Cover
Cover - USD ($) | 12 Months Ended | ||
Nov. 30, 2022 | Jan. 17, 2023 | May 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Nov. 30, 2022 | ||
Current Fiscal Year End Date | --11-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-39494 | ||
Entity Registrant Name | CONCENTRIX CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-1605762 | ||
Entity Address, Address Line One | 39899 Balentine Drive | ||
Entity Address, City or Town | Newark | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94560 | ||
City Area Code | 800 | ||
Local Phone Number | 747-0583 | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Trading Symbol | CNXC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,024,187,196 | ||
Entity Common Stock, Shares Outstanding (in shares) | 52,069,609 | ||
Documents Incorporated by Reference | Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K incorporate by reference portions of the Registrant’s definitive proxy statement relating to its 2023 Annual Meeting of Stockholders (the “2023 Proxy Statement”) where indicated. The 2023 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001803599 |
Audit Information
Audit Information | 12 Months Ended |
Nov. 30, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Cincinnati, Ohio |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 145,382,000 | $ 182,038,000 |
Accounts receivable, net | 1,390,474,000 | 1,207,953,000 |
Other current assets | 218,476,000 | 153,074,000 |
Total current assets | 1,754,332,000 | 1,543,065,000 |
Property and equipment, net | 403,829,000 | 407,144,000 |
Goodwill | 2,904,402,000 | 1,813,502,000 |
Intangible assets, net | 985,572,000 | 655,528,000 |
Deferred tax assets | 48,541,000 | 48,413,000 |
Other assets | 573,092,000 | 578,715,000 |
Total assets | 6,669,768,000 | 5,046,367,000 |
Current liabilities: | ||
Accounts payable | 161,190,000 | 129,359,000 |
Current portion of long-term debt | 0 | 0 |
Accrued compensation and benefits | 506,966,000 | 453,434,000 |
Other accrued liabilities | 395,304,000 | 351,642,000 |
Income taxes payable | 68,663,000 | 33,779,000 |
Total current liabilities | 1,132,123,000 | 968,214,000 |
Long-term debt, net | 2,224,288,000 | 802,017,000 |
Other long-term liabilities | 511,995,000 | 546,410,000 |
Deferred tax liabilities | 105,458,000 | 109,471,000 |
Total liabilities | 3,973,864,000 | 2,426,112,000 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 10,000 shares authorized and no shares issued and outstanding as of November 30, 2022 and 2021, respectively | 0 | 0 |
Common stock, $0.0001 par value, 250,000 shares authorized; 52,367 and 51,927 shares issued as of November 30, 2022 and 2021, respectively, and 51,096 and 51,594 shares outstanding as of November 30, 2022 and 2021, respectively | 5,000 | 5,000 |
Additional paid-in capital | 2,428,313,000 | 2,355,767,000 |
Treasury stock, 1,271 and 333 shares as of November 30, 2022 and 2021, respectively | (190,779,000) | (57,486,000) |
Retained earnings | 774,114,000 | 392,495,000 |
Accumulated other comprehensive loss | (315,749,000) | (70,526,000) |
Total stockholders’ equity | 2,695,904,000 | 2,620,255,000 |
Total liabilities and stockholders’ equity | $ 6,669,768,000 | $ 5,046,367,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Nov. 30, 2022 | Nov. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 52,367,000 | 51,927,000 |
Common stock, shares outstanding (in shares) | 51,096,000 | 51,594,000 |
Treasury stock (in shares) | 1,271,000 | 333,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 6,324,473 | $ 5,587,015 | $ 4,719,534 |
Cost of revenue | 4,067,210 | 3,617,527 | 3,058,009 |
Gross profit | 2,257,263 | 1,969,488 | 1,661,525 |
Selling, general and administrative expenses | 1,617,071 | 1,397,091 | 1,352,764 |
Operating income | 640,192 | 572,397 | 308,761 |
Interest expense and finance charges, net | 70,076 | 23,046 | 48,313 |
Other expense (income), net | (34,887) | (6,345) | (7,447) |
Income before income taxes | 605,003 | 555,696 | 267,895 |
Provision for income taxes | 169,363 | 150,119 | 103,084 |
Net income before non-controlling interest | 435,640 | 405,577 | 164,811 |
Less: Net income attributable to non-controlling interest | 591 | 0 | 0 |
Net income attributable to Concentrix Corporation | $ 435,049 | $ 405,577 | $ 164,811 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 8.34 | $ 7.78 | $ 3.19 |
Diluted (in dollars per share) | $ 8.28 | $ 7.70 | $ 3.19 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 51,353 | 51,355 | 51,602 |
Diluted (in shares) | 51,740 | 51,914 | 51,602 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income before non-controlling interest | $ 435,640 | $ 405,577 | $ 164,811 |
Other comprehensive income (loss): | |||
Unrealized gains (losses) of defined benefit plans, net of taxes of $(4,329), $(2,761), and $3,749 for fiscal years ended November 30, 2022, 2021 and 2020, respectively | 14,274 | 15,839 | (8,644) |
Unrealized gains (losses) on cash flow hedges during the period, net of taxes of $15,427, $2,709, and $(11,478) for fiscal years ended November 30, 2022, 2021 and 2020, respectively | (45,464) | (8,396) | 34,508 |
Reclassification of net (gains) losses on cash flow hedges to net income, net of taxes of $(9,276), $7,498, and $7,581 for fiscal years ended November 30, 2022, 2021 and 2020, respectively | 26,953 | (22,246) | (22,792) |
Total change in unrealized gains (losses) on cash flow hedges, net of taxes | (18,511) | (30,642) | 11,716 |
Foreign currency translation adjustments, net of taxes of $0 for fiscal years ended November 30, 2022, 2021 and 2020, respectively | (240,986) | (51,909) | 43,196 |
Other comprehensive income (loss) | (245,223) | (66,712) | 46,268 |
Comprehensive income | 190,417 | 338,865 | 211,079 |
Less: Comprehensive income attributable to non-controlling interest | 591 | 0 | 0 |
Comprehensive income attributable to Concentrix Corporation | $ 189,826 | $ 338,865 | $ 211,079 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains (losses) of defined benefit plans, net of taxes of $(4,329), $(2,761), and $3,749 for fiscal years ended November 30, 2022, 2021 and 2020, respectively | $ (4,329) | $ (2,761) | $ 3,749 |
Unrealized gains (losses) on cash flow hedges during the period, net of taxes of $_____, $(11,478), $(5,197) for fiscal years ended November 30, 2021, 2020, and 2019, respectively | 15,427 | 2,709 | (11,478) |
Reclassification of net (gains) losses on cash flow hedges to net income, net of taxes of $(9,276), $7,498, and $7,581 for fiscal years ended November 30, 2022, 2021 and 2020, respectively | (9,276) | 7,498 | 7,581 |
Foreign currency translation adjustments, net of taxes of $0 for fiscal years ended November 30, 2022, 2021 and 2020, respectively | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Treasury stock | Retained earnings | Former parent company investment | Accumulated other comprehensive income (loss) | Noncontrolling Interest |
Beginning Balance at Nov. 30, 2019 | $ 0 | |||||||
Beginning balance (in shares) at Nov. 30, 2019 | 0 | 0 | ||||||
Beginning Balance at Nov. 30, 2019 | 1,469,841 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,519,923 | $ (50,082) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation activity | 15,572 | 15,572 | ||||||
Less: Net income attributable to non-controlling interest | 0 | |||||||
Other comprehensive income (loss) | 46,268 | 46,268 | ||||||
Capital contribution | 594,320 | 594,320 | ||||||
Transfers from former parent | (5,950) | (5,950) | ||||||
Hypothetical current tax expense recorded for separate return basis presentation | 17,223 | 17,223 | ||||||
Net income before non-controlling interest | 164,811 | 164,811 | ||||||
Ending Balance at Nov. 30, 2020 | 0 | |||||||
Ending balance (in shares) at Nov. 30, 2020 | 0 | 0 | ||||||
Ending Balance at Nov. 30, 2020 | 2,302,085 | $ 0 | 0 | $ 0 | 0 | 2,305,899 | (3,814) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation activity (in shares) | 459,000 | |||||||
Share-based compensation activity | 49,873 | 49,873 | ||||||
Repurchase of common stock for tax withholdings on equity awards (in shares) | 195,000 | |||||||
Less: Net income attributable to non-controlling interest | 0 | |||||||
Other comprehensive income (loss) | (66,712) | (66,712) | ||||||
Reclassification of net former parent investment in Concentrix | 0 | 2,305,899 | (2,305,899) | |||||
Issuance of common stock at separation and spin-off (in shares) | 51,135,000 | |||||||
Issuance of common stock at separation and spin-off | 0 | $ 5 | (5) | |||||
Repurchase of common stock for tax withholdings on equity awards | (32,390) | $ (32,390) | ||||||
Repurchase of common stock (in shares) | 138,000 | |||||||
Repurchase of common stock | (25,096) | $ (25,096) | ||||||
Dividends | (13,082) | (13,082) | ||||||
Net income before non-controlling interest | 405,577 | 405,577 | ||||||
Ending Balance at Nov. 30, 2021 | $ 0 | |||||||
Ending balance (in shares) at Nov. 30, 2021 | 51,594,000 | 51,594,000 | 333,000 | |||||
Ending Balance at Nov. 30, 2021 | $ 2,620,255 | $ 5 | 2,355,767 | $ (57,486) | 392,495 | 0 | (70,526) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation activity (in shares) | 773,000 | |||||||
Share-based compensation activity | 56,730 | 56,730 | ||||||
Equity awards issued as acquisition purchase consideration | 15,725 | 15,725 | ||||||
Repurchase of common stock for tax withholdings on equity awards (in shares) | 96,000 | |||||||
Acquisition of non-controlling interest in subsidiary | 2,000 | |||||||
Less: Net income attributable to non-controlling interest | 591 | |||||||
Purchase of non-controlling interest in subsidiary | 91 | 91 | $ (2,591) | |||||
Other comprehensive income (loss) | (245,223) | (245,223) | ||||||
Repurchase of common stock for tax withholdings on equity awards | (12,474) | $ (12,474) | ||||||
Repurchase of common stock (in shares) | 842,000 | |||||||
Repurchase of common stock | (120,819) | $ (120,819) | ||||||
Dividends | (53,430) | (53,430) | ||||||
Net income before non-controlling interest | 435,049 | 435,049 | ||||||
Ending Balance at Nov. 30, 2022 | $ 0 | |||||||
Ending balance (in shares) at Nov. 30, 2022 | 51,096,000 | 52,367,000 | 1,271,000 | |||||
Ending Balance at Nov. 30, 2022 | $ 2,695,904 | $ 5 | $ 2,428,313 | $ (190,779) | $ 774,114 | $ 0 | $ (315,749) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Cash flows from operating activities: | |||
Net income before non-controlling interest | $ 435,640 | $ 405,577 | $ 164,811 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 146,864 | 140,236 | 129,283 |
Amortization | 162,673 | 136,939 | 147,283 |
Non-cash share-based compensation | 47,142 | 36,176 | 15,572 |
Provision for doubtful accounts | 3,329 | (202) | 8,140 |
Deferred income taxes | (30,824) | (25,729) | (19,850) |
Hypothetical current tax expense recorded for separate return basis presentation | 0 | 0 | 17,223 |
Unrealized foreign exchange loss (gain) | 374 | (305) | 5,647 |
Gain on divestitures and related transaction costs | 0 | (13,197) | 0 |
Other | 537 | 140 | 1,932 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (53,129) | (139,104) | (124,093) |
Payable to former parent | 0 | (22,825) | 4,230 |
Accounts payable | 14,626 | (4,546) | 36,557 |
Other operating assets and liabilities | (126,512) | 1,018 | 120,879 |
Net cash provided by operating activities | 600,720 | 514,178 | 507,614 |
Cash flows from investing activities: | |||
Repayments of loan to non-Concentrix subsidiary of former parent as part of its centralized treasury operations | 0 | 0 | 67,676 |
Purchases of property and equipment | (140,018) | (149,079) | (171,332) |
Acquisitions of business, net of cash and restricted cash acquired | (1,698,261) | (3,279) | (5,560) |
Proceeds from divestitures, net of cash sold | 0 | 73,708 | 0 |
Other investments | (1,000) | 0 | 0 |
Net cash used in investing activities | (1,839,279) | (78,650) | (109,216) |
Cash flows from financing activities: | |||
Proceeds from the Securitization Facility | 1,831,000 | 1,316,000 | 250,000 |
Repayments of the Securitization Facility | (1,579,500) | (1,461,000) | 0 |
Cash paid for debt issuance costs | (9,331) | 0 | (8,521) |
Repayments of borrowings from former parent | 0 | 0 | (1,476,703) |
Purchase of non-controlling interest in subsidiary | (2,500) | 0 | 0 |
Proceeds from exercise of stock options | 9,588 | 13,697 | 0 |
Repurchase of common stock for tax withholdings on equity awards | (12,474) | (32,390) | 0 |
Repurchase of common stock | (120,819) | (25,096) | 0 |
Dividends paid | (53,430) | (13,082) | 0 |
Net cash provided by (used in) financing activities | 1,237,534 | (401,871) | (335,224) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (24,522) | (6,998) | 9,663 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (25,547) | 26,659 | 72,837 |
Cash, cash equivalents and restricted cash at beginning of year | 183,010 | 156,351 | 83,514 |
Cash, cash equivalents and restricted cash at end of year | 157,463 | 183,010 | 156,351 |
Supplemental disclosures of cash flow information: | |||
Interest paid on borrowings | 67,601 | 20,775 | 0 |
Income taxes paid | 143,865 | 159,826 | 76,609 |
Non-cash capital contribution from former parent | 0 | 0 | 594,320 |
Supplemental disclosure of non-cash investing activities: | |||
Accrued costs for property and equipment purchases | 12,675 | 16,251 | 9,398 |
Term Loan | |||
Cash flows from financing activities: | |||
Proceeds from the Credit Facility - Term Loan | 2,100,000 | 0 | 0 |
Repayments of the Credit Facility - Term Loan | (225,000) | 0 | 0 |
Proceeds from the Credit Facility - Term Loan | 2,100,000 | 0 | 0 |
Repayments of the Credit Facility - Term Loan | 225,000 | 0 | 0 |
Prior Term Loan | |||
Cash flows from financing activities: | |||
Proceeds from the Credit Facility - Term Loan | 0 | 0 | 900,000 |
Repayments of the Credit Facility - Term Loan | (700,000) | (200,000) | 0 |
Proceeds from the Credit Facility - Term Loan | 0 | 0 | 900,000 |
Repayments of the Credit Facility - Term Loan | $ 700,000 | $ 200,000 | $ 0 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION | 12 Months Ended |
Nov. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION: Background Concentrix Corporation (“Concentrix,” the “CX business” or the “Company”) is a leading global provider of Customer Experience (“CX”) solutions and technology that help iconic and disruptive brands drive deep understanding, full lifecycle engagement, and differentiated experiences for their end-customers around the world. The Company provides end-to-end capabilities, including CX process optimization, technology innovation and design engineering, front- and back-office automation, analytics and business transformation services to clients in five primary industry verticals. The Company’s primary verticals are technology and consumer electronics, retail, travel and e-commerce, communications and media, banking, financial services and insurance, and healthcare. On December 1, 2020, Concentrix and the CX business were separated from SYNNEX Corporation, now known as TD SYNNEX Corporation (“TD SYNNEX” or the “former parent”), through a tax-free distribution of all of the issued and outstanding shares of the Company’s common stock to TD SYNNEX stockholders (such separation and distribution, the “spin-off”). TD SYNNEX stockholders received one share of the Company’s common stock for each share of TD SYNNEX common stock held as of the close of business on November 17, 2020. As a result of the spin-off, the Company became an independent public company and the Company’s common stock commenced trading on the Nasdaq Stock Market (“Nasdaq”) under the symbol “CNXC” on December 1, 2020. In connection with the spin-off, on November 30, 2020, the Company entered into a separation and distribution agreement, an employee matters agreement, a tax matters agreement and a commercial agreement with TD SYNNEX to set forth the principal actions to be taken in connection with the spin-off and define the Company’s ongoing relationship with TD SYNNEX after the spin-off. Basis of presentation (including principles of consolidation) The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company, its majority-owned subsidiaries and entities over which the Company has control. All intercompany balances and transactions have been eliminated in consolidation. Prior to the spin-off on December 1, 2020 Prior to the spin-off, the CX business was held entirely within certain wholly-owned subsidiaries of TD SYNNEX dedicated to the CX business. As the separate legal entities that make up the CX business were not historically held by a single legal entity, the financial statements of the Company were prepared in connection with the expected separation and were derived from the TD SYNNEX consolidated financial statements and accounting records as if the Company had been operated on a stand-alone basis during the periods presented. Accordingly, for periods prior to December 1, 2020, the Company’s financial statements are presented on a combined basis, and for the periods subsequent to December 1, 2020, they are presented on a consolidated basis (all periods hereinafter are referred to as “consolidated financial statements”). All direct revenue and expenses attributable to the CX business, including certain allocations of former parent costs and expenses, were separately maintained in a separate ledger in the legal entities that make up the CX business. As the separate legal entities that make up the CX business were not historically held by a single legal entity, former parent company investment was shown in lieu of stockholders’ equity in the prior year periods. All significant intercompany balances and transactions between the legal entities that comprise the CX business were eliminated. Management of the Company and former parent consider allocations of former parent costs to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, have reflected the expense the Company would have incurred as a stand-alone company for those periods presented. Actual costs that may have been incurred if the Company had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and other strategic decisions. Prior to the spin-off, certain Concentrix legal entities in the United States jointly and severally guaranteed certain of TD SYNNEX’ borrowing arrangements and substantially all of the assets of these Concentrix legal entities secured TD SYNNEX’ obligations under the borrowing arrangements. Historically, Concentrix received or provided funding for acquisitions or ongoing operations as part of TD SYNNEX’ centralized treasury program. Accordingly, only cash amounts specifically recorded in the separate Concentrix ledger were reflected in the balance sheets. The Company reflected transfers of the cash from the former parent’s cash management system as loans or other accounts payable to the former parent or a reduction of accounts or loans receivable in the prior year balance sheet based on the purpose for which the cash was provided by the former parent. Similarly, cash transfers to the former parent were reflected as reductions of loans or other accounts payable to the former parent or loans receivable from the former parent. The cash payments and receipts were recorded in the prior year statements of cash flows as operating or financing activities based on the nature of the transactions for which the funds were transferred between the Company and the former parent. Prior to the spin-off, operations of Concentrix were included in the consolidated U.S. federal, and certain state and local income tax returns filed by TD SYNNEX, where applicable. Concentrix also filed certain separate state, local and foreign tax returns. Income tax expense and other income tax related information contained in the financial statements prior to the spin-off were presented on a separate return basis, which required the Company to estimate tax expense as if the Company filed a separate return apart from TD SYNNEX. The income taxes of Concentrix as presented in the financial statements for these periods may not be indicative of the income taxes that Concentrix has incurred following the spin-off or will incur in the future. Risks and uncertainties related to the COVID-19 pandemic At its height, the COVID-19 pandemic had a significant negative effect on the global economy, supply chains and labor force participation, and created significant volatility in financial markets. The Company successfully transitioned a significant portion of its workforce to a remote working environment throughout the second quarter of 2020 and implemented a number of safety and social distancing measures in the Company’s sites to protect the health and safety of staff. During fiscal year 2022, almost all of the Company’s workforce was productive, but the Company experienced the continued effects of the COVID-19 pandemic, as variants caused new waves of COVID-19 cases around the globe. The extent of the future impact of the COVID-19 pandemic on the Company’s operational and financial performance, including its ability to execute business strategies and initiatives in the expected time frame, will depend on future developments, including the duration, spread and severity of the pandemic, the evolution of the virus and the effects of mutations in its genetic code, country and state restrictions regarding virus containment, the availability and effectiveness of vaccines and treatment options, accessibility to the Company’s delivery and operations locations, its continued utilization of remote work environments in response to future health and safety restrictions, the Company’s clients’ acceptance of remote work environments, and the effect on the Company’s clients’ businesses and the demand for their products and services, all of which are uncertain and cannot be predicted. The Company is unable to predict how long the pandemic conditions will persist in regions in which the Company operates, if or when countries or localities may experience an increase in COVID-19 cases, what additional measures may be introduced by governments or the Company’s clients in response to the pandemic generally or to an increase in COVID-19 cases in a particular country or locality, and the effect of any such additional measures on the Company’s business. As a result, many of the estimates and assumptions used in preparation of these consolidated financial statements required increased judgment and carry a higher degree of |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. The Company evaluates these estimates on a regular basis and bases them on historical experience and on various assumptions that the Company believes are reasonable. Actual results could differ from the estimates. Segment reporting Concentrix operations are based on an integrated global delivery model whereby services under a client contract in one location may be provided from delivery centers located in one or more different countries, with more than half of the Company’s workforce located in the Philippines and India. Given the homogeneity of technology-infused CX services and the integrated delivery model, the Company operates in a single segment, based on how the chief operating decision maker (“CODM”) views and evaluates the Company’s operations in making operational and strategic decisions and assessments of financial performance. The Company’s President and Chief Executive Officer has been identified as the CODM. Cash equivalents The Company considers all highly liquid debt instruments purchased with an original maturity or remaining maturity at the date of purchase of three months or less to be cash equivalents. Cash equivalents consist principally of money market deposit accounts that are stated at cost, which approximates fair value. The Company is exposed to credit risk in the event of default by financial institutions to the extent that cash balances with financial institutions are in excess of amounts that are insured. Accounts receivable and allowance for doubtful accounts Accounts receivable are comprised primarily of amounts owed to the Company by clients and are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts is an estimate to cover the losses resulting from uncertainty regarding collections from customers to make payments for outstanding balances. In estimating the required allowance, the Company considers the overall quality and aging of the accounts receivable and credit evaluations of its clients’ financial condition. The Company also evaluates the collectability of accounts receivable based on specific client circumstances, current economic trends, historical experience with collections and the value and adequacy of any collateral received from clients. Unbilled receivables In the majority of service contracts, the Company performs the services prior to billing the client, and this amount is captured as an unbilled receivable included in accounts receivable, net on the consolidated balance sheet. Billing usually occurs in the month after the Company performs the services or in accordance with the specific contractual provisions. Derivative financial instruments The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of “Accumulated other comprehensive income (loss),” in stockholders’ equity and reclassified into earnings in the same line associated with the forecasted transactions, in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. For derivative instruments that are not designated as cash flow hedges, gains and losses on derivative instruments are reported in the consolidated statements of operations in the current period. Software costs The Company develops software platforms for internal use. The Company capitalizes costs incurred to develop software subsequent to the software product reaching the application development stage. The Company also capitalizes the costs incurred to extend the life of existing software, or the cost of significant enhancements that are added to the features of existing software. The capitalized development costs primarily comprise payroll costs and related software costs. Capitalized costs are amortized over the economic life of the software using the straight line method. Property and equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight line method based upon the shorter of the estimated useful lives of the assets, or the lease term of the respective assets, if applicable. