday in respect to export profits | 50.00% | |||
Basic and Diluted Earnings Per Share | ||||
Income Tax Disclosure [Line Items] | ||||
Earnings per share effect of tax holiday | $ 0.11 | $ 0.12 | $ 0.18 |
Income Taxes - Income Tax Exp_3
Income Taxes - Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Tax Disclosure [Abstract] | |||||
Income before income tax expense | $ 399,417 | $ 362,021 | $ 320,583 | [1] | |
Statutory tax rates | 21.00% | 21.00% | 35.00% | ||
Computed expected income tax expense | $ 83,878 | $ 76,024 | $ 112,204 | ||
Increase (decrease) in income taxes resulting from: | |||||
Foreign tax rate differential | 34,566 | 23,373 | (25,224) | ||
Tax benefit from tax holiday | (21,393) | (23,003) | (35,814) | ||
Non-deductible expenses | 2,152 | 3,245 | 3,985 | ||
Effect of change in tax rates | 6,497 | (147) | 2,778 | ||
Change in valuation allowance | 10,515 | 27,826 | 9,041 | ||
Unrecognized tax benefits | 5,502 | 3,008 | 1,611 | ||
Employment related tax incentive | (5,239) | (3,243) | (1,918) | ||
Other | [2] | (21,942) | (26,320) | (6,921) | |
Total income tax expense (benefit) | $ 94,536 | $ 80,763 | $ 59,742 | [1] | |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. | ||||
[2] | Following the transfer/closure of certain affiliated entities, deferred tax liabilities recorded against the outside basis difference were reversed amounting to $9,600, $18,510, $3,782 during the year ended December 31, 2017, 2018 and 2019. |
Income Taxes - Income Tax Exp_4
Income Taxes - Income Tax Expense (Benefit) Computed by Applying United States Federal Statutory Income Tax Rate to Income Before Income Taxes (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Reversal of deferred tax liabilities due to transfer/closure of certain affiliated entities | $ 3,782 | $ 18,510 | $ 9,600 |
Impairment of deferred tax asset | $ 8,069 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||||
Net operating loss carryforwards | $ 66,448 | $ 64,013 | ||
Accrued expenses and other liabilities | 50,678 | 36,812 | ||
Provision for doubtful debts | 10,583 | 9,650 | ||
Property, plant and equipment and lease assets | 11,569 | 7,904 | ||
Share-based compensation | 30,192 | 18,236 | ||
Retirement benefits | 11,332 | 7,559 | ||
Contract liabilities | 4,437 | 3,150 | ||
Tax credit carryforwards | 10,739 | 22,409 | ||
Other | 12,934 | 9,557 | ||
Gross deferred tax assets | 208,912 | 179,290 | ||
Less: Valuation allowance | (62,628) | (51,986) | $ (24,549) | $ (14,746) |
Total deferred tax assets | 146,284 | 127,304 | ||
Deferred tax assets | 89,715 | 74,566 | ||
Deferred tax liabilities | ||||
Intangible assets, net | 24,819 | 17,975 | ||
Property, plant and equipment, net | 6,067 | 5,493 | ||
Deferred cost | 2,665 | 2,725 | ||
Investments in foreign subsidiaries not indefinitely reinvested | 1,401 | 4,835 | ||
Derivative instruments | 2,722 | 8,990 | ||
Goodwill | 11,793 | 12,957 | ||
Other | 11,092 | 7,843 | ||
Total deferred tax liabilities | 60,559 | 60,818 | ||
Deferred tax liabilities | 3,990 | 8,080 | ||
Net deferred tax asset | $ 85,725 | $ 66,486 |
Income Taxes - Change in Total
Income Taxes - Change in Total Valuation Allowance for Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Opening valuation allowance | $ 51,986 | $ 24,549 | $ 14,746 |
Reduction during the year | (4,240) | (2,307) | (3,957) |
Addition during the year | 14,882 | 29,744 | 13,760 |
Closing valuation allowance | $ 62,628 | $ 51,986 | $ 24,549 |
Income Taxes - Remaining Tax Lo
Income Taxes - Remaining Tax Loss Carry Forwards Expiration (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
US - Federal | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $ 7,791 |
US - Federal | 2037 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 7,791 |
Europe | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 69,992 |
Europe | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 948 |
Europe | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,635 |
Europe | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 3,803 |
Europe | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 405 |
Europe | 2028 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2 |
Europe | 2034 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 18,820 |
Europe | 2035 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 11,954 |
Europe | 2036 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 32,425 |
Others | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 23,813 |
Others | 2020 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 1,645 |
Others | 2021 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 676 |
Others | 2022 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 3,807 |
Others | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 831 |
Others | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 5,584 |
Others | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,897 |
Others | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 652 |
Others | 2027 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 4,436 |
Others | 2028 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 2,874 |
Others | 2029 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 196 |
Others | 2038 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | 45 |
Others | 2039 | |
Operating Loss Carryforwards [Line Items] | |
Tax loss carry forwards subject to expiration | $ 170 |
Income Taxes - Foreign Tax Cred
Income Taxes - Foreign Tax Credit Expiry Period (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | $ 10,739 |
2021 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 125 |
2027 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 2,431 |
2028 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 3,862 |
2029 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | 3,745 |
2035 | |
Tax Credit Carryforward [Line Items] | |
