Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | G | |
Entity Registrant Name | GENPACT LIMITED | |
Entity Central Index Key | 0001398659 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 189,347,684 | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | D0 | |
Title of 12(b) Security | Common shares, par value $0.01 per share | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-33626 | |
Entity Tax Identification Number | 98-0533350 | |
Entity Address, Address Line One | Victoria Place, 5th Floor | |
Entity Address, Address Line Two | 31 Victoria Street | |
Entity Address, City or Town | Hamilton | |
Entity Address, Country | BM | |
Entity Address, Postal Zip Code | HM 10 | |
City Area Code | 441 | |
Local Phone Number | 294-8000 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 803,399 | $ 467,096 |
Accounts receivable, net of reserve for doubtful receivables of $29,969 and allowance for credit losses of $25,552 as of December 31, 2019 and September 30, 2020, respectively | 859,070 | 914,255 |
Prepaid expenses and other current assets | 216,244 | 170,325 |
Total current assets | 1,878,713 | 1,551,676 |
Property, plant and equipment, net | 237,473 | 254,035 |
Operating lease right-of-use assets | 331,149 | 330,854 |
Deferred tax assets | 105,160 | 89,715 |
Intangible assets, net | 176,908 | 230,861 |
Goodwill | 1,567,603 | 1,574,466 |
Contract cost assets | 211,794 | 205,498 |
Other assets, net of reserve for doubtful assets of $0 and allowance for credit losses of $2,566 as of December 31, 2019 and September 30, 2020, respectively | 294,838 | 217,079 |
Total assets | 4,803,638 | 4,454,184 |
Current liabilities | ||
Short-term borrowings | 245,000 | 70,000 |
Current portion of long-term debt | 33,530 | 33,509 |
Accounts payable | 30,754 | 21,981 |
Income taxes payable | 94,744 | 43,186 |
Accrued expenses and other current liabilities | 677,430 | 683,871 |
Operating leases liability | 65,192 | 57,664 |
Total current liabilities | 1,146,650 | 910,211 |
Long-term debt, less current portion | 1,315,477 | 1,339,796 |
Operating leases liability | 305,074 | 302,100 |
Deferred tax liabilities | 3,236 | 3,990 |
Other liabilities | 256,021 | 208,916 |
Total liabilities | 3,026,458 | 2,765,013 |
Shareholders' equity | ||
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued | ||
Common shares, $0.01 par value, 500,000,000 authorized, 190,118,181 and 190,403,947 issued and outstanding as of December 31, 2019 and September 30, 2020, respectively | 1,900 | 1,896 |
Additional paid-in capital | 1,612,084 | 1,570,575 |
Retained earnings | 748,621 | 648,656 |
Accumulated other comprehensive income (loss) | (585,425) | (531,956) |
Total equity | 1,777,180 | 1,689,171 |
Commitments and contingencies | ||
Total liabilities and equity | $ 4,803,638 | $ 4,454,184 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 190,403,947 | 190,118,181 |
Common shares, outstanding | 190,403,947 | 190,118,181 |
Allowance for credit losses | $ 25,552 | $ 29,969 |
Allowance for credit losses, other assets | $ 2,566 | $ 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net revenues | $ 935,523 | $ 888,799 | $ 2,758,809 | $ 2,579,804 |
Cost of revenue | 605,829 | 573,659 | 1,804,492 | 1,664,040 |
Gross profit | 329,694 | 315,140 | 954,317 | 915,764 |
Operating expenses: | ||||
Selling, general and administrative expenses | 198,335 | 194,537 | 581,989 | 582,251 |
Amortization of acquired intangible assets | 10,235 | 6,960 | 31,673 | 23,565 |
Other operating (income) expense, net | (3,518) | 59 | 14,991 | 90 |
Income from operations | 124,642 | 113,584 | 325,664 | 309,858 |
Foreign exchange gains (losses), net | (2,402) | 6,727 | 11,611 | 3,646 |
Interest income (expense), net | (12,757) | (10,221) | (38,072) | (33,487) |
Other income (expense), net | 960 | 704 | 946 | 5,067 |
Income before equity-method investment activity, net and income tax expense | 110,443 | 110,794 | 300,149 | 285,084 |
Equity-method investment activity, net | (5) | (16) | ||
Income before income tax expense | 110,443 | 110,789 | 300,149 | 285,068 |
Income tax expense | 25,008 | 22,669 | 66,855 | 62,385 |
Net income | $ 85,435 | $ 88,120 | $ 233,294 | $ 222,683 |
Earnings per common share | ||||
Basic | $ 0.45 | $ 0.46 | $ 1.22 | $ 1.17 |
Diluted | $ 0.43 | $ 0.45 | $ 1.19 | $ 1.14 |
Weighted average number of common shares used in computing earnings per common share | ||||
Basic | 190,949,108 | 190,599,049 | 190,705,671 | 190,071,418 |
Diluted | 196,655,140 | 195,890,841 | 196,100,067 | 194,683,699 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 85,435 | $ 88,120 | $ 233,294 | $ 222,683 |
Other comprehensive income: | ||||
Currency translation adjustments | 36,106 | (39,404) | (36,959) | (24,677) |
Net income (loss) on cash flow hedging derivatives, net of taxes | 19,856 | (11,360) | (18,893) | 1,683 |
Retirement benefits, net of taxes | 301 | 346 | 2,383 | 773 |
Other comprehensive income (loss) | 56,263 | (50,418) | (53,469) | (22,221) |
Comprehensive income (loss) | $ 141,698 | $ 37,702 | $ 179,825 | $ 200,462 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common shares | Common sharesCumulative Effect, Period of Adoption, Adjustment | Additional Paid- in Capital | Additional Paid- in CapitalCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance, value at Dec. 31, 2018 | $ 1,404,182 | $ 1,888 | $ 1,471,301 | $ 438,453 | $ (507,460) | |||||
Beginning balance (in shares) at Dec. 31, 2018 | 189,346,101 | |||||||||
Issuance of common shares on exercise of options | 9,505 | $ 6 | 9,499 | |||||||
Issuance of common shares on exercise of options (in shares) | 622,494 | |||||||||
Issuance of common shares under the employee stock purchase plan | 6,444 | $ 2 | 6,442 | |||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 195,221 | |||||||||
Net settlement on vesting of restricted share units | (3,788) | $ 6 | (3,794) | |||||||
Net settlement on vesting of restricted share units (in shares) | 557,917 | |||||||||
Stock repurchased and retired | $ (23,901) | $ (6) | (23,895) | |||||||
Stock repurchased and retired, shares | (608,285) | (608,285) | ||||||||
Expenses related to stock purchase | $ (12) | (12) | ||||||||
Stock-based compensation expense | 61,307 | 61,307 | ||||||||
Comprehensive income (loss): | ||||||||||
Net income (loss) | 222,683 | 222,683 | ||||||||
Other comprehensive income (loss) | (22,221) | (22,221) | ||||||||
Dividend | (48,515) | (48,515) | ||||||||
End balance, value at Sep. 30, 2019 | 1,605,684 | $ 1,896 | 1,544,755 | 588,714 | (529,681) | |||||
End balance (in shares) at Sep. 30, 2019 | 190,113,448 | |||||||||
Beginning balance, value at Jun. 30, 2019 | 1,583,370 | $ 1,899 | 1,520,025 | 540,709 | (479,263) | |||||
Beginning balance (in shares) at Jun. 30, 2019 | 190,486,041 | |||||||||
Issuance of common shares on exercise of options | 2,228 | $ 1 | 2,227 | |||||||
Issuance of common shares on exercise of options (in shares) | 115,997 | |||||||||
Issuance of common shares under the employee stock purchase plan | 2,244 | $ 1 | 2,243 | |||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 60,875 | |||||||||
Net settlement on vesting of restricted share units | (1,059) | $ 1 | (1,060) | |||||||
Net settlement on vesting of restricted share units (in shares) | 58,820 | |||||||||
Stock repurchased and retired | (23,901) | $ (6) | (23,895) | |||||||
Stock repurchased and retired, shares | (608,285) | |||||||||
Expenses related to stock purchase | (12) | (12) | ||||||||
Stock-based compensation expense | 21,320 | 21,320 | ||||||||
Comprehensive income (loss): | ||||||||||
Net income (loss) | 88,120 | 88,120 | ||||||||
Other comprehensive income (loss) | (50,418) | (50,418) | ||||||||
Dividend | (16,208) | (16,208) | ||||||||
End balance, value at Sep. 30, 2019 | 1,605,684 | $ 1,896 | 1,544,755 | 588,714 | (529,681) | |||||
End balance (in shares) at Sep. 30, 2019 | 190,113,448 | |||||||||
Beginning balance, value at Dec. 31, 2019 | $ 1,689,171 | $ 1,896 | 1,570,575 | 648,656 | (531,956) | |||||
Beginning balance, value (ASC 326) at Dec. 31, 2019 | $ (3,984) | $ (3,984) | ||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 190,118,181 | 190,118,181 | 190,118,181 | |||||||
Adjusted balance, value at Dec. 31, 2019 | $ 1,685,187 | $ 1,896 | $ 1,570,575 | $ 644,672 | $ (531,956) | |||||
Issuance of common shares on exercise of options | $ 10,869 | $ 6 | 10,863 | |||||||
Issuance of common shares on exercise of options (in shares) | 542,634 | 542,634 | ||||||||
Issuance of common shares under the employee stock purchase plan | $ 8,392 | $ 3 | 8,389 | |||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 241,953 | |||||||||
Net settlement on vesting of restricted share units | (7,721) | $ 4 | (7,725) | |||||||
Net settlement on vesting of restricted share units (in shares) | 380,625 | |||||||||
Net settlement on vesting of performance units | $ (25,827) | $ 9 | (25,836) | |||||||
Net settlement on vesting of performance units (in shares) | 902,532 | 902,532 | ||||||||
Stock repurchased and retired | $ (73,552) | $ (18) | (73,534) | |||||||
Stock repurchased and retired, shares | (1,781,978) | (1,781,978) | ||||||||
Expenses related to stock purchase | $ (36) | (36) | ||||||||
Stock-based compensation expense | 55,818 | 55,818 | ||||||||
Comprehensive income (loss): | ||||||||||
Net income (loss) | 233,294 | 233,294 | ||||||||
Other comprehensive income (loss) | (53,469) | (53,469) | ||||||||
Dividend | (55,775) | (55,775) | ||||||||
End balance, value at Sep. 30, 2020 | $ 1,777,180 | $ 1,900 | 1,612,084 | 748,621 | (585,425) | |||||
End balance (in shares) at Sep. 30, 2020 | 190,403,947 | 190,403,947 | ||||||||
Beginning balance, value at Jun. 30, 2020 | $ 1,660,614 | $ 1,903 | 1,590,017 | 710,382 | (641,688) | |||||
Beginning balance (in shares) at Jun. 30, 2020 | 190,721,373 | |||||||||
Issuance of common shares on exercise of options | 4,273 | $ 2 | 4,271 | |||||||
Issuance of common shares on exercise of options (in shares) | 203,306 | |||||||||
Issuance of common shares under the employee stock purchase plan | 2,568 | $ 1 | 2,567 | |||||||
Issuance of common shares under the employee stock purchase plan (in shares) | 67,639 | |||||||||
Net settlement on vesting of restricted share units | (4,256) | $ 2 | (4,258) | |||||||
Net settlement on vesting of restricted share units (in shares) | 151,419 | |||||||||
Stock repurchased and retired | (28,552) | $ (8) | (28,544) | |||||||
Stock repurchased and retired, shares | (739,790) | |||||||||
Expenses related to stock purchase | (15) | (15) | ||||||||
Stock-based compensation expense | 19,487 | 19,487 | ||||||||
Comprehensive income (loss): | ||||||||||
Net income (loss) | 85,435 | 85,435 | ||||||||
Other comprehensive income (loss) | 56,263 | 56,263 | ||||||||
Dividend | (18,637) | (18,637) | ||||||||
End balance, value at Sep. 30, 2020 | $ 1,777,180 | $ 1,900 | $ 1,612,084 | $ 748,621 | $ (585,425) | |||||
End balance (in shares) at Sep. 30, 2020 | 190,403,947 | 190,403,947 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | Feb. 06, 2020 | Feb. 07, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Stockholders Equity [Abstract] | ||||||||
Dividends per common share | $ 0.0975 | $ 0.085 | $ 0.098 | $ 0.085 | $ 0.085 | $ 0.293 | $ 0.255 | $ 0.075 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating activities | |||
Net income | $ 233,294 | $ 222,683 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 88,273 | 70,234 | |
Amortization of debt issuance costs (including loss on extinguishment of debt) | 1,685 | 1,288 | |
Amortization of acquired intangible assets | 31,673 | 23,565 | |
Write-down of intangible assets and property, plant and equipment | 10,647 | 3,511 | |
Reserve for doubtful receivables/allowance for credit losses | 3,226 | 7,169 | |
Unrealized loss (gain) on revaluation of foreign currency asset/liability | 6,164 | (4,862) | |
Stock-based compensation expense | 55,818 | 61,307 | |
Deferred income taxes | (9,287) | (6,946) | |
Write-down of operating lease right-of-use assets and other assets | [1] | 10,244 | |
Others, net | (1,131) | (2,605) | |
Change in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | 49,299 | (97,269) | |
Increase in prepaid expenses, other current assets, contract cost assets, operating lease right-of-use assets and other assets | (148,909) | (87,064) | |
Decrease in accounts payable | (2,646) | (20,670) | |
Increase in accrued expenses, other current liabilities, operating leases liability and other liabilities | 44,830 | 122,411 | |
Increase in income taxes payable | 52,033 | 48,567 | |
Net cash provided by operating activities | 425,213 | 341,319 | |
Investing activities | |||
Purchase of property, plant and equipment | (47,932) | (55,071) | |
Payment for internally generated intangible assets (including intangibles under development) | (8,391) | (26,261) | |
Proceeds from sale of property, plant and equipment | 447 | 1,621 | |
Payment for business acquisitions, net of cash acquired | (6,305) | ||
Net cash used for investing activities | (55,876) | (86,016) | |
Financing activities | |||
Repayment of finance lease obligations | (7,240) | (6,256) | |
Payment of debt issuance costs | (620) | ||
Repayment of long-term debt | (25,500) | (25,500) | |
Proceeds from short-term borrowings | 455,000 | 50,000 | |
Repayment of short-term borrowings | (280,000) | (100,000) | |
Proceeds from issuance of common shares under stock-based compensation plans | 19,261 | 15,949 | |
Payment for net settlement of stock-based awards | (33,157) | (3,177) | |
Payment of earn-out consideration | (12,790) | ||
Dividend paid | (55,775) | (48,515) | |
Payment for stock repurchased and retired (including expenses related to stock repurchase) | (73,588) | (23,913) | |
Net cash used for financing activities | (1,619) | (154,202) | |
Effect of exchange rate changes | (31,415) | (12,625) | |
Net increase in cash and cash equivalents | 367,718 | 101,101 | |
Cash and cash equivalents at the beginning of the period | 467,096 | 368,396 | |
Cash and cash equivalents at the end of the period | 803,399 | 456,872 | |
Supplementary information | |||
Cash paid during the period for interest | 28,160 | 31,633 | |
Cash paid during the period for income taxes, net of refund | $ 131,456 | $ 65,562 | |
[1] | *See note 27 for additional information about other operating (income) expense, net for the nine months ended September |
Organization
Organization | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization The Company is a global professional services firm that drives digitally-led innovation and runs digitally-enabled intelligent operations for its clients, guided by its experience running thousands of processes for hundreds of Fortune Global 500 clients. The Company has more than 96,300 employees serving clients in key industry verticals from more than 30 countries. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2020 | |
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) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. (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, intangible assets and goodwill, revenue recognition, allowance for credit losses, 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, and management has made assumptions about the possible effects of the novel coronavirus (“COVID-19”) pandemic on critical and significant accounting estimates. Although these estimates and assumptions 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 Accounting Standard Codification (“ASC”) Topic 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 re-measured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under selling, general and administrative expenses. Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally are carried at cost less accumulated amortization and accumulated impairment loss based on their estimated useful lives as follows: Customer-related intangible assets 1-11 years Marketing-related intangible assets 2-10 years Technology-related intangible assets 2-8 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 towards 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 are amortized on a straight-line basis when placed into service over the estimated useful lives of the software and technology. 2. Summary of significant accounting policies (Continued) 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. (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 17% (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 current expected credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses which are adjusted to current market conditions and a reasonable and supportable forecast. 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 customers. (f) Revenue Recognition The Company derives its revenue primarily from business process management services, 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 the transfer of control of promised services to its 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 services rendered between the last billing date and the balance sheet date. The Company’s contracts with its 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. 2. Summary of significant accounting policies (Continued) Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and 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. The Company enters into multiple-element revenue arrangements in which a customer may purchase a combination of products or services. 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 customer. 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 fees 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 the customer 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 its 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 judgement. Judgement 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. 2. Summary of significant accounting policies (Continued) (g) Leases 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 Topic 840, Lease Classification, and were not reassessed on adoption of ASC Topic 842, Leases, on January 1, 2019. 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 right-of-use (ROU) asset and a lease liability are recognized. The lease liability represents the present value of the lease payments under the lease. Lease liabilities are initially measured at the present value of the lease payments not yet paid, discounted using the discount rate for the lease at the 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 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. The Company has 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 commencement date, have a lease term of 12 months or less and do not contain a purchase option (“short-term leases”). 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. Under certain of its leases, the Company has a renewal and termination option to lease assets for additional terms between one and fifteen years. The Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew or terminate the lease. The Company considers all relevant factors that create an economic incentive for it to exercise the renewal or termination option. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within the Company’s control and affects its ability to exercise (or not to exercise) the option to renew or terminate. The Company has applied an incremental borrowing rate for the purpose of computing lease liabilities based on the remaining lease term and the rates prevailing in the jurisdictions where leases were executed. 