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in operations in the period realized. The ranges of estimated useful lives for property and equipment categories are as follows: Equipment and furniture 3 - 10 years Software 3 - 7 years Leasehold improvements 2 - 15 years Buildings and building improvements 10 - 39 years Leases The Company enters into leases as a lessee for property and equipment in the ordinary course of business. When procuring services, or upon entering into a contract with its clients, the Company determines whether an arrangement contains a lease at its inception. As part of that evaluation, the Company considers whether there is an implicitly or explicitly identified asset in the arrangement and whether the Company, as the lessee, or the client, if the Company is the lessor, has the right to control the use of that asset. When the Company is the lessee, all leases with a term of more than 12 months are recognized as right-of-use (“ROU”) assets and associated lease liabilities in the consolidated balance sheet. Lease liabilities are measured at the lease commencement date and determined using the present value of the lease payments not yet paid, at the Company’s incremental borrowing rate, which approximates the rate at which the Company would borrow on a secured basis in the country where the lease was executed. The interest rate implicit in the lease is generally not determinable in the transactions where the Company is the lessee. The ROU asset equals the lease liability adjusted for any initial direct costs, prepaid rent and lease incentives. The Company’s variable lease payments generally relate to payments tied to various indexes, non-lease components and payments above a contractual minimum fixed amount. Operating leases are included in other assets, net, other accrued liabilities and other long-term liabilities in the consolidated balance sheet. Substantially all of the Company’s leases are classified as operating leases. The Company recognizes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company made a policy election to not recognize leases with a lease term of 12 months or less in the consolidated balance sheet. Lease expenses are recorded within selling, general, and administrative expenses in the consolidated statements of operations. Operating lease payments are presented within “Cash flows from operating activities” in the consolidated statements of cash flows. For all asset classes, the Company has elected the lessee practical expedient to combine lease and non-lease components (e.g., maintenance services) and account for the consolidated unit as a single lease component. Variable lease payments are recognized in the periods in which the obligations for those payments are incurred. Business combinations The purchase price is allocated to the assets acquired, liabilities assumed, and non-controlling interests in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired entity and the Company and the value of the acquired assembled workforce, neither of which qualify for recognition as an intangible asset. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. The Company includes the results of operations of the acquired business in the consolidated financial statements prospectively from the date of acquisition. Acquisition-related charges are recognized separately from the business combination and are expensed as incurred. These charges primarily include direct third-party professional and legal fees and integration-related costs. Goodwill and intangible assets The Company tests goodwill for impairment annually at the reporting unit level in the fiscal fourth quarter or more frequently if events or changes in circumstances indicate that it may be impaired. For purposes of the goodwill impairment test, the Company can elect to perform a quantitative or qualitative analysis. If the qualitative analysis is elected, goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. The factors that are considered in the qualitative analysis include: macroeconomic conditions; industry and market considerations; cost factors such as increases in labor, or other costs that would have a negative effect on earnings and cash flows; and other relevant entity-specific events and information. If the Company elects to perform or is required to perform a quantitative analysis, then the reporting unit’s carrying value is compared to its fair value. As part of this analysis, the Company reconciles the fair value of its reporting unit to its market capitalization. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value and the excess is recognized as an impairment loss. No goodwill impairment has been identified for any of the fiscal years presented in these consolidated financial statements. The values assigned to intangible assets are based on estimates and judgment regarding expectations for the length of customer relationships and the success of life cycle of technologies acquired in a business combination. Purchased intangible assets are amortized over the useful lives based on estimates of the use of the economic benefit of the asset or by using the straight line method. Intangible assets consist of customer relationships, technology, trade names and non-compete agreements. Amortization is based on the pattern over which the economic benefits of the intangible assets will be consumed or, when the consumption pattern is not apparent, by using the straight line method over the following useful lives: Customer relationships 10 - 15 years Technology 5 years Trade names 3 - 5 years Non-compete agreements 3 years Impairment of long-lived assets The Company reviews the recoverability of its long-lived assets, such as intangible assets subject to amortization, property and equipment and certain other assets, including lease right-of-use assets, when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows, undiscounted and without interest charges, of the related operations. If these cash flows are less than the carrying value of such assets, an impairment loss is recognized for the difference between estimated fair value and carrying value. Concentration of credit risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash and cash equivalents, accounts receivable and derivative instruments. The Company’s cash and cash equivalents and derivative instruments are transacted and maintained with financial institutions with high credit standing, and their compositions and maturities are regularly monitored by management. Through November 30, 2022, the Company has not experienced any credit losses on such deposits and derivative instruments. Accounts receivable comprise amounts due from clients. The Company performs ongoing credit evaluations of its clients’ financial condition and limits the amount of credit extended when deemed necessary, but generally requires no collateral. The Company also maintains allowances for potential credit losses. In estimating the required allowances, the Company takes into consideration the overall quality and aging of its receivable portfolio and specifically identified client risks. In fiscal year 2022, no client accounted for more than 10% of the Company’s consolidated revenue. In fiscal years 2021 and 2020, one client accounted for 11.9% and 11.5%, respectively, of the Company’s consolidated revenue. As of November 30, 2022 and 2021, one client comprised 12.4% and 15.3%, respectively, of the Company’s total accounts receivable balance. Revenue recognition The Company generates revenue primarily from the provision of CX solutions and technology to its clients . The Company recognizes revenue from services contracts over time as the promised services are delivered to clients for an amount that reflects the consideration to which the Company is entitled in exchange for those services. The Company recognizes revenue over time as the client simultaneously receives and consumes the benefits provided by the Company as the Company performs the services. The Company accounts for a contract with a client when it has written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. Revenue is presented net of taxes collected from clients and remitted to government authorities. The Company generally invoices a client after performance of services, or in accordance with specific contractual provisions. Payments are due as per contract terms and do not contain a significant financing component. The Company determines whether the services performed during the initial phases of an arrangement, such as setup activities, are distinct. In most cases, the arrangement is a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). Service contracts are most significantly based on a fixed unit-price per transaction or other objective measure of output. Revenue on unit-price transactions is recognized over time using an objective measure of output such as staffing hours or the number of transactions processed by service advisors. Certain contracts may be based on a fixed price. Revenue on fixed price contracts is recognized over time using an input measure or on a straight-line basis over the term of the contract as the services are provided based on the nature of the contract. Client contract terms can range from less than one year to more than five years. Certain client contracts include incentive payments from the client upon achieving certain agreed-upon service levels and performance metrics or service level agreements that could result in credits or refunds to the client. Revenue relating to such arrangements is accounted for as variable consideration when the likely 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. Cost of revenue Recurring direct operating costs for services are recognized as incurred. Cost of services revenue consists primarily of personnel costs and transition and initial set up costs. Selling, general and administrative expenses Selling, general and administrative expenses are charged to income as incurred. Expenses of promoting and selling products and services are classified as selling expense and include such items as compensation, sales commissions and travel. General and administrative expenses include such items as compensation, cost of delivery centers, legal and professional costs, office supplies, non-income taxes, insurance and utility expenses. In addition, selling, general and administrative expenses include other operating items such as allowances for credit losses, depreciation and amortization of non-technology related intangible assets. Advertising Costs related to advertising and service promotion expenditures are charged to “Selling, general and administrative expenses” as incurred. To date, net costs related to advertising and promotion expenditures have not been material. Income taxes Prior to December 1, 2020, the Company’s operations were included in the tax returns filed by the respective former parent entities of which the Company’s businesses were a part. For the fiscal year ended November 30, 2020, income tax expense and other income tax related information contained in these consolidated financial statements are presented on a separate return basis as if the Company filed its own tax returns. The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Tax on global low-taxed intangible income is accounted for as a current expense in the period in which the income is includable in a tax return using the “period cost” method. Valuation allowances are provided against deferred tax assets that are not likely to be realized. The Company recognizes tax benefits from uncertain tax positions only if that tax position is more likely than not to be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits in the provisions for income taxes. Foreign currency translations The functional currencies of the legal entities’ financial statements included in these consolidated financial statements are the local currencies of the legal entities and are translated into U.S. dollars for consolidation as follows: assets and liabilities at the exchange rate as of the balance sheet date, equity at the historical rates of exchange, and income and expense amounts at the average exchange rate for the month. Translation adjustments resulting from the translation of the legal entities’ accounts are included in “Accumulated other comprehensive income (loss).” Transactions denominated in currencies other than the applicable functional currency are converted to the functional currency at the exchange rate on the transaction date. At period end, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange rates. Gains and losses resulting from foreign currency transactions are included within “Other expense (income), net.” Other comprehensive income The primary components of other comprehensive income for the Company include foreign currency translation adjustments arising from the combination of foreign legal entities engaged in the CX business, unrealized gains and losses on cash flow hedges, and changes in unrecognized pension and post-retirement benefits. Share-based compensation Share-based compensation cost for stock options, restricted stock awards and restricted stock units is determined based on the fair value at the measurement date. The Company recognizes share-based compensation cost as expense for these awards ratably on a straight-line basis over the requisite service period. Share-based compensation for performance-based restricted stock units is measured based on fair value at the initial measurement date and is adjusted each reporting period, as necessary, to reflect changes in management’s assessment of the probability that performance conditions will be satisfied and, for certain awards, to reflect changes in the Company’s stock price. The Company recognizes share-based compensation cost associated with its performance-based restricted stock units over the requisite service period if it is probable that the performance conditions will be satisfied. The Company accounts for expense reductions that result from the forfeiture of unvested awards in the period that the forfeitures occur. Pension and post-retirement benefits The funded status of the Company’s pension and other post-retirement benefit plans is recognized in the consolidated balance sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at November 30, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and, for the other post-retirement benefit plans, the benefit obligation is the accumulated post-retirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement. For active plans, the present value reflects estimated future compensation levels. The APBO represents the actuarial present value of post-retirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligation is based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain key assumptions that require significant judgment, including, but not limited to, estimates of discount rates, expected return on plan assets, inflation, rate of compensation increases, interest crediting rates and mortality rates. The assumptions used are reviewed on an annual basis. Earnings per common share Basic and diluted earnings per common share are calculated using the two-class method. The two-class method is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. The Company’s restricted stock awards are considered participating securities because they are legally issued at the grant date and holders have a non-forfeitable right to receive dividends. Basic earnings per common share is computed by dividing net income attributable to the Company’s common stockholders by the weighted-average common shares outstanding during the period. Diluted earnings per common share also considers the dilutive effect of in-the-money stock options and restricted stock units, calculated using the treasury stock method. Treasury stock Repurchases of shares of common stock are accounted for at cost and are included as a component of stockholders’ equity in the consolidated balance sheets. Accounting pronouncements recently adopted In December 2019, the FASB issued new guidance that simplified the accounting for income taxes. The guidance is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those reporting periods. This standard became effective for the Company in fiscal year 2022 and did not have a material impact on the consolidated financial statements. No other new accounting pronouncements recently adopted or issued had or are expected to have a material impact on the consolidated financial statements. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Nov. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination Disclosure | ACQUISITIONS AND DIVESTITURES: PK Acquisition Background On December 27, 2021, the Company completed its acquisition of PK, a leading CX design engineering company with more than 5,000 staff in four countries. PK creates pioneering experiences that accelerate digital outcomes for their clients’ customers, partners and staff. The acquisition of PK expands the Company’s scale in the digital IT services market and supports the Company’s growth strategy of investing in digital transformation to deliver exceptional customer experiences. The addition of the PK staff and technology to the Company’s team further strengthened its capabilities in CX design and development, artificial intelligence (“AI”), intelligent automation, and customer loyalty. Purchase price consideration The total purchase price consideration, net of cash and restricted cash acquired, for the acquisition of PK was $1,573.3 million, which was funded by proceeds from the Company’s new term loan (the “Term Loan”) under its amended senior secured credit facility (the “Credit Facility”) and additional borrowings under its accounts receivable securitization facility (the “Securitization Facility”). See Note 9 — Borrowings for a further discussion of the Term Loan, the Credit Facility and the Securitization Facility. The purchase price consideration to acquire PK consisted of the following: Cash consideration for PK stock (1) $ 1,177,342 Cash consideration for PK vested equity awards (2) 246,229 Cash consideration for repayment of PK debt, including accrued interest (3) 148,492 Cash consideration for transaction expenses of PK (4) 22,842 Total cash consideration 1,594,905 Non-cash equity consideration for conversion of PK equity awards (5) 15,725 Total consideration transferred 1,610,630 Less: Cash and restricted cash acquired (6) 37,310 Total purchase price consideration $ 1,573,320 (1) Represents the cash consideration paid for the outstanding shares of PK’s common stock, which includes the final settlement of the merger consideration adjustment paid pursuant to the merger agreement. (2) Represents the cash consideration paid for certain vested PK stock option awards and restricted stock awards. (3) Represents the cash consideration paid to retire PK’s outstanding third-party debt, including accrued interest. (4) Represents the cash consideration paid for expenses incurred by PK in connection with the merger and paid by Concentrix pursuant to the merger agreement. These expenses primarily related to third-party consulting services. (5) Represents the issuance of vested Concentrix stock options that were issued in conversion of certain vested PK stock options that were assumed by Concentrix pursuant to the merger agreement. (6) Represents the PK cash and restricted cash balance acquired at the acquisition. Purchase price allocation The acquisition was accounted for as a business combination in accordance with Accounting Standards Codification Topic 805, Business Combinations . The purchase price was allocated to the assets acquired, liabilities assumed and non-controlling interest based on management’s estimate of the respective fair values at the date of acquisition. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The factors contributing to the recognition of goodwill were the assembled workforce, comprehensive service portfolio delivery capabilities and strategic benefits that are expected to be realized from the acquisition. None of the goodwill is expected to be deductible for income tax purposes. The following table summarizes the final fair values of the assets acquired, liabilities assumed and non-controlling interest as of the acquisition date: As of December 27, 2021 Assets acquired: Cash and cash equivalents $ 30,798 Accounts receivable 85,367 Property and equipment 11,158 Operating lease right-of-use assets 12,288 Identifiable intangible assets 469,300 Goodwill 1,119,068 Other assets 26,449 Total assets acquired 1,754,428 Liabilities assumed and non-controlling interest: Accounts payable and accrued liabilities 78,092 Operating lease liabilities 12,288 Deferred tax liabilities 51,418 Non-controlling interest 2,000 Total liabilities assumed and non-controlling interest 143,798 Total consideration transferred $ 1,610,630 The purchase price allocation includes $469,300 of acquired identifiable intangible assets, all of which have finite lives. The fair value of the identifiable intangible assets has been estimated by using the income approach through a discounted cash flow analysis of certain cash flow projections. The cash flow projections are based on forecasts used by the Company to price the PK acquisition, and the discount rates applied were benchmarked by referencing the implied rate of return of the Company’s pricing model and the weighted average cost of capital. The intangible assets are being amortized over their estimated useful lives on either a straight-line basis or an accelerated method that reflects the economic benefit of the asset. The determination of the useful lives is based upon various industry studies, historical acquisition experience, economic factors, and future forecasted cash flows of the Company following the acquisition of PK. The amounts allocated to intangible assets are as follows: Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 398,600 15 years Technology 63,500 5 years Trade name 5,000 3 years Non-compete agreements 2,200 3 years Total $ 469,300 Supplemental Pro Forma Information (unaudited) The supplemental pro forma financial information presented below is for illustrative purposes only, does not include the pro forma adjustments that would be required under Regulation S-X for pro forma financial information, is not necessarily indicative of the financial position or results of operations that would have been realized if the PK acquisition had been completed on December 1, 2020, does not reflect synergies that might have been achieved, nor is it indicative of future operating results or financial position. The pro forma adjustments are based upon currently available information and certain assumptions that the Company believes are reasonable under the circumstances. The supplemental pro forma financial information reflects pro forma adjustments to present the combined pro forma results of operations as if the PK acquisition had occurred on December 1, 2020 to give effect to certain events that the Company believes to be directly attributable to the PK acquisition. These pro forma adjustments primarily include: • An increase in amortization expense that would have been recognized due to acquired identifiable intangible assets. • An adjustment to interest expense to reflect the additional borrowings of Concentrix under the Credit Facility and the repayment of PK’s historical debt in conjunction with the acquisition. • The related income tax effects of the adjustments noted above. The supplemental pro forma financial information for the periods presented is as follows: Fiscal Years Ended November 30, 2022 2021 Revenue $ 6,357,434 $ 6,023,726 Net income 431,816 392,837 ServiceSource Acquisition Background On July 20, 2022, the Company completed its acquisition of ServiceSource International, Inc. (“ServiceSource”), a global outsourced go-to-market services provider, delivering business-to-business (“B2B”) digital sales and customer success solutions that complemented Concentrix’ offerings in this area. Purchase price consideration The total purchase price consideration, net of cash acquired, for the acquisition of ServiceSource was $141.5 million, which was primarily funded by cash on the Company’s balance sheet, as well as borrowings under the Company’s Securitization Facility. The preliminary purchase price consideration to acquire ServiceSource consisted of the following: Cash consideration for ServiceSource stock (1) $ 150,392 Cash consideration for ServiceSource vested and unvested equity awards (2) 6,704 Cash consideration for repayment of ServiceSource debt, including accrued interest (3) 10,063 Total consideration transferred 167,159 Less: Cash and restricted cash acquired (4) 25,652 Total purchase price consideration $ 141,507 (1) Represents the cash consideration paid for the outstanding shares of ServiceSource’s common stock. (2) Represents the cash consideration paid or to be paid for vested and unvested ServiceSource stock option awards, restricted stock units and performance stock units. (3) Represents the cash consideration paid to retire ServiceSource’s outstanding third-party debt, including accrued interest. (4) Represents the ServiceSource cash and restricted cash balance acquired at the acquisition. Preliminary purchase price allocation The purchase price was allocated to the assets acquired and liabilities assumed based on management’s estimate of the respective fair values at the date of acquisition. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The factors contributing to the recognition of goodwill were the assembled workforce, high-value service delivery capabilities and strategic benefits that are expected to be realized from the acquisition. None of the goodwill is expected to be deductible for income tax purposes. The following table summarizes the preliminary estimates of fair values of the assets acquired and liabilities assumed as of the acquisition date: As of July 20, 2022 Assets acquired: Cash and cash equivalents $ 24,355 Accounts receivable 40,097 Property and equipment 8,112 Operating lease right-of-use assets 29,487 Identifiable intangible assets 40,200 Goodwill 45,502 Net deferred tax assets 22,724 Other assets 20,238 Total assets acquired 230,715 Liabilities assumed: Accounts payable and accrued liabilities 34,069 Operating lease liabilities 29,487 Total liabilities assumed 63,556 Total consideration transferred $ 167,159 As of November 30, 2022, the purchase price allocation is preliminary. The preliminary purchase price allocation was based upon a preliminary valuation, and the Company’s estimates and assumptions are subject to change within the measurement period (not to exceed twelve months following the acquisition date). The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the valuation of identifiable intangible assets acquired, the fair value of certain tangible assets acquired and liabilities assumed, and deferred income taxes. The Company expects to continue to obtain information for the purpose of determining the fair value of the assets acquired and liabilities assumed on the acquisition date throughout the remainder of the measurement period. During the three months ended November 30, 2022, measurement period adjustments were recorded to estimate net deferred tax assets at the acquired value as disclosed in the table above, resulting in a corresponding decrease to goodwill. The preliminary purchase price allocation includes $40,200 of acquired identifiable intangible assets, all of which have finite lives. The preliminary fair value of the identifiable intangible assets has been estimated using the income approach through a discounted cash flow analysis of certain cash flow projections. The intangible assets are being amortized over their estimated useful lives on either a straight-line basis or an accelerated method that reflects the economic benefit of the asset. The determination of the useful lives is based upon various industry studies, historical acquisition experience, economic factors, and future forecasted cash flows of the Company following the acquisition of ServiceSource. The preliminary amounts allocated to intangible assets are as follows: Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 31,370 15 years Technology 5,640 5 years Trade name 3,190 3 years Total $ 40,200 Results of acquired operations The results of the acquired operations of PK and ServiceSource have been included in the consolidated financial statements since the respective acquisition dates. The following table provides the results of acquired operations included in the consolidated statement of operations from the respective acquisition dates through November 30, 2022: Fiscal Year Ended November 30, 2022 Revenue $ 512,942 Loss before income taxes (8,472) In connection with the acquisitions, the Company incurred $33,763 of acquisition-related and integration expenses for the fiscal year ended November 30, 2022. These expenses primarily include legal and professional services, cash-settled awards, severance and retention payments and costs associated with lease terminations to integrate the businesses. These acquisition-related and integration expenses were recorded within selling, general and administrative expenses in the consolidated statement of operations. Divestitures In July 2021, the Company completed the sales of its insurance third-party administration operations and software platform, Concentrix Insurance Solutions (“CIS”), and another non-CX solutions business in separate transactions for total cash consideration of approximately $73,708. The divestitures generated a pre-tax gain of approximately $13,197, net of related transaction costs. The gain on divestitures and related transaction costs were included in selling, general and administrative expenses in the consolidated statements of operations for the fiscal year ended November 30, 2021. