10-Q 1 g-20210930.htm 10-Q g-20210930
FALSE2021Q3000139865912-31D0us-gaap:AccountingStandardsUpdate201613MemberP1Yus-gaap:OtherLiabilitiesCurrentus-gaap:OtherLiabilitiesCurrentus-gaap:OtherLiabilitiesNoncurrentus-gaap:OtherLiabilitiesNoncurrentP3Y33300013986592021-01-012021-09-30xbrli:shares00013986592021-11-02iso4217:USD00013986592020-12-3100013986592021-09-30iso4217:USDxbrli:shares00013986592020-07-012020-09-3000013986592021-07-012021-09-3000013986592020-01-012020-09-300001398659us-gaap:CommonStockMember2020-06-300001398659us-gaap:AdditionalPaidInCapitalMember2020-06-300001398659us-gaap:RetainedEarningsMember2020-06-300001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000013986592020-06-300001398659us-gaap:CommonStockMember2020-07-012020-09-300001398659us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001398659us-gaap:RetainedEarningsMember2020-07-012020-09-300001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001398659us-gaap:CommonStockMember2020-09-300001398659us-gaap:AdditionalPaidInCapitalMember2020-09-300001398659us-gaap:RetainedEarningsMember2020-09-300001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-3000013986592020-09-300001398659us-gaap:CommonStockMember2019-12-310001398659us-gaap:AdditionalPaidInCapitalMember2019-12-310001398659us-gaap:RetainedEarningsMember2019-12-310001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-3100013986592019-12-3100013986592019-01-012019-12-310001398659us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001398659srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001398659us-gaap:CommonStockMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310001398659srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:AdditionalPaidInCapitalMember2019-12-310001398659us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310001398659us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310001398659srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2019-12-310001398659us-gaap:CommonStockMember2020-01-012020-09-300001398659us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300001398659us-gaap:RetainedEarningsMember2020-01-012020-09-300001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001398659us-gaap:CommonStockMember2021-06-300001398659us-gaap:AdditionalPaidInCapitalMember2021-06-300001398659us-gaap:RetainedEarningsMember2021-06-300001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000013986592021-06-300001398659us-gaap:CommonStockMember2021-07-012021-09-300001398659us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001398659us-gaap:RetainedEarningsMember2021-07-012021-09-300001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001398659us-gaap:CommonStockMember2021-09-300001398659us-gaap:AdditionalPaidInCapitalMember2021-09-300001398659us-gaap:RetainedEarningsMember2021-09-300001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001398659us-gaap:CommonStockMember2020-12-310001398659us-gaap:AdditionalPaidInCapitalMember2020-12-310001398659us-gaap:RetainedEarningsMember2020-12-310001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001398659us-gaap:CommonStockMember2021-01-012021-09-300001398659us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001398659us-gaap:RetainedEarningsMember2021-01-012021-09-300001398659us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-30g:Employee0001398659srt:MinimumMember2021-09-30g:Country0001398659us-gaap:CustomerRelatedIntangibleAssetsMembersrt:MinimumMember2021-01-012021-09-300001398659us-gaap:CustomerRelatedIntangibleAssetsMembersrt:MaximumMember2021-01-012021-09-300001398659us-gaap:MarketingRelatedIntangibleAssetsMembersrt:MinimumMember2021-01-012021-09-300001398659srt:MaximumMemberus-gaap:MarketingRelatedIntangibleAssetsMember2021-01-012021-09-300001398659us-gaap:TechnologyBasedIntangibleAssetsMembersrt:MinimumMember2021-01-012021-09-300001398659us-gaap:TechnologyBasedIntangibleAssetsMembersrt:MaximumMember2021-01-012021-09-30xbrli:pure0001398659us-gaap:CreditConcentrationRiskMemberg:GeneralElectricCompanyMemberus-gaap:AccountsReceivableMember2020-01-012020-12-310001398659us-gaap:CreditConcentrationRiskMemberg:GeneralElectricCompanyMemberus-gaap:AccountsReceivableMember2021-01-012021-09-300001398659g:RevenueConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberg:GeneralElectricCompanyMember2020-07-012020-09-300001398659g:RevenueConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberg:GeneralElectricCompanyMember2020-01-012020-09-300001398659g:RevenueConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberg:GeneralElectricCompanyMember2021-07-012021-09-300001398659g:RevenueConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMemberg:GeneralElectricCompanyMember2021-01-012021-09-300001398659srt:MinimumMember2021-01-012021-09-300001398659srt:MaximumMember2021-01-012021-09-300001398659g:EnqueroIncMember2020-12-310001398659g:EnqueroIncMember2020-12-312020-12-310001398659us-gaap:CustomerRelatedIntangibleAssetsMemberg:EnqueroIncMember2020-12-310001398659us-gaap:MarketingRelatedIntangibleAssetsMemberg:EnqueroIncMember2020-12-310001398659us-gaap:TechnologyBasedIntangibleAssetsMemberg:EnqueroIncMember2020-12-310001398659g:BankingCapitalMarketsAndInsuranceMemberg:EnqueroIncMember2020-12-310001398659g:ConsumerGoodsRetailLifeSciencesAndHealthcareMemberg:EnqueroIncMember2020-12-310001398659g:EnqueroIncMemberg:HighTechManufacturingAndServicesMember2020-12-310001398659g:SomethingDigitalComLLCMember2020-10-050001398659g:SomethingDigitalComLLCMember2020-10-052020-10-050001398659us-gaap:CustomerRelatedIntangibleAssetsMemberg:SomethingDigitalComLLCMember2020-10-050001398659us-gaap:MarketingRelatedIntangibleAssetsMemberg:SomethingDigitalComLLCMember2020-10-05g:numberOfOperatingSegment0001398659g:ConsumerGoodsRetailLifeSciencesAndHealthcareMemberg:SomethingDigitalComLLCMember2020-10-050001398659g:SomethingDigitalComLLCMemberg:HighTechManufacturingAndServicesMember2020-10-050001398659g:RightpointConsultingLLCMember2019-11-120001398659g:RightpointConsultingLLCMember2019-11-122019-11-120001398659g:RightpointConsultingLLCMember2021-09-300001398659us-gaap:CustomerRelatedIntangibleAssetsMemberg:RightpointConsultingLLCMember2019-11-120001398659us-gaap:MarketingRelatedIntangibleAssetsMemberg:RightpointConsultingLLCMember2019-11-120001398659g:RightpointConsultingLLCMemberg:BankingCapitalMarketsAndInsuranceMember2019-11-120001398659g:ConsumerGoodsRetailLifeSciencesAndHealthcareMemberg:RightpointConsultingLLCMember2019-11-120001398659g:RightpointConsultingLLCMemberg:HighTechManufacturingAndServicesMember2019-11-1200013986592020-01-012020-12-310001398659us-gaap:AccountingStandardsUpdate201613Member2020-12-310001398659us-gaap:FairValueMeasurementsRecurringMember2020-12-310001398659us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001398659us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001398659us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001398659us-gaap:FairValueMeasurementsRecurringMember2021-09-300001398659us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001398659us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001398659us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001398659g:BusinessAcquisitionContingentConsiderationMember2021-01-012021-09-300001398659g:BusinessAcquisitionContingentConsiderationMember2020-06-300001398659g:BusinessAcquisitionContingentConsiderationMember2021-06-300001398659g:BusinessAcquisitionContingentConsiderationMember2019-12-310001398659g:BusinessAcquisitionContingentConsiderationMember2020-12-310001398659g:BusinessAcquisitionContingentConsiderationMember2020-07-012020-09-300001398659g:BusinessAcquisitionContingentConsiderationMember2021-07-012021-09-300001398659g:BusinessAcquisitionContingentConsiderationMember2020-01-012020-09-300001398659g:BusinessAcquisitionContingentConsiderationMember2020-09-300001398659g:BusinessAcquisitionContingentConsiderationMember2021-09-300001398659g:DeferredCompensationPlanAssetsMember2021-01-012021-09-300001398659g:DeferredCompensationPlanAssetsMember2020-06-300001398659g:DeferredCompensationPlanAssetsMember2021-06-300001398659g:DeferredCompensationPlanAssetsMember2019-12-310001398659g:DeferredCompensationPlanAssetsMember2020-12-310001398659g:DeferredCompensationPlanAssetsMember2020-07-012020-09-300001398659g:DeferredCompensationPlanAssetsMember2021-07-012021-09-300001398659g:DeferredCompensationPlanAssetsMember2020-01-012020-09-300001398659g:DeferredCompensationPlanAssetsMember2020-09-300001398659g:DeferredCompensationPlanAssetsMember2021-09-300001398659g:DeferredCompensationLiabilitiesMember2021-01-012021-09-300001398659g:DeferredCompensationLiabilitiesMember2020-06-300001398659g:DeferredCompensationLiabilitiesMember2021-06-300001398659g:DeferredCompensationLiabilitiesMember2019-12-310001398659g:DeferredCompensationLiabilitiesMember2020-12-310001398659g:DeferredCompensationLiabilitiesMember2020-07-012020-09-300001398659g:DeferredCompensationLiabilitiesMember2021-07-012021-09-300001398659g:DeferredCompensationLiabilitiesMember2020-01-012020-09-300001398659g:DeferredCompensationLiabilitiesMember2020-09-300001398659g:DeferredCompensationLiabilitiesMember2021-09-300001398659us-gaap:ForeignExchangeForwardMember2021-01-012021-09-300001398659us-gaap:InterestRateSwapMember2021-01-012021-09-300001398659g:UnitedStatesDollarsSellIndianRupeesBuyMember2020-12-310001398659g:UnitedStatesDollarsSellIndianRupeesBuyMember2021-09-300001398659g:UnitedStatesDollarsSellMexicanPesoBuyMember2020-12-310001398659g:UnitedStatesDollarsSellMexicanPesoBuyMember2021-09-300001398659g:UnitedStatesDollarsSellPhilippinesPesoBuyMember2020-12-310001398659g:UnitedStatesDollarsSellPhilippinesPesoBuyMember2021-09-300001398659g:EuroSellUnitedStatesDollarsBuyMember2020-12-310001398659g:EuroSellUnitedStatesDollarsBuyMember2021-09-300001398659g:SingaporeDollarsBuyUnitedStatesDollarsSellMember2020-12-310001398659g:SingaporeDollarsBuyUnitedStatesDollarsSellMember2021-09-300001398659g:EuroSellRomanianLeuBuyMember2020-12-310001398659g:EuroSellRomanianLeuBuyMember2021-09-300001398659g:JapaneseYenSellChineseRenminbiBuyMember2020-12-310001398659g:JapaneseYenSellChineseRenminbiBuyMember2021-09-300001398659g:UnitedStatesDollarsSellHungarianForintBuyMember2020-12-310001398659g:UnitedStatesDollarsSellHungarianForintBuyMember2021-09-300001398659g:HungarianFontSellEuroBuyMember2020-12-310001398659g:HungarianFontSellEuroBuyMember2021-09-300001398659g:AustralianDollarsSellIndianRupeesBuyMember2020-12-310001398659g:AustralianDollarsSellIndianRupeesBuyMember2021-09-300001398659g:PoundSterlingSellUnitedStatesDollarBuyMember2020-12-310001398659g:PoundSterlingSellUnitedStatesDollarBuyMember2021-09-300001398659g:InterestRateSwapFloatingToFixedMember2020-12-310001398659g:InterestRateSwapFloatingToFixedMember2021-09-300001398659us-gaap:CashFlowHedgingMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310001398659us-gaap:CashFlowHedgingMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-09-300001398659us-gaap:NondesignatedMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-12-310001398659us-gaap:NondesignatedMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-09-300001398659us-gaap:CashFlowHedgingMemberus-gaap:OtherAssetsMember2020-12-310001398659us-gaap:CashFlowHedgingMemberus-gaap:OtherAssetsMember2021-09-300001398659us-gaap:NondesignatedMemberus-gaap:OtherAssetsMember2020-12-310001398659us-gaap:NondesignatedMemberus-gaap:OtherAssetsMember2021-09-300001398659us-gaap:CashFlowHedgingMemberg:AccruedExpensesAndOtherCurrentLiabilitiesMember2020-12-310001398659us-gaap:CashFlowHedgingMemberg:AccruedExpensesAndOtherCurrentLiabilitiesMember2021-09-300001398659us-gaap:NondesignatedMemberg:AccruedExpensesAndOtherCurrentLiabilitiesMember2020-12-310001398659us-gaap:NondesignatedMemberg:AccruedExpensesAndOtherCurrentLiabilitiesMember2021-09-300001398659us-gaap:CashFlowHedgingMemberus-gaap:OtherLiabilitiesMember2020-12-310001398659us-gaap:CashFlowHedgingMemberus-gaap:OtherLiabilitiesMember2021-09-300001398659us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2020-12-310001398659us-gaap:NondesignatedMemberus-gaap:OtherLiabilitiesMember2021-09-300001398659us-gaap:TreasuryLockMember2021-03-310001398659us-gaap:TreasuryLockMember2021-09-300001398659us-gaap:ForeignExchangeContractMember2020-07-012020-09-300001398659us-gaap:ForeignExchangeContractMember2021-07-012021-09-300001398659us-gaap:ForeignExchangeContractMember2020-01-012020-09-300001398659us-gaap:ForeignExchangeContractMember2021-01-012021-09-300001398659us-gaap:SalesMember2020-07-012020-09-300001398659us-gaap:SalesMember2021-07-012021-09-300001398659us-gaap:SalesMember2020-01-012020-09-300001398659us-gaap:SalesMember2021-01-012021-09-300001398659us-gaap:InterestRateSwapMember2020-07-012020-09-300001398659us-gaap:InterestRateSwapMember2021-07-012021-09-300001398659us-gaap:InterestRateSwapMember2020-01-012020-09-300001398659us-gaap:CostOfSalesMember2020-07-012020-09-300001398659us-gaap:CostOfSalesMember2021-07-012021-09-300001398659us-gaap:CostOfSalesMember2020-01-012020-09-300001398659us-gaap:CostOfSalesMember2021-01-012021-09-300001398659us-gaap:TreasuryLockMember2020-07-012020-09-300001398659us-gaap:TreasuryLockMember2021-07-012021-09-300001398659us-gaap:TreasuryLockMember2020-01-012020-09-300001398659us-gaap:TreasuryLockMember2021-01-012021-09-300001398659us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300001398659us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300001398659us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300001398659us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300001398659us-gaap:InterestExpenseMember2020-07-012020-09-300001398659us-gaap:InterestExpenseMember2021-07-012021-09-300001398659us-gaap:InterestExpenseMember2020-01-012020-09-300001398659us-gaap:InterestExpenseMember2021-01-012021-09-300001398659us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberg:ForwardForeignExchangeContractsMember2020-07-012020-09-300001398659us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberg:ForwardForeignExchangeContractsMember2021-07-012021-09-300001398659us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberg:ForwardForeignExchangeContractsMember2020-01-012020-09-300001398659us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberg:ForwardForeignExchangeContractsMember2021-01-012021-09-300001398659us-gaap:ForeignExchangeContractMemberg:ForwardForeignExchangeContractsMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-07-012020-09-300001398659us-gaap:ForeignExchangeContractMemberg:ForwardForeignExchangeContractsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-07-012021-09-300001398659us-gaap:ForeignExchangeContractMemberg:ForwardForeignExchangeContractsMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-09-300001398659us-gaap:ForeignExchangeContractMemberg:ForwardForeignExchangeContractsMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-09-300001398659g:DepreciationExpenseOnPropertyPlantAndEquipmentMember2020-01-012020-09-300001398659g:DepreciationExpenseOnPropertyPlantAndEquipmentMember2021-01-012021-09-300001398659g:DepreciationExpenseOnPropertyPlantAndEquipmentMember2020-07-012020-09-300001398659g:DepreciationExpenseOnPropertyPlantAndEquipmentMember2021-07-012021-09-300001398659us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2020-01-012020-09-300001398659us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-01-012021-09-300001398659us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2020-07-012020-09-300001398659us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-07-012021-09-300001398659g:BankingCapitalMarketsAndInsuranceMember2019-12-310001398659g:ConsumerGoodsRetailLifeSciencesAndHealthcareMember2019-12-310001398659g:HighTechManufacturingAndServicesMember2019-12-310001398659g:BankingCapitalMarketsAndInsuranceMember2020-01-012020-12-310001398659g:ConsumerGoodsRetailLifeSciencesAndHealthcareMember2020-01-012020-12-310001398659g:HighTechManufacturingAndServicesMember2020-01-012020-12-310001398659g:BankingCapitalMarketsAndInsuranceMember2020-12-310001398659g:ConsumerGoodsRetailLifeSciencesAndHealthcareMember2020-12-310001398659g:HighTechManufacturingAndServicesMember2020-12-310001398659g:BankingCapitalMarketsAndInsuranceMember2021-01-012021-09-300001398659g:ConsumerGoodsRetailLifeSciencesAndHealthcareMember2021-01-012021-09-300001398659g:HighTechManufacturingAndServicesMember2021-01-012021-09-300001398659g:BankingCapitalMarketsAndInsuranceMember2021-09-300001398659g:ConsumerGoodsRetailLifeSciencesAndHealthcareMember2021-09-300001398659g:HighTechManufacturingAndServicesMember2021-09-300001398659us-gaap:CustomerRelatedIntangibleAssetsMember2020-12-310001398659us-gaap:CustomerRelatedIntangibleAssetsMember2021-09-300001398659us-gaap:MarketingRelatedIntangibleAssetsMember2020-12-310001398659us-gaap:MarketingRelatedIntangibleAssetsMember2021-09-300001398659us-gaap:TechnologyBasedIntangibleAssetsMember2020-12-310001398659us-gaap:TechnologyBasedIntangibleAssetsMember2021-09-300001398659g:IntangibleAssetsUnderDevelopmentMember2020-12-310001398659g:IntangibleAssetsUnderDevelopmentMember2021-09-300001398659us-gaap:DevelopedTechnologyRightsMember2020-01-012020-09-300001398659us-gaap:DevelopedTechnologyRightsMember2021-01-012021-09-300001398659us-gaap:DevelopedTechnologyRightsMember2020-07-012020-09-300001398659us-gaap:DevelopedTechnologyRightsMember2021-07-012021-09-300001398659us-gaap:TechnologyBasedIntangibleAssetsMember2020-07-012020-09-300001398659us-gaap:TechnologyBasedIntangibleAssetsMember2021-07-012021-09-300001398659us-gaap:TechnologyBasedIntangibleAssetsMember2020-01-012020-09-300001398659us-gaap:TechnologyBasedIntangibleAssetsMember2021-01-012021-09-300001398659us-gaap:CustomerRelatedIntangibleAssetsMember2020-07-012020-09-300001398659us-gaap:CustomerRelatedIntangibleAssetsMember2021-07-012021-09-300001398659us-gaap:CustomerRelatedIntangibleAssetsMember2020-01-012020-09-300001398659us-gaap:CustomerRelatedIntangibleAssetsMember2021-01-012021-09-300001398659us-gaap:PropertyPlantAndEquipmentMember2020-07-012020-09-300001398659us-gaap:PropertyPlantAndEquipmentMember2021-07-012021-09-300001398659us-gaap:PropertyPlantAndEquipmentMember2020-01-012020-09-300001398659us-gaap:PropertyPlantAndEquipmentMember2021-01-012021-09-300001398659us-gaap:RevolvingCreditFacilityMember2018-08-090001398659us-gaap:RevolvingCreditFacilityMember2018-08-080001398659g:FundBasedCreditFacilityMember2020-01-012020-12-310001398659g:FundBasedCreditFacilityMember2021-01-012021-09-300001398659g:NonFundBasedCreditFacilityMember2020-12-310001398659g:NonFundBasedCreditFacilityMember2021-09-300001398659g:TermLoanCreditFacilityMemberg:TwoThousandFifteenCreditFacilityMember2018-08-310001398659g:TwoThousandFifteenCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