10-Q 1 ctsh-20220331.htm 10-Q ctsh-20220331
false2022Q10001058290--12-3100010582902022-01-012022-03-3100010582902022-04-29xbrli:shares00010582902022-03-31iso4217:USD00010582902021-12-31iso4217:USDxbrli:shares00010582902021-01-012021-03-310001058290us-gaap:CommonStockMember2021-12-310001058290us-gaap:AdditionalPaidInCapitalMember2021-12-310001058290us-gaap:RetainedEarningsMember2021-12-310001058290us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001058290us-gaap:RetainedEarningsMember2022-01-012022-03-310001058290us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001058290us-gaap:CommonStockMember2022-01-012022-03-310001058290us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001058290us-gaap:CommonStockMember2022-03-310001058290us-gaap:AdditionalPaidInCapitalMember2022-03-310001058290us-gaap:RetainedEarningsMember2022-03-310001058290us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001058290us-gaap:CommonStockMember2020-12-310001058290us-gaap:AdditionalPaidInCapitalMember2020-12-310001058290us-gaap:RetainedEarningsMember2020-12-310001058290us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100010582902020-12-310001058290us-gaap:RetainedEarningsMember2021-01-012021-03-310001058290us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001058290us-gaap:CommonStockMember2021-01-012021-03-310001058290us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001058290us-gaap:CommonStockMember2021-03-310001058290us-gaap:AdditionalPaidInCapitalMember2021-03-310001058290us-gaap:RetainedEarningsMember2021-03-310001058290us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100010582902021-03-310001058290srt:NorthAmericaMemberctsh:FinancialServicesMember2022-01-012022-03-310001058290srt:NorthAmericaMemberctsh:HealthcareSegmentMember2022-01-012022-03-310001058290srt:NorthAmericaMemberctsh:ProductsandResourcesMember2022-01-012022-03-310001058290srt:NorthAmericaMemberctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290srt:NorthAmericaMember2022-01-012022-03-310001058290country:GBctsh:FinancialServicesMember2022-01-012022-03-310001058290country:GBctsh:HealthcareSegmentMember2022-01-012022-03-310001058290ctsh:ProductsandResourcesMembercountry:GB2022-01-012022-03-310001058290country:GBctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290country:GB2022-01-012022-03-310001058290ctsh:EuropeexcludingUnitedKingdomMemberctsh:FinancialServicesMember2022-01-012022-03-310001058290ctsh:EuropeexcludingUnitedKingdomMemberctsh:HealthcareSegmentMember2022-01-012022-03-310001058290ctsh:ProductsandResourcesMemberctsh:EuropeexcludingUnitedKingdomMember2022-01-012022-03-310001058290ctsh:EuropeexcludingUnitedKingdomMemberctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290ctsh:EuropeexcludingUnitedKingdomMember2022-01-012022-03-310001058290srt:EuropeMemberctsh:FinancialServicesMember2022-01-012022-03-310001058290srt:EuropeMemberctsh:HealthcareSegmentMember2022-01-012022-03-310001058290ctsh:ProductsandResourcesMembersrt:EuropeMember2022-01-012022-03-310001058290srt:EuropeMemberctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290srt:EuropeMember2022-01-012022-03-310001058290ctsh:RestofWorldMemberctsh:FinancialServicesMember2022-01-012022-03-310001058290ctsh:RestofWorldMemberctsh:HealthcareSegmentMember2022-01-012022-03-310001058290ctsh:RestofWorldMemberctsh:ProductsandResourcesMember2022-01-012022-03-310001058290ctsh:RestofWorldMemberctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290ctsh:RestofWorldMember2022-01-012022-03-310001058290ctsh:FinancialServicesMember2022-01-012022-03-310001058290ctsh:HealthcareSegmentMember2022-01-012022-03-310001058290ctsh:ProductsandResourcesMember2022-01-012022-03-310001058290ctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290ctsh:ConsultingAndTechnologyServicesMemberctsh:FinancialServicesMember2022-01-012022-03-310001058290ctsh:ConsultingAndTechnologyServicesMemberctsh:HealthcareSegmentMember2022-01-012022-03-310001058290ctsh:ProductsandResourcesMemberctsh:ConsultingAndTechnologyServicesMember2022-01-012022-03-310001058290ctsh:ConsultingAndTechnologyServicesMemberctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290ctsh:ConsultingAndTechnologyServicesMember2022-01-012022-03-310001058290ctsh:OutsourcingServicesMemberctsh:FinancialServicesMember2022-01-012022-03-310001058290ctsh:OutsourcingServicesMemberctsh:HealthcareSegmentMember2022-01-012022-03-310001058290ctsh:ProductsandResourcesMemberctsh:OutsourcingServicesMember2022-01-012022-03-310001058290ctsh:OutsourcingServicesMemberctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290ctsh:OutsourcingServicesMember2022-01-012022-03-310001058290ctsh:FinancialServicesMemberus-gaap:TimeAndMaterialsContractMember2022-01-012022-03-310001058290ctsh:HealthcareSegmentMemberus-gaap:TimeAndMaterialsContractMember2022-01-012022-03-310001058290ctsh:ProductsandResourcesMemberus-gaap:TimeAndMaterialsContractMember2022-01-012022-03-310001058290ctsh:CommunicationMediaandTechnologyMemberus-gaap:TimeAndMaterialsContractMember2022-01-012022-03-310001058290us-gaap:TimeAndMaterialsContractMember2022-01-012022-03-310001058290us-gaap:FixedPriceContractMemberctsh:FinancialServicesMember2022-01-012022-03-310001058290us-gaap:FixedPriceContractMemberctsh:HealthcareSegmentMember2022-01-012022-03-310001058290ctsh:ProductsandResourcesMemberus-gaap:FixedPriceContractMember2022-01-012022-03-310001058290us-gaap:FixedPriceContractMemberctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290us-gaap:FixedPriceContractMember2022-01-012022-03-310001058290ctsh:TransactionOrVolumeBasedMemberctsh:FinancialServicesMember2022-01-012022-03-310001058290ctsh:TransactionOrVolumeBasedMemberctsh:HealthcareSegmentMember2022-01-012022-03-310001058290ctsh:ProductsandResourcesMemberctsh:TransactionOrVolumeBasedMember2022-01-012022-03-310001058290ctsh:TransactionOrVolumeBasedMemberctsh:CommunicationMediaandTechnologyMember2022-01-012022-03-310001058290ctsh:TransactionOrVolumeBasedMember2022-01-012022-03-310001058290srt:NorthAmericaMemberctsh:FinancialServicesMember2021-01-012021-03-310001058290srt:NorthAmericaMemberctsh:HealthcareSegmentMember2021-01-012021-03-310001058290srt:NorthAmericaMemberctsh:ProductsandResourcesMember2021-01-012021-03-310001058290srt:NorthAmericaMemberctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290srt:NorthAmericaMember2021-01-012021-03-310001058290country:GBctsh:FinancialServicesMember2021-01-012021-03-310001058290country:GBctsh:HealthcareSegmentMember2021-01-012021-03-310001058290ctsh:ProductsandResourcesMembercountry:GB2021-01-012021-03-310001058290country:GBctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290country:GB2021-01-012021-03-310001058290ctsh:EuropeexcludingUnitedKingdomMemberctsh:FinancialServicesMember2021-01-012021-03-310001058290ctsh:EuropeexcludingUnitedKingdomMemberctsh:HealthcareSegmentMember2021-01-012021-03-310001058290ctsh:ProductsandResourcesMemberctsh:EuropeexcludingUnitedKingdomMember2021-01-012021-03-310001058290ctsh:EuropeexcludingUnitedKingdomMemberctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290ctsh:EuropeexcludingUnitedKingdomMember2021-01-012021-03-310001058290srt:EuropeMemberctsh:FinancialServicesMember2021-01-012021-03-310001058290srt:EuropeMemberctsh:HealthcareSegmentMember2021-01-012021-03-310001058290ctsh:ProductsandResourcesMembersrt:EuropeMember2021-01-012021-03-310001058290srt:EuropeMemberctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290srt:EuropeMember2021-01-012021-03-310001058290ctsh:RestofWorldMemberctsh:FinancialServicesMember2021-01-012021-03-310001058290ctsh:RestofWorldMemberctsh:HealthcareSegmentMember2021-01-012021-03-310001058290ctsh:RestofWorldMemberctsh:ProductsandResourcesMember2021-01-012021-03-310001058290ctsh:RestofWorldMemberctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290ctsh:RestofWorldMember2021-01-012021-03-310001058290ctsh:FinancialServicesMember2021-01-012021-03-310001058290ctsh:HealthcareSegmentMember2021-01-012021-03-310001058290ctsh:ProductsandResourcesMember2021-01-012021-03-310001058290ctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290ctsh:ConsultingAndTechnologyServicesMemberctsh:FinancialServicesMember2021-01-012021-03-310001058290ctsh:ConsultingAndTechnologyServicesMemberctsh:HealthcareSegmentMember2021-01-012021-03-310001058290ctsh:ProductsandResourcesMemberctsh:ConsultingAndTechnologyServicesMember2021-01-012021-03-310001058290ctsh:ConsultingAndTechnologyServicesMemberctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290ctsh:ConsultingAndTechnologyServicesMember2021-01-012021-03-310001058290ctsh:OutsourcingServicesMemberctsh:FinancialServicesMember2021-01-012021-03-310001058290ctsh:OutsourcingServicesMemberctsh:HealthcareSegmentMember2021-01-012021-03-310001058290ctsh:ProductsandResourcesMemberctsh:OutsourcingServicesMember2021-01-012021-03-310001058290ctsh:OutsourcingServicesMemberctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290ctsh:OutsourcingServicesMember2021-01-012021-03-310001058290ctsh:FinancialServicesMemberus-gaap:TimeAndMaterialsContractMember2021-01-012021-03-310001058290ctsh:HealthcareSegmentMemberus-gaap:TimeAndMaterialsContractMember2021-01-012021-03-310001058290ctsh:ProductsandResourcesMemberus-gaap:TimeAndMaterialsContractMember2021-01-012021-03-310001058290ctsh:CommunicationMediaandTechnologyMemberus-gaap:TimeAndMaterialsContractMember2021-01-012021-03-310001058290us-gaap:TimeAndMaterialsContractMember2021-01-012021-03-310001058290us-gaap:FixedPriceContractMemberctsh:FinancialServicesMember2021-01-012021-03-310001058290us-gaap:FixedPriceContractMemberctsh:HealthcareSegmentMember2021-01-012021-03-310001058290ctsh:ProductsandResourcesMemberus-gaap:FixedPriceContractMember2021-01-012021-03-310001058290us-gaap:FixedPriceContractMemberctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290us-gaap:FixedPriceContractMember2021-01-012021-03-310001058290ctsh:TransactionOrVolumeBasedMemberctsh:FinancialServicesMember2021-01-012021-03-310001058290ctsh:TransactionOrVolumeBasedMemberctsh:HealthcareSegmentMember2021-01-012021-03-310001058290ctsh:ProductsandResourcesMemberctsh:TransactionOrVolumeBasedMember2021-01-012021-03-310001058290ctsh:TransactionOrVolumeBasedMemberctsh:CommunicationMediaandTechnologyMember2021-01-012021-03-310001058290ctsh:TransactionOrVolumeBasedMember2021-01-012021-03-3100010582902022-04-012022-03-31xbrli:pure0001058290us-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:ShortTermInvestmentsMember2021-12-310001058290ctsh:LongterminvestmentsMember2022-03-310001058290ctsh:LongterminvestmentsMember2021-12-310001058290ctsh:CertificatesOfDepositAndCommercialPaperMemberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:CorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:CorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:CorporateDebtSecuritiesMember2022-03-310001058290us-gaap:CommercialPaperMember2022-03-310001058290srt:MaximumMember2022-03-310001058290us-gaap:CorporateDebtSecuritiesMember2021-12-310001058290us-gaap:CommercialPaperMember2021-12-310001058290srt:MaximumMember2021-12-310001058290ctsh:CreditAgreementMemberus-gaap:LoansPayableMember2018-11-300001058290ctsh:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:UnsecuredDebtMember2018-11-300001058290ctsh:CreditAgreementMemberus-gaap:EurodollarMember2022-01-012022-03-310001058290ctsh:CreditAgreementMemberus-gaap:BaseRateMember2022-01-012022-03-310001058290ctsh:CreditAgreementMembersrt:MinimumMemberus-gaap:EurodollarMember2022-01-012022-03-310001058290ctsh:CreditAgreementMembersrt:MaximumMemberus-gaap:EurodollarMember2022-01-012022-03-310001058290ctsh:CreditAgreementMemberctsh:EurocurrencyWithoutDebtRatingsMembersrt:MinimumMember2022-01-012022-03-310001058290ctsh:CreditAgreementMemberctsh:EurocurrencyWithoutDebtRatingsMembersrt:MaximumMember2022-01-012022-03-310001058290ctsh:WorkingCapitalFacilityMember2022-03-01iso4217:INR0001058290ctsh:WorkingCapitalFacilityMember2022-03-310001058290ctsh:CreditAgreementMemberus-gaap:LoansPayableMember2022-03-310001058290ctsh:CreditAgreementMemberus-gaap:LoansPayableMember2021-12-310001058290ctsh:CreditAgreementMember2022-03-310001058290ctsh:CreditAgreementMember2021-12-310001058290us-gaap:MinistryOfFinanceIndiaMemberus-gaap:ForeignCountryMemberctsh:A2013IndiaShareRepurchaseMember2013-01-012013-12-310001058290us-gaap:MinistryOfFinanceIndiaMemberus-gaap:ForeignCountryMemberctsh:A2016IndiaCashRemittanceMember2016-01-012016-12-310001058290us-gaap:MinistryOfFinanceIndiaMemberus-gaap:ForeignCountryMemberctsh:A2016IndiaCashRemittanceMember2018-03-310001058290us-gaap:MinistryOfFinanceIndiaMemberus-gaap:ForeignCountryMemberctsh:A2016IndiaCashRemittanceMember2022-03-310001058290us-gaap:MinistryOfFinanceIndiaMemberus-gaap:ForeignCountryMemberctsh:A2016IndiaCashRemittanceMember2018-04-300001058290us-gaap:MinistryOfFinanceIndiaMemberus-gaap:ForeignCountryMemberus-gaap:OtherCurrentAssetsMemberctsh:A2016IndiaCashRemittanceMember2022-03-310001058290us-gaap:MinistryOfFinanceIndiaMemberus-gaap:ForeignCountryMemberus-gaap:OtherCurrentAssetsMemberctsh:A2016IndiaCashRemittanceMember2021-12-310001058290us-gaap:MinistryOfFinanceIndiaMemberus-gaap:ForeignCountryMemberctsh:LongterminvestmentsMemberctsh:A2016IndiaCashRemittanceMember2022-03-310001058290us-gaap:MinistryOfFinanceIndiaMemberus-gaap:ForeignCountryMemberctsh:LongterminvestmentsMemberctsh:A2016IndiaCashRemittanceMember2021-12-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-03-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-12-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:CashFlowHedgingMember2022-03-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:CashFlowHedgingMember2021-12-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberctsh:AccruedExpensesAndOtherCurrentLiabilitiesMemberus-gaap:CashFlowHedgingMember2022-03-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberctsh:AccruedExpensesAndOtherCurrentLiabilitiesMemberus-gaap:CashFlowHedgingMember2021-12-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-03-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-12-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-03-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-12-310001058290us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeForwardMember2022-03-310001058290us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeForwardMember2021-12-310001058290us-gaap:NondesignatedMemberctsh:AccruedExpensesAndOtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeForwardMember2022-03-310001058290us-gaap:NondesignatedMemberctsh:AccruedExpensesAndOtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeForwardMember2021-12-310001058290us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-03-310001058290us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-12-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberctsh:ForeignExchangeContractMaturity2022Memberus-gaap:CashFlowHedgingMember2022-03-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberctsh:ForeignExchangeContractMaturity2022Memberus-gaap:CashFlowHedgingMember2021-12-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberctsh:ForeignExchangeContractMaturity2023Member2022-03-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberctsh:ForeignExchangeContractMaturity2023Member2021-12-310001058290ctsh:ForeignExchangeContractMaturity2024Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-03-310001058290ctsh:ForeignExchangeContractMaturity2024Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-12-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeOptionMember2022-03-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeOptionMember2021-12-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310001058290us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310001058290us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310001058290us-gaap:ForeignCurrencyGainLossMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2022-01-012022-03-310001058290us-gaap:ForeignCurrencyGainLossMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2021-01-012021-03-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-03-310001058290us-gaap:BankTimeDepositsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2022-03-310001058290us-gaap:BankTimeDepositsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001058290us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2022-03-310001058290us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMemberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMemberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:FairValueInputsLevel1Memberctsh:CertificatesOfDepositAndCommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMember2022-03-310001058290ctsh:CertificatesOfDepositAndCommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2022-03-310001058290ctsh:CertificatesOfDepositAndCommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ShortTermInvestmentsMember2022-03-310001058290ctsh:CertificatesOfDepositAndCommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMember2022-03-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001058290us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-03-310001058290us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-03-310001058290us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001058290ctsh:LongterminvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-03-310001058290ctsh:LongterminvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentAssetsMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentAssetsMember2022-03-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberctsh:AccruedExpensesAndOtherCurrentLiabilitiesMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberctsh:AccruedExpensesAndOtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberctsh:AccruedExpensesAndOtherCurrentLiabilitiesMember2022-03-310001058290us-gaap:FairValueMeasurementsRecurringMemberctsh:AccruedExpensesAndOtherCurrentLiabilitiesMember2022-03-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-03-