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Nov. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION: In November 2020, in connection with the spin-off, TD SYNNEX, as sole stockholder of Concentrix, approved the Concentrix Corporation 2020 Stock Incentive Plan (the “Concentrix Stock Incentive Plan”) and the Concentrix Corporation 2020 Employee Stock Purchase Plan (the “Concentrix ESPP”), each to be effective upon completion of the spin-off. 4,000 shares of Concentrix common stock were reserved for issuance under the Concentrix Stock Incentive Plan, and 1,000 shares of Concentrix common stock were authorized for issuance under the Concentrix ESPP. In December 2021, 523 additional shares of Concentrix common stock were reserved for issuance under the Concentrix Stock Incentive Plan resulting from an automatic annual increase pursuant to the terms of the plan. Prior to the spin-off, certain of the Company’s employees participated in a long-term incentive plan sponsored by TD SYNNEX. The Company recognized share-based compensation expense for all share-based awards made to Concentrix employees, including employee stock options, restricted stock awards, restricted stock units, performance-based restricted stock units and employee stock purchases, based on estimated fair values. In connection with the completion of the spin-off and pursuant to the employee matters agreement with TD SYNNEX, each outstanding TD SYNNEX share-based award as of the distribution date was converted into either (a) TD SYNNEX and Concentrix share-based awards, each with the same number of shares as the original TD SYNNEX award, or (b) a share-based award of only TD SYNNEX common stock or only Concentrix common stock, with an adjustment to the number of shares to preserve the value of the award. As a result of the conversion of awards, on December 1, 2020, 827 restricted stock awards and restricted stock units and 684 stock options were issued under the Concentrix Stock Incentive Plan. Following the conversion, it was determined that the share-based awards were modified in accordance with the applicable accounting guidance. As a result, the fair values of the share-based awards immediately before and after the modification were assessed in order to determine if the modification resulted in any incremental compensation cost related to the awards. Based on the analysis performed, including consideration of the anti-dilution feature contained in the TD SYNNEX stock incentive plan, it was determined that the conversion resulted in an immaterial amount of incremental compensation cost for the outstanding awards. The Company recorded share-based compensation expense in the consolidated statements of operations for fiscal years 2022, 2021 and 2020 as follows: Fiscal Years Ended November 30, 2022 2021 2020 Total share-based compensation $ 47,516 $ 36,762 $ 15,914 Tax benefit recorded in the provision for income taxes (12,069) (9,234) (3,979) Effect on net income $ 35,447 $ 27,528 $ 11,935 Share-based compensation expense is included in selling, general and administrative expenses in the consolidated statements of operations. Employee Stock Options The Company uses the Black-Scholes valuation model to estimate the fair value of stock options. The Black-Scholes option-pricing model was developed for use in estimating the fair value of short-lived exchange traded options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The stock options have ten-year terms and vesting terms of five years. A summary of the changes in the former parent employee stock options during fiscal year 2020 is presented below: Options Outstanding Number of former parent shares (in thousands) Weighted- average exercise price per former parent share Balance as of November 30, 2019 122 $ 92.68 Options granted — — Balance as of November 30, 2020 122 $ 92.68 A summary of the changes in the employee stock options during fiscal years 2021 and 2022 is presented below: Options Outstanding Number of shares (in thousands) Weighted- average exercise price per share Balance as of December 1, 2020 (converted from former parent stock options in connection with the spin-off) (1) 684 $ 45.84 Options granted 26 119.72 Options exercised (269) 43.34 Balance as of November 30, 2021 441 51.75 Options granted — — Options issued in conversion of certain vested PK stock options (2) 119 45.81 Options exercised (165) 46.38 Balance as of November 30, 2022 395 $ 52.60 (1) Amounts represent Concentrix awards, including those held by TD SYNNEX employees. (2) Amounts represent the issuance of vested Concentrix stock options that were issued in conversion of certain vested PK stock options that were assumed by Concentrix pursuant to the merger agreement with PK. The fair value of the stock options issued in conversion of certain vested PK stock options during fiscal year 2022 is $132.42 per share. As of November 30, 2022, 395 options were outstanding with a weighted-average life of 5.83 years and an aggregate pre-tax intrinsic value of $27,552. As of November 30, 2022, 300 options were vested and exercisable with a weighted-average life of 5.55 years, a weighted-average exercise price of $50.24 per share, and an aggregate pre-tax intrinsic value of $21,621. As of November 30, 2022, the unamortized share-based compensation expense related to unvested stock options under the Concentrix Stock Incentive Plan was $1,110, which will be recognized over an estimated weighted-average amortization period of 2.21 years. Restricted Stock Awards, Restricted Stock Units and Performance-Based Restricted Stock Units The fair value of restricted stock awards and restricted stock units granted under the Concentrix Stock Incentive Plan in fiscal year 2022 were determined based on the Company’s stock price at the date of grant. The awards are expensed on a straight line basis over the vesting term, typically four In fiscal year 2022, the Company granted performance-based restricted stock units, which included annual awards to the Company’s senior executive team and retention and new hire awards to staff who joined the Company as part of the PK acquisition. The performance-based restricted stock units will vest, if at all, upon the achievement of certain annual financial targets during the three-year periods ending November 30, 2024 and August 31, 2025. The Company granted performance-based restricted stock units in fiscal year 2021. These performance-based restricted stock units will vest, if at all, upon achievement of certain annual financial targets during the three-year period ending November 30, 2023. A summary of the changes in the former parent non-vested restricted stock awards, restricted stock units, and performance-based restricted stock units during fiscal year 2020 is presented below: Number of former parent shares (in thousands) Weighted-average, grant-date fair value per former parent share Non-vested as of November 30, 2019 591 $ 102.12 Awards granted 7 78.47 Units granted 1 83.88 Awards and units vested (110) 102.77 Awards and units cancelled/forfeited (31) 102.04 Non-vested as of November 30, 2020 458 $ 101.57 A summary of the changes in the non-vested restricted stock awards, restricted stock units, and performance-based stock units during fiscal years 2021 and 2022, including the conversion of former parent awards and stock units previously discussed, is presented below: Number of shares (in thousands) Weighted-average, grant-date fair value per share Balance as of December 1, 2020 (converted from former parent awards and units in connection with the spin-off) (1) 827 $ 51.53 Awards granted 495 134.65 Units granted (2) 226 154.53 Awards and units vested (504) 61.95 Awards and units cancelled/forfeited (64) 84.20 Non-vested as of November 30, 2021 980 109.92 Awards granted 510 139.31 Units granted (2) 294 130.98 Awards and units vested (283) 91.62 Awards and units cancelled/forfeited (106) 118.79 Non-vested as of November 30, 2022 1,395 $ 124.69 (1) Amounts represent Concentrix awards, including those held by TD SYNNEX employees. (2) For performance-based restricted stock units, the target number of shares that can be awarded upon full vesting of the grants is included. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Nov. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS: Cash, cash equivalents and restricted cash: The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows: As of November 30, 2022 2021 Cash and cash equivalents $ 145,382 $ 182,038 Restricted cash included in other current assets 12,081 972 Cash, cash equivalents and restricted cash $ 157,463 $ 183,010 Restricted cash balances relate primarily to funds held for clients, restrictions placed on cash deposits by banks as collateral for the issuance of bank guarantees and the terms of a government grant, and letters of credit for leases. Accounts receivable, net: Accounts receivable, net is comprised of the following as of November 30, 2022 and 2021: As of November 30, 2022 2021 Billed accounts receivable $ 782,049 $ 714,032 Unbilled accounts receivable 613,222 499,342 Less: Allowance for doubtful accounts (4,797) (5,421) Accounts receivable, net $ 1,390,474 $ 1,207,953 Allowance for doubtful trade receivables: Presented below is a progression of the allowance for doubtful trade receivables: Fiscal Years Ended November 30, 2022 2021 2020 Balance at beginning of period $ 5,421 $ 8,963 $ 6,055 Net additions (reductions) 3,329 (202) 8,140 Write-offs and reclassifications (3,953) (3,340) (5,232) Balance at end of period $ 4,797 $ 5,421 $ 8,963 Property and equipment, net: The following table summarizes the carrying amounts and related accumulated depreciation for property and equipment as of November 30, 2022 and 2021: As of November 30, 2022 2021 Land $ 27,336 $ 27,677 Equipment, computers and software 542,209 488,270 Furniture and fixtures 89,167 90,442 Buildings, building improvements and leasehold improvements 362,218 364,166 Construction-in-progress 14,975 10,741 Total property and equipment, gross $ 1,035,905 $ 981,296 Less: Accumulated depreciation (632,076) (574,152) Property and equipment, net $ 403,829 $ 407,144 Shown below are the countries where 10% or more of the Company’s property and equipment, net are located as of November 30, 2022 and 2021: As of November 30, 2022 2021 Property and equipment, net: United States $ 123,184 $ 101,333 Philippines 76,361 87,548 India 42,698 46,167 Others 161,586 172,096 Total $ 403,829 $ 407,144 Accumulated other comprehensive income (loss): The components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes, were as follows: Unrecognized gains (losses) on defined benefit plan, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Foreign currency translation adjustment and other, net of taxes Total Balance, November 30, 2020 $ (38,584) $ 29,239 $ 5,531 $ (3,814) Other comprehensive income (loss) before reclassification 15,839 (8,396) (51,909) (44,466) Reclassification of (gains) losses from other comprehensive income (loss) — (22,246) — (22,246) Balance, November 30, 2021 $ (22,745) $ (1,403) $ (46,378) $ (70,526) Other comprehensive income (loss) before reclassification 14,274 (45,464) (240,986) (272,176) Reclassification of gains from other comprehensive income (loss) — 26,953 — 26,953 Balance, November 30, 2022 $ (8,471) $ (19,914) $ (287,364) $ (315,749) Refer to Note 7—Derivative Instruments for the location of gains and losses on cash flow hedges reclassified from other comprehensive income (loss) to the consolidated statements of operations. Reclassifications of amortization of actuarial (gains) losses of defined benefit plans is recorded in “Other expense (income), net” in the consolidated statement of operations. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Nov. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS: Goodwill The Company tests goodwill for impairment annually as of the fourth quarter of its fiscal year and at other times if events have occurred or circumstances exist that indicate the carrying value of goodwill may no longer be recoverable. Goodwill impairment testing is performed at the reporting unit level. Based on the current year assessment, we concluded that no impairment charges were necessary for the Company’s reporting unit. We have not recorded any impairment charges related to goodwill during the three-year period ended November 30, 2022. Below is a progression of goodwill for fiscal years 2022 and 2021: Fiscal Years Ended November 30, 2022 2021 Balance, beginning of year $ 1,813,502 $ 1,836,050 Acquisitions 1,165,072 3,502 Divestitures — (14,690) Foreign currency translation (74,172) (11,360) Balance, end of year $ 2,904,402 $ 1,813,502 Other Intangible Assets The Company’s other intangible assets, primarily acquired through business combinations, are subject to amortization and are evaluated periodically if events or circumstances indicate a possible inability to recover their carrying amounts. No impairment charges were recognized in any period presented. As of November 30, 2022 and 2021, the Company’s other intangible assets consisted of the following: As of November 30, 2022 As of November 30, 2021 Gross amounts Accumulated amortization Net amounts Gross amounts Accumulated amortization Net amounts Customer relationships $ 1,731,610 $ (811,727) $ 919,883 $ 1,347,961 $ (694,701) $ 653,260 Technology 79,728 (21,820) 57,908 10,835 (8,900) 1,935 Trade names 14,552 (8,291) 6,261 6,724 (6,391) 333 Non-compete agreements 2,200 (680) 1,520 — — — $ 1,828,090 $ (842,518) $ 985,572 $ 1,365,520 $ (709,992) $ 655,528 Amortization expense for intangible assets was $162,673, $136,939, and $147,283 for the fiscal years ended November 30, 2022, 2021 and 2020, respectively, and the related estimated expense for the five subsequent fiscal years and thereafter is as follows: Fiscal Years Ending November 30, Amortization Expense 2023 $ 156,643 2024 145,746 2025 133,700 2026 117,237 2027 87,022 Thereafter 345,224 Total $ 985,572 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Nov. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS: In the ordinary course of business, the Company is exposed to foreign currency risk and credit risk. The Company enters into transactions, and owns monetary assets and liabilities, that are denominated in currencies other than the legal entity’s functional currency. The Company may enter into forward contracts, option contracts, or other derivative instruments to offset a portion of the risk on expected future cash flows, earnings, net investments in certain non-U.S. legal entities and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange or interest rates. Generally, the Company does not use derivative instruments to cover equity risk and credit risk. The Company’s hedging program is not used for trading or speculative purposes. All derivatives are recognized on the consolidated balance sheets at their fair values. Changes in the fair value of derivatives are recorded in the consolidated statements of operations, or as a component of AOCI in the consolidated balance sheets, as discussed below. Cash Flow Hedges To protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s legal entities with functional currencies that are not U.S. dollars may hedge a portion of forecasted revenue or costs not denominated in the entities’ functional currencies. These instruments mature at various dates through November 2024. Gains and losses on cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of “Revenue” in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of foreign currency costs are recognized as a component of “Cost of revenue” or “Selling, general and administrative expenses” in the same period as the related costs are recognized. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified into earnings in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are recorded in earnings unless they are re-designated as hedges of other transactions. Non-Designated Derivatives The Company uses short-term forward contracts to offset the foreign exchange risk of assets and liabilities denominated in currencies other than the functional currencies of the Company’s legal entities that own the assets or liabilities. These contracts, which are not designated as hedging instruments, mature or settle within twelve months. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. Fair Values of Derivative Instruments in the Consolidated Balance Sheets The fair values of the Company’s derivative instruments are disclosed in Note 8—Fair Value Measurements and summarized in the table below: Value as of Balance Sheet Line Item November 30, 2022 November 30, 2021 Derivative instruments not designated as hedging instruments: Foreign exchange forward contracts (notional value) $ 1,465,853 $ 1,415,447 Other current assets 22,839 10,058 Other accrued liabilities 14,934 12,542 Derivative instruments designated as cash flow hedges: Foreign exchange forward contracts (notional value) $ 963,844 $ 918,097 Other current assets and other assets 6,389 7,851 Other accrued liabilities and other long-term liabilities 32,935 9,736 Volume of activity The notional amounts of foreign exchange forward contracts represent the gross amounts of foreign currency, including, principally, the Philippine peso, the Indian rupee, the Canadian dollar, the Japanese yen and the Australian dollar, that will be bought or sold at maturity. The notional amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss. The Company’s exposure to credit loss and market risk will vary over time as currency exchange rates change. The Effect of Derivative Instruments on AOCI and the Consolidated Statements of Operations The following table shows the gains and losses, before taxes, of the Company’s derivative instruments designated as cash flow hedges and not designated as hedging instruments in other comprehensive income (“OCI”), and the consolidated statements of operations for the periods presented: Fiscal Years Ended November 30, Location of gain (loss) in statement of operations 2022 2021 2020 Derivative instruments designated as cash flow hedges: (Losses) gains recognized in OCI: Foreign exchange forward contracts $ (60,891) $ (11,105) $ 45,986 Gains (losses) reclassified from AOCI into income: Foreign exchange forward contracts (Loss) gain reclassified from AOCI into income Cost of revenue for services $ (28,108) $ 21,138 $ 21,532 (Loss) gain reclassified from AOCI into income Selling, general and administrative expenses (8,121) 8,606 8,841 Total $ (36,229) $ 29,744 $ 30,373 Derivative instruments not designated as hedging instruments: (Loss) gain recognized from foreign exchange forward contracts, net (1) Other expense (income), net $ (57,983) $ (2,880) $ 32,150 (1) The gains and losses largely offset the currency gains and losses that resulted from changes in the assets and liabilities denominated in nonfunctional currencies. There were no material gain or loss amounts excluded from the assessment of effectiveness. Existing net losses in AOCI that are expected to be reclassified into earnings in the normal course of business within the next twelve months are $26,286. Offsetting of Derivatives In the consolidated balance sheets, the Company does not offset derivative assets against liabilities in master netting arrangements. Credit exposure for derivative financial instruments is limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed the Company’s obligations to the counterparties. The Company manages the potential risk of credit losses through careful evaluation of counterparty credit standing and selection of counterparties from a limited group of financial institutions with high credit standing. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Nov. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS: The Company’s fair value measurements are classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis: As of November 30, 2022 As of November 30, 2021 Fair value measurement category Fair value measurement category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 89,932 $ 89,932 $ — $ — $ 77,332 $ 77,332 $ — $ — Foreign government bond 1,529 1,529 — — 1,446 1,446 — — Forward foreign currency exchange contracts 29,228 — 29,228 — 17,909 — 17,909 — Liabilities: Forward foreign currency exchange contracts $ 47,869 $ — $ 47,869 $ — $ 22,278 $ — $ 22,278 $ — The Company’s cash equivalents consist primarily of highly liquid investments in money market funds and term deposits with maturity periods of three months or less. The carrying values of cash equivalents approximate fair value since they are near their maturity. Investment in a foreign government bond classified as an available-for-sale debt security is recorded at fair value based on quoted market prices. The fair values of forward exchange contracts are measured based on the foreign currency spot and forward rates. Fair values of long-term foreign currency exchange contracts are measured using valuations based upon quoted prices for similar assets and liabilities in active markets and are valued by reference to similar financial instruments, adjusted for terms specific to the contracts. The effect of nonperformance risk on the fair value of derivative instruments was not material as of November 30, 2022 and 2021. The carrying values of term deposits with maturities less than one year, accounts receivable and accounts payable approximate fair value due to their short maturities and interest rates that are variable in nature. The carrying values of the outstanding balance on the Term Loan under the Company’s Credit Facility and the outstanding balance on the Securitization Facility approximate their fair values since they bear interest rates that are similar to existing market rates. During fiscal years 2022, 2021 and 2020, there were no transfers between the fair value measurement category levels. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS: Borrowings consist of the following: As of November 30, 2022 2021 Credit Facility - current portion of Term Loan component $ — $ — Current portion of long-term debt $ — $ — Credit Facility - Term Loan component $ 1,875,000 $ — Credit Facility - Prior Term Loan component — 700,000 Securitization Facility 356,500 105,000 Long-term debt, before unamortized debt discount and issuance costs 2,231,500 805,000 Less: unamortized debt discount and issuance costs (7,212) (2,983) Long-term debt, net $ 2,224,288 $ 802,017 Credit Facility On December 27, 2021, in connection with the closing of the acquisition of PK, Concentrix entered into an amended senior secured credit facility (the “Credit Facility”) to (i) refinance the then-outstanding term loan (the “Prior Term Loan”) with a new term loan, which was fully advanced, in the aggregate outstanding principal amount of $2,100,000 (the “Term Loan”), (ii) increase the commitments under its revolving credit facility to $1,000,000 (the “Revolver”), (iii) extend the maturity of the Credit Facility from November 30, 2025 to December 27, 2026, (iv) replace LIBOR with SOFR (the Secured Overnight Financing Rate) as the primary reference rate used to calculate interest on the loans under the Credit Facility, and (v) modify the commitment fee on the unused portion of the Revolver and the margins in excess of the reference rates at which the loans under the Credit Facility bear interest. The proceeds from the Term Loan and additional borrowings under the Securitization Facility were used to repay the outstanding principal amount of the Prior Term Loan and to finance the acquisition of PK, including the repayment of certain indebtedness of PK and the payment of fees and expenses in connection with the acquisition of PK. Borrowings under the Credit Facility bear interest, in the case of term or daily SOFR loans, at a per annum rate equal to the applicable SOFR rate (but not less than 0.0%), plus an adjustment of between 0.10% and 0.25% depending on the interest period of each SOFR loan, plus an applicable margin, which ranges from 1.25% to 2.00%, based on Concentrix’ consolidated leverage ratio. Borrowings under the Credit Facility that are base rate loans bear interest at a per annum rate equal to (i) the greatest of (a) the Federal Funds Rate in effect on such day plus ½ of 1.00%, (b) the rate of interest last publicly announced by Bank of America as its “prime rate” and (c) the term SOFR rate plus 1.00%, plus (ii) an applicable margin, which ranges from 0.25% to 1.00%, based on Concentrix’ consolidated leverage ratio. A commitment fee is payable on the unused portion of the Revolver that ranges from 22.5 to 30 basis points, based on Concentrix’ consolidated leverage ratio. Beginning August 31, 2022, the outstanding principal of the Term Loan became payable in quarterly installments of $26,250, with the unpaid balance due in full on the maturity date. During the fiscal year ended November 30, 2022, the Company paid $225,000 of the principal balance on the Term Loan, including $172,500 of voluntary prepayments, without penalty. Concentrix may request, subject to obtaining commitments from any participating lenders and certain other conditions, incremental commitments to increase the amount of the Revolver or the Term Loan available under the Credit Facility in an aggregate principal amount of up to $450,000, plus an additional amount, so long as after giving effect to the incurrence of such additional amount, the Company’s pro forma first lien leverage ratio (as defined in the Credit Facility) would not exceed 3.00 to 1.00. Obligations under the Credit Facility are secured by substantially all of the assets of Concentrix Corporation and certain of its U.S. subsidiaries and are guaranteed by certain of its U.S. subsidiaries. The Credit Facility contains various loan covenants that restrict the ability of Concentrix and its subsidiaries to take certain actions, including incurrence of indebtedness, creation of liens, mergers or consolidations, dispositions of assets, repurchase or redemption of capital stock, making certain investments, entering into certain transactions with affiliates or changing the nature of their business. In addition, the Credit Facility contains financial covenants that require Concentrix to maintain at the end of each fiscal quarter, (i) a consolidated leverage ratio (as defined in the Credit Facility) not to exceed 3.75 to 1.0 and (ii) a consolidated interest coverage ratio (as defined in the Credit Facility) equal to or greater than 3.00 to 1.0. The Credit Facility also contains various customary events of default, including payment defaults, defaults under certain other indebtedness, and a change of control of Concentrix. Prior to it being amended in December 2021, Concentrix initially entered into its senior secured credit facility on October 16, 2020, to provide for the extension of revolving loans of up to $600,000 and term loan borrowings of up to $900,000. On November 30, 2020, in connection with the spin-off, the Company incurred the full $900,000 of term loan borrowings under the Credit Facility. Substantially all of the proceeds from such borrowings, net of debt issuance costs, were transferred to TD SYNNEX on November 30, 2020 to eliminate debt owed by Concentrix to TD SYNNEX and in exchange for the contribution of certain Concentrix trademarks from TD SYNNEX to Concentrix. Beginning May 31, 2021, the outstanding principal of the Prior Term Loan was payable in quarterly installments of $11,250, with the unpaid balance due in full on the maturity date. During the fiscal year ended November 30, 2021, the Company paid $200,000 of the principal balance on the Prior Term Loan, including $166,250 of voluntary prepayments, without penalty. At November 30, 2022 and 2021, no amounts were outstanding under the Revolver. Securitization Facility On July 6, 2022, the Company entered into an amendment to its accounts receivable securitization facility (the “Securitization Facility”), which was initially entered into on October 30, 2020, to (i) increase the commitment of the lenders to provide available borrowings from up to $350,000 to up to $500,000, (ii) extend the termination date of the Securitization Facility from October 28, 2022 to July 5, 2024, and (iii) replace LIBOR with SOFR as one of the reference rates used to calculate interest on borrowings under the Securitization Facility. In addition, the interest rate margins were amended, such that borrowings under the Securitization Facility that are funded through the issuance of commercial paper bear interest at the applicable commercial paper rate plus a spread of 0.70% and, otherwise, at a per annum rate equal to the applicable SOFR rate (which includes a SOFR related adjustment of 0.10%), plus a spread of 0.80%. Under the Securitization Facility, Concentrix and certain of its subsidiaries (the “Originators”) sell or otherwise transfer all of their accounts receivable to a special purpose bankruptcy-remote subsidiary of Concentrix (the “Borrower”) that grants a security interest in the receivables to the lenders in exchange for available borrowings of up to $500,000. The amount received under the Securitization Facility is recorded as debt on the Company’s consolidated balance sheets. Borrowing availability under the Securitization Facility may be limited by the Company’s accounts receivable balances, changes in the credit ratings of the clients comprising the receivables, client concentration levels in the receivables, and certain characteristics of the accounts receivable being transferred (including factors tracking performance of the accounts receivable over time). The Securitization Facility contains various affirmative and negative covenants, including a consolidated leverage ratio covenant that is consistent with the Credit Facility and customary events of default, including payment defaults, defaults under certain other indebtedness, a change in control of Concentrix, and certain events negatively affecting the overall credit quality of the transferred accounts receivable. The Borrower’s sole business consists of the purchase or acceptance through capital contributions of the receivables and related security from the Originators and the subsequent retransfer of or granting of a security interest in such receivables and related security to the administrative agent under the Securitization Facility for the benefit of the lenders. The Borrower is a separate legal entity with its own separate creditors who will be entitled, upon its liquidation, to be satisfied out of the Borrower’s assets prior to any assets or value in the Borrower becoming available to the Borrower’s equity holders, and the assets of the Borrower are not available to pay creditors of Concentrix and its subsidiaries. On November 30, 2020, in connection with the spin-off, the Company incurred $250,000 of borrowings under the Securitization Facility. Substantially all of the proceeds from such borrowings were transferred to TD SYNNEX on November 30, 2020 to eliminate debt owed by Concentrix to TD SYNNEX and in exchange for the contribution of certain Concentrix trademarks from TD SYNNEX to Concentrix. Covenant compliance As of November 30, 2022, Concentrix was in compliance with all covenants for the above arrangements. Future principal payments As of November 30, 2022, future principal payments under the above loans for the subsequent fiscal years are as follows: Amount Fiscal Years Ending November 30, 2023 $ — 2024 394,000 2025 105,000 2026 105,000 2027 1,627,500 Total $ 2,231,500 |
REVENUE
REVENUE | 12 Months Ended |
Nov. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE: Disaggregated revenue In the following tables, the Company’s revenue is disaggregated by primary industry verticals and geographic location: Fiscal Years Ended November 30, 2022 2021 2020 Industry vertical: Technology and consumer electronics $ 1,980,666 $ 1,759,203 $ 1,422,817 Retail, travel and ecommerce 1,184,086 985,550 796,324 Communications and media 1,076,289 1,005,283 954,234 Banking, financial services and insurance 967,810 862,033 712,469 Healthcare 608,169 489,855 392,686 Other 507,453 485,091 441,004 Total $ 6,324,473 $ 5,587,015 $ 4,719,534 The following table presents revenue by geographical location where the Company’s services are delivered. Shown below are the countries that account for the Company’s revenue for the periods presented: Fiscal Years Ended November 30, 2022 2021 2020 Revenue by geography: Philippines $ 1,476,706 $ 1,335,326 $ 1,205,764 United States 1,388,514 884,777 812,903 India 811,492 723,495 615,291 Canada 326,162 338,255 215,248 Germany 232,282 233,001 173,513 Great Britain 211,219 307,109 235,006 Others 1,878,098 1,765,052 1,461,809 Total $ 6,324,473 $ 5,587,015 $ 4,719,534 Deferred revenue contract liabilities and deferred costs to obtain or fulfill a contract are not material. |
TRANSACTIONS WITH FORMER PARENT
TRANSACTIONS WITH FORMER PARENT | 12 Months Ended |
Nov. 30, 2022 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH FORMER PARENT | TRANSACTIONS WITH FORMER PARENT: The Company provides certain services related to its core business to TD SYNNEX, its former parent. Revenue from CX services to former parent is included in the statements of operations. The cost associated with such services is reported as cost of revenue in the statements of operations. The Company purchases certain products from TD SYNNEX and records compensation expense for share-based awards granted by TD SYNNEX to Concentrix employees prior to the spin-off. Prior to December 1, 2020, the Company received allocations of corporate expenses by way of a monthly management fee and received financing for acquisition and operations under the terms of intra-TD SYNNEX group borrowing arrangements. Prior to December 1, 2020, the Company consisted of the CX business of TD SYNNEX and thus, transactions with TD SYNNEX were considered related party transactions. On December 1, 2020, in connection with the spin-off, the Company became an independent publicly-traded company. The following table presents the Company’s related party transactions with TD SYNNEX prior to the spin-off. Fiscal Year Ended November 30, 2020 Revenue from customer experience services to Parent $ 20,855 Purchases from Parent and its non-Concentrix subsidiaries — Interest expense on borrowings from Parent 50,615 Interest income on borrowings made to Parent 2,065 Corporate allocations 1,574 Share-based compensation 15,914 As of November 30, 2020, the payable to former parent and its non-Concentrix subsidiaries was primarily trade in nature. Prior to the spin-off, TD SYNNEX had issued guarantees to certain of the Company’s clients to guarantee the performance obligations of the Company’s legal entities. These TD SYNNEX guarantees were released or replaced by Concentrix guarantees on or prior to the spin-off. In connection with the spin-off, on November 30, 2020, the Company entered into a separation and distribution agreement, an employee matters agreement, a tax matters agreement and a commercial agreement with TD SYNNEX to set forth the principal actions to be taken in connection with the spin-off and define the Company’s ongoing relationship with TD SYNNEX after the spin-off. |
PENSION AND EMPLOYEE BENEFITS P
PENSION AND EMPLOYEE BENEFITS PLANS | 12 Months Ended |
Nov. 30, 2022 | |
Retirement Benefits [Abstract] | |
PENSION AND EMPLOYEE BENEFITS PLANS | PENSION AND EMPLOYEE BENEFITS PLANS: The Company has a 401(k) plan in the United States under which eligible employees may contribute up to the maximum amount as provided by law. Employees become eligible to participate in the 401(k) plan on the first day of the month after their employment date. The Company may make discretionary contributions under the plan. Employees in most of the Company’s non-U.S. legal entities are covered by government mandated defined contribution plans. During fiscal years 2022, 2021 and 2020, the Company contributed $83,792, $72,561 and $64,286, respectively, to defined contribution plans. Defined Benefit Plans The Company has defined benefit pension and retirement plans for eligible employees of certain non-U.S. legal entities. For eligible employees in the U.S., the Company maintains a frozen defined benefit pension plan (“the cash balance plan”), which includes both a qualified and non-qualified portion. The pension benefit formula for the cash balance plan is determined by a combination of compensation, age-based credits and annual guaranteed interest credits. The qualified portion of the cash balance plan has been funded through contributions made to a trust fund. The Company maintains funded or unfunded defined benefit pension or retirement plans for certain eligible employees in the Philippines, Malaysia, India, and France. Benefits under these plans are primarily based on years of service and compensation during the years immediately preceding retirement or termination of participation in the plans. The Company’s measurement date for all defined benefit plans and other post-retirement benefits is November 30. The plan assumptions for both the U.S. and non-U.S. defined benefit pension plans are evaluated annually and are updated as deemed necessary. Net benefit costs related to defined benefit plans were $9,437, $13,427 and $13,602, during fiscal years 2022, 2021 and 2020, respectively. Components of pension cost for the Company’s defined benefit plans are as follows: Fiscal Years Ended November 30, 2022 2021 2020 Service costs $ 7,031 $ 8,148 $ 7,498 Interest costs on projected benefit obligation 6,828 6,284 8,385 Expected return on plan assets (6,562) (6,032) (6,403) Amortization and deferrals, net 1,540 4,542 2,851 Settlement charges 600 485 1,271 Total pension costs $ 9,437 $ 13,427 $ 13,602 Service costs are recorded in cost of services and selling, general and administrative expenses while the remaining components of total pension costs are recorded within other expense (income) The status of the Company’s defined benefit plans is summarized below: Fiscal Years Ended November 30, 2022 2021 Change in Benefit Obligation: Benefit obligation at beginning of year $ 266,620 $ 281,957 Service costs 7,031 8,148 Interest costs 6,828 6,284 Actuarial gains (1) (43,290) (6,679) Benefits paid (16,899) (14,844) Settlements (4,676) (5,893) Foreign currency adjustments (6,448) (2,353) Projected obligation at end of year $ 209,166 $ 266,620 Change in Plan Assets: Fair value of plan assets at beginning of year $ 161,931 $ 147,558 Actual return on assets (20,648) 13,534 Settlements (5,195) (5,893) Employer contributions 12,776 14,563 Benefits paid (10,754) (7,711) Foreign currency adjustments (759) (120) Fair value of plan assets at end of year $ 137,351 $ 161,931 Funded Status of Plans: Unfunded status $ 71,815 $ 104,689 (1) The actuarial gains in fiscal year 2022 were primarily due to an increase in the discount rate for the Company’s cash balance plan as of the November 30, 2022 measurement date. Amounts recognized in the consolidated balance sheet and recorded within other accrued liabilities and other long-term liabilities as of November 30, 2022 and 2021 consist of the following: As of November 30, 2022 2021 Current liability $ 14,913 $ 15,884 Non-current liability 56,902 88,805 Total $ 71,815 $ 104,689 The accumulated benefit obligation for all defined benefit pension plans was $200,198 and $256,257 at November 30, 2022 and 2021, respectively. The following weighted-average rates were used in determining the benefit obligations as of November 30, 2022 and 2021: As of November 30, 2022 2021 Discount rate 4.0% - 7.5% 1.2% - 5.3% Interest crediting rate for cash balance plan 4.0 % 4.0 % Expected rate of future compensation growth 1.8% - 8.8% 1.8% - 8.5% The following weighted-average rates were used in determining the pension costs for the fiscal years ended November 30, 2022 and 2021: Fiscal Years Ended November 30, 2022 2021 Discount rate 1.2% - 5.3% 0.3% - 4.8% Interest crediting rate for cash balance plan 4.0 % 4.0 % Expected return on plan assets 1.0% - 7.0% 1.0% - 7.5% Expected rate of future compensation growth 1.8% - 10.0% 1.8% - 8.5% For the cash balance plan, the discount rate reflects the rate at which benefits could effectively be settled and is based on current investment yields of high-quality corporate bonds. The Company uses an actuarially-developed yield curve approach to match the timing of cash flows of expected future benefit payments by applying specific spot rates along the yield curve to determine the assumed discount rate. The range of discount rates utilized in determining the pension cost and projected benefit obligation of the Company’s defined benefit plans reflects a lower prevalent rate applicable to the frozen cash balance plan for eligible employees in U.S. and a higher applicable rate for the unfunded defined benefit plan for certain eligible employees in the Philippines, France and Malaysia. The plans outside the U.S. represented approximately 28% and 25% of the Company’s total projected benefit obligation for all defined benefit plans as of November 30, 2022 and 2021, respectively . Plan Assets As of November 30, 2022 and 2021, plan assets for the cash balance plan consisted of common/collective trusts (of which approximately 62% are invested in equity backed funds and approximately 38% are invested in funds in fixed income instruments) and a private equity fund. The Company’s targeted allocation was 60% equity and 40% fixed income. The investment objectives for the plan assets are to generate returns that will enable the plan to meet its future obligations. The Company’s expected long-term rate of return was determined based on the asset mix of the plan, projected returns, past performance and other factors. The following table sets forth by level within the fair value hierarchy, total plan assets at fair value as of November 30, 2022 and 2021, including the cash balance plan and other funded benefit plans: Investments As of November 30, 2022 As of Quoted Prices in Active Markets for Identical Assets As of Significant Other Observable Inputs (Level 2) As of Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 4,034 $ 4,034 $ — $ — Common/collective trusts: Fixed income 47,439 — 47,439 — U.S. large cap 31,352 — 31,352 — U.S. small cap 8,567 — 8,567 — International equity 36,773 — 36,773 — Governmental bonds 6,073 — 6,073 — Corporate bonds 2,998 — 2,998 — Investment funds — — — — Limited partnership 115 — — 115 Total investments $ 137,351 $ 4,034 $ 133,202 $ 115 Investments As of November 30, 2021 As of Quoted Prices in Active Markets for Identical Assets As of Significant Other Observable Inputs (Level 2) As of Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3,383 $ 3,383 $ — $ — Common/collective trusts: Fixed income 59,955 — 59,955 — U.S. large cap 39,318 — 39,318 — U.S. small cap 10,100 — 10,100 — International equity 39,930 — 39,930 — Governmental bonds 5,493 — 5,493 — Corporate bonds 3,528 — 3,528 — Investment funds — — — — Limited partnership 224 — — 224 Total investments $ 161,931 $ 3,383 $ 158,324 $ 224 The Company’s cash balance plan holds level 2 investments in common/collective trust funds that are public investment vehicles valued using a net asset value (NAV) provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV’s unit price is quoted on a private market that may not be active. However, the NAV is based on the fair value of the underlying securities within the fund, which are traded on an active market, and valued at the closing price reported on the active market on which those individual securities are traded. The significant investment strategies of the funds are as described in the financial statements provided by each fund. There are no restrictions on redemptions from these funds. Level 3 investments are equity based funds that primarily invest in domestic early stage capital funds. Benefit Payments The following table details expected benefit payments for the cash balance plan and other defined benefit plans: Fiscal Years Ending November 30, 2023 $ 42,913 2024 27,128 2025 24,466 2026 22,344 2027 21,037 Thereafter 87,286 Total $ 225,174 |
LEASES
LEASES | 12 Months Ended |
Nov. 30, 2022 | |
Leases [Abstract] | |
LEASES | LEASES: The Company leases certain of its facilities and equipment under operating lease agreements, which expire in various periods through 2035. The Company’s finance leases are not material. The following table presents the various components of lease costs: Fiscal Years Ended November 30, 2022 2021 2020 Operating lease cost $ 199,609 $ 203,508 $ 202,852 Short-term lease cost 20,451 15,767 9,917 Variable lease cost 45,997 40,215 41,060 Sublease income (3,226) (1,738) (1,668) Total operating lease cost $ 262,831 $ 257,752 $ 252,161 The following table presents a maturity analysis of expected undiscounted cash flows for operating leases on an annual basis for the next five fiscal years and thereafter as of November 30, 2022: Fiscal Years Ending November 30, 2023 $ 186,849 2024 152,785 2025 104,229 2026 55,500 2027 23,447 Thereafter 27,241 Total payments 550,051 Less: imputed interest* (50,577) Total present value of lease payments $ 499,474 The following amounts were recorded in the consolidated balance sheet as of November 30, 2022 and 2021: As of November 30, Operating leases Balance sheet location 2022 2021 Operating lease ROU assets Other assets, net $ 473,039 $ 489,171 Current operating lease liabilities Other accrued liabilities 158,801 153,329 Non-current operating lease liabilities Other long-term liabilities 340,673 354,471 The following table presents supplemental cash flow information related to the Company’s operating leases. Cash payments related to variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below: Fiscal Years Ended November 30, Cash flow information 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities $ 196,168 $ 200,096 $ 206,585 Non-cash ROU assets obtained in exchange for lease liabilities 191,055 156,406 147,292 The weighted-average remaining lease term and discount rate as of November 30, 2022 and 2021 , respectively, were as follows: As of November 30, Operating lease term and discount rate 2022 2021 Weighted-average remaining lease term (years) 3.72 3.81 Weighted-average discount rate 5.24 % 5.82 % |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: The sources of income before the provision for income taxes are as follows: Fiscal Years Ended November 30, 2022 2021 2020 United States $ 7,883 $ 66,274 $ (64,491) Foreign 597,120 489,422 332,386 Total income before income taxes $ 605,003 $ 555,696 $ 267,895 Provision for income taxes consists of the following: Fiscal Years Ended November 30, 2022 2021 2020 Current tax provision (benefit): Federal $ 65,423 $ 54,809 $ 22,336 State 5,151 8,058 10 Foreign 129,613 112,981 100,588 $ 200,187 $ 175,848 $ 122,934 Deferred tax provision (benefit): Federal $ (19,596) $ (19,119) $ 49 State (12,303) (2,798) (336) Foreign 1,075 (3,812) (19,563) (30,824) (25,729) (19,850) Total income tax provision $ 169,363 $ 150,119 $ 103,084 Provision for income taxes for fiscal year 2020 was increased by an adjustment of $26,823 ($17,203 current tax expense plus $9,600 deferred tax expense) to reflect the hypothetical tax impact if Concentrix was not part of TD SYNNEX’ U.S. consolidated group and thereby suffered a much higher U.S. foreign tax credit limitation. The offset to the hypothetical tax expense was reflected in the former parent company investment balance, a component of equity on the consolidated balance sheet. The following presents the breakdown of net deferred tax liabilities after netting by taxing jurisdiction: As of November 30, 2022 2021 Deferred tax assets $ 48,541 $ 48,413 Deferred tax liabilities 105,458 109,471 Total net deferred tax liabilities $ 56,917 $ 61,058 Net deferred tax liabilities consist of the following: As of November 30, 2022 2021 Assets: Net operating losses $ 143,593 $ 68,360 Accruals and other reserves 41,119 48,469 Depreciation and amortization 13,319 12,625 U.S. interest limitation carry forward 4,026 984 Share-based compensation expense 7,505 4,464 Deferred revenue 4,335 4,629 Tax credits 8,415 2,506 Foreign tax credit 1,373 2,359 Operating lease liabilities 95,935 90,270 Intercompany loans payable 62,544 — Other 17,616 16,607 Gross deferred tax assets 399,780 251,273 Valuation allowance (103,169) (31,016) Total deferred tax assets $ 296,611 $ 220,257 Liabilities: Intangible assets $ 232,930 $ 160,802 Unremitted non-US earnings 31,223 32,199 Operating lease right-of-use assets 89,375 88,314 Total deferred tax liabilities 353,528 281,315 Net deferred tax liabilities $ 56,917 $ 61,058 The valuation allowance relates primarily to certain state and foreign net operating loss carry forwards, foreign deferred items and state credits. The Company’s assessment is that it is not more likely than not that these deferred tax assets will be realized. A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate is as follows: Fiscal Years Ended November 30, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal income tax benefit (1.4) % 0.6 % (0.2) % International rate difference (2.7) % (1.0) % 1.3 % Withholding taxes 1.1 % 0.4 % 0.8 % Uncertain tax benefits (0.3) % 0.3 % 0.9 % Changes in valuation allowance 1.3 % (1.6) % 0.5 % Impact of inclusion of foreign income (1) 9.2 % 2.8 % 3.3 % Hypothetical current tax expense recorded for separate return basis presentation — % — % 10.0 % Other (2) (0.2) % 4.5 % 0.9 % Effective income tax rate 28.0 % 27.0 % 38.5 % (1) Represents Subpart F income, Base Erosion and Anti-Abuse Tax (BEAT), and Global Intangible Low-Taxed Income (GILTI) (less Section 250 deduction), net of associated foreign tax credits. (2) Includes additional tax gain on the sale of CIS for the fiscal year ended November 30, 2021. The Company’s U.S. business has sufficient cash flow and liquidity to fund its operating requirements and the Company expects and intends that profits earned outside the United States will be fully utilized and reinvested outside of the United States with the exception of earnings of certain previously acquired non-U.S. entities. The Company has recorded deferred tax liabilities related to non-U.S. withholding taxes on the earnings likely to be repatriated in the future. As of November 30, 2022, the Company had approximately $1,715,750 of undistributed earnings of its non-U.S. subsidiaries for which it has not provided for non-U.S. withholding taxes and state taxes because such earnings are intended to be reinvested indefinitely in international operations. It is not practicable to determine the amount of applicable taxes that would be due if such earnings were distributed. Accordingly, the Company has not provisioned U.S. state taxes and non-U.S. withholding taxes on the non-U.S. legal entities for which the earnings are permanently reinvested. As of November 30, 2022, the Company had net operating loss carry forwards of approximately $344,847 and $52,815 for federal and state purposes, respectively. The federal net operating loss carry forward and the state net operating loss carry forwards will begin to expire in the fiscal year ending November 30, 2023. The increase in net operating loss carry forwards was due to the acquisition of ServiceSource and an incremental valuation allowance was established due to limitations under Section 382 of the Internal Revenue Code of 1986. The Company also had approximately $118,199 of foreign net operating loss carry forwards that will also begin to expire in fiscal year ending November 30, 2023 if not used. In addition, the Company has approximately $10,153 of various federal and state income tax credit carry forwards that, if not used, will begin to expire in the fiscal year ending November 30, 2023. Utilization of the acquired loss carry forwards may be limited pursuant to Section 382 of the Internal Revenue Code of 1986. The Company enjoys tax holidays in certain jurisdictions, primarily China, Costa Rica, Nicaragua and the Philippines. The tax holidays provide for lower or zero rates of taxation and require various thresholds of investment and business activities in those jurisdictions. The estimated tax benefits from the above tax holidays for fiscal years 2022, 2021, and 2020 were approximately $10,315, $9,160, and $12,850, respectively. The aggregate changes in the balances of gross unrecognized tax benefits, excluding accrued interest and penalties, during fiscal years 2022, 2021, and 2020 were as follows: Balance as of November 30, 2019 $ 48,928 Additions based on tax positions related to the current year 5,081 Additions for tax positions of prior years and acquisition 4,108 Settlements (144) Lapse of statute of limitations (10,061) Changes due to translation of foreign currencies 1 Balance as of November 30, 2020 47,913 Additions based on tax positions related to the current year 3,602 Reductions for tax positions of prior years (1,638) Settlements (2,108) Lapse of statute of limitations (426) Changes due to translation of foreign currencies 104 Balance as of November 30, 2021 47,447 Additions based on tax positions related to the current year 42,749 Settlements (4,882) Lapse of statute of limitations (14,351) Balance as of November 30, 2022 $ 70,963 The Company conducts business globally and files income tax returns in various U.S. and non-U.S. jurisdictions. The Company is subject to continuous examination and audits by various tax authorities. Significant audits are underway in the United States and India. The Company is not aware of any material exposures arising from these tax audits or in other jurisdictions not already provided for. Although timing of the resolution of audits and/or appeals is highly uncertain, the Company believes it is reasonably possible that the total amount of unrecognized tax benefits as of November 30, 2022 could decrease between $37,192 and $39,991 in the next twelve months. The Company is no longer subject to U.S. federal income tax audit for returns covering years through fiscal year 2017. The Company is no longer subject to non-U.S. or U.S. state income tax audits for returns covering years through fiscal year 2012 and fiscal year 2014, respectively. The liability for unrecognized tax benefits was $78,501 and $56,308 at November 30, 2022 and November 30, 2021, respectively, and is included in other long-term liabilities in the consolidated balance sheets. As of November 30, 2022 and 2021, $40,793 and $48,438 of the total unrecognized tax benefits, net of federal benefit, would affect the effective tax rate, if realized. The Company’s policy is to include interest and penalties related to income taxes, including unrecognized tax benefits, within the provision for income taxes. As of November 30, 2022 and 2021, the Company had accrued $7,538 and $8,861, respectively, in income taxes payable related to accrued interest and penalties. The net interest and penalties balance and the aggregate changes in the balance of gross unrecognized tax benefits as of November 30, 2021 include an immaterial prior period disclosure adjustment to properly present the balances. This disclosure adjustment resulted in no impact to the Company’s consolidated balance sheets or consolidated statement of operations for any period presented. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Nov. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: From time to time, the Company receives notices from third parties, including customers and suppliers, seeking indemnification, payment of money or other actions in connection with claims made against them. Also, from time to time, the Company has been involved in various bankruptcy preference actions where the Company was a supplier to the companies now in bankruptcy. In addition, the Company is subject to various other claims, both asserted and unasserted, that arise in the ordinary course of business. The Company evaluates these claims and records the related liabilities. It is possible that the liabilities ultimately incurred by the Company could differ from the amounts recorded. Under the separation and distribution agreement with TD SYNNEX, the Company agreed to indemnify TD SYNNEX, each of its subsidiaries and each of their respective directors, officers and employees from and against all liabilities allocated to Concentrix under the separation and distribution agreement, which are generally those liabilities that relate to the CX business and the Company’s business activities, whether incurred prior to or after the spin-off. Under the tax matters agreement with TD SYNNEX, if the spin-off fails to qualify for tax-free treatment, the Company is generally required to indemnify TD SYNNEX for any taxes resulting from the spin-off (and related costs and other damages) to the extent such amounts result from (1) an acquisition of all or a portion of the Company’s equity securities or assets by any means, (2) any action or failure to act by the Company after the distribution affecting the voting rights of the Company’s stock, (3) other actions or failures to act by the Company, or (4) certain breaches of the Company’s agreements and representations in the tax matters agreement. The Company’s indemnification obligations to TD SYNNEX and its subsidiaries, officers, directors and employees are not limited by any maximum amount. The Company does not believe that the above commitments and contingencies will have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Nov. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: Basic and diluted earnings per common share (“EPS”) are computed using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security. Basic EPS is generally computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is generally computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of restricted stock units and stock options are reflected in diluted net income per share by applying the treasury stock method. There were no Concentrix equity awards outstanding prior to the spin-off, thus the computation of basic and diluted earnings per common share for all prior year periods disclosed is calculated using the 51.6 million shares issued in connection with the spin-off. Fiscal Years Ended November 30, 2022 2021 2020 Basic earnings per common share: Net income $ 435,049 $ 405,577 $ 164,811 Less: net income allocated to participating securities (1) (6,631) (5,785) — Net income attributable to common stockholders $ 428,418 $ 399,792 $ 164,811 Weighted average common shares - basic 51,353 51,355 51,602 Basic earnings per common share $ 8.34 $ 7.78 $ 3.19 Diluted earnings per common share: Net income $ 435,049 $ 405,577 $ 164,811 Less: net income allocated to participating securities (1) (6,583) (5,724) — Net income attributable to common stockholders $ 428,466 $ 399,853 $ 164,811 Weighted-average number of common shares - basic 51,353 51,355 51,602 Effect of dilutive securities: Stock options and restricted stock units 387 559 — Weighted-average number of common shares - diluted 51,740 51,914 51,602 Diluted earnings per common share $ 8.28 $ 7.70 $ 3.19 (1) Restricted stock awards granted to employees by the Company are considered participating securities. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Nov. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 17—STOCKHOLDERS’ EQUITY: Share repurchase program In September 2021, the Company’s board of directors authorized the Company to purchase up to $500,000 of the Company’s outstanding shares of common stock from time to time as market and business conditions warrant, including through open market purchases or Rule 10b5-1 trading plans. The repurchase program has no termination date and may be suspended or discontinued at any time. During the fiscal years ended November 30, 2022 and 2021, the Company repurchased 842 and 138 shares, respectively, of its common stock for an aggregate purchase price of $120,819 and $25,100, respectively. The share repurchases were made on the open market and the shares repurchased by the Company are held in treasury for general corporate purposes. At November 30, 2022, approximately $354,085 remained available for share repurchases under the existing authorization from the Company’s board of directors. Dividends During fiscal years 2022 and 2021, the Company has paid the following dividends per share approved by the Company’s board of directors: Announcement Date Record Date Per Share Dividend Amount Payment Date September 27, 2021 October 22, 2021 $0.25 November 2, 2021 January 18, 2022 January 28, 2022 $0.25 February 8, 2022 March 29, 2022 April 29, 2022 $0.25 May 10, 2022 June 27, 2022 July 29, 2022 $0.25 August 9, 2022 September 8, 2022 October 28, 2022 $0.275 November 8, 2022 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation (including principles of consolidation) | Basis of presentation (including principles of consolidation) The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company, its majority-owned subsidiaries and entities over which the Company has control. All intercompany balances and transactions have been eliminated in consolidation. Prior to the spin-off on December 1, 2020 Prior to the spin-off, the CX business was held entirely within certain wholly-owned subsidiaries of TD SYNNEX dedicated to the CX business. As the separate legal entities that make up the CX business were not historically held by a single legal entity, the financial statements of the Company were prepared in connection with the expected separation and were derived from the TD SYNNEX consolidated financial statements and accounting records as if the Company had been operated on a stand-alone basis during the periods presented. Accordingly, for periods prior to December 1, 2020, the Company’s financial statements are presented on a combined basis, and for the periods subsequent to December 1, 2020, they are presented on a consolidated basis (all periods hereinafter are referred to as “consolidated financial statements”). All direct revenue and expenses attributable to the CX business, including certain allocations of former parent costs and expenses, were separately maintained in a separate ledger in the legal entities that make up the CX business. As the separate legal entities that make up the CX business were not historically held by a single legal entity, former parent company investment was shown in lieu of stockholders’ equity in the prior year periods. All significant intercompany balances and transactions between the legal entities that comprise the CX business were eliminated. Management of the Company and former parent consider allocations of former parent costs to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, have reflected the expense the Company would have incurred as a stand-alone company for those periods presented. Actual costs that may have been incurred if the Company had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and other strategic decisions. Prior to the spin-off, certain Concentrix legal entities in the United States jointly and severally guaranteed certain of TD SYNNEX’ borrowing arrangements and substantially all of the assets of these Concentrix legal entities secured TD SYNNEX’ obligations under the borrowing arrangements. Historically, Concentrix received or provided funding for acquisitions or ongoing operations as part of TD SYNNEX’ centralized treasury program. Accordingly, only cash amounts specifically recorded in the separate Concentrix ledger were reflected in the balance sheets. The Company reflected transfers of the cash from the former parent’s cash management system as loans or other accounts payable to the former parent or a reduction of accounts or loans receivable in the prior year balance sheet based on the purpose for which the cash was provided by the former parent. Similarly, cash transfers to the former parent were reflected as reductions of loans or other accounts payable to the former parent or loans receivable from the former parent. The cash payments and receipts were recorded in the prior year statements of cash flows as operating or financing activities based on the nature of the transactions for which the funds were transferred between the Company and the former parent. Prior to the spin-off, operations of Concentrix were included in the consolidated U.S. federal, and certain state and local income tax returns filed by TD SYNNEX, where applicable. Concentrix also filed certain separate state, local and foreign tax returns. Income tax expense and other income tax related information contained in the financial statements prior to the spin-off were presented on a separate return basis, which required the Company to estimate tax expense as if the Company filed a separate return apart from TD SYNNEX. The income taxes of Concentrix as presented in the financial statements for these periods may not be indicative of the income taxes that Concentrix has incurred following the spin-off or will incur in the future. |
Reclassifications | Risks and uncertainties related to the COVID-19 pandemic At its height, the COVID-19 pandemic had a significant negative effect on the global economy, supply chains and labor force participation, and created significant volatility in financial markets. The Company successfully transitioned a significant portion of its workforce to a remote working environment throughout the second quarter of 2020 and implemented a number of safety and social distancing measures in the Company’s sites to protect the health and safety of staff. During fiscal year 2022, almost all of the Company’s workforce was productive, but the Company experienced the continued effects of the COVID-19 pandemic, as variants caused new waves of COVID-19 cases around the globe. The extent of the future impact of the COVID-19 pandemic on the Company’s operational and financial performance, including its ability to execute business strategies and initiatives in the expected time frame, will depend on future developments, including the duration, spread and severity of the pandemic, the evolution of the virus and the effects of mutations in its genetic code, country and state restrictions regarding virus containment, the availability and effectiveness of vaccines and treatment options, accessibility to the Company’s delivery and operations locations, its continued utilization of remote work environments in response to future health and safety restrictions, the Company’s clients’ acceptance of remote work environments, and the effect on the Company’s clients’ businesses and the demand for their products and services, all of which are uncertain and cannot be predicted. The Company is unable to predict how long the pandemic conditions will persist in regions in which the Company operates, if or when countries or localities may experience an increase in COVID-19 cases, what additional measures may be introduced by governments or the Company’s clients in response to the pandemic generally or to an increase in COVID-19 cases in a particular country or locality, and the effect of any such additional measures on the Company’s business. As a result, many of the estimates and assumptions used in preparation of these consolidated financial statements required increased judgment and carry a higher degree of |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. The Company evaluates these estimates on a regular basis and bases them on historical experience and on various assumptions that the Company believes are reasonable. Actual results could differ from the estimates. |
Segment reporting | Segment reporting Concentrix operations are based on an integrated global delivery model whereby services under a client contract in one location may be provided from delivery centers located in one or more different countries, with more than half of the Company’s workforce located in the Philippines and India. Given the homogeneity of technology-infused CX services and the integrated delivery model, the Company operates in a single segment, based on how the chief operating decision maker (“CODM”) views and evaluates the Company’s operations in making operational and strategic decisions and assessments of financial performance. The Company’s President and Chief Executive Officer has been identified as the CODM. |
Cash equivalents | Cash equivalents The Company considers all highly liquid debt instruments purchased with an original maturity or remaining maturity at the date of purchase of three months or less to be cash equivalents. Cash equivalents consist principally of money market deposit accounts that are stated at cost, which approximates fair value. The Company is exposed to credit risk in the event of default by financial institutions to the extent that cash balances with financial institutions are in excess of amounts that are insured. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable are comprised primarily of amounts owed to the Company by clients and are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts is an estimate to cover the losses resulting from uncertainty regarding collections from customers to make payments for outstanding balances. In estimating the required allowance, the Company considers the overall quality and aging of the accounts receivable and credit evaluations of its clients’ financial condition. The Company also evaluates the collectability of accounts receivable based on specific client circumstances, current economic trends, historical experience with collections and the value and adequacy of any collateral received from clients. |
Unbilled receivables | Unbilled receivables In the majority of service contracts, the Company performs the services prior to billing the client, and this amount is captured as an unbilled receivable included in accounts receivable, net on the consolidated balance sheet. Billing usually occurs in the month after the Company performs the services or in accordance with the specific contractual provisions. |
Derivative financial instruments | Derivative financial instruments The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of “Accumulated other comprehensive income (loss),” in stockholders’ equity and reclassified into earnings in the same line associated with the forecasted transactions, in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. For derivative instruments that are not designated as cash flow hedges, gains and losses on derivative instruments are reported in the consolidated statements of operations in the current period. |
Software costs | Software costs The Company develops software platforms for internal use. The Company capitalizes costs incurred to develop software subsequent to the software product reaching the application development stage. The Company also capitalizes the costs incurred to extend the life of existing software, or the cost of significant enhancements that are added to the features of existing software. The capitalized development costs primarily comprise payroll costs and related software costs. Capitalized costs are amortized over the economic life of the software using the straight line method. |
Property and equipment | Property and equipmentProperty and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight line method based upon the shorter of the estimated useful lives of the assets, or the lease term of the respective assets, if applicable. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in operations in the period realized. |
Leases | Leases The Company enters into leases as a lessee for property and equipment in the ordinary course of business. When procuring services, or upon entering into a contract with its clients, the Company determines whether an arrangement contains a lease at its inception. As part of that evaluation, the Company considers whether there is an implicitly or explicitly identified asset in the arrangement and whether the Company, as the lessee, or the client, if the Company is the lessor, has the right to control the use of that asset. When the Company is the lessee, all leases with a term of more than 12 months are recognized as right-of-use (“ROU”) assets and associated lease liabilities in the consolidated balance sheet. Lease liabilities are measured at the lease commencement date and determined using the present value of the lease payments not yet paid, at the Company’s incremental borrowing rate, which approximates the rate at which the Company would borrow on a secured basis in the country where the lease was executed. The interest rate implicit in the lease is generally not determinable in the transactions where the Company is the lessee. The ROU asset equals the lease liability adjusted for any initial direct costs, prepaid rent and lease incentives. The Company’s variable lease payments generally relate to payments tied to various indexes, non-lease components and payments above a contractual minimum fixed amount. Operating leases are included in other assets, net, other accrued liabilities and other long-term liabilities in the consolidated balance sheet. Substantially all of the Company’s leases are classified as operating leases. The Company recognizes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company made a policy election to not recognize leases with a lease term of 12 months or less in the consolidated balance sheet. Lease expenses are recorded within selling, general, and administrative expenses in the consolidated statements of operations. Operating lease payments are presented within “Cash flows from operating activities” in the consolidated statements of cash flows. For all asset classes, the Company has elected the lessee practical expedient to combine lease and non-lease components (e.g., maintenance services) and account for the consolidated unit as a single lease component. Variable lease payments are recognized in the periods in which the obligations for those payments are incurred. |
Business combinations | Business combinations The purchase price is allocated to the assets acquired, liabilities assumed, and non-controlling interests in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired entity and the Company and the value of the acquired assembled workforce, neither of which qualify for recognition as an intangible asset. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. The Company includes the results of operations of the acquired business in the consolidated financial statements prospectively from the date of acquisition. Acquisition-related charges are recognized separately from the business combination and are expensed as incurred. These charges primarily include direct third-party professional and legal fees and integration-related costs. |
Goodwill and intangible assets | Goodwill and intangible assets The Company tests goodwill for impairment annually at the reporting unit level in the fiscal fourth quarter or more frequently if events or changes in circumstances indicate that it may be impaired. For purposes of the goodwill impairment test, the Company can elect to perform a quantitative or qualitative analysis. If the qualitative analysis is elected, goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. The factors that are considered in the qualitative analysis include: macroeconomic conditions; industry and market considerations; cost factors such as increases in labor, or other costs that would have a negative effect on earnings and cash flows; and other relevant entity-specific events and information. If the Company elects to perform or is required to perform a quantitative analysis, then the reporting unit’s carrying value is compared to its fair value. As part of this analysis, the Company reconciles the fair value of its reporting unit to its market capitalization. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value and the excess is recognized as an impairment loss. No goodwill impairment has been identified for any of the fiscal years presented in these consolidated financial statements. The values assigned to intangible assets are based on estimates and judgment regarding expectations for the length of customer relationships and the success of life cycle of technologies acquired in a business combination. Purchased intangible assets are amortized over the useful lives based on estimates of the use of the economic benefit of the asset or by using the straight line method. Intangible assets consist of customer relationships, technology, trade names and non-compete agreements. Amortization is based on the pattern over which the economic benefits of the intangible assets will be consumed or, when the consumption pattern is not apparent, by using the straight line method over the following useful lives: |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews the recoverability of its long-lived assets, such as intangible assets subject to amortization, property and equipment and certain other assets, including lease right-of-use assets, when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows, undiscounted and without interest charges, of the related operations. If these cash flows are less than the carrying value of such assets, an impairment loss is recognized for the difference between estimated fair value and carrying value. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash and cash equivalents, accounts receivable and derivative instruments. The Company’s cash and cash equivalents and derivative instruments are transacted and maintained with financial institutions with high credit standing, and their compositions and maturities are regularly monitored by management. Through November 30, 2022, the Company has not experienced any credit losses on such deposits and derivative instruments. Accounts receivable comprise amounts due from clients. The Company performs ongoing credit evaluations of its clients’ financial condition and limits the amount of credit extended when deemed necessary, but generally requires no collateral. The Company also maintains allowances for potential credit losses. In estimating the required allowances, the Company takes into consideration the overall quality and aging of its receivable portfolio and specifically identified client risks. In fiscal year 2022, no client accounted for more than 10% of the Company’s consolidated revenue. In fiscal years 2021 and 2020, one client accounted for 11.9% and 11.5%, respectively, of the Company’s consolidated revenue. |
Revenue recognition | Revenue recognition The Company generates revenue primarily from the provision of CX solutions and technology to its clients . The Company recognizes revenue from services contracts over time as the promised services are delivered to clients for an amount that reflects the consideration to which the Company is entitled in exchange for those services. The Company recognizes revenue over time as the client simultaneously receives and consumes the benefits provided by the Company as the Company performs the services. The Company accounts for a contract with a client when it has written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. Revenue is presented net of taxes collected from clients and remitted to government authorities. The Company generally invoices a client after performance of services, or in accordance with specific contractual provisions. Payments are due as per contract terms and do not contain a significant financing component. The Company determines whether the services performed during the initial phases of an arrangement, such as setup activities, are distinct. In most cases, the arrangement is a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of service). Service contracts are most significantly based on a fixed unit-price per transaction or other objective measure of output. Revenue on unit-price transactions is recognized over time using an objective measure of output such as staffing hours or the number of transactions processed by service advisors. Certain contracts may be based on a fixed price. Revenue on fixed price contracts is recognized over time using an input measure or on a straight-line basis over the term of the contract as the services are provided based on the nature of the contract. Client contract terms can range from less than one year to more than five years. Certain client contracts include incentive payments from the client upon achieving certain agreed-upon service levels and performance metrics or service level agreements that could result in credits or refunds to the client. Revenue relating to such arrangements is accounted for as variable consideration when the likely 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. |
Cost of revenue | Cost of revenueRecurring direct operating costs for services are recognized as incurred. Cost of services revenue consists primarily of personnel costs and transition and initial set up costs. |
Selling, general and administrative expenses | Selling, general and administrative expenses Selling, general and administrative expenses are charged to income as incurred. Expenses of promoting and selling products and services are classified as selling expense and include such items as compensation, sales commissions and travel. General and administrative expenses include such items as compensation, cost of delivery centers, legal and professional costs, office supplies, non-income taxes, insurance and utility expenses. In addition, selling, general and administrative expenses include other operating items such as allowances for credit losses, depreciation and amortization of non-technology related intangible assets. |
Advertising | Advertising Costs related to advertising and service promotion expenditures are charged to “Selling, general and administrative expenses” as incurred. To date, net costs related to advertising and promotion expenditures have not been material. |