2018-08-310001398659g:TermLoanCreditFacilityMemberg:AmendedTwoThousandFifteenCreditFacilityMember2018-08-310001398659us-gaap:RevolvingCreditFacilityMemberg:AmendedTwoThousandFifteenCreditFacilityMember2018-08-310001398659g:TermLoanCreditFacilityMemberg:TwoThousandFifteenCreditFacilityMember2018-08-012018-08-310001398659g:TermLoanCreditFacilityMemberg:AmendedTwoThousandFifteenCreditFacilityMember2018-08-012018-08-310001398659g:AmendedTwoThousandFifteenCreditFacilityMember2018-08-012018-08-310001398659us-gaap:RevolvingCreditFacilityMemberg:AmendedTwoThousandFifteenCreditFacilityMember2018-08-012018-08-3100013986592018-08-012018-08-310001398659g:TwoThousandFifteenCreditFacilityMember2018-08-012018-08-310001398659g:AmendedTwoThousandFifteenCreditFacilityMember2018-08-310001398659g:TwoThousandFifteenCreditFacilityMember2018-08-310001398659g:TermLoanCreditFacilityMember2020-01-012020-12-310001398659g:TermLoanCreditFacilityMember2021-01-012021-09-300001398659g:TermLoanCreditFacilityMember2020-12-310001398659g:TermLoanCreditFacilityMember2021-09-300001398659srt:SubsidiaryIssuerMemberg:TwoThousandSeventeenSeniorNotesMember2017-03-310001398659g:TwoThousandNineteenSeniorNotesMembersrt:SubsidiaryIssuerMember2019-11-300001398659srt:SubsidiaryIssuerMemberg:TwoThousandSeventeenSeniorNotesMember2020-01-012020-12-310001398659srt:SubsidiaryIssuerMemberg:TwoThousandSeventeenSeniorNotesMember2021-01-012021-09-300001398659srt:SubsidiaryIssuerMemberg:TwoThousandSeventeenSeniorNotesMember2020-12-310001398659srt:SubsidiaryIssuerMemberg:TwoThousandSeventeenSeniorNotesMember2021-09-300001398659g:TwoThousandNineteenSeniorNotesMembersrt:SubsidiaryIssuerMember2020-01-012020-12-310001398659g:TwoThousandNineteenSeniorNotesMembersrt:SubsidiaryIssuerMember2021-01-012021-09-300001398659g:TwoThousandNineteenSeniorNotesMembersrt:SubsidiaryIssuerMember2020-12-310001398659g:TwoThousandNineteenSeniorNotesMembersrt:SubsidiaryIssuerMember2021-09-300001398659g:TwoThousandTwentyOneSeniorNotesMembersrt:SubsidiaryIssuerMember2021-03-310001398659g:TwoThousandTwentyOneSeniorNotesMembersrt:SubsidiaryIssuerMember2021-01-012021-09-300001398659g:TwoThousandTwentyOneSeniorNotesMembersrt:SubsidiaryIssuerMember2021-09-300001398659g:TwoThousandSeventeenSeniorNotesMember2020-12-310001398659g:TwoThousandSeventeenSeniorNotesMember2021-09-300001398659g:TwoThousandNineteenSeniorNotesMember2020-12-310001398659g:TwoThousandNineteenSeniorNotesMember2021-09-300001398659g:TwoThousandTwentyOneSeniorNotesMember2020-12-310001398659g:TwoThousandTwentyOneSeniorNotesMember2021-09-300001398659country:IN2020-07-012020-09-300001398659country:IN2021-07-012021-09-300001398659country:IN2020-01-012020-09-300001398659country:IN2021-01-012021-09-300001398659country:US2020-07-012020-09-300001398659country:US2021-07-012021-09-300001398659country:US2020-01-012020-09-300001398659country:US2021-01-012021-09-300001398659country:GB2020-07-012020-09-300001398659country:GB2021-07-012021-09-300001398659country:GB2020-01-012020-09-300001398659country:GB2021-01-012021-09-300001398659country:CN2020-07-012020-09-300001398659country:CN2021-07-012021-09-300001398659country:CN2020-01-012020-09-300001398659country:CN2021-01-012021-09-300001398659g:OtherRegionsMember2020-07-012020-09-300001398659g:OtherRegionsMember2021-07-012021-09-300001398659g:OtherRegionsMember2020-01-012020-09-300001398659g:OtherRegionsMember2021-01-012021-09-300001398659country:USsrt:MinimumMember2018-07-012018-07-010001398659srt:MaximumMembercountry:US2018-07-012018-07-010001398659country:US2018-07-012018-07-010001398659g:VestingPeriodOneMembercountry:US2018-07-010001398659g:VestingPeriodTwoMembercountry:US2018-07-010001398659g:TwoThousandSevenOmnibusPlanMember2012-04-112012-04-110001398659g:TwoThousandSevenOmnibusPlanMember2012-04-110001398659g:TwoThousandSevenOmnibusPlanMember2012-01-012012-12-310001398659g:TwoThousandSeventeenOmnibusPlanMember2017-05-090001398659g:TwoThousandSevenOmnibusPlanMember2019-04-042019-04-050001398659g:TwoThousandSevenOmnibusPlanMember2019-04-050001398659us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001398659srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001398659srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001398659us-gaap:RestrictedStockUnitsRSUMember2020-12-310001398659us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001398659us-gaap:RestrictedStockUnitsRSUMember2021-09-300001398659us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-12-310001398659srt:MinimumMemberus-gaap:PerformanceSharesMember2021-01-012021-09-300001398659srt:MaximumMemberus-gaap:PerformanceSharesMember2021-01-012021-09-300001398659us-gaap:PerformanceSharesMember2020-12-310001398659us-gaap:PerformanceSharesMember2021-01-012021-09-300001398659us-gaap:PerformanceSharesMember2021-09-300001398659g:EmployeeStockPurchasePlanMember2021-01-012021-09-300001398659g:EmployeeStockPurchasePlanMember2021-09-300001398659g:EmployeeStockPurchasePlanMember2020-01-012020-09-300001398659g:EmployeeStockPurchasePlanMember2020-07-012020-09-300001398659g:EmployeeStockPurchasePlanMember2021-07-012021-09-3000013986592019-02-062019-02-0700013986592020-06-262020-06-2600013986592020-09-232020-09-2300013986592020-03-182020-03-1800013986592021-02-092021-02-0900013986592021-06-232021-06-2300013986592021-03-192021-03-1900013986592021-09-242021-09-240001398659us-gaap:OperatingSegmentsMemberg:BankingCapitalMarketsAndInsuranceMember2020-07-012020-09-300001398659us-gaap:OperatingSegmentsMemberg:ConsumerGoodsRetailLifeSciencesAndHealthcareMember2020-07-012020-09-300001398659us-gaap:OperatingSegmentsMemberg:HighTechManufacturingAndServicesMember2020-07-012020-09-300001398659us-gaap:OperatingSegmentsMember2020-07-012020-09-300001398659us-gaap:CorporateNonSegmentMember2020-07-012020-09-300001398659us-gaap:OperatingSegmentsMemberg:BankingCapitalMarketsAndInsuranceMember2021-07-012021-09-300001398659us-gaap:OperatingSegmentsMemberg:ConsumerGoodsRetailLifeSciencesAndHealthcareMember2021-07-012021-09-300001398659us-gaap:OperatingSegmentsMemberg:HighTechManufacturingAndServicesMember2021-07-012021-09-300001398659us-gaap:OperatingSegmentsMember2021-07-012021-09-300001398659us-gaap:CorporateNonSegmentMember2021-07-012021-09-300001398659us-gaap:OperatingSegmentsMemberg:BankingCapitalMarketsAndInsuranceMember2020-01-012020-09-300001398659us-gaap:OperatingSegmentsMemberg:ConsumerGoodsRetailLifeSciencesAndHealthcareMember2020-01-012020-09-300001398659us-gaap:OperatingSegmentsMemberg:HighTechManufacturingAndServicesMember2020-01-012020-09-300001398659us-gaap:OperatingSegmentsMember2020-01-012020-09-300001398659us-gaap:CorporateNonSegmentMember2020-01-012020-09-300001398659us-gaap:OperatingSegmentsMemberg:BankingCapitalMarketsAndInsuranceMember2021-01-012021-09-300001398659us-gaap:OperatingSegmentsMemberg:ConsumerGoodsRetailLifeSciencesAndHealthcareMember2021-01-012021-09-300001398659us-gaap:OperatingSegmentsMemberg:HighTechManufacturingAndServicesMember2021-01-012021-09-300001398659us-gaap:OperatingSegmentsMember2021-01-012021-09-300001398659us-gaap:CorporateNonSegmentMember2021-01-012021-09-300001398659g:GlobalClientsMember2020-07-012020-09-300001398659g:GlobalClientsMember2021-07-012021-09-300001398659g:GlobalClientsMember2020-01-012020-09-300001398659g:GlobalClientsMember2021-01-012021-09-300001398659g:GeneralElectricCompanyMember2020-07-012020-09-300001398659g:GeneralElectricCompanyMember2021-07-012021-09-300001398659g:GeneralElectricCompanyMember2020-01-012020-09-300001398659g:GeneralElectricCompanyMember2021-01-012021-09-3000013986592021-10-012021-09-3000013986592022-01-012021-09-3000013986592025-01-012021-09-3000013986592028-01-012021-09-300001398659g:SalesIncentiveProgramsMember2020-06-300001398659g:ProcessTransitionActivitiesMember2020-06-300001398659g:SalesIncentiveProgramsMember2021-06-300001398659g:ProcessTransitionActivitiesMember2021-06-300001398659g:SalesIncentiveProgramsMember2019-12-310001398659g:ProcessTransitionActivitiesMember2019-12-310001398659g:SalesIncentiveProgramsMember2020-12-310001398659g:ProcessTransitionActivitiesMember2020-12-310001398659g:SalesIncentiveProgramsMember2020-09-300001398659g:ProcessTransitionActivitiesMember2020-09-300001398659g:SalesIncentiveProgramsMember2021-09-300001398659g:ProcessTransitionActivitiesMember2021-09-300001398659g:SalesIncentiveProgramsMember2020-07-012020-09-300001398659g:ProcessTransitionActivitiesMember2020-07-012020-09-300001398659g:SalesIncentiveProgramsMember2021-07-012021-09-300001398659g:ProcessTransitionActivitiesMember2021-07-012021-09-300001398659g:SalesIncentiveProgramsMember2020-01-012020-09-300001398659g:ProcessTransitionActivitiesMember2020-01-012020-09-300001398659g:SalesIncentiveProgramsMember2021-01-012021-09-300001398659g:ProcessTransitionActivitiesMember2021-01-012021-09-300001398659us-gaap:CapitalAdditionsMember2020-01-012020-12-310001398659us-gaap:CapitalAdditionsMember2021-01-012021-09-300001398659srt:AffiliatedEntityMember2020-06-3000013986592016-01-012016-12-310001398659g:OfficePremisesAndEmployeeSeveranceChargeMember2020-04-012020-06-300001398659us-gaap:EmployeeSeveranceMember2020-07-012020-09-3000013986592020-04-012020-09-300001398659g:NonCashExpenseMember2020-04-012020-09-300001398659us-gaap:PropertyPlantAndEquipmentMember2020-04-012020-09-300001398659us-gaap:SubsequentEventMemberg:FourthQuarterDividendMember2021-10-142021-10-14