Foreign tax credit carryforward amount | $ 576 |
Income Taxes - Activities Relat
Income Taxes - Activities Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Uncertainties [Abstract] | ||
Beginning balance | $ 26,722 | $ 26,060 |
Increase related to prior year tax positions, including recorded in acquisition accounting | 1,684 | 1,851 |
Decrease related to prior year tax positions | (1,232) | (153) |
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (135) | (1,841) |
Increase related to current year tax positions, including recorded in acquisition accounting | 4,270 | 2,408 |
Effect of exchange rate changes | (280) | (1,603) |
Ending balance | $ 31,029 | $ 26,722 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Disclosure [Line Items] | |||
Number of operating segments | 3 | ||
HMS | |||
Segment Reporting Disclosure [Line Items] | |||
Percentage of revenues | 13.60% | 8.90% | 9.80% |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Adjusted Income from Operations by Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | $ 940,739 | $ 888,799 | $ 881,799 | $ 809,206 | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 3,520,543 | $ 3,000,790 | $ 2,736,929 | [1] | ||
Adjusted income from operations | 558,841 | 473,314 | 429,630 | |||||||||||
Stock-based compensation | (83,885) | (48,998) | (35,685) | |||||||||||
Amortization of acquired intangible assets (other than included above) | (31,458) | (37,292) | (35,467) | |||||||||||
Acquisition-related expenses | (8,352) | (2,362) | (5,886) | |||||||||||
Foreign exchange gains (losses), net | 7,729 | 15,239 | 1,996 | [1] | ||||||||||
Interest income (expense), net | (43,458) | (37,119) | (31,735) | [1] | ||||||||||
Income tax expense | (94,536) | (80,763) | (59,742) | [1] | ||||||||||
Net income attributable to Genpact Limited shareholders | $ 82,198 | $ 88,120 | $ 73,722 | $ 60,841 | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | 304,881 | 282,019 | 263,111 | [1] | ||
Operating Segments | BCMI | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 1,078,844 | 1,079,673 | 1,054,660 | |||||||||||
Adjusted income from operations | 115,998 | 148,712 | 150,545 | |||||||||||
Operating Segments | CGRLH | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 1,107,534 | 903,225 | 852,170 | |||||||||||
Adjusted income from operations | 161,515 | 116,705 | 84,908 | |||||||||||
Operating Segments | HMS | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 1,348,635 | 1,005,070 | 827,528 | |||||||||||
Adjusted income from operations | 238,129 | 177,209 | 126,238 | |||||||||||
Corporate | Others | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | (14,470) | [2] | 12,822 | [3] | 2,571 | [4] | ||||||||
Adjusted income from operations | $ 43,199 | [2],[5] | $ 30,688 | [3] | $ 67,939 | [4] | ||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. | |||||||||||||
[2] | Revenues, net for “Others” primarily represents the impact of foreign exchange fluctuations, which is not allocated to the Company’s segments for management’s internal reporting purposes. Adjusted income from operations for “Others” primarily represents gains related to a transfer of land, government incentives and the impact of foreign exchange fluctuations, which are not allocated to the Company’s segments for management’s internal reporting purposes | |||||||||||||
[3] | Revenues, net for “Others” primarily represents the impact of foreign exchange fluctuations, which is not allocated to the Company’s three segments for management’s internal reporting purposes. AOI for Others primarily represents government incentives and the impact of foreign exchange fluctuations which are not allocated to the Company’s segments for management’s internal reporting purposes | |||||||||||||
[4] | Revenue, net for “Others” primarily represents the impact of foreign exchange fluctuations, which is not allocated to the Company’s three segments for management’s internal reporting purposes. AOI for Others primarily represents government incentives and the impact of foreign exchange fluctuations which are not allocated to the Company’s segments for management’s internal reporting purposes | |||||||||||||
[5] | Includes $10,524 toward the accelerated charge of a contract cost asset relating to a wealth management platform used in the Company’s BCMI segment that the Company no longer plans to leverage beyond its current scope. If this charge had been recorded in the BCMI segment in the year ended December 31, 2019, AOI for the Company’s BCMI segment in 2019 would have been $105,474, with a corresponding increase in AOI of “Others” to $53,723. |
Segment Reporting - Revenues _2
Segment Reporting - Revenues and Adjusted Income from Operations by Reportable Segments (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Wealth Management Platform | |
Segment Reporting Information [Line Items] | |
Accelerated charge of contract cost asset | $ 10,524 |
BCMI | |
Segment Reporting Information [Line Items] | |
Adjusted income from operations net of accelerated charge of contract cost asset | 105,474 |
Others | |
Segment Reporting Information [Line Items] | |
Adjusted income from operations before accelerated charge of contract cost asset | $ 53,723 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues for Service Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 940,739 | $ 888,799 | $ 881,799 | $ 809,206 | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 3,520,543 | $ 3,000,790 | $ 2,736,929 | [1] |
Business process outsourcing | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 2,974,212 | 2,502,806 | 2,264,335 | |||||||||
Information technology services | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 546,331 | $ 497,984 | $ 472,594 | |||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues from Geographic Areas Based on Location of Service Delivery Centers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 940,739 | $ 888,799 | $ 881,799 | $ 809,206 | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 3,520,543 | $ 3,000,790 | $ 2,736,929 | [1] |
India | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 1,890,897 | 1,739,455 | 1,712,783 | |||||||||
Asia, other than India | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 356,726 | 327,462 | 286,338 | |||||||||
North and Latin America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 863,748 | 641,716 | 455,059 | |||||||||
Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 409,172 | $ 292,157 | $ 282,749 | |||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Segment Reporting - Property, P
Segment Reporting - Property, Plant and Equipment, Net by Geographic Areas (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 254,035 | $ 212,715 |
India | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 161,227 | 130,824 |
Asia, other than India | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 17,212 | 14,866 |
North and Latin America | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 58,499 | 46,763 |
Europe | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 17,097 | $ 20,262 |
Net Revenues - Net Revenues Dis
Net Revenues - Net Revenues Disaggregated by Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 940,739 | $ 888,799 | $ 881,799 | $ 809,206 | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 3,520,543 | $ 3,000,790 | $ 2,736,929 | [1] |
General Electric Company | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | 478,091 | 268,210 | 269,217 | |||||||||
Global Clients | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total net revenues | $ 3,042,452 | $ 2,732,580 | $ 2,467,712 | |||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Net Revenues - Additional Infor
Net Revenues - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Revenues [Abstract] | ||||
Advance from customers, Opening balance | $ 22,892 | [1] | $ 26,266 | |
Advance from customers, Impact of opening balance offset with contract asset | 3,821 | |||
Advance from customers, Gross opening balance | 26,713 | 26,266 | ||
Advance from customers, Additions | 48,285 | 33,328 | ||
Advance from customers, Effect of business combinations | 5,950 | 273 | ||
Advance from customers, Revenue recognized | (23,614) | (32,091) | ||
Advance from customers, Currency translation adjustments | (1) | (1,063) | ||
Advance from customers, Gross closing balance | 57,333 | 26,713 | ||
Advance from customers, Impact of closing balance offset with contract asset | (12,515) | (3,821) | ||
Advance from customers, Closing balance | [1] | 44,818 | 22,892 | |
Deferred transition revenue, Opening balance | 95,648 | [1] | 101,785 | |
Deferred transition revenue, Impact of opening balance offset with contract asset | 25,604 | 21,348 | ||
Deferred transition revenue, Gross opening balance | 121,252 | 123,133 | ||
Deferred transition revenue, Additions | 101,976 | 67,838 | ||
Deferred transition revenue, Effect of business combinations | 75 | |||
Deferred transition revenue, Revenue recognized | (48,671) | (68,697) | ||
Deferred transition revenue, Currency translation adjustments | (160) | (1,097) | ||
Deferred transition revenue, Gross closing balance | 174,397 | 121,252 | ||
Deferred transition revenue, Impact of closing balance offset with contract asset | (43,289) | (25,604) | ||
Deferred transition revenue, Closing Balance | [1] | $ 131,108 | $ 95,648 | |
[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 | Dec. 31, 2019USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 175,926 |
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 | $ 97,313 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 58,820 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 17,586 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 2,207 |
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 | Dec. 31, 2019USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 175,926 |
Net Revenues - Details of Com_2
Net Revenues - Details of Company's Contract Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Revenues [Abstract] | ||||
Opening balance | $ 45,035 | [1] | $ 43,366 | |
Impact of opening balance offset with contract liabilities | 29,425 | 21,348 | ||
Gross opening balance | 74,460 | 64,714 | ||
Additions | 66,396 | 48,216 | ||
Reduction in revenue recognized | (44,706) | (38,470) | ||
Gross closing balance | 96,150 | 74,460 | ||
Impact of closing balance offset with contract liabilities | (55,804) | (29,425) | ||
Closing balance | [1] | $ 40,346 | $ 45,035 | |
[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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Opening balance | $ 160,193 | |
Closing balance | 205,498 | $ 160,193 |
Sales Incentive Programs | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Opening balance | 25,891 | 23,227 |
Closing balance | 35,366 | 25,891 |
Amortization | 17,684 | 14,788 |
Process Transition Activities | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Opening balance | 134,302 | 139,284 |
Closing balance | 170,132 | 134,302 |
Amortization | $ 70,001 | $ 70,775 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Investment in equity affiliates | $ 836 | ||
Affiliate of Significant Shareholder | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | $ 478 | 714 | $ 398 |
Non-Consolidating Affiliates | |||
Related Party Transaction [Line Items] | |||
Recognized net revenues | 5,400 | ||
Cost of revenue | 521 | 1,094 | 2,043 |
Selling, general and administrative expenses, net of recovery | 101 | 191 | 315 |
Investment in equity affiliates | 496 | ||
Charges to equity-method investment | 2,849 | ||
Investment in equity affiliates | $ 0 | 836 | |
Cost reimbursements to non-consolidating affiliates | 477 | ||
Significant Shareholder of Company | |||