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-03-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashEquivalentsMemberus-gaap:MoneyMarketFundsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-12-310001058290us-gaap:BankTimeDepositsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2021-12-310001058290us-gaap:BankTimeDepositsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001058290us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2021-12-310001058290us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:BankTimeDepositsMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMember2021-12-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2021-12-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001058290us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-12-310001058290us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-12-310001058290us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001058290ctsh:LongterminvestmentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-12-310001058290ctsh:LongterminvestmentsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentAssetsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:FairValueInputsLevel2Member2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherNoncurrentAssetsMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherNoncurrentAssetsMember2021-12-310001058290us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherCurrentLiabilitiesMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherCurrentLiabilitiesMember2021-12-310001058290us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherCurrentLiabilitiesMember2021-12-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-12-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-12-310001058290us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001058290us-gaap:FairValueInputsLevel3Memberctsh:ContingentConsiderationMember2021-12-310001058290us-gaap:FairValueInputsLevel3Memberctsh:ContingentConsiderationMember2020-12-310001058290us-gaap:FairValueInputsLevel3Memberctsh:ContingentConsiderationMember2022-01-012022-03-310001058290us-gaap:FairValueInputsLevel3Memberctsh:ContingentConsiderationMember2021-01-012021-03-310001058290us-gaap:FairValueInputsLevel3Memberctsh:ContingentConsiderationMember2022-03-310001058290us-gaap:FairValueInputsLevel3Memberctsh:ContingentConsiderationMember2021-03-310001058290us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001058290us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310001058290us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-12-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-01-012022-03-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:CostOfSalesMember2022-01-012022-03-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-03-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-03-310001058290us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001058290us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310001058290us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-12-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-01-012021-03-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:CostOfSalesMember2021-01-012021-03-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-03-310001058290us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-03-310001058290ctsh:SyntelSterlingBestShoresMauritiusLtdMember2020-10-272020-10-270001058290ctsh:SyntelSterlingBestShoresMauritiusLtdMember2021-04-202021-04-200001058290ctsh:IndiaDefinedContributionObligationMember2019-09-300001058290ctsh:ConsolidatedPutativeSecuritiesClassActionMember2021-09-072021-09-070001058290ctsh:ConsolidatedPutativeSecuritiesClassActionMember2021-09-070001058290ctsh:ConsolidatedPutativeSecuritiesClassActionMember2021-07-012021-09-300001058290us-gaap:OperatingSegmentsMemberctsh:FinancialServicesMember2022-01-012022-03-310001058290us-gaap:OperatingSegmentsMemberctsh:FinancialServicesMember2021-01-012021-03-310001058290us-gaap:OperatingSegmentsMemberctsh:HealthcareSegmentMember2022-01-012022-03-310001058290us-gaap:OperatingSegmentsMemberctsh:HealthcareSegmentMember2021-01-012021-03-310001058290us-gaap:OperatingSegmentsMemberctsh:ProductsandResourcesMember2022-01-012022-03-310001058290us-gaap:OperatingSegmentsMemberctsh:ProductsandResourcesMember2021-01-012021-03-310001058290us-gaap:OperatingSegmentsMemberctsh:CommunicationsMediaandTechnologyMember2022-01-012022-03-310001058290us-gaap:OperatingSegmentsMemberctsh:CommunicationsMediaandTechnologyMember2021-01-012021-03-310001058290us-gaap:OperatingSegmentsMember2022-01-012022-03-310001058290us-gaap:OperatingSegmentsMember2021-01-012021-03-310001058290us-gaap:CorporateNonSegmentMember2022-01-012022-03-310001058290us-gaap:CorporateNonSegmentMember2021-01-012021-03-310001058290srt:NorthAmericaMember2022-03-310001058290srt:NorthAmericaMember2021-12-310001058290srt:EuropeMember2022-03-310001058290srt:EuropeMember2021-12-310001058290ctsh:RestofWorldMember2022-03-310001058290ctsh:RestofWorldMember2021-12-310001058290us-gaap:SubsequentEventMember2022-05-022022-05-02
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2022
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from                      to                     
Commission File Number 0-24429
ctsh-20220331_g1.jpg
 COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware 13-3728359
(State or Other Jurisdiction of
Incorporation or Organization)
 (I.R.S. Employer
Identification No.)
300 Frank W. Burr Blvd.
Teaneck, New Jersey 07666
(Address of Principal Executive Offices including Zip Code)
Registrant’s telephone number, including area code: (201801-0233
N/A
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock,
$0.01 par value per share
CTSHThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes     No:  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes      No:  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of April 29, 2022:
Class Number of Shares
Class A Common Stock, par value $0.01 per share 521,173,838




COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
TABLE OF CONTENTS
 
  Page
PART I.
Item 1.
Item 2.
Item 3.
Item 4.
PART II.
Item 1.
Item 1A.
Item 2.
Item 6.




GLOSSARY
Defined TermDefinition
10b5-1 Plan
Trading plan adopted pursuant to Rule 10b5-1 of the Exchange Act
Adjusted Diluted EPSAdjusted Diluted Earnings Per Share
ASCAccounting Standards Codification
ASRAccelerated Stock Repurchase
CCConstant Currency
CITACommissioner of Income Tax (Appeals)
Class Action Settlement Loss
Loss recorded in connection with the filing of a settlement agreement to resolve the consolidated putative securities class action against us and certain of our former officers
CMTCommunications, Media and Technology
COVID-19The novel coronavirus disease
Credit AgreementCredit agreement with a commercial bank syndicate, as amended
CTS IndiaOur principal operating subsidiary in India
DOJUnited States Department of Justice
DSODays Sales Outstanding
EPSEarnings Per Share
ESGEnvironmental, social and corporate governance
EUEuropean Union
Exchange ActSecurities Exchange Act of 1934, as amended
GAAPGenerally Accepted Accounting Principles in the United States of America
High CourtMadras High Court
India Defined Contribution ObligationCertain statutory defined contribution obligations of employees and employers in India
IoTInternet of Things
ITDIndian Income Tax Department
SCISupreme Court of India
SECUnited States Securities and Exchange Commission
Second CircuitUnited States Court of Appeals for the Second Circuit
SG&ASelling, general and administrative
Syntel
Syntel Sterling Best Shores Mauritius Ltd.
Tax Reform ActTax Cuts and Jobs Act
Term LoanUnsecured term loan
Third CircuitUnited States Court of Appeals for the Third Circuit
TriZetto
The TriZetto Group, Inc., now known as Cognizant Technology Software Group, Inc.
USDC-NJUnited States District Court for the District of New Jersey
USDC-SDNY
United States District Court for the Southern District of New York






Cognizant Technology Solutions
1
March 31, 2022 Form 10-Q
                        

PART I. FINANCIAL INFORMATION
 
Item 1.     Consolidated Financial Statements (Unaudited).
COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(in millions, except par values)March 31, 2022December 31, 2021
Assets
Current assets:
Cash and cash equivalents$2,192 $1,792 
Short-term investments127 927 
Trade accounts receivable, net3,663 3,557 
Other current assets1,095 1,066 
Total current assets7,077 7,342 
Property and equipment, net1,171 1,171 
Operating lease assets, net915 933 
Goodwill5,605 5,620 
Intangible assets, net1,167 1,218 
Deferred income tax assets, net333 404 
Long-term investments458 463 
Other noncurrent assets708 701 
Total assets$17,434 $17,852 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$394 $361 
Deferred revenue455 403 
Short-term debt38 38 
Operating lease liabilities194 195 
Accrued expenses and other current liabilities2,105 2,532 
Total current liabilities3,186 3,529 
Deferred revenue, noncurrent23 40 
Operating lease liabilities, noncurrent758 783 
Deferred income tax liabilities, net213 218 
Long-term debt617 626 
Long-term income taxes payable378 378 
Other noncurrent liabilities286 287 
Total liabilities5,461 5,861 
Commitments and contingencies (See Note 10)
Stockholders’ equity:
Preferred stock, $0.10 par value, 15 shares authorized, none issued
  
Class A common stock, $0.01 par value, 1,000 shares authorized, 521 and 525 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
5 5 
Additional paid-in capital31 27 
Retained earnings11,956 11,922 
Accumulated other comprehensive income (loss)(19)37 
Total stockholders’ equity11,973 11,991 
Total liabilities and stockholders’ equity$17,434 $17,852 
The accompanying notes are an integral part of the unaudited consolidated financial statements.





Cognizant Technology Solutions
2
March 31, 2022 Form 10-Q
                        

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 
 (in millions, except per share data)
Three Months Ended
March 31,
 20222021
Revenues$4,826 $4,401 
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization expense shown separately below)3,097 2,764 
Selling, general and administrative expenses862 827 
Depreciation and amortization expense143 141 
Income from operations724 669 
Other income (expense), net:
Interest income6 9 
Interest expense(2)(2)
Foreign currency exchange gains (losses), net (9)
Other, net1 (2)
Total other income (expense), net5 (4)
Income before provision for income taxes729 665 
Provision for income taxes(170)(160)
Income (loss) from equity method investments4  
Net income$563 $505 
Basic earnings per share$1.07 $0.95 
Diluted earnings per share$1.07 $0.95 
Weighted average number of common shares outstanding - Basic524 530 
Dilutive effect of shares issuable under stock-based compensation plans1 1 
Weighted average number of common shares outstanding - Diluted525 531 
The accompanying notes are an integral part of the unaudited consolidated financial statements.





Cognizant Technology Solutions
3
March 31, 2022 Form 10-Q
                        

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

 
 (in millions)
Three Months Ended
March 31,
 20222021
Net income$563 $505 
Change in Accumulated other comprehensive income (loss), net of tax:
Foreign currency translation adjustments(37)(25)
Unrealized gains and losses on cash flow hedges(19)(4)
Other comprehensive income (loss)(56)(29)
Comprehensive income$507 $476 
The accompanying notes are an integral part of the unaudited consolidated financial statements.