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarterly Period ended September 30, 2021
Or
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: 001-33626
 
GENPACT LIMITED
(Exact name of registrant as specified in its charter)
 
 
Bermuda98-0533350
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
 
Canon's Court
22 Victoria Street
Hamilton HM 12
Bermuda
(441298-3300
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive office)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common shares, par value $0.01 per shareGNew York Stock Exchange
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 filerAccelerated filer
Non-accelerated filerSmaller 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
As of November 2, 2021, there were 188,060,328 common shares, par value $0.01 per share, of the registrant issued and outstanding.
 
 
 




TABLE OF CONTENTS
 
Item No.Page No.
1.
2.
3.
4.
1.
1A.
2.
6.



PART I - FINANCIAL INFORMATION
Item 1. Unaudited Consolidated Financial Statements

GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share data and share count) 

NotesAs of December 31, 2020As of September 30, 2021
Assets
Current assets
Cash and cash equivalents4$680,440 $922,475 
Accounts receivable, net of allowance for credit losses of $27,707 and $29,527 as of December 31, 2020 and September 30, 2021, respectively
5881,020 951,171 
Prepaid expenses and other current assets8187,408 201,598 
Total current assets$1,748,868 $2,075,244 
Property, plant and equipment, net9231,122 207,920 
Operating lease right-of-use assets304,714 273,587 
Deferred tax assets23106,674 108,871 
Intangible assets, net10236,732 171,008 
Goodwill101,695,688 1,685,684 
Contract cost assets20225,897 240,378 
Other assets, net of allowance for credit losses of $3,134 and $2,593 as of December 31, 2020 and September 30, 2021, respectively
323,818 286,439 
Total assets $4,873,513 $5,049,131 
Liabilities and equity
Current liabilities
Short-term borrowings11$250,000 $ 
Current portion of long-term debt1233,537 383,293 
Accounts payable13,910 24,834 
Income taxes payable2341,941 110,019 
Accrued expenses and other current liabilities13806,769 735,980 
Operating leases liability56,479 58,222 
Total current liabilities$1,202,636 $1,312,348 
Long-term debt, less current portion121,307,371 1,280,571 
Operating leases liability289,363 254,347 
Deferred tax liabilities231,516 1,237 
Other liabilities14238,398 247,742 
Total liabilities$3,039,284 $3,096,245 
Shareholders' equity
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued
  