2. Summary of significant accounting policies (Continued) For the nine months ended September 30, 2020, (h) Cost of revenue Cost of revenue primarily consists of salaries and benefits (including stock-based compensation), recruitment, training and related costs of employees who are directly responsible for the performance of services for clients, their supervisors and certain support personnel who may be dedicated to a particular client or a set of processes. It also includes operational expenses, which consist of facilities maintenance expenses, travel and living expenses, rent, IT expenses, and consulting and certain other expenses. Consulting charges represent the cost of consultants and contract resources with specialized skills who are directly responsible for the performance of services for clients and travel and other billable costs related to the Company’s clients. It also includes depreciation of property, plant and equipment, and amortization of intangible and ROU assets which are directly related to providing services that generate revenue. (i) Selling, general and administrative expenses Selling, general and administrative (SG&A) expenses consist of expenses relating to salaries and benefits (including stock-based compensation) as well as costs related to recruitment, training and retention of senior management and other support personnel in enabling functions such as human resources, finance, legal, marketing, sales and sales support, and other support personnel. The operational costs component of SG&A expenses also includes travel and living costs for such personnel. SG&A expenses also include acquisition-related costs, legal and professional fees (which represent the costs of third party legal, tax, accounting and other advisors), investment in research and development, digital technology, advanced automation and robotics, and an allowance for credit losses. It also includes depreciation of property, plant and equipment, and amortization of intangibles and ROU assets other than those included in cost of revenue. (j) 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 ASC Topic 326, Financial Instruments—Credit Losses (“Topic 326”), effective January 1, 2020. As a result of adoption of ASC 326, the Company recognized an incremental allowance for credit losses on its accounts receivable and deferred billings of $4,185 and $734, respectively, resulting in an increase in deferred tax assets of $935 with a corresponding decrease in retained earnings of $3,984, net of deferred tax. 2. Summary of significant accounting policies (Continued) Credit losses (effective January 1, 2020) The Company recognizes an allowance for credit losses for all debt instruments other than those held at fair value through profit or loss. The Company pools its accounts receivable based on similar risk characteristics in estimating expected credit losses. Credit losses for accounts receivable are based on the roll-rate method, and the Company recognizes a loss allowance based on lifetime expected credit losses at each reporting date. The Company has established a provision matrix based on historical credit loss experience, adjusted for forward-looking factors and the economic environment. The Company believes the most relevant forward-looking factors are economic environment, gross domestic product, inflation rates and unemployment rates for each of the countries in which the Company or its customers operate, and accordingly the Company adjusts historical loss rates based on expected changes in these factors. At every reporting date, observed historical default rates are updated to reflect changes in the Company’s forward-looking estimates. Credit losses for other financial assets including deferred billings are based on the discounted cash flow (“DCF”) method. Under the DCF method, the allowance for credit losses reflects the difference between the contractual cash flows due in accordance with the contract and the present value of the cash flows expected to be collected. The expected cash flows are discounted at the effective interest rate of the financial asset. Such allowances are based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments based on the Company’s expectation as of the balance sheet date. A financial asset is written off when it is deemed uncollectable and there is no reasonable expectation of recovering the contractual cash flows. Expected recoveries of amounts previously written off, not to exceed the aggregate amounts previously written off, are included in determining the allowance at each reporting period. Credit losses are presented as a credit loss expense within “Selling, general and administrative expenses.” Subsequent recoveries of amounts previously written off are credited against the same line item. Impact on consolidated financial statements The following table summarizes the impact of the Company’s adoption of Topic 326 on its consolidated financial statements as of January 1, 2020. As reported December 31, 2019 Adoption of Topic 326 Increase/(Decrease) Balance as of January 1, 2020 Accounts receivable, net 914,255 (4,185 ) 910,070 Other assets 217,079 (734)* 216,345 Deferred tax assets 89,715 935 90,650 Retained earnings 648,656 (3,984 ) 644,672 * Represents the expected (k) 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 842, Leases, with a date of initial application of January 1, 2019, using the modified retrospective approach. The significant accounting policy for leases is outlined in section (g) above. 2. Summary of significant accounting policies (Continued) In March 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Update (“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 applications of the 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 apply 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 adopted this ASU and concluded that it does not have any impact on its consolidated results of operations, cash flows, financial position and or disclosures. In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections. This ASU amends various SEC paragraphs pursuant to the issuance of SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization. The S-X Rule 3-04 requires the presentation of changes in stockholders’ equity in the form of a reconciliation of the beginning balance to the ending balance for each period for which 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/or 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 became 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 adopted ASU 2016-13, ASU 2019-05 and ASU 2019-11 beginning January 1, 2020, including interim periods in fiscal year 2020. The cumulative impact of the adoption of these standards has been described in section (j) above. 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 assessed the impact of this ASU and concluded that it does not have any material impact on its consolidated results of operations, cash flows, financial position or 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 assessed the impact of this ASU and concluded that it does not have any material impact on its consolidated results of operations, cash flows, financial position or 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 re-measurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which foreign currency-denominated equity securities must be re-measured at historical exchange rates. The ASU is effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020. The Company assessed the impact of this ASU and concluded that it does not have any 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 |
Business acquisitions
Business acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
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 $18,162 which is outstanding as of September 30, 2020. 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. 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 Banking, Capital Market and Insurance (“BCMI”) segment in the amount of $17,525, to the Consumer Goods, Retail, Life Sciences and Healthcare (“CGRLH”) segment in the amount of $44,365 and to the High Tech, Manufacturing and Services (“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 September 30, 2020. 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. 3. Business acquisitions (Continued) 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, which has been allocated to the Company’s BCMI reporting segment and is deductible for income tax purposes. The goodwill primarily 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. |
Cash and cash equivalents
Cash and cash equivalents | 9 Months Ended |
Sep. 30, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Cash and cash equivalents | 4. Cash and cash equivalents As of December 31, As of September 30, 2019 2020 Cash and other bank balances 467,096 803,399 Total $ 467,096 $ 803,399 |
Accounts receivable, net of all
Accounts receivable, net of allowance for credit losses | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Accounts receivable, net of allowance for credit losses | 5. Accounts receivable, net of allowance for credit losses Accounts receivable were $944,224 and $884,622, reserve for doubtful receivables was $29,969 and allowance for credit losses was $25,552, resulting in net accounts receivable balances of $914,255 and $ 859,07o The following table provides details of the Company’s allowance for credit losses: Year ended December 31, 2019 Nine months ended September 30, 2020 Opening balance as of January 1 $ 23,960 $ 29,969 Transition period adjustment on accounts receivables (through retained earnings) pursuant to adoption of ASC 326 — 4,185 Adjusted balance as of January 1 $ 23,960 $ 34,154 Additions due to acquisitions 1,004 — Additions charged/reversal released to cost and expense $ 7,443 $ 1,394 Deductions/effect of exchange rate fluctuations (2,438 ) (9,996 ) Closing balance $ 29,969 $ 25,552 In addition, deferred billings were $7,858 and $23,755, reserve for doubtful assets was $0 and allowance for credit losses was $2,566, resulting in net deferred billings balances of $7,858 and $21,189 as of December 31, 2019 and September 30, 2020, respectively. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 and September 30, 2020: 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 As of September 30, 2020 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) $ 20,687 $ — $ 20,687 $ — Deferred compensation plan assets (Note a, e) 23,680 — — 23,680 Total $ 44,367 $ — $ 20,687 $ 23,680 Liabilities Earn out consideration (Note b, d) $ 18,162 $ — $ — $ 18,162 Derivative instruments (Note b, c) 45,790 — 45,790 — Deferred compensation plan liability (Note b, f) 23,252 — — 23,252 Total $ 87,204 $ — $ 45,790 $ 41,414 (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 6. Fair value measurements (Continued) The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the three and nine months ended September 30, 2019 and 2020: Three months ended Nine months ended September 30, September 30, 2019 2020 2019 2020 Opening balance $ 3,463 $ 21,935 $ 17,073 $ 22,184 Payments made on earn-out consideration (Note a) (3,000 ) — (17,098 ) — Change in fair value of earn out consideration (Note b) — (3,773 ) — (4,452 ) Others (Note c) 14 — 502 430 Closing balance $ 477 $ 18,162 $ 477 $ 18,162 (a) Includes an interest payment on earn-out consideration in excess of the acquisition date fair value, which is included in “cash flows from operating activities” amounting to $680 and $0 for the three months ended September 30, 2019 and 2020, respectively, and $4,308 and $0 for the nine months ended September 30, 2019 and 2020, respectively. ( b ) Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. ( c ) “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 three and nine months ended September 30, 2019 and 2020: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Opening balance $ 9,141 $ 21,837 $ 1,613 $ 11,208 Additions (net of redemption) 579 639 7,564 10,500 Change in fair value of deferred compensation plan assets (Note a) 186 1,204 729 1,972 Closing balance $ 9,906 $ 23,680 $ 9,906 $ 23,680 (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 three and nine months ended September 30, 2019 and 2020: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Opening balance $ 8,994 $ 21,375 $ 1,582 $ 10,943 Additions (net of redemption) 587 792 7,564 10,367 Change in fair value of deferred compensation plan liabilities (Note a) 61 1,085 496 1,942 Closing balance $ 9,642 $ 23,252 $ 9,642 23,252 (a) Changes in the fair value of deferred compensation plan liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Derivative financial instrument
Derivative financial instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | 7. Derivative financial instruments The Company is exposed to the risk of rate fluctuations on its foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows and interest rates. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities, foreign currency denominated forecasted cash flows and interest rate risk. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature during a period of up to 39 months The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: Notional principal amounts (note a) Balance sheet exposure asset (liability) (note b) As of December 31, 2019 As of September 30, 2020 As of December 31, 2019 As of September 30, 2020 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,305,000 $ 1,156,000 (5,740 ) $ (1,200 ) United States Dollars (sell) Mexican Peso (buy) — 16,500 — (239 ) United States Dollars (sell) Philippines Peso (buy) 66,600 53,100 462 1,536 Euro (sell) United States Dollars (buy) 122,337 118,678 4,135 (2,457 ) Singapore Dollars (buy) United States Dollars (sell) 10,017 10,017 38 (157 ) Euro (sell) Romanian Leu (buy) 26,918 24,633 (314 ) (190 ) Japanese Yen (sell) Chinese Renminbi (buy) 29,350 18,937 (258 ) 121 Pound Sterling (sell) United States Dollars (buy) 9,089 2,278 383 159 Australian Dollars (sell) United States Dollars (buy) 35,972 — 1,924 — United States Dollars (sell) Hungarian Font (buy) 20,500 39,000 162 (1,034 ) Hungarian Font (Sell) Euro (buy) 9,534 9,971 (157 ) 580 Australian Dollars (sell) Indian Rupees (buy) — 97,038 — (1,382 ) United States Dollars (Sell) Brazilian Real (buy) — 1,000 — (51 ) Interest rate swaps (floating to fixed) 477,604 494,993 (3,565 ) (20,789 ) (2,930 ) (25,103 ) (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. 7. Derivative financial instruments (Continued) FASB guidance on derivatives and hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with the FASB guidance on derivatives and hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items, such as receivables and intercompany borrowings, that are denominated in currencies other than the Company’s underlying functional currency. The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2019 As of September 30, 2020 As of December 31, 2019 As of September 30, 2020 Assets Prepaid expenses and other current assets $ 16,214 $ 8,424 $ 2,009 $ 6,765 Other assets $ 3,086 $ 5,498 $ — $ — Liabilities Accrued expenses and other current liabilities $ 6,152 $ 27,630 $ 814 $ 2,079 Other liabilities $ 17,273 $ 16,081 $ — $ — 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. 7. Derivative financial instruments (Continued) In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss) (“OCI”), and the related tax effects are summarized below: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Before Tax amount Tax (Expense) or Benefit* Net of tax Amount Before Tax amount Tax (Expense) or Benefit* Net of tax Amount Before Tax amount Tax (Expense) or Benefit* Net of tax Amount Before Tax amount Tax (Expense) or Benefit* Net of tax Amount Opening balance $ 11,185 $ (6,077 ) $ 5,108 $ (54,335 ) $ 9,994 $ (44,341 ) $ (2,411 ) $ (5,524 ) $ (7,935 ) $ (4,126 ) $ (1,466 ) $ (5,592 ) Net gains (losses) reclassified into statement of income on completion of hedged transactions 5,915 (1,950 ) 3,965 (3,996 ) 1,029 (2,967 ) 15,105 (5,553 ) 9,552 (4,909 ) 722 (4,187 ) Changes in fair value of effective portion of outstanding derivatives, net (9,115 ) 1,720 (7,395 ) 20,550 (3,661 ) 16,889 13,671 (2,436 ) 11,235 (30,572 ) 7,492 (23,080 ) Gain/(loss) on cash flow hedging derivatives, net (15,030 ) 3,670 (11,360 ) 24,546 (4,690 ) 19,856 (1,434 ) 3,117 1,683 (25,663 ) 6,770 (18,893 ) Closing balance $ (3,845 ) $ (2,407 ) $ (6,252 ) $ (29,789 ) $ 5,304 $ (24,485 ) $ (3,845 ) $ (2,407 ) $ (6,252 ) $ (29,789 ) $ 5,304 $ (24,485 ) * The tax (expense) benefit includes the effect of novating certain hedging instruments as part of an intercompany transfer. 7. Derivative financial instruments (Continued) The Company’s gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Amount of Gain (Loss) reclassified recognized in OCI on from OCI into Statement of Income Derivatives in Derivatives (Effective Portion) Location of Gain (Loss) (Effective Portion) Cash Flow Three months ended Nine months ended reclassified from OCI into Three months ended Nine months ended Hedging September 30, September 30, Statement of Income September 30, September 30, Relationships 2019 2020 2019 2020 (Effective Portion) 2019 2020 2019 2020 Forward foreign exchange contracts $ (7,261 ) $ 20,518 $ 22,964 $ (10,609 ) Revenue $ 1,919 $ 62 $ 4,441 $ 3,973 Interest rate swaps (1,854 ) 32 (9,293 ) (19,963 ) Cost of revenue 2,294 (1,571 ) 5,274 (4,833 ) Selling, general and administrative expenses 595 (440 ) 1,497 (1,310 ) Interest expense 1,107 (2,047 ) 3,893 (2,739 ) $ (9,115 ) $ 20,550 $ 13,671 $ (30,572 ) $ 5,915 $ (3,996 ) $ 15,105 $ (4,909 ) There were no gains (losses) recognized in income on the ineffective portion of derivatives and excluded from effectiveness testing Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended September 30, Nine months ended September 30, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2019 2020 2019 2020 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ (3,209 ) $ 7,136 $ 4,203 $ (6,698 ) Forward foreign exchange contracts (Note b) Foreign exchange gains (losses), net — — — 3,963 $ (3,209 ) $ 7,136 $ 4,203 $ (2,735 ) (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. (b) These forward foreign exchange contracts were initially designated as cash flow hedges under ASC guidance on derivatives and hedging. These contracts were terminated because certain forecasted transactions were no longer expected to occur and therefore hedge accounting was no longer applied. Subsequently the realized gains (losses) are recorded in foreign exchange gains (losses) net in the consolidated statements of income. In connection with the COVID-19 pandemic, the Company has reevaluated its hedging arrangements. The Company has considered the effect of changes, if any, in both counterparty credit risk and the Company’s own non-performance risk while assessing hedge effectiveness and measuring hedge ineffectiveness. The Company believes that its hedges continue to be effective after taking into account the expected impact of the COVID-19 pandemic on the Company’s hedged transactions. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid expenses and other current assets | 8. Prepaid expenses and other current assets Prepaid expenses and other current assets consist of the following: As of December 31, As of September 30, 2019 2020 Advance income and non-income taxes $ 43,763 $ 111,902 Contract asset (Note 20) 19,170 13,470 Prepaid expenses 29,734 35,200 Derivative instruments 18,223 15,189 Employee advances 4,209 3,222 Deposits 1,784 6,544 Advances to suppliers 4,289 738 Others 49,153 29,979 $ 170,325 $ 216,244 |
Property, plant and equipment,
Property, plant and equipment, net | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | 9. Property, plant and equipment, net The following table provides the gross and net amount of property, plant and equipment: As of December 31, 2019 As of September 30, 2020 Property, plant and equipment, gross $ 744,161 $ 769,214 Less: Accumulated depreciation, amortization and impairment (490,126 ) (531,741 ) Property, plant and equipment, net $ 254,035 $ 237,473 Depreciation expense on property, plant and equipment for the nine months ended September 30, 2019 and 2020 was $41,739 and $50,863, respectively, and for the three months ended September 30, 2019 and 2020 was $13,262 and $17,257, respectively. Computer software amortization for the nine months ended September 30, 2019 and 2020 was $8,060 and $7,399, respectively, and for the three months ended September 30, 2019 and 2020 was $3,844 and $1,889, respectively. The depreciation and amortization expenses set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to The Company recorded a write-down to certain property, plant and equipment during the three and nine months ended September 30, 2020, as described in Note 10. |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | 10. Goodwill and intangible assets The following table presents the changes in goodwill for the year ended December 31, 2019 and nine months ended September 30, 2020: For the year ended December 31, 2019 For the nine months ended September 30, 2020 Opening balance $ 1,393,832 $ 1,574,466 Goodwill relating to acquisitions consummated during the period 185,381 — Impact of measurement period adjustments (988) — Effect of exchange rate fluctuations (3,759) (6,863) Closing balance $ 1,574,466 $ 1,567,603 The following table presents the changes in goodwill by reporting unit for the nine months ended September 30, 2020: BCMI CGRLH HMS Total Opening balance $ 417,213 555,130 602,123 1,574,466 Goodwill relating to acquisitions consummated during the period — — — — Impact of measurement period adjustments — — — — Effect of exchange rate fluctuations (1,971 ) (2,519 ) (2,373 ) (6,863 ) Closing balance $ 415,242 552,611 599,750 1,567,603 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 The total amount of goodwill deductible for tax purposes was $282,524 and $265,924 as of December 31, 2019 and September 30, 2020, respectively. The Company’s intangible assets are as follows: As of December 31, 2019 As of September 30, 2020 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 415,375 329,724 85,651 413,057 348,267 64,790 Marketing-related intangible assets 84,180 50,217 33,963 83,202 57,969 25,233 Technology-related intangible assets 149,262 61,150 88,112 150,345 83,010 67,335 Intangible assets under development 26,646 3,511 23,135 22,053 2,503 19,550 675,463 444,602 230,861 668,657 491,749 176,908 Amortization expenses for intangible assets acquired as a part of business combination and 10. Goodwill and intangible assets (Continued) Amortization expenses for internally-developed and other intangible assets disclosed in the consolidated statements of income under cost of revenue and selling, general and administrative expenses for the nine months ended September 30, 2019 and 2020 were $13,244 and $20,932, respectively, and for the three months ended September 30, 2019 and 2020 were $4,990 and $6,896, 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 During the three and nine months ended September 30, 2019 and 2020, the Company tested for recoverability certain customer-related and technology-related intangible assets, including those under development, and certain property, plant and equipment, as a result of changes in the Company’s investment strategy and market trends which led to a decision to cease certain service offerings. Based on the results of this testing, the Company determined that the carrying values of the assets tested were not recoverable, and the Company recorded complete write-downs of the carrying values of these assets amounting to $3,511 and $10,647 for the nine months ended September 30, 2019 and 2020, respectively, and $0 and $674 for the three months ended September 30, 2019 and 2020, respectively. These write-downs have been recorded in “other operating (income) expense, net” in the consolidated statement of income. The summary below represents the impairment charge recorded for various categories of assets during the three and nine months ended September 30, 2019 and September 30, 2020: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Technology related intangibles — 347 3,511 4,878 Customer related intangibles — — — 1,239 Total Intangibles — 347 3,511 6,117 Property, plant and equipment — 327 — 4,530 Total Property, plant and equipment — 327 — 4,530 Grand Total — 674 3,511 10,647 |
