10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period ended June 30, 2016

Or

o 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)

Bermuda	98-0533350
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Canon’s Court

22 Victoria Street

Hamilton HM12

Bermuda

(441) 295-2244

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive office)

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  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

The number of the registrant’s common shares, par value $0.01 per share, outstanding as of July 29, 2016 was 207,294,663.

TABLE OF CONTENTS

	Item No.			Page No.
PART I			Financial Statements
	1.		Unaudited Consolidated Financial Statements
			Consolidated Balance Sheets as of December 31, 2015 and June 30, 2016	1
			Consolidated Statements of Income for the three months and six months ended June 30, 2015 and 2016	2
			Consolidated Statements of Comprehensive Income (Loss) for the three months and six months ended June 30, 2015 and 2016	3
			Consolidated Statements of Equity for the six months ended June 30, 2015 and Consolidated Statements of Equity and Redeemable Non-controlling Interest for the six months ended June 30, 2016	4
			Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2016	6
			Notes to the Consolidated Financial Statements	7
	2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
	3.		Quantitative and Qualitative Disclosures About Market Risk	47
	4.		Controls and Procedures	47
PART II			Other Information
	1.		Legal Proceedings	49
	1A.		Risk Factors	49
	2.		Unregistered Sales of Equity Securities and Use of Proceeds	49
	3.		Defaults upon Senior Securities	49
	5.		Other Information	49
	6.		Exhibits	49
		SIGNATURES		51

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

(In thousands, except per share data and share count)

	Notes		Asof December 31, 2015			As of June 30, 2016
Assets
Current assets
Cash and cash equivalents		4	$	450,907		$	407,260
Accounts receivable, net		5		590,137			598,228
Prepaid expenses and other current assets		8		154,025			196,841
Total current assets			$	1,195,069		$	1,202,329
Property, plant and equipment, net		9		175,396			185,643
Deferred tax assets		23		99,395			80,114
Investment in equity affiliates		24		6,677			6,230
Intangible assets, net		10		98,601			84,421
Goodwill		10		1,038,346			1,055,968
Other assets				180,005			219,810
Total assets			$	2,793,489		$	2,834,515
Liabilities and equity
Current liabilities
Short-term borrowings		11	$	21,500		$	60,000
Current portion of long-term debt		12		39,134			39,158
Accounts payable				10,086			12,373
Income taxes payable		23		24,122			43,911
Accrued expenses and other current liabilities		13		499,638			417,304
Total current liabilities			$	594,480		$	572,746
Long-term debt, less current portion		12		737,332			717,745
Deferred tax liabilities		23		2,093			2,840
Other liabilities		14		155,228			186,342
Total liabilities			$	1,489,133		$	1,479,673
Redeemable non-controlling interest				—			2,778
Shareholders' equity
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued				—			—
Common shares, $0.01 par value, 500,000,000 authorized, 211,472,312 and    208,953,289 issued and outstanding as of December 31, 2015 and June 30,    2016, respectively				2,111			2,086
Additional paid-in capital				1,342,022			1,373,679
Retained earnings				411,508			448,867
Accumulated other comprehensive income (loss)				(451,285	)		(472,568	)
Total equity			$	1,304,356		$	1,352,064
Commitments and contingencies		25
Total liabilities, redeemable non-controlling interest and equity			$	2,793,489		$	2,834,515

See accompanying notes to the Consolidated Financial Statements.

1

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data and share count)

			Three months ended June 30,						Six months ended June 30,
	Notes		2015			2016			2015			2016
Net revenues			$	609,532		$	630,523		$	1,196,685		$	1,240,226
Cost of revenue	19, 24			366,304			383,755			723,780			756,603
Gross profit			$	243,228		$	246,768		$	472,905		$	483,623
Operating expenses:
Selling, general and administrative expenses	20, 24			149,230			165,197			297,978			325,346
Amortization of acquired intangible assets		10		7,315			6,493			14,656			12,638
Other operating (income) expense, net		21		(2,670	)		(4,862	)		(3,132	)		(9,923	)
Income from operations			$	89,353		$	79,940		$	163,403		$	155,562
Foreign exchange gains (losses), net				7,433			4,808			(112	)		3,810
Interest income (expense), net		22		(17,352	)		(3,433	)		(26,377	)		(6,271	)
Other income (expense), net				811			503			1,269			1,381
Income before equity-method investment activity, net    and income tax expense			$	80,245		$	81,818		$	138,183		$	154,482
Gain (loss) on equity-method investment activity, net				(2,340	)		(2,074	)		(4,563	)		(4,219	)
Income before income tax expense			$	77,905		$	79,744		$	133,620		$	150,263
Income tax expense		23		15,204			15,395			26,266			27,638
Net income			$	62,701		$	64,349		$	107,354		$	122,625
Net loss (income) attributable to redeemable non-controlling interest				—			882			—			1,171
Net income attributable to Genpact Limited    shareholders			$	62,701		$	65,231		$	107,354		$	123,796
Net income available to Genpact Limited common    shareholders		18	$	62,701		$	65,231		$	107,354		$	123,796
Earnings per common share attributable to Genpact    Limited common shareholders		18
Basic			$	0.29		$	0.31		$	0.49		$	0.59
Diluted			$	0.28		$	0.31		$	0.48		$	0.58
Weighted average number of common shares used in    computing earnings per common share attributable to    Genpact Limited common shareholders
Basic				218,525,149			210,178,050			219,208,922			210,479,108
Diluted				220,962,306			213,803,134			221,654,703			213,848,050

See accompanying notes to the Consolidated Financial Statements.

2

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(In thousands, except per share data and share count)

	Three months ended June 30,											Six months ended June 30,
	2015					2016						2015					2016
	Genpact Limited Shareholders			Redeemable Non- controlling interest		Genpact Limited Shareholders			Redeemable Non- controlling interest			Genpact Limited Shareholders			Redeemable Non- controlling interest		Genpact Limited Shareholders			Redeemable Non- controlling interest
Net Income (loss)	$	62,701		$	—	$	65,231		$	(882	)	$	107,354		$	—	$	123,796		$	(1,171	)
Other comprehensive income:
Currency translation adjustments		(9,491	)		—		(25,055	)		39			(20,670	)		—		(19,838	)		39
Net income (loss) on cash flow    hedging derivatives, net of taxes    (Note7)		(10,173	)		—		(3,555	)		—			11,660			—		(1,585	)		—
Retirement benefits, net of taxes		(174	)		—		(13	)		—			112			—		140			—
Other comprehensive income    (loss)	$	(19,838	)	$	-	$	(28,623	)	$	39		$	(8,898	)	$	—	$	(21,283	)	$	39
Comprehensive income (loss)	$	42,863		$	-	$	36,608		$	(843	)	$	98,456		$	—	$	102,513		$	(1,132	)

See accompanying notes to the Consolidated Financial Statements.

3

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Equity

(Unaudited)

(In thousands, except share count)

	Common shares												Accumulated Other
	No. of Shares			Amount			Additional Paid- in Capital			Retained Earnings			Comprehensive Income (Loss)			Total Equity
Balance as of January 1, 2015		218,684,205		$	2,184		$	1,296,730		$	398,706		$	(412,484	)	$	1,285,136
Issuance of common shares on exercise of options    (Note 16)		728,948			7			6,193			—			—			6,200
Issuance of common shares under the employee    stock purchase plan (Note 16)		65,055			1			1,308			—			—			1,309
Net settlement on vesting of restricted share units    (Note 16)		136,922			1			(1,007	)		—			—			(1,006	)
Net settlement on vesting of performance    units (Note 16)		846,114			8			(8	)		—			—			—
Stock repurchased and retired    (Note17)		(3,628,449	)		(36	)		—			(81,363	)		—			(81,399	)
Expenses related to stock purchase (Note 17)		—			—			—			(73	)		—			(73	)
Stock-based compensation expense (Note 16)		—			—			11,314			—			—			11,314
Comprehensive income:
Net income		—			—			—			107,354			—			107,354
Other comprehensive income		—			—			—			—			(8,898	)		(8,898	)
Balance as of June 30, 2015		216,832,795		$	2,165		$	1,314,530		$	424,624		$	(421,382	)	$	1,319,937

See accompanying notes to the Consolidated Financial Statements.

4

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Equity and Redeemable Noncontrolling Interest

(Unaudited)

(In thousands, except share count)

	Common shares												Accumulated Other						Redeemable
	No. of Shares			Amount			Additional Paid- in Capital			Retained Earnings			Comprehensive Income (Loss)			Total Equity			non-controlling interest
Balance as of January 1, 2016	$	211,472,312		$	2,111		$	1,342,022		$	411,508		$	(451,285	)	$	1,304,356		$	—
Issuance of common shares on    exercise of options (Note 16)		631,422			6			10,051			—		-				10,057			—
Issuance of common shares under the    employee stock purchase plan    (Note 16)		60,636			1			1,489			—			—			1,490			—
Net settlement on vesting of    restricted share units (Note 16)		102,954			1			(98	)		—			-			(97	)		—
Stock repurchased and retired    (Note17)		(3,314,035	)		(33	)		—			(86,371	)		-			(86,404	)		—
Excess tax benefit on stock-based    compensation		—			—			6,699			—			—			6,699			—
Expenses related to stock purchase    (Note 17)		—			—			—			(66	)		—			(66	)		—
Stock-based compensation expense    (Note 16)		—			—			13,516			—			—			13,516			—
Acquisition of redeemable non    controlling interest		—			—			—			—			—			—			3,910
Comprehensive income:
Net income		—			—			—			123,796			—			123,796			(1,171	)
Other comprehensive income		—			—			—			—			(21,283	)		(21,283	)		39
Balance as of  June 30, 2016		208,953,289		$	2,086		$	1,373,679		$	448,867		$	(472,568	)	$	1,352,064		$	2,778

See accompanying notes to the Consolidated Financial Statements.

5

GENPACT LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

	Six months ended June 30,
		2015			2016
Operating activities
Net income attributable to Genpact Limited shareholders	$	107,354		$	123,796
Net income (loss) attributable to redeemable non-controlling interest		-			(1,171	)
Net income	$	107,354		$	122,625
Adjustments to reconcile net income to net cash provided by  (used for) operating activities:
Depreciation and amortization		26,811			26,997
Amortization of debt issuance costs (including loss on extinguishment of debt)		12,759			767
Amortization of acquired intangible assets		14,656			12,638
Intangible assets write-down		-			5,814
Reserve for doubtful receivables		1,266			4,467
Unrealized loss on revaluation of foreign currency asset/liability		3,397			2,055
Equity-method investment activity, net		4,563			4,219
Excess tax benefit on stock-based compensation		-			(6,699	)
Stock-based compensation expense		11,314			13,516
Deferred income taxes		(8,242	)		17,870
Others, net		(87	)		54
Change in operating assets and liabilities:
Increase in accounts receivable		(34,451	)		(15,137	)
Increase in prepaid expenses, other current assets and other assets		(32,423	)		(62,414	)
Increase in accounts payable		1,165			2,881
Decrease in accrued expenses, other current liabilities and other liabilities		(27,678	)		(76,806	)
Increase in income taxes payable		34,176			26,341
Net cash provided by operating activities	$	114,580		$	79,188
Investing activities
Purchase of property, plant and equipment		(30,172	)		(46,595	)
Proceeds from sale of property, plant and equipment		784			236
Investment in equity affiliates		(9,924	)		(5,283	)
Payment for business acquisitions, net of cash acquired		(17,718	)		(11,633	)
Net cash used for investing activities	$	(57,030	)	$	(63,275	)
Financing activities
Repayment of capital lease obligations		(1,091	)		(903	)
Payment of debt issuance and refinancing costs		(6,584	)		—
Proceeds from long term debt		800,000			—
Repayment of long-term debt		(664,875	)		(20,000	)
Proceeds from Short-term borrowings		1,451,500			60,000
Repayment of Short-term borrowings		(1,565,000	)		(21,500	)
Proceeds from issuance of common shares under stock-based compensation plans		7,509			11,547
Payment for net settlement of stock-based awards		(6,532	)		(97	)
Payment of earn-out/deferred consideration		(126	)		(1,132	)
Payment for stock purchased and retired		(81,399	)		(86,404	)
Payment for expenses related to stock purchase		(73	)		(66	)
Excess tax benefit on stock-based compensation		-			6,699
Net cash used for financing activities	$	(66,671	)	$	(51,856	)
Effect of exchange rate changes		(10,912	)		(7,704	)
Net decrease in cash and cash equivalents		(9,121	)		(35,943	)
Cash and cash equivalents at the beginning of the period		461,788			450,907
Cash and cash equivalents at the end of the period	$	441,755		$	407,260
Supplementary information
Cash paid during the period for interest		14,671			9,125
Cash paid during the period for income taxes		24,706			30,269
Property, plant and equipment acquired under capital lease obligations		876			959

See accompanying notes to the Consolidated Financial Statements.

6

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 provider of digitally-powered business process management and services. The architect of the Lean Digital^SM enterprise, the Company uses its patented Smart Enterprise Processes (SEP^SM) framework to reimagine its clients’ operating models end-to-end, including their middle and back offices. This creates Intelligent Operations^SM that the Company helps to design, transform, and run. Today, the Company generates impact for a few hundred strategic clients, including approximately one fifth of the Fortune Global 500, and has grown to over 75,000 people in 25 countries.

Prior to December 30, 2004, the business of the Company was conducted through various entities and divisions of GE. On December 30, 2004, in a series of transactions referred to as the “2004 Reorganization,” GE transferred such operations to the Company. In August 2007, the Company completed an initial public offering of its common shares. On October 25, 2012, Glory Investments A Limited, an affiliate of Bain Capital Investors, LLC (“Bain Capital”), became the Company’s largest shareholder when, together with its affiliated assignees and two additional co-investors, it purchased 67,750,678 common shares of the Company from the Company’s initial private equity investors.

7

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

(a) Basis of preparation and principles of consolidation

The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission 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, 2015.

The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year.

The accompanying unaudited interim consolidated 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 on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation.

Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to non-controlling interest in the consolidated statements of income.

(b) Use of estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

(c) Business combinations, goodwill and other intangible assets

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

8

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 are carried at cost less accumulated amortization based on their estimated useful lives as follows:

Customer-related intangible assets	1-14 years
Marketing-related intangible assets	1-10 years
Other intangible assets	3-9 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.

(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 clients. GE accounted for 18% and 16% of receivables as of December 31, 2015 and June 30, 2016, respectively. GE accounted for 19% and 17% of revenues for the six months and three months ended June 30, 2015 and June 30, 2016, respectively.

(e) Recently adopted accounting pronouncements

The following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures:

Effective January 1, 2016, the Company has adopted FASB ASU 2015-01 (Topic 225): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the financial statements.

9

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)

Effective January 1, 2016, the Company has adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract.

Effective January 1, 2016, the Company has adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.

Effective January 1, 2016, the Company has adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.

10

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. Acquisitions

(a) Endeavour Software Technologies Private Limited

On April 13, 2016, the Company acquired 100% of the outstanding equity interest in Endeavour Software Technologies Private Limited (“Endeavour”), a private limited company incorporated under the laws of India. The preliminary estimated total purchase consideration for Endeavour is $14,443, subject to adjustment for closing date working capital and net debt. This amount includes the estimated fair value of the contingent earn-out consideration and cash consideration of $10,028, net of cash acquired of $2,345, and a preliminary adjustment for working capital and net debt. Of this amount, $639 has been withheld for payment of taxes and $95 is payable to one of the sellers. The purchase agreement also provides for contingent earn-out consideration ranging from $0 to $3,500, payable based on future performance relative to the thresholds specified in the earn-out calculation. This acquisition enhances Genpact’s digital capabilities by adding critical end-to-end mobility services.

In connection with the transaction, the Company recorded $800 in customer-related intangibles, $900 in marketing-related intangibles and $950 in other intangible assets, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $8,870, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes.

Acquisition-related costs of $338 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 $5,691 and assumed certain liabilities amounting to $1,853. 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) Strategic Sourcing Excellence LLC

On January 8, 2016, the Company acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company. The preliminary estimated purchase consideration for SSE is $14,490, subject to adjustment for closing date working capital, transaction expenses and indebtedness. This amount includes the fair value of earn-out consideration, initial cash consideration of $2,550, and a preliminary adjustment for working capital, transaction expenses and indebtedness. The equity purchase agreement also provides for contingent earn-out consideration of up to $20,000, payable based on future performance relative to the thresholds specified in the earn-out calculation. Up to $9,800 of the total potential earn-out consideration, representing the selling equityholders’ 49% interest in SSE, is payable only if either the put or call option, each as described below, is exercised.

The equity purchase agreement grants the Company a call option to purchase the remaining 49% equity interest in SSE, which option the Company has the right to exercise between January 1, 2018 and January 31, 2018. If the Company does not exercise its call option during such period, the selling equityholders have the right to exercise a put option between March 1, 2018 and April 30, 2018 to require the Company to purchase their 49% interest in SSE at a price ranging from $2,450 to $2,950. The equity purchase agreement also provides for contingent earn-out consideration ranging from $0 to $9,800, included as part of overall contingent earn-out consideration and payable only if either the call or put option is exercised. This acquisition strengthens the Company’s sourcing and procurement consulting domain expertise.

Acquisition-related costs of $164 have been included in selling, general and administrative expenses as incurred. Through this transaction, the Company acquired assets with a value of $327 and assumed liabilities amounting to $617. The preliminary estimated purchase consideration for the Company’s interests in SSE is $14,490, including the fair value of earn-out consideration and a preliminary adjustment for working capital, transaction expenses and indebtedness. The results of operations of the acquired business, the fair value of the acquired assets and assumed liabilities, and redeemable non-controlling interest are included in the Company’s Consolidated Financial Statements with effect from the date of the acquisition.

In connection with the transaction, the Company recorded $300 in customer-related intangible assets with an amortization period of five years. Goodwill arising from the acquisition amounted to $14,479, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes.

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

B. Asset held for sale

The Company is in the process of selling its cloud-hosted technology platform for the Indian rural banking sector (the “Business”), which was acquired in 2012.  As of June 30, 2016, net assets relating to the Business amounted to $2,014.

 During the three and six months ended June 30, 2016, net revenues attributable to the Business were $4,234 and $9,162, and net income was $802 and $182, respectively. The operations and net assets of the Business are not significant to the Company’s operations. The Company expects to complete the divestiture of the Business within the next 12 months.

4. Cash and cash equivalents

Cash and cash equivalents as of December 31, 2015 and June 30, 2016 comprise:

	As of December 31,		As of June 30,
	2015		2016
Cash and other bank balances	$	450,907	$	407,260
Total	$	450,907	$	407,260

5. Accounts receivable, net of reserve for doubtful receivables

The following table provides details of the Company’s reserve for doubtful receivables:

	Year ended December 31,			Six months ended
	2015			June 30, 2016
Opening Balance as of January 1	$	15,192		$	11,530
Additions charged to cost and expense		2,449			4,467
Deductions/Effect of exchange rate fluctuations		(6,111	)		(566	)
Closing Balance	$	11,530		$	15,431

Accounts receivable were $601,667 and $613,659, and the reserves for doubtful receivables were $11,530 and $15,431, resulting in net accounts receivable balances of $590,137 and $598,228 as of December 31, 2015 and June 30, 2016, respectively. In addition, accounts receivable due after one year of $8,348 and $6,387 as of December 31, 2015 and June 30, 2016, respectively, are included under other assets in the Consolidated Balance Sheets.

Accounts receivable from related parties were $1,980 and $1,192 as of December 31, 2015 and June 30, 2016, respectively. There are no reserves for doubtful receivables in respect of amounts due from related parties.

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

6. Fair value measurements

The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2015 and June 30, 2016:

	As of June 30, 2016
	Fair Value Measurements at Reporting Date Using
			Quoted Pricesin Active Marketsfor Identical Assets		Significant Other ObservableInputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Note a, c)	$	34,832	$	-	$	34,832	$	-
Total	$	34,832	$	—	$	34,832	$	—
Liabilities
Earnout Consideration (Note b, d)	$	18,438	$	-	$	-	$	18,438
Derivative instruments (Note b, c)	$	66,197	$	-	$	66,197	$	-
Total	$	84,635	$	—	$	66,197	$	18,438
Redeemable non-controlling interest (Note e)	$	2,778	$	-	$	-	$	2,778

	As of December 31, 2015
	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Note a, c)	$	30,380	$	-	$	30,380	$	-
Total	$	30,380	$	—	$	30,380	$	—
Liabilities
Earnout Consideration (Note b, d)	$	22,820	$	-	$	-	$	22,820
Derivative instruments (Note b, c)	$	59,620	$	-	$	59,620	$	-
Total	$	82,440	$	—	$	59,620	$	22,820

(a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets.

(b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.

(c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database.

(d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy.

(e) The Company’s estimate of the fair value of redeemable non-controlling interest as of June 30, 2016 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions.

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

6. Fair value measurements(Continued)

The following table provides a roll-forward of the fair value of contingent consideration categorized as level 3 for the three and six months ended June 30, 2015 and 2016:

	Three months ended						Six months ended
	June 30,						June 30,
	2015			2016			2015			2016
Opening Balance	$	33,415		$	20,853		$	33,990		$	22,820
Earn-out consideration payable in connection with    acquisitions		—			2,070			—			10,190
Payments made on earn-out consideration		—			(187	)		(126	)		(1,152	)
Change in fair value and others		(730	)		(4,298	)		(1,179	)		(13,420	)
Ending balance	$	32,685		$	18,438		$	32,685		$	18,438

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments

The Company is exposed to the risk of rate fluctuations on its foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities, foreign currency denominated forecasted cash flows and interest rate risk. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature between 0 and 54 months and the forecasted transactions are expected to occur during the same period.

The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure:

	Notional principal amounts (note a)				Balance sheet exposure asset (liability)  (note b)
	As of December 31, 2015		As of June 30, 2016		As of December 31, 2015			As of June 30, 2016
Foreign exchange forward contracts denominated in:
United States Dollars (sell) Indian Rupees (buy)	$	1,139,400	$	1,093,400	$	(48,197	)	$	(38,642	)
United States Dollars (sell) Mexican Peso (buy)		8,520		4,620		(1,163	)		(851	)
United States Dollars (sell) Philippines Peso (buy)		58,500		37,050		(1,387	)		(514	)
Euro (sell) United States Dollars (buy)		146,719		142,546		9,109			5,936
Euro (sell) Romanian Leu (buy)		39,027		22,295		567			527
Japanese Yen (sell) Chinese Renminbi (buy)		62,740		85,348		(1,379	)		(10,635	)
Pound Sterling (sell) United States Dollars (buy)		118,438		132,489		7,496			15,147
Australian Dollars (sell) United States Dollars (buy)		106,544		89,661		5,714			1,793
Interest rate swaps (floating to fixed)		-		419,805		-			(4,126	)
						(29,240	)		(31,365	)

(a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements.

(b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date.

FASB guidance on Derivatives and Hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the Balance Sheet. In accordance with the FASB guidance on Derivatives and Hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items such as receivables and intercompany borrowings denominated in currencies other than the Company’s underlying functional currency.

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments (Continued)

The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below:

	Cash flow hedges				Non-designated
	As of December 31, 2015		As of June 30, 2016		As of December 31, 2015		As of June 30, 2016
Assets
Prepaid expenses and other current assets	$	17,400	$	23,304	$	884	$	92
Other assets	$	12,096	$	11,436	$	-	$	-
Liabilities
Accrued expenses and other current liabilities	$	34,576	$	28,931	$	34	$	666
Other liabilities	$	25,010	$	36,600	$	-	$	-

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments (Continued)

Cash flow hedges

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred.

In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below:

	Three months ended June 30,																	Six months ended June 30,
	2015								2016									2015									2016
	Before- Tax amount			Tax (Expense) or Benefit		Net of tax Amount			Before- Tax amount			Tax (Expense) or Benefit			Net of tax Amount			Before- Tax amount			Tax (Expense) or Benefit			Net of tax Amount			Before- Tax amount			Tax (Expense) or Benefit			Net of tax Amount
Opening balance	$	(32,968	)	$	11,661	$	(21,307	)	$	(27,267	)	$	8,977		$	(18,290	)	$	(66,786	)	$	23,646		$	(43,140	)	$	(30,090	)	$	9,830		$	(20,260	)
Net gains (losses) reclassified into    statement of income on completion of    hedged transactions		(8,659	)		3,062		(5,597	)		(2,585	)		587			(1,998	)		(17,913	)		6,313			(11,600	)		(5,487	)		1,289			(4,198	)
Changes in fair value of effective portion of    outstanding derivatives, net		(24,331	)		8,561		(15,770	)		(6,108	)		555			(5,553	)		233			(173	)		60			(6,187	)		404			(5,783	)
Gain (loss) on cash flow hedging    derivatives, net		(15,672	)		5,499		(10,173	)		(3,523	)		(32	)		(3,555	)		18,146			(6,486	)		11,660			(700	)		(885	)		(1,585	)
Closing balance	$	(48,640	)	$	17,160	$	(31,480	)	$	(30,790	)	$	8,945		$	(21,845	)	$	(48,640	)	$	17,160		$	(31,480	)	$	(30,790	)	$	8,945		$	(21,845	)

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments (Continued)

The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below:

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion)											Location of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)	Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)
	Three months ended June 30,						Six months ended June 30,						Three months ended June 30,						Six months ended June 30,
	2015			2016			2015		2016				2015			2016			2015			2016
Forward foreign exchange contracts	$	(24,331	)	$	(3,522	)	$	233	$	(1,675	)	Revenue	$	3,815		$	2,126		$	6,310		$	5,997
Interest rate swaps	$	-		$	(2,586	)	$	-	$	(4,512	)	Cost of revenue	$	(10,013	)	$	(3,405	)	$	(19,440	)	$	(8,717	)
												Selling, general and administrative expenses	$	(2,461	)	$	(919	)	$	(4,783	)	$	(2,380	)
												Interest expense	$	-		$	(387	)	$	-		$	(387	)
	$	(24,331	)	$	(6,108	)	$	233	$	(6,187	)		$	(8,659	)	$	(2,585	)	$	(17,913	)	$	(5,487	)

Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing are $0 for the three and six months ended June 30, 2015 and 2016, respectively.

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments (Continued)

Non-designated Hedges

Derivatives not designated as hedging instruments	Location of Gain (Loss) recognized in Statement of Income on Derivatives	Amount of Gain (Loss) recognized in Statement of Income on Derivatives
		Three months ended June 30,					Six months ended June 30,
		2015		2016			2015		2016
Forward foreign exchange    contracts (Note a)	Foreign exchange gains (losses), net	$	1,596	$	(895	)	$	3,840	$	239
		$	1,596	$	(895	)	$	3,840	$	239

(a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income.

8. Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following:

	As of December 31,		As of June 30,
	2015		2016
Advance income and non-income taxes	$	52,953	$	89,148
Deferred transition costs		36,620		39,847
Derivative instruments		18,284		23,396
Prepaid expenses		12,565		17,419
Customer acquisition cost		6,687		9,410
Employee advances		3,878		5,309
Deposits		1,820		1,492
Advances to suppliers		8,028		2,311
Others		13,190		8,509
	$	154,025	$	196,841

9. Property, plant and equipment, net

Property, plant and equipment, net consist of the following:

	As of December 31,			As of June 30,
	2015			2016
Property, plant and equipment, gross	$	556,518		$	583,143
Less: Accumulated depreciation and amortization		(381,122	)		(397,500	)
Property, plant and equipment, net	$	175,396		$	185,643

Depreciation expense on property, plant and equipment for the six months ended June 30, 2015 and 2016 was $23,314 and $22,656, respectively, and for the three months ended June 30, 2015 and 2016 was $11,597 and $11,552, respectively. Computer software amortization for the six months ended June 30, 2015 and 2016 amounted to $4,657 and $4,808, respectively, and for the three months ended June 30, 2015 and 2016 amounted to $2,295 and $2,463, respectively.

The depreciation and amortization expenses set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $1,160 and $467 for the six months ended June 30, 2015 and 2016, respectively, and $599 and $174 for the three months ended June 30, 2015 and 2016, respectively.

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

10. Goodwill and intangible assets

The following table presents the changes in goodwill for the year ended December 31, 2015 and six months ended June 30, 2016:

	As of December 31,			As of June 30,
	2015			2016
Opening balance	$	1,057,214		$	1,038,346
Goodwill relating to acquisitions consummated during the    period		7,674			23,349
Impact of measurement period adjustments		(135	)		—
Effect of exchange rate fluctuations		(26,407	)		(5,727	)
Closing balance	$	1,038,346		$	1,055,968

The total amount of goodwill deductible for tax purposes was $36,390 and $37,214 as of December 31, 2015 and June 30, 2016, respectively.

The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows:

	As of December 31, 2015						As of June 30, 2016
	Gross carrying amount		Accumulated amortization & Impairment		Net		Gross carrying amount		Accumulated amortization & Impairment		Net
Customer-related intangible assets	$	319,035	$	247,463	$	71,572	$	317,439	$	255,184	$	62,255
Marketing-related intangible assets		42,749		27,021		15,728		42,450		28,339		14,111
Other intangible assets		29,729		18,427		11,301		32,341		24,285		8,055
	$	391,513	$	292,911	$	98,601	$	392,230	$	307,808	$	84,421

Amortization expenses for intangible assets disclosed in the consolidated statements of income under amortization of acquired intangible assets for the six months ended June 30, 2015 and 2016 were $14,656 and $12,638, respectively, and for the three months ended June 30, 2015 and 2016 were $7,315 and $6,493, respectively.

During the three months ended March 31, 2016, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset.

Based on the results of such testing, the Company determined that the carrying value of the intangible asset exceeded the estimated undiscounted cash flows by $4,943 and recorded a charge to reduce the carrying value by this amount. The Company used a combination of the income and cost approaches to determine the fair value of the intangible asset for the purpose of calculating the resulting charge. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income.

During the three months ended June 30, 2016, the Company tested a customer-related intangible asset for recoverability as a result of the termination of a client contract. Based on the results of such testing, the Company recorded a charge in the amount of the asset’s total carrying value of $871. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income.

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

11. Short-term borrowings

The Company has the following borrowing facilities:

(a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2015 and June 30, 2016, the limits available were $15,781and $15,145, respectively, of which $10,301 and $9,545 was utilized, constituting non-funded drawdown.  

(b) A fund-based and non-fund based revolving credit facility of $350,000, which the company obtained in June 2015 as described in note 12. This facility replaces the Company’s $250,000 facility initially entered into in August 2012 and subsequently amended in June 2013. As of December 31, 2015 and June 30, 2016, a total of $22,947 and $60,978, respectively, was utilized, of which $21,500 and $60,000, respectively, constituted funded drawdown and $1,447 and $978, respectively, constituted non-funded drawdown. The revolving facility expires in June 2020. The funded drawdown amount bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum as of December 31, 2015. As of June 30, 2016, the revolving facility bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum. The unutilized amount on the revolving facility bore a commitment fee of 0.25% and 0.25% as of December 31, 2015 and June 30, 2016, respectively. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. For the six months ended June 30, 2016, the Company was in compliance with the financial covenants.

(c) On January 27, 2015 and March 23, 2015, the Company obtained short-term loans in the amount of $672,500 and $737,500, respectively, from Morgan Stanley Senior Funding, Inc. in connection with certain internal reorganization transactions. These loans bore interest at a rate of 2.00% per annum and were fully repaid on January 30, 2015 and March 26, 2015, respectively. The Company recorded $1,045 in debt issuance expenses and $235 in interest with respect to the amounts borrowed under the short-term loans.

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GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

12. Long-term debt

In June 2015, the Company refinanced its 2012 credit facility through a new credit facility, comprised of an $800,000 term loan and a $350,000 revolving credit facility. Borrowings under the new facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus an applicable margin equal to 1.50% per annum or a base rate plus an applicable margin equal to 0.50% per annum, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.50% per annum. As a result of the June 2015 refinancing, the gross outstanding term loan under the previous facility, which amounted to $663,188 as of June 30, 2015, was extinguished, and the Company expensed $10,050, representing accelerated amortization of the existing unamortized debt issuance costs related to the prior facility. Additionally, the refinancing of the revolving facility resulted in the accelerated amortization of $65 relating to the existing unamortized debt issuance cost. The remaining unamortized costs for the revolving facility, together with the fees paid to the Company’s lenders and third parties in connection with the new term loan and revolving facility, will be amortized over the term of the refinanced facility, which ends on June 30, 2020.

As of December 31, 2015 and June 30, 2016, the amount outstanding under the term loan, net of debt amortization expense of $3,534 and $3,097, was $776,466 and $756,903, respectively. As of December 31, 2015 and June 30, 2016, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum based on the Company’s election and current credit rating. Indebtedness under the refinanced facility is unsecured. The amount outstanding on the term loan as of June 30, 2016 will be repaid through quarterly payments of $10,000, and the balance will be repaid upon the maturity of the term loan on June 30, 2020.

The maturity profile of the term loan, net of debt amortization expense, is as follows:

Year ended	Amount
2016	$	19,570
2017		39,181
2018		39,226
2019		39,272
2020		619,654
Total	$	756,903

22

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

13. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:

	As of December 31,		As of June 30,
	2015		2016
Accrued expenses	$	161,672	$	143,226
Accrued employee cost		158,054		110,042
Deferred transition revenue		44,974		47,152
Statutory liabilities		32,149		31,895
Retirement benefits		17,930		19,416
Derivative instruments		34,610		29,597
Advance from customers		19,815		22,275
Earn-out consideration		16,896		3,066
Other liabilities		12,210		9,332
Capital lease obligations		1,328		1,303
	$	499,638	$	417,304

14. Other liabilities

Other liabilities consist of the following:

	As of December 31,		As of June 30,
	2015		2016
Accrued employee cost	$	6,901	$	7,070
Deferred transition revenue		66,737		77,047
Retirement benefits		29,689		31,961
Derivative instruments		25,010		36,600
Amount received from GE under indemnification arrangement, pending adjustment		3,549		3,480
Advance from customers		4,485		2,428
Earn-out consideration		5,924		15,372
Others		10,729		10,168
Capital lease obligations		2,204		2,216
	$	155,228	$	186,342

23

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

15. Employee benefit plans

The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees.

Defined benefit plans

In accordance with Indian law, the Company maintains a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines and Japan sponsor defined benefit retirement programs.

Net defined benefit plan costs for the three months and six months ended June 30, 2015 and 2016 include the following components:

	Three months ended June 30,						Six months ended June 30,
	2015			2016			2015			2016
Service costs	$	1,389		$	1,430		$	2,773		$	2,833
Interest costs		675			613			1,353			1,311
Amortization of actuarial loss		98			(75	)		183			(19	)
Expected return on plan assets		(558	)		(494	)		(1,107	)		(980	)
Net defined benefit plan costs	$	1,604		$	1,474		$	3,202		$	3,145

Defined contribution plans

During the three and six months ended June 30, 2015 and 2016, the Company contributed the following amounts to defined contribution plans in various jurisdictions:

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
India	$	4,109	$	4,731	$	8,018	$	9,034
U.S.		2,008		2,203		4,636		5,735
U.K.		1,615		1,929		2,655		3,581
China		3,537		3,644		7,053		7,397
Other Regions		1,212		1,084		2,318		2,349
Total	$	12,481	$	13,591	$	24,680	$	28,096

24

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

16. Stock-based compensation

The Company has issued options under the Genpact Global Holdings 2005 Plan (the “2005 Plan”), the Genpact Global Holdings 2006 Plan (the “2006 Plan”), the Genpact Global Holdings 2007 Plan (the “2007 Plan”) and the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) to eligible persons, who are employees, directors and certain other persons associated with the Company.

With respect to options granted under the 2005, 2006 and 2007 Plans before the date of adoption of the 2007 Omnibus Plan, if an award granted under any such plan is forfeited or otherwise expires, terminates, or is cancelled without the delivery of shares, then the shares covered by the forfeited, expired, terminated, or cancelled award will be added to the number of shares otherwise available for grant under the respective plans.

Beginning on July 13, 2007, the date of adoption of the 2007 Omnibus Plan, share based awards forfeited, expired, terminated, or cancelled under any of the plans are added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares.

During the year ended December 31, 2012, the number of common shares authorized for issuance under the 2007 Omnibus Plan and the 2005 Plan was increased by 8,858,823 and 495,915 shares, respectively, as the result of an adjustment to outstanding unvested share awards.

Stock-based compensation costs relating to the foregoing plans during the six months ended June 30, 2015 and 2016 were $11,155 and $13,328, respectively, and for the three months ended June 30, 2015 and 2016 were $6,576 and $8,078, respectively. These costs have been allocated to cost of revenue and selling, general, and administrative expenses.

Stock options

Options granted are subject to a vesting requirement. Options granted under the plan are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. Compensation cost is determined as of the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model.

The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in the six months ended June 30, 2015 and June 30, 2016.

	Six months ended June 30, 2015			Six months ended June 30, 2016
Dividend yield		—		—
Expected life (in months)		84		84
Risk-free rate of interest		1.99	%	1.56	%
Volatility		34.97	%	27.22	%

25

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

16. Stock-based compensation (Continued)

A summary of stock option activity during the six months ended June 30, 2016 is set out below:

	Six months ended June 30, 2016
	Shares arising out of options			Weighted average exercise price		Weighted average remaining contractual life (years)		Aggregate intrinsic value
Outstanding as of January 1, 2016		5,986,845		$	16.99		5.8	$	—
Granted		660,000			27.65		—		—
Forfeited		(85,000)			18.47		—		—
Expired		—			—		—		—
Exercised		(631,422	)		15.93		—		6,890
Outstanding as of June 30, 2016		5,930,423		$	18.27		5.9	$	52,195
Vested as of June 30, 2016 and expected to vest thereafter (Note a)		5,658,217		$	17.88		5.9	$	51,115
Vested and exercisable as of June 30, 2016		3,108,924		$	15.35		4.1	$	35,722
Weighted average grant date fair value of  grants during the period	$	8.88

(a) Options expected to vest reflect an estimated forfeiture rate.

As of June 30, 2016, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $15,343, which will be recognized over the weighted average remaining requisite vesting period of 2.7 years.

Restricted share units

The Company has granted restricted share units, or RSUs, under the 2007 Omnibus Plan. Each RSU represents the right to receive one Company common share at a future date. The fair value of each RSU is the market price of a Company common share on the date of the grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSUs granted during the six months ended June 30, 2016 is set out below:

	Six months ended June 30, 2016
	Number of Restricted Share Units		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2016		157,390	$	17.67
Granted		54,443		25.91
Vested (Note a)		(14,550)		15.62
Forfeited		(1,135)		14.18
Outstanding as of June 30, 2016		196,148	$	20.13
Expected to vest (Note b)		189,210

(a) RSUs that vested during the period covered were net settled upon vesting by issuing 10,991 shares (net of minimum statutory tax withholding).

(b) The number of RSUs expected to vest reflects an estimated forfeiture rate.

92,692 RSUs vested in the year ended December 31, 2014, in respect of which 91,963 shares were issued in January 2016 after withholding shares to the extent of the minimum statutory withholding taxes.

53,546 RSUs vested in the year ended December 31, 2015, shares in respect of which will be issuable on December 31, 2016 after withholding shares to the extent of minimum statutory withholding taxes.

26

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

16. Stock-based compensation (Continued)

As of June 30, 2016, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $2,133, which will be recognized over the weighted average remaining requisite vesting period of 1.4 years.

Performance units

The Company also grants stock awards in the form of performance units, or PUs, under the 2007 Omnibus Plan.

Each PU represents the right to receive one Company common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. Over the performance period, the number of shares to be issued is adjusted upward or downward depending on the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets.

A summary of PU activity during the six months ended June 30, 2016 is set out below:

	Six months ended June 30, 2016
	Number of Performance Units		Weighted Average Grant Date Fair Value		Maximum Shares Eligible to Receive
Outstanding as of January 1, 2016		2,499,322	$	19.95		2,499,322
Granted		1,518,374		27.93		3,343,335
Vested		—		—		—
Forfeited		(136,200)		20.65		(159,400)
Adjustment upon final determination of level of performance goal achievement (Note a)		7,274		22.72
Adjustment upon final determination of level of performance goal achievement (Note a)						7,274
Outstanding as of June 30, 2016		3,888,770	$	23.04		5,690,531
Expected to vest (Note b)		3,158,060

(a) Represents an adjustment made in March 2016 to the number of shares subject to the PUs granted in 2015 upon certification of the level of achievement of the performance targets underlying such awards.

(b) The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate.

As of June 30, 2016, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $41,475, which will be recognized over the weighted average remaining requisite vesting period of 2.1 years.

Employee Stock Purchase Plan (ESPP)

On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”).

The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day of the subsequent May, August, November and February. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP.

27

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

16. Stock-based compensation (Continued)

During the six months ended June 30, 2015 and 2016, 65,055 and 60,636 common shares, respectively, were issued under ESPP.

The ESPP is considered compensatory under the FASB guidance on Compensation-Stock Compensation.

The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP during the six months ended June 30, 2015 and 2016 was $159 and $188, respectively, and for the three months ended June 30, 2015 and 2016 was $78 and $102, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses.

17. Capital stock

Share repurchases

In February 2015, the Company’s Board of Directors authorized a program to repurchase up to $250,000 in value of the Company’s common shares, and on February 4, 2016, the Company’s Board approved up to an additional $250 million in share repurchases, bringing the total authorization under the Company’s existing program to $500 million. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the six months ended June 30, 2015 and June 30, 2016, the Company purchased 3,628,449 and 3,314,035 of its common shares, respectively, at a weighted average price of $22.43 and $26.07 per share, respectively, for an aggregate cash amount of $81,399 and $86,404, respectively. The purchased shares have been retired.

The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the six months ended June 30, 2015 and June 30, 2016, $73 and $66, respectively, was deducted from retained earnings as direct costs related to share repurchases.

28

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

18. Earnings per share

The Company calculates earnings per share in accordance with FASB guidance on earnings per share. Basic and diluted earnings per common share give effect to the change in the number of Company common shares outstanding. The calculation of basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the respective periods. Potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, performance units and common shares to be issued under the employee stock purchase plan, have been included in the computation of diluted net earnings per share and the weighted average shares outstanding, except where the result would be anti-dilutive.

The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 3,760,500 and 573,540 for the six months ended June 30, 2015 and 2016, respectively, and 3,593,000 and 830,000 for the three months ended June 30, 2015 and 2016, respectively.

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
Net income available to Genpact Limited common    shareholders	$	62,701	$	65,231	$	107,354	$	123,796
Weighted average number of common shares    used in computing basic earnings per common share		218,525,149		210,178,050		219,208,922		210,479,108
Dilutive effect of stock-based awards		2,437,157		3,625,084		2,445,781		3,368,942
Weighted average number of common shares    used in computing dilutive earnings per common share		220,962,306		213,803,134		221,654,703		213,848,050
Earnings per common share attributable to Genpact    Limited common shareholders
Basic	$	0.29	$	0.31	$	0.49	$	0.59
Diluted	$	0.28	$	0.31	$	0.48	$	0.58

19. Cost of revenue

Cost of revenue consists of the following:

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
Personnel expenses	$	250,369	$	264,969	$	493,317	$	518,997
Operational expenses		104,297		106,953		207,094		214,495
Depreciation and amortization		11,638		11,833		23,369		23,111
	$	366,304	$	383,755	$	723,780	$	756,603

20. Selling, general and administrative expenses

Selling, general and administrative expenses consist of the following:

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
Personnel expenses	$	107,380	$	117,857	$	213,218	$	226,257
Operational expenses		39,596		45,158		80,158		94,736
Depreciation and amortization		2,254		2,182		4,602		4,353
	$	149,230	$	165,197	$	297,978	$	325,346

29

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

21. Other operating (income) expense, net

	Three months ended June 30,						Six months ended June 30,
	2015			2016			2015			2016
Other operating (income) expense	$	(570	)	$	(243	)	$	(1,032	)	$	(741	)
Impairment of intangible assets		—			871			—			5,814
Change in fair value of earn out consideration, deferred consideration (relating to business acquisitions)		(2,100	)		(5,490	)		(2,100	)		(14,996	)
Other operating (income) expense, net	$	(2,670	)	$	(4,862	)	$	(3,132	)	$	(9,923	)

22. Interest income (expense), net

	Three months ended June 30,						Six months ended June 30,
	2015			2016			2015			2016
Interest income	$	2,001		$	2,160		$	3,197		$	4,524
Interest expense		(9,238	)		(5,593	)		(19,459	)		(10,795	)
Loss on extinguishment of debt		(10,115	)		-			(10,115	)		-
Interest income (expense), net	$	(17,352	)	$	(3,433	)	$	(26,377	)	$	(6,271	)

23. Income taxes

The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.

As of December 31, 2015, the Company had unrecognized tax benefits amounting to $26,357, including an amount of $24,935, which, if recognized, would impact the effective tax rate.

The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2016 to June 30, 2016:

	2016
Opening balance at January 1	$	26,357
Increase related to prior year tax positions, including recorded    in acquisition accounting		13
Decrease related to prior year tax positions		(790	)
Decrease related to prior year tax position due to lapse of    applicable statute of limitation		(166	)
Increase related to current year tax positions, including recorded in acquisition accounting		61
Decrease related to settlements with tax authorities		(2,000	)
Effect of exchange rate changes		(66	)
Closing balance at June 30	$	23,409

The Company’s unrecognized tax benefits as of June 30, 2016 include an amount of $21,997, which, if recognized, would impact the effective tax rate. As of December 31, 2015 and June 30, 2016, the Company had accrued approximately $4,223 and $3,735, respectively, for interest relating to unrecognized tax benefits. During the year ended December 31, 2015 and the six months ended June 30, 2016, the company recognized approximately $1,152 and ($384), respectively, excluding exchange rate differences, for interest on unrecognized tax benefits. As of December 31, 2015 and June 30, 2016, the Company had accrued approximately $958 and $887, respectively, for penalties.

30

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

24. Related party transactions

The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates.

The Company’s related party transactions can be categorized as follows:

Revenue from services

For the six months ended June 30, 2015 and June 30, 2016, the Company recognized net revenues of $176 and $168, respectively, and for the three months ended June 30, 2015 and 2016, the Company recognized net revenues of $77 and $89, respectively, from a client that is a significant shareholder of the Company.

For the six months ended June 30, 2015 and June 30, 2016, the Company recognized net revenues of $4,164 and $3,484 respectively, and for the three months ended June 30, 2015 and 2016, the Company recognized net revenues of $2,125 and $1,832 from a client that is a non-consolidating affiliate of the Company. $1,165 of this amount is receivable as of June 30, 2016.

Cost of revenue from services

The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, which are included in cost of revenue. For the six months ended June 30, 2015 and 2016, cost of revenue includes an amount of $1,029 and $953, respectively, and for the three months ended June 30, 2015 and 2016, cost of revenue includes an amount of $658 and $455, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates.

Selling, general and administrative expenses

The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the six months ended June 30, 2015 and 2016, selling, general and administrative expenses includes an amount of $239 and $127, respectively, and for the three months ended June 30, 2015 and 2016, selling, general and administrative expenses includes an amount of $145 and $60, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates.

During the six and three months ended June 30, 2016, the Company entered into transactions with a significant shareholder of the Company to provide services to the Company at a cost of $15 and $0, respectively.

Investment in equity affiliates

During the six months ended June 30, 2016, the Company invested $3,783 in its non-consolidating affiliates and made payments of $5,283. As of December 31, 2015 and June 30, 2016, $3,736 and $2,236, respectively, in investments in equity affiliates was accrued but not paid and has been included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet.

As of December 31, 2015 and June 30, 2016, the Company’s investments in its non-consolidating affiliates amounted to $6,677 and $6,230 respectively.

Others

During the six months ended June 30, 2015 and 2016, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $2,035 and $674, respectively, and for the three months ended June 30, 2015 and 2016 amounting to $297 and $345, respectively, of which $674 is receivable and has been included in prepaid expenses and other current assets in the Company’s consolidated balance sheet as of June 30, 2016.

31

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

25. Commitments and contingencies

Capital commitments

As of December 31, 2015 and June 30, 2016, the Company has committed to spend $8,237 and $6,112, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases.

Bank guarantees

The Company has outstanding bank guarantees amounting to $11,748 and $10,523 as of December 31, 2015 and June 30, 2016, respectively. Bank guarantees are generally provided to government agencies, excise and customs authorities for the purposes of maintaining a bonded warehouse. These guarantees may be revoked by the government agencies if they suffer any losses or damage through the breach of any of the covenants contained in the agreements governing such guarantees.

Other commitments

The Company’s business process delivery centers in India are 100% export oriented units or Software Technology Parks of India (“STPI”) units under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled.

26. Subsequent Events:

Share Repurchase

Pursuant to its share repurchase program, the Company repurchased 2,252,432 of its common shares between  July 1, 2016 and August 8, 2016, at a weighted average price of $26.57 per share for an aggregate cash amount of $59,837.

Acquisition of PNMSoft Ltd.

On August 4, 2016, the Company completed its previously announced acquisition of PNMSoft Ltd., an Israeli company (“PNMSoft”), a workflow, case management and work optimization solutions provider, pursuant to the share purchase agreement among the Company, PNMSoft and the shareholders of PNMSoft dated June 23, 2016.  The preliminary estimated purchase consideration for the acquisition of PNMSoft is $31,000, subject to adjustment for working capital and closing debt.  The purchase agreement also provides for contingent earn-out consideration of up to $9,000, payable to the shareholders of PNMSoft subject to the achievement of certain performance targets following closing.  

32

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 

The following discussion should be read in conjunction with our consolidated financial statements and the related notes that appear elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2015 and with the information under the heading “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, 2015. In addition to historical information, this discussion includes forward-looking statements and information that involves risks, uncertainties and assumptions, including but not limited to those listed below and under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015.

Special Note Regarding Forward-Looking Statements

We have made statements in this Quarterly Report on Form 10-Q (the “Quarterly Report”) in, among other sections, Part I, Item 2—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” that are forward-looking statements. In some cases, you can identify these statements by forward-looking terms such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “could,” “may,” “shall,” “will,” “would” and variations of such words and similar expressions, or the negative of such words or similar expressions. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, which in some cases may be based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In particular, you should consider the numerous risks outlined in Part I, Item 1A—“Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015.

These forward-looking statements include, but are not limited to, statements relating to:

· our ability to retain existing clients and contracts;

· our ability to win new clients and engagements;

· the expected value of the statements of work under our master service agreements;

· our beliefs about future trends in our market;

· political, economic or business conditions in countries where we have operations or where our clients operate;

· expected spending on business process outsourcing and information technology services by clients;

· foreign currency exchange rates;

· our ability to convert bookings to revenue;

· our rate of employee attrition;

· our effective tax rate; and

· competition in our industry.

Factors that may cause actual results to differ from expected results include, among others:

· our ability to grow our business and effectively manage growth and international operations while maintaining effective internal controls;

· our dependence on revenues derived from clients in the United States and Europe and clients that operate in certain industries, such as the financial services industry;

· our dependence on favorable tax legislation and tax policies that may be amended in a manner adverse to us or be unavailable to us in the future;

· our ability to successfully consummate or integrate strategic acquisitions;

· our ability to maintain pricing and asset utilization rates;

· our ability to hire and retain enough qualified employees to support our operations;

· increases in wages in locations in which we have operations;

· our relative dependence on the General Electric Company, or GE, and our ability to maintain our relationships with divested GE businesses;

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· financing terms, including, but not limited to, changes in the London Interbank Offered rate, or LIBOR; 

· restrictions on visas for our employees traveling to North America and Europe;

· fluctuations in exchange rates between the U.S. dollar, the euro, U.K. pound sterling, Chinese renminbi, Hungarian forint, Japanese yen, Indian rupee, Australian dollar, Philippines peso, Guatemalan quetzal, Mexican peso, Polish zloty, Romanian leu, South African rand, Hong Kong dollar, Singapore dollar, Arab Emirates dirham, Brazilian real, Swiss franc, Swedish krona, Danish krone, Kenyan shilling, Czech koruna and Canadian dollar;

· our ability to retain senior management;

· the selling cycle for our client relationships;

· our ability to attract and retain clients and our ability to develop and maintain client relationships on attractive terms;

· legislation in the United States or elsewhere that adversely affects the performance of business process outsourcing and information technology services offshore;

· increasing competition in our industry;

· telecommunications or technology disruptions or breaches, or natural or other disasters;

· our ability to protect our intellectual property and the intellectual property of others;

· our ability to maintain the security and confidentiality of personal and other sensitive data of our clients, employees or others;

· deterioration in the global economic environment and its impact on our clients, including the bankruptcy of our clients;

· regulatory, legislative and judicial developments, including the withdrawal of governmental fiscal incentives;

· the international nature of our business;

· technological innovation;

· our ability to derive revenues from new service offerings; and

· unionization of any of our employees.

Although we believe the expectations reflected in any forward-looking statements are reasonable at the time they are made, we cannot guarantee future results, level of activity, performance or achievements. Achievement of future results is subject to risks, uncertainties, and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements. We undertake no obligation to update any of these forward-looking statements after the date of this filing to conform our prior statements to actual results or revised expectations. You are advised, however, to consult any further disclosures we make on related subjects in our Form 10-K, Form 10-Q and Form 8-K reports to the SEC.

Overview

Genpact stands for “generating business impact.” We are a global leader in digitally-powered business process management and services. We architect the Lean Digital^SM enterprise through our patented Smart Enterprise Processes (SEP^SM) framework that reimagines our clients’ operating models end-to-end, including the middle and back offices. This creates Intelligent Operations^SM that we help design, transform, and run. For two decades, first as a General Electric division and later as an independent company, we have been passionately serving our clients. Today, we generate impact for a few hundred strategic clients, including approximately one fifth of the Fortune Global 500, and have grown to over 75,000 people in 25 countries, with corporate offices in New York City.