Income taxes | Income taxes Prior to December 1, 2020, the Company’s operations were included in the tax returns filed by the respective former parent entities of which the Company’s businesses were a part. For the fiscal year ended November 30, 2020, income tax expense and other income tax related information contained in these consolidated financial statements are presented on a separate return basis as if the Company filed its own tax returns. The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will be in effect when the difference is expected to reverse. Tax on global low-taxed intangible income is accounted for as a current expense in the period in which the income is includable in a tax return using the “period cost” method. Valuation allowances are provided against deferred tax assets that are not likely to be realized. The Company recognizes tax benefits from uncertain tax positions only if that tax position is more likely than not to be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits in the provisions for income taxes. |
Foreign currency translations | Foreign currency translations The functional currencies of the legal entities’ financial statements included in these consolidated financial statements are the local currencies of the legal entities and are translated into U.S. dollars for consolidation as |
Other comprehensive income | Other comprehensive income The primary components of other comprehensive income for the Company include foreign currency translation adjustments arising from the combination of foreign legal entities engaged in the CX business, unrealized gains and losses on cash flow hedges, and changes in unrecognized pension and post-retirement benefits. |
Share-based compensation | Share-based compensation Share-based compensation cost for stock options, restricted stock awards and restricted stock units is determined based on the fair value at the measurement date. The Company recognizes share-based compensation cost as expense for these awards ratably on a straight-line basis over the requisite service period. Share-based compensation for performance-based restricted stock units is measured based on fair value at the initial measurement date and is adjusted each reporting period, as necessary, to reflect changes in management’s assessment of the probability that performance conditions will be satisfied and, for certain awards, to reflect changes in the Company’s stock price. The Company recognizes share-based compensation cost associated with its performance-based restricted stock units over the requisite service period if it is probable that the performance conditions will be satisfied. The Company accounts for expense reductions that result from the forfeiture of unvested awards in the period that the forfeitures occur. |
Pension and post-retirement benefits | Pension and post-retirement benefits The funded status of the Company’s pension and other post-retirement benefit plans is recognized in the consolidated balance sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at November 30, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and, for the other post-retirement benefit plans, the benefit obligation is the accumulated post-retirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement. For active plans, the present value reflects estimated future compensation levels. The APBO represents the actuarial present value of post-retirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligation is based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain key assumptions that require significant judgment, including, but not limited to, estimates of discount rates, expected return on plan assets, inflation, rate of compensation increases, interest crediting rates and mortality rates. The assumptions used are reviewed on an annual basis. |
Earnings per common share | Earnings per common share Basic and diluted earnings per common share are calculated using the two-class method. The two-class method is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. The Company’s restricted stock awards are considered participating securities because they are legally issued at the grant date and holders have a non-forfeitable right to receive dividends. Basic earnings per common share is computed by dividing net income attributable to the Company’s common stockholders by the weighted-average common shares outstanding during the period. Diluted earnings per common share also considers the dilutive effect of in-the-money stock options and restricted stock units, calculated using the treasury stock method. |
Treasury stock | Treasury stock Repurchases of shares of common stock are accounted for at cost and are included as a component of stockholders’ equity in the consolidated balance sheets. |
Accounting pronouncements adopted and recently issued accounting pronouncements not yet adopted | Accounting pronouncements recently adopted In December 2019, the FASB issued new guidance that simplified the accounting for income taxes. The guidance is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those reporting periods. This standard became effective for the Company in fiscal year 2022 and did not have a material impact on the consolidated financial statements. No other new accounting pronouncements recently adopted or issued had or are expected to have a material impact on the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment Useful Life | The ranges of estimated useful lives for property and equipment categories are as follows: Equipment and furniture 3 - 10 years Software 3 - 7 years Leasehold improvements 2 - 15 years Buildings and building improvements 10 - 39 years Property and equipment, net: The following table summarizes the carrying amounts and related accumulated depreciation for property and equipment as of November 30, 2022 and 2021: As of November 30, 2022 2021 Land $ 27,336 $ 27,677 Equipment, computers and software 542,209 488,270 Furniture and fixtures 89,167 90,442 Buildings, building improvements and leasehold improvements 362,218 364,166 Construction-in-progress 14,975 10,741 Total property and equipment, gross $ 1,035,905 $ 981,296 Less: Accumulated depreciation (632,076) (574,152) Property and equipment, net $ 403,829 $ 407,144 Shown below are the countries where 10% or more of the Company’s property and equipment, net are located as of November 30, 2022 and 2021: As of November 30, 2022 2021 Property and equipment, net: United States $ 123,184 $ 101,333 Philippines 76,361 87,548 India 42,698 46,167 Others 161,586 172,096 Total $ 403,829 $ 407,144 |
Schedule of Intangible Assets Useful Life | Customer relationships 10 - 15 years Technology 5 years Trade names 3 - 5 years Non-compete agreements 3 years As of November 30, 2022 As of November 30, 2021 Gross amounts Accumulated amortization Net amounts Gross amounts Accumulated amortization Net amounts Customer relationships $ 1,731,610 $ (811,727) $ 919,883 $ 1,347,961 $ (694,701) $ 653,260 Technology 79,728 (21,820) 57,908 10,835 (8,900) 1,935 Trade names 14,552 (8,291) 6,261 6,724 (6,391) 333 Non-compete agreements 2,200 (680) 1,520 — — — $ 1,828,090 $ (842,518) $ 985,572 $ 1,365,520 $ (709,992) $ 655,528 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | The purchase price consideration to acquire PK consisted of the following: Cash consideration for PK stock (1) $ 1,177,342 Cash consideration for PK vested equity awards (2) 246,229 Cash consideration for repayment of PK debt, including accrued interest (3) 148,492 Cash consideration for transaction expenses of PK (4) 22,842 Total cash consideration 1,594,905 Non-cash equity consideration for conversion of PK equity awards (5) 15,725 Total consideration transferred 1,610,630 Less: Cash and restricted cash acquired (6) 37,310 Total purchase price consideration $ 1,573,320 (1) Represents the cash consideration paid for the outstanding shares of PK’s common stock, which includes the final settlement of the merger consideration adjustment paid pursuant to the merger agreement. (2) Represents the cash consideration paid for certain vested PK stock option awards and restricted stock awards. (3) Represents the cash consideration paid to retire PK’s outstanding third-party debt, including accrued interest. (4) Represents the cash consideration paid for expenses incurred by PK in connection with the merger and paid by Concentrix pursuant to the merger agreement. These expenses primarily related to third-party consulting services. (5) Represents the issuance of vested Concentrix stock options that were issued in conversion of certain vested PK stock options that were assumed by Concentrix pursuant to the merger agreement. (6) Represents the PK cash and restricted cash balance acquired at the acquisition. The preliminary purchase price consideration to acquire ServiceSource consisted of the following: Cash consideration for ServiceSource stock (1) $ 150,392 Cash consideration for ServiceSource vested and unvested equity awards (2) 6,704 Cash consideration for repayment of ServiceSource debt, including accrued interest (3) 10,063 Total consideration transferred 167,159 Less: Cash and restricted cash acquired (4) 25,652 Total purchase price consideration $ 141,507 (1) Represents the cash consideration paid for the outstanding shares of ServiceSource’s common stock. (2) Represents the cash consideration paid or to be paid for vested and unvested ServiceSource stock option awards, restricted stock units and performance stock units. (3) Represents the cash consideration paid to retire ServiceSource’s outstanding third-party debt, including accrued interest. (4) Represents the ServiceSource cash and restricted cash balance acquired at the acquisition. |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the final fair values of the assets acquired, liabilities assumed and non-controlling interest as of the acquisition date: As of December 27, 2021 Assets acquired: Cash and cash equivalents $ 30,798 Accounts receivable 85,367 Property and equipment 11,158 Operating lease right-of-use assets 12,288 Identifiable intangible assets 469,300 Goodwill 1,119,068 Other assets 26,449 Total assets acquired 1,754,428 Liabilities assumed and non-controlling interest: Accounts payable and accrued liabilities 78,092 Operating lease liabilities 12,288 Deferred tax liabilities 51,418 Non-controlling interest 2,000 Total liabilities assumed and non-controlling interest 143,798 Total consideration transferred $ 1,610,630 The following table summarizes the preliminary estimates of fair values of the assets acquired and liabilities assumed as of the acquisition date: As of July 20, 2022 Assets acquired: Cash and cash equivalents $ 24,355 Accounts receivable 40,097 Property and equipment 8,112 Operating lease right-of-use assets 29,487 Identifiable intangible assets 40,200 Goodwill 45,502 Net deferred tax assets 22,724 Other assets 20,238 Total assets acquired 230,715 Liabilities assumed: Accounts payable and accrued liabilities 34,069 Operating lease liabilities 29,487 Total liabilities assumed 63,556 Total consideration transferred $ 167,159 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The amounts allocated to intangible assets are as follows: Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 398,600 15 years Technology 63,500 5 years Trade name 5,000 3 years Non-compete agreements 2,200 3 years Total $ 469,300 The preliminary amounts allocated to intangible assets are as follows: Gross Carrying Amount Weighted-Average Useful Life Customer relationships $ 31,370 15 years Technology 5,640 5 years Trade name 3,190 3 years Total $ 40,200 |
Business Acquisition, Pro Forma Information | The supplemental pro forma financial information for the periods presented is as follows: Fiscal Years Ended November 30, 2022 2021 Revenue $ 6,357,434 $ 6,023,726 Net income 431,816 392,837 Fiscal Year Ended November 30, 2022 Revenue $ 512,942 Loss before income taxes (8,472) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | The Company recorded share-based compensation expense in the consolidated statements of operations for fiscal years 2022, 2021 and 2020 as follows: Fiscal Years Ended November 30, 2022 2021 2020 Total share-based compensation $ 47,516 $ 36,762 $ 15,914 Tax benefit recorded in the provision for income taxes (12,069) (9,234) (3,979) Effect on net income $ 35,447 $ 27,528 $ 11,935 |
Share-based Payment Arrangement, Option, Activity | A summary of the changes in the former parent employee stock options during fiscal year 2020 is presented below: Options Outstanding Number of former parent shares (in thousands) Weighted- average exercise price per former parent share Balance as of November 30, 2019 122 $ 92.68 Options granted — — Balance as of November 30, 2020 122 $ 92.68 A summary of the changes in the employee stock options during fiscal years 2021 and 2022 is presented below: Options Outstanding Number of shares (in thousands) Weighted- average exercise price per share Balance as of December 1, 2020 (converted from former parent stock options in connection with the spin-off) (1) 684 $ 45.84 Options granted 26 119.72 Options exercised (269) 43.34 Balance as of November 30, 2021 441 51.75 Options granted — — Options issued in conversion of certain vested PK stock options (2) 119 45.81 Options exercised (165) 46.38 Balance as of November 30, 2022 395 $ 52.60 (1) Amounts represent Concentrix awards, including those held by TD SYNNEX employees. (2) Amounts represent the issuance of vested Concentrix stock options that were issued in conversion of certain vested PK stock options that were assumed by Concentrix pursuant to the merger agreement with PK. |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the changes in the former parent non-vested restricted stock awards, restricted stock units, and performance-based restricted stock units during fiscal year 2020 is presented below: Number of former parent shares (in thousands) Weighted-average, grant-date fair value per former parent share Non-vested as of November 30, 2019 591 $ 102.12 Awards granted 7 78.47 Units granted 1 83.88 Awards and units vested (110) 102.77 Awards and units cancelled/forfeited (31) 102.04 Non-vested as of November 30, 2020 458 $ 101.57 A summary of the changes in the non-vested restricted stock awards, restricted stock units, and performance-based stock units during fiscal years 2021 and 2022, including the conversion of former parent awards and stock units previously discussed, is presented below: Number of shares (in thousands) Weighted-average, grant-date fair value per share Balance as of December 1, 2020 (converted from former parent awards and units in connection with the spin-off) (1) 827 $ 51.53 Awards granted 495 134.65 Units granted (2) 226 154.53 Awards and units vested (504) 61.95 Awards and units cancelled/forfeited (64) 84.20 Non-vested as of November 30, 2021 980 109.92 Awards granted 510 139.31 Units granted (2) 294 130.98 Awards and units vested (283) 91.62 Awards and units cancelled/forfeited (106) 118.79 Non-vested as of November 30, 2022 1,395 $ 124.69 (1) Amounts represent Concentrix awards, including those held by TD SYNNEX employees. (2) For performance-based restricted stock units, the target number of shares that can be awarded upon full vesting of the grants is included. |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows: As of November 30, 2022 2021 Cash and cash equivalents $ 145,382 $ 182,038 Restricted cash included in other current assets 12,081 972 Cash, cash equivalents and restricted cash $ 157,463 $ 183,010 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows: As of November 30, 2022 2021 Cash and cash equivalents $ 145,382 $ 182,038 Restricted cash included in other current assets 12,081 972 Cash, cash equivalents and restricted cash $ 157,463 $ 183,010 |
Schedule of Accounts Receivable | Accounts receivable, net: Accounts receivable, net is comprised of the following as of November 30, 2022 and 2021: As of November 30, 2022 2021 Billed accounts receivable $ 782,049 $ 714,032 Unbilled accounts receivable 613,222 499,342 Less: Allowance for doubtful accounts (4,797) (5,421) Accounts receivable, net $ 1,390,474 $ 1,207,953 |
Schedule of Allowance for Doubtful Trade Receivables | Allowance for doubtful trade receivables: Presented below is a progression of the allowance for doubtful trade receivables: Fiscal Years Ended November 30, 2022 2021 2020 Balance at beginning of period $ 5,421 $ 8,963 $ 6,055 Net additions (reductions) 3,329 (202) 8,140 Write-offs and reclassifications (3,953) (3,340) (5,232) Balance at end of period $ 4,797 $ 5,421 $ 8,963 |
Property, Plant and Equipment | The ranges of estimated useful lives for property and equipment categories are as follows: Equipment and furniture 3 - 10 years Software 3 - 7 years Leasehold improvements 2 - 15 years Buildings and building improvements 10 - 39 years Property and equipment, net: The following table summarizes the carrying amounts and related accumulated depreciation for property and equipment as of November 30, 2022 and 2021: As of November 30, 2022 2021 Land $ 27,336 $ 27,677 Equipment, computers and software 542,209 488,270 Furniture and fixtures 89,167 90,442 Buildings, building improvements and leasehold improvements 362,218 364,166 Construction-in-progress 14,975 10,741 Total property and equipment, gross $ 1,035,905 $ 981,296 Less: Accumulated depreciation (632,076) (574,152) Property and equipment, net $ 403,829 $ 407,144 Shown below are the countries where 10% or more of the Company’s property and equipment, net are located as of November 30, 2022 and 2021: As of November 30, 2022 2021 Property and equipment, net: United States $ 123,184 $ 101,333 Philippines 76,361 87,548 India 42,698 46,167 Others 161,586 172,096 Total $ 403,829 $ 407,144 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes, were as follows: Unrecognized gains (losses) on defined benefit plan, net of taxes Unrealized gains (losses) on cash flow hedges, net of taxes Foreign currency translation adjustment and other, net of taxes Total Balance, November 30, 2020 $ (38,584) $ 29,239 $ 5,531 $ (3,814) Other comprehensive income (loss) before reclassification 15,839 (8,396) (51,909) (44,466) Reclassification of (gains) losses from other comprehensive income (loss) — (22,246) — (22,246) Balance, November 30, 2021 $ (22,745) $ (1,403) $ (46,378) $ (70,526) Other comprehensive income (loss) before reclassification 14,274 (45,464) (240,986) (272,176) Reclassification of gains from other comprehensive income (loss) — 26,953 — 26,953 Balance, November 30, 2022 $ (8,471) $ (19,914) $ (287,364) $ (315,749) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Below is a progression of goodwill for fiscal years 2022 and 2021: Fiscal Years Ended November 30, 2022 2021 Balance, beginning of year $ 1,813,502 $ 1,836,050 Acquisitions 1,165,072 3,502 Divestitures — (14,690) Foreign currency translation (74,172) (11,360) Balance, end of year $ 2,904,402 $ 1,813,502 |
Schedule of Intangible Assets | Customer relationships 10 - 15 years Technology 5 years Trade names 3 - 5 years Non-compete agreements 3 years As of November 30, 2022 As of November 30, 2021 Gross amounts Accumulated amortization Net amounts Gross amounts Accumulated amortization Net amounts Customer relationships $ 1,731,610 $ (811,727) $ 919,883 $ 1,347,961 $ (694,701) $ 653,260 Technology 79,728 (21,820) 57,908 10,835 (8,900) 1,935 Trade names 14,552 (8,291) 6,261 6,724 (6,391) 333 Non-compete agreements 2,200 (680) 1,520 — — — $ 1,828,090 $ (842,518) $ 985,572 $ 1,365,520 $ (709,992) $ 655,528 |
Schedule of Intangible Assets, Future Amortization Expense | Amortization expense for intangible assets was $162,673, $136,939, and $147,283 for the fiscal years ended November 30, 2022, 2021 and 2020, respectively, and the related estimated expense for the five subsequent fiscal years and thereafter is as follows: Fiscal Years Ending November 30, Amortization Expense 2023 $ 156,643 2024 145,746 2025 133,700 2026 117,237 2027 87,022 Thereafter 345,224 Total $ 985,572 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of the Company’s derivative instruments are disclosed in Note 8—Fair Value Measurements and summarized in the table below: Value as of Balance Sheet Line Item November 30, 2022 November 30, 2021 Derivative instruments not designated as hedging instruments: Foreign exchange forward contracts (notional value) $ 1,465,853 $ 1,415,447 Other current assets 22,839 10,058 Other accrued liabilities 14,934 12,542 Derivative instruments designated as cash flow hedges: Foreign exchange forward contracts (notional value) $ 963,844 $ 918,097 Other current assets and other assets 6,389 7,851 Other accrued liabilities and other long-term liabilities 32,935 9,736 |
Derivative Instruments, Gain (Loss) | The following table shows the gains and losses, before taxes, of the Company’s derivative instruments designated as cash flow hedges and not designated as hedging instruments in other comprehensive income (“OCI”), and the consolidated statements of operations for the periods presented: Fiscal Years Ended November 30, Location of gain (loss) in statement of operations 2022 2021 2020 Derivative instruments designated as cash flow hedges: (Losses) gains recognized in OCI: Foreign exchange forward contracts $ (60,891) $ (11,105) $ 45,986 Gains (losses) reclassified from AOCI into income: Foreign exchange forward contracts (Loss) gain reclassified from AOCI into income Cost of revenue for services $ (28,108) $ 21,138 $ 21,532 (Loss) gain reclassified from AOCI into income Selling, general and administrative expenses (8,121) 8,606 8,841 Total $ (36,229) $ 29,744 $ 30,373 Derivative instruments not designated as hedging instruments: (Loss) gain recognized from foreign exchange forward contracts, net (1) Other expense (income), net $ (57,983) $ (2,880) $ 32,150 (1) The gains and losses largely offset the currency gains and losses that resulted from changes in the assets and liabilities denominated in nonfunctional currencies. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis: As of November 30, 2022 As of November 30, 2021 Fair value measurement category Fair value measurement category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 89,932 $ 89,932 $ — $ — $ 77,332 $ 77,332 $ — $ — Foreign government bond 1,529 1,529 — — 1,446 1,446 — — Forward foreign currency exchange contracts 29,228 — 29,228 — 17,909 — 17,909 — Liabilities: Forward foreign currency exchange contracts $ 47,869 $ — $ 47,869 $ — $ 22,278 $ — $ 22,278 $ — |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Borrowings consist of the following: As of November 30, 2022 2021 Credit Facility - current portion of Term Loan component $ — $ — Current portion of long-term debt $ — $ — Credit Facility - Term Loan component $ 1,875,000 $ — Credit Facility - Prior Term Loan component — 700,000 Securitization Facility 356,500 105,000 Long-term debt, before unamortized debt discount and issuance costs 2,231,500 805,000 Less: unamortized debt discount and issuance costs (7,212) (2,983) Long-term debt, net $ 2,224,288 $ 802,017 |
Schedule of Maturities of Long-term Debt | As of November 30, 2022, future principal payments under the above loans for the subsequent fiscal years are as follows: Amount Fiscal Years Ending November 30, 2023 $ — 2024 394,000 2025 105,000 2026 105,000 2027 1,627,500 Total $ 2,231,500 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | In the following tables, the Company’s revenue is disaggregated by primary industry verticals and geographic location: Fiscal Years Ended November 30, 2022 2021 2020 Industry vertical: Technology and consumer electronics $ 1,980,666 $ 1,759,203 $ 1,422,817 Retail, travel and ecommerce 1,184,086 985,550 796,324 Communications and media 1,076,289 1,005,283 954,234 Banking, financial services and insurance 967,810 862,033 712,469 Healthcare 608,169 489,855 392,686 Other 507,453 485,091 441,004 Total $ 6,324,473 $ 5,587,015 $ 4,719,534 The following table presents revenue by geographical location where the Company’s services are delivered. Shown below are the countries that account for the Company’s revenue for the periods presented: Fiscal Years Ended November 30, 2022 2021 2020 Revenue by geography: Philippines $ 1,476,706 $ 1,335,326 $ 1,205,764 United States 1,388,514 884,777 812,903 India 811,492 723,495 615,291 Canada 326,162 338,255 215,248 Germany 232,282 233,001 173,513 Great Britain 211,219 307,109 235,006 Others 1,878,098 1,765,052 1,461,809 Total $ 6,324,473 $ 5,587,015 $ 4,719,534 |
TRANSACTIONS WITH FORMER PARE_2
TRANSACTIONS WITH FORMER PARENT (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents the Company’s related party transactions with TD SYNNEX prior to the spin-off. Fiscal Year Ended November 30, 2020 Revenue from customer experience services to Parent $ 20,855 Purchases from Parent and its non-Concentrix subsidiaries — Interest expense on borrowings from Parent 50,615 Interest income on borrowings made to Parent 2,065 Corporate allocations 1,574 Share-based compensation 15,914 |
Compensation Related Costs, Ret
Compensation Related Costs, Retirement Benefits (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Components of pension cost for the Company’s defined benefit plans are as follows: Fiscal Years Ended November 30, 2022 2021 2020 Service costs $ 7,031 $ 8,148 $ 7,498 Interest costs on projected benefit obligation 6,828 6,284 8,385 Expected return on plan assets (6,562) (6,032) (6,403) Amortization and deferrals, net 1,540 4,542 2,851 Settlement charges 600 485 1,271 Total pension costs $ 9,437 $ 13,427 $ 13,602 |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The status of the Company’s defined benefit plans is summarized below: Fiscal Years Ended November 30, 2022 2021 Change in Benefit Obligation: Benefit obligation at beginning of year $ 266,620 $ 281,957 Service costs 7,031 8,148 Interest costs 6,828 6,284 Actuarial gains (1) (43,290) (6,679) Benefits paid (16,899) (14,844) Settlements (4,676) (5,893) Foreign currency adjustments (6,448) (2,353) Projected obligation at end of year $ 209,166 $ 266,620 Change in Plan Assets: Fair value of plan assets at beginning of year $ 161,931 $ 147,558 Actual return on assets (20,648) 13,534 Settlements (5,195) (5,893) Employer contributions 12,776 14,563 Benefits paid (10,754) (7,711) Foreign currency adjustments (759) (120) Fair value of plan assets at end of year $ 137,351 $ 161,931 Funded Status of Plans: Unfunded status $ 71,815 $ 104,689 |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheet and recorded within other accrued liabilities and other long-term liabilities as of November 30, 2022 and 2021 consist of the following: As of November 30, 2022 2021 Current liability $ 14,913 $ 15,884 Non-current liability 56,902 88,805 Total $ 71,815 $ 104,689 |
Schedule Of Defined Benefit Plan Weighted Average Rates Used In Determining Benefit Obligations And Pension Costs | The following weighted-average rates were used in determining the benefit obligations as of November 30, 2022 and 2021: As of November 30, 2022 2021 Discount rate 4.0% - 7.5% 1.2% - 5.3% Interest crediting rate for cash balance plan 4.0 % 4.0 % Expected rate of future compensation growth 1.8% - 8.8% 1.8% - 8.5% The following weighted-average rates were used in determining the pension costs for the fiscal years ended November 30, 2022 and 2021: Fiscal Years Ended November 30, 2022 2021 Discount rate 1.2% - 5.3% 0.3% - 4.8% Interest crediting rate for cash balance plan 4.0 % 4.0 % Expected return on plan assets 1.0% - 7.0% 1.0% - 7.5% Expected rate of future compensation growth 1.8% - 10.0% 1.8% - 8.5% |