Common shares, $0.01 par value, 500,000,000 authorized, 189,045,661 and 188,056,571 issued and outstanding as of December 31, 2020 and September 30, 2021, respectively
1,885 1,876 
Additional paid-in capital 1,636,026 1,690,250 
Retained earnings741,658 830,372 
Accumulated other comprehensive income (loss)(545,340)(569,612)
Total equity$1,834,229 $1,952,886 
Commitments and contingencies25
Total liabilities and equity $4,873,513 $5,049,131 
 See accompanying notes to the Consolidated Financial Statements.
3


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(In thousands, except per share data and share count)
 
Three months ended September 30,Nine months ended September 30,
Notes2020202120202021
Net revenues20$935,523 $1,015,737 $2,758,809 $2,949,934 
Cost of revenue605,829 653,686 1,804,492 1,887,596 
Gross profit$329,694 $362,051 $954,317 $1,062,338 
Operating expenses:
Selling, general and administrative expenses198,335 215,957 581,989 620,857 
Amortization of acquired intangible assets1010,235 13,898 31,673 44,624 
Other operating (income) expense, net21(3,518)(93)14,991 (217)
Income from operations $124,642 $132,289 $325,664 $397,074 
Foreign exchange gains (losses), net(2,402)2,733 11,611 11,529 
Interest income (expense), net22(12,757)(12,765)(38,072)(38,198)
Other income (expense), net24960 1,480 946 8,966 
Income before income tax expense$110,443 $123,737 $300,149 $379,371 
Income tax expense2325,008 21,351 66,855 83,008 
Net income $85,435 $102,386 $233,294 $296,363 
Earnings per common share 18
Basic$0.45 $0.55 $1.22 $1.58 
Diluted$0.43 $0.53 $1.19 $1.54 
Weighted average number of common shares used in computing earnings per common share 18
Basic190,949,108 187,856,026 190,705,671 187,945,234 
Diluted196,655,140 193,159,929 196,100,067 192,885,252 
 
See accompanying notes to the Consolidated Financial Statements.
4


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(In thousands)
 
Three months ended September 30,Nine months ended September 30,
2020202120202021
Net income $85,435 $102,386 $233,294 $296,363 
Other comprehensive income:
Currency translation adjustments36,106 (9,043)(36,959)(36,721)
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7)19,856 7,789 (18,893)10,321 
Retirement benefits, net of taxes301 497 2,383 2,128 
Other comprehensive income (loss) 56,263 (757)(53,469)(24,272)
Comprehensive income (loss)$141,698 $101,629 $179,825 $272,091 
 
See accompanying notes to the Consolidated Financial Statements.
5


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Equity
For the three months ended September 30, 2020
(Unaudited)
(In thousands, except share count)
 
Common sharesAccumulated Other
Comprehensive
Income (Loss)
No. of
Shares
AmountAdditional 
Paid-in Capital
Retained
Earnings
Total
Equity
Balance as of July 1, 2020190,721,373 $1,903 $1,590,017 $710,382 $(641,688)$1,660,614 
Issuance of common shares on exercise of options (Note 16)203,306 2 4,271 — — 4,273 
Issuance of common shares under the employee stock purchase plan (Note 16)67,639 1 2,567 — — 2,568 
Net settlement on vesting of restricted share units (Note 16)151,419 2 (4,258)— — (4,256)
Net settlement on vesting of performance units (Note 16) — — — —  
Stock repurchased and retired (Note 17)(739,790)(8)— (28,544)— (28,552)
Expenses related to stock repurchase (Note 17)— — — (15)— (15)
Stock-based compensation expense (Note 16)— — 19,487 — — 19,487 
Comprehensive income (loss):
Net income (loss)— — — 85,435 — 85,435 
Other comprehensive income (loss)— — — — 56,263 56,263 
Dividend ($0.0975 per common share, Note 17)
— — — (18,637)— (18,637)
Balance as of September 30, 2020190,403,947 $1,900 $1,612,084 $748,621 $(585,425)$1,777,180 
 
See accompanying notes to the Consolidated Financial Statements.

6


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Equity
For the nine months ended September 30, 2020
(Unaudited)
(In thousands, except share count)
Common sharesAccumulated Other
Comprehensive
Income (Loss)
No. of
Shares
AmountAdditional 
Paid-in Capital
Retained
Earnings
Total
Equity
Balance as of January 1, 2020190,118,181 $1,896 $1,570,575 $648,656 $(531,956)$1,689,171 
Transition period adjustment pursuant to ASC 326, net of tax— — — (3,984)— (3,984)
Adjusted balance as of January 1, 2020190,118,181 1,896 1,570,575 644,672 (531,956)1,685,187 
Issuance of common shares on exercise of options (Note 16)542,634 6 10,863 — — 10,869 
Issuance of common shares under the employee stock purchase plan (Note 16)241,953 3 8,389 — — 8,392 
Net settlement on vesting of restricted share units (Note 16)380,625 4 (7,725)— — (7,721)
Net settlement on vesting of performance units (Note 16)902,532 9 (25,836)— — (25,827)
Stock repurchased and retired (Note 17)(1,781,978)(18)— (73,534)— (73,552)
Expenses related to stock purchase (Note 17)— — — (36)— (36)
Stock-based compensation expense (Note 16)— — 55,818 — — 55,818 
Comprehensive income (loss):
Net income (loss)— — — 233,294 — 233,294 
Other comprehensive income (loss)— — — — (53,469)(53,469)
Dividend ($0.2925 per common share,
Note 17)
— — — (55,775)— (55,775)
Balance as of September 30, 2020190,403,947 $1,900 $1,612,084 $748,621 $(585,425)$1,777,180 
 
 
See accompanying notes to the Consolidated Financial Statements.
7


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Equity
For the three months ended September 30, 2021
(Unaudited)
(In thousands, except share count)
 
Common sharesAccumulated Other
Comprehensive
Income (Loss)
No. of
Shares
AmountAdditional 
Paid-in Capital
Retained
Earnings
Total
Equity
Balance as of July 1, 2021187,350,298 $1,869 $1,657,756 $748,199 $(568,855)$1,838,969 
Issuance of common shares on exercise of options (Note 16)511,813 5 11,732 — — 11,737 
Issuance of common shares under the employee stock purchase plan (Note 16)60,374 1 2,818 — — 2,819 
Net settlement on vesting of restricted share units (Note 16)134,086 1 (3,535)— — (3,534)
Net settlement on vesting of performance units (Note 16)— — — — — — 
Stock repurchased and retired (Note 17)  —  —  
Expenses related to stock purchase (Note 17)— — —  —  
Stock-based compensation expense (Note 16)— — 21,485 — — 21,485 
Others— — (6)— — (6)
Comprehensive income (loss):
Net income (loss)— — — 102,386 — 102,386 
Other comprehensive income (loss)— — — — (757)(757)
Dividend ($0.1075 per common share, Note 17)
— — — (20,213)— (20,213)
Balance as of September 30, 2021188,056,571 $1,876 $1,690,250 $830,372 $(569,612)$1,952,886 
 
See accompanying notes to the Consolidated Financial Statements.
8


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Equity
For the nine months ended September 30, 2021
(Unaudited)
(In thousands, except share count)
 
 
Common sharesAccumulated Other
Comprehensive
Income (Loss)
No. of
Shares
AmountAdditional 
Paid-in Capital
Retained
Earnings
Total
Equity
Balance as of January 1, 2021189,045,661 $1,885 $1,636,026 $741,658 $(545,340)$1,834,229 
Issuance of common shares on exercise of options (Note 16)1,020,125 11 20,902 — — 20,913 
Issuance of common shares under the employee stock purchase plan (Note 16)216,378 2 8,871 — — 8,873 
Net settlement on vesting of restricted share units (Note 16)264,376 3 (5,845)— — (5,842)
Net settlement on vesting of performance units (Note 16)1,102,440 11 (28,302)— — (28,291)
Stock repurchased and retired (Note 17)(3,592,409)(36)— (147,116)— (147,152)
Expense related to stock purchase (Note 17)— — — (72)— (72)
Stock-based compensation expense (Note 16)— — 58,604 — — 58,604 
Others— (6)(6)
Comprehensive income (loss):
Net income (loss)— — — 296,363 — 296,363 
Other comprehensive income (loss)— — — — (24,272)(24,272)
Dividend ($0.3225 per common share, Note 17)
— — — (60,461)— (60,461)
Balance as of September 30, 2021188,056,571 $1,876 $1,690,250 $830,372 $(569,612)$1,952,886 
 