Cognizant Technology Solutions
4
March 31, 2022 Form 10-Q
                        

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
 (in millions)
Class A Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
 Total
Shares    Amount
Balance, December 31, 2021525 $5 $27 $11,922 $37 $11,991 
Net income— — — 563 — 563 
Other comprehensive income (loss)— — — — (56)(56)
Common stock issued, stock-based compensation plans1 — 31 — — 31 
Stock-based compensation expense— — 56 — — 56 
Repurchases of common stock(5)— (83)(387)— (470)
Dividends declared, $0.27 per share
— — — (142)— (142)
Balance, March 31, 2022521 $5 $31 $11,956 $(19)$11,973 
 (in millions)
Class A Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
 Total
Shares    Amount
Balance, December 31, 2020530 $5 $32 $10,689 $110 $10,836 
Net income— — — 505 — 505 
Other comprehensive income (loss)— — — — (29)(29)
Common stock issued, stock-based compensation plans1 — 43 — — 43 
Stock-based compensation expense— — 62 — — 62 
Repurchases of common stock(3)— (93)(159)— (252)
Dividends declared, $0.24 per share
— — — (128)— (128)
Balance, March 31, 2021528 $5 $44 $10,907 $81 $11,037 

The accompanying notes are an integral part of the unaudited consolidated financial statements.





Cognizant Technology Solutions
5
March 31, 2022 Form 10-Q
                        

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 (in millions)
For the Three Months Ended
March 31,
 20222021
Cash flows from operating activities:
Net income$563 $505 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization143 141 
Deferred income taxes70 122 
Stock-based compensation expense56 62 
Other27  
Changes in assets and liabilities:
Trade accounts receivable(117)(131)
Other current and noncurrent assets(73)(36)
Accounts payable35 61 
Deferred revenues, current and noncurrent36 15 
Other current and noncurrent liabilities(434)(558)
Net cash provided by operating activities306 181 
Cash flows from investing activities:
Purchases of property and equipment(120)(88)
Purchases of available-for-sale investment securities(65) 
Proceeds from maturity or sale of available-for-sale investment securities310  
Purchases of held-to-maturity investment securities(16)(82)
Proceeds from maturity of held-to-maturity investment securities20 62 
Purchases of other investments(39)(150)
Proceeds from maturity or sale of other investments591 30 
Proceeds from sales of businesses19  
Payments for business combinations, net of cash acquired (310)
Net cash provided by (used in) investing activities700 (538)
Cash flows from financing activities:
Issuance of common stock under stock-based compensation plans31 43 
Repurchases of common stock(474)(240)
Repayment of Term Loan borrowings and finance lease and earnout obligations(14)(15)
Dividends paid(143)(128)
Net cash (used in) financing activities(600)(340)
Effect of exchange rate changes on cash and cash equivalents(6)(10)
Increase (decrease) in cash and cash equivalents400 (707)
Cash and cash equivalents, beginning of year1,792 2,680 
Cash and cash equivalents, end of period$2,192 $1,973 
The accompanying notes are an integral part of the unaudited consolidated financial statements.





Cognizant Technology Solutions
6
March 31, 2022 Form 10-Q
                        

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1 — Interim Consolidated Financial Statements
The terms “Cognizant,” “we,” “our,” “us” and “the Company” refer to Cognizant Technology Solutions Corporation and its subsidiaries unless the context indicates otherwise. We have prepared the accompanying unaudited consolidated financial statements included herein in accordance with GAAP and the Exchange Act. The accompanying unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) included in our Annual Report on Form 10-K for the year ended December 31, 2021. In our opinion, all adjustments considered necessary for a fair statement of the accompanying unaudited consolidated financial statements have been included and all adjustments are of a normal and recurring nature. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire year.
Note 2 — Revenues and Trade Accounts Receivable
Disaggregation of Revenues

The tables below present disaggregated revenues from contracts with clients by client location, service line and contract type for each of the business segments. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Our consulting and technology services include consulting, application development, systems integration, and application testing services as well as software solutions and related services while our outsourcing services include application maintenance, infrastructure and business process services. Revenues are attributed to geographic regions based upon client location, which is the client's billing address. Substantially all revenues in the North America region relate to clients in the United States.
Three Months Ended
March 31, 2022
(in millions)Financial ServicesHealthcareProducts and ResourcesCommunications, Media and TechnologyTotal
Revenues
Geography:
North America$1,080 $1,195 $761 $533 $3,569 
United Kingdom151 44 132 126 453 
Continental Europe157 120 145 37 459 
Europe - Total308 164 277 163 912 
Rest of World 140 33 92 80 345 
Total$1,528 $1,392 $1,130 $776 $4,826 
Service line:
Consulting and technology services$1,057 $804 $754 $448 $3,063 
Outsourcing services471 588 376 328 1,763 
Total$1,528 $1,392 $1,130 $776 $4,826 
Type of contract:
Time and materials$890 $494 $467 $448 $2,299 
Fixed-price557 618 572 292 2,039 
Transaction or volume-based81 280 91 36 488 
Total$1,528 $1,392 $1,130 $776 $4,826 






Cognizant Technology Solutions
7
March 31, 2022 Form 10-Q
                        

Three Months Ended
March 31, 2021
(in millions)Financial ServicesHealthcareProducts and ResourcesCommunications, Media and TechnologyTotal
Revenues
Geography:
North America$1,013 $1,101 $718 $451 $3,283 
United Kingdom125 40 106 99 370 
Continental Europe192 118 103 43 456 
Europe - Total317 158 209 142 826 
Rest of World 128 29 71 64 292 
Total$1,458 $1,288 $998 $657 $4,401 
Service line:
Consulting and technology services$967 $745 $616 $396 $2,724 
Outsourcing services491 543 382 261 1,677 
Total$1,458 $1,288 $998 $657 $4,401 
Type of contract:
Time and materials$899 $519 $418 $397 $2,233 
Fixed-price471 499 481 230 1,681 
Transaction or volume-based88 270 99 30 487 
Total$1,458 $1,288 $998 $657 $4,401 
Costs to Fulfill
Costs to fulfill, such as setup or transition activities, are recorded in "Other noncurrent assets" in our unaudited consolidated statements of financial position and the amortization expense of costs to fulfill is included in "Cost of revenues" in our unaudited consolidated statements of operations. Costs to obtain contracts were immaterial for the periods disclosed. The following table presents information related to the capitalized costs to fulfill for the three months ended March 31:
(in millions)20222021
Beginning balance$394 $467 
Costs capitalized12 14 
Amortization expense(27)(29)
Impairment charge (9)
Ending balance$379 $443 
Contract Balances
A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets are presented in "Other current assets" in our unaudited consolidated statements of financial position and primarily relate to unbilled amounts on fixed-price contracts utilizing the cost-to-cost method of revenue recognition. The table below shows significant movements in contract assets for the three months ended March 31:
(in millions)20222021
Beginning balance$310 $315 
Revenues recognized during the period but not billed259 183 
Amounts reclassified to trade accounts receivable(202)(162)
Ending balance$367 $336 