In the quarter ended June 30, 2016, we had net revenues of $630.5 million, of which $521.4 million, or 82.7%, was from clients other than GE, which we refer to as Global Clients, with the remaining $109.1 million, or 17.3%, coming from GE.

For the 12-month period ended June 30, 2016, the number of our client relationships generating annual revenue over $5 million increased to 104 from 102 as of June 30, 2015. This includes client relationships generating more than $15 million in annual revenue increasing to 34 from 31 and client relationships generating more than $25 million in annual revenue remaining constant at 17.

Our registered office is located at Canon’s Court, 22 Victoria Street, Hamilton HM 12, Bermuda.

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Acquisitions

On April 13, 2016, we acquired 100% of the outstanding equity interest of Endeavour Software Technologies Private Limited (“Endeavour”), a private limited company incorporated under the laws of India, for cash consideration of $10.0 million, net of cash acquired of $2.3 million, subject to adjustment for closing date working capital and net debt. The purchase agreement also provides for contingent earn-out consideration of up to $3.5 million. This acquisition enhances our digital capabilities by adding critical end-to-end mobility services. Goodwill arising from the acquisition amounted to $8.9 million, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes.

On January 8, 2016, we acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company, for initial cash consideration of $2.6 million, subject to adjustment for closing date working capital, transaction expenses and indebtedness. This acquisition strengthens our procurement consulting, transformation and strategic sourcing capabilities. The equity purchase agreement provides for contingent earn-out consideration of up to $20.0 million, payable based on future performance relative to the thresholds specified in the earn-out calculation. Up to $9.8 million of the total potential earn-out consideration, representing the selling equityholders’ 49% interest in SSE, is payable only if either the put or call option, each as described below, is exercised. Goodwill arising from the acquisition amounted to $14.5 million, which has been allocated to our India reporting unit and is deductible for tax purposes. The equity purchase agreement grants the Company a call option to purchase the remaining 49% equity interest in SSE, which option the Company has the right to exercise between January 1, 2018 and January 31, 2018. If the Company does not exercise its call option during such period, the selling equityholders have the right to exercise a put option between March 1, 2018 and April 30, 2018 to require the Company to purchase their 49% interest in SSE at a price ranging from $2.5 million to $3.0 million.

Asset held for sale

We are in the process of selling our cloud-hosted technology platform for the Indian rural banking sector (the “Business”), which we acquired in 2012.  As of June 30, 2016, net assets relating to the Business amounted to $2.0 million. During the three and six months ended June 30, 2016, net revenues attributable to the Business were $4.2 million and $9.2 million, and net income was $0.8 million and $0.2 million, respectively. The operations and net assets of the Business are not significant to our operations. We expect to complete the divestiture of the Business within the next 12 months.

Critical Accounting Policies and Estimates

For a description of our critical accounting policies, see Note 2—“Summary of significant accounting policies” under Part I, Item 1 —“Financial Statements” above, Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates,” and Note 2—“Summary of significant accounting policies” under Part IV, Item 15—“Exhibits and Financial Statement Schedules” in our Annual Report on Form 10-K for the year ended December 31, 2015.

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Results of Operations

The following table sets forth certain data from our consolidated statements of income for the three and six months ended June 30, 2015 and 2016.

													Percentage Change
													Increase/(Decrease)
	Three months ended June 30,						Six months ended June 30,						Three months ended June 30,		Six months ended June 30,
	2015			2016			2015			2016			2016 vs. 2015		2016 vs. 2015
	(dollars in millions)						(dollars in millions)
Net revenues—GE	$	114.5		$	109.1		$	228.2		$	216.5		(4.8)	%	(5.1)	%
Net revenues—Global Clients	495.0			521.4			968.5			1,023.7			5.3	%	5.7	%
Total net revenues	609.5			630.5			1,196.7			1,240.2			3.4	%	3.6	%
Cost of revenue	366.3			383.8			723.8			756.6			4.8	%	4.5	%
Gross profit	243.2			246.8			472.9			483.6			1.5	%	2.3	%
Gross profit margin		39.9	%		39.1	%		39.5	%		39.0	%
Operating expenses
Selling, general and administrative    expenses	149.2			165.2			298.0			325.3			10.7	%	9.2	%
Amortization of acquired intangible assets	7.3			6.5			14.7			12.6			(11.2)	%	(13.8)	%
Other operating (income) expense, net	(2.7)			(4.9)			(3.1)			(9.9)			82.1	%	216.8	%
Income from operations	89.4			79.9			163.4			155.6			(10.5)	%	(4.8)	%
Income from operations as a percentage  of    net revenues		14.7	%		12.7	%		13.7	%		12.5	%
Foreign exchange gains (losses), net	7.4			4.8			(0.1)			3.8			(35.3)	%	(3501.8)	%
Interest income (expense), net		(17.4)			(3.4)			(26.4)			(6.3)
Other income (expense), net	0.8			0.5			1.3			1.4			(38.0)	%	8.8	%
Income before equity-method investment    activity, net and income tax expense	80.2			81.8			138.2			154.5			2.0	%	11.8	%
Gain (loss) on equity-method investment    activity, net	(2.3)			(2.1)			(4.6)			(4.2)			(11.4)	%	(7.5)	%
Income before income tax expense	77.9			79.7			133.6			150.3			2.4	%	12.5	%
Income tax expense	15.2			15.4			26.3			27.6			1.3	%	5.2	%
Net income	62.7			64.3			107.4			122.6			2.6	%	14.2	%
Net loss (income) attributable to    redeemable non-controlling interest	—			0.9			—			1.2			100.0	%	100.0	%
Net income attributable to Genpact    Limited common shareholders	$	62.7		$	65.2		$	107.4		$	123.8		4.0	%	15.3	%
Net income attributable to Genpact    Limited common shareholders as a    percentage of net revenues		10.3	%		10.3	%		9.0	%		10.0	%

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Three Months Ended June 30, 2016 Compared to the Three Months Ended June 30, 2015

Net revenues. Our net revenues were $630.5 million in the second quarter of 2016, up $21.0 million, or 3.4%, from $609.5 million in the second quarter of 2015. The growth in net revenues was primarily driven by an increase in business process outsourcing, or BPO, services delivered to our Global Clients. Adjusted for foreign exchange, primarily changes in the values of the Australian dollar, U.K. pound sterling and euro against the U.S. dollar, which had an adverse impact on our net revenues in the second quarter of 2016, our net revenues grew 4.8% compared to the second quarter of 2015. Our average headcount increased by 7.8% to approximately 71,800 in the second quarter of 2016 from approximately 66,600 in the second quarter of 2015.

					Percentage Change
	Three months ended June 30,				Increase/(Decrease)
	2015		2016		2016 vs. 2015
	(dollars in millions)
Global Clients:
BPO services	$	391.0	$	424.5	8.6	%
IT services		104.0		96.9	(6.8)
Total net revenues from Global Clients	$	495.0	$	521.4	5.3	%
GE:
BPO services		90.3		83.5	(7.5)	%
IT services		24.3		25.6	5.3
Total net revenues from GE	$	114.5	$	109.1	(4.8)	%
Total net revenues from BPO services		481.2		508.1	5.6
Total net revenues from IT services		128.3		122.5	(4.5)
Total net revenues	$	609.5	$	630.5	3.4	%

Net revenues from Global Clients were $521.4 million in the second quarter of 2016, up $26.5 million, or 5.3%, from $495.0 million in the second quarter of 2015. This increase was primarily driven by growth in our targeted verticals, including banking and financial services, consumer product goods, life sciences and high tech. Within these verticals, revenues from our consulting, core industry vertical operations and finance and accounting service lines grew, partly offset by a decline in net revenues from our information technology, or IT, services, primarily in our investment banking and healthcare verticals. As a percentage of total net revenues, net revenues from Global Clients increased from 81.2% in the second quarter of 2015 to 82.7% in the second quarter of 2016.

Net revenues from GE were $109.1 million in the second quarter of 2016, down $5.5 million, or 4.8%, from $114.5 million in the second quarter of 2015. The decline in net revenues from GE was primarily due to phase-outs of work we do for GE Capital Corporate due to continued dispositions by GE of GE Capital businesses. Net revenues from IT services delivered to GE grew by 5.3%, while net revenues from BPO services delivered to GE decreased by 7.5%. Net revenues from GE declined as a percentage of our total net revenues from 18.8% in the second quarter of 2015 to 17.3% in the second quarter of 2016.

During the six months ended June 30, 2016, GE divested certain businesses that Genpact continues to serve.  Historically, we have reclassified revenues from these divested GE businesses as Global Client revenues in each fiscal quarter beginning on the date of divestiture. However, beginning with 2016, we will reclassify such revenue as Global Client revenue only at the end of each fiscal year. We believe that this change will allow us to provide a more consistent view of the trends underlying our Global Client and GE businesses. If we had reclassified the revenue from such GE-divested businesses during the second quarter, Global Client revenues for the quarter ended June 30, 2016 would have been $535 million and total net revenues from GE would have been $96 million.

Net revenues from BPO services were $508.1 million, up $26.8 million, or 5.6%, from $481.2 million in the second quarter of 2015. This increase was primarily attributable to an increase in services delivered to our Global Clients, particularly finance and accounting, consulting, and core vertical operations services. Net revenues from IT services were $122.5 million in the second quarter of 2016, down $5.8 million, or 4.5%, from $128.3 million in the second quarter of 2015 due to a decline in IT services engagements from Global Clients in the investment banking and healthcare industries.

Net revenues from BPO services as a percentage of total net revenues increased to 80.6% in the second quarter of 2016 from 79.0% in the second quarter of 2015 with a corresponding decline in the percentage of total net revenues attributable to IT services.

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Cost of revenue and gross margin. The following table sets forth the components of our cost of revenue and our resulting gross margin:

	Three Months Ended June 30,				As a Percentage of Total Net Revenues
	2015		2016		2015		2016
	(dollars in millions)
Personnel expenses	$	250.4	$	265.0	41.1	%	42.0	%
Operational expenses		104.3		107.0	17.1		17.0
Depreciation and amortization	11.6		11.8		1.9		1.9
Cost of revenue	$	366.3	$	383.8	60.1	%	60.9	%
Gross margin		39.9%		39.1%

Cost of revenue was $383.8 million in the second quarter of 2016, up $17.5 million, or 4.8%, from the second quarter of 2015. Wage inflation, an increase in infrastructure expenses, an increase in our operational headcount and related increases in travel expenses, and lower people utilization on billable projects due to a decline in net revenues from IT services in the second quarter of 2016 compared to the second quarter of 2015 all contributed to the increase in cost of revenue. The increase in cost of revenue was partially offset by a reduction in IT expenses and favorable foreign exchange, primarily the depreciation of the Indian rupee and U.K. pound sterling against the U.S. dollar. Foreign exchange fluctuations cause gains and losses on our foreign currency hedges and have a translation impact when we convert our non-U.S. dollar income statement items to the U.S. dollar, our reporting currency.

Our gross margin decreased marginally from 39.9% in the second quarter of 2015 to 39.1% in the second quarter of 2016 due to the factors described above.

Personnel expenses. Personnel expenses as a percentage of total net revenues increased from 41.1% in the second quarter of 2015 to 42.0% in the second quarter of 2016. Personnel expenses in the second quarter of 2016 were $265.0 million, up $14.6 million, or 5.8%, from the second quarter of 2015. Personnel expenses increased primarily due to wage inflation, an approximately 4,200-person, or 7.2%, increase in our operational headcount, and lower people utilization on billable projects due to a decline in net revenues from IT services in the second quarter of 2016 compared to the second quarter of 2015. These increases were partially offset by favorable foreign exchange.

Operational expenses. Operational expenses as a percentage of total net revenues decreased from 17.1% in the second quarter of 2015 to 17.0% in the second quarter of 2016. Operational expenses were $107.0 million, up $2.7 million, or 2.5%, from the second quarter of 2015. Operational expenses increased primarily due to higher infrastructure expenses and travel expenses in the second quarter of 2016 compared to the second quarter of 2015. The increase in operational expenses was partially offset by lower IT expenses in the second quarter of 2016 compared to the second quarter of 2015, and favorable foreign exchange.

Depreciation and amortization expenses. Depreciation and amortization expenses as a percentage of total net revenues were unchanged at 1.9% in the second quarter of 2016 compared to the second quarter of 2015. Depreciation and amortization expenses were $11.8 million, up $0.2 million, or 1.7%, from the second quarter of 2015. This increase was primarily due to the expansion of certain existing facilities in India and was partially offset by favorable foreign exchange.  

Selling, general and administrative expenses. The following table sets forth the components of our selling, general and administrative, or SG&A, expenses:

	Three Months Ended June 30,				As a Percentage of Total Net Revenues
	2015		2016		2015		2016
	(dollars in millions)
Personnel expenses	$	107.4	$	117.9	17.6	%	18.7	%
Operational expenses		39.6		45.2	6.5		7.2
Depreciation and amortization		2.3		2.2	0.4		0.3
Selling, general and administrative expenses	$	149.2	$	165.2	24.5	%	26.2	%

SG&A expenses as a percentage of total net revenues increased from 24.5% in the second quarter of 2015 to 26.2% in the second quarter of 2016. SG&A expenses in the second quarter of 2016 were $165.2 million, up $16.0 million, or 10.7%, from the second quarter of 2015. Our sales and marketing expenses as a percentage of net revenues were approximately 7.1% in the second quarter of 2016, up from approximately 6.9% from the second quarter of 2015. SG&A expenses increased due to wage inflation, investments in domain expertise and digital and analytics capabilities, higher travel expense, increased stock-based compensation expense, higher fees for professional services, and a reserve for doubtful receivables in the second quarter of 2016. This increase was

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partially offset by favorable foreign exchange, primarily the depreciation of the Indian rupee and U.K. pound sterling against the U.S. dollar in the second quarter of 2016 compared to the second quarter of 2015.

Personnel expenses. As a percentage of total net revenues, personnel expenses increased from 17.6% in the second quarter of 2015 to 18.7% in the second quarter of 2016. Personnel expenses in the second quarter of 2016 were $117.9 million, up $10.5 million, or 9.8%, from the second quarter of 2015. The increase is primarily due to wage inflation, higher stock-based compensation expense, and a 7.0% increase in our sales-team personnel expenses as a result of investments in domain expertise and digital and analytics capabilities in the second quarter of 2016 compared to the second quarter of 2015. These increases were partially offset by favorable foreign exchange.

Operational expenses. As a percentage of total net revenues, operational expenses increased from 6.5% in the second quarter of 2015 to 7.2% in the second quarter of 2016. Operational expenses in the second quarter of 2016 were $45.2 million, up $5.6 million, or 14.0%, from the second quarter of 2015. This increase is primarily due to higher travel expenses, a reserve for doubtful receivables and higher fees for professional services in the second quarter of 2016 compared to the second quarter of 2015. The increase was partially offset by favorable foreign exchange.

Depreciation and amortization. As a percentage of total net revenues, depreciation and amortization expenses decreased from 0.4% from the second quarter of 2015 to 0.3% in the second quarter of 2016. Depreciation and amortization expenses were $2.2 million, down $0.1 million, or 3.2%, from the second quarter of 2015. This marginal decrease was primarily due to an increase in fully depreciated assets since the second quarter of 2015 and favorable foreign exchange.

Amortization of acquired intangibles. Non-cash charges on account of the amortization of acquired intangibles were $6.5 million, down $0.8 million, or 11.2%, from the second quarter of 2015. This decrease is primarily due to a $0.9 million decline in the amortization expense relating to Pharmalink Consulting Limited and Pharmalink Consulting Inc., which we acquired in the second quarter of 2014 and refer to as our “regulatory affairs acquisition.”

Other operating (income) expense, net. The following table sets forth the components of other operating (income) expense, net:

							Percentage Change
	Three months ended June 30,						Increase/(Decrease)
	2015				2016		2016 vs. 2015
	(dollars in millions)
Other operating (income) expense	$	(0.6)		$	(0.2)		(57.4)	%
Impairment of intangible assets		—			0.9		100.0
Change in fair value of earn out consideration,    deferred consideration (relating to business    acquisitions)		(2.1)			(5.5)		161.4
Other operating (income) expense, net	$	(2.7)		$	(4.9)		82.1	%
Other operating (income) expense, net as a    percentage of total net revenues		(0.4)	%		(0.8)	%

Other operating income, net of expenses, was $4.9 million in the second quarter of 2016, up $2.2 million from $2.7 million in the second quarter of 2015. This increase was primarily a result of recording a $5.5 million gain in the second quarter of 2016 compared to a $2.1 million gain in the second quarter of 2015 due to changes in the fair value of earn-out consideration payable in connection with certain acquisitions. This income was partially offset by a $0.9 million non-recurring charge in the second quarter of 2016 relating to an intangible asset, which charge we discuss in Note 10—“Goodwill and intangible assets” under Part I, Item 1—“Financial Statements” above.

Income from operations. As a result of the foregoing factors, as a percentage of total net revenues, income from operations decreased from 14.7% in the second quarter of 2015 to 12.7% in the second quarter of 2016. Income from operations decreased by $9.4 million to $79.9 million in the second quarter of 2016 from $89.4 million in the second quarter of 2015.

Foreign exchange (gains) losses, net. Foreign exchange (gains) losses, net represents the impact of the re-measurement of our non-functional currency assets and liabilities and related foreign exchange contracts. We recorded a net foreign exchange gain of $4.8 million in the second quarter of 2016, down from $7.4 million in the second quarter of 2015. The gain in the second quarter of 2016 was primarily a result of the depreciation of the Indian rupee and U.K. pound sterling against the U.S. dollar during the quarter. Our net foreign exchange gain in the second quarter of 2015 was primarily due to the depreciation of the Indian rupee against the U.S. dollar during that quarter.

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Interest income (expense), net. The following table sets forth the components of interest income (expense), net:

							Percentage Change
	Three months ended June 30,						Increase/(Decrease)
	2015			2016			2016 vs. 2015
Interest income	$	2.0		$	2.2		7.9	%
Interest expense	(9.2)			(5.6)			(39.5)	%
Loss on extinguishment of debt		(10.1)			—		(100.0)	%
Interest income (expense), net	$	(17.4)		$	(3.4)		(80.2)	%
Interest income (expense), net as a percentage of    total net revenues		2.8	%		0.5	%

Our net interest expense was $3.4 million in the second quarter of 2016, down $13.9 million from $17.4 million in the second quarter of 2015 primarily due to (i) the accelerated amortization of $10.1 million in debt issuance costs in the second quarter of 2015 in connection with the refinancing of our credit facility in June 2015, which we discuss in the section titled “Liquidity and Capital Resources—Financial Condition” below, (ii) a decrease in interest expense as a result of a reduced interest rate on the term loan under our new credit facility, which we discuss in the section titled “Liquidity and Capital Resources—Financial Condition” below, and (iii) lower drawdown on our revolving credit facility in the second quarter of 2016 compared to the second quarter of 2015. The decrease in interest expense was partially offset by interest on interest rate swaps which we entered into in 2016. The weighted average rate of interest on our debt decreased from 3.4% in the second quarter of 2015 to 1.7% in the second quarter of 2016.

Other income (expense), net. Our net other income was $0.5 million in the second quarter of 2016, down $0.3 million from $0.8 million in the second quarter of 2015.

Equity-method investment activity, net. Equity-method investment activity, net in the second quarter of 2016 primarily represents our $2.1 million share of loss, compared to our $2.3 million share of loss in the second quarter of 2015, from our non-consolidated affiliate, Markit Genpact KYC Services Limited, a U.K.-based joint venture with Markit Group Limited formed in 2014.

Income tax expense. Our income tax expense was $15.4 million in the second quarter of 2016, up $0.2 million from $15.2 million in the second quarter of 2015, representing an effective tax rate, or ETR, of 19.1%, compared to 19.5% in the second quarter of 2015.

Net income attributable to redeemable non-controlling interest.Redeemablenon-controlling interest primarily refers to the profit or loss associated with the non-controlling interest in the operations of SSE in the second quarter of 2016, which we discuss in Note 3—“Business acquisitions” under Part I, Item 1—“Financial Statements” above.

Net income attributable to Genpact Limited common shareholders. As a result of the foregoing factors, net income attributable to Genpact Limited common shareholders as a percentage of total net revenues was 10.3% in the second quarter of 2016, unchanged from the second quarter of 2015. Net income attributable to Genpact Limited common shareholders was $65.2 million in the second quarter of 2016, up $2.5 million from $62.7 million in the second quarter of 2015.

40

Six Months Ended June 30, 2016 Compared to the Six Months Ended June 30, 2015

Net revenues. Our net revenues were $1,240.2 million in the first half of 2016, up $43.5 million, or 3.6%, from $1,196.7 million in the first half of 2015. The growth in net revenues was primarily driven by an increase in BPO services delivered to our Global Clients. Adjusted for foreign exchange, primarily changes in the values of the euro, the Australian dollar and U.K. pound sterling against the U.S. dollar, which had an adverse impact on our net revenues in the first half of 2016, our net revenues grew by 5.5% compared to the first half of 2015. Our average headcount increased by 7.2% to approximately 71,000 in the second half of 2016 from approximately 66,300 in the second half of 2015.

					Percentage Change
	Six months ended June 30,				Increase/(Decrease)
	2015		2016		2016 vs. 2015
	(dollars in millions)
Global Clients:
BPO services	$	763.4	$ $	830.8	8.8	%
IT services		205.1		192.9	(6.0)
Total net revenues from Global Clients	$	968.5	$ $	1,023.7	5.7	%
GE:
BPO services		178.9		166.3	(7.0)	%
IT services		49.2		50.2	1.8
Total net revenues from GE	$ $	228.2	$ $	216.5	(5.1)	%
Total net revenues from BPO services		942.3		997.2	5.8
Total net revenues from IT services		254.4		243.1	(4.4)
Total net revenues	$	1,196.7	$	1,240.2	3.6	%

Net revenues from Global Clients were $1,023.7 million in the first half of 2016, up $55.2 million, or 5.7%, from $968.5 million in the first half of 2015. This increase was primarily driven by growth in our targeted verticals, including banking and financial services, consumer product goods, life sciences, insurance and high tech. In these verticals, we grew our consulting, core industry vertical operations and finance and accounting service lines, but this growth was partly offset by a decline in IT services, primarily in our investment banking and healthcare verticals. As a percentage of total net revenues, net revenues from Global Clients increased from 80.9% in the first half of 2015 to 82.5% in the first half of 2016.

Net revenues from GE were $216.5 million in the first half of 2016, down $11.7 million, or 5.1%, from the first half of 2015. The decline in net revenues from GE was largely due to phase-outs of work we do for GE Capital Corporate due to continued dispositions by GE of GE Capital businesses. Net revenues from IT services delivered to GE grew by 1.8% while net revenues from BPO services delivered to GE declined by 7.0%. Net revenues from GE declined as a percentage of our total net revenues from 19.1% in the first half of 2015 to 17.5% in the first half of 2016.

Net revenues from BPO services were $997.2 million, up $54.9 million, or 5.8%, from $942.3 million in the first half of 2015. This increase was primarily attributable to an increase in services delivered to our Global Clients, particularly finance and accounting, consulting, and core industry vertical operations services. Net revenues from IT services were $243.1 million in the first half of 2016, down $11.3 million, or 4.4%, from $254.4 million in the first half of 2015 due to a decline in IT services engagements from Global Clients in the investment banking and healthcare industries.

Net revenues from BPO services as a percentage of total net revenues increased to 80.4% in the first half of 2016 from 78.7% in the first half of 2015, with a corresponding decline in the percentage of total net revenues attributable to IT services.

Cost of revenue and gross margin. The following table sets forth the components of our cost of revenue and the resulting gross margin:

	Six Months Ended June 30,				As a Percentage of Total Net Revenues
	2015		2016		2015		2016
	(dollars in millions)
Personnel expenses	$	493.3	$	519.0	41.2	%	41.8	%
Operational expenses		207.1		214.5	17.3		17.3
Depreciation and amortization		23.4		23.1	2.0		1.9
Cost of revenue	$	723.8	$	756.6	60.5	%	61.0	%
Gross margin		39.5%		39.0%

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Cost of revenue was $756.6 million in the first half of 2016, up $32.8 million, or 4.5%, from the first half of 2015. Wage inflation, an increase in our operational headcount, related increases in travel and infrastructure expenses, and lower people utilization on billable projects due to a decline in net revenues from IT services all contributed to the higher cost of revenue in the first half of 2016 compared to the first half of 2015. These increases were partially offset by lower IT expenses and by favorable foreign exchange, primarily the depreciation of the Indian rupee and U.K. pound sterling against the U.S. dollar.

Our gross margin decreased from 39.5% in the first half of 2015 to 39.0% in the first half of 2016 due to the factors described above.

Personnel expenses. Personnel expenses as a percentage of total net revenues increased from 41.2% in the first half of 2015 to 41.8% in the first half of 2016. Personnel expenses were $519.0 million in the first half of 2016, up $25.7 million, or 5.2%, from $493.3 million in the first half of 2015. The impact of wage inflation, an approximately 4,100-person, or 7.2%, increase in our operational headcount, lower people utilization on billable projects due to a decline in net revenues from IT services, and higher stock-based compensation expense in the first half of 2016 compared to same period in 2015 contributed to higher personnel expenses. These increases were partially offset by favorable foreign exchange.

Operational expenses. Operational expenses as a percentage of total net revenues were approximately 17.3% in the first half of 2016, unchanged from the first half of 2015. Operational expenses were $214.5 million in the first half of 2016, up $7.4 million, or 3.6%, from the first half of 2015. Higher travel and infrastructure expenses in the first half of 2016 contributed to the increase in operational expenses compared to the first half of 2015. The increase in operational expenses was partially offset by lower IT expenses and favorable foreign exchange.

Depreciation and amortization expenses. Depreciation and amortization expenses as a percentage of total net revenues marginally decreased from 2.0% in the first half of 2015 to 1.9% in the first half of 2016. Depreciation and amortization expenses were $23.1 million in the first half of 2016, down $0.3 million, or 1.1%, from the first half of 2015. This decrease was primarily due to an increase in fully depreciated assets since the first half of 2015 and favorable foreign exchange.

Selling, general and administrative expenses. The following table sets forth the components of our selling, general and administrative, or SG&A, expenses:

	Six Months Ended June 30,				As a Percentage of Total Net Revenues
	2015			2016	2015		2016
	(dollars in millions)
Personnel expenses	$	213.2	$	226.3	17.8	%	18.2	%
Operational expenses		80.2		94.7	6.7		7.6
Depreciation and amortization		4.6		4.4	0.4		0.4
Selling, general and administrative expenses	$	298.0	$	325.3	24.9	%	26.2	%

SG&A expenses as a percentage of total net revenues increased from 24.9% in the first half of 2015 to 26.2% in the first half of 2016. SG&A expenses were $325.3 million in the first half of 2016, up $27.4 million, or 9.2%, from the first half of 2015. Our sales and marketing expenses as a percentage of total net revenues were approximately 7.2% in the first half of 2016, up from approximately 7.1% from the first half of 2015. Higher personnel expenses, investments in domain expertise and digital and analytics capabilities, fees for professional services, increased travel expenses, a reserve for doubtful receivables and the timing of certain non-recurring travel and related costs all contributed to higher SG&A expenses in the first half of 2016 compared to the first half of 2015. These increases were partially offset by favorable foreign exchange, primarily the depreciation of the Indian rupee and U.K. pound sterling against the U.S. dollar.