Schedule of Allocation of Plan Assets | The following table sets forth by level within the fair value hierarchy, total plan assets at fair value as of November 30, 2022 and 2021, including the cash balance plan and other funded benefit plans: Investments As of November 30, 2022 As of Quoted Prices in Active Markets for Identical Assets As of Significant Other Observable Inputs (Level 2) As of Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 4,034 $ 4,034 $ — $ — Common/collective trusts: Fixed income 47,439 — 47,439 — U.S. large cap 31,352 — 31,352 — U.S. small cap 8,567 — 8,567 — International equity 36,773 — 36,773 — Governmental bonds 6,073 — 6,073 — Corporate bonds 2,998 — 2,998 — Investment funds — — — — Limited partnership 115 — — 115 Total investments $ 137,351 $ 4,034 $ 133,202 $ 115 Investments As of November 30, 2021 As of Quoted Prices in Active Markets for Identical Assets As of Significant Other Observable Inputs (Level 2) As of Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3,383 $ 3,383 $ — $ — Common/collective trusts: Fixed income 59,955 — 59,955 — U.S. large cap 39,318 — 39,318 — U.S. small cap 10,100 — 10,100 — International equity 39,930 — 39,930 — Governmental bonds 5,493 — 5,493 — Corporate bonds 3,528 — 3,528 — Investment funds — — — — Limited partnership 224 — — 224 Total investments $ 161,931 $ 3,383 $ 158,324 $ 224 |
Schedule of Expected Benefit Payments | The following table details expected benefit payments for the cash balance plan and other defined benefit plans: Fiscal Years Ending November 30, 2023 $ 42,913 2024 27,128 2025 24,466 2026 22,344 2027 21,037 Thereafter 87,286 Total $ 225,174 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following table presents the various components of lease costs: Fiscal Years Ended November 30, 2022 2021 2020 Operating lease cost $ 199,609 $ 203,508 $ 202,852 Short-term lease cost 20,451 15,767 9,917 Variable lease cost 45,997 40,215 41,060 Sublease income (3,226) (1,738) (1,668) Total operating lease cost $ 262,831 $ 257,752 $ 252,161 The weighted-average remaining lease term and discount rate as of November 30, 2022 and 2021 , respectively, were as follows: As of November 30, Operating lease term and discount rate 2022 2021 Weighted-average remaining lease term (years) 3.72 3.81 Weighted-average discount rate 5.24 % 5.82 % |
Operating Lease Liability Maturity Schedule | The following table presents a maturity analysis of expected undiscounted cash flows for operating leases on an annual basis for the next five fiscal years and thereafter as of November 30, 2022: Fiscal Years Ending November 30, 2023 $ 186,849 2024 152,785 2025 104,229 2026 55,500 2027 23,447 Thereafter 27,241 Total payments 550,051 Less: imputed interest* (50,577) Total present value of lease payments $ 499,474 |
Schedule of Amounts Recorded In Consolidated Balance Sheet Related to Operating Leases | The following amounts were recorded in the consolidated balance sheet as of November 30, 2022 and 2021: As of November 30, Operating leases Balance sheet location 2022 2021 Operating lease ROU assets Other assets, net $ 473,039 $ 489,171 Current operating lease liabilities Other accrued liabilities 158,801 153,329 Non-current operating lease liabilities Other long-term liabilities 340,673 354,471 |
Schedule of Supplemental Cash Flow Information Related to Operating Leases | The following table presents supplemental cash flow information related to the Company’s operating leases. Cash payments related to variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below: Fiscal Years Ended November 30, Cash flow information 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities $ 196,168 $ 200,096 $ 206,585 Non-cash ROU assets obtained in exchange for lease liabilities 191,055 156,406 147,292 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The sources of income before the provision for income taxes are as follows: Fiscal Years Ended November 30, 2022 2021 2020 United States $ 7,883 $ 66,274 $ (64,491) Foreign 597,120 489,422 332,386 Total income before income taxes $ 605,003 $ 555,696 $ 267,895 |
Schedule of Components of Income Tax Expense (Benefit) | Provision for income taxes consists of the following: Fiscal Years Ended November 30, 2022 2021 2020 Current tax provision (benefit): Federal $ 65,423 $ 54,809 $ 22,336 State 5,151 8,058 10 Foreign 129,613 112,981 100,588 $ 200,187 $ 175,848 $ 122,934 Deferred tax provision (benefit): Federal $ (19,596) $ (19,119) $ 49 State (12,303) (2,798) (336) Foreign 1,075 (3,812) (19,563) (30,824) (25,729) (19,850) Total income tax provision $ 169,363 $ 150,119 $ 103,084 |
Schedule of Deferred Tax Assets and Liabilities | The following presents the breakdown of net deferred tax liabilities after netting by taxing jurisdiction: As of November 30, 2022 2021 Deferred tax assets $ 48,541 $ 48,413 Deferred tax liabilities 105,458 109,471 Total net deferred tax liabilities $ 56,917 $ 61,058 Net deferred tax liabilities consist of the following: As of November 30, 2022 2021 Assets: Net operating losses $ 143,593 $ 68,360 Accruals and other reserves 41,119 48,469 Depreciation and amortization 13,319 12,625 U.S. interest limitation carry forward 4,026 984 Share-based compensation expense 7,505 4,464 Deferred revenue 4,335 4,629 Tax credits 8,415 2,506 Foreign tax credit 1,373 2,359 Operating lease liabilities 95,935 90,270 Intercompany loans payable 62,544 — Other 17,616 16,607 Gross deferred tax assets 399,780 251,273 Valuation allowance (103,169) (31,016) Total deferred tax assets $ 296,611 $ 220,257 Liabilities: Intangible assets $ 232,930 $ 160,802 Unremitted non-US earnings 31,223 32,199 Operating lease right-of-use assets 89,375 88,314 Total deferred tax liabilities 353,528 281,315 Net deferred tax liabilities $ 56,917 $ 61,058 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate is as follows: Fiscal Years Ended November 30, 2022 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal income tax benefit (1.4) % 0.6 % (0.2) % International rate difference (2.7) % (1.0) % 1.3 % Withholding taxes 1.1 % 0.4 % 0.8 % Uncertain tax benefits (0.3) % 0.3 % 0.9 % Changes in valuation allowance 1.3 % (1.6) % 0.5 % Impact of inclusion of foreign income (1) 9.2 % 2.8 % 3.3 % Hypothetical current tax expense recorded for separate return basis presentation — % — % 10.0 % Other (2) (0.2) % 4.5 % 0.9 % Effective income tax rate 28.0 % 27.0 % 38.5 % (1) Represents Subpart F income, Base Erosion and Anti-Abuse Tax (BEAT), and Global Intangible Low-Taxed Income (GILTI) (less Section 250 deduction), net of associated foreign tax credits. (2) Includes additional tax gain on the sale of CIS for the fiscal year ended November 30, 2021. |
Schedule of Unrecognized Tax Benefits Roll Forward | The aggregate changes in the balances of gross unrecognized tax benefits, excluding accrued interest and penalties, during fiscal years 2022, 2021, and 2020 were as follows: Balance as of November 30, 2019 $ 48,928 Additions based on tax positions related to the current year 5,081 Additions for tax positions of prior years and acquisition 4,108 Settlements (144) Lapse of statute of limitations (10,061) Changes due to translation of foreign currencies 1 Balance as of November 30, 2020 47,913 Additions based on tax positions related to the current year 3,602 Reductions for tax positions of prior years (1,638) Settlements (2,108) Lapse of statute of limitations (426) Changes due to translation of foreign currencies 104 Balance as of November 30, 2021 47,447 Additions based on tax positions related to the current year 42,749 Settlements (4,882) Lapse of statute of limitations (14,351) Balance as of November 30, 2022 $ 70,963 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Fiscal Years Ended November 30, 2022 2021 2020 Basic earnings per common share: Net income $ 435,049 $ 405,577 $ 164,811 Less: net income allocated to participating securities (1) (6,631) (5,785) — Net income attributable to common stockholders $ 428,418 $ 399,792 $ 164,811 Weighted average common shares - basic 51,353 51,355 51,602 Basic earnings per common share $ 8.34 $ 7.78 $ 3.19 Diluted earnings per common share: Net income $ 435,049 $ 405,577 $ 164,811 Less: net income allocated to participating securities (1) (6,583) (5,724) — Net income attributable to common stockholders $ 428,466 $ 399,853 $ 164,811 Weighted-average number of common shares - basic 51,353 51,355 51,602 Effect of dilutive securities: Stock options and restricted stock units 387 559 — Weighted-average number of common shares - diluted 51,740 51,914 51,602 Diluted earnings per common share $ 8.28 $ 7.70 $ 3.19 (1) Restricted stock awards granted to employees by the Company are considered participating securities. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Nov. 30, 2022 | |
Equity [Abstract] | |
Dividends Declared | During fiscal years 2022 and 2021, the Company has paid the following dividends per share approved by the Company’s board of directors: Announcement Date Record Date Per Share Dividend Amount Payment Date September 27, 2021 October 22, 2021 $0.25 November 2, 2021 January 18, 2022 January 28, 2022 $0.25 February 8, 2022 March 29, 2022 April 29, 2022 $0.25 May 10, 2022 June 27, 2022 July 29, 2022 $0.25 August 9, 2022 September 8, 2022 October 28, 2022 $0.275 November 8, 2022 |
BACKGROUND AND BASIS OF PRESE_2
BACKGROUND AND BASIS OF PRESENTATION (Details) | Dec. 01, 2020 | Nov. 30, 2022 market |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Primary industry verticals | 5 | |
Share ratio, received from distribution | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment Useful Life (Details) | 12 Months Ended |
Nov. 30, 2022 | |
Equipment and furniture | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 3 years |
Equipment and furniture | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 10 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 7 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 2 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 15 years |
Buildings, building improvements and leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 10 years |
Buildings, building improvements and leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 39 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets Useful Life (Details) | 12 Months Ended |
Nov. 30, 2022 | |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 5 years |
Non-compete Covenants | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 3 years |
Minimum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 10 years |
Minimum | Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 3 years |
Maximum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 15 years |
Maximum | Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Concentration Risk [Line Items] | |||
Operating lease ROU assets | $ 473,039 | $ 489,171 | |
Operating lease liabilities | $ 499,474 | ||
Revenue | Customer Concentration Risk | One Client | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.90% | 11.50% | |
Accounts Receivable | Customer Concentration Risk | One Client | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.40% | 15.30% |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - PK Consideration (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 27, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Business Combination, Acquisition Related Costs | $ 33,763 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,698,261 | $ 3,279 | $ 5,560 | |
PK | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross, Cash Consideration for Stock | $ 1,177,342 | |||
Payments to Acquire Businesses, Gross, Cash Consideration for Vested Equity Awards | 246,229 | |||
Payments to Acquire Businesses, Gross, Cash Consideration for Repayment of Debt, Including Accrued Interest | 148,492 | |||
Business Combination, Acquisition Related Costs | 22,842 | |||
Cash paid for acquisition | 1,594,905 | |||
Business Combination, Consideration Transferred, Other | 15,725 | |||
Business Combination, Consideration Transferred | 1,610,630 | |||
Cash Acquired from Acquisition | 37,310 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,573,320 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES (Details) - PK Narrative staff in Thousands | Dec. 27, 2021 staff |
PK | |
Business Acquisition [Line Items] | |
Number of staff members acquired | 5 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES (Details) - PK Purchase Price Allocation - USD ($) $ in Thousands | Dec. 27, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,904,402 | $ 1,813,502 | $ 1,836,050 | |
PK | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 30,798 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 85,367 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 11,158 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Right-of-use-Assets | 12,288 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 469,300 | |||
Goodwill | 1,119,068 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 26,449 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 1,754,428 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 78,092 | |||
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation | 12,288 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 51,418 | |||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 2,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 143,798 | |||
Business Combination, Consideration Transferred | $ 1,610,630 |
ACQUISITIONS AND DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES (Details) - PK Intangible Assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 27, 2021 | Nov. 30, 2022 | |
Technology | ||
Business Acquisition [Line Items] | ||
Intangible assets useful life | 5 years | |
Non-compete Covenants | ||
Business Acquisition [Line Items] | ||
Intangible assets useful life | 3 years | |
PK | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 469,300 | |
PK | Customer relationships | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 398,600 | |
Intangible assets useful life | 15 years | |
PK | Technology | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 63,500 | |
Intangible assets useful life | 5 years | |
PK | Trade names | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 5,000 | |
Intangible assets useful life | 3 years | |
PK | Non-compete Covenants | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,200 | |
Intangible assets useful life | 3 years |
ACQUISITIONS AND DIVESTITURES_5
ACQUISITIONS AND DIVESTITURES (Details) - PK Pro Forma - PK - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $ 6,357,434 | $ 6,023,726 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 431,816 | $ 392,837 |
ACQUISITIONS AND DIVESTITURES_6
ACQUISITIONS AND DIVESTITURES (Details) - SREV Consideration - USD ($) $ in Thousands | 12 Months Ended | ||||
Jul. 20, 2022 | Dec. 27, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,698,261 | $ 3,279 | $ 5,560 | ||
ServiceSource International, Inc | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 141,507 | ||||
Payments to Acquire Businesses, Gross, Cash Consideration for Stock | 150,392 | ||||
Payments to Acquire Businesses, Gross, Cash Consideration for Vested and Unvested Equity Awards | 6,704 | ||||
Payments to Acquire Businesses, Gross, Cash Consideration for Repayment of Debt, Including Accrued Interest | 10,063 | ||||
Business Combination, Consideration Transferred | 167,159 | ||||
Cash Acquired from Acquisition | $ 25,652 | ||||
PK | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,573,320 | ||||
Payments to Acquire Businesses, Gross, Cash Consideration for Stock | 1,177,342 | ||||
Payments to Acquire Businesses, Gross, Cash Consideration for Repayment of Debt, Including Accrued Interest | 148,492 | ||||
Business Combination, Consideration Transferred | 1,610,630 | ||||
Cash Acquired from Acquisition | $ 37,310 |
ACQUISITIONS AND DIVESTITURES_7
ACQUISITIONS AND DIVESTITURES (Details) - SREV Purchase Price Allocation - USD ($) $ in Thousands | Jul. 20, 2022 | Dec. 27, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,904,402 | $ 1,813,502 | $ 1,836,050 | ||
ServiceSource International, Inc | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 24,355 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 40,097 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 8,112 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Right-of-use-Assets | 29,487 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 40,200 | ||||
Goodwill | 45,502 | ||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 22,724 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 20,238 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 230,715 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 34,069 | ||||
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation | 29,487 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 63,556 | ||||
Business Combination, Consideration Transferred | $ 167,159 | ||||
PK | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 30,798 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 85,367 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 11,158 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Right-of-use-Assets | 12,288 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 469,300 | ||||
Goodwill | 1,119,068 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 26,449 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 1,754,428 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 78,092 | ||||
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation | 12,288 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 143,798 | ||||
Business Combination, Consideration Transferred | 1,610,630 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 51,418 |
ACQUISITIONS AND DIVESTITURES_8
ACQUISITIONS AND DIVESTITURES (Details) - SREV Intangible Assets - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 20, 2022 | Nov. 30, 2022 | |
Technology | ||
Business Acquisition [Line Items] | ||
Intangible assets useful life | 5 years | |
ServiceSource International, Inc | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 40,200 | |
ServiceSource International, Inc | Customer relationships | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 31,370 | |
Intangible assets useful life | 15 years | |
ServiceSource International, Inc | Technology | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 5,640 | |
Intangible assets useful life | 5 years | |
ServiceSource International, Inc | Trade names | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 3,190 | |
Intangible assets useful life | 3 years |
ACQUISITIONS AND DIVESTITURES_9
ACQUISITIONS AND DIVESTITURES (Details) - Results of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Business Acquisition [Line Items] | |||
Revenue | $ 6,324,473 | $ 5,587,015 | $ 4,719,534 |
Total | 605,003 | $ 555,696 | $ 267,895 |
Business Combination, Acquisition Related Costs | 33,763 | ||
PK & ServiceSource International, Inc | |||
Business Acquisition [Line Items] | |||
Revenue | 512,942 | ||
Total | $ (8,472) |
ACQUISITIONS AND DIVESTITURE_10
ACQUISITIONS AND DIVESTITURES (Details) - CIS - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Proceeds from divestitures, net of cash sold | $ 0 | $ 73,708 | $ 0 | |
Held for sale | CIS | ||||
Business Acquisition [Line Items] | ||||
Proceeds from divestitures, net of cash sold | $ 73,708 | |||
Pre-tax gain | $ 13,197 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 01, 2020 | Nov. 30, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved for issuance (in shares) | 523,000 | 4,000,000 | ||||
Weighted-average grant-date fair values (in dollars per share) | $ 132.42 | |||||
Options outstanding (in shares) | 684,000 | 395,000 | 441,000 | 122,000 | 122,000 | |
Weighted average life | 5 years 9 months 29 days | |||||
Aggregate pre-tax intrinsic value | $ 27,552 | |||||
Options vested and exercisable (in shares) | 300,000 | |||||
Weighted average life | 5 years 6 months 18 days | |||||
Weighted-average exercise price (in dollars per share) | $ 50.24 | |||||
Aggregate pre-tax intrinsic value | $ 21,621 | |||||
Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock authorized for issuance (in shares) | 1,000,000 | |||||
Term period | 10 years | |||||
Vesting period | 5 years | |||||
Restricted Stock Awards, Restricted Stock Units and Performance-Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued (in shares) | 827,000 | |||||
Unamortized share-based compensation expense | $ 141,836 | |||||
Estimated weighted-average amortization period | 3 years 2 months 4 days | |||||
Restricted Stock Awards, Restricted Stock Units and Performance-Based Restricted Stock Units | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Restricted Stock Awards, Restricted Stock Units and Performance-Based Restricted Stock Units | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 5 years | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock issued (in shares) | 684,000 | |||||
Unamortized share-based compensation expense | $ 1,110 | |||||
Estimated weighted-average amortization period | 2 years 2 months 15 days |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Total share-based compensation | $ 47,516 | $ 36,762 | $ 15,914 |
Tax benefit recorded in the provision for income taxes | (12,069) | (9,234) | (3,979) |
Effect on net income | $ 35,447 | $ 27,528 | $ 11,935 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Options Summary (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Number of former parent shares (in thousands) | |||
Beginning balance (in shares) | 441 | 122 | 122 |
Options granted (in shares) | 0 | 26 | 0 |
Options issued in conversion of certain vested PK stock options (in shares) | 119 | ||
Options exercised (in shares) | (165) | (269) | |
Ending balance (in shares) | 395 | 441 | 122 |
Weighted- average exercise price per former parent share | |||
Beginning balance (in dollars per share) | $ 51.75 | $ 92.68 | $ 92.68 |
Options granted (in dollars per share) | 0 | 119.72 | 0 |
Options issued in conversion of certain vested PK stock options (in dollars per share) | 45.81 | ||
Options exercised (in dollars per share) | 46.38 | 43.34 | |
Ending balance (in dollars per share) | $ 52.60 | $ 51.75 | $ 92.68 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Awards Summary (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Restricted Stock Awards, Restricted Stock Units and Performance-Based Restricted Stock Units | |||
Number of former parent shares (in thousands) | |||
Non-vested, beginning balance (in shares) | 980 | 458 | 591 |
Awards and units vested (in shares) | (283) | (504) | (110) |
Awards and units cancelled/forfeited (in shares) | (106) | (64) | (31) |
Non-vested, ending balance (in shares) | 1,395 | 980 | 458 |
Weighted-average, grant-date fair value per former parent share | |||
Non-vested, beginning balance (in dollars per share) | $ 109.92 | $ 101.57 | $ 102.12 |
Awards and units vested (in dollars per share) | 91.62 | 61.95 | 102.77 |
Awards and units cancelled/forfeited (in dollars per share) | 118.79 | 84.20 | 102.04 |
Non-vested, ending balance (in dollars per share) | $ 124.69 | $ 109.92 | $ 101.57 |
Restricted Stock | |||
Number of former parent shares (in thousands) | |||
Awards and units granted (in shares) | 510 | 495 | 7 |
Weighted-average, grant-date fair value per former parent share | |||
Awards and units granted (in dollars per share) | $ 139.31 | $ 134.65 | $ 78.47 |
Restricted Stock Units (RSUs) | |||
Number of former parent shares (in thousands) | |||
Awards and units granted (in shares) | 294 | 226 | 1 |
Weighted-average, grant-date fair value per former parent share | |||
Awards and units granted (in dollars per share) | $ 130.98 | $ 154.53 | $ 83.88 |
BALANCE SHEET COMPONENTS - Cash
BALANCE SHEET COMPONENTS - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 145,382 | $ 182,038 | ||
Restricted cash included in other current assets | 12,081 | 972 | ||
Cash, cash equivalents and restricted cash | $ 157,463 | $ 183,010 | $ 156,351 | $ 83,514 |
BALANCE SHEET COMPONENTS - Acco
BALANCE SHEET COMPONENTS - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Less: Allowance for doubtful accounts | $ (4,797) | $ (5,421) | $ (8,963) | $ (6,055) |
Accounts receivable, net | 1,390,474 | 1,207,953 | ||
Billed accounts receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 782,049 | 714,032 | ||
Unbilled accounts receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | $ 613,222 | $ 499,342 |
BALANCE SHEET COMPONENTS - Allo
BALANCE SHEET COMPONENTS - Allowance for Doubtful Trade Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 5,421 | $ 8,963 | $ 6,055 |
Net additions (reductions) | 3,329 | (202) | 8,140 |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (3,953) | (3,340) | (5,232) |
Ending Balance | $ 4,797 | $ 5,421 | $ 8,963 |
BALANCE SHEET COMPONENTS - Prop
BALANCE SHEET COMPONENTS - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 1,035,905 | $ 981,296 |
Less: Accumulated depreciation | (632,076) | (574,152) |
Property and equipment, net | 403,829 | 407,144 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 123,184 | 101,333 |
Philippines | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 76,361 | 87,548 |
India | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 42,698 | 46,167 |
Others | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 161,586 | 172,096 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 27,336 | 27,677 |
Equipment, computers and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 542,209 | 488,270 |
Equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 89,167 | 90,442 |
Buildings, building improvements and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 362,218 | 364,166 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 14,975 | $ 10,741 |
BALANCE SHEET COMPONENTS - Accu
BALANCE SHEET COMPONENTS - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 2,620,255 | $ 2,302,085 |
Other comprehensive income (loss) before reclassification | (272,176) | (44,466) |
Reclassification of (gains) losses from other comprehensive income (loss) | 26,953 | 22,246 |
Ending Balance | 2,695,904 | 2,620,255 |
Accumulated other comprehensive income (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (70,526) | (3,814) |
Ending Balance | (315,749) | (70,526) |
Unrecognized gains (losses) on defined benefit plan, net of taxes | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (22,745) | (38,584) |
Other comprehensive income (loss) before reclassification | 14,274 | 15,839 |
Reclassification of (gains) losses from other comprehensive income (loss) | 0 | 0 |
Ending Balance | (8,471) | (22,745) |
Unrealized gains (losses) on cash flow hedges, net of taxes | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (1,403) | 29,239 |
Other comprehensive income (loss) before reclassification | (45,464) | (8,396) |
Reclassification of (gains) losses from other comprehensive income (loss) | 26,953 | 22,246 |
Ending Balance | (19,914) | (1,403) |
Foreign currency translation adjustment and other, net of taxes | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (46,378) | 5,531 |
Other comprehensive income (loss) before reclassification | (240,986) | (51,909) |
Reclassification of (gains) losses from other comprehensive income (loss) | 0 | 0 |
Ending Balance | $ (287,364) | $ (46,378) |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Goodwill [Roll Forward] | ||
Balance, beginning of year | $ 1,813,502 | $ 1,836,050 |
Acquisitions | 1,165,072 | 3,502 |
Divestitures | 0 | (14,690) |
Foreign currency translation | (74,172) | (11,360) |
Balance, end of year | $ 2,904,402 | $ 1,813,502 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | $ 1,828,090,000 | $ 1,365,520,000 |
Accumulated amortization | (842,518,000) | (709,992,000) |
Net amounts | 985,572,000 | 655,528,000 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 1,731,610,000 | 1,347,961,000 |
Accumulated amortization | (811,727,000) | (694,701,000) |