Related Party Transaction [Line Items] | |||
Selling, general and administrative expenses, net of recovery | $ 30 | 57 | |
Cost reimbursements to non-consolidating affiliates | $ 127 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Other Nonoperating Income Expense [Abstract] | ||||
Government incentives | $ 3,976 | $ 36,099 | $ 26,882 | |
Other income/(expense) | 1,810 | (338) | (3,296) | |
Other Income (expense), net | $ 5,786 | $ 35,761 | $ 23,586 | [1] |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies [Line Items] | ||
Bank guarantees and letter of credits, outstanding | $ 9,585 | $ 9,487 |
Capital Addition Purchase Commitments | ||
Commitments And Contingencies [Line Items] | ||
Commitments and contingencies | $ 5,368 | $ 4,859 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Total net revenues | $ 940,739 | $ 888,799 | $ 881,799 | $ 809,206 | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 3,520,543 | $ 3,000,790 | $ 2,736,929 | |
Gross profit | 310,091 | 315,140 | 310,555 | 290,069 | 302,205 | 266,566 | 265,663 | 244,588 | 1,225,855 | 1,079,022 | 1,055,491 | |
Income from operations | 119,518 | 113,584 | 106,202 | 90,072 | 110,841 | 94,028 | 79,522 | 63,761 | 429,376 | 348,152 | 331,279 | |
Income before equity-method investment activity, net and income tax expense | 114,349 | 110,794 | 94,970 | 79,320 | 106,632 | 97,724 | 81,668 | 76,009 | 399,433 | 362,033 | 325,126 | |
Net Income | 82,198 | 88,120 | 73,722 | 60,841 | 79,147 | 73,603 | 64,574 | 63,934 | 304,881 | 281,258 | 260,841 | |
Net loss attributable to redeemable non-controlling interest | 761 | 761 | 2,270 | |||||||||
Net income attributable to Genpact Limited common shareholders | $ 82,198 | $ 88,120 | $ 73,722 | $ 60,841 | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | $ 304,881 | $ 282,019 | $ 263,111 | |
Earnings per common share attributable to Genpact Limited common shareholders | ||||||||||||
Basic | $ 0.43 | $ 0.46 | $ 0.39 | $ 0.32 | $ 0.42 | $ 0.39 | $ 0.34 | $ 0.34 | $ 1.60 | $ 1.48 | $ 1.36 | |
Diluted | $ 0.42 | $ 0.45 | $ 0.38 | $ 0.31 | $ 0.41 | $ 0.38 | $ 0.33 | $ 0.33 | $ 1.56 | $ 1.45 | $ 1.34 | |
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders | ||||||||||||
Basic | 190,083,647 | 190,599,049 | 190,163,359 | 189,451,845 | 189,724,744 | 190,024,924 | 190,132,664 | 192,816,626 | 190,074,475 | 190,674,740 | 193,864,755 | |
Diluted | 196,592,325 | 195,890,841 | 194,766,047 | 193,394,208 | 193,149,836 | 193,115,769 | 193,365,974 | 196,288,569 | 195,160,855 | 193,980,038 | 197,049,552 | |
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Feb. 06, 2020 | Feb. 07, 2019 | Feb. 12, 2018 | Feb. 28, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||||
Percentage increase in quarterly cash dividend | 13.00% | 25.00% | |||||
Planned annual dividend | $ 0.34 | $ 0.30 | $ 0.24 | ||||
Quarterly dividend declared | $ 0.085 | $ 0.075 | $ 0.06 | $ 0.34 | $ 0.30 | $ 0.24 | |
First Quarter Dividend | |||||||
Subsequent Event [Line Items] | |||||||
Dividend payment date | Mar. 20, 2019 | Mar. 21, 2018 | Mar. 28, 2017 | ||||
Dividends payable, date of record | Mar. 8, 2019 | Mar. 9, 2018 | Mar. 10, 2017 | ||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Percentage increase in quarterly cash dividend | 15.00% | ||||||
Planned annual dividend | $ 0.39 | ||||||
Subsequent Event | First Quarter Dividend | |||||||
Subsequent Event [Line Items] | |||||||
Quarterly dividend declared | $ 0.0975 | ||||||
Dividend payment date | Mar. 18, 2020 | ||||||
Dividends payable, date of record | Mar. 9, 2020 |
Guarantor Financial Informati_3
Guarantor Financial Information - Additional Information (Detail) - Genpact Luxembourg S.à r.l. - USD ($) | Nov. 30, 2019 | Mar. 31, 2017 |
3.70% Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal amount of senior notes issued | $ 350,000,000 | |
Interest rate on senior notes | 3.70% | |
3.375% Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal amount of senior notes issued | $ 400,000,000 | |
Interest rate on senior notes | 3.375% |
Guarantor Financial Informati_4
Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||||
Cash and cash equivalents | $ 467,096 | $ 368,396 | ||
Accounts receivable, net | 914,255 | 774,184 | ||
Prepaid expenses and other current assets | 170,325 | 212,477 | ||
Total current assets | 1,551,676 | 1,355,057 | ||
Property, plant and equipment, Net | 254,035 | 212,715 | ||
Operating lease right-of-use assets | 330,854 | |||
Deferred tax assets | 89,715 | 74,566 | ||
Investment in equity affiliates | 836 | |||
Intangible assets, net | 230,861 | 177,087 | ||
Goodwill | 1,574,466 | 1,393,832 | $ 1,337,122 | |
Contract cost assets | 205,498 | 160,193 | ||
Other assets | 217,079 | 155,159 | ||
Total assets | 4,454,184 | 3,529,445 | ||
Current liabilities | ||||
Short-term borrowings | 70,000 | 295,000 | ||
Current portion of long-term debt | 33,509 | 33,483 | ||
Accounts payable | 21,981 | 42,584 | ||
Income taxes payable | 43,186 | 33,895 | ||
Accrued expenses and other current liabilities | 683,871 | 571,350 | ||
Operating leases liability | 57,664 | |||
Total current liabilities | 910,211 | 976,312 | ||
Long-term debt, less current portion | 1,339,796 | 975,645 | ||
Operating leases liability | 302,100 | |||
Deferred tax liabilities | 3,990 | 8,080 | ||
Other liabilities | 208,916 | 165,226 | ||
Total liabilities | 2,765,013 | 2,125,263 | ||
Shareholders' equity | 1,689,171 | 1,404,182 | $ 1,424,044 | $ 1,286,648 |
Total liabilities and equity | 4,454,184 | 3,529,445 | ||
Eliminations | ||||
Current assets | ||||
Intercompany Accounts receivable, net | (84,803) | (89,958) | ||
Intercompany loans | (2,991,496) | (2,284,486) | ||
Intercompany other receivable | (343,734) | (203,544) | ||
Total current assets | (3,420,033) | (2,577,988) | ||
Intercompany loans | (600,000) | (600,000) | ||
Investment in subsidiaries | (4,590,544) | (4,179,210) | ||