Short-term borrowings
Short-term borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | 11. Short-term borrowings The Company has the following borrowing facilities: (a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2019 and September 30, 2020, the limits available were $14,307 and $14,212, respectively, of which $7,486 and $6,191, respectively, 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 12. Prior to the amendment, the Company’s revolving credit facility was $350,000. The amended credit facility expires on August 8, 2023. The funded drawdown amount under the Company’s revolving facilities bore interest at a rate equal to LIBOR plus a margin of 1.375% as of December 31, 2019 and September 30, 2020. The unutilized amount on the revolving facilities bore a commitment fee of 0.20% as of December 31, 2019 and September 30, 2020. As of December 31, 2019 and September 30, 2020, a total of $72,098 and $247,639, respectively, was utilized, of which $70,000 and $245,000, respectively, constituted funded drawdown and $2,098 and $2,639, respectively, constituted non-funded drawdown. The Company’s amended credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. During the period ended September 30, 2020, the Company was in compliance with the financial covenants of the credit agreement. |
Long-term debt
Long-term debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt | 12. Long-term debt In August 2018, the Company amended its 2015 credit facility (“the 2015 Facility”), which was comprised of an $800,000 term loan and a $350,000 revolving credit facility. The amended facility is comprised of a $680,000 term loan, which represents the outstanding balance under the 2015 Facility as of the date of amendment, and a $500,000 revolving credit facility. The amended facility expires on August 8, 2023. The amendment did not result in a substantial modification of $550,814 of the outstanding term loan under the 2015 Facility. Further, as a result of the amendment, the Company extinguished the outstanding term loan under the 2015 Facility of $129,186 and obtained additional funding of $129,186, resulting in no change to the outstanding principal of the term loan under the amended facility. In connection with the amendment, the Company expensed $2,029, representing partial acceleration of the amortization of the existing unamortized debt issuance costs and an additional fee paid to the Company’s lenders related to the term loan. The overall borrowing capacity under the revolving credit facility increased from $350,000 to $500,000. The amendment of the revolving credit facility resulted in accelerated amortization of $82 relating to existing unamortized debt issuance cost. The remaining unamortized costs and an additional third-party fee paid in connection with the amendment will be amortized over the term of the amended facility, which will expire on August 8, 2023. Borrowings under the amended credit facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus an applicable margin equal to 1.375% per annum, compared to a margin of 1.50% under the 2015 Facility, or a base rate plus an applicable margin equal to 0.375% per annum, compared to a margin of 0.50% under the 2015 Facility, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.375% per annum. The amended credit agreement restricts certain payments, including dividend payments, if there is an event of default under the credit agreement or if the Company is not, or after making the payment would not be, in compliance with certain financial covenants contained in the amended credit agreement. These covenants require the Company to maintain a net debt to EBITDA leverage ratio of below 3x and an interest coverage ratio of more than 3x. During the period ended 30, 2020, the Company was in compliance with the terms of the credit agreement, including all of the financial covenants therein. The Company’s retained earnings are not subject to any restrictions on availability to make dividend payments to shareholders, subject to compliance with the financial covenants described above that are contained in the amended credit agreement. As of December 31, 2019 and September 30, 2020, the amount outstanding under the term loan, net of debt amortization expense of $1,641 and $1,271, was $627,359 and $602,229, respectively. As of December 31, 2019 and September 30, 2020, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.375% per annum. Indebtedness under the amended credit facility is unsecured. The amount outstanding on the term loan as of September 30, 2020 requires quarterly payments of $8,500, and the balance of the loan is due and payable upon the maturity of the term loan on August 8, 2023. The maturity profile of the term loan outstanding as of September 30, 2020, net of debt amortization expense, is as follows: Year ended Amount 2020 $ 8,379 2021 33,537 2022 33,564 2023 526,749 Total $ 602,229 12. Long-term debt (Continued) 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 (the “2017 Senior Notes”), and $400,000 aggregate principal amount of 3.375% senior notes in November 2019 (the “2019 Senior Notes” and together with the 2017 Senior Notes, the “Senior Notes”). The Senior Notes are fully guaranteed by the Company. The total debt issuance cost of $2,642 and $2,937 incurred in connection with the 2017 Senior Notes and 2019 Senior Notes offerings, respectively, are being amortized over the lives of the Senior Notes as an additional interest expense. As of December 31, 2019 and September 30, 2020, the amount outstanding under the 2017 Senior Notes, net of debt amortization expense of $1,186 and $791, respectively, was $348,814 and $349,209, respectively, which is payable on April 1, 2022. As of December 31, 2019 and September 30, 2020, the amount outstanding under the 2019 Senior Notes, net of debt amortization expense of $2,868 and $2,431, was $397,132 and $ 397,569 A summary of the company’s long-term debt is as follows: As of December 31, 2019 As of September 30, 2020 Credit facility, net of debt amortization expense 627,359 602,229 2017 Senior Notes, net of debt amortization expense 348,814 349,209 2019 Senior Notes, net of debt amortization expense 397,132 397,569 Total $ 1,373,305 $ 1,349,007 Current portion 33,509 33,530 Non-current portion 1,339,796 1,315,477 Total $ 1,373,305 $ 1,349,007 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accrued expenses and other current liabilities | 13. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: As of December 31, As of September 30, 2019 2020 Accrued expenses $ 178,845 $ 153,235 Accrued employee cost 273,769 211,312 Earn-out consideration 6,384 5,001 Statutory liabilities 62,786 68,724 Retirement benefits 1,564 1,617 Compensated absences 26,116 28,220 Derivative instruments 6,966 29,709 Contract liabilities (Note 20) 97,313 132,754 Finance lease liability 9,740 16,211 Others 20,388 30,647 $ 683,871 $ 677,430 |
Other liabilities
Other liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | 14. Other liabilities Other liabilities consist of the following: As of December 31, As of September 30, 2019 2020 Accrued employee cost $ 8,729 $ 18,900 Earn-out consideration 15,800 13,161 Statutory liabilities 66 21,748 Retirement benefits 13,162 17,274 Compensated absences 35,029 43,384 Derivative instruments 17,273 16,081 Contract liabilities (Note 20) 78,613 65,779 Finance lease liability 20,725 31,249 Others 19,519 28,445 $ 208,916 $ 256,021 |
Employee benefit plans
Employee benefit plans | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plans | 15. Employee benefit plans The Company has employee benefit plans in the form of certain statutory and other programs covering its employees. Defined benefit plans In accordance with Indian law, the Company maintains a defined benefit retirement plan covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines, Israel and Japan sponsor defined benefit retirement programs. Net defined benefit plan costs for the three and nine months ended September 30, 2019 and 2020 include the following components: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Service costs $ 2,108 $ 2,733 $ 6,439 $ 8,402 Interest costs 1,138 1,267 3,479 3,898 Amortization of actuarial loss 290 615 887 1,883 Expected return on plan assets (643 ) (1,108 ) (1,967 ) (3,406 ) Net defined benefit plan costs $ 2,893 $ 3,507 $ 8,838 $ 10,777 15. Employee benefit plans (Continued) Defined contribution plans During the three and nine months ended September 30, 2019 and 2020, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 India $ 7,805 $ 7,289 $ 21,757 $ 22,362 U.S. 4,655 4,654 13,676 13,935 U.K. 2,634 2,836 9,290 8,719 China 4,693 4,691 14,111 11,953 Other regions 1,388 2,628 4,244 7,464 Total $ 21,175 $ 22,098 $ 63,078 $ 64,433 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 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. The liability for the deferred compensation plan was $10,943 and $23,252 as of December 31, 2019 and September 30, 2020, respectively, and is included in “accrued expenses and other current liabilities” and “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 $11,208 and $23,680 as of December 31, 2019 and September 30, 2020, respectively. The cash surrender value of these insurance policies is included in “other assets” in the consolidated balance sheets. During the nine months ended September 30, 2019 and 2020, the change in the fair value of Plan assets was $729 and $1,972, respectively, and for the three months ended September 30, 2019 and 2020 was $186 and $1,204, respectively months |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | 16. Stock-based compensation The Company has issued options under the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) and the Genpact Limited 2017 Omnibus Incentive Compensation Plan (the “2017 Omnibus Plan”) to eligible persons, including employees, directors and certain other persons associated with the Company. Under the 2007 Omnibus Plan, shares underlying options forfeited, expired, terminated or cancelled under any of the Company’s predecessor plans were added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares. On May 9, 2017, the Company’s shareholders approved the adoption of the 2017 Omnibus Plan, pursuant to which 15,000,000 Company common shares are available for issuance. The 2017 Omnibus Plan was amended and restated on April 5, 2019 to increase the number of common shares authorized for issuance by 8,000,000 shares to 23,000,000 shares. No grants may be made under the 2007 Omnibus Plan after the date of adoption of the 2017 Omnibus Plan. Grants that were outstanding under the 2007 Omnibus Plan as of the date of Company’s adoption of the 2017 Omnibus Plan remain subject to the terms of the 2007 Omnibus Plan. Stock-based compensation costs relating to the foregoing plans during the nine months ended September September September Stock options All options granted under the 2007 and 2017 Omnibus Plans are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. Compensation cost is determined at the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model. The following table shows the significant assumptions used in determining the fair value of options granted in the nine months ended September 30, 2019 and 2020. The Company granted 1,881,068 options in the nine months ended September 30, 2019. Nine months ended September 30, 2019 Nine months ended September 30, 2020 Dividend yield 0.82% - 1.08% 0.89 % Expected life (in months) 84 84 Risk-free rate of interest 1.56% - 2.63% 1.50 % Volatility 21.0% - 21.38% 20.96 % 1 6. Stock-based compensation (Continued) A summary of stock option activity during the nine months ended September 30, 2020 is set out below: Nine months ended September 30, 2020 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life Aggregate intrinsic value Outstanding as of January 1, 2020 8,360,212 $ 25.33 6.5 $ — Granted 431,924 43.94 — — Forfeited (752,261) 30.09 — — Expired — — — — Exercised (542,634 ) 20.03 — 8,802 Outstanding as of September 30, 2020 7,497,241 $ 26.31 5.9 $ 96,908 Vested as of September 30, 2020 and expected to vest thereafter (Note a) 7,311,736 $ 26.19 5.9 $ 95,303 Vested and exercisable as of September 30, 2020 2,863,405 $ 19.50 2.9 $ 55,703 Weighted average grant date fair value of grants during the period $ 9.72 (a) Options expected to vest reflect an estimated forfeiture rate. As of September 30, 2020, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $21,480, which will be recognized over the weighted average remaining requisite vesting period of 3.1 years. Restricted share units The Company has granted restricted share units (“RSUs”) under the 2007 and 2017 Omnibus Plans. Each RSU represents the right to receive one common share. The fair value of each RSU is the market price of one common share of the Company on the date of the grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSU activity during the nine months ended September 30, 2020 is set out below: Nine months ended September 30, 2020 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2020 1,261,706 $ 31.41 Granted 296,332 40.40 Vested (Note a) (582,608) 27.77 Forfeited (57,052) 37.45 Outstanding as of September 30, 2020 918,378 $ 36.24 Expected to vest (Note b) 814,622 (a) 582,608 (b) The number of RSUs expected to vest reflects the application of an estimated forfeiture rate. 44,562 RSUs vested in the year ended December 31, 2018, in respect of which 44,165 shares were issued during the nine months ended September 30, 2020 after withholding shares to the extent required to satisfy minimum statutory withholding obligations. 16. Stock-based compensation (Continued) As of September 30, 2020, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $20,611, which will be recognized over the weighted average remaining requisite vesting period of 2.1 years. Performance units The Company also grants stock awards in the form of performance units (“PUs”) and has granted PUs under both the 2007 and 2017 Omnibus Plans. Each PU represents the right to receive one common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plans are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. During the performance period, the Company’s estimate of the number of shares to be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets. A summary of PU activity during the nine months ended September 30, 2020 is set out below: Nine months ended Sept 30, 2020 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2020 6,058,464 $ 31.07 6,058,464 Granted 1,253,766 42.49 2,507,532 Vested (Note a) (1,496,377) 25.21 (1,496,377) Forfeited (494,654) 33.65 (511,928) Adjustment upon final determination of level of performance goal achievement (Note b) 6,503 34.72 6,503 Outstanding as of September 30, 2020 5,327,702 $ 35.17 6,564,194 Expected to vest (Note c) 4,699,601 (a) 1,496,377 PSUs that vested during the period were net settled upon vesting by issuing 902,532 shares (net of minimum statutory tax withholding). (b) Represents an adjustment made in March 2020 to the number of shares subject to the PUs granted in 2019 upon certification of the level of achievement of the performance targets underlying such awards. (c) The number of PUs expected to vest reflects the application of an estimated forfeiture rate. As of September 30, 2020, the total remaining unrecognized stock-based compensation cost related to PUs amounted to $66,107, which will be recognized over the weighted average remaining requisite vesting period of 1.6 years. Employee Stock Purchase Plan (ESPP) On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”). In April 2018, these plans were amended and restated, and their terms were extended to August 31, 2028. The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP may not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day of the subsequent May, August, November and February. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP. 16. Stock-based compensation (Continued) During the nine months ended September 30, 2019 and 2020, 195,221 and 241,953 common shares, respectively, were issued under the ESPP. The ESPP is considered compensatory under the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP during the nine months ended September 30, 2019 and 2020 was $782 and $983, respectively, and |
Capital stock
Capital stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Capital stock | 17. Capital stock Share repurchases The Board of Directors of the Company (the “Board”) has authorized repurchases of up to $1,250,000 under the Company’s existing share repurchase program. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the nine months ended September 30, 2019 and 2020, the Company repurchased 608,285 and 1,781,978 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 nine months ended September 30, 2019 and 2020, retained earnings were reduced by the direct costs related to share repurchases of $12 and $36, respectively. Approximately $200,491 remained available for share repurchases under the Company’s existing share repurchase program as of September 30, 2020. This repurchase program does not obligate the Company to acquire any specific number of shares and does not specify an expiration date. Dividend On February 7, 2019, the Company announced that its Board had approved a 13% increase in its quarterly cash dividend to $0.085 per share, up from $0.075 per share in 2018, representing 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 and September 20, 2019, the Company paid a dividend of $0.085 per share, amounting to $16,119, $16,188 and $16,208 in the aggregate, to shareholders of record as of March 8, 2019, June 12, 2019 and September 11, 2019, respectively. On February 6, 2020, the Company announced that its Board had approved a 15% increase in its quarterly cash dividend to $0.0975 per share, up from $0.085 per share in 2019, representing a planned annual dividend of $0.39 per common share, up from $0.34 per share in 2019, payable to holders of the Company’s common shares. On March 18, 2020, June 26, 2020 and September 23, 2020, the Company paid a dividend of $0.0975 per share, amounting to $18,543, $18,595 and $18,637 in the aggregate, to shareholders of record as of March 9, 2020, June 11, 2020 and September 11, 2020, respectively. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | 18. Earnings per share The Company calculates earnings per share in accordance with FASB guidance on earnings per share. Basic and diluted earnings per common share give effect to the change in the number of Company common shares outstanding. The calculation of basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the respective periods. 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 the number of weighted average shares outstanding, except where the result would be anti-dilutive. The number of shares subject to stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 2,375,425 and 1,432,789 for the nine months ended September September Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Net income available to Genpact Limited common shareholders $ 88,120 $ 85,435 $ 222,683 $ 233,294 Weighted average number of common shares used in computing basic earnings per common share 190,599,049 190,949,108 190,071,418 190,705,671 Dilutive effect of stock-based awards 5,291,792 5,706,032 4,612,281 5,394,396 Weighted average number of common shares used in computing dilutive earnings per common share 195,890,841 196,655,140 194,683,699 196,100,067 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.46 $ 0.45 $ 1.17 $ 1.22 Diluted $ 0.45 $ 0.43 $ 1.14 $ 1.19 |
Segment reporting