Net amounts | 919,883,000 | 653,260,000 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 79,728,000 | 10,835,000 |
Accumulated amortization | (21,820,000) | (8,900,000) |
Net amounts | 57,908,000 | 1,935,000 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 14,552,000 | 6,724,000 |
Accumulated amortization | (8,291,000) | (6,391,000) |
Net amounts | 6,261,000 | 333,000 |
Noncompete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 2,200,000 | 0 |
Accumulated amortization | (680,000) | 0 |
Net amounts | $ 1,520,000 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization | $ 162,673 | $ 136,939 | $ 147,283 |
Remaining amortization period | 12 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Future Amortization Expense (Details) - USD ($) | Nov. 30, 2022 | Nov. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 156,643,000 | |
2024 | 145,746,000 | |
2025 | 133,700,000 | |
2026 | 117,237,000 | |
2027 | 87,022,000 | |
Thereafter | 345,224,000 | |
Net amounts | $ 985,572,000 | $ 655,528,000 |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value of Derivative Instruments in Balance Sheets (Details) - Foreign Exchange Forward - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Not Designated as Hedging Instrument | ||
Derivative instruments not designated as hedging instruments: | ||
Notional value | $ 1,465,853 | $ 1,415,447 |
Derivative instruments designated as cash flow hedges: | ||
Notional value | 1,465,853 | 1,415,447 |
Not Designated as Hedging Instrument | Other current assets | ||
Derivative instruments not designated as hedging instruments: | ||
Forward foreign currency exchange contracts | 22,839 | 10,058 |
Derivative instruments designated as cash flow hedges: | ||
Forward foreign currency exchange contracts | 22,839 | 10,058 |
Not Designated as Hedging Instrument | Other accrued liabilities | ||
Derivative instruments not designated as hedging instruments: | ||
Forward foreign currency exchange contracts | 14,934 | 12,542 |
Derivative instruments designated as cash flow hedges: | ||
Forward foreign currency exchange contracts | 14,934 | 12,542 |
Designated as Hedging Instrument | ||
Derivative instruments not designated as hedging instruments: | ||
Notional value | 963,844 | 918,097 |
Derivative instruments designated as cash flow hedges: | ||
Notional value | 963,844 | 918,097 |
Designated as Hedging Instrument | Other current assets and other assets | ||
Derivative instruments not designated as hedging instruments: | ||
Forward foreign currency exchange contracts | 6,389 | 7,851 |
Derivative instruments designated as cash flow hedges: | ||
Forward foreign currency exchange contracts | 6,389 | 7,851 |
Designated as Hedging Instrument | Other accrued liabilities and other long-term liabilities | ||
Derivative instruments not designated as hedging instruments: | ||
Forward foreign currency exchange contracts | 32,935 | 9,736 |
Derivative instruments designated as cash flow hedges: | ||
Forward foreign currency exchange contracts | $ 32,935 | $ 9,736 |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Derivative Instruments on AOCI and Statements of Operations (Details) - Foreign Exchange Forward - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
(Losses) gains recognized in OCI | $ (60,891) | $ (11,105) | $ 45,986 |
Gains reclassified from AOCI into income | (36,229) | 29,744 | 30,373 |
Cost of revenue for services | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gains reclassified from AOCI into income | (28,108) | 21,138 | 21,532 |
Selling, general and administrative expenses | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gains reclassified from AOCI into income | (8,121) | 8,606 | 8,841 |
Other Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
(Loss) gain recognized from foreign exchange forward contracts, net | $ (57,983) | $ (2,880) | $ 32,150 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) $ in Thousands | 12 Months Ended |
Nov. 30, 2022 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Existing net losses expected to be reclassified | $ 26,286 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Assets: | ||
Cash equivalents | $ 89,932 | $ 77,332 |
Foreign government bond | 1,529 | 1,446 |
Foreign Exchange Forward | ||
Assets: | ||
Forward foreign currency exchange contracts | 29,228 | 17,909 |
Liabilities: | ||
Forward foreign currency exchange contracts | 47,869 | 22,278 |
Level 1 | ||
Assets: | ||
Cash equivalents | 89,932 | 77,332 |
Foreign government bond | 1,529 | 1,446 |
Level 1 | Foreign Exchange Forward | ||
Assets: | ||
Forward foreign currency exchange contracts | 0 | 0 |
Liabilities: | ||
Forward foreign currency exchange contracts | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Foreign government bond | 0 | 0 |
Level 2 | Foreign Exchange Forward | ||
Assets: | ||
Forward foreign currency exchange contracts | 29,228 | 17,909 |
Liabilities: | ||
Forward foreign currency exchange contracts | 47,869 | 22,278 |
Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Foreign government bond | 0 | 0 |
Level 3 | Foreign Exchange Forward | ||
Assets: | ||
Forward foreign currency exchange contracts | 0 | 0 |
Liabilities: | ||
Forward foreign currency exchange contracts | $ 0 | $ 0 |
BORROWINGS - Schedule of Debt (
BORROWINGS - Schedule of Debt (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 0 | $ 0 |
Total | 2,231,500 | 805,000 |
Less: unamortized debt discount and issuance costs | (7,212) | (2,983) |
Long-term debt, net | 2,224,288 | 802,017 |
Securitization Facility | ||
Debt Instrument [Line Items] | ||
Credit Facility - Term Loan component | 356,500 | 105,000 |
Senior Secured Credit Facility | Term Loan | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 0 | 0 |
Credit Facility - Term Loan component | 1,875,000 | 0 |
Senior Secured Credit Facility | Prior Term Loan | ||
Debt Instrument [Line Items] | ||
Credit Facility - Term Loan component | $ 0 | $ 700,000 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) | 6 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2022 USD ($) | Jul. 06, 2022 USD ($) | Dec. 27, 2021 USD ($) | Nov. 30, 2021 USD ($) | Nov. 30, 2022 USD ($) | Nov. 30, 2021 USD ($) | Nov. 30, 2020 USD ($) | Oct. 30, 2020 USD ($) | Oct. 16, 2020 USD ($) | |
Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal payments | $ 225,000,000 | $ 0 | $ 0 | ||||||
Prior Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal payments | 700,000,000 | 200,000,000 | 0 | ||||||
Securitization Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, maximum borrowing capacity | $ 500,000,000 | ||||||||
Securitization Facility | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.80% | ||||||||
Securitization Facility | Commercial Paper Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.70% | ||||||||
Securitization Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.10% | ||||||||
Prior Securitization Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, maximum borrowing capacity | $ 350,000,000 | ||||||||
Amount outstanding | $ 250,000,000 | 250,000,000 | |||||||
Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Increase in credit facility | $ 450,000,000 | ||||||||
Pro forma first lien leverage ratio | 3 | ||||||||
Consolidated leverage ratio | 3.75 | ||||||||
Consolidated interest coverage ratio | 3 | ||||||||
Senior Secured Credit Facility | Revolver | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | $ 600,000,000 | |||||||
Amount outstanding | 0 | 0 | 0 | ||||||
Senior Secured Credit Facility | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, maximum borrowing capacity | $ 2,100,000,000 | ||||||||
Principal payments | 225,000,000 | ||||||||
Voluntary prepayments | $ 172,500,000 | ||||||||
Quarterly installment payment | $ 26,250,000 | ||||||||
Senior Secured Credit Facility | Prior Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, maximum borrowing capacity | $ 900,000,000 | ||||||||
Amount outstanding | $ 900,000,000 | ||||||||
Quarterly installment amounts | $ 11,250,000 | ||||||||
Principal payments | 200,000,000 | ||||||||
Voluntary prepayments | $ 166,250,000 | ||||||||
Senior Secured Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percent of unused portion | 0.225% | ||||||||
Senior Secured Credit Facility | Minimum | SOFR Rate Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.25% | ||||||||
Senior Secured Credit Facility | Minimum | Not SOFR Rate Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.25% | ||||||||
Senior Secured Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee percent of unused portion | 0.30% | ||||||||
Senior Secured Credit Facility | Maximum | SOFR Rate Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2% | ||||||||
Senior Secured Credit Facility | Maximum | Not SOFR Rate Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1% | ||||||||
Senior Secured Credit Facility | Federal Funds Rate | Not SOFR Rate Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.50% | ||||||||
Senior Secured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | SOFR Rate Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate floor | 0% | ||||||||
Senior Secured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Not SOFR Rate Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1% | ||||||||
Senior Secured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | SOFR Rate Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.10% | ||||||||
Senior Secured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | SOFR Rate Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 0.25% |
BORROWINGS - Long Term Debt Mat
BORROWINGS - Long Term Debt Maturity (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 0 | |
2024 | 394,000 | |
2025 | 105,000 | |
2026 | 105,000 | |
2026 | 1,627,500 | |
Total | $ 2,231,500 | $ 805,000 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 6,324,473 | $ 5,587,015 | $ 4,719,534 |
Philippines | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,476,706 | 1,335,326 | 1,205,764 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,388,514 | 884,777 | 812,903 |
India | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 811,492 | 723,495 | 615,291 |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 326,162 | 338,255 | 215,248 |
Germany | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 232,282 | 233,001 | 173,513 |
Great Britain | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 211,219 | 307,109 | 235,006 |
Others | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,878,098 | 1,765,052 | 1,461,809 |
Technology and consumer electronics | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,980,666 | 1,759,203 | 1,422,817 |
Retail, travel and ecommerce | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,184,086 | 985,550 | 796,324 |
Communications and media | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,076,289 | 1,005,283 | 954,234 |
Banking, financial services and insurance | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 967,810 | 862,033 | 712,469 |
Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 608,169 | 489,855 | 392,686 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 507,453 | $ 485,091 | $ 441,004 |
TRANSACTIONS WITH FORMER PARE_3
TRANSACTIONS WITH FORMER PARENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Related Party Transaction [Line Items] | |||
Revenue | $ 6,324,473 | $ 5,587,015 | $ 4,719,534 |
Total share-based compensation | $ 47,516 | $ 36,762 | 15,914 |
Former Parent | |||
Related Party Transaction [Line Items] | |||
Revenue | 20,855 | ||
Related Party Transaction, Purchases from Related Party | 0 | ||
Interest Expense, Debt | 50,615 | ||
Interest Income, Debt | 2,065 | ||
Corporate Allocations | 1,574 | ||
Total share-based compensation | $ 15,914 |
PENSION AND EMPLOYEE BENEFITS_2
PENSION AND EMPLOYEE BENEFITS PLANS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributed amount | $ 83,792 | $ 72,561 | $ 64,286 |
Net benefit costs | 9,437 | $ 13,427 | $ 13,602 |
Employer contributions | $ 1,877 | ||
Defined Benefit Plan, Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment plan asset category percentage | 62% | 62% | |
Targeted allocation percentage | 60% | 60% | |
Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment plan asset category percentage | 38% | 38% | |
Targeted allocation percentage | 40% | 40% | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation percentage | 28% | 25% |
PENSION AND EMPLOYEE BENEFITS_3
PENSION AND EMPLOYEE BENEFITS PLANS - Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Retirement Benefits [Abstract] | |||
Service costs | $ 7,031 | $ 8,148 | $ 7,498 |
Interest costs | $ 6,828 | $ 6,284 | $ 8,385 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on plan assets | $ (6,562) | $ (6,032) | $ (6,403) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization and deferrals, net | $ 1,540 | $ 4,542 | $ 2,851 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Settlements | $ 600 | $ 485 | $ 1,271 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Total pension costs | $ 9,437 | $ 13,427 | $ 13,602 |
PENSION AND EMPLOYEE BENEFITS_4
PENSION AND EMPLOYEE BENEFITS PLANS - Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Change in Benefit Obligation: | |||
Service costs | $ 7,031 | $ 8,148 | $ 7,498 |
Interest costs | 6,828 | 6,284 | 8,385 |
Settlements | 600 | 485 | 1,271 |
Change in Plan Assets: | |||
Beginning balance | 161,931 | ||
Ending balance | 137,351 | 161,931 | |
Pension Plan | |||
Change in Benefit Obligation: | |||
Beginning balance | 266,620 | 281,957 | |
Service costs | 7,031 | 8,148 | |
Interest costs | 6,828 | 6,284 | |
Actuarial gains (1) | (43,290) | (6,679) | |
Benefits paid | (16,899) | (14,844) | |
Settlements | (4,676) | (5,893) | |
Foreign currency adjustments | (6,448) | (2,353) | |
Ending balance | 209,166 | 266,620 | 281,957 |
Change in Plan Assets: | |||
Beginning balance | 161,931 | 147,558 | |
Actual return on assets | (20,648) | 13,534 | |
Settlements | (5,195) | (5,893) | |
Employer contributions | 12,776 | 14,563 | |
Benefits paid | (10,754) | (7,711) | |
Foreign currency adjustments | (759) | (120) | |
Ending balance | 137,351 | 161,931 | $ 147,558 |
Funded Status of Plans: | |||
Unfunded status | $ 71,815 | $ 104,689 |
PENSION AND EMPLOYEE BENEFITS_5
PENSION AND EMPLOYEE BENEFITS PLANS - Defined Benefit Plan Liability (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 200,198 | $ 256,257 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liability | 14,913 | 15,884 |
Non-current liability | 56,902 | 88,805 |
Total | $ 71,815 | $ 104,689 |
PENSION AND EMPLOYEE BENEFITS_6
PENSION AND EMPLOYEE BENEFITS PLANS - Weighted-Average Rates (Details) - Pension Plan | 12 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Interest crediting rate for cash balance plan | 4% | 4% |
Interest crediting rate for cash balance plan | 4% | 4% |
Minimum | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 4% | 1.20% |
Expected rate of future compensation growth | 1.80% | 1.80% |
Discount rate | 1.20% | 0.30% |
Expected return on plan assets | 1% | 1% |
Expected rate of future compensation growth | 1.80% | 1.80% |
Maximum | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 7.50% | 5.30% |
Expected rate of future compensation growth | 8.80% | 8.50% |
Discount rate | 5.30% | 4.80% |
Expected return on plan assets | 7% | 7.50% |
Expected rate of future compensation growth | 10% | 8.50% |
PENSION AND EMPLOYEE BENEFITS_7
PENSION AND EMPLOYEE BENEFITS PLANS - Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | $ 137,351 | $ 161,931 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 4,034 | 3,383 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 133,202 | 158,324 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 115 | 224 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 4,034 | 3,383 |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 4,034 | 3,383 |
Cash and cash equivalents | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 47,439 | 59,955 |
Fixed income | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Fixed income | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 47,439 | 59,955 |
Fixed income | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
U.S. large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 31,352 | 39,318 |
U.S. large cap | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
U.S. large cap | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 31,352 | 39,318 |
U.S. large cap | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
U.S. small cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 8,567 | 10,100 |
U.S. small cap | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
U.S. small cap | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 8,567 | 10,100 |
U.S. small cap | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
International equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 36,773 | 39,930 |
International equity | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
International equity | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 36,773 | 39,930 |
International equity | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Governmental bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 6,073 | 5,493 |
Governmental bonds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Governmental bonds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 6,073 | 5,493 |
Governmental bonds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 2,998 | 3,528 |
Corporate bonds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Corporate bonds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 2,998 | 3,528 |
Corporate bonds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Investment funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Investment funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Investment funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Limited partnership | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 115 | 224 |
Limited partnership | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Limited partnership | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | 0 | 0 |
Limited partnership | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total investments | $ 115 | $ 224 |
PENSION AND EMPLOYEE BENEFITS_8
PENSION AND EMPLOYEE BENEFITS PLANS - Expected Benefit Payments (Details) $ in Thousands | Nov. 30, 2022 USD ($) |
Retirement Benefits [Abstract] | |
2023 | $ 42,913 |
2024 | 27,128 |
2025 | 24,466 |
2026 | 22,344 |
2027 | 21,037 |
Thereafter | 87,286 |
Total | $ 225,174 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 199,609 | $ 203,508 | $ 202,852 |
Short-term lease cost | 20,451 | 15,767 | 9,917 |
Variable lease cost | 45,997 | 40,215 | 41,060 |
Sublease income | (3,226) | (1,738) | (1,668) |
Total operating lease cost | $ 262,831 | $ 257,752 | $ 252,161 |
LEASES - Operating Lease Liabil
LEASES - Operating Lease Liability Maturity (Details) $ in Thousands | Nov. 30, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 186,849 |
2024 | 152,785 |
2025 | 104,229 |
2026 | 55,500 |
2027 | 23,447 |
Thereafter | 27,241 |
Total payments | 550,051 |
Less: imputed interest | (50,577) |
Total present value of lease payments | $ 499,474 |
LEASES - Operating Lease ROU As
LEASES - Operating Lease ROU Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 | Dec. 01, 2019 |
Leases [Abstract] | |||
Operating lease ROU assets | $ 473,039 | $ 489,171 | |
Current operating lease liabilities | 158,801 | 153,329 | |
Non-current operating lease liabilities | $ 340,673 | $ 354,471 | |
Operating lease, right-of-use asset, statement of financial position | Other assets | Other assets | Other assets |
Operating lease, liability, current, statement of financial position | Other accrued liabilities | Other accrued liabilities | Other accrued liabilities |
Operating Lease, liability, noncurrent, statement of financial position | Other long-term liabilities | Other long-term liabilities | Other long-term liabilities |
LEASES - Operating Lease Supple
LEASES - Operating Lease Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 196,168 | $ 200,096 | $ 206,585 |
Non-cash ROU assets obtained in exchange for lease liabilities | $ 191,055 | $ 156,406 | $ 147,292 |
LEASES - Operating Lease Weight
LEASES - Operating Lease Weighted Average Remaining Lease Term and Discount Rate (Details) | Nov. 30, 2022 | Nov. 30, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 3 years 8 months 19 days | 3 years 9 months 21 days |
Weighted-average discount rate | 5.24% | 5.82% |
INCOME TAXES - Income Before In
INCOME TAXES - Income Before Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 7,883 | $ 66,274 | $ (64,491) |
Foreign | 597,120 | 489,422 | 332,386 |
Total | $ 605,003 | $ 555,696 | $ 267,895 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Current tax provision (benefit): | |||
Federal | $ 65,423 | $ 54,809 | $ 22,336 |
State | 5,151 | 8,058 | 10 |
Foreign | 129,613 | 112,981 | 100,588 |
Current tax provision (benefit) | 200,187 | 175,848 | 122,934 |
Deferred tax provision (benefit): | |||
Federal | (19,596) | (19,119) | 49 |
State | (12,303) | (2,798) | (336) |
Foreign | 1,075 | (3,812) | (19,563) |
Deferred tax provision (benefit) | (30,824) | (25,729) | (19,850) |
Total income tax provision | $ 169,363 | $ 150,119 | $ 103,084 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2019 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Adjustment increase for current tax expense | $ 26,823 | |||
Current tax provision (benefit) | $ 200,187 | $ 175,848 | 122,934 | |
Deferred income taxes | (30,824) | (25,729) | (19,850) | |
Undistributed earnings of non-U.S. subsidiaries | 1,715,750 | |||
Credit carry forwards | 10,153 | |||
Estimated tax benefits from tax holidays | 10,315 | 9,160 | 12,850 | |
Unrecognized tax benefits | 70,963 | 47,447 | 47,913 | $ 48,928 |
Unrecognized tax benefits that would affect income tax expense if recognized | 40,793 | 48,438 | ||
Income taxes payable related to accrued interest and penalties | 7,538 | 8,861 | ||
Other Noncurrent Liabilities | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Unrecognized tax benefits | 78,501 | $ 56,308 | ||
Hypothetical Tax Impact | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Current tax provision (benefit) | 17,203 | |||
Deferred income taxes | $ 9,600 | |||
Minimum | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Unrecognized tax benefits, possible decrease amount | 37,192 | |||
Maximum | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Unrecognized tax benefits, possible decrease amount | 39,991 | |||
Domestic Tax Authority | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Operating loss carry forwards | 344,847 | |||
State and Local Jurisdiction | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Operating loss carry forwards | 52,815 | |||
Foreign Tax Authority | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Operating loss carry forwards | $ 118,199 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 48,541 | $ 48,413 |
Deferred tax liabilities | 105,458 | 109,471 |
Total net deferred tax liabilities | $ 56,917 | $ 61,058 |
INCOME TAXES - Deferred Tax A_2
INCOME TAXES - Deferred Tax Assets, Net (Details) - USD ($) $ in Thousands | Nov. 30, 2022 | Nov. 30, 2021 |
Assets: | ||
Net operating losses | $ 143,593 | $ 68,360 |
Accruals and other reserves | 41,119 | 48,469 |
Depreciation and amortization | 13,319 | 12,625 |
U.S. interest limitation carry forward | 4,026 | 984 |
Share-based compensation expense | 7,505 | 4,464 |
Deferred revenue | 4,335 | 4,629 |
Tax credits | 8,415 | 2,506 |
Foreign tax credit | 1,373 | 2,359 |
Operating lease liabilities | 95,935 | 90,270 |
Intercompany loans payable | 62,544 | 0 |
Other | 17,616 | 16,607 |
Gross deferred tax assets | 399,780 | 251,273 |
Valuation allowance | (103,169) | (31,016) |
Total deferred tax assets | 296,611 | 220,257 |
Liabilities: | ||
Intangible assets | 232,930 | 160,802 |
Unremitted non-US earnings | 31,223 | 32,199 |
Operating lease right-of-use assets | 89,375 | 88,314 |
Total deferred tax liabilities | 353,528 | 281,315 |
Total net deferred tax liabilities | $ 56,917 | $ 61,058 |
INCOME TAXES - Income Tax Rate
INCOME TAXES - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21% | 21% | 21% |
State taxes, net of federal income tax benefit | (1.40%) | 0.60% | (0.20%) |
International rate difference | (2.70%) | (1.00%) | 1.30% |
Withholding taxes | 1.10% | 0.40% | 0.80% |
Uncertain tax benefits | (0.30%) | 0.30% | 0.90% |
Changes in valuation allowance | 1.30% | (1.60%) | 0.50% |
Impact of inclusion of foreign income (1) | 9.20% | 2.80% | 3.30% |
Hypothetical current tax expense recorded for separate return basis presentation | 0% | 0% | 10% |
Other | (0.20%) | 4.50% | 0.90% |
Effective income tax rate | 28% | 27% | 38.50% |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 47,447 | $ 47,913 | $ 48,928 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 42,749 | 3,602 | 5,081 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 4,108 | ||
Reductions for tax positions of prior years | (1,638) | ||
Settlements | (4,882) | (2,108) | (144) |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (14,351) | (426) | (10,061) |
Changes due to translation of foreign currencies | 104 | 1 | |
Ending balance | $ 70,963 | $ 47,447 | $ 47,913 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | Nov. 30, 2022 | Nov. 30, 2021 | Dec. 01, 2020 | Nov. 30, 2020 |
Earnings Per Share [Abstract] | ||||
Common stock, shares issued (in shares) | 52,367,000 | 51,927,000 | 51,600,000 | 0 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Basic earnings per common share: | |||
Net income before non-controlling interest | $ 435,049 | $ 405,577 | $ 164,811 |
Less: net income allocated to participating securities | (6,631) | (5,785) | 0 |
Net income attributable to common stockholders | $ 428,418 | $ 399,792 | $ 164,811 |
Weighted-average number of common shares - basic (in shares) | 51,353 | 51,355 | 51,602 |
Basic earnings per common share (in dollars per share) | $ 8.34 | $ 7.78 | $ 3.19 |
Diluted earnings per common share: | |||
Net income before non-controlling interest | $ 435,049 | $ 405,577 | $ 164,811 |
Less: net income allocated to participating securities | (6,583) | (5,724) | 0 |
Net income attributable to common stockholders | $ 428,466 | $ 399,853 | $ 164,811 |
Weighted-average number of common shares - basic (in shares) | 51,353 | 51,355 | 51,602 |
Effect of dilutive securities: | |||
Stock options and restricted stock units (in shares) | 387 | 559 | 0 |
Weighted-average number of common shares - diluted (in shares) | 51,740 | 51,914 | 51,602 |
Diluted earnings per common share (in dollars per share) | $ 8.28 | $ 7.70 | $ 3.19 |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Jan. 19, 2023 | Sep. 08, 2022 | Jun. 27, 2022 | Mar. 29, 2022 | Jan. 18, 2022 | Sep. 27, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | Sep. 30, 2021 | |
Equity [Abstract] | |||||||||
Authorized repurchase amount | $ 500,000 | ||||||||
Shares repurchased | 842,000 | 138,000 | |||||||
Aggregate purchase price | $ 120,819 | $ 25,100 | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 354,085 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.275 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | ||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Declared quarterly dividend (in dollars per share) | $ 0.275 |
Uncategorized Items - cnxc-2022
Label | Element | Value |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 45.84 |
Restricted Stock Awards, Restricted Stock Units and Performance-Based Restricted Stock Units [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue | $ 51.53 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber | 827,000 |