See accompanying notes to the Consolidated Financial Statements.
9


GENPACT LIMITED AND ITS SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Nine months ended September 30,
20202021
Operating activities
Net income$233,294 $296,363 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization88,273 82,344 
Amortization of debt issuance costs1,685 1,969 
Amortization of acquired intangible assets31,673 44,624 
Write-down of intangible assets and property, plant and equipment10,647 915 
Allowance for credit losses3,226 2,412 
Unrealized loss (gain) on revaluation of foreign currency asset/liability6,164 (4,252)
Stock-based compensation expense55,818 58,604 
Deferred tax benefit(9,287)(6,236)
Write-down of operating lease right-of-use assets and other assets10,244  
Others, net(1,131)806 
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable49,299 (78,626)
(Increase) decrease in prepaid expenses, other current assets, contract cost assets, operating lease right-of-use assets and other assets(148,909)43,071 
Increase (decrease) in accounts payable(2,646)11,138 
Increase (decrease) in accrued expenses, other current liabilities, operating lease liabilities and other liabilities44,830 (74,085)
Increase in income taxes payable52,033 68,430 
Net cash provided by operating activities$425,213 $447,477 
Investing activities
Purchase of property, plant and equipment(47,932)(31,385)
Payment for internally generated intangible assets (including intangibles under development)(8,391)(3,907)
Proceeds and recovery from sale of property, plant and equipment and intangible assets447 4,511 
Payment for business acquisitions, net of cash acquired (6,613)
Proceed from sale of investment  142 
Net cash (used for) investing activities$(55,876)$(37,252)
Financing activities
Repayment of finance lease obligations(7,240)(8,659)
Payment of debt issuance costs(620)(3,018)
Proceeds from long-term debt 350,000 
Repayment of long-term debt(25,500)(25,500)
Proceeds from short-term borrowings455,000  
Repayment of short-term borrowings(280,000)(250,000)
Proceeds from issuance of common shares under stock-based compensation plans 19,261 29,786 
Payment for net settlement of stock-based awards(33,157)(33,467)
Payment of earn-out consideration (2,556)
Dividend paid(55,775)(60,461)
Payment for stock repurchased and retired (including expenses related to stock repurchase)(73,588)(147,224)
Others (6)
Net cash (used for) financing activities$(1,619)$(151,105)
Effect of exchange rate changes (31,415)(17,085)
Net increase in cash and cash equivalents367,718 259,120 
Cash and cash equivalents at the beginning of the period467,096 680,440 
Cash and cash equivalents at the end of the period$803,399 $922,475 
Supplementary information
Cash paid during the period for interest$28,160 $25,715 
Cash paid during the period for income taxes, net of refund$131,456 $38,040 
 See accompanying notes to the Consolidated Financial Statements.
10


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

1. Organization

The Company is a global professional services firm that drives digitally-led innovation and runs digitally-enabled intelligent operations for its clients, guided by its experience running thousands of processes for hundreds of Fortune Global 500 clients.  The Company has approximately 105,400 employees serving clients in key industry verticals from more than 30 countries. 

2. Summary of significant accounting policies
 
(a) Basis of preparation and principles of consolidation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, they do not include certain information and note disclosures required by generally accepted accounting principles for annual financial reporting and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The accompanying consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods.
The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of Genpact Limited, a Bermuda company, and all of its subsidiaries that are more than 50% owned and controlled. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation.
 
(b) Use of estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangible assets and goodwill, revenue recognition, allowance for credit losses, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, the measurement of lease liabilities and right-of-use (“ROU”) assets, measurements of stock-based compensation, assets and obligations related to employee benefits, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, variable consideration, other obligations for revenue recognition, income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable, and management has made assumptions about the possible effects of the ongoing COVID-19 pandemic on critical and significant accounting estimates. Although these estimates and assumptions are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

(c) Business combinations, goodwill and other intangible assets

The Company accounts for its business combinations using the acquisition method of accounting in accordance with Accounting Standard Codification (“ASC”) Topic 805, Business Combinations, by recognizing the identifiable tangible and intangible assets acquired and liabilities assumed, and any non-controlling interest in the acquired business, measured at their acquisition date fair values. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is re-measured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. All assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition-related costs are expensed as incurred under selling, general and administrative expenses.

11


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

2. Summary of significant accounting policies (Continued)

Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures.
 
Intangible assets acquired individually or with a group of other assets or in a business combination and developed internally are carried at cost less accumulated amortization and accumulated impairment loss based on their estimated useful lives as follows:
 
Customer-related intangible assets1-11 years
Marketing-related intangible assets1-10 years
Technology-related intangible assets2-8 years

Intangible assets are amortized over their estimated useful lives using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized.
In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the consolidated statements of income.
The Company also capitalizes certain software and technology-related development costs incurred in connection with developing or obtaining software or technology for sale/lease to customers when the initial design phase is completed and commercial and technological feasibility has been established. Any development cost incurred before technological feasibility is established is expensed as incurred as research and development costs. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Capitalized software and technology costs include only (i) external direct costs of materials and services utilized in developing or obtaining software and technology and (ii) compensation and related benefits for employees who are directly associated with the project.
Costs incurred in connection with developing or obtaining software or technology for sale/lease to customers which are under development and not put to use are disclosed under “intangible assets under development.” Advances paid towards the acquisition of intangible assets outstanding as of each balance sheet date are disclosed under “intangible assets under development.”
Capitalized software and technology costs are included in intangible assets under technology-related intangible assets on the Company’s balance sheet and are amortized on a straight-line basis when placed into service over the estimated useful lives of the software and technology.
The Company evaluates the remaining useful life of intangible assets that are being amortized at each reporting period wherever events and circumstances warrant a revision to the remaining period of amortization, and the remaining carrying amount of the intangible asset is amortized prospectively over that revised remaining useful life.
12


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

2. Summary of significant accounting policies (Continued)

(d) Financial instruments and concentration of credit risk

Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its customers. The General Electric Company (“GE”) accounted for 16% and 10% of the Company’s receivables as of December 31, 2020 and September 30, 2021, respectively. GE accounted for 12% and 13% of the Company’s revenues for the three and nine months ended September 30, 2020, respectively and 9% and 10% of the Company’s revenues for the three and nine months ended September 30, 2021, respectively.
 
(e) Accounts receivable

Accounts receivable are recorded at the invoiced or to be invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for current expected credit losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses which are adjusted to current market conditions and a reasonable and supportable forecast. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers.
 
(f) Revenue Recognition

The Company derives its revenue primarily from business process management services, including analytics, consulting and related digital solutions and information technology services, which are provided primarily on a time-and-material, transaction or fixed-price basis. The Company recognizes revenue upon the transfer of control of promised services to its customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. Revenues from services rendered under time-and-materials and transaction-based contracts are recognized as the services are provided. The Company’s fixed-price contracts include contracts for customization of applications, maintenance and support services. Revenues from these contracts are recognized ratably over the term of the agreement. The Company accrues for revenue and unbilled receivables for services rendered between the last billing date and the balance sheet date.
 
The Company’s contracts with its customers also include incentive payments received for discrete benefits delivered or promised to be delivered to the customer or service level agreements that could result in credits or refunds to the customer. Revenues relating to such arrangements are accounted for as variable consideration when the amount of revenue to be recognized can be estimated to the extent that it is probable that a significant reversal of any incremental revenue will not occur.
 
The Company records deferred revenue attributable to certain process transition activities where such activities do not represent separate performance obligations. Revenues relating to such transition activities are classified under contract liabilities and subsequently recognized ratably over the period in which the related services are performed. Costs relating to such transition activities are fulfillment costs which are directly related to the contract and result in the generation or enhancement of resources. Such costs are expected to be recoverable under the contract and are therefore classified as contract cost assets and recognized ratably over the estimated expected period of benefit under cost of revenue.
 
Revenues are reported net of value-added tax, business tax and applicable discounts and allowances. Reimbursements of out-of-pocket expenses received from customers have been included as part of revenues.
13


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

2. Summary of significant accounting policies (Continued)

Revenue for performance obligations that are satisfied over time is recognized in accordance with the methods prescribed for measuring progress. The input (cost expended) method has been used to measure progress towards completion as there is a direct relationship between input and the satisfaction of a performance obligation. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates.
 