Segment reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment reporting | 19. 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 from the quarter and year ended December 31, 2019, the Company implemented operational changes in how its Chief Operating Decision Maker (“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 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), restructuring expenses, acquisition related expenses, other income/(expense), or income taxes by segment. The Company’s operating assets and liabilities pertain to multiple segments. The Company manages assets and liabilities on a total company basis, not by operating segment, and therefore asset and liabilities information and capital expenditures by operating segment are not presented to the CODM and are not reviewed by the CODM. 19. Segment reporting (Continued) Revenues and adjusted income from operations for each of the Company’s segments for the three months ended September Reportable segments BCMI CGRLH HMS Others* Total Revenues, net 283,806 318,290 339,008 (5,581 ) 935,523 Adjusted income from operations 38,771 47,847 60,990 12,365 159,973 Stock-based compensation (19,487 ) Amortization and impairment of acquired intangible assets (other than included above) (9,995 ) Foreign exchange gains (losses), net (2,402 ) Interest income (expense), net (12,757 ) Restructuring expenses (refer (a) below and note 27) (4,889 ) Income tax expense (25,008 ) Net income 85,435 (a) We do not allocate these charges to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are included in our segment reporting as “unallocated costs.” *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 the impact of over-absorption of overhead, unallocated allowance for credit losses and 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 each of the Company’s segments for the nine months ended September Reportable segments BCMI CGRLH HMS Others** Total Revenues, net 805,807 930,203 1,045,920 (23,121 ) 2,758,809 Adjusted income from 0perations 88,888 134,691 178,741 38,873 441,193 Stock-based compensation (55,818 ) Amortization and impairment of acquired intangible assets (other than included above) (32,218 ) Foreign exchange gains (losses), net 11,611 Interest income (expense), net (38,072 ) Restructuring expenses (refer (b) below and note 27) (26,547 ) Income tax expense (66,855 ) Net income 233,294 (b) We do not allocate these charges to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are included in our segment reporting as “unallocated costs.” **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 the impact of over-absorption of overhead, unallocated allowance for credit losses and foreign exchange fluctuations, which are not allocated to the Company’s segments for management’s internal reporting purposes. 19. Segment reporting (Continued) Revenues and adjusted income from operations for each of the Company’s segments for the three months ended September Reportable segments BCMI CGRLH HMS Others# Total Revenues, net 282,158 273,077 338,172 (4,608 ) 888,799 Adjusted income from operations 32,683 42,697 58,520 8,415 142,315 Stock-based compensation (21,320 ) Amortization of acquired intangible assets (other than included above) (6,712 ) Foreign exchange gains (losses), net 6,727 Interest income (expense), net (10,221 ) Income tax expense (22,669 ) Net income 88,120 #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 the impact of over-absorption of overhead and 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 each of the Company’s segments for the nine months ended September Reportable segments BCMI CGRLH HMS Others## Total Revenues, net 798,171 802,714 988,691 (9,773 ) 2,579,804 Adjusted income from operations 88,796 115,243 175,285 20,548 399,872 Stock-based compensation (61,307 ) Amortization of acquired intangible assets (other than included above) (22,689 ) Acquisition-related expenses (967 ) Foreign exchange gains (losses), net 3,646 Interest income (expense), net (33,487 ) Income tax expense (62,385 ) Net income 222,683 ##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 the impact of over-absorption of overhead and foreign exchange fluctuations, which are not allocated to the Company’s segments for management’s internal reporting purposes. |
Net revenues
Net revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenues [Abstract] | |
Net revenues | 20. Disaggregation of revenue In the following table, the Company’s revenue is disaggregated by customer classification: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 GE $ 121,096 $ 111,348 $ 348,742 $ 349,762 Global clients 767,703 824,175 2,231,062 2,409,047 Total net revenues $ 888,799 $ 935,523 $ 2,579,804 $ 2,758,809 All revenue from GE is included in revenue from the HMS segment, and the remainder of revenue from the HMS segment consists of revenue from Global Clients. All of the segment revenue from both the BCMI and CGRLH segments consists of revenue from Global Clients. Refer to Note 19 for details on net revenues attributable to each of the Company’s segments. The Company has evaluated the impact of the COVID-19 pandemic on the Company’s net revenues for the three and nine months ended September September Contract balances Accounts receivable include amounts for services that the Company has performed but for which payment has not been received. The Company typically follows a 30-day billing cycle and, as such, at any point in time may have accrued up to 30 days of revenues that have not been billed. The Company has determined that in instances where the timing of revenue recognition differs from the timing of invoicing, the related contracts generally do not include a significant financing component. Refer to Note 5 for details on the Company’s accounts receivable and allowance for credit losses. The following table shows the details of the Company’s contract balances: Particulars As of December 31, 2019 As of September 30, 2020 Contract assets (Note a) $ 40,346 $ 31,195 Contract liabilities (Note b) Deferred transition revenue $ 131,108 $ 116,358 Advance from customers $ 44,818 $ 82,175 (a) Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. (b) Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet. 20. Net revenues (Continued) Contract assets represent the contract acquisition fees or other upfront fees paid to a customer. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and deducted from revenue. The Company’s assessment did not indicate any significant impairment losses on its contract assets for the periods presented. Contract liabilities include that portion of revenue for which payments have been received in advance from customers. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. Consideration received from customers, if any, relating to such transition activities is also included as part of contract liabilities. The contract liabilities are included within “Accrued expenses and other current liabilities” and “Other liabilities” in the unaudited consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled under the contract with the customer. Changes in the Company’s contract asset and liability balances during the three and nine months ended September 30, 2019 and 2020 were a result of normal business activity and not materially impacted by any other factors. Revenue recognized during the three months ended September 30, 2019 and 2020 that was included in the contract liabilities balance at the beginning of the period was $36,257 and $51,201, respectively. Revenue recognized during the nine months ended September 30, 2019 and 2020 that was included in the contract liabilities balance at the beginning of the period was $83,114 and $83,189, respectively. The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of September 30, 2020: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 198,533 $ 132,754 $ 52,360 $ 11,264 $ 2,155 The following table provides details of the Company’s contract cost assets: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Particulars Sales incentive programs Transition activities Sales incentive programs Transition activities Sales incentive programs Transition activities Sales incentive programs Transition activities Opening balance $ 35,593 $ 156,585 $ 32,182 $ 178,570 $ 25,891 $ 134,302 $ 35,366 $ 170,132 Closing balance 35,146 171,357 30,047 181,747 35,146 171,357 30,047 181,747 Amortization 4,496 15,106 6,094 17,935 13,044 41,701 14,329 50,397 |
Other operating (income) expens
Other operating (income) expense, net | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Other operating (income) expense, net | 21. Other operating (income) expense, net Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Write-down of intangible assets and property, plant and equipment * $ — $ 674 $ 3,511 $ 10,647 Write-down of operating right-of-use assets and other assets * — — — 10,244 Other operating (income) expense 59 (4,192 ) (3,421 ) (5,900 ) Other operating (income) expense, net $ 59 $ (3,518 ) $ 90 $ 14,991 *See note 27 for additional information about other operating (income) expense, net for the nine months ended September |
Interest income (expense), net
Interest income (expense), net | 9 Months Ended |
Sep. 30, 2020 | |
Banking And Thrift Interest [Abstract] | |
Interest income (expense), net | 22. Interest income (expense), net Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Interest income $ 1,968 $ 1,828 $ 4,758 $ 5,229 Interest expense (12,189 ) (14,585 ) (38,245 ) (43,301 ) Interest income (expense), net $ (10,221 ) $ (12,757 ) $ (33,487 ) $ (38,072 ) |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 23. Income taxes The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. As of December 31, 2019, the Company had unrecognized tax benefits amounting to $31,029, including an amount of $29,835, which, if recognized, would impact the Company’s effective tax rate, or ETR. The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions for the nine months ended September 30, 2020: 2020 Opening balance at January 1 $ 31,029 Decrease related to prior year tax positions (37 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (912 ) Increase related to current year tax positions 271 Decrease related to settlements with tax authorities (310 ) Effect of exchange rate changes (582 ) Closing balance at September 30 $ 29,459 The Company’s unrecognized tax benefits as of September 30, 2020 include an amount of $28,265, which, if recognized, would impact the Company’s ETR. As of December 31, 2019 and September 30, 2020, the Company had accrued approximately $5,812 and $6,174, respectively, in interest relating to unrecognized tax benefits. During the year ended December 31, 2019 and the nine months ended September 30, 2020, the Company recognized approximately $826 and $525, respectively, excluding the impact of exchange rate differences, in interest on unrecognized tax benefits. As of December 31, 2019 and September 30, 2020, the Company had accrued approximately $1,084 and $1,005, respectively, for penalties . |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related party transactions | 24. Related party transactions The Company has from time to time entered into related party transactions with non-consolidating affiliates and 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, and the Company also has sold its investments in non-consolidating affiliates. Accordingly, transactions between the Company, its non-consolidating affiliates, and Bain are no longer presented as related party transactions for the nine months ended September 30, 2020. The value of related party transactions entered into during the nine months ended September 30, 2019 was not significant. |
Other Income (expense), net
Other Income (expense), net | 9 Months Ended |
Sep. 30, 2020 | |
Other Nonoperating Income Expense [Abstract] | |
Other Income (expense), net | 25. Other income (expense), net Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Government incentives $ — $ — $ 3,976 $ — Other income (expense) 704 960 1,091 946 Other income (expense), net $ 704 $ 960 $ 5,067 $ 946 |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 26. Commitments and contingencies Capital commitments As of December 31, 2019 and September 30, 2020, the Company has committed to spend $5,368 and $9,780, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases. Bank guarantees The Company has outstanding bank guarantees and letters of credit amounting to $9,585 and $8,830 as of December 31, 2019 and September 30, 2020, respectively. Bank guarantees are generally provided to government agencies and excise and customs authorities for the purpose of maintaining a bonded warehouse. These guarantees may be revoked if the government agencies suffer any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees. Other commitments Certain units of our Indian subsidiaries are established as Software Technology Parks of India units or Special Economic Zone (“SEZ”) units under the relevant regulations issued by the Government of India. These units are exempt from customs and other duties on imported and indigenous capital goods, stores and spares. SEZ units are also exempt from the goods and services tax that was introduced in India in 2017. The Company has undertaken to pay taxes and duties, if any, in respect of capital goods, stores, spares and services consumed duty-free, in the event that certain terms and conditions are not fulfilled. Contingency In February 2019, there was a judicial pronouncement in India with respect to defined contribution benefit payments interpreting certain statutory defined contribution obligations of employees and employers. It is not currently clear whether the interpretation set out in the pronouncement has retrospective application. If applied retrospectively, the interpretation would result in an increase in contributions payable by the Company for past periods for certain of its India-based employees. There are numerous interpretative challenges concerning the retrospective application of the judgment. Due to such challenges and a lack of interpretive guidance, and based on legal advice the Company has obtained on the matter, it is currently impracticable to reliably estimate the timing and amount of any payments the Company may be required to make. Accordingly, the Company plans to obtain further clarity and will evaluate the amount of a potential provision, if any. In the second quarter of 2020, a first appellate authority ruled in favor of Indian taxing authorities who had denied a $3,569 Goods and Services Tax (“GST”) refund the Company had claimed. The Company had requested the refund pursuant to the tax exemption available for exports under the GST regime in respect of services performed by the Company in India for affiliates and clients outside of India. In denying the refund, the taxing authorities have taken the position that the services provided are local services, which interpretation, if correct, would make the GST exemption on exports unavailable to the Company in respect of such services. The Company believes that the denial of the GST exemption is incorrect and that the risk that the liability will materialize is remote. Accordingly, no reserve has been provided as of September 30, 2020. 26. Commitments and contingencies (Continued) In September 2020, the Indian Parliament approved the Code on Social Security, 2020 (the “Code”), which will impact the Company’s contributions to its defined contribution and defined benefit plans for employees based in India. The date the changes will take effect is not yet known and the rules for quantifying the financial impact have not yet been published. The Company will evaluate the impact of the Code on the Company in the financial statements for the period in which the Code becomes effective and the related rules are published. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 27. Restructuring In the second quarter of 2020, due to the impact of the COVID-19 pandemic on the Company’s current and expected future revenues, the Company recorded a $21,658 restructuring charge primarily relating to the abandonment of leased office premises and employee severance charges. In the third quarter of 2020, the Company recorded an additional charge of $4,889 relating to employee severance charges. Of the total recorded restructuring charges of $26,547 for the second and third quarters of 2020, $11,152 was a non-cash charge (including $908 related to writing down certain property, plant and equipment) recorded as other operating expense, which pertains to the abandonment of various leased office premises as a result of the Company’s consolidation of underutilized office premises due to lower demand or shifting to a work-from-home model. The Company made efforts to sublease certain office premises instead of abandoning them, but due to the COVID-19 pandemic and the related widespread adoption of work-from-home practices by many businesses worldwide, the Company was unable to sublease such premises, and it is unlikely that the Company will be able to sublease any such premises in the foreseeable future. The Company also recorded a severance charge of $15,394 in personnel expense as a result of a focused reduction in its workforce. There are no further restructuring costs expected related to this restructuring plan. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 28. Subsequent Events Acquisition On October 5, 2020, the Company acquired all of the outstanding equity interests in SomethingDigital.Com LLC (“Something Digital”), a New York limited liability company. Something Digital specializes in ecommerce website design, digital strategy and user experience. The acquisition of Something Digital expands the Company’s existing experience business. Share Repurchase Pursuant to its share repurchase program, the Company repurchased 1,105,000 of its common shares on the open market between October 1, 2020 and October 27, 2020 at a weighted average price of $38.41 per share for an aggregate cash amount of $42,448. Dividend On October 21, 2020, the Company announced that its Board of Directors has declared a dividend for the fourth quarter of 2020 of $0.0975 per common share, which is payable on December 23, 2020 to shareholders of record as of the close of business on December 9, 2020. The declaration of any future dividends will be at the discretion of the Board of Directors. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation. |
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, intangible assets and goodwill, revenue recognition, allowance for credit losses, 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, and management has made assumptions about the possible effects of the novel coronavirus (“COVID-19”) pandemic on critical and significant accounting estimates. Although these estimates and assumptions 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 Accounting Standard Codification (“ASC”) Topic 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 re-measured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under selling, general and administrative expenses. In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the consolidated statements of income. |
Goodwill | Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures. |
Other Intangible Assets | Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally are carried at cost less accumulated amortization and accumulated impairment loss based on their estimated useful lives as follows: Customer-related intangible assets 1-11 years Marketing-related intangible assets 2-10 years Technology-related intangible assets 2-8 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 towards 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 are amortized on a straight-line basis when placed into service over the estimated useful lives of the software and technology. 2. Summary of significant accounting policies (Continued) 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 | (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 17% |
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 current expected credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses which are adjusted to current market conditions and a reasonable and supportable forecast. 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 customers. |
Revenue recognition | (f) Revenue Recognition The Company derives its revenue primarily from business process management services, 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 the transfer of control of promised services to its 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 services rendered between the last billing date and the balance sheet date. The Company’s contracts with its 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. 2. Summary of significant accounting policies (Continued) Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and 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. The Company enters into multiple-element revenue arrangements in which a customer may purchase a combination of products or services. 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 customer. 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 fees 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 the customer 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 its 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 judgement. Judgement 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. |
Leases | 2. Summary of significant accounting policies (Continued) (g) Leases 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 Topic 840, Lease Classification, and were not reassessed on adoption of ASC Topic 842, Leases, on January 1, 2019. 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 right-of-use (ROU) asset and a lease liability are recognized. The lease liability represents the present value of the lease payments under the lease. Lease liabilities are initially measured at the present value of the lease payments not yet paid, discounted using the discount rate for the lease at the 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 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. The Company has 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 commencement date, have a lease term of 12 months or less and do not contain a purchase option (“short-term leases”). 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. Under certain of its leases, the Company has a renewal and termination option to lease assets for additional terms between one and fifteen years. The Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew or terminate the lease. The Company considers all relevant factors that create an economic incentive for it to exercise the renewal or termination option. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within the Company’s control and affects its ability to exercise (or not to exercise) the option to renew or terminate. The Company has applied an incremental borrowing rate for the purpose of computing lease liabilities based on the remaining lease term and the rates prevailing in the jurisdictions where leases were executed. 2. Summary of significant accounting policies (Continued) For the nine months ended September 30, 2020, |
