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What changed in Genpact LTD's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Genpact LTD's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+476 added−483 removedSource: 10-K (2024-02-29) vs 10-K (2023-03-01)

Top changes in Genpact LTD's 2023 10-K

476 paragraphs added · 483 removed · 370 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

75 edited+21 added−13 removed55 unchanged
Biggest changeOur services in this area include: Accounts payable : document management, invoice processing, approval and resolution management, and travel and expense processing; Invoice-to-cash : customer master data management, credit and contract management, fulfillment, billing, collections, and dispute management services; Record to report : accounting, treasury, tax services, product cost accounting, and closing and reporting, including SEC and regulatory reporting; Financial planning and analysis : budgeting, forecasting, and business performance reporting; and Enterprise risk and compliance : operational risk and controls across a wide range of regulatory environments.
Biggest changeWe offer a comprehensive range of services in this area, including: Accounts payable : Our accounts payable services include document management, vendor master data management, invoice receipt and processing, accuracy audits, reconciliations, aging analyses, help desk management, payments processing and travel and expense processing; Invoice-to-cash : Our invoice-to-cash services include customer master data management, credit and contract management, data validation and credit worthiness assessments, billing, collections, accounts receivable maintenance and reporting, credit review support, bad debts research, accounts receivable reconciliation, and dispute and deduction management services; Record to report : Our record to report services include closing and reporting process management, general accounting and industry-specific accounting services, treasury services, tax services, and external reporting, including statutory accounting and reporting; Financial planning and analysis : Our financial planning and analysis services include budgeting, planning and forecasting support, management reporting, business, financial and operational analytics, transformation design, digital-infused process enhancement, enterprise data and advisory services, master data management and data quality services and data lake implementation; and Enterprise risk and compliance : Our enterprise risk and compliance services include operational risk and controls across a wide range of regulatory environments, including SOX and controls monitoring, controls transformation, ERP and digital controls, third party risk management, internal audit and audit analytics.
We enable domain-led digital transformation for our clients through our Digital Operations Services and Data-Tech-AI Services . Digital Operations Services Our Digital Operations services embed digital, advanced analytics and cloud-based offerings into our business process outsourcing solutions where we transform and run our clients’ operations with an aim to achieve higher levels of end-to-end performance.
We enable domain-led digital transformation for our clients through our Digital Operations Services and Data-Tech-AI Services . Digital Operations Services Our Digital Operations services embed digital, advanced analytics, AI and cloud-based offerings into our business process outsourcing solutions where we transform and run our clients’ operations with an aim to achieve higher levels of end-to-end performance.
See Item 1A—“Risk Factors—Risks Related to our Business and Operations—Recent and future legislation and executive action in the United States and other jurisdictions could significantly affect the ability or willingness of our clients and prospective clients to utilize our services.” Our collection, use, disclosure and retention of personal health-related and other information is subject to an array of privacy, data security, and data breach notification laws and regulations that change frequently, are inconsistent across the jurisdictions in which we do business, and impose significant compliance costs.
See Item 1A—“Risk Factors—Risks Related to our Business and Operations—Recent and future legislation and executive action in the United States and other jurisdictions could significantly affect the ability or willingness of our clients and prospective clients to utilize our services.” 15 Our collection, use, disclosure and retention of personal health-related and other information is subject to an array of privacy, data security, and data breach notification laws and regulations that change frequently, are inconsistent across the jurisdictions in which we do business, and impose significant compliance costs.
Our alliances generally fall into one of the following categories: • Strategic, go-to-market partnerships • Deal-specific relationships to jointly solve a specific issue for a client • Reseller arrangements to provide third party partner software and cloud solutions • Digital and other “white label” embedded technology-based relationships We have three primary types of partners: consulting partners, digital partners, and solution partners.
Our alliances generally fall into one of the following categories: • Strategic, go-to-market partnerships • Deal-specific relationships to jointly solve a specific issue for a client • Reseller arrangements to provide third party partner software and cloud solutions • Digital and other “white label” embedded technology-based relationships 11 We have three primary types of partners: consulting partners, digital partners, and solution partners.
Service delivery model We seek to be a seamless extension of our clients’ operations. To that end, we developed the Genpact Virtual Captive SM service delivery model, in which we create a virtual extension of our clients’ teams and environments. Our 13 clients get dedicated employees and management, as well as dedicated infrastructure at our delivery centers.
Service delivery model We seek to be a seamless extension of our clients’ operations. To that end, we developed the Genpact Virtual Captive SM service delivery model, in which we create a virtual extension of our clients’ teams and environments. Our clients get dedicated employees and management, as well as dedicated infrastructure at our delivery centers.
Our approach Many of our client solutions are embedded with our Digital Smart Enterprise Processes SM ( Digital SEPs ), a patented and highly granular approach to recognize the critical factors that dramatically improve business performance to help drive client outcomes.
Additionally, many of our client solutions are embedded with our Digital Smart Enterprise Processes SM ( Digital SEPs ), a patented and highly granular approach to recognize the critical factors that dramatically improve business performance to help drive client outcomes.
Our hedging activities and currency transfers are restricted by regulations in certain countries, including China, India, the Philippines and Romania. Certain Bermuda Law Considerations As a Bermuda company, we are also subject to regulation in Bermuda.
Our hedging activities and currency transfers are restricted by regulations in certain countries, including China, India, Malaysia, the Philippines and Romania. Certain Bermuda Law Considerations As a Bermuda company, we are also subject to regulation in Bermuda.
In the United States, Section 230 of the Communications Decency Act (the "CDA") shields “interactive computer services” (e.g., websites, social media platforms) from liability for the speech of their users, with certain exceptions.
In the United States, Section 230 of the Communications Decency Act shields “interactive computer services” (e.g., websites, social media platforms) from liability for the speech of their users, with certain exceptions.
The core operations services we provide to these clients include demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery, order management, digital commerce, customer experience and risk management.
The core operations services we provide to these clients include demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery management, order management, digital commerce and customer experience.
Our performance management approach supports our 11 career philosophy by encouraging employees to reflect on their performance, set challenging goals, receive feedback, identify their development needs and find relevant learning and training opportunities.
Our performance management approach supports our career philosophy by encouraging employees to reflect on their performance, set challenging goals, receive feedback, identify their development needs and find relevant learning and training opportunities.
Sales and commercial: We drive growth and experience for our clients by transforming and running the end-to-end sales lifecycle for our clients through services such as campaign management, lead generation, qualification and deductions.
Sales and commercial, marketing and experience services Sales and commercial: We drive growth and experience for our clients by transforming and running the end-to-end sales lifecycle for our clients through services such as campaign management, lead generation, qualification and deductions.
We make available free of charge on our website, www.genpact.com, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those 16 reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
We make available free of charge on our website, www.genpact.com, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as 17 reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
In the United States, personal information is subject to numerous federal and state laws and regulations relating to privacy, data security, and breach notification, including, for example, the Financial Modernization Act (sometimes referred to as the Gramm-Leach-Bliley Act), Health Insurance Portability and Accountability Act, Federal Trade Commission Act, Family Educational Rights and Privacy Act, Communications Act, Electronic Communications Privacy Act, and the California Consumer Privacy Act.
In the United States, personal information is subject to numerous federal and state laws and regulations relating to privacy, data security, and breach notification, including, for example, the Financial Modernization Act (sometimes referred to as the Gramm-Leach-Bliley Act), Health Insurance Portability and Accountability Act, Federal Trade Commission Act, Family Educational Rights and Privacy Act, Communications Act, Electronic Communications Privacy Act, and state-level comprehensive privacy laws, including the California Consumer Privacy Act.
Our contracts with clients for Digital Operations services often take the form of a master services agreement ("MSA"), which is a framework agreement that we then supplement with statements of work ("SOWs") or other service level agreements, such as purchase orders or business services agreements ("BSAs").
Our contracts with clients for Digital Operations services often take the form of a master services agreement ("MSA"), which is a framework agreement that we then supplement with statements of work ("SOWs") or other service level agreements, such as supplements, work orders, purchase orders or business services agreements.
Because of our insurance processing activities in the United States, we are currently licensed as a third-party administrator in 42 states and are regulated by the department of insurance in each such state. In two other states, we qualify for regulatory exemption from licensing based on the insurance processing activities we provide.
Because of our insurance processing activities in the United States, we are currently licensed as a third-party administrator in 43 states and are regulated by the department of insurance in each such state. In two other states, we qualify for regulatory exemption from licensing based on the insurance processing activities we provide.
Our Digital SEPs combine Lean Six Sigma methodologies – which reduce inefficiency and improve process quality – with advanced domain-specific digital technologies, drawing on our industry acumen, our expertise in Artificial Intelligence (AI) and experience-centric principles, and our deep understanding of how businesses run.
Our Digital SEPs combine Lean Six Sigma methodologies – which reduce inefficiency and improve process quality – with advanced domain-specific digital technologies, drawing on our industry acumen, our expertise in AI and experience-centric principles, and our deep understanding of how businesses run.
In addition to our professional services, such as CFO advisory, finance and accounting, and supply chain, sourcing and procurement, that are available to clients across our verticals, we offer core industry-specific services to clients in select verticals.
In addition to our professional services, such as finance and accounting, CFO advisory, supply chain, sourcing and procurement, and sales and commercial, that are available to clients across our verticals, we offer core industry-specific services to clients in select verticals.
Corporate social responsibility Our approach to corporate social responsibility focuses on two new pillars tied to our purpose: Better Access , which reflects our aim to provide the communities in which we operate with better access to heathcare, education and opportunities, and Better Planet , which reflects our aim to inform, educate, and catalyze action on the different facets of the environment and climate change and help make the planet work better for all.
Corporate social responsibility Our approach to corporate social responsibility focuses on two pillars tied to our purpose: Better Access , which reflects our aim to provide the communities in which we operate with better access to healthcare, education and opportunities, and Better Planet , which reflects our aim to inform, educate, and catalyze action on the different facets of the environment and climate change and help make the planet work better for all.
Our core operations services for these clients include retail customer onboarding, customer service, collections, loan and payment operations, customer onboarding, commercial loan servicing, equipment and auto loan servicing, mortgage origination and servicing, compliance services, reporting and monitoring services and wealth management operations support.