Investment in debentures/bonds, intercompany | (594,964) | (622,312) | ||
Intercompany other receivable | (89,460) | (83,169) | ||
Total assets | (9,295,000) | (8,062,679) | ||
Current liabilities | ||||
Current portion of Intercompany loans | (2,991,496) | (2,284,486) | ||
Intercompany accounts payable | (84,803) | (89,958) | ||
Intercompany other payable | (343,734) | (203,544) | ||
Total current liabilities | (3,420,033) | (2,577,988) | ||
Intercompany other payable | (89,460) | (83,169) | ||
Intercompany loans and debenture, less current portion | (1,194,964) | (1,222,312) | ||
Total liabilities | (4,704,456) | (3,883,469) | ||
Shareholders' equity | (4,590,544) | (4,179,210) | ||
Total liabilities and equity | (9,295,000) | (8,062,679) | ||
Issuer/Subsidiary | Reportable Legal Entities | ||||
Current assets | ||||
Cash and cash equivalents | 7,435 | 12,797 | ||
Intercompany Accounts receivable, net | 84,803 | 89,958 | ||
Intercompany loans | 1,003,032 | 447,578 | ||
Intercompany other receivable | 61,456 | 33,224 | ||
Prepaid expenses and other current assets | 3,383 | 2,242 | ||
Total current assets | 1,160,109 | 585,799 | ||
Property, plant and equipment, Net | 374 | 388 | ||
Intercompany loans | 100,000 | 100,000 | ||
Investment in subsidiaries | 583,600 | 548,654 | ||
Investment in debentures/bonds, intercompany | 476,571 | 571,919 | ||
Other assets | 311 | 682 | ||
Total assets | 2,320,965 | 1,807,442 | ||
Current liabilities | ||||
Short-term borrowings | 100,000 | |||
Current portion of Intercompany loans | 232,027 | 128,572 | ||
Current portion of long-term debt | 4,963 | 4,961 | ||
Accounts payable | 1,176 | 1,636 | ||
Intercompany other payable | 56,936 | 47,844 | ||
Accrued expenses and other current liabilities | 8,062 | 5,248 | ||
Total current liabilities | 303,164 | 288,261 | ||
Long-term debt, less current portion | 833,358 | 440,665 | ||
Intercompany loans and debenture, less current portion | 500,000 | 500,000 | ||
Other liabilities | 197 | |||
Total liabilities | 1,636,522 | 1,229,123 | ||
Shareholders' equity | 684,443 | 578,319 | ||
Total liabilities and equity | 2,320,965 | 1,807,442 | ||
Parent Company | Reportable Legal Entities | ||||
Current assets | ||||
Cash and cash equivalents | 2,029 | 2,505 | ||
Intercompany loans | 12,400 | 1,300 | ||
Intercompany other receivable | 124,043 | 52,783 | ||
Prepaid expenses and other current assets | 977 | 1,278 | ||
Total current assets | 139,449 | 57,866 | ||
Investment in subsidiaries | 3,362,390 | 3,073,467 | ||
Investment in debentures/bonds, intercompany | 118,393 | 50,393 | ||
Intercompany other receivable | 89,460 | 83,169 | ||
Other assets | 85 | |||
Total assets | 3,709,777 | 3,264,895 | ||
Current liabilities | ||||
Current portion of Intercompany loans | 1,971,037 | 1,849,537 | ||
Accounts payable | 122 | 520 | ||
Intercompany other payable | 110,974 | 70,973 | ||
Accrued expenses and other current liabilities | 3,886 | 5,157 | ||
Total current liabilities | 2,086,019 | 1,926,187 | ||
Other liabilities | 217 | 154 | ||
Total liabilities | 2,086,236 | 1,926,341 | ||
Shareholders' equity | 1,623,541 | 1,338,554 | ||
Total liabilities and equity | 3,709,777 | 3,264,895 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets | ||||
Cash and cash equivalents | 457,632 | 353,094 | ||
Accounts receivable, net | 914,255 | 774,184 | ||
Intercompany loans | 1,976,064 | 1,835,608 | ||
Intercompany other receivable | 158,234 | 117,537 | ||
Prepaid expenses and other current assets | 165,965 | 208,957 | ||
Total current assets | 3,672,150 | 3,289,380 | ||
Property, plant and equipment, Net | 253,661 | 212,327 | ||
Operating lease right-of-use assets | 330,854 | |||
Intercompany loans | 500,000 | 500,000 | ||
Deferred tax assets | 89,715 | 74,566 | ||
Investment in subsidiaries | 644,554 | 557,089 | ||
Investment in equity affiliates | 836 | |||
Intangible assets, net | 230,861 | 177,087 | ||
Goodwill | 1,574,466 | 1,393,832 | ||
Contract cost assets | 205,498 | 160,193 | ||
Other assets | 216,683 | 154,477 | ||
Total assets | 7,718,442 | 6,519,787 | ||
Current liabilities | ||||
Short-term borrowings | 70,000 | 195,000 | ||
Current portion of Intercompany loans | 788,432 | 306,377 | ||
Current portion of long-term debt | 28,546 | 28,522 | ||
Accounts payable | 20,683 | 40,428 | ||
Intercompany accounts payable | 84,803 | 89,958 | ||
Income taxes payable | 43,186 | 33,895 | ||
Intercompany other payable | 175,824 | 84,727 | ||
Accrued expenses and other current liabilities | 671,923 | 560,945 | ||
Operating leases liability | 57,664 | |||
Total current liabilities | 1,941,061 | 1,339,852 | ||
Long-term debt, less current portion | 506,438 | 534,980 | ||
Operating leases liability | 302,100 | |||
Deferred tax liabilities | 3,990 | 8,080 | ||
Intercompany other payable | 89,460 | 83,169 | ||
Intercompany loans and debenture, less current portion | 694,964 | 722,312 | ||
Other liabilities | 208,699 | 164,875 | ||
Total liabilities | 3,746,711 | 2,853,268 | ||
Shareholders' equity | 3,971,731 | 3,666,519 | ||
Total liabilities and equity | $ 7,718,442 | $ 6,519,787 |
Guarantor Financial Informati_5
Guarantor Financial Information - Condensed Consolidating Statement of Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net revenues | $ 940,739 | $ 888,799 | $ 881,799 | $ 809,206 | $ 835,339 | $ 747,978 | $ 728,561 | $ 688,912 | $ 3,520,543 | $ 3,000,790 | $ 2,736,929 | [1] |
Cost of revenue | 2,294,688 | 1,921,768 | 1,681,438 | [1] | ||||||||
Gross profit | 310,091 | 315,140 | 310,555 | 290,069 | 302,205 | 266,566 | 265,663 | 244,588 | 1,225,855 | 1,079,022 | 1,055,491 | [1] |
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 794,901 | 693,865 | 689,461 | [1] | ||||||||
Amortization of acquired intangible assets | 32,612 | 38,850 | 36,412 | [1] | ||||||||