Cost of revenue | (h) Cost of revenue Cost of revenue primarily consists of salaries and benefits (including stock-based compensation), recruitment, training and related costs of employees who are directly responsible for the performance of services for clients, their supervisors and certain support personnel who may be dedicated to a particular client or a set of processes. It also includes operational expenses, which consist of facilities maintenance expenses, travel and living expenses, rent, IT expenses, and consulting and certain other expenses. Consulting charges represent the cost of consultants and contract resources with specialized skills who are directly responsible for the performance of services for clients and travel and other billable costs related to the Company’s clients. It also includes depreciation of property, plant and equipment, and amortization of intangible and ROU assets which are directly related to providing services that generate revenue. |
Selling, general and administrative expenses | (i) Selling, general and administrative expenses Selling, general and administrative (SG&A) expenses consist of expenses relating to salaries and benefits (including stock-based compensation) as well as costs related to recruitment, training and retention of senior management and other support personnel in enabling functions such as human resources, finance, legal, marketing, sales and sales support, and other support personnel. The operational costs component of SG&A expenses also includes travel and living costs for such personnel. SG&A expenses also include acquisition-related costs, legal and professional fees (which represent the costs of third party legal, tax, accounting and other advisors), investment in research and development, digital technology, advanced automation and robotics, and an allowance for credit losses. It also includes depreciation of property, plant and equipment, and amortization of intangibles and ROU assets other than those included in cost of revenue. |
Changes in Accounting Policies | (j) 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 ASC Topic 326, Financial Instruments—Credit Losses (“Topic 326”), effective January 1, 2020. |
Credit losses | 2. Summary of significant accounting policies (Continued) Credit losses (effective January 1, 2020) The Company recognizes an allowance for credit losses for all debt instruments other than those held at fair value through profit or loss. The Company pools its accounts receivable based on similar risk characteristics in estimating expected credit losses. Credit losses for accounts receivable are based on the roll-rate method, and the Company recognizes a loss allowance based on lifetime expected credit losses at each reporting date. The Company has established a provision matrix based on historical credit loss experience, adjusted for forward-looking factors and the economic environment. The Company believes the most relevant forward-looking factors are economic environment, gross domestic product, inflation rates and unemployment rates for each of the countries in which the Company or its customers operate, and accordingly the Company adjusts historical loss rates based on expected changes in these factors. At every reporting date, observed historical default rates are updated to reflect changes in the Company’s forward-looking estimates. Credit losses for other financial assets including deferred billings are based on the discounted cash flow (“DCF”) method. Under the DCF method, the allowance for credit losses reflects the difference between the contractual cash flows due in accordance with the contract and the present value of the cash flows expected to be collected. The expected cash flows are discounted at the effective interest rate of the financial asset. Such allowances are based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments based on the Company’s expectation as of the balance sheet date. A financial asset is written off when it is deemed uncollectable and there is no reasonable expectation of recovering the contractual cash flows. Expected recoveries of amounts previously written off, not to exceed the aggregate amounts previously written off, are included in determining the allowance at each reporting period. Credit losses are presented as a credit loss expense within “Selling, general and administrative expenses.” Subsequent recoveries of amounts previously written off are credited against the same line item. Impact on consolidated financial statements The following table summarizes the impact of the Company’s adoption of Topic 326 on its consolidated financial statements as of January 1, 2020. As reported December 31, 2019 Adoption of Topic 326 Increase/(Decrease) Balance as of January 1, 2020 Accounts receivable, net 914,255 (4,185 ) 910,070 Other assets 217,079 (734)* 216,345 Deferred tax assets 89,715 935 90,650 Retained earnings 648,656 (3,984 ) 644,672 * Represents the expected |
Recently issued accounting pronouncements | (k) 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 842, Leases, with a date of initial application of January 1, 2019, using the modified retrospective approach. The significant accounting policy for leases is outlined in section (g) above. 2. Summary of significant accounting policies (Continued) In March 2019, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standard Update (“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 applications of the 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 apply 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 adopted this ASU and concluded that it does not have any impact on its consolidated results of operations, cash flows, financial position and or disclosures. In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections. This ASU amends various SEC paragraphs pursuant to the issuance of SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization. The S-X Rule 3-04 requires the presentation of changes in stockholders’ equity in the form of a reconciliation of the beginning balance to the ending balance for each period for which 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/or 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 became 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 adopted ASU 2016-13, ASU 2019-05 and ASU 2019-11 beginning January 1, 2020, including interim periods in fiscal year 2020. The cumulative impact of the adoption of these standards has been described in section (j) above. 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 assessed the impact of this ASU and concluded that it does not have any material impact on its consolidated results of operations, cash flows, financial position or 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 assessed the impact of this ASU and concluded that it does not have any material impact on its consolidated results of operations, cash flows, financial position or 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 re-measurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which foreign currency-denominated equity securities must be re-measured at historical exchange rates. The ASU is effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020. The Company assessed the impact of this ASU and concluded that it does not have any 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 assessed the impact of this ASU and concluded that it does not have any material impact on its consolidated results of operations, cash flows, financial position or disclosures. In March 2020, the FASB issued ASU No. 2020-03, “Codification Improvements to Financial Instruments.” This ASU includes amendments that make the Codification easier to understand and apply by eliminating inconsistencies and providing clarifications in relation to financial instruments. 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 or The following recently released accounting standards have not yet been adopted by the Company: 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 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 or In March 2020, the FASB issued ASU No. 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides temporary optional expedients and exceptions to the guidance in US GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. The guidance is effective upon issuance and generally can be applied through 31 December 2022. The Company is currently evaluating the impact of adopting this guidance. In August 2020, the FASB issued ASU No. 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”. This ASU eliminates two of the three models in ASC 470-20 that require separating embedded conversion features from convertible instruments. As a result, only conversion features accounted for under the substantial premium model in ASC 470-20 and those that require bifurcation in accordance with ASC 815-15 will be accounted for separately. For contracts in an entity’s own equity, the new guidance eliminates some of the requirements in ASC 815-40 for equity classification. The ASU is effective for the Company for fiscal years, and interim periods within those fiscal years, beginning January 1, 2022. 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 |
Reclassification | 2. Summary of significant accounting policies (Continued) (l) Reclassification Certain reclassifications have been made in the consolidated financial statements of prior periods to conform to the classification used in the current period. The impact of such reclassifications on the consolidated financial statements is not material. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Intangible Assets Acquired | Customer-related intangible assets 1-11 years Marketing-related intangible assets 2-10 years Technology-related intangible assets 2-8 years |
Summary of Impact of Adoption of Topic 326 on consolidated financial statements | The following table summarizes the impact of the Company’s adoption of Topic 326 on its consolidated financial statements as of January 1, 2020. As reported December 31, 2019 Adoption of Topic 326 Increase/(Decrease) Balance as of January 1, 2020 Accounts receivable, net 914,255 (4,185 ) 910,070 Other assets 217,079 (734)* 216,345 Deferred tax assets 89,715 935 90,650 Retained earnings 648,656 (3,984 ) 644,672 * Represents the expected |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | As of December 31, As of September 30, 2019 2020 Cash and other bank balances 467,096 803,399 Total $ 467,096 $ 803,399 |
Accounts receivable, net of a_2
Accounts receivable, net of allowance for credit losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Allowance for Credit Losses | The following table provides details of the Company’s allowance for credit losses: Year ended December 31, 2019 Nine months ended September 30, 2020 Opening balance as of January 1 $ 23,960 $ 29,969 Transition period adjustment on accounts receivables (through retained earnings) pursuant to adoption of ASC 326 — 4,185 Adjusted balance as of January 1 $ 23,960 $ 34,154 Additions due to acquisitions 1,004 — Additions charged/reversal released to cost and expense $ 7,443 $ 1,394 Deductions/effect of exchange rate fluctuations (2,438 ) (9,996 ) Closing balance $ 29,969 $ 25,552 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 and September 30, 2020: 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 As of September 30, 2020 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) $ 20,687 $ — $ 20,687 $ — Deferred compensation plan assets (Note a, e) 23,680 — — 23,680 Total $ 44,367 $ — $ 20,687 $ 23,680 Liabilities Earn out consideration (Note b, d) $ 18,162 $ — $ — $ 18,162 Derivative instruments (Note b, c) 45,790 — 45,790 — Deferred compensation plan liability (Note b, f) 23,252 — — 23,252 Total $ 87,204 $ — $ 45,790 $ 41,414 (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 three and nine months ended September 30, 2019 and 2020: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Opening balance $ 9,141 $ 21,837 $ 1,613 $ 11,208 Additions (net of redemption) 579 639 7,564 10,500 Change in fair value of deferred compensation plan assets (Note a) 186 1,204 729 1,972 Closing balance $ 9,906 $ 23,680 $ 9,906 $ 23,680 (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 three and nine months ended September 30, 2019 and 2020: Three months ended Nine months ended September 30, September 30, 2019 2020 2019 2020 Opening balance $ 3,463 $ 21,935 $ 17,073 $ 22,184 Payments made on earn-out consideration (Note a) (3,000 ) — (17,098 ) — Change in fair value of earn out consideration (Note b) — (3,773 ) — (4,452 ) Others (Note c) 14 — 502 430 Closing balance $ 477 $ 18,162 $ 477 $ 18,162 (a) Includes an interest payment on earn-out consideration in excess of the acquisition date fair value, which is included in “cash flows from operating activities” amounting to $680 and $0 for the three months ended September 30, 2019 and 2020, respectively, and $4,308 and $0 for the nine months ended September 30, 2019 and 2020, respectively. ( b ) Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. ( c ) “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 three and nine months ended September 30, 2019 and 2020: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Opening balance $ 8,994 $ 21,375 $ 1,582 $ 10,943 Additions (net of redemption) 587 792 7,564 10,367 Change in fair value of deferred compensation plan liabilities (Note a) 61 1,085 496 1,942 Closing balance $ 9,642 $ 23,252 $ 9,642 23,252 (a) Changes in the fair value of deferred compensation plan liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 As of September 30, 2020 As of December 31, 2019 As of September 30, 2020 Foreign exchange forward contracts denominated in: United States Dollars (sell) Indian Rupees (buy) $ 1,305,000 $ 1,156,000 (5,740 ) $ (1,200 ) United States Dollars (sell) Mexican Peso (buy) — 16,500 — (239 ) United States Dollars (sell) Philippines Peso (buy) 66,600 53,100 462 1,536 Euro (sell) United States Dollars (buy) 122,337 118,678 4,135 (2,457 ) Singapore Dollars (buy) United States Dollars (sell) 10,017 10,017 38 (157 ) Euro (sell) Romanian Leu (buy) 26,918 24,633 (314 ) (190 ) Japanese Yen (sell) Chinese Renminbi (buy) 29,350 18,937 (258 ) 121 Pound Sterling (sell) United States Dollars (buy) 9,089 2,278 383 159 Australian Dollars (sell) United States Dollars (buy) 35,972 — 1,924 — United States Dollars (sell) Hungarian Font (buy) 20,500 39,000 162 (1,034 ) Hungarian Font (Sell) Euro (buy) 9,534 9,971 (157 ) 580 Australian Dollars (sell) Indian Rupees (buy) — 97,038 — (1,382 ) United States Dollars (Sell) Brazilian Real (buy) — 1,000 — (51 ) Interest rate swaps (floating to fixed) 477,604 494,993 (3,565 ) (20,789 ) (2,930 ) (25,103 ) (a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. (b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. |
Fair Value of Derivative Instruments and Location in Financial Statements | The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: Cash flow hedges Non-designated As of December 31, 2019 As of September 30, 2020 As of December 31, 2019 As of September 30, 2020 Assets Prepaid expenses and other current assets $ 16,214 $ 8,424 $ 2,009 $ 6,765 Other assets $ 3,086 $ 5,498 $ — $ — Liabilities Accrued expenses and other current liabilities $ 6,152 $ 27,630 $ 814 $ 2,079 Other liabilities $ 17,273 $ 16,081 $ — $ — |
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) (“OCI”), and the related tax effects are summarized below: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Before Tax amount Tax (Expense) or Benefit* Net of tax Amount Before Tax amount Tax (Expense) or Benefit* Net of tax Amount Before Tax amount Tax (Expense) or Benefit* Net of tax Amount Before Tax amount Tax (Expense) or Benefit* Net of tax Amount Opening balance $ 11,185 $ (6,077 ) $ 5,108 $ (54,335 ) $ 9,994 $ (44,341 ) $ (2,411 ) $ (5,524 ) $ (7,935 ) $ (4,126 ) $ (1,466 ) $ (5,592 ) Net gains (losses) reclassified into statement of income on completion of hedged transactions 5,915 (1,950 ) 3,965 (3,996 ) 1,029 (2,967 ) 15,105 (5,553 ) 9,552 (4,909 ) 722 (4,187 ) Changes in fair value of effective portion of outstanding derivatives, net (9,115 ) 1,720 (7,395 ) 20,550 (3,661 ) 16,889 13,671 (2,436 ) 11,235 (30,572 ) 7,492 (23,080 ) Gain/(loss) on cash flow hedging derivatives, net (15,030 ) 3,670 (11,360 ) 24,546 (4,690 ) 19,856 (1,434 ) 3,117 1,683 (25,663 ) 6,770 (18,893 ) Closing balance $ (3,845 ) $ (2,407 ) $ (6,252 ) $ (29,789 ) $ 5,304 $ (24,485 ) $ (3,845 ) $ (2,407 ) $ (6,252 ) $ (29,789 ) $ 5,304 $ (24,485 ) * The tax (expense) benefit includes the effect of novating certain hedging instruments as part of an intercompany transfer. |
Gains (Losses) Recognized in Other Comprehensive Income (Loss) | The Company’s gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below: Amount of Gain (Loss) Amount of Gain (Loss) reclassified recognized in OCI on from OCI into Statement of Income Derivatives in Derivatives (Effective Portion) Location of Gain (Loss) (Effective Portion) Cash Flow Three months ended Nine months ended reclassified from OCI into Three months ended Nine months ended Hedging September 30, September 30, Statement of Income September 30, September 30, Relationships 2019 2020 2019 2020 (Effective Portion) 2019 2020 2019 2020 Forward foreign exchange contracts $ (7,261 ) $ 20,518 $ 22,964 $ (10,609 ) Revenue $ 1,919 $ 62 $ 4,441 $ 3,973 Interest rate swaps (1,854 ) 32 (9,293 ) (19,963 ) Cost of revenue 2,294 (1,571 ) 5,274 (4,833 ) Selling, general and administrative expenses 595 (440 ) 1,497 (1,310 ) Interest expense 1,107 (2,047 ) 3,893 (2,739 ) $ (9,115 ) $ 20,550 $ 13,671 $ (30,572 ) $ 5,915 $ (3,996 ) $ 15,105 $ (4,909 ) There were no gains (losses) recognized in income on the ineffective portion of derivatives and excluded from effectiveness testing Non-designated Hedges Amount of Gain (Loss) recognized in Statement of Income on Derivatives Three months ended September 30, Nine months ended September 30, Derivatives not designated as hedging instruments Location of Gain (Loss) recognized in Statement of Income on Derivatives 2019 2020 2019 2020 Forward foreign exchange contracts (Note a) Foreign exchange gains (losses), net $ (3,209 ) $ 7,136 $ 4,203 $ (6,698 ) Forward foreign exchange contracts (Note b) Foreign exchange gains (losses), net — — — 3,963 $ (3,209 ) $ 7,136 $ 4,203 $ (2,735 ) (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. (b) These forward foreign exchange contracts were initially designated as cash flow hedges under ASC guidance on derivatives and hedging. These contracts were terminated because certain forecasted transactions were no longer expected to occur and therefore hedge accounting was no longer applied. Subsequently the realized gains (losses) are recorded in foreign exchange gains (losses) net in the consolidated statements of income. |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: As of December 31, As of September 30, 2019 2020 Advance income and non-income taxes $ 43,763 $ 111,902 Contract asset (Note 20) 19,170 13,470 Prepaid expenses 29,734 35,200 Derivative instruments 18,223 15,189 Employee advances 4,209 3,222 Deposits 1,784 6,544 Advances to suppliers 4,289 738 Others 49,153 29,979 $ 170,325 $ 216,244 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, plant and equipment, net | The following table provides the gross and net amount of property, plant and equipment: As of December 31, 2019 As of September 30, 2020 Property, plant and equipment, gross $ 744,161 $ 769,214 Less: Accumulated depreciation, amortization and impairment (490,126 ) (531,741 ) Property, plant and equipment, net $ 254,035 $ 237,473 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | The following table presents the changes in goodwill for the year ended December 31, 2019 and nine months ended September 30, 2020: For the year ended December 31, 2019 For the nine months ended September 30, 2020 Opening balance $ 1,393,832 $ 1,574,466 Goodwill relating to acquisitions consummated during the period 185,381 — Impact of measurement period adjustments (988) — Effect of exchange rate fluctuations (3,759) (6,863) Closing balance $ 1,574,466 $ 1,567,603 The following table presents the changes in goodwill by reporting unit for the nine months ended September 30, 2020: BCMI CGRLH HMS Total Opening balance $ 417,213 555,130 602,123 1,574,466 Goodwill relating to acquisitions consummated during the period — — — — Impact of measurement period adjustments — — — — Effect of exchange rate fluctuations (1,971 ) (2,519 ) (2,373 ) (6,863 ) Closing balance $ 415,242 552,611 599,750 1,567,603 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, 2019 As of September 30, 2020 Gross carrying amount Accumulated amortization & Impairment Net Gross carrying amount Accumulated amortization & Impairment Net Customer-related intangible assets $ 415,375 329,724 85,651 413,057 348,267 64,790 Marketing-related intangible assets 84,180 50,217 33,963 83,202 57,969 25,233 Technology-related intangible assets 149,262 61,150 88,112 150,345 83,010 67,335 Intangible assets under development 26,646 3,511 23,135 22,053 2,503 19,550 675,463 444,602 230,861 668,657 491,749 176,908 |
Schedule of Impairment Charge Recorded for Various Categories of Assets | The summary below represents the impairment charge recorded for various categories of assets during the three and nine months ended September 30, 2019 and September 30, 2020: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Technology related intangibles — 347 3,511 4,878 Customer related intangibles — — — 1,239 Total Intangibles — 347 3,511 6,117 Property, plant and equipment — 327 — 4,530 Total Property, plant and equipment — 327 — 4,530 Grand Total — 674 3,511 10,647 |