Personnel expenses. Personnel expenses as a percentage of total net revenues increased from 17.8% in the first half of 2015 to 18.2% in the first half of 2016. Personnel expenses as a component of SG&A expenses were $226.3 million in the first half of 2016, up $13.0 million, or 6.1%, from the first half of 2015. Wage inflation, investments in domain expertise and digital and analytics capabilities, and higher stock-based compensation expense resulted in higher personnel costs as a component of SG&A expenses in the first half of 2016 compared to the first half of 2015. These increases were partially offset by favorable foreign exchange.

Operational expenses. Operational expenses as a percentage of total net revenues increased from 6.7% in the first half of 2015 to 7.6% in the first half of 2016. Operational expenses as a component of SG&A expenses were $94.7 million in the first half of 2016, up $14.6 million, or 18.2%, from the first half of 2015. Higher fees for professional services, increased travel expenses, a reserve for

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doubtful receivables and the timing of certain non-recurring travel and related costs resulted in higher operational expenses in the first half of 2016 compared to the first half of 2015. This increase was partially offset by favorable foreign exchange.

Depreciation and amortization. Depreciation and amortization expenses as a percentage of total net revenues were 0.4%, unchanged from the first half of 2015. Depreciation and amortization expenses were $4.4 million in the first half of 2016, down $0.2 million, or 5.4%, from the first half of 2015. This marginal decrease was primarily due to an increase in fully depreciated assets since the first half of 2015 and favorable foreign exchange.

Amortization of acquired intangibles. Non-cash charges on account of the amortization of acquired intangibles were $12.6 million in the first half of 2016, down $2.0 million, or 13.8%, from the first half of 2015. This decrease is primarily due to a $1.9 million decline in the amortization expense relating to our regulatory affairs acquisition.

Other operating (income) expense, net. The following table sets forth the components of other operating (income) expense, net:

							Percentage Change
	Six months ended June 30,						Increase/(Decrease)
	2015				2016		2016 vs. 2015
	(dollars in millions)
Other operating (income) expense	$	(1.0)		$	(0.7)		(28.2)	%
Impairment of intangible assets		—			5.8		100.0
Change in fair value of earn out consideration,    deferred consideration (relating to business    acquisitions)		(2.1)			(15.0)		614.1
Other operating (income) expense, net	$	(3.1)		$	(9.9)		216.8	%
Other operating (income) expense, net as a    percentage of total net revenues		(0.3)	%		(0.8)	%

Other operating income, net of expenses, was $9.9 million in the first half of 2016, up $6.8 million from $3.1 million in the first half of 2015, primarily due to a $15.0 million gain in the first half of 2016 as a result of changes in the fair value of earn-out consideration payable in connection with certain acquisitions, compared to a $2.1 million gain in the first half of 2015. This income was partially offset by a $5.8 million non-recurring charge in the first half of 2016 relating to intangible assets, which charge we discuss in Note 10—“Goodwill and intangible assets” under Part I, Item 1—“Financial Statements” above.

Income from operations. As a result of the foregoing factors, income from operations as a percentage of total net revenues decreased from 13.7% in the first half of 2015 to 12.5% in the first half of 2016. Income from operations was $155.6 million in the first half of 2016, down $7.8 million from $163.4 million in the first half of 2015.

Foreign exchange (gains) losses, net. We recorded a net foreign exchange gain of $3.8 million in the first half of 2016 compared to a net foreign exchange loss of $0.1 million in the first half of 2015, primarily due to the re-measurement of non-functional currency assets and liabilities and related foreign exchange contracts mainly resulting from the depreciation of the Indian rupee and U.K. pound sterling against the U.S. dollar in the first half of 2016 compared to the depreciation of the Indian rupee and Euro against the U.S. dollar in the first half of 2015.

Interest income (expense), net. The following table sets forth the components of interest income (expense), net:

							PercentageChange
	Six months ended June 30,						Increase/(Decrease)
	2015			2016			2016 vs. 2015
Interest income	$	3.2		$	4.5		41.5	%
Interest expense	(19.5)			(10.8)			(44.5)	%
Loss on extinguishment of debt		(10.1)			—		(100.0)	%
Interest income (expense), net	$	(26.4)		$	(6.3)		(76.2)	%
Interest income (expense), net as a percentage    of total net revenues		(2.2)	%		(0.5)	%

Our net interest expense was $6.3 million in the first half of 2016, down $20.1 million from $26.4 million in the first half of 2015, primarily due to an $8.7 million decrease in interest expense in the first half of 2016 compared to the first half of 2015 and the accelerated amortization of $10.1 million in debt issuance costs in the first half of 2015. The 2015 accelerated amortization of debt

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issuance costs was due to the refinancing of our credit facility in June 2015, which we discuss in the section titled “Liquidity and Capital Resources—Financial Condition” below. The $8.7 million decrease in interest expense is primarily due to (i) a $4.1 million decrease in interest expense due to a lower interest rate on our term loan in the first half of 2016 compared to the first half of 2015, (ii) a $1.5 million decrease due to the unwinding of interest in the first half of 2016 on earn-out consideration payable in connection with certain acquisitions compared to first half of 2015, (iii) $1.3 million in debt issuance costs and interest expense on the two short-term loans we obtained and repaid in the first quarter of 2015 in the amounts of $672.5 million and $737.5 million, respectively, in connection with certain internal reorganization transactions, and (iv) lower interest expense on our revolving credit facility due to lower drawdown and a lower interest rate in the first half of 2016 compared to the first half of 2015. The decrease in interest expense was partially offset by interest on interest rate swaps that we entered into in the first half of 2016. Our interest income increased by $1.3 million in the first half of 2016 primarily due to higher account balances in jurisdictions in which we earn higher interest rates during the first half of 2016 compared to the first half of 2015. The weighted average rate of interest on our debt decreased from 3.3% in the first half of 2015 to 1.8% in the first half of 2016.

Other income (expense), net. Our net other income was $1.4 million in the first half of 2016, up $0.1 million from $1.3 million in the first half of 2015.

Equity-method investment activity, net. Equity-method investment activity, net in the first half of 2016 primarily represents our $4.2 million share of loss, compared to our $4.6 million share of loss in the first half of 2015, from our non-consolidated affiliate, Markit Genpact KYC Services Limited, a U.K.-based joint venture with Markit Group Limited formed in 2014.

Income tax expense. Our income tax expense was $27.6 million in the first half of 2016, up $1.4 million from $26.3 million in the first half of 2015, representing an ETR of 18.3% in the first half of 2016, down from 19.7% in the first half of 2015. The decrease in our ETR is primarily due to changes in the jurisdictional mix of our income, offset by certain discrete items, including the reversal of tax reserves for uncertain tax positions.

Net income attributable to redeemable non-controlling interest. Redeemable non-controlling interest primarily refers to the profit or loss associated with the non-controlling interest in the operations of SSE in the first half of 2016, which we discuss in Note 3—“Business acquisitions” under Part I, Item 1—“Financial Statements” above.

Net income attributable to Genpact Limited common shareholders. As a result of the foregoing factors, net income attributable to Genpact Limited common shareholders as a percentage of net revenues increased from 9.0% in the first half of 2015 to 10.0% in the first half of 2016. Net income attributable to our common shareholders was $123.8 million in the first half of 2016, up $16.4 million from $107.4 million in the first half of 2015.

Liquidity and Capital Resources

Overview

Information about our financial position as of December 31, 2015 and June 30, 2016 is presented below:

	As of December 31, 2015			As of June 30, 2016	Percentage Change Increase/(Decrease)
	(dollars in millions)
Cash and cash equivalents	$	450.9	$	407.3	(9.7)	%
Short-term borrowings		21.5		60.0	179.1
Long-term debt due within one year	39.1			39.2	0.1
Long-term debt other than the current portion		737.3		717.7	(2.7)
Genpact Limited total shareholders’ equity	$	1,304.4	$	1,352.1	3.7	%

Financial Condition

We have historically financed our operations and our expansion, including acquisitions, with cash from operations and borrowing facilities.

As of June 30, 2016, $402.6 million of the $407.3 million in cash and cash equivalents was held by our foreign (non-Bermuda) subsidiaries. $7.3 million of this cash is held by a foreign subsidiary for which we expect to incur a tax liability and have accordingly accrued a deferred tax liability on its repatriation. $158.7 million of the cash and cash equivalents held by our foreign subsidiaries is held in jurisdictions where no tax is expected to be imposed upon repatriation.

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Pursuant to our share repurchase program, we repurchased 2,252,432 of our common shares between July 1, 2016 and August 8, 2016 at a weighted average price of $26.57 per share for an aggregate cash amount of $59.8 million.

We expect that in the future our cash from operations, cash reserves and debt capacity will be sufficient to finance our operations, our growth and expansion plans, and additional share repurchases we expect to make under our share repurchase program. Our working capital needs are primarily to finance payroll and other administrative and information technology expenses in advance of the receipt of accounts receivable. Our primary capital requirements include opening new service delivery centers, expanding related operations to support our growth, and financing acquisitions.

Cash flows from operating, investing and financing activities, as reflected in our Consolidated Statements of Cash Flows, are summarized in the following table:

					PercentageChange
	Six months ended June 30,				Increase/(Decrease)
	2015			2016	2016 vs. 2015
	(dollars in millions)
Net cash provided by (used for)
Operating activities	$	114.6	$	79.2	(30.9)	%
Investing activities		(57.0)		(63.3)	11.0
Financing activities	(66.7)		(51.9)		(22.2)
Net increase (decrease) in cash and cash    equivalents	$	(9.1)	$	(35.9)	294.1	%

Cash flows from operating activities. We generated net cash from operating activities of $79.2 million in the first half of 2016, down $35.4 million from $114.6 million in the first half of 2015. This is primarily due to a $65.9 million net change in our operating assets and liabilities in the first half of 2016 compared to the first half of 2015, mainly driven by (i) higher upfront investments in certain large deals in the first half of 2016, (ii) a $5.6 million increase in net income tax payments due to higher pre-tax income, the payment of prior year tax amounts, and the timing of estimated tax payments and (iii) higher bonus payments in the first half of 2016. This was partially offset by a slower increase in investments in accounts receivable in the first half of 2016, primarily due to a reduction in revenue volume partially offset by an increase in days sales outstanding, and a $30.5 million increase in net income adjusted for amortization, depreciation and other non-cash items.

Cash flows from investing activities. Our net cash used for investing activities was $63.3 million in the first half of 2016, up $6.2 million from $57.0 million in the first half of 2015. This increase was primarily due to higher payments for purchases of property, plant and equipment (net of sales proceeds) of $17.0 million in the first half of 2016 compared to the first half of 2015. This increase was partially offset by payments of $17.8 million for acquisitions consummated in the first half of 2015 compared to payments of $11.6 million and $2.3 million for acquisitions consummated in the first half of 2016. Additionally, we invested $5.3 million in our non-consolidated affiliate, Markit Genpact KYC Services Limited, in the first half of 2016, down from $9.9 million in the first half of 2015.

Cash flows from financing activities. Our net cash used for financing activities was $51.9 million in the first half of 2016, down $14.8 million from $66.7 million in the first half of 2015. In June 2015, we refinanced our 2012 credit facility through a new credit facility, as described below in “Financing Arrangements.” Also in the first half of 2015, we obtained and repaid two short-term loans in the amounts of $672.5 million and $737.5 million, in connection with which we paid debt issuance costs of $1.0 million. In the first half of 2016, we repaid $20.0 million of the term loan under our new credit facility and drew down $38.5 million (net of repayments) of our revolving credit facility to meet short-term internal funding requirements. Additionally, we recognized a $7.0 million excess tax benefit related to stock-based compensation in the first half of 2016. No such tax benefit was recognized in the first half of 2015. Proceeds from the issuance of common shares under stock-based compensation plans (net of payments) were $10.5 million higher in the first half of 2016 than in the first half of 2015. Share repurchase payments were $86.4 million in the first half of 2016 compared to $81.4 million in the first half of 2015.

Financing Arrangements (Credit Facility)

In June 2015, we refinanced our 2012 facility through a new credit facility comprised of a term loan of $800 million and a revolving credit facility of $350 million. As of December 31, 2015 and June 30, 2016, our outstanding term loan debt, net of debt amortization expense of $3.5 million and $3.1 million, respectively, was $776.5 million and $756.9 million, respectively. We also have fund-based and non-fund based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2015 and June 30, 2016, the limits available under

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such facilities were $15.8 million and $15.1 million, respectively, of which $10.3 million and $9.5 million was utilized, constituting non-funded drawdown. For details on our financing arrangements, refer to notes 11 and 12 to our consolidated financial statements.

Off-Balance Sheet Arrangements

Our off-balance sheet arrangements consist of foreign exchange contracts and certain operating leases. For additional information, see Part I, Item 1A—Risk Factors—“Currency exchange rate fluctuations in various currencies in which we do business, especially the Indian rupee, the euro and the U.S. dollar, could have a material adverse effect on our business, results of operations and financial condition” in our Annual Report on Form 10-K for the year ended December 31, 2015, the section titled “Contractual Obligations” below, and Note 7 in Part I, Item 1—“Financial Statements” above.

Contractual Obligations

The following table sets forth our total future contractual obligations as of June 30, 2016:

	Total		Less than 1 year		1-3 years		3-5 years		After 5 years
	(dollars in millions)
Long-term debt	$	816.9	$	55.5	$	108.4	$	653.0	—
— Principal payments		757.0		39.2		78.5		639.3	—
— Interest payments*		59.9		16.3		29.9		13.7	—
Short-term borrowings		60.3		60.3	—		—		—
— Principal payments		60.0		60.0	—		—		—
— Interest payments**		0.3		0.3	—		—		—
Capital leases		4.4		1.7		2.1		0.6	—
— Principal payments		3.6		1.3		1.8		0.5	—
— Interest payments		0.8		0.4		0.3		0.1	—
Operating leases		134.9		27.7		47.5		29.7		30.0
Purchase obligations		36.2		26.6		9.1		0.5	—
Capital commitments net of advances		6.1		6.1	—		—		—
Earn-out consideration		22.6		3.7		9.9		8.2		0.8
— Reporting Date Fair Value		18.5		3.0		8.5		6.6		0.4
— Interest		4.1		0.7		1.4		1.6		0.4
Other liabilities		76.8		38.9		25.8		12.1		—
Total contractual obligations	$	1,158.2	$	220.5	$	202.8	$	704.1		30.8

* Our interest payments on long-term debt are calculated at a rate equal to LIBOR plus a margin of 1.50% per annum based on our election and current credit rating as of June 30, 2016. Amounts shown exclude the impact of interest rate swaps.

** Our interest payments on short-term debt represent estimated payments at a rate equal to LIBOR plus a margin of 1.50% per annum based on our election and current credit rating as of June 30, 2016 and our expectation for the repayment of such debt.

Recent Accounting Pronouncements

Recently adopted accounting pronouncements

For a description of recently adopted accounting pronouncements, see Note 2—“Recently adopted accounting pronouncements” under Item 1—“Financial Statements” above and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations”—“Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2015.

Recently issued accounting pronouncements

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. Subsequently, the FASB issued ASU No. 2016-08, “Principal versus Agent Considerations (Reporting Gross versus Net),” in March 2016 and ASU No. 2016-10, “Identifying performance obligations and

46

licensing,” in April 2016, which amend and clarify ASU 2014-09. These ASUs will be effective for us beginning January 1, 2018, including interim periods in our fiscal year 2018, and allow for both retrospective and prospective adoption. We are in the process of determining the method of adoption and assessing the impact of these ASUs on our consolidated results of operations, cash flows, financial position and disclosures.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities,” which primarily affects accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the ASU clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The ASU will be effective for us beginning January 1, 2018, including interim periods in our fiscal year 2018. Early adoption is permitted. We are in the process of determining the method of adoption and assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

In February 2016, the FASB issued ASU No. 2016-02, “Leases.” The core principle of the ASU is that a lessee should recognize the assets and liabilities that arise from its leases other than those that meet the definition of a short-term lease. The ASU requires extensive qualitative and quantitative disclosures, including with respect to significant judgments made by management. The ASU will be effective for us beginning January 1, 2019, including interim periods in our fiscal year 2019. Early adoption is permitted. We are in the process of determining the method of adoption and assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” The ASU changes several aspects of accounting for share-based payment award transactions, including (i) accounting and cash flow classification for excess tax benefits and deficiencies, (ii) forfeitures, and (iii) tax withholding requirements and cash flow classification. The ASU will be effective for us beginning January 1, 2017, including interim periods in our fiscal year 2017. Early adoption is permitted. We are in the process of determining the method of adoption and assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

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. The ASU will be effective for us beginning January 1, 2020, including interim periods in our fiscal year 2020. We are in the process of assessing the impact of this ASU on our consolidated results of operations, cash flows, financial position and disclosures.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to interest rate risk arising from changes in interest rates on the floating rate indebtedness under our term loan. Borrowings under our term loan bear interest at floating rates based on LIBOR, but in no event less than the floor rate of 0.0% plus an applicable margin. Accordingly, fluctuations in market interest rates may increase or decrease our interest expense which will, in turn, increase or decrease our net income and cash flow.

We manage a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps under which we receive floating rate payments based on the greater of LIBOR and the floor rate under our term loan and make payments based on a fixed rate. As of June 30, 2016, we were party to interest rate swaps covering a total notional amount of $419.8 million. Under our swap agreements, the rate that we pay to banks in exchange for LIBOR ranges between 0.89% and 1.20%.

For a discussion of our market risk associated with foreign currency risk, interest rate risk and credit risk, see Part II, Item 7A—“Quantitative and Qualitative Disclosures about Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2015 and Part I, Item 3—“Quantitative and Qualitative Disclosures about Market Risk” in our Quarterly Report on Form 10-Q for the three months ended March 31, 2016.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are the Company’s controls and other procedures which are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 (“Exchange Act”) is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required

47

disclosure. As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to the Exchange Act Rule 13a-15(b). Based upon that evaluation, the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective in timely alerting them to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Company’s periodic SEC filings.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarterly period ended June 30, 2015 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

In making its assessment of the changes in internal controls over financial reporting during the quarterly period ended June 30, 2016, management excluded an evaluation of the internal controls over financial reporting in respect of acquisitions made in the six months ended June 30, 2016. See Note 3 to the Unaudited Consolidated Financial Statements for a discussion of these acquisitions.

48

PART II

Item 1. Legal Proceedings

There are no legal proceedings pending against us that we believe are likely to have a material adverse effect on our business, results of operations and financial condition.

Item 1A. Risk Factors

We have disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015 the risk factors that materially affect our business, financial condition or results of operations. You should carefully consider the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2015 and the other information that appears elsewhere in this Quarterly Report on Form 10-Q. You should be aware that these risk factors and other information may not describe every risk facing our Company. Additional risks and uncertainties not currently known to us also may materially adversely affect our business, financial condition and/or results of operations.

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

None.

Use of Proceeds

None.

Purchase of Equity Securities by the Issuer and Affiliated Purchasers

In February 2015, our board of directors authorized a plan to repurchase up to $250.0 million in value of our common shares. During the three months ended March 31, 2016, we completed $250.0 million in share purchases under this program, and in February 2016 our board of directors approved an additional $250 million share repurchase program, bringing the total authorization under our existing program to $500 million since February 2015. Our share repurchase plan does not obligate us to acquire any specific number of shares and does not specify an expiration date. All shares repurchased under the plan will be cancelled.

Share repurchase activity during the three months ended June 30, 2016 was as follows:

Period	Total Number of Shares Purchased		Average Price Paid per Share ($)		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program ($)
April 1-April 30, 2016		—		—		—		240,066,379
May 1-May 31, 2016		767,643		27.22		767,643		219,168,755
June 1-June 30, 2016		1,190,193		27.30		1,190,193		186,678,940

Item 3. Defaults Upon Senior Securities

None.

Item 5. Other Information

None.

Item 6. Exhibits

3.1	Memorandum of Association of the Registrant (incorporated by reference to Exhibit 3.1 to Amendment No. 2 of the Registrant’s Registration Statement on Form S-1 (File No. 333-142875) filed with the SEC on July 16, 2007).
3.3	Bye-laws of the Registrant (incorporated by reference to Exhibit 3.3 to Amendment No. 4 of the Registrant’s Registration Statement on Form S-1 (File No. 333-142875) filed with the SEC on August 1, 2007).

49

31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	XBRL Instance Document (1)
101.SCH	XBRL Taxonomy Extension Schema Document (1)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (1)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (1)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (1)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (1)

* Filed with this Quarterly Report on Form 10-Q.

(1) Filed as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2015 and June 30, 2016, (ii) Consolidated Statements of Income for the three months and six months ended June 30, 2015 and June 30, 2016, (iii) Consolidated Statements of Comprehensive Income (Loss) for the three months and six months ended June 30, 2015 and June 30, 2016, (iv) Consolidated Statements of Equity for the six months ended June 30, 2015, Consolidated Statements of Equity and Redeemable Non-controlling Interest for the six months ended June 30, 2016, (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and June 30, 2016, and (vi) Notes to the Consolidated Financial Statements.

50

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 8, 2016

GENPACT LIMITED

By:	/s/ N.V. Tyagarajan
	N.V. Tyagarajan
	Chief Executive Officer
By:	/s/ Edward J. Fitzpatrick
	Edward J. Fitzpatrick
	Chief Financial Officer

51

EXHIBIT INDEX

Exhibit Number	Description
3.1	Memorandum of Association of the Registrant (incorporated by reference to Exhibit 3.1 to Amendment No. 2 of the Registrant’s Registration Statement on Form S-1 (File No. 333-142875) filed with the SEC on July 16, 2007).
3.3	Bye-laws of the Registrant (incorporated by reference to Exhibit 3.3 to Amendment No. 4 of the Registrant’s Registration Statement on Form S-1 (File No. 333-142875) filed with the SEC on August 1, 2007).
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	XBRL Instance Document (1)
101.SCH	XBRL Taxonomy Extension Schema Document (1)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (1)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (1)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (1)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (1)

* Filed with this Quarterly Report on Form 10-Q.

(1) Filed as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2015 and June 30, 2016, (ii) Consolidated Statements of Income for the three months and six months ended June 30, 2015 and June 30, 2016, (iii) Consolidated Statements of Comprehensive Income (Loss) for the three months and six months ended June 30, 2015 and June 30, 2016, (iv) Consolidated Statements of Equity for the six months ended June 30, 2015, Consolidated Statements of Equity and Redeemable Non-controlling Interest for the six months ended June 30, 2016, (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and June 30, 2016, and (vi) Notes to the Consolidated Financial Statements.

52

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, N.V. Tyagarajan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Genpact Limited for the period ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2016

/S/ N.V. TYAGARAJAN

N.V. Tyagarajan

Chief Executive Officer

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Edward J. Fitzpatrick, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Genpact Limited for the period ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2016

/S/ EDWARD J. FITZPATRICK

Edward J. Fitzpatrick

Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of the Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Genpact Limited (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, N.V. Tyagarajan, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 8, 2016

/S/ N.V. TYAGARAJAN

N.V. Tyagarajan

Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of the Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Genpact Limited (the “Company”) on Form 10-Q for the period ended June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Edward J. Fitzpatrick, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 8, 2016

/S/ EDWARD J. FITZPATRICK

Edward J. Fitzpatrick

Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 29, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	G
Entity Registrant Name	GENPACT LTD
Entity Central Index Key	0001398659
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		207,294,663

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 407,260	$ 450,907
Accounts receivable, net	598,228	590,137
Prepaid expenses and other current assets	196,841	154,025
Total current assets	1,202,329	1,195,069
Property, plant and equipment, net	185,643	175,396
Deferred tax assets	80,114	99,395
Investment in equity affiliates	6,230	6,677
Intangible assets, net	84,421	98,601
Goodwill	1,055,968	1,038,346
Other assets	219,810	180,005
Total assets	2,834,515	2,793,489
Current liabilities
Short-term borrowings	60,000	21,500
Current portion of long-term debt	39,158	39,134
Accounts payable	12,373	10,086
Income taxes payable	43,911	24,122
Accrued expenses and other current liabilities	417,304	499,638
Total current liabilities	572,746	594,480
Long-term debt, less current portion	717,745	737,332
Deferred tax liabilities	2,840	2,093
Other liabilities	186,342	155,228
Total liabilities	1,479,673	1,489,133
Redeemable non-controlling interest	2,778
Shareholders' equity
Preferred shares, $0.01 par value, 250,000,000 authorized, none issued
Common shares, $0.01 par value, 500,000,000 authorized, 211,472,312 and 208,953,289 issued and outstanding as of December 31, 2015 and June 30, 2016, respectively	2,086	2,111
Additional paid-in capital	1,373,679	1,342,022
Retained earnings	448,867	411,508
Accumulated other comprehensive income (loss)	(472,568)	(451,285)
Total equity	1,352,064	1,304,356
Commitments and contingencies
Total liabilities, redeemable non-controlling interest and equity	$ 2,834,515	$ 2,793,489

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Preferred shares, par value	$ 0.01	$ 0.01
Preferred shares, authorized	250,000,000	250,000,000
Preferred shares, issued	0	0
Common shares, par value	$ 0.01	$ 0.01
Common shares, authorized	500,000,000	500,000,000
Common shares, issued	208,953,289	211,472,312
Common shares, outstanding	208,953,289	211,472,312

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net revenues	$ 630,523	$ 609,532	$ 1,240,226	$ 1,196,685
Cost of revenue	383,755	366,304	756,603	723,780
Gross profit	246,768	243,228	483,623	472,905
Operating expenses:
Selling, general and administrative expenses	165,197	149,230	325,346	297,978
Amortization of acquired intangible assets	6,493	7,315	12,638	14,656
Other operating (income) expense, net	(4,862)	(2,670)	(9,923)	(3,132)
Income from operations	79,940	89,353	155,562	163,403
Foreign exchange gains (losses), net	4,808	7,433	3,810	(112)
Interest income (expense), net	(3,433)	(17,352)	(6,271)	(26,377)
Other income (expense), net	503	811	1,381	1,269
Income before equity-method investment activity, net and income tax expense	81,818	80,245	154,482	138,183
Gain (loss) on equity-method investment activity, net	(2,074)	(2,340)	(4,219)	(4,563)
Income before income tax expense	79,744	77,905	150,263	133,620
Income tax expense	15,395	15,204	27,638	26,266
Net income	64,349	62,701	122,625	107,354
Net loss (income) attributable to redeemable non-controlling interest	882		1,171
Net income attributable to Genpact Limited shareholders	65,231	62,701	123,796	107,354
Net income available to Genpact Limited common shareholders	$ 65,231	$ 62,701	$ 123,796	$ 107,354
Earnings per common share attributable to Genpact Limited common shareholders
Basic	$ 0.31	$ 0.29	$ 0.59	$ 0.49
Diluted	$ 0.31	$ 0.28	$ 0.58	$ 0.48
Weighted average number of common shares used in computing earnings per common share attributable to Genpact Limited common shareholders
Basic	210,178,050	218,525,149	210,479,108	219,208,922
Diluted	213,803,134	220,962,306	213,848,050	221,654,703