Our core operations services for these clients include retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan servicing, equipment and auto loan servicing, mortgage origination and servicing, compliance services, risk management services, reporting and monitoring services and wealth management operations support.
We also hold entity adjuster licenses in 22 states that require licensing. Certain laws may apply to our content moderation activity, such as laws regulating hate speech on the internet.
We also hold entity adjuster licenses in 24 states that require licensing. Certain laws may apply to our content moderation activity, such as laws regulating hate speech on the internet.
Our life sciences and healthcare clients include pharmaceutical, medical technology, medical device and biotechnology companies as well as retail pharmacies, distributors, diagnostic labs, healthcare payers (health insurers) and providers, and pharmacy benefit managers. Our core operations services for life sciences clients include regulatory affairs services, such as lifecycle management, regulatory operations, Chemistry Manufacturing Controls compliance and regulatory information management.
Our life sciences and healthcare clients include pharmaceutical, medical technology, medical device and biotechnology companies as well as retail pharmacies, distributors, diagnostic labs, and healthcare payers (health insurers) and providers. Our core operations services for life sciences clients include regulatory affairs services, such as lifecycle management, regulatory operations, Chemistry Manufacturing Controls compliance and regulatory information management.
Our competitors include: • large multinational service providers, primarily accounting and consulting firms, that provide consulting and other professional services; • companies that are primarily business process service providers operating from low-cost countries, most commonly India; • companies that are primarily information technology service providers with some business process service capabilities; and • smaller, niche service providers that provide services or products in a specific geographic market, industry or service area, including digital.
Our competitors include: • large multinational service providers, primarily accounting and consulting firms, that provide consulting and other professional services; • companies that are primarily business process service providers operating from low-cost countries, most commonly India; 14 • companies that are primarily information technology service providers with some business process service capabilities; and • smaller, niche service providers that provide services or products in a specific geographic market, industry or service area, including new AI and digital technologies.
As of December 31, 2022, we had a portfolio of more than 50 patents and pending patent applications globally. Additionally, we have over 200 trademarks registered in various jurisdictions. We often use third-party and client software platforms and systems to provide our services.
As of December 31, 2023, we had a portfolio of more than 60 patents and pending patent applications globally. Additionally, we have over 200 trademarks registered in various jurisdictions. We often use third-party and client software platforms and systems to provide our services.
Our service offerings We offer the following professional services to our clients: • Core industry operations specific to our chosen industry verticals; and • Enterprise Services : CFO advisory, finance and accounting, supply chain, sourcing and procurement, sales and commercial, and environmental, social and governance services.
Our service offerings We offer the following professional services to our clients: • Enterprise services : Finance and accounting, CFO advisory, supply chain, sourcing and procurement, sales and commercial, marketing and experience, and environmental, social and governance services; and • Core industry operations services that are specific to our chosen industry verticals.
These SOWs, purchase orders and BSAs cover in more detail the type of work to be performed and the associated amounts to be billed. For our Data-Tech-AI services, we typically enter into software-as-a-service and/or consulting agreements with our clients depending on the scope of the services to be performed.
These SOWs and other service level agreements cover in more detail the type of work to be performed and the associated amounts to be billed. For our Data-Tech-AI services, we typically enter into software-as-a-service and/or consulting agreements with our clients depending on the scope of the services to be performed.
We believe that the principal competitive factors in our industry include: • deep expertise in industry-specific domains and processes; • ability to advise clients on how to transform their processes and deliver transformation that drives business value; • ability to provide innovative services and products, including digital offerings; • ability to consistently add value through digital transformation and continuous process improvement; • reputation and client references; • contractual terms, including competitive pricing and innovative commercial models; • scope of services; • quality of products, services and solutions; • ability to sustain long-term client relationships; and • global reach and scale. 14 Our clients typically retain us on a non-exclusive basis.
We believe that the principal competitive factors in our industry include: • deep expertise in industry-specific domains and processes; • ability to advise clients on how to transform their processes and deliver transformation that drives business value; • ability to provide innovative services and products, including digital offerings; • ability to consistently add value through digital transformation and continuous process improvement; • reputation and client references; • contractual terms, including competitive pricing and innovative commercial models; • scope of services; • quality of products, services and solutions; • ability to sustain long-term client relationships; and • global reach and scale.
If they determine that the new business is aligned with our strategic objectives and a good use of our resources, then our business development team is authorized to pursue the opportunity. Global delivery We serve our clients using our global network of more than 80 delivery centers in more than 20 countries.
If they determine that the new business is aligned with our strategic objectives and a good use of our resources, then our business development team is authorized to pursue the opportunity. 13 Global delivery We serve our clients using our global network of more than 90 delivery centers in more than 25 countries.
We also have many employees in these and additional countries, such as Canada, Ireland, Singapore, Spain and Turkey, who work with our clients either onsite or virtually, which offers flexibility for both clients and employees. With this global network, we are able to manage complex processes around the world.
We also have employees in these and additional countries, such as Ireland, Singapore and South Africa, who work with our clients either onsite or virtually, which offers flexibility for both clients and employees. With this global network, we are able to manage complex processes around the world.
We have delivery centers in Australia, Brazil, Bulgaria, China, Costa Rica, Egypt, Germany, Guatemala, Hungary, India, Israel, Italy, Japan, Malaysia, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, South Africa, Thailand, the United Kingdom and the United States.
We have delivery centers in Argentina, Australia, Brazil, Bulgaria, Canada, China, Costa Rica, Egypt, Germany, Guatemala, Hungary, India, Israel, Italy, Japan, Malaysia, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Thailand, Turkey, the United Kingdom and the United States.
In the United States, we are either directly subject to, or contractually required to comply or facilitate our clients’ compliance with, laws and regulations arising out of our work for clients operating there, especially in the area of banking, financial services and insurance, such as the Gramm-Leach-Bliley Act, the Fair Credit Reporting Act, the Fair and Accurate Credit Transactions Act, the Right to Financial Privacy Act, the Bank Secrecy Act, the USA PATRIOT Act, the Bank Service Company Act, the Home Owners Loan Act, the Electronic Funds Transfer Act, the Equal Credit Opportunity Act, and 15 regulation by U.S. agencies such as the SEC, the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Commodity Futures Trading Commission, the Federal Financial Institutions Examination Council, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau.
In the United States, we are either directly subject to, or contractually required to comply or facilitate our clients’ compliance with, laws and regulations arising out of our work for clients operating there, especially in the area of banking, financial services and insurance, such as the Gramm-Leach-Bliley Act, the Fair Credit Reporting Act, the Fair and Accurate Credit Transactions Act, the Right to Financial Privacy Act, the Bank Secrecy Act, the USA PATRIOT Act, the Bank Service Company Act, the Home Owners Loan Act, the Electronic Funds Transfer Act, the Equal Credit Opportunity Act, and regulation by U.S. agencies such as the SEC, the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Commodity Futures Trading Commission, the Federal Financial Institutions Examination Council, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau. 16 Because of our debt collections work in the United States, we are also regulated by laws such as the Truth in Lending Act, the Fair Credit Billing Act, the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act and related regulations.
Item 1. Business Genpact is a global professional services firm that makes business transformation real. We drive digital-led innovation and run digitally-enabled intelligent operations for our clients, guided by our experience over time running thousands of processes for hundreds of Fortune Global 500 companies. We have over 118,900 employees serving clients in key industry verticals from more than 35 countries.
Item 1. Business Genpact is a global professional services and solutions firm that makes business transformation real. We drive digital-led innovation and run digitally-enabled operations for our clients, guided by our experience running thousands of processes for hundreds of global companies. We have over 129,100 employees serving clients in key industry verticals from more than 35 countries.
Our clients include some of the biggest brands in the world, many of which are leaders in their industries, including about one fifth of the Fortune Global 500.
Our clients include some of the biggest brands in the world, many of which are leaders in their industries, including about a quarter of the Fortune Global 500.
Regulation We are subject to regulation in many jurisdictions around the world as a result of the complexity of our operations and services, particularly in the countries where we have operations and where we deliver services. We are also subject to regulation by regional bodies such as the European Union ("EU").
Our clients typically retain us on a non-exclusive basis. Regulation We are subject to regulation in many jurisdictions around the world as a result of the complexity of our operations and services, particularly in the countries where we have operations and where we deliver services. We are also subject to regulation by regional bodies such as the European Union ("EU").
In 2022, we promoted more than 14,000 of our employees and encouraged employee career growth through our Destination Growth program . We also regularly monitor employee retention levels and continue to enhance our pay-for-performance approach in an effort to retain our top talent.
In 2023, we promoted more than 13,000 of our employees and encouraged employee career growth through our Destination Growth program . We also closely monitor employee retention levels and regularly evaluate our pay-for-performance approach in an effort to retain our top talent.
We apply user and customer experience principles to our domain expertise and innovative technology to create solutions designed to quickly and aptly meet client objectives. The results can include quick-turnaround proof of concept prototypes that clients can install and test in their own environments.
We partner with clients to show them how new digital solutions can drive business outcomes. We apply user and customer experience principles to our domain expertise and innovative technology to create solutions designed to quickly and aptly meet client objectives. The results can include quick-turnaround proof of concept prototypes that clients can install and test in their own environments.
These organizations seek partners that can improve productivity while creating competitive advantages and driving business outcomes, such as expanded market share, seamless customer experiences, increased revenue, working capital improvement, increased profitability, and minimized risk and loss.
In this environment, companies need industry-tailored solutions to reimagine their business models end-to-end and adapt to rapid change. These organizations seek partners that can improve productivity while creating competitive advantages and driving business outcomes, such as expanded market share, seamless customer experiences, increased revenue, working capital improvement, increased profitability, and minimized risk and loss.
TalentMatch also gives our employees the opportunity to take their careers in their desired directions, thus increasing employee satisfaction, and bolstering our ability to scale the “work from anywhere” model. Amber , our engagement AI chatbot and employee experience platform, enables transformation of our employee engagement strategy.
TalentMatch also gives our employees the opportunity to take their careers in their desired directions, thus increasing employee satisfaction, and bolstering our ability to scale our flexible working model. In 2023, we filled more than 40% of our open positions with internal hires. Amber , our engagement AI chatbot and employee experience platform, enables transformation of our employee engagement strategy.