Long-term debt (Tables)
Long-term debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Maturity Profile of Term Loan Outstanding Net of Debt Amortization Expense | The maturity profile of the term loan outstanding as of September 30, 2020, net of debt amortization expense, is as follows: Year ended Amount 2020 $ 8,379 2021 33,537 2022 33,564 2023 526,749 Total $ 602,229 |
Summary of Long Term Debt | A summary of the company’s long-term debt is as follows: As of December 31, 2019 As of September 30, 2020 Credit facility, net of debt amortization expense 627,359 602,229 2017 Senior Notes, net of debt amortization expense 348,814 349,209 2019 Senior Notes, net of debt amortization expense 397,132 397,569 Total $ 1,373,305 $ 1,349,007 Current portion 33,509 33,530 Non-current portion 1,339,796 1,315,477 Total $ 1,373,305 $ 1,349,007 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of December 31, As of September 30, 2019 2020 Accrued expenses $ 178,845 $ 153,235 Accrued employee cost 273,769 211,312 Earn-out consideration 6,384 5,001 Statutory liabilities 62,786 68,724 Retirement benefits 1,564 1,617 Compensated absences 26,116 28,220 Derivative instruments 6,966 29,709 Contract liabilities (Note 20) 97,313 132,754 Finance lease liability 9,740 16,211 Others 20,388 30,647 $ 683,871 $ 677,430 |
Other liabilities (Tables)
Other liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other liabilities | Other liabilities consist of the following: As of December 31, As of September 30, 2019 2020 Accrued employee cost $ 8,729 $ 18,900 Earn-out consideration 15,800 13,161 Statutory liabilities 66 21,748 Retirement benefits 13,162 17,274 Compensated absences 35,029 43,384 Derivative instruments 17,273 16,081 Contract liabilities (Note 20) 78,613 65,779 Finance lease liability 20,725 31,249 Others 19,519 28,445 $ 208,916 $ 256,021 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Defined Benefit Plan Costs | Net defined benefit plan costs for the three and nine months ended September 30, 2019 and 2020 include the following components: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Service costs $ 2,108 $ 2,733 $ 6,439 $ 8,402 Interest costs 1,138 1,267 3,479 3,898 Amortization of actuarial loss 290 615 887 1,883 Expected return on plan assets (643 ) (1,108 ) (1,967 ) (3,406 ) Net defined benefit plan costs $ 2,893 $ 3,507 $ 8,838 $ 10,777 |
Amount Contributed to Defined Contribution Plans in Various Jurisdictions | During the three and nine months ended September 30, 2019 and 2020, the Company contributed the following amounts to defined contribution plans in various jurisdictions: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 India $ 7,805 $ 7,289 $ 21,757 $ 22,362 U.S. 4,655 4,654 13,676 13,935 U.K. 2,634 2,836 9,290 8,719 China 4,693 4,691 14,111 11,953 Other regions 1,388 2,628 4,244 7,464 Total $ 21,175 $ 22,098 $ 63,078 $ 64,433 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Significant Assumptions used in Determining Fair Value of Options Granted | The following table shows the significant assumptions used in determining the fair value of options granted in the nine months ended September 30, 2019 and 2020. The Company granted 1,881,068 options in the nine months ended September 30, 2019. Nine months ended September 30, 2019 Nine months ended September 30, 2020 Dividend yield 0.82% - 1.08% 0.89 % Expected life (in months) 84 84 Risk-free rate of interest 1.56% - 2.63% 1.50 % Volatility 21.0% - 21.38% 20.96 % |
Summary of Stock Option Activity | A summary of stock option activity during the nine months ended September 30, 2020 is set out below: Nine months ended September 30, 2020 Shares arising out of options Weighted average exercise price Weighted average remaining contractual life Aggregate intrinsic value Outstanding as of January 1, 2020 8,360,212 $ 25.33 6.5 $ — Granted 431,924 43.94 — — Forfeited (752,261) 30.09 — — Expired — — — — Exercised (542,634 ) 20.03 — 8,802 Outstanding as of September 30, 2020 7,497,241 $ 26.31 5.9 $ 96,908 Vested as of September 30, 2020 and expected to vest thereafter (Note a) 7,311,736 $ 26.19 5.9 $ 95,303 Vested and exercisable as of September 30, 2020 2,863,405 $ 19.50 2.9 $ 55,703 Weighted average grant date fair value of grants during the period $ 9.72 (a) Options expected to vest reflect an estimated forfeiture rate. |
Summary of Restricted Share Units Activity | A summary of RSU activity during the nine months ended September 30, 2020 is set out below: Nine months ended September 30, 2020 Number of Restricted Share Units Weighted Average Grant Date Fair Value Outstanding as of January 1, 2020 1,261,706 $ 31.41 Granted 296,332 40.40 Vested (Note a) (582,608) 27.77 Forfeited (57,052) 37.45 Outstanding as of September 30, 2020 918,378 $ 36.24 Expected to vest (Note b) 814,622 (a) 582,608 (b) The number of RSUs expected to vest reflects the application of an estimated forfeiture rate. |
Summary of Performance Units Activity | A summary of PU activity during the nine months ended September 30, 2020 is set out below: Nine months ended Sept 30, 2020 Number of Performance Units Weighted Average Grant Date Fair Value Maximum Shares Eligible to Receive Outstanding as of January 1, 2020 6,058,464 $ 31.07 6,058,464 Granted 1,253,766 42.49 2,507,532 Vested (Note a) (1,496,377) 25.21 (1,496,377) Forfeited (494,654) 33.65 (511,928) Adjustment upon final determination of level of performance goal achievement (Note b) 6,503 34.72 6,503 Outstanding as of September 30, 2020 5,327,702 $ 35.17 6,564,194 Expected to vest (Note c) 4,699,601 (a) 1,496,377 PSUs that vested during the period were net settled upon vesting by issuing 902,532 shares (net of minimum statutory tax withholding). (b) Represents an adjustment made in March 2020 to the number of shares subject to the PUs granted in 2019 upon certification of the level of achievement of the performance targets underlying such awards. (c) The number of PUs expected to vest reflects the application of an estimated forfeiture rate. |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Net income available to Genpact Limited common shareholders $ 88,120 $ 85,435 $ 222,683 $ 233,294 Weighted average number of common shares used in computing basic earnings per common share 190,599,049 190,949,108 190,071,418 190,705,671 Dilutive effect of stock-based awards 5,291,792 5,706,032 4,612,281 5,394,396 Weighted average number of common shares used in computing dilutive earnings per common share 195,890,841 196,655,140 194,683,699 196,100,067 Earnings per common share attributable to Genpact Limited common shareholders Basic $ 0.46 $ 0.45 $ 1.17 $ 1.22 Diluted $ 0.45 $ 0.43 $ 1.14 $ 1.19 |
Segment reporting (Tables)
Segment reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 three months ended September Reportable segments BCMI CGRLH HMS Others* Total Revenues, net 283,806 318,290 339,008 (5,581 ) 935,523 Adjusted income from operations 38,771 47,847 60,990 12,365 159,973 Stock-based compensation (19,487 ) Amortization and impairment of acquired intangible assets (other than included above) (9,995 ) Foreign exchange gains (losses), net (2,402 ) Interest income (expense), net (12,757 ) Restructuring expenses (refer (a) below and note 27) (4,889 ) Income tax expense (25,008 ) Net income 85,435 Revenues and adjusted income from operations for each of the Company’s segments for the nine months ended September Reportable segments BCMI CGRLH HMS Others** Total Revenues, net 805,807 930,203 1,045,920 (23,121 ) 2,758,809 Adjusted income from 0perations 88,888 134,691 178,741 38,873 441,193 Stock-based compensation (55,818 ) Amortization and impairment of acquired intangible assets (other than included above) (32,218 ) Foreign exchange gains (losses), net 11,611 Interest income (expense), net (38,072 ) Restructuring expenses (refer (b) below and note 27) (26,547 ) Income tax expense (66,855 ) Net income 233,294 19. Segment reporting (Continued) Revenues and adjusted income from operations for each of the Company’s segments for the three months ended September Reportable segments BCMI CGRLH HMS Others# Total Revenues, net 282,158 273,077 338,172 (4,608 ) 888,799 Adjusted income from operations 32,683 42,697 58,520 8,415 142,315 Stock-based compensation (21,320 ) Amortization of acquired intangible assets (other than included above) (6,712 ) Foreign exchange gains (losses), net 6,727 Interest income (expense), net (10,221 ) Income tax expense (22,669 ) Net income 88,120 Revenues and adjusted income from operations for each of the Company’s segments for the nine months ended September Reportable segments BCMI CGRLH HMS Others## Total Revenues, net 798,171 802,714 988,691 (9,773 ) 2,579,804 Adjusted income from operations 88,796 115,243 175,285 20,548 399,872 Stock-based compensation (61,307 ) Amortization of acquired intangible assets (other than included above) (22,689 ) Acquisition-related expenses (967 ) Foreign exchange gains (losses), net 3,646 Interest income (expense), net (33,487 ) Income tax expense (62,385 ) Net income 222,683 |
Net revenues (Tables)
Net revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenues [Abstract] | |
Net Revenues Disaggregated by Customer | In the following table, the Company’s revenue is disaggregated by customer classification: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 GE $ 121,096 $ 111,348 $ 348,742 $ 349,762 Global clients 767,703 824,175 2,231,062 2,409,047 Total net revenues $ 888,799 $ 935,523 $ 2,579,804 $ 2,758,809 |
Details of Contract Balances | The following table shows the details of the Company’s contract balances: Particulars As of December 31, 2019 As of September 30, 2020 Contract assets (Note a) $ 40,346 $ 31,195 Contract liabilities (Note b) Deferred transition revenue $ 131,108 $ 116,358 Advance from customers $ 44,818 $ 82,175 |
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 September 30, 2020: Particulars Total Less than 1 year 1-3 years 3-5 years After 5 years Transaction price allocated to remaining performance obligations $ 198,533 $ 132,754 $ 52,360 $ 11,264 $ 2,155 |
Summary of Contract Cost Assets | The following table provides details of the Company’s contract cost assets: Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Particulars Sales incentive programs Transition activities Sales incentive programs Transition activities Sales incentive programs Transition activities Sales incentive programs Transition activities Opening balance $ 35,593 $ 156,585 $ 32,182 $ 178,570 $ 25,891 $ 134,302 $ 35,366 $ 170,132 Closing balance 35,146 171,357 30,047 181,747 35,146 171,357 30,047 181,747 Amortization 4,496 15,106 6,094 17,935 13,044 41,701 14,329 50,397 |
Other operating (income) expe_2
Other operating (income) expense, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Operating (Income) Expense, Net | Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Write-down of intangible assets and property, plant and equipment * $ — $ 674 $ 3,511 $ 10,647 Write-down of operating right-of-use assets and other assets * — — — 10,244 Other operating (income) expense 59 (4,192 ) (3,421 ) (5,900 ) Other operating (income) expense, net $ 59 $ (3,518 ) $ 90 $ 14,991 |
Interest income (expense), net
Interest income (expense), net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Banking And Thrift Interest [Abstract] | |
Schedule of Interest Income (Expense), Net | Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Interest income $ 1,968 $ 1,828 $ 4,758 $ 5,229 Interest expense (12,189 ) (14,585 ) (38,245 ) (43,301 ) Interest income (expense), net $ (10,221 ) $ (12,757 ) $ (33,487 ) $ (38,072 ) |
Income taxes (Tables)
Income taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions | The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions for the nine months ended September 30, 2020: 2020 Opening balance at January 1 $ 31,029 Decrease related to prior year tax positions (37 ) Decrease related to prior year tax position due to lapse of applicable statute of limitation (912 ) Increase related to current year tax positions 271 Decrease related to settlements with tax authorities (310 ) Effect of exchange rate changes (582 ) Closing balance at September 30 $ 29,459 |
Other Income (expense), net (Ta
Other Income (expense), net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Nonoperating Income Expense [Abstract] | |
Schedule of Other Income (Expense), Net | Three months ended September 30, Nine months ended September 30, 2019 2020 2019 2020 Government incentives $ — $ — $ 3,976 $ — Other income (expense) 704 960 1,091 946 Other income (expense), net $ 704 $ 960 $ 5,067 $ 946 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Sep. 30, 2020EmployeeCountry |
Accounting Policies [Abstract] | |
Number of employees around the globe, minimum | Employee | 96,300 |
Number of countries in which entity operates | Country | 30 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Estimated Useful Lives of Intangible Assets Acquired (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Customer-Related Intangible Assets | Minimum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 1 year |
Customer-Related Intangible Assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 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 | 10 years |
Technology-related intangible assets | Minimum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 2 years |
Technology-related intangible assets | Maximum | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful lives | 8 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Jan. 01, 2020 | |
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Decrease in accounts receivable due to incremental allowance for credit losses | $ (859,070) | $ (859,070) | $ (914,255) | |||
Increase in deferred tax assets | 105,160 | 105,160 | 89,715 | |||
Decrease in retained earnings | (748,621) | (748,621) | $ (648,656) | |||
ASC 326 | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Decrease in accounts receivable due to incremental allowance for credit losses | $ (910,070) | |||||
Decrease in deferred billings, due to incremental allowance for credit losses | $ (734) | $ (734) | ||||
Increase in deferred tax assets | 90,650 | |||||
Decrease in retained earnings | (644,672) | |||||
ASC 326 | Adoption of Topic 326 Increase/(Decrease) | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Decrease in accounts receivable due to incremental allowance for credit losses | 4,185 | |||||
Decrease in deferred billings, due to incremental allowance for credit losses | 734 | |||||
Increase in deferred tax assets | 935 | |||||
Decrease in retained earnings | $ 3,984 | |||||
Minimum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Additional terms of renewal option | 1 year | 1 year | ||||
Additional terms of termination option | 1 year | |||||
Maximum | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Additional terms of renewal option | 15 years | 15 years | ||||
Additional terms of termination option | 15 years | |||||
General Electric Company | Credit Concentration Risk | Receivables | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk, percentage | 17.00% | 17.00% | ||||
General Electric Company | Credit Concentration Risk | Revenue From Contract With Customer | ||||||
Schedule Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk, percentage | 12.00% | 14.00% | 13.00% | 14.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 326 on consolidated financial statements (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Schedule Of Significant Accounting Policies [Line Items] | ||||
Accounts receivable, net | $ 859,070 | $ 914,255 | ||
Other assets, net of reserve for doubtful assets of $0 and allowance for credit losses of $2,566 as of December 31, 2019 and September 30, 2020, respectively | 294,838 | 217,079 | ||
Deferred tax assets | 105,160 | 89,715 | ||
Retained earnings | $ 748,621 | $ 648,656 | ||
ASC 326 | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Accounts receivable, net | $ 910,070 | |||
Other assets, net of reserve for doubtful assets of $0 and allowance for credit losses of $2,566 as of December 31, 2019 and September 30, 2020, respectively | 216,345 | |||
Deferred tax assets | 90,650 | |||
Retained earnings | 644,672 | |||
ASC 326 | Adoption of Topic 326 Increase/(Decrease) | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Accounts receivable, net | (4,185) | |||
Other assets, net of reserve for doubtful assets of $0 and allowance for credit losses of $2,566 as of December 31, 2019 and September 30, 2020, respectively | [1] | (734) | ||
Deferred tax assets | 935 | |||
Retained earnings | $ (3,984) | |||
[1] | Represents the expected |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 326 on consolidated financial statements (Parenthetical) (Detail) $ in Thousands | Jan. 01, 2020USD ($) |
Other Assets | ASC 326 | Adoption of Topic 326 Increase/(Decrease) | |
Schedule Of Significant Accounting Policies [Line Items] | |
Expected credit loss on deferred billings | $ 7,858 |
Business Acquisitions - Right P
Business Acquisitions - Right Point Consulting LLC - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 12, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Payment for business acquisitions, net of cash acquired | $ 6,305 | ||||
Goodwill | $ 1,567,603 | $ 1,574,466 | $ 1,393,832 | ||
Goodwill deductible for tax purposes | 265,924 | $ 282,524 | |||
Acquisition related cost | $ 967 | ||||
Rightpoint Consulting LLC | |||||
Business Acquisition [Line Items] | |||||
Date of acquisition | Nov. 12, 2019 | ||||
Ownership percentage acquired | 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 | $ 18,162 | ||||
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 earn-out 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 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,567,603 | $ 1,574,466 | $ 1,393,832 | ||
Acquisition related cost | $ 967 | ||||
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 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Cash And Cash Equivalents [Abstract] | ||
Cash and other bank balances | $ 803,399 | $ 467,096 |
Total | $ 803,399 | $ 467,096 |
Accounts Receivable, Net of A_3
Accounts Receivable, Net of Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross accounts receivable | $ 884,622 | $ 944,224 | ||
Allowance for credit losses | 25,552 | 29,969 | $ 23,960 | |
Net accounts receivable | 859,070 | 914,255 | ||
Deferred billings | 23,755 | 7,858 | ||
Net deferred billings | 21,189 | 7,858 | ||
Allowances for credit losses | 2,566 | $ 0 | ||
Accounts receivable, allowance for credit loss, due after one year, current charge period | 1,832 | |||
ASC 326 | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Net accounts receivable | $ 910,070 | |||
Transition period adjustment on accounts receivables (through retained earnings) pursuant to ASC 326 | $ 734 |
Accounts Receivable, Net of A_4
Accounts Receivable, Net of Allowance for Credit Losses - Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Provisions For Doubtful Accounts [Line Items] | ||
Opening balance | $ 29,969 | $ 23,960 |
Adjusted balance as of January 1 | 34,154 | 23,960 |
Additions due to acquisitions | 1,004 | |
Additions charged/reversal released to cost and expense | 1,394 | 7,443 |
Deductions/effect of exchange rate fluctuations | (9,996) | (2,438) |
Closing balance | 25,552 | $ 29,969 |
ASC 326 | ||
Provisions For Doubtful Accounts [Line Items] | ||
Transition period adjustment on accounts receivables (through retained earnings) pursuant to adoption of ASC 326 | $ 4,185 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative instruments, assets | [1],[2] | $ 20,687 | $ 21,309 | |
Deferred compensation plan assets | 23,680 | [1],[3] | 11,208 | |
Total, assets | 44,367 | 32,517 | ||
Earnout Consideration | [4],[5] | 18,162 | 22,184 | |
Derivative instruments, liabilities | [2],[4] | 45,790 | 24,239 | |
Deferred compensation plan liability | 23,252 | [4],[6] | 10,943 | |
Total, liabilities | 87,204 | 57,366 | ||
Fair Value, Inputs, Level 2 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Derivative instruments, assets | [1],[2] | 20,687 | 21,309 | |
Total, assets | 20,687 | 21,309 | ||
Derivative instruments, liabilities | [2],[4] | 45,790 | 24,239 | |
Total, liabilities | 45,790 | 24,239 | ||
Fair Value, Inputs, Level 3 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Deferred compensation plan assets | 23,680 | [1],[3] | 11,208 | |
Total, assets | 23,680 | 11,208 | ||
Earnout Consideration | [4],[5] | 18,162 | 22,184 | |
Deferred compensation plan liability | 23,252 | [4],[6] | 10,943 | |
Total, liabilities | $ 41,414 | $ 33,127 | ||
[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 | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | $ 21,935 | $ 3,463 | $ 22,184 | $ 17,073 | |
Payments made on earn-out consideration | [1] | (3,000) | (17,098) | ||
Change in fair value of earn out consideration | [2] | (3,773) | (4,452) | ||
Others | [3] | 14 | 430 | 502 | |
Closing balance | $ 18,162 | $ 477 | $ 18,162 | $ 477 | |
[1] | Includes an interest payment on earn-out consideration in excess of the acquisition date fair value, which is included in “cash flows from operating activities” amounting to $680 and $0 for the three months ended September 30, 2019 and 2020, respectively, and $4,308 and $0 for the nine months ended September 30, 2019 and 2020, respectively. | ||||
[2] | Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. | ||||