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net Income (loss)	$ 64,349	$ 62,701	$ 122,625	$ 107,354
Other comprehensive income:
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7)	(3,555)	(10,173)	(1,585)	11,660
Genpact Limited Shareholders
Net Income (loss)	65,231	62,701	123,796	107,354
Other comprehensive income:
Currency translation adjustments	(25,055)	(9,491)	(19,838)	(20,670)
Net income (loss) on cash flow hedging derivatives, net of taxes (Note 7)	(3,555)	(10,173)	(1,585)	11,660
Retirement benefits, net of taxes	(13)	(174)	140	112
Other comprehensive income (loss)	(28,623)	(19,838)	(21,283)	(8,898)
Comprehensive income (loss)	36,608	$ 42,863	102,513	$ 98,456
Redeemable non-controlling interest
Net Income (loss)	(882)		(1,171)
Other comprehensive income:
Currency translation adjustments	39		39
Other comprehensive income (loss)	39		39
Comprehensive income (loss)	$ (843)		$ (1,132)

XML

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common shares	Additional Paid- in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total Equity	Redeemable non-controlling interest
Beginning balance, value (in shares) at Dec. 31, 2014		218,684,205
Beginning balance, value at Dec. 31, 2014		$ 2,184	$ 1,296,730	$ 398,706	$ (412,484)	$ 1,285,136
Issuance of common shares on exercise of options (Note 16) (in shares)		728,948
Issuance of common shares on exercise of options (Note 16)		$ 7	6,193			6,200
Issuance of common shares under the employee stock purchase plan (Note 16) (in shares)		65,055
Issuance of common shares under the employee stock purchase plan (Note 16)		$ 1	1,308			1,309
Net settlement on vesting of restricted share units (Note 16)		$ 1	(1,007)			(1,006)
Net settlement on vesting of restricted share units (Note 16), shares		136,922
Net settlement on vesting of performance units (Note 16)		$ 8	(8)
Net settlement on vesting of performance units (Note 16), shares		846,114
Stock repurchased and retired (Note 17)		$ (36)		(81,363)		(81,399)
Stock repurchased and retired (Note 17), shares	(3,628,449)	(3,628,449)
Expenses related to stock purchase (Note 17)				(73)		(73)
Stock-based compensation expense (Note 16)			11,314			11,314
Comprehensive income:
Net income	$ 107,354			107,354		107,354
Other comprehensive income					(8,898)	(8,898)
End balance, value (in shares) at Jun. 30, 2015		216,832,795
End balance, value at Jun. 30, 2015		$ 2,165	1,314,530	424,624	(421,382)	1,319,937
Beginning balance, value (in shares) at Dec. 31, 2015	211,472,312	211,472,312
Beginning balance, value at Dec. 31, 2015		$ 2,111	1,342,022	411,508	(451,285)	1,304,356
Issuance of common shares on exercise of options (Note 16) (in shares)	631,422	631,422
Issuance of common shares on exercise of options (Note 16)		$ 6	10,051			10,057
Issuance of common shares under the employee stock purchase plan (Note 16) (in shares)		60,636
Issuance of common shares under the employee stock purchase plan (Note 16)		$ 1	1,489			1,490
Net settlement on vesting of restricted share units (Note 16)		$ 1	(98)			(97)
Net settlement on vesting of restricted share units (Note 16), shares		102,954
Stock repurchased and retired (Note 17)		$ (33)		(86,371)		(86,404)
Stock repurchased and retired (Note 17), shares	(3,314,035)	(3,314,035)
Excess tax benefit on stock-based Compensation			6,699			6,699
Expenses related to stock purchase (Note 17)				(66)		(66)
Stock-based compensation expense (Note 16)			13,516			13,516
Acquisition of redeemable non-controlling interest							$ 3,910
Comprehensive income:
Net income	$ 122,625			123,796		123,796	(1,171)
Other comprehensive income					(21,283)	(21,283)	39
End balance, value (in shares) at Jun. 30, 2016	208,953,289	208,953,289
End balance, value at Jun. 30, 2016		$ 2,086	$ 1,373,679	$ 448,867	$ (472,568)	$ 1,352,064	$ 2,778

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net income attributable to Genpact Limited shareholders	$ 123,796	$ 107,354
Net income (loss) attributable to redeemable non-controlling interest	(1,171)
Net income	122,625	107,354
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation and amortization	26,997	26,811
Amortization of debt issuance costs (including loss on extinguishment of debt)	767	12,759
Amortization of acquired intangible assets	12,638	14,656
Intangible assets write-down	5,814
Reserve for doubtful receivables	4,467	1,266
Unrealized loss on revaluation of foreign currency asset/liability	2,055	3,397
Equity-method investment activity, net	4,219	4,563
Excess tax benefit on stock-based compensation	(6,699)
Stock-based compensation expense	13,516	11,314
Deferred income taxes	17,870	(8,242)
Others, net	54	(87)
Change in operating assets and liabilities:
Increase in accounts receivable	(15,137)	(34,451)
Increase in prepaid expenses, other current assets and other assets	(62,414)	(32,423)
Increase in accounts payable	2,881	1,165
Decrease in accrued expenses, other current liabilities and other liabilities	(76,806)	(27,678)
Increase in income taxes payable	26,341	34,176
Net cash provided by operating activities	79,188	114,580
Investing activities
Purchase of property, plant and equipment	(46,595)	(30,172)
Proceeds from sale of property, plant and equipment	236	784
Investment in equity affiliates	(5,283)	(9,924)
Payment for business acquisitions, net of cash acquired	(11,633)	(17,718)
Net cash used for investing activities	(63,275)	(57,030)
Financing activities
Repayment of capital lease obligations	(903)	(1,091)
Payment of debt issuance and refinancing costs		(6,584)
Proceeds from long term debt		800,000
Repayment of long-term debt	(20,000)	(664,875)
Proceeds from Short-term borrowings	60,000	1,451,500
Repayment of Short-term borrowings	(21,500)	(1,565,000)
Proceeds from issuance of common shares under stock-based compensation plans	11,547	7,509
Payment for net settlement of stock-based awards	(97)	(6,532)
Payment of earn-out/deferred consideration	(1,132)	(126)
Payment for stock purchased and retired	(86,404)	(81,399)
Payment for expenses related to stock purchase	(66)	(73)
Excess tax benefit on stock-based compensation	6,699
Net cash used for financing activities	(51,856)	(66,671)
Effect of exchange rate changes	(7,704)	(10,912)
Net decrease in cash and cash equivalents	(35,943)	(9,121)
Cash and cash equivalents at the beginning of the period	450,907	461,788
Cash and cash equivalents at the end of the period	407,260	441,755
Supplementary information
Cash paid during the period for interest	9,125	14,671
Cash paid during the period for income taxes	30,269	24,706
Property, plant and equipment acquired under capital lease obligations	$ 959	$ 876

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Organization

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Organization

1. Organization

The Company is a provider of digitally-powered business process management and services. The architect of the Lean Digital^SM enterprise, the Company uses its patented Smart Enterprise Processes (SEP^SM) framework to reimagine its clients’ operating models end-to-end, including their middle and back offices. This creates Intelligent Operations^SM that the Company helps to design, transform, and run. Today, the Company generates impact for a few hundred strategic clients, including approximately one fifth of the Fortune Global 500, and has grown to over 75,000 people in 25 countries.

Prior to December 30, 2004, the business of the Company was conducted through various entities and divisions of GE. On December 30, 2004, in a series of transactions referred to as the “2004 Reorganization,” GE transferred such operations to the Company. In August 2007, the Company completed an initial public offering of its common shares. On October 25, 2012, Glory Investments A Limited, an affiliate of Bain Capital Investors, LLC (“Bain Capital”), became the Company’s largest shareholder when, together with its affiliated assignees and two additional co-investors, it purchased 67,750,678 common shares of the Company from the Company’s initial private equity investors.

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Summary of significant accounting policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Summary of significant accounting policies

2. Summary of significant accounting policies

(a) Basis of preparation and principles of consolidation

The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission 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, 2015.

The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year.

The accompanying unaudited interim consolidated 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 on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation.

Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to non-controlling interest in the consolidated statements of income.

(b) Use of estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

(c) Business combinations, goodwill and other intangible assets

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

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 are carried at cost less accumulated amortization based on their estimated useful lives as follows:

Customer-related intangible assets	1-14 years
Marketing-related intangible assets	1-10 years
Other intangible assets	3-9 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.

(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 clients. GE accounted for 18% and 16% of receivables as of December 31, 2015 and June 30, 2016, respectively. GE accounted for 19% and 17% of revenues for the six months and three months ended June 30, 2015 and June 30, 2016, respectively.

(e) Recently adopted accounting pronouncements

The following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures:

Effective January 1, 2016, the Company has adopted FASB ASU 2015-01 (Topic 225): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the financial statements.

2. Summary of significant accounting policies (Continued)

Effective January 1, 2016, the Company has adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract.

Effective January 1, 2016, the Company has adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.

Effective January 1, 2016, the Company has adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.

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Business acquisitions

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Business acquisitions

3. Business acquisitions

A. Acquisitions

(a) Endeavour Software Technologies Private Limited

On April 13, 2016, the Company acquired 100% of the outstanding equity interest in Endeavour Software Technologies Private Limited (“Endeavour”), a private limited company incorporated under the laws of India. The preliminary estimated total purchase consideration for Endeavour is $14,443, subject to adjustment for closing date working capital and net debt. This amount includes the estimated fair value of the contingent earn-out consideration and cash consideration of $10,028, net of cash acquired of $2,345, and a preliminary adjustment for working capital and net debt. Of this amount, $639 has been withheld for payment of taxes and $95 is payable to one of the sellers. The purchase agreement also provides for contingent earn-out consideration ranging from $0 to $3,500, payable based on future performance relative to the thresholds specified in the earn-out calculation. This acquisition enhances Genpact’s digital capabilities by adding critical end-to-end mobility services.

In connection with the transaction, the Company recorded $800 in customer-related intangibles, $900 in marketing-related intangibles and $950 in other intangible assets, which have a weighted average amortization period of three years. Goodwill arising from the acquisition amounted to $8,870, which has been allocated to the Company’s India reporting unit and is not deductible for tax purposes.

Acquisition-related costs of $338 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 $5,691 and assumed certain liabilities amounting to $1,853. 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) Strategic Sourcing Excellence LLC

On January 8, 2016, the Company acquired 51% of the outstanding equity interest in Strategic Sourcing Excellence LLC (“SSE”), a Delaware limited liability company. The preliminary estimated purchase consideration for SSE is $14,490, subject to adjustment for closing date working capital, transaction expenses and indebtedness. This amount includes the fair value of earn-out consideration, initial cash consideration of $2,550, and a preliminary adjustment for working capital, transaction expenses and indebtedness. The equity purchase agreement also provides for contingent earn-out consideration of up to $20,000, payable based on future performance relative to the thresholds specified in the earn-out calculation. Up to $9,800 of the total potential earn-out consideration, representing the selling equityholders’ 49% interest in SSE, is payable only if either the put or call option, each as described below, is exercised.

The equity purchase agreement grants the Company a call option to purchase the remaining 49% equity interest in SSE, which option the Company has the right to exercise between January 1, 2018 and January 31, 2018. If the Company does not exercise its call option during such period, the selling equityholders have the right to exercise a put option between March 1, 2018 and April 30, 2018 to require the Company to purchase their 49% interest in SSE at a price ranging from $2,450 to $2,950. The equity purchase agreement also provides for contingent earn-out consideration ranging from $0 to $9,800, included as part of overall contingent earn-out consideration and payable only if either the call or put option is exercised. This acquisition strengthens the Company’s sourcing and procurement consulting domain expertise.

Acquisition-related costs of $164 have been included in selling, general and administrative expenses as incurred. Through this transaction, the Company acquired assets with a value of $327 and assumed liabilities amounting to $617. The preliminary estimated purchase consideration for the Company’s interests in SSE is $14,490, including the fair value of earn-out consideration and a preliminary adjustment for working capital, transaction expenses and indebtedness. The results of operations of the acquired business, the fair value of the acquired assets and assumed liabilities, and redeemable non-controlling interest are included in the Company’s Consolidated Financial Statements with effect from the date of the acquisition.

In connection with the transaction, the Company recorded $300 in customer-related intangible assets with an amortization period of five years. Goodwill arising from the acquisition amounted to $14,479, which has been allocated to the Company’s India reporting unit and is deductible for tax purposes.

B. Asset held for sale

The Company is in the process of selling its cloud-hosted technology platform for the Indian rural banking sector (the “Business”), which was acquired in 2012.  As of June 30, 2016, net assets relating to the Business amounted to $2,014.

 During the three and six months ended June 30, 2016, net revenues attributable to the Business were $4,234 and $9,162, and net income was $802 and $182, respectively. The operations and net assets of the Business are not significant to the Company’s operations. The Company expects to complete the divestiture of the Business within the next 12 months.

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Cash and cash equivalents

6 Months Ended

Jun. 30, 2016

Cash And Cash Equivalents [Abstract]

Cash and cash equivalents

4. Cash and cash equivalents

Cash and cash equivalents as of December 31, 2015 and June 30, 2016 comprise:

	As of December 31,		As of June 30,
	2015		2016
Cash and other bank balances	$	450,907	$	407,260
Total	$	450,907	$	407,260

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Accounts receivable, net of reserve for doubtful receivables

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Accounts receivable, net of reserve for doubtful receivables

5. Accounts receivable, net of reserve for doubtful receivables

The following table provides details of the Company’s reserve for doubtful receivables:

	Year ended December 31,			Six months ended
	2015			June 30, 2016
Opening Balance as of January 1	$	15,192		$	11,530
Additions charged to cost and expense		2,449			4,467
Deductions/Effect of exchange rate fluctuations		(6,111	)		(566	)
Closing Balance	$	11,530		$	15,431

Accounts receivable were $601,667 and $613,659, and the reserves for doubtful receivables were $11,530 and $15,431, resulting in net accounts receivable balances of $590,137 and $598,228 as of December 31, 2015 and June 30, 2016, respectively. In addition, accounts receivable due after one year of $8,348 and $6,387 as of December 31, 2015 and June 30, 2016, respectively, are included under other assets in the Consolidated Balance Sheets.

Accounts receivable from related parties were $1,980 and $1,192 as of December 31, 2015 and June 30, 2016, respectively. There are no reserves for doubtful receivables in respect of amounts due from related parties.

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Fair value measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair value measurements

6. Fair value measurements

The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2015 and June 30, 2016:

	As of June 30, 2016
	Fair Value Measurements at Reporting Date Using
			Quoted Pricesin Active Marketsfor Identical Assets		Significant Other ObservableInputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Note a, c)	$	34,832	$	-	$	34,832	$	-
Total	$	34,832	$	—	$	34,832	$	—
Liabilities
Earnout Consideration (Note b, d)	$	18,438	$	-	$	-	$	18,438
Derivative instruments (Note b, c)	$	66,197	$	-	$	66,197	$	-
Total	$	84,635	$	—	$	66,197	$	18,438
Redeemable non-controlling interest (Note e)	$	2,778	$	-	$	-	$	2,778

	As of December 31, 2015
	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Note a, c)	$	30,380	$	-	$	30,380	$	-
Total	$	30,380	$	—	$	30,380	$	—
Liabilities
Earnout Consideration (Note b, d)	$	22,820	$	-	$	-	$	22,820
Derivative instruments (Note b, c)	$	59,620	$	-	$	59,620	$	-
Total	$	82,440	$	—	$	59,620	$	22,820

(a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets.

(b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.

(c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database.

(d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy.

(e) The Company’s estimate of the fair value of redeemable non-controlling interest as of June 30, 2016 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions.

6. Fair value measurements (Continued)

The following table provides a roll-forward of the fair value of contingent consideration categorized as level 3 for the three and six months ended June 30, 2015 and 2016:

	Three months ended						Six months ended
	June 30,						June 30,
	2015			2016			2015			2016
Opening Balance	$	33,415		$	20,853		$	33,990		$	22,820
Earn-out consideration payable in connection with    acquisitions		—			2,070			—			10,190
Payments made on earn-out consideration		—			(187	)		(126	)		(1,152	)
Change in fair value and others		(730	)		(4,298	)		(1,179	)		(13,420	)
Ending balance	$	32,685		$	18,438		$	32,685		$	18,438

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Derivative financial instruments

6 Months Ended

Jun. 30, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative financial instruments

GENPACT LIMITED AND ITS SUBSIDIARIES

Notes to the Consolidated Financial Statements

(Unaudited)

(In thousands, except per share data and share count)

7. Derivative financial instruments

The Company is exposed to the risk of rate fluctuations on its foreign currency assets and liabilities and on foreign currency denominated forecasted cash flows. The Company has established risk management policies, including the use of derivative financial instruments to hedge foreign currency assets and liabilities, foreign currency denominated forecasted cash flows and interest rate risk. These derivative financial instruments are largely deliverable and non-deliverable forward foreign exchange contracts and interest rate swaps. The Company enters into these contracts with counterparties that are banks or other financial institutions, and the Company considers the risk of non-performance by such counterparties not to be material. The forward foreign exchange contracts and interest rate swaps mature between 0 and 54 months and the forecasted transactions are expected to occur during the same period.

The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure:

	Notional principal amounts (note a)				Balance sheet exposure asset (liability) (note b)
	As of December 31, 2015		As of June 30, 2016		As of December 31, 2015			As of June 30, 2016
Foreign exchange forward contracts denominated in:
United States Dollars (sell) Indian Rupees (buy)	$	1,139,400	$	1,093,400	$	(48,197	)	$	(38,642	)
United States Dollars (sell) Mexican Peso (buy)		8,520		4,620		(1,163	)		(851	)
United States Dollars (sell) Philippines Peso (buy)		58,500		37,050		(1,387	)		(514	)
Euro (sell) United States Dollars (buy)		146,719		142,546		9,109			5,936
Euro (sell) Romanian Leu (buy)		39,027		22,295		567			527
Japanese Yen (sell) Chinese Renminbi (buy)		62,740		85,348		(1,379	)		(10,635	)
Pound Sterling (sell) United States Dollars (buy)		118,438		132,489		7,496			15,147
Australian Dollars (sell) United States Dollars (buy)		106,544		89,661		5,714			1,793
Interest rate swaps (floating to fixed)		-		419,805		-			(4,126	)
						(29,240	)		(31,365	)

(a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements.

(b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date.

FASB guidance on Derivatives and Hedging requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the Balance Sheet. In accordance with the FASB guidance on Derivatives and Hedging, the Company designates foreign exchange forward contracts and interest rate swaps as cash flow hedges. Foreign exchange forward contracts are entered into to cover the effects of future exchange rate variability on forecasted revenues and purchases of services, and interest rate swaps are entered into to cover interest rate fluctuation risk. In addition to this program, the Company uses derivative instruments that are not accounted for as hedges under the FASB guidance in order to hedge foreign exchange risks related to balance sheet items such as receivables and intercompany borrowings denominated in currencies other than the Company’s underlying functional currency.

7. Derivative financial instruments (Continued)

The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below:

	Cash flow hedges				Non-designated
	As of December 31, 2015		As of June 30, 2016		As of December 31, 2015		As of June 30, 2016
Assets
Prepaid expenses and other current assets	$	17,400	$	23,304	$	884	$	92
Other assets	$	12,096	$	11,436	$	-	$	-
Liabilities
Accrued expenses and other current liabilities	$	34,576	$	28,931	$	34	$	666
Other liabilities	$	25,010	$	36,600	$	-	$	-

7. Derivative financial instruments (Continued)

Cash flow hedges

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain (loss) on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction is recognized in the consolidated statements of income. Gains (losses) on the derivatives, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in earnings as incurred.

In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below:

	Three months ended June 30,																	Six months ended June 30,
	2015								2016									2015									2016
	Before- Tax amount			Tax (Expense) or Benefit		Net of tax Amount			Before- Tax amount			Tax (Expense) or Benefit			Net of tax Amount			Before- Tax amount			Tax (Expense) or Benefit			Net of tax Amount			Before- Tax amount			Tax (Expense) or Benefit			Net of tax Amount
Opening balance	$	(32,968	)	$	11,661	$	(21,307	)	$	(27,267	)	$	8,977		$	(18,290	)	$	(66,786	)	$	23,646		$	(43,140	)	$	(30,090	)	$	9,830		$	(20,260	)
Net gains (losses) reclassified into    statement of income on completion of    hedged transactions		(8,659	)		3,062		(5,597	)		(2,585	)		587			(1,998	)		(17,913	)		6,313			(11,600	)		(5,487	)		1,289			(4,198	)
Changes in fair value of effective portion of    outstanding derivatives, net		(24,331	)		8,561		(15,770	)		(6,108	)		555			(5,553	)		233			(173	)		60			(6,187	)		404			(5,783	)
Gain (loss) on cash flow hedging    derivatives, net		(15,672	)		5,499		(10,173	)		(3,523	)		(32	)		(3,555	)		18,146			(6,486	)		11,660			(700	)		(885	)		(1,585	)
Closing balance	$	(48,640	)	$	17,160	$	(31,480	)	$	(30,790	)	$	8,945		$	(21,845	)	$	(48,640	)	$	17,160		$	(31,480	)	$	(30,790	)	$	8,945		$	(21,845	)

7. Derivative financial instruments (Continued)

The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below:

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion)											Location of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)	Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)
	Three months ended June 30,						Six months ended June 30,						Three months ended June 30,						Six months ended June 30,
	2015			2016			2015		2016				2015			2016			2015			2016
Forward foreign exchange contracts	$	(24,331	)	$	(3,522	)	$	233	$	(1,675	)	Revenue	$	3,815		$	2,126		$	6,310		$	5,997
Interest rate swaps	$	-		$	(2,586	)	$	-	$	(4,512	)	Cost of revenue	$	(10,013	)	$	(3,405	)	$	(19,440	)	$	(8,717	)
												Selling, general and administrative expenses	$	(2,461	)	$	(919	)	$	(4,783	)	$	(2,380	)
												Interest expense	$	-		$	(387	)	$	-		$	(387	)
	$	(24,331	)	$	(6,108	)	$	233	$	(6,187	)		$	(8,659	)	$	(2,585	)	$	(17,913	)	$	(5,487	)

Gain (loss) recognized in income on the ineffective portion of derivatives and the amount excluded from effectiveness testing are $0 for the three and six months ended June 30, 2015 and 2016, respectively.

7. Derivative financial instruments (Continued)

Non-designated Hedges

Derivatives not designated as hedging instruments	Location of Gain (Loss) recognized in Statement of Income on Derivatives	Amount of Gain (Loss) recognized in Statement of Income on Derivatives
		Three months ended June 30,					Six months ended June 30,
		2015		2016			2015		2016
Forward foreign exchange    contracts (Note a)	Foreign exchange gains (losses), net	$	1,596	$	(895	)	$	3,840	$	239
		$	1,596	$	(895	)	$	3,840	$	239

(a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income.

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Prepaid expenses and other current assets

6 Months Ended

Jun. 30, 2016

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Prepaid expenses and other current assets

8. Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following:

	As of December 31,		As of June 30,
	2015		2016
Advance income and non-income taxes	$	52,953	$	89,148
Deferred transition costs		36,620		39,847
Derivative instruments		18,284		23,396
Prepaid expenses		12,565		17,419
Customer acquisition cost		6,687		9,410
Employee advances		3,878		5,309
Deposits		1,820		1,492
Advances to suppliers		8,028		2,311
Others		13,190		8,509
	$	154,025	$	196,841

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Property, plant and equipment, net

6 Months Ended

Jun. 30, 2016

Property Plant And Equipment [Abstract]

Property, plant and equipment, net

9. Property, plant and equipment, net

Property, plant and equipment, net consist of the following:

	As of December 31,			As of June 30,
	2015			2016
Property, plant and equipment, gross	$	556,518		$	583,143
Less: Accumulated depreciation and amortization		(381,122	)		(397,500	)
Property, plant and equipment, net	$	175,396		$	185,643

Depreciation expense on property, plant and equipment for the six months ended June 30, 2015 and 2016 was $23,314 and $22,656, respectively, and for the three months ended June 30, 2015 and 2016 was $11,597 and $11,552, respectively. Computer software amortization for the six months ended June 30, 2015 and 2016 amounted to $4,657 and $4,808, respectively, and for the three months ended June 30, 2015 and 2016 amounted to $2,295 and $2,463, respectively.

The depreciation and amortization expenses set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $1,160 and $467 for the six months ended June 30, 2015 and 2016, respectively, and $599 and $174 for the three months ended June 30, 2015 and 2016, respectively.

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Goodwill and intangible assets

6 Months Ended

Jun. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

10. Goodwill and intangible assets

The following table presents the changes in goodwill for the year ended December 31, 2015 and six months ended June 30, 2016:

	As of December 31,			As of June 30,
	2015			2016
Opening balance	$	1,057,214		$	1,038,346
Goodwill relating to acquisitions consummated during the    period		7,674			23,349
Impact of measurement period adjustments		(135	)		—
Effect of exchange rate fluctuations		(26,407	)		(5,727	)
Closing balance	$	1,038,346		$	1,055,968

The total amount of goodwill deductible for tax purposes was $36,390 and $37,214 as of December 31, 2015 and June 30, 2016, respectively.

The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows:

	As of December 31, 2015						As of June 30, 2016
	Gross carrying amount		Accumulated amortization & Impairment		Net		Gross carrying amount		Accumulated amortization & Impairment		Net
Customer-related intangible assets	$	319,035	$	247,463	$	71,572	$	317,439	$	255,184	$	62,255
Marketing-related intangible assets		42,749		27,021		15,728		42,450		28,339		14,111
Other intangible assets		29,729		18,427		11,301		32,341		24,285		8,055
	$	391,513	$	292,911	$	98,601	$	392,230	$	307,808	$	84,421

Amortization expenses for intangible assets disclosed in the consolidated statements of income under amortization of acquired intangible assets for the six months ended June 30, 2015 and 2016 were $14,656 and $12,638, respectively, and for the three months ended June 30, 2015 and 2016 were $7,315 and $6,493, respectively.

During the three months ended March 31, 2016, the Company tested an intangible software asset for recoverability as a result of a downward revision to the forecasted cash flows to be generated by the intangible asset.

Based on the results of such testing, the Company determined that the carrying value of the intangible asset exceeded the estimated undiscounted cash flows by $4,943 and recorded a charge to reduce the carrying value by this amount. The Company used a combination of the income and cost approaches to determine the fair value of the intangible asset for the purpose of calculating the resulting charge. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income.