Genpact Cora , our AI-based platform, integrates our proprietary automation, analytics and AI technologies with those of our strategic partners into a unified offering. It draws insights from our deep domain and operations expertise in our target industries and service lines to create analytics-based solutions that are focused on improving customer and user experience to accelerate clients’ digital transformations.
It draws insights from our deep domain and operations expertise in our target industries and service lines to create analytics-based solutions that are focused on improving customer and user experience to accelerate clients’ digital transformations.
By digitizing how we engage with our employees through Amber, we have increased the scope and frequency of employee feedback and have gained the ability to assess employee engagement and identify trends in employee engagement and satisfaction across the company.
Amber provides an outlet for unbiased and judgment free conversations for our employees and live predictive people analytics for business and HR leaders. 12 By digitizing how we engage with our employees through Amber, we have increased the scope and frequency of employee feedback and have gained the ability to assess employee engagement and identify trends in employee engagement and satisfaction across the company.
Section 230 of the CDA and other laws related to hate speech on the internet are currently the topic of significant debate. We expect that these laws will continue to evolve and change over time.
The future of Section 230 and the scope of the protections it provides to online publishers and other laws related to bullying, harassing, offensive materials and hate speech on the internet are currently the topic of significant debate. We expect that these laws will continue to evolve and change.
In 2022, we also invested in technologies and programs designed to create a better employee experience, with a particular focus on employee well being.
In 2023, we continued to invest in technologies and programs designed to improve employee experience, with a particular focus on employee well being.
Our clients in the high tech industry vertical include companies in the information and digital technology, software, digital platform, electronics, semiconductor, and enterprise technology sectors.
High Tech and Manufacturing Our High Tech and Manufacturing segment covers services we provide to clients in the high tech hardware, high tech software and manufacturing sectors. Our clients in the high tech industry include companies in the information and digital technology, software, digital platform, electronics, semiconductor, enterprise technology, media, services and hospitality sectors.
Additionally, we continued to focus on the learning and development of our employees to provide them with the critical skills needed for the future and to build their careers.
We continued to develop and refine our artificial intelligence ("AI") capabilities, prioritizing our investments in new generative AI solutions. We also continued to focus on the learning and development of our employees to provide them with the critical skills needed for the future and to build their careers.
We have created, and constantly reinforce, a culture that emphasizes collaboration, innovation, process improvement, and dedication to our clients.
As a talent-led organization, our people are critical to the success of our business. We have created, and constantly reinforce, a culture that emphasizes collaboration, innovation, process improvement, and dedication to our clients.
Partnerships and alliances We continue to invest in and expand our strategic alliances with companies whose services and solutions complement ours. Together, we work to enhance our existing solutions or create new offerings to meet market needs.
For more about our contracting frameworks, see Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—Net Revenues.” Partnerships and alliances We continue to invest in and expand our strategic alliances with companies whose services and solutions complement ours. Together, we work to enhance our existing solutions or create new offerings to meet market needs.
Like our client portfolio, members of this team are based around the globe. Our business development team focuses both on supporting our strategic client accounts and acquiring new clients. We have designated lead client partners and global relationship managers for each of our strategic client relationships.
Sales and marketing We market our services and solutions to both existing and potential clients through our business development team. Like our client portfolio, members of this team are based around the globe. Our business development team focuses both on supporting our strategic client accounts and acquiring new clients.
The length of our selling cycle varies depending on the type of engagement. The sales cycle for our advisory and project work is typically much shorter than the sales cycle for a large business process engagement.
We continuously monitor our client satisfaction levels to ensure that we maintain high service levels using metrics such as the Net Promoter Score. The length of our selling cycle varies depending on the type of engagement. The sales cycle for our advisory and project work is typically much shorter than the sales cycle for a large business process engagement.
These services allow enterprises to be more flexible and help them focus on high-value work to better compete in their industries.
These services allow enterprises to be more flexible and help them focus on high-value work to better compete in their industries. Our Digital Operations solutions also include certain IT services functions, including end-user computing support and infrastructure production support.
Our core operations solutions for these clients include industry-specific solutions for supply chain management, direct and indirect procurement, logistics services, field services, aftermarket services support, industrial asset optimization and engineering services. Our clients We serve more than 800 clients across many industries and geographies.
Our core operations solutions for these clients include industry-specific solutions for supply chain management, direct and indirect procurement, logistics, field, aftermarket support and engineering services. Revenues from our High Tech and Manufacturing segment in 2023 were $1.68 billion, representing 38% of our total 2023 revenue. Our clients We serve approximately 800 clients across many industries and geographies.
The core operations services we provide to these clients include industry-specific solutions for trust and safety, advertising sales support, data engineering, user experience, AI, machine learning, intelligent automation, order management, supply chain management, digital content management and risk management. Our manufacturing and services clients include companies in the aerospace, automotive, energy, manufacturing, transportation and logistics, media, publishing and hospitality sectors.
The core operations services we provide to these clients include industry-specific solutions for trust and safety, advertising sales support, customer and user experience, customer care support and supply chain management. Our manufacturing clients include companies in the aerospace, automotive and mobility, chemicals, energy, electric vehicles and batteries, industrial machinery, materials transportation and logistics, oil and gas and utilities sectors.
From October 2002 to January 2005, he was Senior Vice President, Quality and Global Operations, for GE’s Commercial Equipment Finance division. Michael Weiner has served as our Senior Vice President, Chief Financial Officer since August 2021. Before joining Genpact, he was the executive vice president, chief financial officer and treasurer of National General Holdings Corp. from 2010 to 2021.
Before he led our Consumer Goods, Retail and Life Sciences business, he held various roles at Genpact since joining us in 1999. Michael Weiner has served as our Senior Vice President, Chief Financial Officer since August 2021. Before joining Genpact, he was the executive vice president, chief financial officer and treasurer of National General Holdings Corp. from 2010 to 2021.
Prior to that, he worked with Ally Financial's GMAC Insurance unit, Cerberus Operations and Advisory Company, Citigroup, KPMG LLP and Bankers Trust Company.
Prior to that, he worked with Ally Financial's GMAC Insurance unit, Cerberus Operations and Advisory Company, Citigroup, KPMG LLP and Bankers Trust Company. Sameer Dewan has served as Senior Vice President and Global Business Leader for our Financial Services business since November 2023.
Our digital and solution partnerships aim to nurture relationships with established and emerging players. These potential partners specialize in leading-edge disruptive digital technologies and solutions that we can embed into our offerings or jointly bring to market. 12 Sales and marketing We market our services to both existing and potential clients through our business development team.
Our digital and solution partnerships aim to nurture relationships with established and emerging players in technology and AI. These potential partners specialize in leading-edge disruptive digital technologies and solutions that we can embed into our offerings or jointly bring to market. Our people As of December 31, 2023, we had approximately 129,100 employees working in more than 35 countries.
Data-Tech-AI Services Our Data-Tech-AI services focus on designing and building solutions that harness the power of digital technologies, data and advanced analytics, AI, and cloud-based software-as-a-service (SaaS) offerings to help transform our clients’ businesses and operations. Using human-centric design, we help clients build new products and services, create digital workspaces, and drive customer, client, employee and partner engagement.
Revenues from our Digital Operations services in 2023 were $2.48 billion, representing 55% of our total 2023 revenue. 8 Data-Tech-AI Services Our Data-Tech-AI services focus on designing and building solutions that harness the power of digital technologies, data and advanced analytics, AI, and cloud-based software-as-a-service (SaaS) offerings to help transform our clients’ businesses and operations.
All fifty U.S. states and the District of Columbia have implemented separate data security and breach notification laws with which we must comply; in addition, some states have strengthened their existing laws.
There are also various state-level privacy laws that specifically regulate consumer health data, including recently enacted laws in Connecticut, Nevada and Washington. All fifty U.S. states and the District of Columbia have implemented separate data security breach notification laws with which we must comply, and some states have added specific data security standards to their existing laws.
Evolving laws and regulations in India protecting the use of personal information could also impact how we handle vendor and employee data in India. As privacy laws and regulations around the world continue to evolve, these changes could adversely affect our business operations, websites and mobile applications that are accessed by residents in the applicable countries.
Other countries in Africa, Asia and Latin America have either passed data privacy legislation or are considering data protection laws that affect or may affect us. As privacy laws and regulations around the world continue to evolve, these changes could adversely affect our business operations, websites and mobile applications that are accessed by residents in the applicable countries.
Domain-led digital transformation Industry disruption is pervasive, driven by an explosion in digital technologies, increased use of data and analytics, new competitors, and shifting market dynamics. In this environment, companies need industry-tailored solutions to reimagine their business models end-to-end and adapt to rapid change.
We believe our approach to digital-led business transformation, enabled through combining our domain expertise with our skills in AI, digital and analytics, differentiates us from our competitors. Our approach to digital-led transformation Industry disruption is pervasive, driven by an explosion in digital technologies, increased use of AI, data and analytics, new competitors, and shifting market dynamics.
These business development personnel are supported by industry and capability subject matter experts to ensure our services and solutions best address the needs of our clients. We continuously monitor our client satisfaction levels to ensure that we maintain high service levels using metrics such as the Net Promoter Score.
We have designated lead client partners and global relationship managers for each of our strategic client relationships. These business development personnel are supported by industry and capability subject matter experts to ensure our services and solutions best address the needs of our clients.
White has been with Genpact since 2005, and prior to her current role she served as our Senior Vice President and Deputy General Counsel. Before joining Genpact, she was a corporate attorney in the New York and London offices of Paul, Weiss, Rifkind, Wharton & Garrison LLP. 17
Before joining Genpact, she was a corporate attorney in the New York and London offices of Paul, Weiss, Rifkind, Wharton & Garrison LLP. 18
Our Enterprise360 intelligence platform enables our clients to harness the power of data and insights derived from running our clients' operations leveraging proprietary metrics and benchmarks from our Digital SEPs. This platform also uses AI for prescriptive actions to pinpoint transformation opportunities that can unlock operational excellence and growth.
The ability to organize complex data sets and use analytics to derive actionable insights is increasingly critical to drive business outcomes for our clients. Our Enterprise360 intelligence platform enables our clients to harness the power of data and insights derived from running our clients' operations leveraging proprietary metrics and benchmarks from our Digital SEPs.