[3] | Others” is comprised of interest expense included in “interest income (expense), net” and the impact of changes in foreign exchange reported in “foreign exchange gains (losses), net” in the consolidated statements of income. This also includes a cumulative translation adjustment reported as a component of “other comprehensive income (loss).” |
Fair Value Measurements - Rol_2
Fair Value Measurements - Roll-Forward of Fair Value of Earn-out Consideration Categorized as Level 3 in Fair Value Hierarchy (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||||
Payment of earn-out consideration include in cash flows from operating activities | $ 0 | $ 680 | $ 0 | $ 4,308 |
Fair Value Measurements - Rol_3
Fair Value Measurements - Roll-Forward of Fair Value of Deferred Compensation Plan Assets Categorized as Level 3 in Fair Value Hierarchy (Detail) - Deferred Compensation Plan Assets - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | $ 21,837 | $ 9,141 | $ 11,208 | $ 1,613 | |
Additions (net of redemption) | 639 | 579 | 10,500 | 7,564 | |
Change in fair value of deferred compensation plan assets | [1] | 1,204 | 186 | 1,972 | 729 |
Closing balance | $ 23,680 | $ 9,906 | $ 23,680 | $ 9,906 | |
[1] | Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. |
Fair Value Measurements - Rol_4
Fair Value Measurements - Roll-Forward of Fair Value of Deferred Compensation Liabilities Categorized as Level 3 in Fair Value Hierarchy (Detail) - Deferred Compensation Liabilities - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | $ 21,375 | $ 8,994 | $ 10,943 | $ 1,582 | |
Additions (net of redemption) | 792 | 587 | 10,367 | 7,564 | |
Change in fair value of deferred compensation plan liabilities | [1] | 1,085 | 61 | 1,942 | 496 |
Closing balance | $ 23,252 | $ 9,642 | $ 23,252 | $ 9,642 | |
[1] | Changes in the fair value of deferred compensation plan liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income. |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | ||||
Gains (losses) recognized in income on ineffective portion of derivatives and excluded from effectiveness testing | $ 0 | $ 0 | $ 0 | $ 0 |
Forward Foreign Exchange Contracts | Maximum | ||||
Derivative [Line Items] | ||||
Derivative financial instrument contracts, maturity period | 39 months | |||
Interest Rate Swaps | Maximum | ||||
Derivative [Line Items] | ||||
Derivative financial instrument contracts, maturity period | 39 months |
Derivative Financial Instrume_4
Derivative Financial Instruments - Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (25,103,000) | $ (2,930,000) |
United States Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,156,000,000 | 1,305,000,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (1,200,000) | (5,740,000) |
United States Dollars (sell) Philippines Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 53,100,000 | 66,600,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 1,536,000 | 462,000 |
Euro (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 118,678,000 | 122,337,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (2,457,000) | 4,135,000 |
Singapore Dollars (buy) United States Dollars (sell) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 10,017,000 | 10,017,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (157,000) | 38,000 |
Euro (sell) Romanian Leu (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 24,633,000 | 26,918,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (190,000) | (314,000) |
Japanese Yen (sell) Chinese Renminbi (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 18,937,000 | 29,350,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 121,000 | (258,000) |
Pound Sterling (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 2,278,000 | 9,089,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 159,000 | 383,000 |
Australian Dollars (sell) United States Dollars (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 35,972,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 1,924,000 | |
United States Dollars (sell) Hungarian Font (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 39,000,000 | 20,500,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (1,034,000) | 162,000 |
Hungarian Font (Sell) Euro (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 9,971,000 | 9,534,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | 580,000 | (157,000) |
Australian Dollars (sell) Indian Rupees (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 97,038,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (1,382,000) | |
United States Dollars (sell) Mexican Peso (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 16,500,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (239,000) | |
United States Dollars (Sell) Brazilian Real (buy) | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 1,000,000 | |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | (51,000) | |
Interest Rate Swap Floating To Fixed | |||
Derivative [Line Items] | |||
Derivative instrument notional principal amount | [2] | 494,993,000 | 477,604,000 |
Derivative financial instrument, balance sheet exposure asset (liability) | [1] | $ (20,789,000) | $ (3,565,000) |
[1] | Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date. | ||
[2] | Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Value of Derivative Instruments and Location in Financial Statements (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid Expenses and Other Current Assets | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | $ 6,765 | $ 2,009 |
Accrued Expenses and Other Current Liabilities | Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 2,079 | 814 |
Cash Flow Hedges | Prepaid Expenses and Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 8,424 | 16,214 |
Cash Flow Hedges | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Fair value of assets | 5,498 | 3,086 |
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | 27,630 | 6,152 |
Cash Flow Hedges | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Fair value of liabilities | $ 16,081 | $ 17,273 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||
Opening balance, before-tax amount | $ (54,335) | $ 11,185 | $ (4,126) | $ (2,411) | |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, before-tax amount | (3,996) | 5,915 | (4,909) | 15,105 | |
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount | 20,550 | (9,115) | (30,572) | 13,671 | |
Gain (loss) on cash flow hedging derivatives, net, before-tax amount | 24,546 | (15,030) | (25,663) | (1,434) | |
Closing balance, before-tax amount | (29,789) | (3,845) | (29,789) | (3,845) | |
Opening balance, tax (expense) or benefit | [1] | 9,994 | (6,077) | (1,466) | (5,524) |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, tax (expense) or benefit | [1] | 1,029 | (1,950) | 722 | (5,553) |
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit | [1] | (3,661) | 1,720 | 7,492 | (2,436) |
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit | [1] | (4,690) | 3,670 | 6,770 | 3,117 |
Closing balance, tax (expense) or benefit | [1] | 5,304 | (2,407) | 5,304 | (2,407) |
Opening balance, net of tax amount | (44,341) | 5,108 | (5,592) | (7,935) | |
Net gains (losses) reclassified into statement of income on completion of hedged transactions, net of tax amount | (2,967) | 3,965 | (4,187) | 9,552 | |
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount | 16,889 | (7,395) | (23,080) | 11,235 | |
Gain (loss) on cash flow hedging derivatives, net, net of taxes amount | 19,856 | (11,360) | (18,893) | 1,683 | |
Closing balance, net of tax amount | $ (24,485) | $ (6,252) | $ (24,485) | $ (6,252) | |
[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 (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ 20,550 | $ (9,115) | $ (30,572) | $ 13,671 | |
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | (3,996) | 5,915 | (4,909) | 15,105 | |
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | 7,136 | (3,209) | (2,735) | 4,203 | |
Net revenues | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | 62 | 1,919 | 3,973 | 4,441 | |
Cost of Revenue | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | (1,571) | 2,294 | (4,833) | 5,274 | |
Selling, General and Administrative Expenses | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | (440) | 595 | (1,310) | 1,497 | |
Interest Expense | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) reclassified from OCI into Statement of Income (Effective Portion) | (2,047) | 1,107 | (2,739) | 3,893 | |
Forward Foreign Exchange Contracts | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | 20,518 | (7,261) | (10,609) | 22,964 | |
Forward Foreign Exchange Contracts | Foreign Exchange Gains (Losses), Net | Not Designated as Hedging Instrument | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | [1] | 7,136 | (3,209) | (6,698) | 4,203 |
Forward Foreign Exchange Contracts | Foreign Exchange Gains (Losses), Net | Previously Designated as Hedging Instrument | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives | [2] | 3,963 | |||
Interest Rate Swaps | |||||
Other Comprehensive Income (Loss) [Line Items] | |||||
Amount of Gain (loss) recognized in OCI on Derivatives (Effective Portion) | $ 32 | $ (1,854) | $ (19,963) | $ (9,293) | |
[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. | ||||
[2] | These forward foreign exchange contracts were initially designated as cash flow hedges under ASC guidance on derivatives and hedging. These contracts were terminated because certain forecasted transactions were no longer expected to occur and therefore hedge accounting was no longer applied. Subsequently the realized gains (losses) are recorded in foreign exchange gains (losses) net in the consolidated statements of income. |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Advance income and non-income taxes | $ 111,902 | $ 43,763 |
Contract asset | 13,470 | 19,170 |
Prepaid expenses | 35,200 | 29,734 |
Derivative instruments | 15,189 | 18,223 |
Employee advances | 3,222 | 4,209 |
Deposits | 6,544 | 1,784 |
Advances to suppliers | 738 | 4,289 |
Others | 29,979 | 49,153 |
Prepaid expenses and other current assets, net | $ 216,244 | $ 170,325 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Abstract] | ||
Property, plant and equipment, gross | $ 769,214 | $ 744,161 |
Less: Accumulated depreciation, amortization and impairment | (531,741) | (490,126) |
Property, plant and equipment, net | $ 237,473 | $ 254,035 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ 88,273 | $ 70,234 | ||
Effect of Reclassification of Foreign Exchange (Gains) Losses | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ 68 | $ (94) | 223 | (224) |
Depreciation Expense on Property, Plant And Equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | 17,257 | 13,262 | 50,863 | 41,739 |
Computer Software | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization | $ 1,889 | $ 3,844 | $ 7,399 | $ 8,060 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Opening balance | $ 1,574,466 | $ 1,393,832 |
Goodwill relating to acquisitions consummated during the period | 185,381 | |
Impact of measurement period adjustments | (988) | |
Effect of exchange rate fluctuations | (6,863) | (3,759) |
Closing balance | $ 1,567,603 | $ 1,574,466 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Goodwill by Reporting Unit (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Opening balance | $ 1,574,466 | $ 1,393,832 |
Goodwill relating to acquisitions consummated during the period | 185,381 | |
Impact of measurement period adjustments | (988) | |
Effect of exchange rate fluctuations | (6,863) | (3,759) |
Closing balance | 1,567,603 | 1,574,466 |
BCMI | ||
Goodwill [Line Items] | ||
Opening balance | 417,213 | 398,601 |
Goodwill relating to acquisitions consummated during the period | 20,072 | |
Impact of measurement period adjustments | (380) | |
Effect of exchange rate fluctuations | (1,971) | (1,080) |
Closing balance | 415,242 | 417,213 |
CGRLH | ||
Goodwill [Line Items] | ||
Opening balance | 555,130 | 512,296 |
Goodwill relating to acquisitions consummated during the period | 44,365 | |
Impact of measurement period adjustments | (151) | |
Effect of exchange rate fluctuations | (2,519) | (1,380) |
Closing balance | 552,611 | 555,130 |
HMS | ||
Goodwill [Line Items] | ||
Opening balance | 602,123 | 482,935 |
Goodwill relating to acquisitions consummated during the period | 120,944 | |
Impact of measurement period adjustments | (457) | |
Effect of exchange rate fluctuations | (2,373) | (1,299) |
Closing balance | $ 599,750 | $ 602,123 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Line Items] | |||||
Goodwill deductible for tax purposes | $ 265,924 | $ 265,924 | $ 282,524 | ||
Amortization of acquired intangible assets | 10,235 | $ 6,960 | 31,673 | $ 23,565 | |
Intangible assets write-down | 674 | 10,647 | 3,511 | ||
Internally developed and other intangibles | |||||
Goodwill And Intangible Assets Disclosure [Line Items] | |||||
Amortization of acquired intangible assets | 6,896 | 4,990 | 20,932 | 13,244 | |
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 | $ 26 | $ (27) | $ 79 | $ (62) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 668,657 | $ 675,463 |
Accumulated amortization & Impairment | 491,749 | 444,602 |
Net | 176,908 | 230,861 |
Customer-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 413,057 | 415,375 |
Accumulated amortization & Impairment | 348,267 | 329,724 |
Net | 64,790 | 85,651 |
Marketing-Related Intangible Assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 83,202 | 84,180 |
Accumulated amortization & Impairment | 57,969 | 50,217 |
Net | 25,233 | 33,963 |
Technology-related intangible assets | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 150,345 | 149,262 |
Accumulated amortization & Impairment | 83,010 | 61,150 |
Net | 67,335 | 88,112 |
Intangible Assets Under Development [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 22,053 | 26,646 |
Accumulated amortization & Impairment | 2,503 | 3,511 |
Net | $ 19,550 | $ 23,135 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Impairment Charge Recorded for Various Categories of Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Acquired Finite Lived Intangible Assets [Line Items] | |||
Total impairment charges | $ 674 | $ 10,647 | $ 3,511 |
Total impairment charges | 347 | 6,117 | 3,511 |
Total impairment charges | 327 | 4,530 | |
Property, Plant and Equipment | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Total impairment charges | 327 | 4,530 | |
Technology-related intangible assets | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Total impairment charges | $ 347 | 4,878 | $ 3,511 |
Customer-Related Intangible Assets | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Total impairment charges | $ 1,239 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | Aug. 09, 2018 | Aug. 08, 2018 | |
Line Of Credit Facility [Line Items] | |||||
Fund-based and non-fund-based credit facilities limits available | $ 14,212,000 | $ 14,307,000 | |||
Utilization of credit facility for non fund-based usage | 6,191,000 | 7,486,000 | |||
Credit facility, amount utilized | 247,639,000 | 72,098,000 | |||
Short-term borrowings | $ 245,000,000 | $ 70,000,000 | |||
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 | $ 2,639,000 | $ 2,098,000 | |||
Fund-Based Credit Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Margin over LIBOR | 1.375% | 1.375% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 31, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | Aug. 09, 2018 | Aug. 08, 2018 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||||||
Maturity date of loan agreement | Aug. 8, 2023 | ||||||
Margin over LIBOR | 1.375% | 1.375% | 1.375% | ||||
Debt amount outstanding | $ 1,349,007,000 | $ 1,373,305,000 | |||||
Genpact Luxembourg S.r.l. | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument description | The Issuer will pay interest on the 2017 Senior Notes semi-annually in arrears on April 1 and October 1 of each year and on the 2019 Senior 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 | $ 1,271,000 | 1,641,000 | |||||
Maturity date of loan agreement | Aug. 8, 2023 | ||||||
Debt amount outstanding | $ 602,229,000 | 627,359,000 | |||||
Principal amount of term loan | $ 8,500,000 | ||||||
Credit facility, frequency of payments | quarterly | ||||||
2015 Facility | |||||||
Debt Instrument [Line Items] | |||||||
Margin over LIBOR | 1.50% | ||||||
Credit facility, base rate | 0.50% | ||||||
2015 Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 350,000,000 | ||||||
2015 Facility | Term Loan Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum borrowing capacity | 800,000,000 | ||||||
Outstanding term loan | 550,814,000 | ||||||
Extinguished outstanding term loan | 129,186,000 | ||||||
Amended 2015 Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt amortization expense | $ 2,029,000 | ||||||
Margin over LIBOR | 1.375% | ||||||
Credit facility, base rate | 0.375% | ||||||
Amended 2015 Facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 500,000,000 | $ 500,000,000 | |||||
Debt amortization expense | $ 82,000 | ||||||
Maturity date of loan agreement | Aug. 8, 2023 | ||||||
Amended 2015 Facility | Term Loan Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding term loan | $ 680,000,000 | ||||||
Additional funding | 129,186,000 | ||||||
Change to outstanding principal of term loan | $ 0 | ||||||
2017 Senior Notes | Genpact Luxembourg S.r.l. | |||||||
Debt Instrument [Line Items] | |||||||
Debt amortization expense | $ 791,000 | 1,186,000 | |||||
Debt amount outstanding | $ 349,209,000 | 348,814,000 | |||||
Principal amount of senior notes issued | $ 350,000,000 | ||||||
Interest rate on senior notes | 3.70% | ||||||
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% | ||||||
2019 Senior Notes | Genpact Luxembourg S.r.l. | |||||||
Debt Instrument [Line Items] | |||||||
Debt amortization expense | $ 2,431,000 | 2,868,000 | |||||
Debt amount outstanding | $ 397,569,000 | $ 397,132,000 | |||||
Principal amount of senior notes issued | $ 400,000,000 | ||||||
Interest rate on senior notes | 3.375% | ||||||
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 | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total | $ 1,349,007 | $ 1,373,305 |
Term Loan Credit Facility | ||
Debt Instrument [Line Items] | ||
2020 | 8,379 | |
2021 | 33,537 | |
2022 | 33,564 | |
2023 | 526,749 | |
Total | $ 602,229 | $ 627,359 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total | $ 1,349,007 | $ 1,373,305 |
Current portion of long-term debt | 33,530 | 33,509 |
Long-term debt, less current portion | 1,315,477 | 1,339,796 |
Credit facility, Net of Amortization Expenses | ||
Debt Instrument [Line Items] | ||
Total | 602,229 | 627,359 |
2017 Senior Notes, Net of Debt Amortization Expense | ||
Debt Instrument [Line Items] | ||
Total | 349,209 | 348,814 |
2019 Senior Notes, Net of Amortization Expense | ||
Debt Instrument [Line Items] | ||
Total | $ 397,569 | $ 397,132 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued expenses | $ 153,235 | $ 178,845 |
Accrued employee cost | 211,312 | 273,769 |
Earn-out consideration | 5,001 | 6,384 |
Statutory liabilities | 68,724 | 62,786 |
Retirement benefits | 1,617 | 1,564 |
Compensated absences | 28,220 | 26,116 |
Derivative instruments | 29,709 | 6,966 |
Contract liabilities (Note 20) | 132,754 | 97,313 |
Finance lease liability | 16,211 | 9,740 |
Others | 30,647 | 20,388 |
Accrued expenses and other current liabilities, net | $ 677,430 | $ 683,871 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Accrued employee cost | $ 18,900 | $ 8,729 |
Earn-out consideration | 13,161 | 15,800 |
Statutory liabilities | 21,748 | 66 |
Retirement benefits | 17,274 | 13,162 |
Compensated absences | 43,384 | 35,029 |
Derivative instruments | 16,081 | 17,273 |
Contract liabilities | 65,779 | 78,613 |
Finance lease liability | 31,249 | 20,725 |
Others | 28,445 | 19,519 |
Other Liabilities | $ 256,021 | $ 208,916 |
Employee Benefit Plans - Net De
Employee Benefit Plans - Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Service costs | $ 2,733 | $ 2,108 | $ 8,402 | $ 6,439 |
Interest costs | 1,267 | 1,138 | 3,898 | 3,479 |
Amortization of actuarial loss | 615 | 290 | 1,883 | 887 |
Expected return on plan assets | (1,108) | (643) | (3,406) | (1,967) |
Net defined benefit plan costs | $ 3,507 | $ 2,893 | $ 10,777 | $ 8,838 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | $ 22,098 | $ 21,175 | $ 64,433 | $ 63,078 |
India | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 7,289 | 7,805 | 22,362 | 21,757 |
U.K. | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 2,836 | 2,634 | 8,719 | 9,290 |
China | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 4,691 | 4,693 | 11,953 | 14,111 |
Other Regions | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | 2,628 | 1,388 | 7,464 | 4,244 |
U.S. | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plans, contributed amount | $ 4,654 | $ 4,655 | $ 13,935 | $ 13,676 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 01, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Deferred Compensation Arrangement With Individual Excluding Share Based Payments And Postretirement Benefits [Line Items] | ||||||
Deferred compensation plan liability | $ 23,252 | $ 23,252 | $ 10,943 | |||
Cash surrender value of policies | 23,680 | 23,680 | $ 11,208 | |||
Change in fair value of plan assets | 1,204 | $ 186 | 1,972 | $ 729 | ||
Change in fair value of deferred compensation liabilities | $ 1,085 | $ 61 | $ 1,942 | $ 496 | ||
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% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | Sep. 20, 2019 | Apr. 05, 2019 | Apr. 11, 2012 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | May 09, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Stock based compensation cost | $ 19,180,000 | $ 21,042,000 | $ 54,835,000 | $ 60,525,000 | ||||||