Cognizant Technology Solutions
8
March 31, 2022 Form 10-Q
                        

Contract liabilities, or deferred revenue, consist of advance payments and billings in excess of revenues recognized. The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the three months ended March 31:
(in millions)20222021
Beginning balance$443 $419 
Amounts billed but not recognized as revenues396 341 
Revenues recognized related to the beginning balance of deferred revenue(361)(325)
Ending balance$478 $435 
Revenues recognized during the three months ended March 31, 2022 for performance obligations satisfied or partially satisfied in previous periods were immaterial.
Remaining Performance Obligations
As of March 31, 2022, the aggregate amount of transaction price allocated to remaining performance obligations was $1,720 million, of which approximately 85% is expected to be recognized as revenues within 2 years. Disclosure is not required for performance obligations that meet any of the following criteria:
(1)contracts with a duration of one year or less as determined under ASC Topic 606: "Revenue from Contracts with Customers",
(2)contracts for which we recognize revenues based on the right to invoice for services performed,
(3)variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or
(4)variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property.
Many of our performance obligations meet one or more of these exemptions and therefore are not included in the remaining performance obligation amount disclosed above.
Trade Accounts Receivable and Allowance for Credit Losses
We calculate expected credit losses for trade accounts receivable based on historical credit loss rates for each aging category as adjusted for the current market conditions and forecasts about future economic conditions. The following table presents the activity in the allowance for credit losses for trade accounts receivable for the three months ended March 31:
(in millions)20222021
Beginning balance$50 $57 
Credit loss expense (income) 9 (5)
Write-offs charged against the allowance(2)(6)
Ending balance$57 $46 







Cognizant Technology Solutions
9
March 31, 2022 Form 10-Q
                        

Note 3 — Investments
Our investments were as follows:
(in millions)March 31, 2022December 31, 2021
Short-term investments:
Equity investment security$26 $26 
Available-for-sale investment securities65 310 
Held-to-maturity investment securities33 37 
Time deposits3 554 
Total short-term investments$127 $927 
Long-term investments:
Other investments$69 $66 
Restricted time deposits(1)
389 397 
Total long-term investments$458 $463 
(1)See Note 6.
Equity Investment Security
Our equity investment security is a U.S. dollar denominated investment in a fixed income mutual fund. Realized and unrealized gains and losses were immaterial for the three months ended March 31, 2022 and 2021.
Available-for-Sale Investment Securities
Our available-for-sale investment securities consist of highly rated U.S. dollar denominated investments in certificates of deposit and commercial paper maturing within one year. As of March 31, 2022, the amortized cost and fair value of the available-for-sale investments were $65 million. As of December 31, 2021, the amortized cost and fair value of the available-for-sale investments were $310 million. Unrealized gains and losses were immaterial as of March 31, 2022 and December 31, 2021. There were no realized gains or losses related to the available-for-sale investment securities during the three months ended March 31, 2022 and 2021. There were no sales of available-for sale investment securities during the three months ended March 31, 2022 and 2021.
Held-to-Maturity Investment Securities
Our held-to-maturity investment securities consist of Indian rupee denominated investments in commercial paper and international corporate bonds. The basis for the measurement of fair value of the held-to-maturity investment securities is Level 2 in the fair value hierarchy.
The amortized cost and fair value of held-to-maturity investment securities were as follows:
March 31, 2022December 31, 2021
(in millions)Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Short-term investments, maturing within one year:
Corporate debt securities$17 $17 $17 $17 
Commercial paper16 16 20 20 
Total held-to-maturity investments$33 $33 $37 $37 
As of March 31, 2022, $10 million of corporate debt securities and $9 million of commercial paper were in an unrealized loss position. The total unrealized loss was less than $1 million and none of the securities had been in an unrealized loss position for longer than 12 months. As of December 31, 2021, $17 million of corporate debt securities and $10 million of commercial paper were in an unrealized loss position. The total unrealized loss was less than $1 million and none of the securities had been in an unrealized loss position for longer than 12 months.
The securities in our portfolio are highly rated and short-term in nature. As of March 31, 2022, the corporate debt securities were rated AA+ or better and the commercial paper securities were rated A-1+ by CRISIL, an Indian subsidiary of S&P Global.





Cognizant Technology Solutions
10
March 31, 2022 Form 10-Q
                        

Other Investments
As of March 31, 2022 and December 31, 2021, we had equity method investments of $67 million and $63 million, respectively, primarily related to an investment in the technology sector. As of March 31, 2022 and December 31, 2021, we had equity securities without a readily determinable fair value of $2 million and $3 million, respectively.