Balkrishan Kalra has served as our Senior Vice President and Business Leader for Consumer Goods, Retail and Life Sciences since 2008, has led our Healthcare business since 2016 and in 2020 assumed responsibility for our Banking and Capital Markets businesses. Prior to his current role, he held various roles at Genpact since joining us in 1999.
Prior to his appointment as our Chief Executive Officer, he served as the Senior Vice President and Business Leader for our Consumer Goods, Retail and Life Sciences business since 2008, our Healthcare business since 2016 and our Financial Services business since 2020.
Our services in this area include advisory, data management & analytics, carbon accounting, responsible sourcing, human rights assessment, sustainability diligence, ESG reporting and limited assurance for ESG reporting. Industries we serve We work with clients across our chosen industry verticals, which represent areas in which we believe we have deep industry acumen.
Environmental, social and governance services We help our clients meet their sustainability objectives, environmental, social and governance (ESG) regulatory requirements, voluntary commitments and operational improvements. Our services in this area include advisory, data management and analytics, carbon accounting, responsible sourcing, sustainable supply chain, human rights assessment, sustainability diligence, sustainable technology, ESG reporting and limited assurance for ESG reporting.
We also provide services in the areas of partner management and commercial operations, such as pricing and promotion optimization, and B2B customer experience, including order management, deductions and dispute management. Environmental, social and governance services We offer a range of solutions to help our clients meet their sustainability objectives, environmental, social and governance (ESG) regulatory requirements or voluntary commitments.
We also provide services in the areas of partner management and commercial operations, such as pricing and promotion optimization, and B2B customer experience, including order management, deductions and dispute management. Marketing and experience: We enable our clients to drive growth by delivering transformational experiences that leverage our deep understanding of data, technology and process design.
Additionally, foreign governments outside of the EU are also taking steps to fortify their data privacy laws and regulations. For example, India, as well as some countries in Africa, Asia and Latin America, have either passed data privacy legislation or are considering data protection laws that affect or may affect us.
Data Bridge, to allow participating companies to transfer personal data from the UK to the U.S. Additionally, foreign governments outside of the EU and UK are also taking steps to fortify their data privacy laws and regulations. For example, India recently enacted a data protection law that may affect how we handle vendor and employee data in India.
We provide financial crime and risk management services in areas such as fraud and dispute management, anti-money laundering, transaction monitoring, KYC and due diligence, sanctions screening, negative media monitoring and platform implementation. We also provide end-to-end information technology services, application development and maintenance, cloud hosting, post-trade support, managed services and consulting.
We provide financial crime and risk management services in areas such as fraud and dispute management, anti-money laundering, transaction monitoring, KYC and due diligence, sanctions screening, negative media monitoring and platform implementation. Our insurance clients include insurers, brokers, agents, reinsurers and insurtech companies operating across property and casualty, specialty, life, annuity, disability and employee benefits lines of business.
The contents of our website are not incorporated by reference into this Annual Report. Information about our executive officers The following table sets forth information concerning our executive officers as of March 1, 2023: Name Age Position(s) N.V.
The contents of our website are not incorporated by reference into this Annual Report.
Supply chain, sourcing and procurement and sales and commercial services Supply chain: We offer advisory services, adoption of digital and analytics tools and technology, and services to achieve supply chain resiliency and sustainability across the value chain (plan, source, make, deliver, and after-sales). 9 Sourcing and procurement: We offer advisory and other services across the procurement value chain, including direct and indirect strategic sourcing, responsible sourcing, category management, spend analytics, procurement operations and master data management.
We cover the complete supply chain operations reference model and provide services in critical areas such as supply chain resiliency, sustainable/circular supply chain and orchestrated enterprise. 9 Sourcing and procurement: We offer advisory and managed services across the direct and indirect procurement value chain, including strategic sourcing, responsible sourcing, category management, spend analytics, procurement operations and digital platform transformation.
During the year, we sharpened our focus on a portfolio of clients who are on significant digital transformation journeys and for whom we believe we can drive meaningful business outcomes.
Our 2023 total net revenues were $4.5 billion. In 2023, we made progress on key strategic initiatives to help drive long-term profitable growth. These efforts included making continued investments in a portfolio of clients who are on significant digital transformation journeys and for whom we believe we can drive meaningful business outcomes.
Our services for healthcare clients include managing the end-to-end lifecycle of a claim, from claims processing and adjudication to claims recovery and payment integrity. 10 High Tech and Manufacturing Our High Tech and Manufacturing segment covers services we provide to clients in the high tech, manufacturing and services sectors.
Our services for healthcare clients include end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, care services and customer experience. Revenues from our Consumer and Healthcare segment in 2023 were $1.57 billion, representing 35% of our total 2023 revenue.
Tyagarajan 61 President, Chief Executive Officer and Director Michael Weiner 51 Senior Vice President, Chief Financial Officer Balkrishan Kalra 53 Senior Vice President, Financial Services and Consumer and Healthcare Piyush Mehta 54 Senior Vice President, Chief Human Resources Officer Kathryn Stein 45 Senior Vice President, Chief Strategy Officer and Global Business Leader, Enterprise Services and Analytics Heather White 50 Senior Vice President, Chief Legal Officer and Corporate Secretary N.V.
Information about our executive officers The following table sets forth information concerning our executive officers as of February 29, 2024: Name Age Position(s) Balkrishan Kalra 54 President, Chief Executive Officer and Director Michael Weiner 52 Senior Vice President, Chief Financial Officer Sameer Dewan 53 Senior Vice President, Global Business Leader, Financial Services Piyush Mehta 55 Senior Vice President, Chief Human Resources Officer Anil Nanduru 49 Senior Vice President, Global Business Leader, High Tech & Manufacturing and Consumer & Healthcare Riju Vashisht 56 Senior Vice President, Chief Growth Officer and Global Business Leader, Enterprise Services and Partnerships & Alliances Heather White 51 Senior Vice President, Chief Legal Officer and Corporate Secretary Balkrishan Kalra became our President and Chief Executive Officer in February 2024.
Core industry operations We help our clients design, transform and run core enterprise operations specific to their industries. On the foundation of our domain expertise embedded in our Digital SEP frameworks, we leverage digital technologies and specialized analytics to power clients' operations. We provide core operations support across all of our chosen industry verticals.
Core industry operations We help our clients design, transform and run processes that are specific to their industries. Using our industry and domain expertise embedded in our Digital SEP frameworks, we collaborate with our clients to power their operations in areas such as claims, underwriting, commercial leasing and lending, regulatory affairs, insurance actuarial, and trust and safety.
Before Mercer, she worked with Boston Consulting Group, the Center for Strategic and International Studies and MarketBridge Consulting. Ms. Stein also currently serves as a director of Computer Task Group, Incorporated. Heather White has served as our Senior Vice President, Chief Legal Officer and Corporate Secretary since April 2018. Ms.
Heather White has served as our Senior Vice President, Chief Legal Officer and Corporate Secretary since April 2018. Ms. White has been with Genpact since 2005, and prior to her current role she served as our Senior Vice President and Deputy General Counsel.
Our insurance clients include traditional insurers, brokers, reinsurers and insurtech companies operating across property and casualty, specialty, life, annuity, disability and employee benefits lines of business. Our core operations services for these clients span the lifecycle of insurance processes, including underwriting support, new business processing, policy administration, customer service, claims management, catastrophe modeling and actuarial services.
Our core operations services for these clients include underwriting support, new business processing, policy administration, customer service, claims management, catastrophe modeling and actuarial services. We also provide end-to-end third party administration for property and casualty claims. 10 Revenues from our Financial Services segment in 2023 were $1.23 billion, representing 27% of our total 2023 revenue.
Finance and accounting services We believe we are one of the world’s premier providers of finance and accounting services.
Finance and accounting services We believe we are one of the world’s premier providers of finance and accounting services. Our focus is on delivering fast and high-quality results, minimizing exceptions, providing a seamless user experience, and making a working capital impact for our clients.
Additionally, in 2022 more than 7,000 of our employees participated in our payroll-based charitable donation programs, and many of our employee volunteers participated in virtual volunteering initiatives such as composting, planting saplings, or eliminating single-use plastic. We are also passionate about working collectively to reduce our carbon footprint.
Additionally, in 2023 more than 5,000 of our employees participated in our payroll-based charitable donation programs, and many of our employee volunteers participated in virtual volunteering initiatives such as creating learning aids for students, awareness posters for non-profits, holiday cards for veterans, and completing at-home sustainability challenges to build a better planet.
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Our 2022 total net revenues were $4.4 billion. In 2022, we continued to invest for long-term growth following a strategy focused on delivering differentiated, domain-led solutions in a focused set of geographies, industry verticals and service lines.
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Many of our client solutions are based on Genpact Cora , our AI-based platform, which integrates our proprietary automation, analytics and AI technologies with those of our strategic partners into a unified offering.
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We also continued to invest in our emerging service lines, including supply chain, sales and commercial, and risk, which aim to expand our influence to client buying centers beyond the chief financial officer where we have historically built our strongest relationships.
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This platform also uses AI for prescriptive actions to pinpoint transformation opportunities that can unlock operational excellence and growth.
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Over the past several years, our services have evolved from focusing mainly on improving cost and efficiencies to driving meaningful business outcomes for our clients, including growth and better decision-making using our strategic insights.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur utilization rates are affected by a number of factors, including our ability to transition employees from completed projects to new assignments, hire and assimilate new employees, forecast demand for our services and thereby maintain an appropriate headcount in each of our geographies and workforce and manage attrition, and our need to devote time and resources to training, professional development and other typically non-chargeable activities.
Biggest changeOur utilization rates are affected by a number of factors, including our ability to transition employees from completed projects to new assignments, hire and assimilate new employees, forecast demand for our services and thereby maintain an appropriate headcount in each of our geographies and manage attrition, and our need to devote time and resources to training, professional development and other typically non-chargeable activities. 23 The prices we are able to charge for our services are affected by a number of factors, including our clients’ perceptions of our ability to add value through our services, competition, introduction of new services, technologies (including generative AI) or products by us or our competitors, our ability to accurately estimate, attain and sustain revenues from client engagements, margins and cash flows over long contract periods and general economic and political conditions.
Our clients, suppliers, subcontractors, and other third parties with whom we do business, including in particular cloud service providers and software vendors, generally face similar cybersecurity threats, and we must rely on the safeguards adopted by these parties.