Options granted, contractual period, years | 10 years | |||||||||
Options granted | 1,881,068 | 431,924 | ||||||||
Unrecognized stock-based compensation cost for options | 21,480,000 | $ 21,480,000 | ||||||||
Employee Stock Option | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Weighted average remaining requisite vesting period | 3 years 1 month 6 days | |||||||||
Restricted Share Units (RSUs) | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Weighted average remaining requisite vesting period | 2 years 1 month 6 days | |||||||||
Shares to be issued on vested awards other than options | 44,562 | |||||||||
Vested RSU issued during the period | 44,165 | |||||||||
Unrecognized stock-based compensation cost | 20,611,000 | $ 20,611,000 | ||||||||
Performance Units | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Weighted average remaining requisite vesting period | 1 year 7 months 6 days | |||||||||
Unrecognized stock-based compensation cost | $ 66,107,000 | $ 66,107,000 | ||||||||
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) | 241,953 | 195,221 | ||||||||
Compensation expense for ESPP | $ 307,000 | $ 278,000 | $ 983,000 | $ 782,000 | ||||||
Minimum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Award, vesting period, years | 4 years | |||||||||
Minimum | Restricted Share Units (RSUs) | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Award, vesting period, years | 3 months | |||||||||
Minimum | Performance Units | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Award, vesting period, years | 6 months | |||||||||
Maximum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Award, vesting period, years | 5 years | |||||||||
Maximum | Restricted Share Units (RSUs) | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Award, vesting period, years | 4 years | |||||||||
Maximum | Performance Units | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Award, vesting period, years | 3 years | |||||||||
2007 Omnibus Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Amended Omnibus Plan, increase in number of common shares authorized for issuance | 8,000,000 | 5,593,200 | ||||||||
Number of common shares authorized for issuance | 23,000,000 | 15,000,000 | ||||||||
2017 Omnibus Incentive Compensation Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of common shares authorized for issuance | 15,000,000 |
Stock-Based Compensation - Sign
Stock-Based Compensation - Significant Assumptions used in Determining Fair Value of Options Granted (Detail) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 0.89% | |
Expected life (in months) | 84 months | 84 months |
Risk-free rate of interest | 1.50% | |
Volatility | 20.96% | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 0.82% | |
Risk-free rate of interest | 1.56% | |
Volatility | 21.00% | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 1.08% | |
Risk-free rate of interest | 2.63% | |
Volatility | 21.38% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Sep. 20, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Shares arising out of options | ||||
Outstanding, shares arising out of options, beginning balance | 8,360,212 | |||
Granted, shares arising out of options | 1,881,068 | 431,924 | ||
Forfeited, shares arising out of options | (752,261) | |||
Exercised, shares arising out of options | (542,634) | |||
Outstanding, shares arising out of options, ending balance | 7,497,241 | 8,360,212 | ||
Vested and expected to vest thereafter, shares arising out of options | [1] | 7,311,736 | ||
Vested and exercisable, shares arising out of options | 2,863,405 | |||
Weighted average grant-date fair value of options granted during the period | $ 9.72 | |||
Weighted average exercise price | ||||
Outstanding weighted average exercise price, beginning balance | 25.33 | |||
Granted, weighted average exercise price | 43.94 | |||
Forfeited, weighted average exercise price | 30.09 | |||
Exercised, weighted average exercise price | 20.03 | |||
Outstanding weighted average exercise price, ending balance | 26.31 | $ 25.33 | ||
Vested and expected to vest thereafter, weighted average exercise price | [1] | 26.19 | ||
Vested and exercisable, weighted average exercise price | $ 19.50 | |||
Weighted average remaining contractual life (years) | ||||
Outstanding weighted average remaining contractual life (years) | 6 years 2 months 12 days | 6 years 6 months | ||
Vested and expected to vest thereafter, weighted average remaining contractual life (years) | [1] | 6 years 2 months 12 days | ||
Vested and exercisable, weighted average remaining contractual life (years) | 3 years 2 months 12 days | |||
Aggregate intrinsic value | ||||
Exercised, aggregate intrinsic value | $ 8,802 | |||
Outstanding aggregate intrinsic value, ending balance | 96,908 | |||
Vested and expected to vest thereafter, aggregate intrinsic value | [1] | 95,303 | ||
Vested and exercisable, aggregate intrinsic value | $ 55,703 | |||
[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) | 9 Months Ended | |
Sep. 30, 2020$ / sharesshares | ||
Number of Restricted Share Units | ||
Outstanding number of shares (Units), beginning balance | 1,261,706 | |
Granted, number of shares (Units) | 296,332 | |
Vested, number of shares (Units) | (582,608) | [1] |
Forfeited, number of shares (Units) | (57,052) | |
Outstanding number of shares (Units), ending balance | 918,378 | |
Expected to vest, number of shares (Units) | 814,622 | [2] |
Weighted Average Grant Date Fair Value | ||
Outstanding weighted average grant date fair value, beginning balance | $ / shares | $ 31.41 | |
Granted, weighted average grant date fair value | $ / shares | 40.40 | |
Vested, weighted average grant date fair value | $ / shares | 27.77 | [1] |
Forfeited, weighted average grant date fair value | $ / shares | 37.45 | |
Outstanding weighted average grant date fair value, ending balance | $ / shares | $ 36.24 | |
[1] | 582,608 | |
[2] | The number of RSUs expected to vest reflects the application of an estimated forfeiture rate. |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Share Units Activity (Parenthetical) (Detail) - Restricted Share Units (RSUs) | 9 Months Ended | |
Sep. 30, 2020shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vested, number of shares (Units) | 582,608 | [1] |
RSUs settled on vesting by issuing shares (net of minimum tax withholding) | 336,460 | |
[1] | 582,608 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Performance Units Activity (Detail) - Performance Units | 9 Months Ended | |
Sep. 30, 2020$ / sharesshares | ||
Number of Performance Units | ||
Outstanding number of shares (Units), beginning balance | 6,058,464 | |
Granted, number of shares (Units) | 1,253,766 | |
Vested, number of shares (Units) | (1,496,377) | [1] |
Forfeited, number of shares (Units) | (494,654) | |
Adjustment upon final determination of level of performance goal achievement | 6,503 | [2] |
Outstanding number of shares (Units), ending balance | 5,327,702 | |
Expected to vest, number of shares (Units) | 4,699,601 | [3] |
Weighted Average Grant Date Fair Value | ||
Outstanding weighted average grant date fair value, beginning balance | $ / shares | $ 31.07 | |
Granted, weighted average grant date fair value | $ / shares | 42.49 | |
Vested, weighted average grant date fair value | $ / shares | 25.21 | [1] |
Forfeited, weighted average grant date fair value | $ / shares | 33.65 | |
Adjustment upon final determination of level of performance goal achievement | $ / shares | 34.72 | [2] |
Outstanding weighted average grant date fair value, ending balance | $ / shares | $ 35.17 | |
Maximum shares eligible to receive | ||
Outstanding maximum shares eligible to receive, beginning balance | 6,058,464 | |
Granted, maximum shares eligible to receive | 2,507,532 | |
Vested, maximum shares eligible to receive | (1,496,377) | [1] |
Forfeited, maximum shares eligible to receive | (511,928) | |
Adjustment upon final determination of level of performance goal achievement | 6,503 | [2] |
Outstanding maximum shares eligible to receive, ending balance | 6,564,194 | |
[1] | 1,496,377 PSUs that vested during the period were net settled upon vesting by issuing 902,532 shares (net of minimum statutory tax withholding). | |
[2] | Represents an adjustment made in March 2020 to the number of shares subject to the PUs granted in 2019 upon certification of the level of achievement of the performance targets underlying such awards. | |
[3] | The number of PUs expected to vest reflects the application of an estimated forfeiture rate. |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Performance Units Activity (Parenthetical) (Detail) | 9 Months Ended | |
Sep. 30, 2020shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Net settlement on vesting of performance units (in shares) | 902,532 | |
Performance Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vested, number of shares (Units) | 1,496,377 | [1] |
[1] | 1,496,377 PSUs that vested during the period were net settled upon vesting by issuing 902,532 shares (net of minimum statutory tax withholding). |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Sep. 23, 2020 | Jun. 26, 2020 | Mar. 18, 2020 | Feb. 06, 2020 | Sep. 20, 2019 | Jun. 21, 2019 | Mar. 20, 2019 | Feb. 07, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 |
Class Of Stock [Line Items] | ||||||||||||||
Stock repurchase authorized amount | $ 1,250,000,000 | $ 1,250,000,000 | ||||||||||||
Shares repurchased and retired (in shares) | 1,781,978 | 608,285 | ||||||||||||
Common stock shares repurchased price per share | $ 41.28 | $ 39.29 | ||||||||||||
Aggregate amount of common stock shares repurchased | $ 73,588,000 | $ 23,913,000 | ||||||||||||
Expenses related to stock purchases | 36,000 | $ 12,000 | ||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 200,491,000 | $ 200,491,000 | ||||||||||||
Percentage Increase In Quarterly Cash Dividend | 15.00% | 13.00% | ||||||||||||
Quarterly dividend declared | $ 0.0975 | $ 0.085 | $ 0.098 | $ 0.085 | $ 0.085 | $ 0.293 | $ 0.255 | $ 0.075 | ||||||
Annual dividend | $ 0.34 | $ 0.30 | ||||||||||||
Initial dividend paid | $ 18,637,000 | $ 18,595,000 | $ 18,543,000 | $ 16,208,000 | $ 16,188,000 | $ 16,119,000 | ||||||||
Dividends payable, date declared | Feb. 6, 2020 | Feb. 7, 2019 | ||||||||||||
Dividends paid per share | $ 0.0975 | $ 0.085 | ||||||||||||
Planned annual dividend | $ 0.39 | $ 0.34 | ||||||||||||
Second Quarter Dividend | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Dividend payment date | Jun. 26, 2020 | Jun. 21, 2019 | ||||||||||||
Dividends payable, date of record | Jun. 11, 2020 | Jun. 12, 2019 | ||||||||||||
First Quarter Dividend | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Dividend payment date | Mar. 18, 2020 | Mar. 20, 2019 | ||||||||||||
Dividends payable, date of record | Mar. 9, 2020 | Mar. 8, 2019 | ||||||||||||
Third Quarter Dividend [Member] | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Dividend payment date | Sep. 23, 2020 | Sep. 20, 2019 | ||||||||||||
Dividends payable, date of record | Sep. 11, 2020 | Sep. 11, 2019 | ||||||||||||
Share Repurchase Open Market | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Aggregate amount of common stock shares repurchased | $ 73,552,000 | $ 23,901,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Number of stock awards outstanding but not included in the computation of diluted earnings per common share | 60,194 | 675,214 | 2,375,425 | 1,432,789 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share (Abstract) | ||||
Net income available to Genpact Limited common shareholders | $ 85,435 | $ 88,120 | $ 233,294 | $ 222,683 |
Weighted average number of common shares used in computing basic earnings per common share | 190,949,108 | 190,599,049 | 190,705,671 | 190,071,418 |
Dilutive effect of stock-based awards | 5,706,032 | 5,291,792 | 5,394,396 | 4,612,281 |
Weighted average number of common shares used in computing dilutive earnings per common share | 196,655,140 | 195,890,841 | 196,100,067 | 194,683,699 |
Basic | $ 0.45 | $ 0.46 | $ 1.22 | $ 1.17 |
Diluted | $ 0.43 | $ 0.45 | $ 1.19 | $ 1.14 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Adjusted Income from Operations by Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues | $ 935,523 | $ 888,799 | $ 2,758,809 | $ 2,579,804 | |||||
Adjusted income from operations | 159,973 | 142,315 | 441,193 | 399,872 | |||||
Stock-based compensation | (19,487) | (21,320) | (55,818) | (61,307) | |||||
Amortization and impairment of acquired intangible assets (other than included above) | (9,995) | (32,218) | |||||||
Amortization of acquired intangible assets (other than included above) | (6,712) | (22,689) | |||||||
Acquisition-related expenses | (967) | ||||||||
Foreign exchange gains (losses), net | (2,402) | 6,727 | 11,611 | 3,646 | |||||
Interest income (expense), net | (12,757) | (10,221) | (38,072) | (33,487) | |||||
Restructuring expenses (refer (a) below and note 27) | (4,889) | [1] | $ (26,547) | (26,547) | [1] | ||||
Income tax expense | (25,008) | (22,669) | (66,855) | (62,385) | |||||
Net income | 85,435 | 88,120 | 233,294 | 222,683 | |||||
Operating Segments | BCMI | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues | 283,806 | 282,158 | 805,807 | 798,171 | |||||
Adjusted income from operations | 38,771 | 32,683 | 88,888 | 88,796 | |||||
Operating Segments | CGRLH | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues | 318,290 | 273,077 | 930,203 | 802,714 | |||||
Adjusted income from operations | 47,847 | 42,697 | 134,691 | 115,243 | |||||
Operating Segments | HMS | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues | 339,008 | 338,172 | 1,045,920 | 988,691 | |||||
Adjusted income from operations | 60,990 | 58,520 | 178,741 | 175,285 | |||||
Corporate | Others | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net revenues | (5,581) | [2] | (4,608) | [3] | (23,121) | [2] | (9,773) | [3] | |
Adjusted income from operations | $ 12,365 | [2] | $ 8,415 | [3] | $ 38,873 | [2] | $ 20,548 | [3] | |
[1] | We do not allocate these charges to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are included in our segment reporting as “unallocated costs.” | ||||||||
[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 the impact of over-absorption of overhead, unallocated allowance for credit losses and 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 segments for management’s internal reporting purposes. Adjusted income from operations for “Others” primarily represents the impact of over-absorption of overhead and foreign exchange fluctuations, which are not allocated to the Company’s segments for management’s internal reporting purposes. |
Net Revenues - Net Revenues Dis
Net Revenues - Net Revenues Disaggregated by Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 935,523 | $ 888,799 | $ 2,758,809 | $ 2,579,804 |
General Electric Company | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 111,348 | 121,096 | 349,762 | 348,742 |
Global Clients | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 824,175 | $ 767,703 | $ 2,409,047 | $ 2,231,062 |
Net Revenues - Additional Infor
Net Revenues - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues [Abstract] | ||||
Billing cycle period | 30 days | |||
Revenue recognized | $ 51,201 | $ 36,257 | $ 83,189 | $ 83,114 |
Net Revenues - Details of Contr
Net Revenues - Details of Contract Balance (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Revenues [Abstract] | |||
Contract assets | [1] | $ 31,195 | $ 40,346 |
Deferred transition revenue | [2] | 116,358 | 131,108 |
Advance from customers | [2] | $ 82,175 | $ 44,818 |
[1] | Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet. | ||
[2] | 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) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation | $ 198,533 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation | $ 132,754 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months | |
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 | $ 52,360 | |
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 | $ 11,264 | |
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 | $ 2,155 | |
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 | Jun. 30, 2020USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 198,533 |
Net Revenues - Details of Compa
Net Revenues - Details of Company's Contract Cost Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Opening balance | $ 205,498 | |||
Closing balance | 211,794 | |||
Sales Incentive Programs | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Opening balance | $ 32,182 | $ 35,593 | 35,366 | $ 25,891 |
Closing balance | 30,047 | 35,146 | 30,047 | 35,146 |
Amortization | 6,094 | 4,496 | 14,329 | 13,044 |
Process Transition Activities | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Opening balance | 178,570 | 156,585 | 170,132 | 134,302 |
Closing balance | 181,747 | 171,357 | 181,747 | 171,357 |
Amortization | $ 17,935 | $ 15,106 | $ 50,397 | $ 41,701 |
Other Operating (Income) Expe_3
Other Operating (Income) Expense, Net - Schedule of Other Operating (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Other Income And Expenses [Abstract] | |||||
Write-down of intangible assets and property, plant and equipment | [1] | $ 674 | $ 10,647 | $ 3,511 | |
Write-down of operating lease right-of-use assets and other assets | [2] | 10,244 | |||
Other operating (income) expense | (4,192) | $ 59 | (5,900) | (3,421) | |
Other operating (income) expense, net | $ (3,518) | $ 59 | $ 14,991 | $ 90 | |
[1] | See note 27 for additional information about other operating (income) expense, net for the nine months ended September | ||||
[2] | *See note 27 for additional information about other operating (income) expense, net for the nine months ended September |
Interest Income (Expense), Ne_2
Interest Income (Expense), Net - Schedule of Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | ||||
Interest income | $ 1,828 | $ 1,968 | $ 5,229 | $ 4,758 |
Interest expense | (14,585) | (12,189) | (43,301) | (38,245) |
Interest income (expense), net | $ (12,757) | $ (10,221) | $ (38,072) | $ (33,487) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 29,459 | $ 31,029 |
Unrecognized tax benefits that would impact effective tax rate | 28,265 | 29,835 |
Unrecognized tax benefits, interest on income taxes accrued | 6,174 | 5,812 |
Unrecognized tax benefits, excluding exchange rate differences for interest recognized | 525 | 826 |
Accrued penalties | $ 1,005 | $ 1,084 |
Income Taxes - Activities Relat
Income Taxes - Activities Related to Unrecognized Tax Benefits (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Income Tax Uncertainties [Abstract] | |
Beginning balance | $ 31,029 |
Decrease related to prior year tax positions | (37) |
Decrease related to prior year tax position due to lapse of applicable statute of limitation | (912) |
Increase related to current year tax positions | 271 |
Decrease related to settlements with tax authorities | (310) |
Effect of exchange rate changes | (582) |
Ending balance | $ 29,459 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Schedule of Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Nonoperating Income Expense [Abstract] | ||||
Government incentives | $ 3,976 | |||
Other income (expense) | $ 960 | $ 704 | $ 946 | 1,091 |
Other income (expense), net | $ 960 | $ 704 | $ 946 | $ 5,067 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Commitments And Contingencies [Line Items] | |||
Bank guarantees and letters of credits, outstanding | $ 8,830 | $ 9,585 | |
Liability refund adjustment from settlement with taxing authority | $ 3,569 | ||
Capital Addition Purchase Commitments | |||
Commitments And Contingencies [Line Items] | |||
Commitments and contingencies | $ 9,780 | $ 5,368 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | [1] | ||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charge | $ 4,889 | [1] | $ 26,547 | $ 26,547 | ||
Severance charge | 15,394 | |||||
Property, Plant and Equipment | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charge | 908 | |||||
Office Premises and Employee Severance Charge | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charge | $ 21,658 | |||||
Employee Severance | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance charge | $ 4,889 | |||||
Non-cash Charge | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring charge | $ 11,152 | |||||
[1] | We do not allocate these charges to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are included in our segment reporting as “unallocated costs.” |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Oct. 21, 2020 | Feb. 06, 2020 | Feb. 07, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | Oct. 27, 2020 |
Subsequent Event [Line Items] | ||||||||||
Stock repurchase authorized amount | $ 1,250,000,000 | $ 1,250,000,000 | ||||||||
Quarterly dividend declared | $ 0.0975 | $ 0.085 | $ 0.098 | $ 0.085 | $ 0.085 | $ 0.293 | $ 0.255 | $ 0.075 | ||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock repurchase , number of shares authorized to be repurchased | 1,105,000 | |||||||||
Share-based compensation arrangement by share-based payment award, per share weighted average price of shares purchased | $ 38.41 | |||||||||
Stock repurchase authorized amount | $ 42,448,000 | |||||||||
Subsequent Event [Member] | Fourth Quarter Dividend [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Quarterly dividend declared | $ 0.0975 | |||||||||
Dividend payment date | Dec. 23, 2020 | |||||||||
Dividends payable, date of record | Dec. 9, 2020 |