The Company enters into multiple-element revenue arrangements in which a customer may purchase a combination of products or services. The Company determines whether each product or service promised to a customer is capable of being distinct, and is distinct in the context of the contract. If not, the promised products or services are combined and accounted for as a single performance obligation. In the event of a multiple-element revenue arrangement, the Company allocates the arrangement consideration to separately identifiable performance obligations based on their relative stand-alone selling prices.
 
Certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription-based. Revenue from distinct perpetual licenses is recognized upfront at the point in time when the software is made available to the customer. Revenue from distinct, non-cancellable, subscription-based licenses is recognized at the point in time it is transferred to the customer. Revenue from any associated maintenance or ongoing support services is recognized ratably over the term of the contract. For a combined software license/services performance obligation, revenue is recognized over the period that the services are performed.
 
All incremental and direct costs incurred for acquiring contracts, such as certain sales commissions, are classified as contract cost assets. Such costs are amortized over the expected period of benefit and recorded under selling, general and administrative expenses.
 
Other upfront fees paid to customers are classified as contract assets. Such fees are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and deducted from revenue.
 
Timing of revenue recognition may differ from the timing of invoicing. If a payment is received in respect of services prior to the delivery of services, the payment is recognized as an advance from the customer and classified as a contract liability. Contract assets and contract liabilities relating to the same customer contract are offset against each other and presented on a net basis in the consolidated financial statements.
 
Significant judgements

The Company often enters into contracts with its customers that include promises to transfer multiple products and services to the customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately rather than together may require significant judgement.
 
Judgement is also required to determine the standalone selling price for each distinct performance obligation. In instances where the standalone selling price is not directly observable, it is determined using information that may include market conditions and other observable inputs.
 
Customer contracts sometimes include incentive payments received for discrete benefits delivered to the customer or service level agreements that could result in credits or refunds to the customer. Such amounts are estimated at contract inception and are adjusted at the end of each reporting period as additional information becomes available only to the extent that it is probable that a significant reversal of any incremental revenue will not occur.

(g) Leases

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based on whether: (1) the contract involves the use of a distinct identified asset, (2) the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term of the contract, and (3) the Company has the right to direct the use of the asset. At the inception of a lease, the consideration in the contract is allocated to each lease component based on its relative standalone price to determine the lease payments.
14


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

2. Summary of significant accounting policies (Continued)

Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: (1) the lease transfers ownership of the asset by the end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the lease term is for a major part of the remaining useful life of the asset or (4) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. A lease is classified as an operating lease if it does not meet any one of the above criteria.
 
For all leases at the lease commencement date, a ROU asset and a lease liability are recognized. The lease liability represents the present value of the lease payments under the lease. Lease liabilities are initially measured at the present value of the lease payments not yet paid, discounted using the discount rate for the lease at the lease commencement. The lease liabilities are subsequently measured on an amortized cost basis. The lease liability is adjusted to reflect interest on the liability and the lease payments made during the period. Interest on the lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability.
 
The ROU asset represents the right to use the leased asset for the lease term. The ROU asset for each lease initially includes the amount of the initial measurement of the lease liability adjusted for any lease payments made to the lessor at or before the commencement date, accrued lease liabilities and any lease incentives received or any initial direct costs incurred by the Company.
 
The ROU asset of finance leases is subsequently measured at cost, less accumulated amortization and any accumulated impairment losses. The ROU asset of operating leases is subsequently measured from the carrying amount of the lease liability at the end of each reporting period, and is equal to the carrying amount of lease liabilities adjusted for (1) unamortized initial direct costs, (2) prepaid/(accrued) lease payments and (3) the unamortized balance of lease incentives received.

The carrying value of ROU assets is reviewed for impairment, similar to long-lived assets, whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.
 
The Company has elected to not separate lease and non-lease components for all of its leases and to use the recognition exemptions for lease contracts that, at commencement date, have a lease term of 12 months or less and do not contain a purchase option (“short-term leases”). 
 
Significant judgements
 
The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.
 
Under certain of its leases, the Company has a renewal and termination option to lease assets for additional terms between one and ten years. The Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew or terminate the lease. The Company considers all relevant factors that create an economic incentive for it to exercise the renewal or termination option. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within the Company’s control and affects its ability to exercise (or not to exercise) the option to renew or terminate.

The Company has applied an incremental borrowing rate for the purpose of computing lease liabilities based on the remaining lease term and the rates prevailing in the jurisdictions where leases were executed.

(h) Cost of revenue

Cost of revenue primarily consists of salaries and benefits (including stock-based compensation), recruitment, training and related costs of employees who are directly responsible for the performance of services for customers, their supervisors and certain support personnel who may be dedicated to a particular client or a set of processes.

15


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

2. Summary of significant accounting policies (Continued)

It also includes operational expenses, which consist of facilities maintenance expenses, travel and living expenses, rent, IT expenses, and consulting and certain other expenses. Consulting charges represent the cost of consultants and contract resources with specialized skills who are directly responsible for the performance of services for clients and travel and other billable costs related to the Company’s clients. It also includes depreciation of property, plant and equipment, and amortization of intangible and ROU assets which are directly related to providing services that generate revenue.
 
(i) Selling, general and administrative expenses
 
Selling, general and administrative (“SG&A”) expenses consist of expenses relating to salaries and benefits (including stock-based compensation) as well as costs related to recruitment, training and retention of senior management and other support personnel in enabling functions such as human resources, finance, legal, marketing, sales and sales support, and other support personnel. The operational costs component of SG&A expenses also includes travel and living costs for such personnel. SG&A expenses also include acquisition-related costs, legal and professional fees (which represent the costs of third party legal, tax, accounting and other advisors), investment in research and development, digital technology, advanced automation and robotics, and an allowance for credit losses. It also includes depreciation of property, plant and equipment, and amortization of intangibles and ROU assets other than those included in cost of revenue.
 
(j) Credit losses

Allowance for credit losses is recognized for all debt instruments other than those held at fair value through profit or loss. The Company pools its accounts receivable (other than deferred billings) based on similar risk characteristics in estimating expected credit losses. Credit losses for accounts receivable are based on the roll-rate method, and the Company recognizes a loss allowance based on lifetime expected credit losses at each reporting date. The Company has established a provision matrix based on historical credit loss experience, adjusted for forward-looking factors and the economic environment. The Company believes the most relevant forward-looking factors are economic environment, gross domestic product, inflation rates and unemployment rates for each of the countries in which the Company or its customers operate, and accordingly the Company adjusts historical loss rates based on expected changes in these factors. At every reporting date, observed historical default rates are updated to reflect changes in the Company’s forward-looking estimates.

Credit losses for other financial assets and deferred billings are based on the discounted cash flow (“DCF”) method. Under the DCF method, the allowance for credit losses reflects the difference between the contractual cash flows due in accordance with the contract and the present value of the cash flows expected to be collected. The expected cash flows are discounted at the effective interest rate of the financial asset. Such allowances are based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments based on the Company’s expectation as of the balance sheet date.

A financial asset is written off when it is deemed uncollectible and there is no reasonable expectation of recovering the contractual cash flows. Expected recoveries of amounts previously written off, not to exceed the aggregate amounts previously written off, are included in determining the allowance at each reporting period.

Credit losses are presented as a credit loss expense within “Selling, general and administrative expenses.” Subsequent recoveries of amounts previously written off are credited against the same line item.

(k) Reclassification

Certain reclassifications have been made in the consolidated financial statements of prior periods to conform to the classification used in the current period. The impact of such reclassifications on the consolidated financial statements is not material.
16


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

2. Summary of significant accounting policies (Continued)

(l) Impairment of long-lived assets

Long-lived assets, including certain intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated by the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach.

(m) Recently issued accounting pronouncements

The authoritative bodies release standards and guidance which are assessed by management for impact on the Company’s consolidated financial statements.

The Company has adopted the following recently released accounting standards:

In June 2016, the FASB issued ASU No. 2016-13, “Measurement of credit losses on financial instruments.” The ASU requires measurement and recognition of expected credit losses for financial assets held by the Company. The ASU requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings. The ASU became effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020.

In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments—Credit Losses (Topic 326).” The ASU provides final guidance that allows entities to make an irrevocable one-time election upon adoption of the new credit losses standard to measure financial assets at amortized cost (except held-to-maturity securities) using the fair value option. The ASU became effective for the Company beginning January 1, 2020, including interim periods in fiscal year 2020.

In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses.” This ASU clarifies that the scope of the guidance related to expected recoveries extends to purchased financial assets with credit deterioration. For entities that have not yet adopted ASU 2016-13, the amendments in ASU 2019-11 are effective on the same date as those in ASU 2016-13. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-11 are effective for fiscal years beginning January 1, 2020 and interim periods therein.