Our clients, suppliers, subcontractors, and other third parties with whom we do business, including in particular cloud service providers and software vendors, generally face similar cybersecurity threats, and we must rely on the safeguards adopted by these third parties.
Some of these technologies, such as cloud-based services, AI and automation, and others that may emerge, have reduced and replaced some of our historical services and solutions and may continue to do so in the future.
Some of these technologies, such as cloud-based services, AI, automation, and others that may emerge, have reduced and replaced some of our historical services and solutions and may continue to do so in the future.
These projects can include performance targets that become more rigorous over the term of the contracts and service delivery components that are partially subjective by design, and we may be unable achieve such targets or to satisfy our clients’ expectations in delivering such services.
These projects can include performance targets that become more rigorous over the term of the contracts and service delivery components that are partially subjective by design, and we may be unable to achieve such targets or to satisfy our clients’ expectations in delivering such services.
Our provision for income taxes, actual tax expense and tax liability could be adversely affected by a variety of factors, including lower income before taxes generated in countries with lower tax rates, higher income generated in countries with higher tax rates, changes in tax laws and regulations or in the interpretation or enforcement of such laws and regulations, changes in applicable income tax treaties, changes in accounting principles or 23 interpretations thereof or in the valuation of deferred tax assets and liabilities, the elimination or expiration of certain tax concessions, exemptions or holidays that had reduced our tax liability, and adverse outcomes of tax examinations or tax-related litigation, including a determination by any tax authority that our transfer prices are not appropriate or that our intercompany transactions should be characterized differently than we have characterized them.
Our provision for income taxes, actual tax expense and tax liability could be adversely affected by a variety of factors, including lower income before taxes generated in countries with lower tax rates, higher income generated in countries with higher tax rates, changes in tax laws and regulations or in the interpretation or enforcement of such laws and regulations, changes in applicable income tax treaties, changes in accounting principles or interpretations thereof or in the valuation of deferred tax assets and liabilities, the elimination or expiration of certain tax concessions, exemptions or holidays that had reduced our tax liability, and adverse outcomes of tax examinations or tax-related litigation, including a determination by any tax authority that our transfer prices are not appropriate or that our intercompany transactions should be characterized differently than we have characterized them.
In cases not involving fraud or dishonesty, the liability of the director will be determined by the Supreme Court of Bermuda or other Bermuda court (with such liability as the Bermuda court thinks just) who may take into account the percentage of 37 responsibility of the director for the matter in question, in light of the nature of the conduct of the director and the extent of the causal relationship between his or her conduct and the loss suffered.
In cases not involving fraud or dishonesty, the liability of the director will be determined by the Supreme Court of Bermuda or other Bermuda court (with such liability as the Bermuda court thinks just) who may take into account the percentage of responsibility of the director for the matter in question, in light of the nature of the conduct of the director and the extent of the causal relationship between his or her conduct and the loss suffered.
All of the above could result in harm to our reputation or our clients, as well as expose us to regulatory actions or claims, any of which could materially impact our business, results of operations, financial condition and stock price. Our results of operations and share price could be adversely affected if we are unable to maintain effective internal controls.
All of the above could result in harm to our reputation or our clients, as well as expose us to regulatory actions or claims, any of which could materially impact our business, results of operations, financial condition and stock price. 30 Our results of operations and share price could be adversely affected if we are unable to maintain effective internal controls.
We often face a long selling cycle to secure a new contract. If we are successful in obtaining an engagement, that is generally followed by a long implementation period in which the services are planned in detail and we demonstrate to a client that we can successfully integrate our processes and resources with their operations.
We often face a long selling cycle to secure a new Digital Operations contract. If we are successful in obtaining an engagement, that is generally followed by a long implementation period in which the services are planned in detail and we demonstrate to a client that we can successfully integrate our processes and resources with their operations.
We may not be able to detect unauthorized use and take appropriate steps to enforce our rights, and any such steps may not be successful. Infringement by others of our intellectual property, including the costs of enforcing our intellectual property rights, may have a material adverse effect on our business, results of operations and financial condition.
We may not be able to detect unauthorized use and take appropriate steps to enforce our rights, and any such steps may not be successful. 35 Infringement by others of our intellectual property, including the costs of enforcing our intellectual property rights, may have a material adverse effect on our business, results of operations and financial condition.
We cannot be certain that our new service offerings will effectively meet client needs or that we will be able to attract clients to these service offerings. The complexity of our new service offerings, our inexperience in developing or implementing them, and significant competition in the markets for these services may affect our ability to market these services successfully.
We cannot be certain that our new services or solutions will effectively meet client needs or that we will be able to attract clients to these offerings. The complexity of our new service offerings, our inexperience in developing or implementing them, and significant competition in the markets for these services may affect our ability to market these services successfully.
In addition, in some countries, such as India, China, Romania and the Philippines, we are subject to legal restrictions on hedging activities, as well as convertibility of currencies, which limits our ability to use cash generated in one country in another country and could limit our ability to hedge our exposures.
In addition, in some countries, such as China, India, Malaysia, the Philippines and Romania, we are subject to legal restrictions on hedging activities, as well as convertibility of currencies, which limits our ability to use cash generated in one country in another country and could limit our ability to hedge our exposures.
The substance requirements could be difficult to manage or implement, and compliance with the requirements could be difficult or costly and could have a material adverse effect on us or our operations. We may not be able to realize the entire book value of goodwill and other intangible assets from acquisitions.
The substance requirements could be difficult to manage or implement, and compliance with the requirements could be difficult or costly and could have a material adverse effect on us or our operations. 37 We may not be able to realize the entire book value of goodwill and other intangible assets from acquisitions.
We manage only a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps. A portion of our indebtedness, including borrowings under our credit facility, bears interest at variable interest rates primarily based on the Secured Overnight Financing Rate.
We manage only a portion of our interest rate risk related to floating rate indebtedness by entering into interest rate swaps. A portion of our indebtedness, including borrowings under our credit facility, bears interest at variable interest rates primarily based 33 on the Secured Overnight Financing Rate.
Fines can reach as high as 4% of a company’s annual total revenue, potentially including the revenue of a company’s international affiliates. Additionally, foreign governments outside of the EU are also taking steps to fortify their data privacy laws and regulations.
Fines can reach as high as 4% of a company’s annual total revenue, potentially including the revenue of a company’s international affiliates. Additionally, governments outside of the EU are also taking steps to fortify their data privacy laws and regulations.
However, many of the policies we have benefited from in the past have lapsed or are no longer available to us, and there is no assurance that policies from which we continue to benefit will be available to us in the future.
However, many of the fiscal policies we have benefited from in the past have lapsed or are no longer available to us, and there is no assurance that fiscal policies from which we continue to benefit will be available to us in the future.
Failure to consistently meet service requirements of a client, whether due to: (a) natural or other disasters, telecommunications failures, power or water shortages, extreme weather conditions (whether as a result of climate change or otherwise), medical epidemics, pandemics or other contagious diseases (such as COVID-19) or other natural or manmade disasters or catastrophic events; (b) breach of or incursion into our computer systems (for example, through a ransomware attack); (c) other systems failure, including due to aged IT systems or infrastructure; or (d) errors made by our employees in the course of delivering services to our clients could disrupt the client’s business and result in a reduction in our revenues, clients terminating their business relationships with us and/or a claim for damages against us.
Failure to consistently meet service requirements of a client, whether due to: (a) natural or other disasters, telecommunications failures, power or water shortages, extreme weather conditions (whether as a result of climate change or otherwise), medical epidemics, pandemics or other contagious diseases, or other natural or manmade disasters or catastrophic events; (b) breach of or incursion into our computer systems (for example, through a ransomware attack); (c) other systems failure, including due to aged IT systems or infrastructure; or (d) errors made by our employees in the course of delivering services to our clients could disrupt the client’s business and result in a reduction in our revenues, clients terminating their business relationships with us and/or a claim for damages against us.
We have received a written assurance from the Bermuda Minister of Finance under The Exempted Undertaking Tax Protection Act 1966 of Bermuda to the effect that if there is enacted in Bermuda any legislation imposing tax computed on profits or income, or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax, then the imposition of any such tax shall not be applicable to us or to any of our operations or common shares, debentures or other obligations or securities until March 31, 2035, except insofar as such tax applies to persons ordinarily resident in Bermuda or is payable by us in respect of real property owned or leased by us in Bermuda.
We previously received a written assurance from the Bermuda Minister of Finance under The Exempted Undertaking Tax Protection Act 1966 of Bermuda (the "EUTP") to the effect that if there is enacted in Bermuda any legislation imposing tax computed on profits or income, or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax, then the imposition of any such tax shall not be applicable to us or to any of our operations or common shares, debentures or other obligations or securities until March 31, 2035, except insofar as such tax applies to persons ordinarily resident in Bermuda or is payable by us in respect of real property owned or leased by us in Bermuda.
Accordingly, any adverse change in interest rates due to market conditions or otherwise could increase our cost of funding substantially. We often face a long selling cycle to secure a new contract as well as long implementation periods that require significant resource commitments, which result in a long lead time before we receive revenues from new relationships.
Accordingly, any adverse change in interest rates due to market conditions or otherwise could increase our cost of funding substantially. We often face a long selling cycle to secure a new Digital Operations contract as well as long implementation periods that require significant resource commitments, which result in a long lead time before we receive revenues from new relationships.
As we expand our operations to new countries, we will incur expenses 30 in other currencies. We report our financial results in U.S. dollars.
As we expand our operations to new countries, we will incur expenses in other currencies. We report our financial results in U.S. dollars.
We face legal, reputational and financial risks from any failure to protect client, Genpact or employee data from security incidents or cyberattacks. In providing our services and solutions to clients, we often collect, process and store proprietary, personally identifying or other sensitive or confidential client and other third-party data.
We face legal, reputational and financial risks from any failure to safeguard our systems and protect client, Genpact or employee data from security incidents or cyberattacks. In providing our services and solutions to clients, we often collect, process and store proprietary, personally identifying or other sensitive or confidential client and other third-party data.