During the three months ended June 30, 2016, the Company tested a customer-related intangible asset for recoverability as a result of the termination of a client contract. Based on the results of such testing, the Company recorded a charge in the amount of the asset’s total carrying value of $871. This charge has been recorded in other operating (income) expenses, net in the consolidated statement of income.

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Short-term borrowings

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Short-term borrowings

11. Short-term borrowings

The Company has the following borrowing facilities:

(a) Fund-based and non-fund-based credit facilities with banks, which are available for operational requirements in the form of overdrafts, letters of credit, guarantees and short-term loans. As of December 31, 2015 and June 30, 2016, the limits available were $15,781and $15,145, respectively, of which $10,301 and $9,545 was utilized, constituting non-funded drawdown.  

(b) A fund-based and non-fund based revolving credit facility of $350,000, which the company obtained in June 2015 as described in note 12. This facility replaces the Company’s $250,000 facility initially entered into in August 2012 and subsequently amended in June 2013. As of December 31, 2015 and June 30, 2016, a total of $22,947 and $60,978, respectively, was utilized, of which $21,500 and $60,000, respectively, constituted funded drawdown and $1,447 and $978, respectively, constituted non-funded drawdown. The revolving facility expires in June 2020. The funded drawdown amount bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum as of December 31, 2015. As of June 30, 2016, the revolving facility bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum. The unutilized amount on the revolving facility bore a commitment fee of 0.25% and 0.25% as of December 31, 2015 and June 30, 2016, respectively. The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio. For the six months ended June 30, 2016, the Company was in compliance with the financial covenants.

(c) On January 27, 2015 and March 23, 2015, the Company obtained short-term loans in the amount of $672,500 and $737,500, respectively, from Morgan Stanley Senior Funding, Inc. in connection with certain internal reorganization transactions. These loans bore interest at a rate of 2.00% per annum and were fully repaid on January 30, 2015 and March 26, 2015, respectively. The Company recorded $1,045 in debt issuance expenses and $235 in interest with respect to the amounts borrowed under the short-term loans.

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Long-term debt

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Long-term debt

12. Long-term debt

In June 2015, the Company refinanced its 2012 credit facility through a new credit facility, comprised of an $800,000 term loan and a $350,000 revolving credit facility. Borrowings under the new facility bear interest at a rate equal to, at the election of the Company, either LIBOR plus an applicable margin equal to 1.50% per annum or a base rate plus an applicable margin equal to 0.50% per annum, in each case subject to adjustment based on the Company’s debt ratings provided by Standard & Poor’s Rating Services and Moody’s Investors Service, Inc. Based on the Company’s election and current credit rating, the applicable interest rate is equal to LIBOR plus 1.50% per annum. As a result of the June 2015 refinancing, the gross outstanding term loan under the previous facility, which amounted to $663,188 as of June 30, 2015, was extinguished, and the Company expensed $10,050, representing accelerated amortization of the existing unamortized debt issuance costs related to the prior facility. Additionally, the refinancing of the revolving facility resulted in the accelerated amortization of $65 relating to the existing unamortized debt issuance cost. The remaining unamortized costs for the revolving facility, together with the fees paid to the Company’s lenders and third parties in connection with the new term loan and revolving facility, will be amortized over the term of the refinanced facility, which ends on June 30, 2020.

As of December 31, 2015 and June 30, 2016, the amount outstanding under the term loan, net of debt amortization expense of $3,534 and $3,097, was $776,466 and $756,903, respectively. As of December 31, 2015 and June 30, 2016, the term loan bore interest at a rate equal to LIBOR plus a margin of 1.50% per annum based on the Company’s election and current credit rating. Indebtedness under the refinanced facility is unsecured. The amount outstanding on the term loan as of June 30, 2016 will be repaid through quarterly payments of $10,000, and the balance will be repaid upon the maturity of the term loan on June 30, 2020.

The maturity profile of the term loan, net of debt amortization expense, is as follows:

Year ended	Amount
2016	$	19,570
2017		39,181
2018		39,226
2019		39,272
2020		619,654
Total	$	756,903

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Accrued expenses and other current liabilities

6 Months Ended

Jun. 30, 2016

Payables And Accruals [Abstract]

Accrued expenses and other current liabilities

13. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:

	As of December 31,		As of June 30,
	2015		2016
Accrued expenses	$	161,672	$	143,226
Accrued employee cost		158,054		110,042
Deferred transition revenue		44,974		47,152
Statutory liabilities		32,149		31,895
Retirement benefits		17,930		19,416
Derivative instruments		34,610		29,597
Advance from customers		19,815		22,275
Earn-out consideration		16,896		3,066
Other liabilities		12,210		9,332
Capital lease obligations		1,328		1,303
	$	499,638	$	417,304

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Other liabilities

6 Months Ended

Jun. 30, 2016

Other Liabilities Disclosure [Abstract]

Other liabilities

14. Other liabilities

Other liabilities consist of the following:

	As of December 31,		As of June 30,
	2015		2016
Accrued employee cost	$	6,901	$	7,070
Deferred transition revenue		66,737		77,047
Retirement benefits		29,689		31,961
Derivative instruments		25,010		36,600
Amount received from GE under indemnification arrangement, pending adjustment		3,549		3,480
Advance from customers		4,485		2,428
Earn-out consideration		5,924		15,372
Others		10,729		10,168
Capital lease obligations		2,204		2,216
	$	155,228	$	186,342

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Employee benefit plans

6 Months Ended

Jun. 30, 2016

Compensation And Retirement Disclosure [Abstract]

Employee benefit plans

15. Employee benefit plans

The Company has employee benefit plans in the form of certain statutory and other schemes covering its employees.

Defined benefit plans

In accordance with Indian law, the Company maintains a defined benefit retirement plan (the “Gratuity Plan”) covering substantially all of its Indian employees. In accordance with Mexican law, the Company provides termination benefits to all of its Mexican employees. In addition, certain of the Company’s subsidiaries in the Philippines and Japan sponsor defined benefit retirement programs.

Net defined benefit plan costs for the three months and six months ended June 30, 2015 and 2016 include the following components:

	Three months ended June 30,						Six months ended June 30,
	2015			2016			2015			2016
Service costs	$	1,389		$	1,430		$	2,773		$	2,833
Interest costs		675			613			1,353			1,311
Amortization of actuarial loss		98			(75	)		183			(19	)
Expected return on plan assets		(558	)		(494	)		(1,107	)		(980	)
Net defined benefit plan costs	$	1,604		$	1,474		$	3,202		$	3,145

Defined contribution plans

During the three and six months ended June 30, 2015 and 2016, the Company contributed the following amounts to defined contribution plans in various jurisdictions:

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
India	$	4,109	$	4,731	$	8,018	$	9,034
U.S.		2,008		2,203		4,636		5,735
U.K.		1,615		1,929		2,655		3,581
China		3,537		3,644		7,053		7,397
Other Regions		1,212		1,084		2,318		2,349
Total	$	12,481	$	13,591	$	24,680	$	28,096

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Stock-based compensation

6 Months Ended

Jun. 30, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based compensation

16. Stock-based compensation

The Company has issued options under the Genpact Global Holdings 2005 Plan (the “2005 Plan”), the Genpact Global Holdings 2006 Plan (the “2006 Plan”), the Genpact Global Holdings 2007 Plan (the “2007 Plan”) and the Genpact Limited 2007 Omnibus Incentive Compensation Plan (the “2007 Omnibus Plan”) to eligible persons, who are employees, directors and certain other persons associated with the Company.

With respect to options granted under the 2005, 2006 and 2007 Plans before the date of adoption of the 2007 Omnibus Plan, if an award granted under any such plan is forfeited or otherwise expires, terminates, or is cancelled without the delivery of shares, then the shares covered by the forfeited, expired, terminated, or cancelled award will be added to the number of shares otherwise available for grant under the respective plans.

Beginning on July 13, 2007, the date of adoption of the 2007 Omnibus Plan, share based awards forfeited, expired, terminated, or cancelled under any of the plans are added to the number of shares otherwise available for grant under the 2007 Omnibus Plan. The 2007 Omnibus Plan was amended and restated on April 11, 2012 to increase the number of common shares authorized for issuance by 5,593,200 shares to 15,000,000 shares.

During the year ended December 31, 2012, the number of common shares authorized for issuance under the 2007 Omnibus Plan and the 2005 Plan was increased by 8,858,823 and 495,915 shares, respectively, as the result of an adjustment to outstanding unvested share awards.

Stock-based compensation costs relating to the foregoing plans during the six months ended June 30, 2015 and 2016 were $11,155 and $13,328, respectively, and for the three months ended June 30, 2015 and 2016 were $6,576 and $8,078, respectively. These costs have been allocated to cost of revenue and selling, general, and administrative expenses.

Stock options

Options granted are subject to a vesting requirement. Options granted under the plan are exercisable into common shares of the Company, have a contractual period of ten years and vest over four to five years unless specified otherwise in the applicable award agreement. The Company recognizes compensation cost over the vesting period of the option. Compensation cost is determined as of the date of grant by estimating the fair value of an option using the Black-Scholes option-pricing model.

The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in the six months ended June 30, 2015 and June 30, 2016.

	Six months ended June 30, 2015			Six months ended June 30, 2016
Dividend yield		—		—
Expected life (in months)		84		84
Risk-free rate of interest		1.99	%	1.56	%
Volatility		34.97	%	27.22	%

16. Stock-based compensation (Continued)

A summary of stock option activity during the six months ended June 30, 2016 is set out below:

	Six months ended June 30, 2016
	Shares arising out of options			Weighted average exercise price		Weighted average remaining contractual life (years)		Aggregate intrinsic value
Outstanding as of January 1, 2016		5,986,845		$	16.99		5.8	$	—
Granted		660,000			27.65		—		—
Forfeited		(85,000)			18.47		—		—
Expired		—			—		—		—
Exercised		(631,422	)		15.93		—		6,890
Outstanding as of June 30, 2016		5,930,423		$	18.27		5.9	$	52,195
Vested as of June 30, 2016 and expected to vest thereafter (Note a)		5,658,217		$	17.88		5.9	$	51,115
Vested and exercisable as of June 30, 2016		3,108,924		$	15.35		4.1	$	35,722
Weighted average grant date fair value of  grants during the period	$	8.88

(a) Options expected to vest reflect an estimated forfeiture rate.

As of June 30, 2016, the total remaining unrecognized stock-based compensation cost for options expected to vest amounted to $15,343, which will be recognized over the weighted average remaining requisite vesting period of 2.7 years.

Restricted share units

The Company has granted restricted share units, or RSUs, under the 2007 Omnibus Plan. Each RSU represents the right to receive one Company common share at a future date. The fair value of each RSU is the market price of a Company common share on the date of the grant. The RSUs granted to date have graded vesting schedules of three months to four years. The compensation expense is recognized on a straight-line basis over the vesting term. A summary of RSUs granted during the six months ended June 30, 2016 is set out below:

	Six months ended June 30, 2016
	Number of Restricted Share Units		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2016		157,390	$	17.67
Granted		54,443		25.91
Vested (Note a)		(14,550)		15.62
Forfeited		(1,135)		14.18
Outstanding as of June 30, 2016		196,148	$	20.13
Expected to vest (Note b)		189,210

(a) RSUs that vested during the period covered were net settled upon vesting by issuing 10,991 shares (net of minimum statutory tax withholding).

(b) The number of RSUs expected to vest reflects an estimated forfeiture rate.

92,692 RSUs vested in the year ended December 31, 2014, in respect of which 91,963 shares were issued in January 2016 after withholding shares to the extent of the minimum statutory withholding taxes.

53,546 RSUs vested in the year ended December 31, 2015, shares in respect of which will be issuable on December 31, 2016 after withholding shares to the extent of minimum statutory withholding taxes.

16. Stock-based compensation (Continued)

As of June 30, 2016, the total remaining unrecognized stock-based compensation cost related to RSUs amounted to $2,133, which will be recognized over the weighted average remaining requisite vesting period of 1.4 years.

Performance units

The Company also grants stock awards in the form of performance units, or PUs, under the 2007 Omnibus Plan.

Each PU represents the right to receive one Company common share at a future date based on the Company’s performance against specified targets. PUs granted to date have vesting schedules of six months to three years. The fair value of each PU is the market price of one common share of the Company on the date of grant and assumes that performance targets will be achieved. PUs granted under the plan are subject to cliff vesting. The compensation expense for such awards is recognized on a straight-line basis over the vesting terms. Over the performance period, the number of shares to be issued is adjusted upward or downward depending on the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized is based on a comparison of the final performance metrics to the specified targets.

A summary of PU activity during the six months ended June 30, 2016 is set out below:

	Six months ended June 30, 2016
	Number of Performance Units		Weighted Average Grant Date Fair Value		Maximum Shares Eligible to Receive
Outstanding as of January 1, 2016		2,499,322	$	19.95		2,499,322
Granted		1,518,374		27.93		3,343,335
Vested		—		—		—
Forfeited		(136,200)		20.65		(159,400)
Adjustment upon final determination of level of performance goal achievement (Note a)		7,274		22.72
Adjustment upon final determination of level of performance goal achievement (Note a)						7,274
Outstanding as of June 30, 2016		3,888,770	$	23.04		5,690,531
Expected to vest (Note b)		3,158,060

(a) Represents an adjustment made in March 2016 to the number of shares subject to the PUs granted in 2015 upon certification of the level of achievement of the performance targets underlying such awards.

(b) The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate.

As of June 30, 2016, the total remaining unrecognized stock-based compensation costs related to PUs amounted to $41,475, which will be recognized over the weighted average remaining requisite vesting period of 2.1 years.

Employee Stock Purchase Plan (ESPP)

On May 1, 2008, the Company adopted the Genpact Limited U.S. Employee Stock Purchase Plan and the Genpact Limited International Employee Stock Purchase Plan (together, the “ESPP”).

The ESPP allows eligible employees to purchase the Company’s common shares through payroll deductions at 90% of the closing price of the Company’s common shares on the last business day of each purchase interval. The dollar amount of common shares purchased under the ESPP must not exceed 15% of the participating employee’s base salary, subject to a cap of $25 per employee per calendar year. With effect from September 1, 2009, the offering periods commence on the first business day in March, June, September and December of each year and end on the last business day of the subsequent May, August, November and February. 4,200,000 common shares have been reserved for issuance in the aggregate over the term of the ESPP.

16. Stock-based compensation (Continued)

During the six months ended June 30, 2015 and 2016, 65,055 and 60,636 common shares, respectively, were issued under ESPP.

The ESPP is considered compensatory under the FASB guidance on Compensation-Stock Compensation.

The compensation expense for the ESPP is recognized in accordance with the FASB guidance on Compensation-Stock Compensation. The compensation expense for the ESPP during the six months ended June 30, 2015 and 2016 was $159 and $188, respectively, and for the three months ended June 30, 2015 and 2016 was $78 and $102, respectively, and has been allocated to cost of revenue and selling, general, and administrative expenses.

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Capital stock

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Capital stock

17. Capital stock

Share repurchases

In February 2015, the Company’s Board of Directors authorized a program to repurchase up to $250,000 in value of the Company’s common shares, and on February 4, 2016, the Company’s Board approved up to an additional $250 million in share repurchases, bringing the total authorization under the Company’s existing program to $500 million. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be purchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the six months ended June 30, 2015 and June 30, 2016, the Company purchased 3,628,449 and 3,314,035 of its common shares, respectively, at a weighted average price of $22.43 and $26.07 per share, respectively, for an aggregate cash amount of $81,399 and $86,404, respectively. The purchased shares have been retired.

The Company records repurchases of its common shares on the settlement date of each transaction. Shares purchased and retired are deducted to the extent of their par value from common stock and from retained earnings for the excess over par value. Direct costs incurred to acquire the shares are included in the total cost of the shares purchased. For the six months ended June 30, 2015 and June 30, 2016, $73 and $66, respectively, was deducted from retained earnings as direct costs related to share repurchases.

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Earnings per share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings per share

18. Earnings per share

The Company calculates earnings per share in accordance with FASB guidance on earnings per share. Basic and diluted earnings per common share give effect to the change in the number of Company common shares outstanding. The calculation of basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the respective periods. Potentially dilutive shares, consisting of outstanding options on common shares, restricted share units, performance units and common shares to be issued under the employee stock purchase plan, have been included in the computation of diluted net earnings per share and the weighted average shares outstanding, except where the result would be anti-dilutive.

The number of stock awards outstanding but not included in the computation of diluted earnings per common share because their effect was anti-dilutive is 3,760,500 and 573,540 for the six months ended June 30, 2015 and 2016, respectively, and 3,593,000 and 830,000 for the three months ended June 30, 2015 and 2016, respectively.

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
Net income available to Genpact Limited common    shareholders	$	62,701	$	65,231	$	107,354	$	123,796
Weighted average number of common shares    used in computing basic earnings per common share		218,525,149		210,178,050		219,208,922		210,479,108
Dilutive effect of stock-based awards		2,437,157		3,625,084		2,445,781		3,368,942
Weighted average number of common shares    used in computing dilutive earnings per common share		220,962,306		213,803,134		221,654,703		213,848,050
Earnings per common share attributable to Genpact    Limited common shareholders
Basic	$	0.29	$	0.31	$	0.49	$	0.59
Diluted	$	0.28	$	0.31	$	0.48	$	0.58

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Cost of revenue

6 Months Ended

Jun. 30, 2016

Other Income And Expenses [Abstract]

Cost of revenue

19. Cost of revenue

Cost of revenue consists of the following:

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
Personnel expenses	$	250,369	$	264,969	$	493,317	$	518,997
Operational expenses		104,297		106,953		207,094		214,495
Depreciation and amortization		11,638		11,833		23,369		23,111
	$	366,304	$	383,755	$	723,780	$	756,603

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Selling, general and administrative expenses

6 Months Ended

Jun. 30, 2016

Selling General And Administrative Expenses [Abstract]

Selling, general and administrative expenses

20. Selling, general and administrative expenses

Selling, general and administrative expenses consist of the following:

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
Personnel expenses	$	107,380	$	117,857	$	213,218	$	226,257
Operational expenses		39,596		45,158		80,158		94,736
Depreciation and amortization		2,254		2,182		4,602		4,353
	$	149,230	$	165,197	$	297,978	$	325,346

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Other operating (income) expense, net

6 Months Ended

Jun. 30, 2016

Other Income And Expenses [Abstract]

Other operating (income) expense, net

21. Other operating (income) expense, net

	Three months ended June 30,						Six months ended June 30,
	2015			2016			2015			2016
Other operating (income) expense	$	(570	)	$	(243	)	$	(1,032	)	$	(741	)
Impairment of intangible assets		—			871			—			5,814
Change in fair value of earn out consideration, deferred consideration (relating to business acquisitions)		(2,100	)		(5,490	)		(2,100	)		(14,996	)
Other operating (income) expense, net	$	(2,670	)	$	(4,862	)	$	(3,132	)	$	(9,923	)

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Interest income (expense), net

6 Months Ended

Jun. 30, 2016

Banking And Thrift Interest [Abstract]

Interest income (expense), net

22. Interest income (expense), net

	Three months ended June 30,						Six months ended June 30,
	2015			2016			2015			2016
Interest income	$	2,001		$	2,160		$	3,197		$	4,524
Interest expense		(9,238	)		(5,593	)		(19,459	)		(10,795	)
Loss on extinguishment of debt		(10,115	)		-			(10,115	)		-
Interest income (expense), net	$	(17,352	)	$	(3,433	)	$	(26,377	)	$	(6,271	)

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Income taxes

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income taxes

23. Income taxes

The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.

As of December 31, 2015, the Company had unrecognized tax benefits amounting to $26,357, including an amount of $24,935, which, if recognized, would impact the effective tax rate.

The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2016 to June 30, 2016:

	2016
Opening balance at January 1	$	26,357
Increase related to prior year tax positions, including recorded    in acquisition accounting		13
Decrease related to prior year tax positions		(790	)
Decrease related to prior year tax position due to lapse of    applicable statute of limitation		(166	)
Increase related to current year tax positions, including recorded in acquisition accounting		61
Decrease related to settlements with tax authorities		(2,000	)
Effect of exchange rate changes		(66	)
Closing balance at June 30	$	23,409

The Company’s unrecognized tax benefits as of June 30, 2016 include an amount of $21,997, which, if recognized, would impact the effective tax rate. As of December 31, 2015 and June 30, 2016, the Company had accrued approximately $4,223 and $3,735, respectively, for interest relating to unrecognized tax benefits. During the year ended December 31, 2015 and the six months ended June 30, 2016, the company recognized approximately $1,152 and ($384), respectively, excluding exchange rate differences, for interest on unrecognized tax benefits. As of December 31, 2015 and June 30, 2016, the Company had accrued approximately $958 and $887, respectively, for penalties.

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Related party transactions

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related party transactions

24. Related party transactions

The Company has entered into related party transactions with its non-consolidating affiliates. The Company has also entered into related party transactions with a significant shareholder and its affiliates.

The Company’s related party transactions can be categorized as follows:

Revenue from services

For the six months ended June 30, 2015 and June 30, 2016, the Company recognized net revenues of $176 and $168, respectively, and for the three months ended June 30, 2015 and 2016, the Company recognized net revenues of $77 and $89, respectively, from a client that is a significant shareholder of the Company.

For the six months ended June 30, 2015 and June 30, 2016, the Company recognized net revenues of $4,164 and $3,484 respectively, and for the three months ended June 30, 2015 and 2016, the Company recognized net revenues of $2,125 and $1,832 from a client that is a non-consolidating affiliate of the Company. $1,165 of this amount is receivable as of June 30, 2016.

Cost of revenue from services

The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, which are included in cost of revenue. For the six months ended June 30, 2015 and 2016, cost of revenue includes an amount of $1,029 and $953, respectively, and for the three months ended June 30, 2015 and 2016, cost of revenue includes an amount of $658 and $455, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates.

Selling, general and administrative expenses

The Company purchases certain services from its non-consolidating affiliates, mainly relating to training and recruitment, the costs of which are included in selling, general and administrative expenses. For the six months ended June 30, 2015 and 2016, selling, general and administrative expenses includes an amount of $239 and $127, respectively, and for the three months ended June 30, 2015 and 2016, selling, general and administrative expenses includes an amount of $145 and $60, respectively, attributable to the cost of services provided by the Company’s non-consolidating affiliates.

During the six and three months ended June 30, 2016, the Company entered into transactions with a significant shareholder of the Company to provide services to the Company at a cost of $15 and $0, respectively.

Investment in equity affiliates

During the six months ended June 30, 2016, the Company invested $3,783 in its non-consolidating affiliates and made payments of $5,283. As of December 31, 2015 and June 30, 2016, $3,736 and $2,236, respectively, in investments in equity affiliates was accrued but not paid and has been included in accrued expenses and other current liabilities in the Company’s consolidated balance sheet.

As of December 31, 2015 and June 30, 2016, the Company’s investments in its non-consolidating affiliates amounted to $6,677 and $6,230 respectively.

Others

During the six months ended June 30, 2015 and 2016, the Company also entered into transactions with one of its non-consolidating affiliates for certain cost reimbursements amounting to $2,035 and $674, respectively, and for the three months ended June 30, 2015 and 2016 amounting to $297 and $345, respectively, of which $674 is receivable and has been included in prepaid expenses and other current assets in the Company’s consolidated balance sheet as of June 30, 2016.

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Commitments and contingencies

6 Months Ended

Jun. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

Commitments and contingencies

25. Commitments and contingencies

Capital commitments

As of December 31, 2015 and June 30, 2016, the Company has committed to spend $8,237 and $6,112, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases.

Bank guarantees

The Company has outstanding bank guarantees amounting to $11,748 and $10,523 as of December 31, 2015 and June 30, 2016, respectively. Bank guarantees are generally provided to government agencies, excise and customs authorities for the purposes of maintaining a bonded warehouse. These guarantees may be revoked by the government agencies if they suffer any losses or damage through the breach of any of the covenants contained in the agreements governing such guarantees.

Other commitments

The Company’s business process delivery centers in India are 100% export oriented units or Software Technology Parks of India (“STPI”) units under the STPI guidelines issued by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled.

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Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

26. Subsequent Events:

Share Repurchase

Pursuant to its share repurchase program, the Company repurchased 2,252,432 of its common shares between  July 1, 2016 and August 8, 2016, at a weighted average price of $26.57 per share for an aggregate cash amount of $59,837.

Acquisition of PNMSoft Ltd.

On August 4, 2016, the Company completed its previously announced acquisition of PNMSoft Ltd., an Israeli company (“PNMSoft”), a workflow, case management and work optimization solutions provider, pursuant to the share purchase agreement among the Company, PNMSoft and the shareholders of PNMSoft dated June 23, 2016.  The preliminary estimated purchase consideration for the acquisition of PNMSoft is $31,000, subject to adjustment for working capital and closing debt.  The purchase agreement also provides for contingent earn-out consideration of up to $9,000, payable to the shareholders of PNMSoft subject to the achievement of certain performance targets following closing.  

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Summary of significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis of preparation and principles of consolidation

(a) Basis of preparation and principles of consolidation

The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission 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, 2015.

The unaudited interim consolidated financial statements reflect all adjustments that management considers necessary for a fair presentation of the results of operations for these periods. The results of operations for interim periods are not necessarily indicative of results for the full year.

The accompanying unaudited interim consolidated 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 on the entity, the Company applies the equity method of accounting. All intercompany transactions and balances are eliminated in consolidation.

Non-controlling interest in subsidiaries that is redeemable outside of the Company’s control for cash or other assets is reflected in the mezzanine section between liabilities and equity in the consolidated balance sheets at the redeemable value, which approximates fair value. Redeemable non-controlling interest is adjusted to its fair value at each balance sheet date. Any resulting increases or decreases in the estimated redemption amount are affected by corresponding charges to additional paid-in capital. The share of non-controlling interest in subsidiary earnings is reflected in net loss (income) attributable to non-controlling interest in the consolidated statements of income.

Use of estimates

(b) Use of estimates

The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include the useful lives of property, plant and equipment, intangibles and goodwill, revenue recognition, reserves for doubtful receivables, valuation allowances for deferred tax assets, the valuation of derivative financial instruments, measurements of stock-based compensation, assets and obligations related to employee benefits, and income tax uncertainties and other contingencies. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

Business combinations

(c) Business combinations, goodwill and other intangible assets

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

In business combinations where the fair value of identifiable tangible and intangible net assets purchased exceeds the cost of the acquired business, the Company recognizes the resulting gain under “Other operating (income) expense, net” in the Consolidated Statements of Income.

Goodwill

Goodwill represents the cost of acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis on December 31, based on a number of factors, including operating results, business plans and future cash flows. The Company performs an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the assessment of events or circumstances, the Company performs a quantitative assessment of goodwill impairment if it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the quantitative impairment analysis, the carrying value of the goodwill of a reporting unit exceeds the fair value of such goodwill, an impairment loss is recognized in an amount equal to the excess. In addition, the Company performs a qualitative assessment of goodwill impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. See Note 10 for information and related disclosures.