The Company adopted ASU 2016-13, ASU 2019-05 and ASU 2019-11 beginning January 1, 2020, including interim periods in fiscal year 2020.

In October 2020, the FASB issued ASU No. 2020-09, “Codification Improvements to Topic 470, Debt— Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762.” The SEC in its Release No. 33-10762 in March 2020 has adopted new rules on financial disclosure requirements for guarantors and issuers of guaranteed securities and affiliates whose securities collateralize issuers’ securities. This ASU revises certain SEC paragraphs of the FASB’s Accounting Standards Codification (ASC) to reflect, as appropriate, the amended financial statement disclosure requirements in SEC Release 33-10762. The amended rules were effective January 4, 2021 but early compliance was permitted. The Company adopted the amended rules issued by the SEC in its Release No. 33-10762 in the first quarter of 2020. Accordingly, the Company has already adopted the amendments under this ASU, and the disclosures related to guarantor financial information have been omitted from the Notes to the Consolidated Financial Statements and included under Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2020.


17


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

3. Business acquisitions

(a) Enquero Inc

On December 31, 2020, the Company acquired 100% of the outstanding equity interests in Enquero Inc, a California corporation, and certain affiliated entities in India, the Netherlands and Canada (collectively referred to as “Enquero”) for total purchase consideration of $148,797. This amount represents cash consideration of $137,166, net of cash acquired of $11,631. The total purchase consideration paid by the Company to the sellers on the closing date was $141,938. No portion of the purchase consideration is outstanding as of September 30, 2021. The Company is evaluating adjustments related to certain income and other taxes, which, when determined, may result in the recognition of additional assets or liabilities as of the acquisition date. The measurement period will not exceed one year from the acquisition date. This acquisition increased the scale and depth of the Company’s data and analytics capabilities and enhanced the Company’s ability to accelerate the digital transformation journeys of its clients through cloud technologies and advanced data analytics.

In connection with this acquisition, the Company recorded $49,000 in customer-related intangibles, $9,500 in marketing-related intangibles and $1,400 in technology-related intangibles, which have a weighted average amortization period of four years. Goodwill arising from the acquisition amounting to $86,561 has been allocated using a relative fair value allocation method to each of the Company’s reporting segments as follows: to the Banking, Capital Markets and Insurance (“BCMI”) segment in the amount of $2,556, to the Consumer Goods, Retail, Life Sciences and Healthcare (“CGRLH”) segment in the amount of $22,211 and to the High Tech, Manufacturing and Services (“HMS”) segment in the amount of $61,794. The goodwill arising from this acquisition is not deductible for income tax purposes. The goodwill represents primarily the acquired capabilities and other benefits expected to result from combining the acquired operations with the Company’s existing operations.

Acquisition-related costs of $1,590 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $32,759, assumed certain liabilities amounting to $17,113 and recognized a net deferred tax liability of $13,310. The agreement with the sellers provides a full indemnity to the Company for all pre-closing income and non-income tax liabilities up to a maximum of the purchase consideration, including interest and penalties thereon. The Company would not be financially or materially affected by any liabilities that may arise from such exposures.

Accordingly, the Company recognized an indemnification asset of $5,848 based on the information that was available at the date of the acquisition, which is included in the assets taken over by the Company. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition.

(b) SomethingDigital.Com LLC

On October 5, 2020, the Company acquired 100% of the outstanding equity/limited liability company interests in SomethingDigital.Com LLC, a New York limited liability company, for total purchase consideration of $57,451. This amount represents cash consideration of $56,073, net of cash acquired of $1,378. The total purchase consideration paid by the Company to the sellers on the closing date was $57,704, resulting in a recoverable of $253, which was received in the three months ended March 31, 2021. This acquisition supported the Company’s strategy to integrate experience and process innovation to help clients on their digital transformation journeys and expanded on the Company’s existing experience capabilities to support end-to-end digital commerce solutions, both business-to-business and business-to-consumer. Additionally, this acquisition expanded the Company’s capabilities into Magento Commerce, which powers Adobe Commerce Cloud, and Shopify Plus, a cloud-based ecommerce platform for high volume merchants.

In connection with this acquisition, the Company recorded $11,900 in customer-related intangibles and $3,500 in marketing-related intangibles which have a weighted average amortization period of four years. Goodwill arising from the acquisition amounting to $36,926 has been allocated using a relative fair value allocation method to two of the Company’s reporting segments as follows: to the CGRLH segment in the amount of $30,373 and to the HMS segment in the amount of $6,553. Of the total goodwill arising from this acquisition, $35,084 is deductible for income tax purposes.

The goodwill represents primarily the acquired capabilities and other benefits expected to result from combining the acquired operations with those of the Company’s existing operations.

18


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

3. Business acquisitions (Continued)

Acquisition-related costs of $1,060 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $9,538, assumed certain liabilities amounting to $4,494 and recognized a net deferred tax asset of $81. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition.

(c) Rightpoint Consulting, LLC
 
On November 12, 2019, the Company acquired 100% of the outstanding equity/limited liability company interests in Rightpoint Consulting, LLC, an Illinois limited liability company, and certain affiliated entities in the United States and India (collectively referred to as “Rightpoint”) for total purchase consideration of $270,669. This amount includes cash consideration of $268,170, net of cash acquired of $2,499. The total purchase consideration paid by the Company to the sellers on the closing date was $248,470 resulting in a payable of $22,199. $5,166 of the total purchase consideration remains payable as of September 30, 2021. This acquisition expanded the Company’s capabilities in improving customer experience.

The securities purchase agreement between the Company and the selling equity holders of Rightpoint provided certain of the selling equity holders the option to elect to either (a) receive 100% consideration in cash at the closing date for their limited liability company interests and vested options or (b) “roll over” and retain 25% of their Rightpoint limited liability company interests and vested options for a three-year rollover period and receive cash consideration at closing for the remaining 75% of their Rightpoint limited liability company interests and vested options. Certain selling equity holders elected to receive deferred, variable earn-out consideration with an estimated value of $21,500 over the rollover period of three years.

The amount of deferred earn-out consideration ultimately payable by the Company to the selling equity holders of Rightpoint will be based on the future revenue multiple of the acquired business. Additionally, under the purchase agreement the selling equity holders are obligated to sell their rollover interests to the Company. Accordingly, the Company has obtained control over 100% of the outstanding equity/limited liability company interests of Rightpoint as of November 12, 2019. See Note 6, “Fair value measurements,” for additional details.

In connection with this acquisition, the Company recorded $46,000 in customer-related intangibles and $29,000 in marketing-related intangibles which have a weighted average amortization period of five years. Goodwill arising from the acquisition amounting to $177,181 has been allocated using a relative fair value allocation method to each of the Company’s reporting segments as follows: to the BCMI segment in the amount of $16,983, to the CGRLH segment in the amount of $42,993 and to the HMS segment in the amount of $117,205. Of the total goodwill arising from this acquisition, $91,929 is deductible for income tax purposes. The goodwill represents primarily the acquired capabilities and other benefits expected to result from combining the acquired operations with those of the Company.
 
Acquisition-related costs of $7,385 have been included in selling, general and administrative expenses as incurred. In connection with the transaction, the Company also acquired certain assets with a value of $39,140, assumed certain liabilities amounting to $22,295 and recognized a net deferred tax liability of $1,643. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition.

4. Cash and cash equivalents
 
As of December 31, 2020As of September 30, 2021
Cash and other bank balances680,440 922,475 
Total$680,440 $922,475 
 
19


GENPACT LIMITED AND ITS SUBSIDIARIES
Notes to the Consolidated Financial Statements
(Unaudited)
(In thousands, except per share data and share count)

5. Accounts receivable, net of allowance for credit losses
 
Accounts receivable were $908,727 and $980,698 and allowance for credit losses were $27,707 and $29,527, resulting in net accounts receivable balances of $881,020 and $951,171 as of December 31, 2020 and September 30, 2021, respectively.
The following table provides details of the Company’s allowance for credit losses on accounts receivable:
 
Year ended December 31, 2020 Nine months ended September 30, 2021
Opening balance as of January 1$29,969 $27,707 
Transition period adjustment on accounts receivables (through retained earnings) pursuant to adoption of ASC 3264,185 — 
Adjusted balance as of January 1$34,154 $27,707 
Additions due to acquisitions200  
Additions charged/reversal released to cost and expense3,307 2,953 
Deductions/effect of exchange rate fluctuations(9,954)(