While we have confidence that our strategic plans reflect opportunities that are appropriate and achievable, the execution of our strategy may not result in long-term growth in revenue or profitability due to a number of factors, including incorrect assumptions, global or local economic conditions, competition, changes in the industries in which we operate, sub-optimal resource allocation or any of the other risks described in this “Risk Factors” section.
While we have confidence that our strategic plans reflect opportunities that are appropriate and achievable, the execution of our strategy may not result in long-term growth in revenue or profitability due to a number of factors, including incorrect assumptions, global or local economic conditions, competition, changes in the industries in which we operate, suboptimal resource allocation or any of the other risks described in this “Risk Factors” section.
Our business depends on generating and maintaining ongoing, profitable client demand for our services and solutions, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect our results of operations.
Our business depends on generating and maintaining ongoing, profitable client demand for our services and solutions, and a significant reduction in such demand or an inability to respond to or compete in the rapidly evolving technological environment could materially affect our results of operations.
The credit agreement contains covenants that require maintenance of certain financial ratios, including consolidated leverage and interest coverage ratios, and also, under certain conditions, restrict our ability to incur additional indebtedness, create liens, make certain investments, pay dividends or make certain other restricted payments, repurchase common shares, undertake certain liquidations, mergers, 31 consolidations and acquisitions and dispose of certain assets or subsidiaries, among other things.
The amended and restated credit agreement contains covenants that require maintenance of certain financial ratios, including consolidated leverage and interest coverage ratios, and also, under certain conditions, restrict our ability to incur additional indebtedness, create liens, make certain investments, pay dividends or make certain other restricted payments, repurchase common shares, undertake certain liquidations, mergers, consolidations and acquisitions and dispose of certain assets or subsidiaries, among other things.
Our revenues are highly dependent on clients located in the United States and Europe, as well as on clients that operate in certain industries. In 2022, more than 70% of our revenues were derived from clients based in North America and more than 15% of our revenues were derived from clients based in Europe.
Our revenues are highly dependent on clients located in the United States and Europe, as well as on clients that operate in certain industries. In 2023, more than 70% of our revenues were derived from clients based in North America and more than 15% of our revenues were derived from clients based in Europe.
In 2022, we continued to face increased competition for talent with scarce skills and capabilities in new technologies, and our competitors have directly targeted our employees with these highly sought-after skills and may continue to do so.
In 2023, we continued to face increased competition for talent with scarce skills and capabilities in new technologies, and our competitors have directly targeted our employees with these highly sought-after skills and may continue to do so.
Our results of operations could be adversely affected by economic and political conditions and the effects of these conditions on our and our clients’ businesses and levels of business activity. Global macroeconomic conditions affect our clients’ businesses and the markets they serve.
Our results of operations could be adversely affected by economic and political conditions and the effects of these conditions on our and our clients’ businesses and levels of business activity. Global macroeconomic conditions affect our business, our clients’ businesses and the markets we serve.
Increased regulation, changes in existing regulation or increased government intervention in the industries in which our clients operate may adversely affect growth in such industries and therefore have an adverse impact on our revenues. Any of the foregoing factors could have a material adverse effect on our business, results of operations and financial condition.
Increased regulation, monetary policy actions, changes in existing regulation or increased government intervention in the industries in which our clients operate may adversely affect growth in such industries and therefore have an adverse impact on our revenues. Any of the foregoing factors could have a material adverse effect on our business, results of operations and financial condition.
Additionally, in the event of a ransomware or other attack involving data theft and encryption, we could face delays in the recovery of data, or a total loss of data, in the event of a lack of adequate backups and restoration testing. The steps we have taken to protect our information systems and data security may be inadequate.
Additionally, in the event of a ransomware or other attack involving data theft and encryption, we could face delays in the recovery of data, or a total loss of data, in the event of a lack of adequate backups or recovery processes. The steps we have taken to protect our information systems and data security may be inadequate.
Any further deterioration in economic activity in the United States or Europe, or in industries in which our clients operate, could adversely affect demand for our services, thus reducing our revenue.
In addition, any deterioration in economic activity in the United States or Europe, or in industries in which our clients operate, could adversely affect demand for our services, thus reducing our revenue.
If we experience an increase in the time to bill and collect for our services, our cash flows could be adversely affected. Some of our contracts contain provisions which, if triggered, could result in lower future revenues and have a material adverse effect on our business, results of operations and financial condition.
If we experience an increase in the time to bill and collect for our services due to these additional factors, our cash flows could be adversely affected. Some of our contracts contain provisions which, if triggered, could result in lower future revenues and have a material adverse effect on our business, results of operations and financial condition.
In addition, the products, services and software that we provide to our clients, or the third-party components we use to provide such products, services and software, may contain or introduce cybersecurity threats or vulnerabilities to our clients’ information technology networks, intentionally or unintentionally.
In addition, the products, services and software that we use and provide to our clients, or the third-party components of such products, services and software, sometimes contain or introduce cybersecurity threats or vulnerabilities to our and our clients’ information technology networks, intentionally or unintentionally.
In addition, our future revenues, operating margins and profitability may fluctuate as a result of lower demand for our services, lower win rates versus our competition, changes in pricing in response to client demands and competitive pressures, changes to the financial condition of our clients, employee wage levels and utilization rates, changes in foreign exchange rates, including the Indian rupee versus the U.S. dollar and the euro versus the U.S. dollar, the timing of collection of accounts receivable, enactment of new taxes, changes in domestic and international income tax rates and regulations, and changes to levels and types of share-based compensation awards and assumptions used to determine the fair value of such awards.
In addition, our future revenues, operating margins and profitability may fluctuate as a result of lower demand for our services, lower win rates versus our competition, changes in pricing in response to client demands and competitive pressures, changes to the financial condition of our clients, employee wage levels and utilization rates, changes in foreign exchange rates, including the Indian rupee versus the U.S. dollar and the euro versus the U.S. dollar, the timing of collection of accounts receivable, enactment of new taxes, changes in income tax rates and regulations in the countries where we do business, and changes to levels and types of share-based compensation awards and assumptions used to determine the fair value of such awards.
We have employees in more than 35 countries and significant operations in more than 20 countries, and these global operations could be disrupted at any time by natural or other disasters, telecommunications failures, power or water shortages, extreme weather conditions (whether as a result of climate change or otherwise), medical epidemics or pandemics (such as the COVID-19 pandemic) and other natural or manmade disasters or catastrophic events.
We have employees in more than 35 countries and significant operations in more than 20 countries, and these global operations could be disrupted at any time by natural or other disasters, telecommunications failures, power or water shortages, extreme weather conditions (whether as a result of climate change or otherwise), medical epidemics or pandemics and other natural or manmade disasters or catastrophic events.
Our industry relies on large numbers of skilled employees, and our success and profitability depend on our ability to attract, train and retain a sufficient number of employees with the right mix of skills and experience to perform services for our clients. Historically, high employee attrition has been common in our industry.
Our industry relies on large numbers of skilled employees, and our success and profitability depend on our ability to attract, train and retain a sufficient number of employees with the right mix of skills and experience to perform services for our clients. High employee attrition is common in our industry.
Similarly, those judgments may not be enforceable in countries, other than the United States, where we have assets. 38
Similarly, those judgments may not be enforceable in countries, other than the United States, where we have assets. 40
We must also navigate cross-border data transfer restrictions in the UK. The European Commission and UK regulators have authorized continued personal data transfers between the EEA and the UK, but the UK has its own rules for regulating personal data transfers to other jurisdictions, such as the United States.
We must also navigate cross-border data transfer restrictions in the UK. The European Commission and UK regulators have authorized continued personal data transfers between the EEA and the UK, but the UK has its own rules for regulating personal data transfers to other jurisdictions, such as the U.S.
Macroeconomic conditions, including persistent inflation in the countries in which we do business and have operations, increasing geopolitical tensions, the possibility of an economic downturn globally or regionally, changes in global trade policies and the lingering impacts of the COVID-19 pandemic , could also result in financial difficulties for our clients, including bankruptcy and insolvency.
Macroeconomic conditions, including persistent inflation in the countries in which we do business and have operations, increasing geopolitical tensions, the possibility of an economic downturn globally or regionally and changes in global trade policies, could also result in financial difficulties for our clients, including bankruptcy and insolvency.
As of December 31, 2022, we had $1,684 million of goodwill and $90 million of intangible assets. We periodically assess these assets to determine if they are impaired and we monitor for impairment of goodwill relating to all acquisitions and our formation in 2004.
As of December 31, 2023, we had $1,684 million of goodwill and $53 million of intangible assets. We periodically assess these assets to determine if they are impaired and we monitor for impairment of goodwill relating to all acquisitions and our formation in 2004.
Most of our expenses are incurred and paid in Indian rupees, with the remaining amounts largely in U.S. dollars, Chinese renminbi, Romanian lei, euros, UK pounds sterling, Philippine pesos, Japanese yen, Polish zloty, Mexican pesos, Guatemalan quetzals, Hungarian forint, Canadian dollars, South African rand and Australian dollars.
Most of our expenses are incurred and paid in U.S. dollars, with the remaining amounts largely in Indian rupees, Chinese renminbi, Romanian lei, euros, UK pounds sterling, Philippine pesos, Japanese yen, Polish zloty, Mexican pesos, Guatemalan quetzals, Hungarian forint, Canadian dollars, South African rand, Costa Rican Colón, Malaysian ringgit and Australian dollars.
Some of our competitors have greater financial, marketing, technological or other resources and larger client bases than we do, and may expand their service offerings and compete more effectively for clients and employees than we do. Some of our competitors have more established reputations and client relationships in our markets than we do.
Some of our competitors have greater financial, marketing, technological or other resources and larger client bases than we do, and may expand their service offerings more quickly or at a lower cost and compete more effectively for clients and employees than we do. Some of our competitors have more established reputations and client relationships in our markets than we do.
Additionally, given the global nature of our operations, any protracted conflict or the broader macroeconomic impact of sanctions imposed on Russia could have an adverse impact on our business, profitability, results of operations and financial condition.
Additionally, given the global nature of our operations, the broader macroeconomic impact of sanctions imposed on Russia and other macroeconomic impacts of the protracted conflict could have an adverse impact on our business, profitability, results of operations and financial condition.