Other operating (income) expense, net | (31,034) | (1,845) | (1,661) | [1] | ||||||||
Income from operations | 119,518 | 113,584 | 106,202 | 90,072 | 110,841 | 94,028 | 79,522 | 63,761 | 429,376 | 348,152 | 331,279 | [1] |
Foreign exchange gains (losses), net | 7,729 | 15,239 | 1,996 | [1] | ||||||||
Interest income (expense), net | (43,458) | (37,119) | (31,735) | [1] | ||||||||
Other income (expense), net | 5,786 | 35,761 | 23,586 | [1] | ||||||||
Income before equity-method investment activity, net and income tax expense | 114,349 | 110,794 | 94,970 | 79,320 | 106,632 | 97,724 | 81,668 | 76,009 | 399,433 | 362,033 | 325,126 | [1] |
Gain (loss) on equity-method investment activity, net | (16) | (12) | (4,543) | [1] | ||||||||
Income before income tax expense | 399,417 | 362,021 | 320,583 | [1] | ||||||||
Income tax expense | 94,536 | 80,763 | 59,742 | [1] | ||||||||
Net income | 82,198 | 88,120 | 73,722 | 60,841 | 79,147 | 73,603 | 64,574 | 63,934 | 304,881 | 281,258 | 260,841 | [1] |
Net loss attributable to redeemable non-controlling interest | 761 | 761 | 2,270 | [1] | ||||||||
Net income attributable to Genpact Limited shareholders | $ 82,198 | $ 88,120 | $ 73,722 | $ 60,841 | $ 79,147 | $ 73,603 | $ 64,574 | $ 64,695 | 304,881 | 282,019 | 263,111 | [1] |
Eliminations | ||||||||||||
Net revenues | (59,657) | (50,356) | (46,722) | |||||||||
Gross profit | (59,657) | (50,356) | (46,722) | |||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | (59,657) | (50,422) | (69,619) | |||||||||
Income from operations | 66 | 22,897 | ||||||||||
Income before equity-method investment activity, net and income tax expense | 66 | 22,897 | ||||||||||
Gain (loss) on equity-method investment activity, net | (477,638) | (532,764) | (359,475) | |||||||||
Income before income tax expense | (477,638) | (532,698) | (336,578) | |||||||||
Net income | (477,638) | (532,698) | (336,578) | |||||||||
Net income attributable to Genpact Limited shareholders | (477,638) | (532,698) | (336,578) | |||||||||
Issuer/Subsidiary | Reportable Legal Entities | ||||||||||||
Net revenues | 59,657 | 50,356 | 46,722 | |||||||||
Gross profit | 59,657 | 50,356 | 46,722 | |||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 10,753 | 11,324 | 9,859 | |||||||||
Amortization of acquired intangible assets | 48 | |||||||||||
Other operating (income) expense, net | (17,599) | (3,412) | ||||||||||
Income from operations | 48,904 | 56,583 | 40,275 | |||||||||
Foreign exchange gains (losses), net | 613 | 449 | 3,312 | |||||||||
Interest income (expense), net | (22,356) | (16,504) | (11,375) | |||||||||
Intercompany interest income (expense), net | 76,905 | 77,857 | 47,547 | |||||||||
Other income (expense), net | 30 | 18,391 | ||||||||||
Income before equity-method investment activity, net and income tax expense | 104,096 | 118,385 | 98,150 | |||||||||
Gain (loss) on equity-method investment activity, net | 21,599 | 62,501 | (15,058) | |||||||||
Income before income tax expense | 125,695 | 180,886 | 83,092 | |||||||||
Income tax expense | 6,516 | 6,124 | 7,435 | |||||||||
Net income | 119,179 | 174,762 | 75,657 | |||||||||
Net income attributable to Genpact Limited shareholders | 119,179 | 174,762 | 75,657 | |||||||||
Parent Company | Reportable Legal Entities | ||||||||||||
Cost of revenue | 5,188 | |||||||||||
Gross profit | (5,188) | |||||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 31,475 | 23,703 | 21,076 | |||||||||
Income from operations | (31,475) | (28,891) | (21,076) | |||||||||
Foreign exchange gains (losses), net | 119 | 845 | 2 | |||||||||
Intercompany interest income (expense), net | (22,206) | (19,279) | (10,148) | |||||||||
Income before equity-method investment activity, net and income tax expense | (53,562) | (47,325) | (31,222) | |||||||||
Gain (loss) on equity-method investment activity, net | 358,443 | 346,960 | 294,333 | |||||||||
Income before income tax expense | 304,881 | 299,635 | 263,111 | |||||||||
Net income | 304,881 | 299,635 | 263,111 | |||||||||
Net income attributable to Genpact Limited shareholders | 304,881 | 299,635 | 263,111 | |||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||||
Net revenues | 3,520,543 | 3,000,790 | 2,736,929 | |||||||||
Cost of revenue | 2,294,688 | 1,916,580 | 1,681,438 | |||||||||
Gross profit | 1,225,855 | 1,084,210 | 1,055,491 | |||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 812,330 | 709,260 | 728,145 | |||||||||
Amortization of acquired intangible assets | 32,612 | 38,802 | 36,412 | |||||||||
Other operating (income) expense, net | (31,034) | 15,754 | 1,751 | |||||||||
Income from operations | 411,947 | 320,394 | 289,183 | |||||||||
Foreign exchange gains (losses), net | 6,997 | 13,945 | (1,318) | |||||||||
Interest income (expense), net | (21,102) | (20,615) | (20,360) | |||||||||
Intercompany interest income (expense), net | (54,699) | (58,578) | (37,399) | |||||||||
Other income (expense), net | 5,756 | 35,761 | 5,195 | |||||||||
Income before equity-method investment activity, net and income tax expense | 348,899 | 290,907 | 235,301 | |||||||||
Gain (loss) on equity-method investment activity, net | 97,580 | 123,291 | 75,657 | |||||||||
Income before income tax expense | 446,479 | 414,198 | 310,958 | |||||||||
Income tax expense | 88,020 | 74,639 | 52,307 | |||||||||
Net income | 358,459 | 339,559 | 258,651 | |||||||||
Net loss attributable to redeemable non-controlling interest | 761 | 2,270 | ||||||||||
Net income attributable to Genpact Limited shareholders | $ 358,459 | $ 340,320 | $ 260,921 | |||||||||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Guarantor Financial Informati_6
Guarantor Financial Information - Condensed Consolidating Statement of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net income (loss) | $ 304,881 | $ 282,019 | $ 263,111 | ||
Other comprehensive income: | |||||
Currency translation adjustments | (20,297) | (109,656) | 93,871 | ||