Intangible Assets

Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows:

Customer-related intangible assets	1-14 years
Marketing-related intangible assets	1-10 years
Other intangible assets	3-9 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.

Financial instruments and concentration of credit risk

(d) Financial instruments and concentration of credit risk

Financial instruments that potentially subject the Company to concentration of credit risk are reflected principally in cash and cash equivalents, derivative financial instruments and accounts receivable. The Company places its cash and cash equivalents and derivative financial instruments with corporations and banks with high investment grade ratings, limits the amount of credit exposure with any one corporation or bank and conducts ongoing evaluations of the creditworthiness of the corporations and banks with which it does business. To reduce its credit risk on accounts receivable, the Company conducts ongoing credit evaluations of its clients. GE accounted for 18% and 16% of receivables as of December 31, 2015 and June 30, 2016, respectively. GE accounted for 19% and 17% of revenues for the six months and three months ended June 30, 2015 and June 30, 2016, respectively.

Recently adopted accounting pronouncements

(e) Recently adopted accounting pronouncements

The following recently released accounting standards have been adopted by the Company. Adoption of these standards did not have a material impact on the Company’s consolidated results of operations, cash flows, financial position or disclosures:

Effective January 1, 2016, the Company has adopted FASB ASU 2015-01 (Topic 225): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). Such items are defined as transactions or events that are both unusual in nature and infrequent in occurrence, and, currently, are required to be presented separately in the income statement, net of income tax, after income from continuing operations. The changes eliminate the concept of an extraordinary item and, therefore, the presentation of such items will no longer be required. Notwithstanding this change, the Company will still be required to present and disclose a transaction or event that is both unusual in nature and infrequent in occurrence in the notes to the financial statements.

2. Summary of significant accounting policies (Continued)

Effective January 1, 2016, the Company has adopted FASB ASU 2015-05 (Topic 350), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which provides explicit guidance to evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the license consistent with its accounting for other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract.

Effective January 1, 2016, the Company has adopted FASB ASU 2015-16 (Topic 805), Business Combinations (“ASU 2015-16”), which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. The guidance requires that the acquirer shall recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.

Effective January 1, 2016, the Company has adopted FASB ASU 2015-02. In February 2015, the FASB issued ASU No. 2015-02, Amendment to the Consolidation Analysis, which specifies changes to the analysis that an entity must perform to determine whether it should consolidate certain types of legal entities. These changes (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, (iii) affect the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships, and (iv) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.

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Summary of significant accounting policies (Tables)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Estimated Useful Lives of Intangible Assets Acquired

Intangible assets acquired individually or with a group of other assets or in a business combination are carried at cost less accumulated amortization based on their estimated useful lives as follows:

Customer-related intangible assets	1-14 years
Marketing-related intangible assets	1-10 years
Other intangible assets	3-9 years

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Cash and cash equivalents (Tables)

6 Months Ended

Jun. 30, 2016

Cash And Cash Equivalents [Abstract]

Cash And Cash Equivalents

Cash and cash equivalents as of December 31, 2015 and June 30, 2016 comprise:

	As of December 31,		As of June 30,
	2015		2016
Cash and other bank balances	$	450,907	$	407,260
Total	$	450,907	$	407,260

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Accounts receivable, net of reserve for doubtful receivables (Tables)

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Reserve for Doubtful Receivables

The following table provides details of the Company’s reserve for doubtful receivables:

	Year ended December 31,			Six months ended
	2015			June 30, 2016
Opening Balance as of January 1	$	15,192		$	11,530
Additions charged to cost and expense		2,449			4,467
Deductions/Effect of exchange rate fluctuations		(6,111	)		(566	)
Closing Balance	$	11,530		$	15,431

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Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities Measured on Recurring Basis

The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these derivative instruments were determined using the following inputs as of December 31, 2015 and June 30, 2016:

	As of June 30, 2016
	Fair Value Measurements at Reporting Date Using
			Quoted Pricesin Active Marketsfor Identical Assets		Significant Other ObservableInputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Note a, c)	$	34,832	$	-	$	34,832	$	-
Total	$	34,832	$	—	$	34,832	$	—
Liabilities
Earnout Consideration (Note b, d)	$	18,438	$	-	$	-	$	18,438
Derivative instruments (Note b, c)	$	66,197	$	-	$	66,197	$	-
Total	$	84,635	$	—	$	66,197	$	18,438
Redeemable non-controlling interest (Note e)	$	2,778	$	-	$	-	$	2,778

	As of December 31, 2015
	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets
Derivative instruments (Note a, c)	$	30,380	$	-	$	30,380	$	-
Total	$	30,380	$	—	$	30,380	$	—
Liabilities
Earnout Consideration (Note b, d)	$	22,820	$	-	$	-	$	22,820
Derivative instruments (Note b, c)	$	59,620	$	-	$	59,620	$	-
Total	$	82,440	$	—	$	59,620	$	22,820

(a) Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets.

(b) Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.

(c) The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database.

(d) The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy.

(e) The Company’s estimate of the fair value of redeemable non-controlling interest as of June 30, 2016 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions.

Fair Value of Contingent Consideration

The following table provides a roll-forward of the fair value of contingent consideration categorized as level 3 for the three and six months ended June 30, 2015 and 2016:

	Three months ended						Six months ended
	June 30,						June 30,
	2015			2016			2015			2016
Opening Balance	$	33,415		$	20,853		$	33,990		$	22,820
Earn-out consideration payable in connection with    acquisitions		—			2,070			—			10,190
Payments made on earn-out consideration		—			(187	)		(126	)		(1,152	)
Change in fair value and others		(730	)		(4,298	)		(1,179	)		(13,420	)
Ending balance	$	32,685		$	18,438		$	32,685		$	18,438

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Derivative financial instruments (Tables)

6 Months Ended

Jun. 30, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure

The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure:

	Notional principal amounts (note a)				Balance sheet exposure asset (liability) (note b)
	As of December 31, 2015		As of June 30, 2016		As of December 31, 2015			As of June 30, 2016
Foreign exchange forward contracts denominated in:
United States Dollars (sell) Indian Rupees (buy)	$	1,139,400	$	1,093,400	$	(48,197	)	$	(38,642	)
United States Dollars (sell) Mexican Peso (buy)		8,520		4,620		(1,163	)		(851	)
United States Dollars (sell) Philippines Peso (buy)		58,500		37,050		(1,387	)		(514	)
Euro (sell) United States Dollars (buy)		146,719		142,546		9,109			5,936
Euro (sell) Romanian Leu (buy)		39,027		22,295		567			527
Japanese Yen (sell) Chinese Renminbi (buy)		62,740		85,348		(1,379	)		(10,635	)
Pound Sterling (sell) United States Dollars (buy)		118,438		132,489		7,496			15,147
Australian Dollars (sell) United States Dollars (buy)		106,544		89,661		5,714			1,793
Interest rate swaps (floating to fixed)		-		419,805		-			(4,126	)
						(29,240	)		(31,365	)

(a) Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements.

(b) Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date.

Fair Value of Derivative Instruments and Location in Financial Statements

The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below:

	Cash flow hedges				Non-designated
	As of December 31, 2015		As of June 30, 2016		As of December 31, 2015		As of June 30, 2016
Assets
Prepaid expenses and other current assets	$	17,400	$	23,304	$	884	$	92
Other assets	$	12,096	$	11,436	$	-	$	-
Liabilities
Accrued expenses and other current liabilities	$	34,576	$	28,931	$	34	$	666
Other liabilities	$	25,010	$	36,600	$	-	$	-

Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income

In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss), or OCI, and the related tax effects are summarized below:

	Three months ended June 30,																			Six months ended June 30,
	2015									2016										2015										2016
	Before- Tax amount			Tax (Expense) or Benefit		Net of tax Amount			Before- Tax amount				Tax (Expense) or Benefit			Net of tax Amount			Before- Tax amount				Tax (Expense) or Benefit			Net of tax Amount			Before- Tax amount				Tax (Expense) or Benefit			Net of tax Amount
Opening balance	$	(32,968	)	$	11,661	$	(21,307	)	$		(27,267	)	$	8,977		$	(18,290	)	$		(66,786	)	$	23,646		$	(43,140	)	$		(30,090	)	$	9,830		$	(20,260	)
Net gains (losses) reclassified into    statement of income on completion of    hedged transactions		(8,659	)		3,062		(5,597	)			(2,585	)		587			(1,998	)			(17,913	)		6,313			(11,600	)			(5,487	)		1,289			(4,198	)
Changes in fair value of effective portion of    outstanding derivatives, net		(24,331	)		8,561		(15,770	)			(6,108	)		555			(5,553	)			233			(173	)		60				(6,187	)		404			(5,783	)
Gain (loss) on cash flow hedging    derivatives, net		(15,672	)		5,499		(10,173	)			(3,523	)		(32	)		(3,555	)			18,146			(6,486	)		11,660				(700	)		(885	)		(1,585	)
Closing balance	$	(48,640	)	$	17,160	$	(31,480	)	$		(30,790	)	$	8,945		$	(21,845	)	$		(48,640	)	$	17,160		$	(31,480	)	$		(30,790	)	$	8,945		$	(21,845	)

Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income

The gains or losses recognized in other comprehensive income (loss) and their effects on financial performance are summarized below:

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion)											Location of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)	Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)
	Three months ended June 30,						Six months ended June 30,						Three months ended June 30,						Six months ended June 30,
	2015			2016			2015		2016				2015			2016			2015			2016
Forward foreign exchange contracts	$	(24,331	)	$	(3,522	)	$	233	$	(1,675	)	Revenue	$	3,815		$	2,126		$	6,310		$	5,997
Interest rate swaps	$	-		$	(2,586	)	$	-	$	(4,512	)	Cost of revenue	$	(10,013	)	$	(3,405	)	$	(19,440	)	$	(8,717	)
												Selling, general and administrative expenses	$	(2,461	)	$	(919	)	$	(4,783	)	$	(2,380	)
												Interest expense	$	-		$	(387	)	$	-		$	(387	)
	$	(24,331	)	$	(6,108	)	$	233	$	(6,187	)		$	(8,659	)	$	(2,585	)	$	(17,913	)	$	(5,487	)

Non-designated Hedges

Derivatives not designated as hedging instruments	Location of Gain (Loss) recognized in Statement of Income on Derivatives	Amount of Gain (Loss) recognized in Statement of Income on Derivatives
		Three months ended June 30,					Six months ended June 30,
		2015		2016			2015		2016
Forward foreign exchange    contracts (Note a)	Foreign exchange gains (losses), net	$	1,596	$	(895	)	$	3,840	$	239
		$	1,596	$	(895	)	$	3,840	$	239

(a) These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income.

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Prepaid expenses and other current assets (Tables)

6 Months Ended

Jun. 30, 2016

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:

	As of December 31,		As of June 30,
	2015		2016
Advance income and non-income taxes	$	52,953	$	89,148
Deferred transition costs		36,620		39,847
Derivative instruments		18,284		23,396
Prepaid expenses		12,565		17,419
Customer acquisition cost		6,687		9,410
Employee advances		3,878		5,309
Deposits		1,820		1,492
Advances to suppliers		8,028		2,311
Others		13,190		8,509
	$	154,025	$	196,841

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Property, plant and equipment, net (Tables)

6 Months Ended

Jun. 30, 2016

Property Plant And Equipment [Abstract]

Property, plant and equipment, net

Property, plant and equipment, net consist of the following:

	As of December 31,			As of June 30,
	2015			2016
Property, plant and equipment, gross	$	556,518		$	583,143
Less: Accumulated depreciation and amortization		(381,122	)		(397,500	)
Property, plant and equipment, net	$	175,396		$	185,643

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Goodwill and intangible assets (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in Goodwill

The following table presents the changes in goodwill for the year ended December 31, 2015 and six months ended June 30, 2016:

	As of December 31,			As of June 30,
	2015			2016
Opening balance	$	1,057,214		$	1,038,346
Goodwill relating to acquisitions consummated during the    period		7,674			23,349
Impact of measurement period adjustments		(135	)		—
Effect of exchange rate fluctuations		(26,407	)		(5,727	)
Closing balance	$	1,038,346		$	1,055,968

Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination

The Company’s intangible assets acquired either individually or with a group of other assets or in a business combination are as follows:

	As of December 31, 2015						As of June 30, 2016
	Gross carrying amount		Accumulated amortization & Impairment		Net		Gross carrying amount		Accumulated amortization & Impairment		Net
Customer-related intangible assets	$	319,035	$	247,463	$	71,572	$	317,439	$	255,184	$	62,255
Marketing-related intangible assets		42,749		27,021		15,728		42,450		28,339		14,111
Other intangible assets		29,729		18,427		11,301		32,341		24,285		8,055
	$	391,513	$	292,911	$	98,601	$	392,230	$	307,808	$	84,421

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Long-term debt (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Maturity Profile of Term Loan, Net of Debt Amortization Expense

The maturity profile of the term loan, net of debt amortization expense, is as follows:

Year ended	Amount
2016	$	19,570
2017		39,181
2018		39,226
2019		39,272
2020		619,654
Total	$	756,903

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Accrued expenses and other current liabilities (Tables)

6 Months Ended

Jun. 30, 2016

Payables And Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	As of December 31,		As of June 30,
	2015		2016
Accrued expenses	$	161,672	$	143,226
Accrued employee cost		158,054		110,042
Deferred transition revenue		44,974		47,152
Statutory liabilities		32,149		31,895
Retirement benefits		17,930		19,416
Derivative instruments		34,610		29,597
Advance from customers		19,815		22,275
Earn-out consideration		16,896		3,066
Other liabilities		12,210		9,332
Capital lease obligations		1,328		1,303
	$	499,638	$	417,304

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Other liabilities (Tables)

6 Months Ended

Jun. 30, 2016

Other Liabilities Disclosure [Abstract]

Other liabilities

Other liabilities consist of the following:

	As of December 31,		As of June 30,
	2015		2016
Accrued employee cost	$	6,901	$	7,070
Deferred transition revenue		66,737		77,047
Retirement benefits		29,689		31,961
Derivative instruments		25,010		36,600
Amount received from GE under indemnification arrangement, pending adjustment		3,549		3,480
Advance from customers		4,485		2,428
Earn-out consideration		5,924		15,372
Others		10,729		10,168
Capital lease obligations		2,204		2,216
	$	155,228	$	186,342

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Employee benefit plans (Tables)

6 Months Ended

Jun. 30, 2016

Compensation And Retirement Disclosure [Abstract]

Net Defined Benefit Plan Costs

Net defined benefit plan costs for the three months and six months ended June 30, 2015 and 2016 include the following components:

	Three months ended June 30,						Six months ended June 30,
	2015			2016			2015			2016
Service costs	$	1,389		$	1,430		$	2,773		$	2,833
Interest costs		675			613			1,353			1,311
Amortization of actuarial loss		98			(75	)		183			(19	)
Expected return on plan assets		(558	)		(494	)		(1,107	)		(980	)
Net defined benefit plan costs	$	1,604		$	1,474		$	3,202		$	3,145

Amount Contributed to Defined Contribution Plans in Various Jurisdictions

During the three and six months ended June 30, 2015 and 2016, the Company contributed the following amounts to defined contribution plans in various jurisdictions:

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
India	$	4,109	$	4,731	$	8,018	$	9,034
U.S.		2,008		2,203		4,636		5,735
U.K.		1,615		1,929		2,655		3,581
China		3,537		3,644		7,053		7,397
Other Regions		1,212		1,084		2,318		2,349
Total	$	12,481	$	13,591	$	24,680	$	28,096

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Stock-based compensation (Tables)

6 Months Ended

Jun. 30, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-based Payment Award, Stock Options Granted, Valuation Assumptions

The following table shows the significant assumptions used in connection with the determination of the fair value of options granted in the six months ended June 30, 2015 and June 30, 2016.

	Six months ended June 30, 2015			Six months ended June 30, 2016
Dividend yield		—		—
Expected life (in months)		84		84
Risk-free rate of interest		1.99	%	1.56	%
Volatility		34.97	%	27.22	%

Summary of Stock Option Activity

16. Stock-based compensation (Continued)

A summary of stock option activity during the six months ended June 30, 2016 is set out below:

	Six months ended June 30, 2016
	Shares arising out of options			Weighted average exercise price		Weighted average remaining contractual life (years)		Aggregate intrinsic value
Outstanding as of January 1, 2016		5,986,845		$	16.99		5.8	$	—
Granted		660,000			27.65		—		—
Forfeited		(85,000)			18.47		—		—
Expired		—			—		—		—
Exercised		(631,422	)		15.93		—		6,890
Outstanding as of June 30, 2016		5,930,423		$	18.27		5.9	$	52,195
Vested as of June 30, 2016 and expected to vest thereafter (Note a)		5,658,217		$	17.88		5.9	$	51,115
Vested and exercisable as of June 30, 2016		3,108,924		$	15.35		4.1	$	35,722
Weighted average grant date fair value of  grants during the period	$	8.88

(a) Options expected to vest reflect an estimated forfeiture rate.

Summary of Restricted Share Units Granted

A summary of RSUs granted during the six months ended June 30, 2016 is set out below:

	Six months ended June 30, 2016
	Number of Restricted Share Units		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2016		157,390	$	17.67
Granted		54,443		25.91
Vested (Note a)		(14,550)		15.62
Forfeited		(1,135)		14.18
Outstanding as of June 30, 2016		196,148	$	20.13
Expected to vest (Note b)		189,210

(a) RSUs that vested during the period covered were net settled upon vesting by issuing 10,991 shares (net of minimum statutory tax withholding).

(b) The number of RSUs expected to vest reflects an estimated forfeiture rate.

Summary of Performance Units Activity

A summary of PU activity during the six months ended June 30, 2016 is set out below:

	Six months ended June 30, 2016
	Number of Performance Units		Weighted Average Grant Date Fair Value		Maximum Shares Eligible to Receive
Outstanding as of January 1, 2016		2,499,322	$	19.95		2,499,322
Granted		1,518,374		27.93		3,343,335
Vested		—		—		—
Forfeited		(136,200)		20.65		(159,400)
Adjustment upon final determination of level of performance goal achievement (Note a)		7,274		22.72
Adjustment upon final determination of level of performance goal achievement (Note a)						7,274
Outstanding as of June 30, 2016		3,888,770	$	23.04		5,690,531
Expected to vest (Note b)		3,158,060

(a) Represents an adjustment made in March 2016 to the number of shares subject to the PUs granted in 2015 upon certification of the level of achievement of the performance targets underlying such awards.

(b) The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate.

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Earnings per share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per share

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
Net income available to Genpact Limited common    shareholders	$	62,701	$	65,231	$	107,354	$	123,796
Weighted average number of common shares    used in computing basic earnings per common share		218,525,149		210,178,050		219,208,922		210,479,108
Dilutive effect of stock-based awards		2,437,157		3,625,084		2,445,781		3,368,942
Weighted average number of common shares    used in computing dilutive earnings per common share		220,962,306		213,803,134		221,654,703		213,848,050
Earnings per common share attributable to Genpact    Limited common shareholders
Basic	$	0.29	$	0.31	$	0.49	$	0.59
Diluted	$	0.28	$	0.31	$	0.48	$	0.58

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Cost of revenue (Tables)

6 Months Ended

Jun. 30, 2016

Other Income And Expenses [Abstract]

Cost of Revenue

Cost of revenue consists of the following:

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
Personnel expenses	$	250,369	$	264,969	$	493,317	$	518,997
Operational expenses		104,297		106,953		207,094		214,495
Depreciation and amortization		11,638		11,833		23,369		23,111
	$	366,304	$	383,755	$	723,780	$	756,603

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Selling, general and administrative expenses (Tables)

6 Months Ended

Jun. 30, 2016

Selling General And Administrative Expenses [Abstract]

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist of the following:

	Three months ended June 30,				Six months ended June 30,
	2015		2016		2015		2016
Personnel expenses	$	107,380	$	117,857	$	213,218	$	226,257
Operational expenses		39,596		45,158		80,158		94,736
Depreciation and amortization		2,254		2,182		4,602		4,353
	$	149,230	$	165,197	$	297,978	$	325,346

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Other operating (income) expense, net (Tables)

6 Months Ended

Jun. 30, 2016

Other Income And Expenses [Abstract]

Other Operating (Income) Expense, Net

	Three months ended June 30,						Six months ended June 30,
	2015			2016			2015			2016
Other operating (income) expense	$	(570	)	$	(243	)	$	(1,032	)	$	(741	)
Impairment of intangible assets		—			871			—			5,814
Change in fair value of earn out consideration, deferred consideration (relating to business acquisitions)		(2,100	)		(5,490	)		(2,100	)		(14,996	)
Other operating (income) expense, net	$	(2,670	)	$	(4,862	)	$	(3,132	)	$	(9,923	)

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Interest income (expense), net (Tables)

6 Months Ended

Jun. 30, 2016

Banking And Thrift Interest [Abstract]

Interest Income (Expense), Net

	Three months ended June 30,						Six months ended June 30,
	2015			2016			2015			2016
Interest income	$	2,001		$	2,160		$	3,197		$	4,524
Interest expense		(9,238	)		(5,593	)		(19,459	)		(10,795	)
Loss on extinguishment of debt		(10,115	)		-			(10,115	)		-
Interest income (expense), net	$	(17,352	)	$	(3,433	)	$	(26,377	)	$	(6,271	)

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Income taxes (Tables)

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions

The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions from January 1, 2016 to June 30, 2016:

	2016
Opening balance at January 1	$	26,357
Increase related to prior year tax positions, including recorded    in acquisition accounting		13
Decrease related to prior year tax positions		(790	)
Decrease related to prior year tax position due to lapse of    applicable statute of limitation		(166	)
Increase related to current year tax positions, including recorded in acquisition accounting		61
Decrease related to settlements with tax authorities		(2,000	)
Effect of exchange rate changes		(66	)
Closing balance at June 30	$	23,409

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Organization - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016 Employee Country Customer	Oct. 25, 2012 shares
Organization [Line Items]
Number of professionals around the globe, minimum | Employee	75,000
Number of countries in which entity operates | Country	25
Common stock shares purchased by affiliates of Bain Capital Partners | shares		67,750,678
Minimum | Fortune Global 500
Organization [Line Items]
Number of clients | Customer	100

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Estimated Useful Lives of Intangible Assets Acquired (Detail)	6 Months Ended
	Jun. 30, 2016
Customer-Related Intangible Assets | Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	1 year
Customer-Related Intangible Assets | Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	14 years
Marketing-Related Intangible Assets | Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	1 year
Marketing-Related Intangible Assets | Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	10 years
Other Intangible Assets | Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	3 years
Other Intangible Assets | Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	9 years

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Summary of Significant Accounting Policies - Additional Information (Detail) - General Electric Company	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Schedule Of Significant Accounting Policies [Line Items]
Percentage of accounts receivables	16.00%		16.00%		18.00%
Percentage of revenues	17.00%	17.00%	19.00%	19.00%

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Business Acquisitions - Additional Information (Detail) - USD ($)			2 Months Ended	3 Months Ended	6 Months Ended
	Apr. 13, 2016	Jan. 08, 2016	Apr. 30, 2018	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jan. 31, 2018	Dec. 31, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Cash consideration to acquired certain assets and assumed certain liabilities					$ 11,633,000	$ 17,718,000
Goodwill				$ 1,055,968,000	1,055,968,000			$ 1,038,346,000	$ 1,057,214,000
Net asset related to business acquisition				2,014,000	2,014,000
Net revenue on asset held for sale				4,234,000	9,162,000
Net income on asset held for sale				$ 802,000	$ 182,000
Sale transaction expected to complete within the period					12 months
Endeavour Software Technologies Private Limited
Business Acquisition [Line Items]
Ownership percentage acquired	100.00%
Preliminary estimated purchase consideration	$ 14,443,000
Cash consideration to acquired certain assets and assumed certain liabilities	10,028,000
Cash and cash equivalents	2,345,000
Cash withheld for payment to tax authorities	639,000
Cash withheld for seller	95,000
Contingent earn-out consideration-Low end	0
Contingent earn-out consideration-High end	$ 3,500,000
Acquired intangible assets, weighted average amortization period	3 years
Goodwill	$ 8,870,000
Acquisition related cost	338,000
Acquired assets	5,691,000
Liabilities assumed	1,853,000
Endeavour Software Technologies Private Limited | Customer-Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets	800,000
Endeavour Software Technologies Private Limited | Marketing-Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets	900,000
Endeavour Software Technologies Private Limited | Other Intangible Assets
Business Acquisition [Line Items]
Intangible assets	$ 950,000
Strategic Sourcing Excellence LLC
Business Acquisition [Line Items]
Ownership percentage acquired		51.00%
Preliminary estimated purchase consideration		$ 14,490,000
Contingent earn-out consideration-High end		$ 20,000,000
Acquired intangible assets, weighted average amortization period		5 years
Goodwill		$ 14,479,000
Acquisition related cost		164,000
Acquired assets		327,000
Liabilities assumed		617,000
Cash consideration to acquired certain assets and assumed certain liabilities		2,550,000
Strategic Sourcing Excellence LLC | If either the call or put option is exercised
Business Acquisition [Line Items]
Contingent earn-out consideration-High end		$ 9,800,000
Equity method investment ownership percentage		49.00%
Strategic Sourcing Excellence LLC | If either the call or put option is exercised | Scenario, Forecast
Business Acquisition [Line Items]
Contingent earn-out consideration-Low end			$ 0
Contingent earn-out consideration-High end			$ 9,800,000
Strategic Sourcing Excellence LLC | Call Option | Scenario, Forecast
Business Acquisition [Line Items]
Equity method investment ownership percentage							49.00%
Strategic Sourcing Excellence LLC | Selling Equityholders Put Option | Scenario, Forecast
Business Acquisition [Line Items]
Equity method investment ownership percentage			49.00%
Strategic Sourcing Excellence LLC | Selling Equityholders Put Option | Scenario, Forecast | Maximum
Business Acquisition [Line Items]
Selling equity holders put option exercise price			$ 2,950,000
Strategic Sourcing Excellence LLC | Selling Equityholders Put Option | Scenario, Forecast | Minimum
Business Acquisition [Line Items]
Selling equity holders put option exercise price			$ 2,450,000
Strategic Sourcing Excellence LLC | Customer-Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets		$ 300,000

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Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Cash And Cash Equivalents [Abstract]
Cash and other bank balances	$ 407,260	$ 450,907
Total	$ 407,260	$ 450,907	$ 441,755	$ 461,788

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Reserve for Doubtful Receivables (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Receivables [Abstract]
Opening Balance	$ 11,530	$ 15,192	$ 15,192
Additions charged to cost and expense	4,467	$ 1,266	2,449
Deductions/Effect of exchange rate fluctuations	(566)		(6,111)
Closing Balance	$ 15,431		$ 11,530

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Accounts Receivable, Net of Reserve for Doubtful Receivables - Additional Information (Detail) - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Gross accounts receivable	$ 613,659,000	$ 601,667,000
Reserve for doubtful receivables	15,431,000	11,530,000	$ 15,192,000
Net accounts receivable	598,228,000	590,137,000
Accounts receivable due after one year	6,387,000	8,348,000
Accounts receivable from related parties	1,192,000	1,980,000
Reserve for doubtful receivables from related parties	$ 0	$ 0

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Fair Value of Assets and Liabilities Measured on Recurring Basis, Including Derivative Instruments (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instrument, asset	[1],[2]	$ 34,832	$ 30,380
Total, assets		34,832	30,380
Earn-out consideration	[3],[4]	18,438	22,820
Derivative instrument, liability	[2],[3]	66,197	59,620
Total, liabilities		84,635	82,440
Redeemable non-controlling interest	[5]	2,778
Fair Value, Inputs, Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Derivative instrument, asset	[1],[2]	34,832	30,380
Total, assets		34,832	30,380
Derivative instrument, liability	[2],[3]	66,197	59,620
Total, liabilities		66,197	59,620
Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Earn-out consideration	[3],[4]	18,438	22,820
Total, liabilities		18,438	$ 22,820
Redeemable non-controlling interest	[5]	$ 2,778

[1] Included in prepaid expenses and other current assets and other assets in the consolidated balance sheets.