If we cannot maintain and execute adequate internal control over financial reporting or implement required new or improved controls that provide reasonable assurance of the reliability of the financial reporting and preparation of our financial statements for external use, we could suffer harm to our reputation, fail to meet our public reporting requirements on a timely basis, be unable to properly report on our business and our results of operations, or be required to restate our financial statements, and our results of operations, the market price of our common shares and our ability to obtain new business could be materially adversely affected. 29 Our industry is highly competitive, and we may not be able to compete effectively.
If we cannot maintain and execute adequate internal control over financial reporting or implement required new or improved controls that provide reasonable assurance of the reliability of the financial reporting and preparation of our financial statements for external use, we could suffer harm to our reputation, fail to meet our public reporting requirements on a timely basis, be unable to properly report on our business and our results of operations, or be required to restate our financial statements, and our results of operations, the market price of our common shares and our ability to obtain new business could be materially adversely affected.
For example, some countries in Africa, Asia and Latin America, including Brazil and Egypt, where we have operations, have implemented or are considering GDPR-like data protection laws.
For example, some countries in Africa, Asia and Latin America, including Brazil and South Africa, where we have operations, have implemented or are considering data protection laws.
Our inability to enforce physical security controls and monitor our employees working remotely also increases the risk of data breaches.
Our inability to enforce physical security controls and monitor our employees working remotely also increases the risk of security incidents.
We may be unable to anticipate the techniques used by threat actors to invade our systems and may not detect when an incursion has occurred or implement adequate preventative and responsive measures.
We may be unable to anticipate the techniques used by threat actors to infiltrate our systems and may fail to detect or timely detect when an incursion has occurred or to implement adequate preventative and responsive measures.
We have established security measures and internal controls to prevent the inadvertent or intentional exposure or loss of personally identifiable information, and we regularly assess the adequacy of and make improvements to such controls.
We have established security measures and internal controls designed to prevent the inadvertent or intentional exposure or loss of personally identifiable information and other sensitive or confidential data. We regularly assess the adequacy of and make improvements to such security measures and controls.
On November 18, 2019, we issued $400 million aggregate principal amount of 3.375% senior notes, or the 2024 notes, in an underwritten public offering. As of December 31, 2022, the amount outstanding under the 2024 notes, net of debt amortization expense of $1.1 million, was $398.9 million, which is payable on December 1, 2024 when the notes mature.
On November 18, 2019, we issued $400 million aggregate principal amount of 3.375% senior notes (the "2024 Notes") in an underwritten public offering. As of December 31, 2023, the amount outstanding under the 2024 Notes, net of debt amortization expense of $0.5 million, was $399.5 million, which is payable on December 1, 2024 when the notes mature.
Based on the results of the qualitative assessment, the Company performs the 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.
Based on the results of the qualitative assessment, we perform the quantitative assessment of goodwill impairment if we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
If more stringent labor laws become applicable to us or if our employees unionize, our profitability may be adversely affected. India has stringent labor legislation that protects employee interests, including legislation that sets forth detailed procedures for dispute resolution and employee removal and legislation that imposes financial obligations on employers upon retrenchment.
If more stringent labor laws become applicable to us or if a significant number of our employees unionize, our profitability may be adversely affected. India has stringent labor legislation that protects employee interests, including legislation that sets forth detailed procedures for dispute resolution and that imposes financial obligations on employers upon termination of employees without cause.
We have established allowances for losses of receivables and unbilled services. Actual losses on client balances could differ from those that we currently anticipate, and, as a result, we might need to adjust our allowances. We might not accurately assess the creditworthiness of our clients.
Actual losses on client balances could differ from those that we currently anticipate, and, as a result, we might need to adjust our allowances. 34 We might not accurately assess the creditworthiness of our clients.
Wage increases in the countries where we operate may reduce our profit margin. Salaries and related benefits of our employees are our most significant costs. Demand and competition for skilled employees, especially employees with the mix of skills and experience that we need to provide certain of our services, have increased significantly from historical levels.
Wage increases in the countries where we operate may reduce our profit margin. Salaries and related benefits of our employees are our most significant costs. Demand and competition for skilled employees, especially employees with the mix of skills and experience that we need to provide certain of our services, continue to be high.
To date, we have received favorable orders from appellate judicial authorities in India relating to $120 million of the $229 million demanded in the assessment orders, and we continue to defend against the remaining $109 million in demands.
To date, we have received favorable orders from appellate judicial authorities in India relating to $119 million of the $230 million demanded in the assessment orders, and we continue to defend against the remaining $111 million in demands.
We have experienced minor data incidents due to the inadvertent or intentional actions of our employees or contractors, though none have had a material impact on our operations or financial results or resulted in any regulatory fines or penalties.
We have experienced security incidents due to the actions of our employees or contractors, though none of these incidents has had a material impact on our operations or financial results or resulted in any regulatory fines or penalties.
We may face difficulties as we expand our operations into countries in which we have no prior operating experience. We intend to continue to expand our global footprint in order to maintain an appropriate cost structure and meet our clients’ delivery needs. This may involve expanding into countries other than those in which we currently operate.
We may face difficulties as we expand our operations into countries in which we have no prior operating experience. We intend to continue to expand our global footprint in order to maintain an appropriate cost structure and meet our clients’ delivery needs.
Additionally, in the first quarter of 2023, the ITA issued an assessment order seeking to impose tax on us of $865 million (converted from Indian rupees and including interest through the date of the order) in relation to a 2015 internal restructuring transaction involving our Indian subsidiaries.
Additionally, in the first quarter of 2023, the ITA issued an assessment order seeking to impose tax on us of $856 million (converted from Indian rupees and including interest through the date of the order) in relation to a 2015 internal restructuring transaction involving our Indian subsidiaries. In March 2023, the tax appellate authority in India struck down this order.
Furthermore, there is growing pressure in many jurisdictions, including the United States, and from multinational organizations such as the Organization for Economic Cooperation and Development, or the OECD, and the EU to amend existing international tax rules in order to render them more responsive to current global business practices.
Furthermore, many jurisdictions, including the United States and the EU, as well as multinational organizations, such as the Organization for Economic Cooperation and Development (the "OECD") have sought to amend existing international tax rules in order to render them more responsive to current global business practices.
We compete for business with a variety of companies, including large multinational firms that provide consulting, technology and/or business process services, offshore business process service providers in low-cost locations like India, in-house captives of potential clients, software services companies that also provide business process services and accounting firms that also provide consulting or outsourcing services.
We compete for business with a variety of companies, including large multinational firms that provide consulting, technology and/or business process services, offshore business process service providers in low-cost locations like India, in-house captives of potential clients, software services companies that also provide business process services, smaller, niche companies that compete with us in a specific geographic market, industry or service area, and accounting firms that also provide consulting or other business process services.
Generally, the duties of directors and officers of a Bermuda company are owed to the company only. Shareholders of Bermuda companies generally do not have the right to take action against directors or officers of the company except in limited circumstances.
Shareholders of Bermuda companies generally do not have the right to take action against directors or officers of the company except in limited circumstances.
Among the factors that could affect our share price are: • terrorist attacks, other acts of violence or war, natural disasters, epidemics or pandemics (including the COVID-19 pandemic), or other such events impacting countries where we or our clients have operations; • actual or anticipated fluctuations in our quarterly and annual operating results; • changes in financial estimates by securities research analysts; • changes in the economic performance or market valuations of our competitors and other companies engaged in providing similar or competitive services; • loss of one or more significant clients; • addition or loss of executive officers or key employees; • regulatory developments in our target markets affecting us, our clients or our competitors; • announcements of technological developments; • limited liquidity in our trading market; • sales or expected sales of additional common shares, either by us, our employees, or any of our shareholders, or purchases or expected purchases of common shares, including by us under existing or future share repurchase programs, which purchases are at the discretion of our board of directors and may not continue in the future; and • actions or announcements by activist shareholders or others.
Among the factors that could affect our share price are: • technological developments that have an actual or perceived impact on us or our industry, such as generative AI; • terrorist attacks, other acts of violence or war, such as the conflicts between Russia and Ukraine and Israel and Hamas, natural disasters, epidemics or pandemics, or other such events impacting countries where we or our clients have operations; • actual or anticipated fluctuations in our quarterly and annual operating results; • changes in or our inability to meet our financial estimates or the estimates of securities research analysts; • changes in the economic performance or market valuations of our competitors and other companies engaged in providing similar or competitive services; • the loss of one or more significant clients; • the addition or loss of executive officers or key employees; • regulatory developments in our target markets affecting us, our clients or our competitors; • general economic, industry and market conditions, such as geopolitical events, inflation and sustained high interest rates; • limited liquidity in our trading market; • sales or expected sales of additional common shares, either by us, our employees, or any of our shareholders, or purchases or expected purchases of common shares, including by us under existing or future share repurchase programs, which purchases are at the discretion of our board of directors and may not continue in the future; and 39 • actions or announcements by activist shareholders or others.
If we are unable to hire or retrain our employees to keep pace with the rapid and continuous changes in technology and the industries we serve, we may not be able to innovate quickly enough and fulfill client demand. If our business continues to grow, the number of people we will need to hire will increase.
If we are unable to hire or retrain our employees to keep pace with the rapid and continuous changes in technology and the industries we serve, we may not be able to innovate quickly enough and fulfill client demand.
As a Bermuda company, we are governed by, in particular, the Companies Act. The Companies Act differs in some material respects from laws generally applicable to U.S. corporations and shareholders, including the provisions relating to interested directors, mergers, amalgamations, takeovers and indemnification of directors.
The Companies Act differs in some material respects from laws generally applicable to U.S. corporations and shareholders, including the provisions relating to interested directors, mergers, amalgamations, takeovers and indemnification of directors. Generally, the duties of directors and officers of a Bermuda company are owed to the company only.
In pursuit of our growth strategy, we have invested and may continue to invest significant time and resources into developing new product or service offerings and transforming or adapting our salesforce, and these undertakings may fail to yield sufficient return to cover our investments in them.
In pursuit of our growth strategy, we have invested and will continue to invest significant time and resources into developing new product or service offerings, including through the use of AI and generative AI, and transforming, adapting and upskilling our workforce, and these undertakings may fail to yield sufficient return to cover our investments in them.
Additionally, more than 25% of our revenues were derived from clients in the financial services and insurance industries. The COVID-19 pandemic and the inflationary economic environment that has followed it have adversely affected economic activity in the United States and Europe and activity in certain industries in which our clients operate.