Net income (loss) on cash flow hedging derivatives, net of taxes | 2,343 | (46,293) | 12,611 | ||
Retirement benefits, net of taxes | (6,542) | 1,454 | (3,787) | ||
Other comprehensive income (loss) | (24,496) | (154,495) | 102,695 | ||
Comprehensive income (loss) | 280,385 | 127,524 | 365,806 | ||
Redeemable non-controlling interest, Net income (loss) | $ (761) | (761) | (2,270) | [1] | |
Redeemable non-controlling interest, Other comprehensive income: | |||||
Redeemable non-controlling interest, Currency translation adjustments | (424) | (341) | |||
Redeemable non-controlling interest, Other comprehensive income (loss) | (424) | (341) | |||
Redeemable non-controlling interest, Comprehensive income (loss) | (1,185) | (2,611) | |||
Eliminations | |||||
Net income (loss) | (477,638) | (532,698) | (336,578) | ||
Other comprehensive income: | |||||
Currency translation adjustments | 30,376 | 181,727 | (168,587) | ||
Net income (loss) on cash flow hedging derivatives, net of taxes | (3,827) | 45,795 | (22,399) | ||
Retirement benefits, net of taxes | 6,991 | (1,264) | 3,312 | ||
Other comprehensive income (loss) | 33,540 | 226,258 | (187,674) | ||
Comprehensive income (loss) | (444,098) | (306,440) | (524,252) | ||
Issuer/Subsidiary | Reportable Legal Entities | |||||
Net income (loss) | 119,179 | 174,762 | 75,657 | ||
Other comprehensive income: | |||||
Currency translation adjustments | (10,079) | (72,071) | 74,716 | ||
Net income (loss) on cash flow hedging derivatives, net of taxes | 1,484 | 498 | 9,788 | ||
Retirement benefits, net of taxes | (449) | (190) | 475 | ||
Other comprehensive income (loss) | (9,044) | (71,763) | 84,979 | ||
Comprehensive income (loss) | 110,135 | 102,999 | 160,636 | ||
Parent Company | Reportable Legal Entities | |||||
Net income (loss) | 304,881 | 299,635 | 263,111 | ||
Other comprehensive income: | |||||
Currency translation adjustments | (20,297) | (109,656) | 93,871 | ||
Net income (loss) on cash flow hedging derivatives, net of taxes | 2,343 | (46,293) | 12,611 | ||
Retirement benefits, net of taxes | (6,542) | 1,454 | (3,787) | ||
Other comprehensive income (loss) | (24,496) | (154,495) | 102,695 | ||
Comprehensive income (loss) | 280,385 | 145,140 | 365,806 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||
Net income (loss) | 358,459 | 340,320 | 260,921 | ||
Other comprehensive income: | |||||
Currency translation adjustments | (20,297) | (109,656) | 93,871 | ||
Net income (loss) on cash flow hedging derivatives, net of taxes | 2,343 | (46,293) | 12,611 | ||
Retirement benefits, net of taxes | (6,542) | 1,454 | (3,787) | ||
Other comprehensive income (loss) | (24,496) | (154,495) | 102,695 | ||
Comprehensive income (loss) | $ 333,963 | 185,825 | 363,616 | ||
Redeemable non-controlling interest, Net income (loss) | $ (761) | $ (2,270) | |||
[1] | Cost of revenue, selling, general and administrative expenses, other income (expense) and income from operations for the year ended December 31, 2017 have been restated due to the adoption of ASU No. 2017-07 with effect from January 1, 2018. The impact of such restatement is not material to the Company’s consolidated results of operations, cash flows, financial position and disclosures. |
Guarantor Financial Informati_7
Guarantor Financial Information - Condensed Consolidating Cash Flow (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net cash (used for) provided by operating activities | $ 427,888 | $ 339,511 | $ 359,078 |
Investing activities | |||
Purchase of property, plant and equipment | (74,927) | (84,978) | (57,231) |
Payment for internally generated intangible assets (including intangibles under development) | (33,834) | (75,439) | (16,441) |
Proceeds from sale of property, plant and equipment | 1,750 | 668 | 1,738 |
Proceeds from sale of equity affiliates | 2,168 | ||
Investment in equity affiliates | (496) | ||
Payment for business acquisitions, net of cash acquired | (252,276) | (111,571) | (284,822) |
Proceeds from divestiture of business, net of cash divested | (4,738) | ||
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Net cash used for investing activities | (357,119) | (276,050) | (361,990) |
Financing activities | |||
Repayment of capital/finance lease obligations | (7,380) | (2,395) | (2,708) |
Payment of debt issuance costs | (2,317) | (4,293) | (2,630) |
Proceeds from long-term debt | 400,000 | 129,186 | 350,000 |
Repayment of long-term debt | (34,000) | (166,186) | (40,000) |
Proceeds from short-term borrowings | 400,000 | 250,000 | 295,000 |
Repayment of short-term borrowings | (625,000) | (125,000) | (285,000) |
Proceeds from issuance of common shares under stock-based compensation plans | 19,670 | 14,034 | 15,528 |
Payment for net settlement of stock-based awards | (3,850) | (15,919) | (10,296) |
Payment of earn-out/deferred consideration | (12,790) | (3,356) | (6,219) |
Dividend paid | (64,671) | (57,102) | (46,686) |
Payment for stock repurchased and retired | (30,000) | (154,058) | (219,784) |
Payment for expenses related to stock repurchase | (15) | (98) | (16) |
Net cash provided by/(used for) financing activities | 39,647 | (135,187) | 47,189 |
Effect of exchange rate changes | (11,716) | (64,346) | 37,568 |
Net increase (decrease) in cash and cash equivalents | 110,416 | (71,726) | 44,277 |
Cash and cash equivalents at the beginning of the period | 368,396 | 504,468 | 422,623 |
Cash and cash equivalents at the end of the period | 467,096 | 368,396 | 504,468 |
Eliminations | |||
Operating activities | |||
Net cash (used for) provided by operating activities | 662,010 | 569,096 | 171,453 |
Investing activities | |||
Investment in subsidiaries | 10,050 | 97,730 | (47,489) |
Payment for Purchase of bonds, intercompany | 103,100 | ||
Proceeds from redemption of debentures/bonds, intercompany | (121,918) | ||
Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany | (41,367) | ||
Net cash used for investing activities | (8,768) | 56,363 | (47,489) |
Financing activities | |||
Proceeds from intercompany loans | (754,322) | (814,867) | (263,886) |
Repayment of intercompany loans | 47,312 | 245,771 | 115,328 |
Proceeds from issuance of common shares, intercompany | (10,050) | (113,954) | |
Dividend paid | 45,000 | 16,224 | |
Change in amounts due from/ due to consolidated affiliates | 24,594 | ||
Proceeds from issuance of bonds, intercompany | (103,100) | ||
Repayment of debentures/bonds, intercompany | 121,918 | ||
Payment for redemption of debentures/(proceeds) from issuance of bonds, intercompany | 41,367 | ||
Net cash provided by/(used for) financing activities | (653,242) | (625,459) | (123,964) |
Issuer/Subsidiary | Reportable Legal Entities | |||
Operating activities | |||
Net cash (used for) provided by operating activities | (476,680) | (266,889) | (315,877) |
Investing activities | |||
Investment in equity affiliates | (523) | ||
Investment in subsidiaries | (10,050) | (97,730) | (3,638) |
Proceeds from redemption of debentures/bonds, intercompany | 86,818 | ||
Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany | 91,760 | ||
Net cash used for investing activities | 76,768 | (5,970) | (4,161) |
Financing activities | |||
Payment of debt issuance costs | (2,317) | (2,630) | |
Proceeds from long-term debt | 400,000 | 100,000 | 350,000 |
Repayment of long-term debt | (5,000) | (2,450) | |
Proceeds from short-term borrowings | 100,000 | ||
Repayment of short-term borrowings | (100,000) | ||
Proceeds from intercompany loans | 108,455 | 172,047 | |
Repayment of intercompany loans | (5,000) | (81,479) | (35,000) |
Payment of earn-out/deferred consideration | (1,797) | ||
Net cash provided by/(used for) financing activities | 396,138 | 286,321 | 312,370 |
Effect of exchange rate changes | (1,588) | (5,172) | 960 |
Net increase (decrease) in cash and cash equivalents | (3,774) | 13,462 | (7,668) |
Cash and cash equivalents at the beginning of the period | 12,797 | 4,507 | 11,215 |
Cash and cash equivalents at the end of the period | 7,435 | 12,797 | 4,507 |
Parent Company | Reportable Legal Entities | |||
Operating activities | |||
Net cash (used for) provided by operating activities | 24,890 | 11,905 | (8,345) |
Investing activities | |||
Payment for Purchase of bonds, intercompany | (103,100) | ||
Proceeds from redemption of debentures/bonds, intercompany | 35,100 | ||
Proceeds from redemption of debentures/(payments) for issuance of bonds, intercompany | (50,393) | ||
Net cash used for investing activities | (68,000) | (50,393) | |
Financing activities | |||
Proceeds from intercompany loans | 128,500 | 308,500 | 263,886 |
Repayment of intercompany loans | (7,000) | (56,500) | |
Proceeds from issuance of common shares under stock-based compensation plans | 19,670 | 14,034 | 15,528 |
Payment for net settlement of stock-based awards | (3,850) | (15,919) | (10,296) |
Dividend paid | (64,671) | (57,102) | (46,686) |
Payment for stock repurchased and retired | (30,000) | (154,058) | (219,784) |
Payment for expenses related to stock repurchase | (15) | (98) | (16) |
Net cash provided by/(used for) financing activities | 42,634 | 38,857 | 2,632 |
Net increase (decrease) in cash and cash equivalents | (476) | 369 | (5,714) |
Cash and cash equivalents at the beginning of the period | 2,505 | 2,136 | 7,849 |
Cash and cash equivalents at the end of the period | 2,029 | 2,505 | 2,136 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Operating activities | |||
Net cash (used for) provided by operating activities | 217,668 | 25,399 | 511,847 |
Investing activities | |||
Purchase of property, plant and equipment | (74,927) | (84,978) | (57,231) |
Payment for internally generated intangible assets (including intangibles under development) | (33,834) | (75,439) | (16,441) |
Proceeds from sale of property, plant and equipment | 1,750 | 668 | 1,738 |
Proceeds from sale of equity affiliates | 2,168 | ||
Investment in equity affiliates | 27 | ||
Investment in subsidiaries | 51,127 | ||
Payment for business acquisitions, net of cash acquired | (252,276) | (111,571) | (284,822) |
Proceeds from divestiture of business, net of cash divested | (4,738) | ||
Payment for purchase of redeemable non-controlling interest | (4,730) | ||
Net cash used for investing activities | (357,119) | (276,050) | (310,340) |
Financing activities | |||
Repayment of capital/finance lease obligations | (7,380) | (2,395) | (2,708) |
Payment of debt issuance costs | (4,293) | ||
Proceeds from long-term debt | 29,186 | ||
Repayment of long-term debt | (29,000) | (163,736) | (40,000) |
Proceeds from short-term borrowings | 400,000 | 150,000 | 295,000 |
Repayment of short-term borrowings | (525,000) | (125,000) | (285,000) |
Proceeds from intercompany loans | 517,367 | 334,320 | |
Repayment of intercompany loans | (35,312) | (107,792) | (80,328) |
Proceeds from issuance of common shares, intercompany | 10,050 | 113,954 | |
Payment of earn-out/deferred consideration | (12,790) | (1,559) | (6,219) |
Dividend paid | (45,000) | (16,224) | |
Change in amounts due from/ due to consolidated affiliates | (24,594) | ||
Proceeds from issuance of bonds, intercompany | 103,100 | ||
Repayment of debentures/bonds, intercompany | (121,918) | ||
Payment for redemption of debentures/(proceeds) from issuance of bonds, intercompany | (41,367) | ||
Net cash provided by/(used for) financing activities | 254,117 | 165,094 | (143,849) |
Effect of exchange rate changes | (10,128) | (59,174) | 36,608 |
Net increase (decrease) in cash and cash equivalents | 114,666 | (85,557) | 57,658 |
Cash and cash equivalents at the beginning of the period | 353,094 | 497,825 | 403,559 |
Cash and cash equivalents at the end of the period | $ 457,632 | $ 353,094 | $ 497,825 |