[2] The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database.

[3] Included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheets.

[4] The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy.

[5] The Company’s estimate of the fair value of redeemable non-controlling interest as of June 30, 2016 is based on unobservable inputs considering the assumptions that market participants would make in pricing the obligation. Given the significance of the unobservable inputs, the valuation was classified in level 3 of the fair value hierarchy. Refer to Note 3—Business Acquisitions.

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Fair Value of Contingent Consideration (Detail) - Fair Value, Inputs, Level 3 - Business Acquisition Contingent Consideration - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Opening Balance	$ 20,853	$ 33,415	$ 22,820	$ 33,990
Earn-out consideration payable in connection with acquisitions	2,070		10,190
Payments made on earn-out consideration	(187)		(1,152)	(126)
Change in fair value and others	(4,298)	(730)	(13,420)	(1,179)
Ending balance	$ 18,438	$ 32,685	$ 18,438	$ 32,685

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Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Forward foreign exchange contracts, minimum maturity period			0 months
Forward foreign exchange contracts, maximum maturity period			54 months
Amount of gain (loss) recognized in income on ineffective portion of derivatives and amount excluded from effectiveness testing	$ 0	$ 0	$ 0	$ 0

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Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments with Related Balance Sheet Exposure (Detail) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	$ (31,365)	$ (29,240)
United States Dollars (sell) Indian Rupees (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	1,093,400	1,139,400
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	(38,642)	(48,197)
United States Dollars (sell) Mexican Peso (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	4,620	8,520
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	(851)	(1,163)
United States Dollars (sell) Philippines Peso (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	37,050	58,500
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	(514)	(1,387)
Euro (sell) United States Dollars (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	142,546	146,719
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	5,936	9,109
Euro (sell) Romanian Leu (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	22,295	39,027
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	527	567
Japanese Yen (sell) Chinese Renminbi (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	85,348	62,740
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	(10,635)	(1,379)
Pound Sterling (sell) United States Dollars (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	132,489	118,438
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	15,147	7,496
Australian Dollars (sell) United States Dollars (buy)
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	89,661	106,544
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	1,793	$ 5,714
Interest Rate Swap Floating To Fixed [Member]
Derivative [Line Items]
Derivative instrument notional principal amount	[2]	419,805
Derivative financial instrument, balance sheet exposure asset (liability)	[1]	$ (4,126)

[1] Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date.

[2] Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements.

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Fair Value of Derivative Instruments and Location in Financial Statements (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets
Derivatives, Fair Value [Line Items]
Fair value of assets	$ 92	$ 884
Not Designated as Hedging Instrument | Accrued Expenses and Other Current Liabilities
Derivatives, Fair Value [Line Items]
Fair value of liabilities	666	34
Cash Flow Hedges | Prepaid Expenses and Other Current Assets
Derivatives, Fair Value [Line Items]
Fair value of assets	23,304	17,400
Cash Flow Hedges | Other Assets
Derivatives, Fair Value [Line Items]
Fair value of assets	11,436	12,096
Cash Flow Hedges | Accrued Expenses and Other Current Liabilities
Derivatives, Fair Value [Line Items]
Fair value of liabilities	28,931	34,576
Cash Flow Hedges | Other Liabilities
Derivatives, Fair Value [Line Items]
Fair value of liabilities	$ 36,600	$ 25,010

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Cash Flow Hedges, Gains (Losses) Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Opening balance, before-tax amount	$ (27,267)	$ (32,968)	$ (30,090)	$ (66,786)
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, before-tax amount	(2,585)	(8,659)	(5,487)	(17,913)
Changes in fair value of effective portion of outstanding derivatives, net, before-tax amount	(6,108)	(24,331)	(6,187)	233
Gain (loss) on cash flow hedging derivatives, net, before-tax amount	(3,523)	(15,672)	(700)	18,146
Closing balance, before-tax amount	(30,790)	(48,640)	(30,790)	(48,640)
Opening balance, tax (expense) or benefit	8,977	11,661	9,830	23,646
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, tax (expense) or benefit	587	3,062	1,289	6,313
Changes in fair value of effective portion of outstanding derivatives, net, tax (expense) or benefit	555	8,561	404	(173)
Gain (loss) on cash flow hedging derivatives, net, tax (expense) or benefit	(32)	5,499	(885)	(6,486)
Closing balance, tax (expense) or benefit	8,945	17,160	8,945	17,160
Opening balance, net of tax amount	(18,290)	(21,307)	(20,260)	(43,140)
Net gains (losses) reclassified into statement of income upon completion of hedged transactions, net of tax amount	(1,998)	(5,597)	(4,198)	(11,600)
Changes in fair value of effective portion of outstanding derivatives, net, net of tax amount	(5,553)	(15,770)	(5,783)	60
Gain (loss) on cash flow hedging derivatives, net of taxes amount	(3,555)	(10,173)	(1,585)	11,660
Closing balance, net of tax amount	$ (21,845)	$ (31,480)	$ (21,845)	$ (31,480)

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Gains or Losses Recorded as Component of Other Comprehensive Income (Loss) or Other Comprehensive Income (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion)		$ (6,108)	$ (24,331)	$ (6,187)	$ 233
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		(2,585)	(8,659)	(5,487)	(17,913)
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives		(895)	1,596	239	3,840
Net revenues
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		2,126	3,815	5,997	6,310
Cost of Revenue
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		(3,405)	(10,013)	(8,717)	(19,440)
Selling, General and Administrative Expenses
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		(919)	(2,461)	(2,380)	(4,783)
Interest Expense
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion)		(387)		(387)
Foreign Exchange Contract
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion)		(3,522)	(24,331)	(1,675)	233
Foreign Exchange Contract | Foreign Exchange (Gains) Losses, Net
Other Comprehensive Income (Loss) [Line Items]
Non designated Hedges, amount of (Gain) Loss recognized in Statement of Income on Derivatives	[1]	(895)	$ 1,596	239	$ 3,840
Interest Rate Swap
Other Comprehensive Income (Loss) [Line Items]
Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion)		$ (2,586)		$ (4,512)

[1] These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings, and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains (losses), net in the consolidated statements of income.

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Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Prepaid Expense And Other Assets Current [Abstract]
Advance income and non-income taxes	$ 89,148	$ 52,953
Deferred transition costs	39,847	36,620
Derivative instruments	23,396	18,284
Prepaid expenses	17,419	12,565
Customer acquisition cost	9,410	6,687
Employee advances	5,309	3,878
Deposits	1,492	1,820
Advances to suppliers	2,311	8,028
Others	8,509	13,190
Prepaid expenses and other current assets, net	$ 196,841	$ 154,025

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Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property Plant And Equipment [Abstract]
Property, plant and equipment, gross	$ 583,143	$ 556,518
Less: Accumulated depreciation and amortization	(397,500)	(381,122)
Property, plant and equipment, net	$ 185,643	$ 175,396

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Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation and amortization			$ 26,997	$ 26,811
Depreciation Expense on Property, Plant And Equipment
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 11,552	$ 11,597	22,656	23,314
Computer Software Amortization
Property, Plant and Equipment [Line Items]
Depreciation and amortization	2,463	2,295	4,808	4,657
Effect of Reclassification of Foreign Exchange (Gains) Losses
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 174	$ 599	$ 467	$ 1,160

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Changes in Goodwill (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Opening balance	$ 1,038,346	$ 1,057,214
Goodwill relating to acquisitions consummated during the period	23,349	7,674
Impact of measurement period adjustments		(135)
Effect of exchange rate fluctuations	(5,727)	(26,407)
Closing balance	$ 1,055,968	$ 1,038,346

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Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill deductible for tax purposes	$ 37,214			$ 37,214		$ 36,390
Amortization of acquired intangible assets	6,493		$ 7,315	12,638	$ 14,656
Intangible assets write-down	$ 871	$ 4,943		$ 5,814

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Intangible Assets Acquired Either Individually or with Group of Other Assets or in Business Combination (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 392,230	$ 391,513
Accumulated amortization	307,808	292,911
Net	84,421	98,601
Customer-Related Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	317,439	319,035
Accumulated amortization	255,184	247,463
Net	62,255	71,572
Marketing-Related Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	42,450	42,749
Accumulated amortization	28,339	27,021
Net	14,111	15,728
Other Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	32,341	29,729
Accumulated amortization	24,285	18,427
Net	$ 8,055	$ 11,301

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Short-Term Borrowings - Additional Information (Detail) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Mar. 23, 2015	Jan. 27, 2015	Aug. 30, 2012
Line of Credit Facility [Line Items]
Fund-based and non-fund-based credit facilities limits available	$ 15,145,000		$ 15,781,000
Utilization of credit facility for non fund-based usage	9,545,000		10,301,000
Credit facility, amount utilized	$ 60,978,000		$ 22,947,000
Margin over LIBOR	1.50%	1.50%
Percentage of commitment fee	0.25%		0.25%
Revolving credit facility, expiration month and year	2020-06
Line of credit covenant condition	The credit agreement contains certain customary covenants, including a maximum leverage covenant and a minimum interest coverage ratio.
Short term loans	$ 60,000,000		$ 21,500,000
Morgan Stanley Senior Funding, Inc
Line of Credit Facility [Line Items]
Short term loans				$ 737,500,000	$ 672,500,000
Short term borrowings fixed interest rate	2.00%
Debt issuance cost	$ 1,045,000
Interest expense	235,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	350,000,000					$ 250,000,000
Fund-Based Credit Facility
Line of Credit Facility [Line Items]
Credit facility, amount utilized	$ 60,000,000		$ 21,500,000
Margin over LIBOR	1.50%		1.50%
Non-Fund-Based Credit Facility
Line of Credit Facility [Line Items]
Credit facility, amount utilized	$ 978,000		$ 1,447,000

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Long-Term Debt - Additional Information (Detail) - USD ($)	1 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Aug. 30, 2012
Debt Instrument [Line Items]
Extinguishment of outstanding term loan			$ 663,188,000
Acceleration amortization of debt issuance cost			$ 10,050,000
Margin over LIBOR		1.50%	1.50%
Term loan amounts outstanding		$ 756,903,000		$ 776,466,000
Debt amortization expense		3,097,000		$ 3,534,000
Principal amount of term loan		$ 10,000,000
Credit facility, frequency of payments		Quarterly
Maturity date of term loan agreement		Jun. 30, 2020
New Credit Facility
Debt Instrument [Line Items]
Margin over LIBOR	1.50%
Credit facility, base rate	0.50%		0.50%
Term Loan Credit Facility | New Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 800,000,000		$ 800,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity		$ 350,000,000			$ 250,000,000
Acceleration amortization of debt issuance cost			65,000
Revolving Credit Facility | New Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 350,000,000		$ 350,000,000

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Maturity Profile of Term Loan Net of Debt Amortization Expense (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Long-Term Debt
2016	$ 19,570
2017	39,181
2018	39,226
2019	39,272
2020	619,654
Total	$ 756,903	$ 776,466

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Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Leases [Abstract]
Accrued expenses	$ 143,226	$ 161,672
Accrued employee cost	110,042	158,054
Deferred transition revenue	47,152	44,974
Statutory liabilities	31,895	32,149
Retirement benefits	19,416	17,930
Derivative instruments	29,597	34,610
Advance from customers	22,275	19,815
Earn-out consideration	3,066	16,896
Other liabilities	9,332	12,210
Capital lease obligations	1,303	1,328
Accrued expenses and other current liabilities, net	$ 417,304	$ 499,638

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Other Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Accrued employee cost	$ 7,070	$ 6,901
Deferred transition revenue	77,047	66,737
Retirement benefits	31,961	29,689
Derivative instruments	36,600	25,010
Amount received from GE under indemnification arrangement, pending adjustment	3,480	3,549
Advance from customers	2,428	4,485
Earn-out consideration	15,372	5,924
Others	10,168	10,729
Capital lease obligations	2,216	2,204
Other Liabilities	$ 186,342	$ 155,228

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Net Defined Benefit Plan Costs (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Compensation And Retirement Disclosure [Abstract]
Service costs	$ 1,430	$ 1,389	$ 2,833	$ 2,773
Interest costs	613	675	1,311	1,353
Amortization of actuarial loss	(75)	98	(19)	183
Expected return on plan assets	(494)	(558)	(980)	(1,107)
Net defined benefit plan costs	$ 1,474	$ 1,604	$ 3,145	$ 3,202

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Amounts Contributed to Defined Contribution Plans in Various Jurisdictions (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	$ 13,591	$ 12,481	$ 28,096	$ 24,680
India
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	4,731	4,109	9,034	8,018
U.S.
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	2,203	2,008	5,735	4,636
U.K.
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	1,929	1,615	3,581	2,655
China
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	3,644	3,537	7,397	7,053
Other Regions
Defined Contribution Plan Disclosure [Line Items]
Defined contribution plans, contributed amount	$ 1,084	$ 1,212	$ 2,349	$ 2,318

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Stock-Based Compensation - Additional Information (Detail) - USD ($)		3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 11, 2011	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2012
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation cost		$ 8,078,000	$ 6,576,000	$ 13,328,000	$ 11,155,000
Options granted, contractual period, years				10 years
Unrecognized stock-based compensation cost for options		15,343,000		$ 15,343,000
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average remaining requisite vesting period				2 years 8 months 12 days
Restricted Share Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average remaining requisite vesting period				1 year 4 months 24 days
Unrecognized stock-based compensation cost		2,133,000		$ 2,133,000
Performance Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average remaining requisite vesting period				1 year 9 months 18 days
Unrecognized stock-based compensation cost		$ 41,475,000		$ 41,475,000
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of fair value per share allowed to eligible employees to purchase through payroll deductions				90.00%
Maximum percentage of employee's base salary allowed to be purchased		15.00%		15.00%
Maximum dollar amount of common shares allowed to be purchased				$ 25,000
Common shares reserved for issuance		4,200,000		4,200,000
Number of common shares issued under ESPP				60,636	65,055
Compensation expense for ESPP		$ 102,000	$ 78,000	$ 188,000	$ 159,000
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting period, years				4 years
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vesting period, years				5 years
2007 Omnibus Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amended Omnibus Plan, increase in number of common shares authorized for issuance	5,593,200					8,858,823
Number of common shares authorized for issuance	15,000,000
2005 Omnibus Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Amended Omnibus Plan, increase in number of common shares authorized for issuance						495,915

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Significant Assumptions used in Determination of Fair Value of Options Granted (Detail)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected life (in months)	84 months	84 months
Risk-free rate of interest	1.56%	1.99%
Volatility	27.22%	34.97%

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Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2016	Dec. 31, 2015
Shares arising out of options
Outstanding, shares arising out of options, beginning balance		5,986,845
Granted, shares arising out of options		660,000
Forfeited, shares arising out of options		(85,000)
Exercised, shares arising out of options		(631,422)
Outstanding, shares arising out of options, ending balance		5,930,423	5,986,845
Vested and expected to vest thereafter, shares arising out of options	[1]	5,658,217
Vested and exercisable, shares arising out of options		3,108,924
Weighted average grant date fair value of grants during the period		$ 8.88
Weighted average exercise price
Outstanding weighted average exercise price, beginning balance		16.99
Granted, weighted average exercise price		27.65
Forfeited, weighted average exercise price		18.47
Exercised, weighted average exercise price		15.93
Outstanding weighted average exercise price, ending balance		18.27	$ 16.99
Vested and expected to vest thereafter, weighted average exercise price	[1]	17.88
Vested and exercisable, weighted average exercise price		$ 15.35
Weighted average remaining contractual life (years)
Outstanding weighted average remaining contractual life (years)		5 years 10 months 24 days	5 years 9 months 18 days
Vested and expected to vest thereafter, weighted average remaining contractual life (years)	[1]	5 years 10 months 24 days
Vested and exercisable, weighted average remaining contractual life (years)		4 years 1 month 6 days
Aggregate intrinsic value
Exercised, aggregate intrinsic value		$ 6,890
Outstanding aggregate intrinsic value, ending balance		52,195
Vested and expected to vest thereafter, aggregate intrinsic value	[1]	51,115
Vested and exercisable, aggregate intrinsic value		$ 35,722

[1] Options expected to vest reflect an estimated forfeiture rate.

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Summary of Restricted Share Units Granted (Detail) - Restricted Share Units (RSUs) - $ / shares		1 Months Ended	6 Months Ended	12 Months Ended
		Jan. 31, 2016	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Restricted Share Units
Outstanding number of shares (Units), beginning balance		157,390	157,390
Granted, number of shares (Units)			54,443
Vested, number of shares (Units)	[1]		(14,550)
Forfeited, number of shares (Units)			(1,135)
Outstanding number of shares (Units), ending balance			196,148	157,390
Expected to vest, number of shares (Units)	[2]		189,210
Weighted Average Grant Date Fair Value
Outstanding weighted average grant date fair value, beginning balance		$ 17.67	$ 17.67
Granted, weighted average grant date fair value			25.91
Vested, weighted average grant date fair value	[1]		15.62
Forfeited, weighted average grant date fair value			14.18
Outstanding weighted average grant date fair value, ending balance			$ 20.13	$ 17.67
Vested RSU against which shares to be issued				53,546	92,692
RSUs settled on vesting by issuing shares (net of minimum tax withholding)		91,963	10,991

[1] RSUs that vested during the period covered were net settled upon vesting by issuing 10,991 shares (net of minimum statutory tax withholding).

[2] The number of RSUs expected to vest reflects an estimated forfeiture rate.

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Summary of Restricted Share Units Granted (Parenthetical) (Detail) - shares	1 Months Ended	6 Months Ended
	Jan. 31, 2016	Jun. 30, 2016
Restricted Share Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs settled on vesting by issuing shares (net of minimum tax withholding)	91,963	10,991

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Summary of Performance Units Activity (Detail) - Performance Units	6 Months Ended
	Jun. 30, 2016 $ / shares shares
Number of Restricted Share Units
Outstanding number of shares (Units), beginning balance	2,499,322
Granted, number of shares (Units)	1,518,374
Forfeited, number of shares (Units)	(136,200)
Adjustment upon final determination of level of performance goal achievement	7,274	[1]
Outstanding number of shares (Units), ending balance	3,888,770	[1]
Expected to vest, number of shares	3,158,060	[2]
Weighted Average Grant Date Fair Value
Outstanding weighted average grant date fair value, beginning balance | $ / shares	$ 19.95
Granted, weighted average grant date fair value | $ / shares	27.93
Forfeited, weighted average grant date fair value | $ / shares	20.65
Adjustment upon final determination of level of performance goal achievement | $ / shares	22.72	[1]
Outstanding weighted average grant date fair value, ending balance | $ / shares	$ 23.04
Maximum shares eligible to receive
Outstanding maximum shares eligible to receive, beginning balance	2,499,322
Granted, maximum shares eligible to receive	3,343,335
Forfeited, maximum shares eligible to receive	(159,400)
Adjustment upon final determination of level of performance goal achievement	7,274	[1]
Outstanding maximum shares eligible to receive, ending balance	5,690,531

[1] Represents an adjustment made in March 2016 to the number of shares subject to the PUs granted in 2015 upon certification of the level of achievement of the performance targets underlying such awards.

[2] The number of PUs expected to vest is based on the probable achievement of the performance targets after considering an estimated forfeiture rate.

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Capital Stock - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Feb. 04, 2016	Feb. 28, 2015
Class of Stock [Line Items]
Stock repurchase authorized amount			$ 250,000,000
Shares repurchased and retired (in shares)	3,314,035	3,628,449
Common stock shares repurchased price per share	$ 26.07	$ 22.43
Aggregate amount of common stock shares repurchased	$ 86,404,000	$ 81,399,000
Expenses related to stock purchases	$ 66,000	$ 73,000
February 2015 Stock Repurchase Program
Class of Stock [Line Items]
Stock repurchase authorized amount			$ 500,000,000
Maximum
Class of Stock [Line Items]
Stock repurchase authorized amount				$ 250,000,000

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Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Number of stock awards outstanding but not included in the computation of diluted earnings per common share	830,000	3,593,000	573,540	3,760,500

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Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share (Abstract)
Net income available to Genpact Limited common shareholders	$ 65,231	$ 62,701	$ 123,796	$ 107,354
Weighted average number of common shares used in computing basic earnings per common share	210,178,050	218,525,149	210,479,108	219,208,922
Dilutive effect of stock-based awards	3,625,084	2,437,157	3,368,942	2,445,781
Weighted average number of common shares used in computing dilutive earnings per common share	213,803,134	220,962,306	213,848,050	221,654,703
Earnings per common share attributable to Genpact Limited common shareholders, Basic	$ 0.31	$ 0.29	$ 0.59	$ 0.49
Earnings per common share attributable to Genpact Limited common shareholders, Diluted	$ 0.31	$ 0.28	$ 0.58	$ 0.48

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Cost of Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Component of Operating Other Cost and Expense [Line Items]
Cost of revenue	$ 383,755	$ 366,304	$ 756,603	$ 723,780
Personnel expenses
Component of Operating Other Cost and Expense [Line Items]
Cost of revenue	264,969	250,369	518,997	493,317
Operational expenses
Component of Operating Other Cost and Expense [Line Items]
Cost of revenue	106,953	104,297	214,495	207,094
Depreciation and amortization
Component of Operating Other Cost and Expense [Line Items]
Cost of revenue	$ 11,833	$ 11,638	$ 23,111	$ 23,369

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Selling, General and Administrative Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Component of Operating Other Cost and Expense [Line Items]
Selling, general and administrative expenses	$ 165,197	$ 149,230	$ 325,346	$ 297,978
Personnel expenses
Component of Operating Other Cost and Expense [Line Items]
Selling, general and administrative expenses	117,857	107,380	226,257	213,218
Operational expenses
Component of Operating Other Cost and Expense [Line Items]
Selling, general and administrative expenses	45,158	39,596	94,736	80,158
Depreciation and amortization
Component of Operating Other Cost and Expense [Line Items]
Selling, general and administrative expenses	$ 2,182	$ 2,254	$ 4,353	$ 4,602

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Other Operating Income (Expense), Net (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other Income And Expenses [Abstract]
Other operating (income) expense	$ (243)		$ (570)	$ (741)	$ (1,032)
Impairment of intangible assets	871	$ 4,943		5,814
Change in fair value of earn out consideration, deferred consideration (relating to business acquisitions)	(5,490)		(2,100)	(14,996)	(2,100)
Other operating (income) expense, net	$ (4,862)		$ (2,670)	$ (9,923)	$ (3,132)

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Interest Income (Expense), Net (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other Income And Expenses [Abstract]
Interest income	$ 2,160	$ 2,001	$ 4,524	$ 3,197
Interest expense	(5,593)	(9,238)	(10,795)	(19,459)
Loss on extinguishment of debt		(10,115)		(10,115)
Interest income (expense), net	$ (3,433)	$ (17,352)	$ (6,271)	$ (26,377)

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 23,409	$ 26,357
Unrecognized tax benefits that would impact effective tax rate	21,997	24,935
Unrecognized tax benefits, interest on income taxes accrued	3,735	4,223
Unrecognized tax benefits, excluding exchange rate differences in interest expense recognized	(384)	1,152
Accrued penalties	$ 887	$ 958

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Activities Related to Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Income Tax Uncertainties [Abstract]
Beginning balance	$ 26,357
Increase related to prior year tax positions, including recorded in acquisition accounting	13
Decrease related to prior year tax positions	(790)
Decrease related to prior year tax position due to lapse of applicable statute of limitation	(166)
Increase related to current year tax positions, including recorded in acquisition accounting	61
Decrease related to settlements with tax authorities	(2,000)
Effect of exchange rate changes	(66)
Ending balance	$ 23,409

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Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Accounts receivable from related parties	$ 1,192		$ 1,192		$ 1,980
Investment in equity affiliates	6,230		6,230		6,677
Affiliate of Significant Shareholder
Related Party Transaction [Line Items]
Recognized net revenues	89	$ 77	168	$ 176
Customer In Which Companys Non-consolidating Affiliate
Related Party Transaction [Line Items]
Recognized net revenues	1,832	2,125	3,484	4,164
Accounts receivable from related parties	1,165		1,165
Non-Consolidating Affiliates
Related Party Transaction [Line Items]
Cost of revenue	455	658	953	1,029
Selling, general and administrative expenses, net of recovery	60	145	127	239
Investment in equity affiliates			3,783
Payment to acquire investment			5,283
Investment in equity affiliates	6,230		6,230		6,677
Cost reimbursements from non-consolidating affiliates	345	$ 297	674	$ 2,035
Non-Consolidating Affiliates | Accrued Expenses and Other Current Liabilities
Related Party Transaction [Line Items]
Investment in equity affiliates outstanding	2,236		2,236		$ 3,736
Non-Consolidating Affiliates | Prepaid Expenses and Other Current Assets
Related Party Transaction [Line Items]
Reimbursements receivable	674		674
Significant Shareholder of Company
Related Party Transaction [Line Items]
Selling, general and administrative expenses, net of recovery	$ 0		$ 15

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Commitments And Contingencies [Line Items]
Bank guarantees, outstanding	$ 10,523	$ 11,748
Capital Addition Purchase Commitments
Commitments And Contingencies [Line Items]
Commitments and contingencies	$ 6,112	$ 8,237

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Subsequent Events - Additional Information (Detail) - USD ($)		1 Months Ended	6 Months Ended
	Aug. 04, 2016	Aug. 08, 2016	Jun. 30, 2016	Jun. 30, 2015
Subsequent Event [Line Items]
Shares repurchased and retired (in shares)			3,314,035	3,628,449
Common stock shares repurchased price per share			$ 26.07	$ 22.43
Aggregate amount of common stock shares repurchased			$ 86,404,000	$ 81,399,000
Subsequent Event
Subsequent Event [Line Items]
Shares repurchased and retired (in shares)		2,252,432
Common stock shares repurchased price per share		$ 26.57
Aggregate amount of common stock shares repurchased		$ 59,837
Subsequent Event | PNMSoft Ltd
Subsequent Event [Line Items]
Preliminary estimated purchase consideration	$ 31,000
Contingent earn-out consideration-High end	$ 9,000