Note 4 — Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities were as follows:
(in millions)March 31, 2022December 31, 2021
Compensation and benefits$1,233 $1,601 
Customer volume and other incentives271 242 
Income taxes57 74 
Professional fees190 220 
Other354 395 
Total accrued expenses and other current liabilities$2,105 $2,532 

Note 5 — Debt

In 2018, we entered into the Credit Agreement providing for the $750 million Term Loan and a $1,750 million unsecured revolving credit facility, which are due to mature in November 2023. We are required under the Credit Agreement to make scheduled quarterly principal payments on the Term Loan.

The Credit Agreement requires interest to be paid, at our option, at either the ABR, the Eurocurrency Rate or the Daily Simple RFR (each as defined in the Credit Agreement), plus, in each case, an Applicable Margin (as defined in the Credit Agreement). Initially, the Applicable Margin is 0.875% with respect to Eurocurrency Rate and Daily Simple RFR and 0.00% with respect to ABR loans. Subsequently, the Applicable Margin with respect to Eurocurrency Rate and Daily Simple RFR may range from 0.75% to 1.125%, depending on our public debt ratings (or, if we have not received public debt ratings, from 0.875% to 1.125%, depending on our Leverage Ratio, which is the ratio of indebtedness for borrowed money to Consolidated EBITDA, as defined in the Credit Agreement). The Term Loan is a Eurocurrency Rate Loan.

The Credit Agreement contains customary affirmative and negative covenants as well as a financial covenant. We were in compliance with all debt covenants and representations of the Credit Agreement as of March 31, 2022.
In March 2022, our India subsidiary renewed its 13 billion Indian rupee ($171 million at the March 31, 2022 exchange rate) working capital facility, which requires us to repay any balances within 90 days from the date of disbursement. There is a 1.0% prepayment penalty applicable to payments made within 30 days of disbursement. This working capital facility contains affirmative and negative covenants and may be renewed annually. As of March 31, 2022, we have not borrowed funds under this facility.
Short-term Debt
As of both March 31, 2022 and December 31, 2021, we had $38 million of short-term debt related to current maturities of the Term Loan.





Cognizant Technology Solutions
11
March 31, 2022 Form 10-Q
                        

Long-term Debt
The following summarizes the long-term debt balances as of:
(in millions)March 31, 2022December 31, 2021
Term Loan$656 $666 
Less:
Current maturities(38)(38)
Deferred financing costs(1)(2)
Long-term debt, net of current maturities$617 $626 
The carrying value of our debt approximated its fair value as of March 31, 2022 and December 31, 2021.

Note 6 — Income Taxes
Our effective income tax rates were as follows:
 Three Months Ended
March 31,
 20222021
Effective income tax rate23.3 %24.1 %
We are involved in two separate ongoing disputes with the ITD in connection with previously disclosed share repurchase transactions undertaken by CTS India in 2013 and 2016 to repurchase shares from its shareholders (non-Indian Cognizant entities) valued at $523 million and $2.8 billion, respectively.
The 2016 transaction was undertaken pursuant to a plan approved by the High Court in Chennai, India, and resulted in the payment of $135 million in Indian income taxes - an amount we believe includes all the applicable taxes owed for this transaction under Indian law. In March 2018, the ITD asserted that it is owed an additional 33 billion Indian rupees ($435 million at the March 31, 2022 exchange rate) on the 2016 transaction. We deposited 5 billion Indian rupees, representing 15% of the disputed tax amount related to the 2016 transaction, with the ITD. As of March 31, 2022 and December 31, 2021, the deposit with the ITD was $65 million and $67 million, respectively, presented in "Other noncurrent assets". Additionally, certain time deposits of CTS India were placed under lien in favor of the ITD, representing the remainder of the disputed tax amount. As of March 31, 2022 and December 31, 2021, the balance of deposits under lien was 30 billion Indian rupees, including previously earned interest, or $389 million and $397 million, respectively, as presented in "Long-term investments". The dispute in relation to the 2013 share repurchase transaction is also in litigation. At this time, the ITD has not made specific demands with regards to this transaction.
In April 2020, we received a formal assessment from the ITD on the 2016 transaction, which is consistent with its previous assertions. In June 2020, we filed an appeal against this assessment to the CITA. In March 2022, we received a negative decision from the CITA.
 
We continue to believe we have paid all applicable taxes owed on both the 2016 and the 2013 transactions and we continue to defend our positions with respect to both matters. Accordingly, we have not recorded any reserves for these matters as of March 31, 2022.

Note 7 — Derivative Financial Instruments
In the normal course of business, we use foreign exchange forward and option contracts to manage foreign currency exchange rate risk. Derivatives may give rise to credit risk from the possible non-performance by counterparties. Credit risk is limited to the fair value of those contracts that are favorable to us. We have limited our credit risk by limiting the amount of credit exposure with any one financial institution and conducting ongoing evaluation of the creditworthiness of the financial institutions with which we do business. In addition, all the assets and liabilities related to the foreign exchange derivative contracts set forth in the below table are subject to master netting arrangements, such as the International Swaps and Derivatives Association Master Agreement, with each individual counterparty. These master netting arrangements generally provide for net settlement of all outstanding contracts with the counterparty in the case of an event of default or a termination event. We have presented all the assets and liabilities related to the foreign exchange derivative contracts, as applicable, on a gross basis, with no offsets, in our unaudited consolidated statements of financial position. There is no financial collateral (including cash collateral) posted or received by us related to the foreign exchange derivative contracts.





Cognizant Technology Solutions
12
March 31, 2022 Form 10-Q
                        

The following table provides information on the location and fair values of derivative financial instruments included in our unaudited consolidated statements of financial position as of:
 (in millions) March 31, 2022December 31, 2021
Designation of DerivativesLocation on Statement of
Financial Position
AssetsLiabilitiesAssets  Liabilities
Foreign exchange forward and option contracts – Designated as cash flow hedging instrumentsOther current assets$34 $— $51 $— 
Other noncurrent assets11 — 15