Additionally, more than 25% of our revenues were derived from clients in the financial services and insurance industries. The inflationary economic environment in recent years has adversely affected economic activity in the United States and Europe and activity in certain industries in which our clients operate.
We may be unable to service our debt or obtain additional financing on competitive terms. In December 2022, we entered into an amended and restated five-year credit agreement with certain financial institutions as lenders which replaced our prior credit facility. The amended and restated credit agreement provides for a $530 million term loan and a $650 million revolving credit facility.
We may be unable to service our debt or obtain additional financing on competitive terms or at all. In December 2022, we entered into an amended and restated five-year credit agreement with certain financial institutions as lenders which replaced our prior credit facility.
If we enter into a contract with a client, we will typically receive no revenues until implementation actually begins. Our clients may also experience delays in obtaining internal approvals or delays associated with technology or system implementations, thereby further lengthening the implementation cycle. We generally hire new employees to provide services to a new client once a contract is signed.
If we enter into a Digital Operations contract with a client, we will typically receive no revenues until implementation actually begins. Our clients may also experience delays in obtaining internal approvals or delays associated with technology or system implementations, thereby further lengthening the implementation cycle.
Negative outcomes from those examinations or any appeals therefrom may adversely affect our provision for income taxes and tax liability, and the amounts we are ultimately required to pay could be materially different from the amounts we anticipated, which in turn could have a material adverse effect on our business, results of operations, effective tax rate and financial condition.
Negative outcomes from those examinations or any appeals therefrom may adversely affect our provision for income taxes and tax liability, and the amounts we are ultimately required to pay could be materially different from the amounts we anticipated, which in turn could have a material adverse effect on our business, results of operations, effective tax rate and financial condition. 22 We are currently subject to several tax audits by the Indian tax authorities (“ITA”) related to intercompany transactions that occurred in 2009, 2013 and 2015.
In addition, we are a party to a number of license agreements with third parties and expect to enter into additional licenses in the future. Our existing licenses impose, and we expect that future licenses will impose, various obligations and restrictions on us.
Further, certain of our suppliers, partners and other contractors may decide to discontinue conducting business with us. In addition, we are a party to a number of license agreements with third parties and expect to enter into additional licenses in the future. Our existing licenses impose, and we expect that future licenses will impose, various obligations and restrictions on us.
Media or other reports of perceived breaches or weaknesses in our systems, products or networks, even if nothing has actually been attempted or occurred, could also adversely impact our brand and reputation and materially affect our business.
Media or other reports of perceived breaches or weaknesses in our systems, products or networks could also adversely impact our brand and reputation and materially affect our business.
The threat of incursion into our information systems and technology infrastructure has increased and evolved in recent years with the increasing number and sophistication of third parties who have hacked, attacked, held for ransom or otherwise disrupted or invaded information systems of other companies and misappropriated or disclosed data.
The threat of incursions into our information systems and technology infrastructure has increased in recent years as the sophistication of threat actors who have hacked, attacked, held for ransom or otherwise disrupted information systems of other companies and misappropriated or disclosed data has increased.
If we lose other key members of our senior leadership team, we may not be able to effectively manage our current operations or meet ongoing and future business challenges, and this may have a material adverse effect on our business, results of operations and financial condition.
If we lose key members of our senior leadership team, we may not be able to effectively manage our current operations or meet ongoing and future business challenges, and this may have a material adverse effect on our business, results of operations and financial condition. On February 9, 2024, Balkrishan Kalra became our Chief Executive Officer, replacing N.V.
However, if any person, including any of our current or former employees or contractors, negligently disregards or intentionally breaches our or our clients’ established controls with respect to client, third-party or Genpact protected data or if we do not adapt to changes in data protection legislation, we could be subject to significant litigation, monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions.
However, if any person, including any of our current or former employees or contractors, negligently disregards or intentionally breaches our or our clients’ established security policies, measures and controls with respect to client, third-party or Genpact protected data or if we do not adapt to changes in data protection legislation, we could be subject to significant litigation, monetary damages, regulatory enforcement actions, fines and/or criminal prosecution in one or more jurisdictions. 20 Our employees and contractors have in the past engaged, and may in the future engage, in fraudulent conduct or other conduct that violates our client contracts or our internal controls or policies, whether intentionally or inadvertently.
Broader global geopolitical tensions and actions that governments take in response may adversely impact us. For instance, in response to the ongoing conflict between Russia and Ukraine, the United States and other countries in which we operate have imposed and may further impose broad sanctions or other restrictive actions against governmental and other entities in Russia.
For instance, in response to the ongoing conflict between Russia and Ukraine, the United States and other countries in which we operate have imposed broad sanctions and may impose additional sanctions or other restrictive actions against governmental and other entities in Russia.
In addition, certain liabilities, such as claims of third parties for which we may be required to indemnify our clients or liability for breaches of confidentiality, are generally not limited under those agreements.
These limitations and caps on liability may be unenforceable or otherwise may not protect us from liability for damages. 27 In addition, certain liabilities, such as claims of third parties for which we may be required to indemnify our clients or liability for breaches of confidentiality, are generally not limited under those agreements.
In recent years, military confrontations between India and Pakistan have occurred in the region of Kashmir and along the India/Pakistan border. There have also been incidents in and near India, such as continued terrorist activity around the northern border of India, troop mobilizations along the India/Pakistan border and an aggravated geopolitical situation in the region.
There have also been incidents in and near India, such as continued terrorist activity around the northern border of India, troop mobilizations along the India/Pakistan border and an aggravated geopolitical situation in the region. In addition, there has been a series of conflicts between India and China along their shared border in recent years.
Our contracts for consulting and other short-cycle engagements typically permit our clients to terminate the agreement with less notice than is required under our longer-term contracts for our Digital Operations services and without paying termination fees. Our failure to properly manage these shorter-cycle engagements could adversely affect our business, growth strategy and results of operations.
Our contracts for consulting and other short-cycle engagements typically permit our clients to terminate the agreement with less notice than is required under our longer-term contracts for our Digital Operations services and without paying termination fees.
As wage levels for skilled employees increase in most of the countries in which we operate because of, among other reasons, the tightening of the labor market and related competition for skilled employees in certain areas, faster economic growth, and increased demand for business process services, wage increases continue to adversely affect our profitability and may continue to adversely affect our profitability in the future to the extent that we are not able to control or share wage increases with our clients.
As wage levels for skilled employees increase in most of the countries in which we operate because of, among other reasons, tight labor markets and inflation, wage increases continue to adversely affect our profitability and may continue to adversely affect our profitability in the future to the extent that we are not able to control or share wage increases with our clients.
We will also need to increase our hiring if we are not able to maintain our attrition rate through innovative recruiting and retention policies.
If our business continues to grow, the number of people we will need to hire will increase. 24 We will also need to increase our hiring if we are not able to maintain our attrition rate through innovative recruiting and retention policies.
Our clients, regulators, or other third parties may attempt to hold us liable, through contractual indemnification clauses or directly, for any such losses or damages resulting from such an attack.
Our clients, regulators, or other third parties may attempt to hold us liable, through contractual indemnification clauses or directly, for any such losses or damages resulting from such an attack. We may also be liable to our clients or others for damages caused by disclosure of confidential information or system failures.
We may face significant difficulties in hiring such employees and incur significant costs associated with these hires before we receive corresponding revenues. 32 If we are not successful in obtaining contractual commitments after the selling cycle, in maintaining contractual commitments after the implementation cycle or in maintaining or reducing the duration of unprofitable initial periods in our contracts, it may have a material adverse effect on our business, results of operations and financial condition.
If we are not successful in obtaining contractual commitments after the selling cycle, in maintaining contractual commitments after the implementation cycle or in maintaining or reducing the duration of unprofitable initial periods in our contracts, it may have a material adverse effect on our business, results of operations and financial condition.
Our future success substantially depends on the continued service and performance of the members of our senior leadership team. These personnel possess business and technical capabilities that are difficult to replace. Our employment agreements with our Chief Executive Officer and other members of our executive management team do not obligate them to work for us for any specified period.
These executives possess business and technical capabilities and institutional knowledge that are difficult to replace. Our employment agreements with our Chief Executive Officer and other members of our executive management team do not obligate them to work for us for any specified period.

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Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 2. Properties We have delivery centers in 24 countries. We have a mixture of owned and leased properties and substantially all of our leased properties are leased under long-term leases with varying expiration dates. We believe that our properties and facilities are suitable and adequate for our present purposes and are well-maintained.
Biggest changeItem 2. Properties We have delivery centers in 26 countries. We have a mixture of owned and leased properties and substantially all of our leased properties are leased under long-term leases with varying expiration dates. We believe that our properties and facilities are suitable and adequate for our present purposes and are well-maintained. 41

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+0 added−0 removed2 unchanged
Biggest changeThe performance shown in the graph and table below is historical and should not be considered indicative of future price performance. 40 3/31/18 6/30/18 9/30/18 12/31/18 3/31/19 Genpact 101.03 91.59 97.14 85.88 112.23 Peer Group 104.18 109.18 112.74 97.87 115.93 S&P 500 99.24 102.65 110.56 95.62 108.67 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 Genpact 121.79 124.16 135.40 93.99 117.86 Peer Group 117.74 118.86 124.20 96.86 122.10 S&P 500 113.34 115.27 125.72 101.08 121.85 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 Genpact 126.02 134.14 139.24 148.08 155.18 Peer Group 143.26 169.74 180.26 194.91 210.90 S&P 500 132.73 148.85 158.04 171.56 172.55 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 Genpact 173.73 142.85 139.46 144.49 153.34 Peer Group 258.49 225.71 177.89 163.27 169.96 S&P 500 191.58 182.77 153.34 145.86 156.88 This graph is not deemed to be “filed” with the SEC or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, and should not be deemed to be incorporated by reference into any of our prior or subsequent filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.
Biggest changeThe performance shown in the graph and table below is historical and should not be considered indicative of future price performance. 43 3/31/19 6/30/19 9/30/19 12/31/19 3/31/20 Genpact 130.68 141.81 144.57 157.66 109.44 Peer Group 118.45 120.30 121.44 126.90 98.96 S&P 500 113.65 118.54 120.55 131.49 105.72 6/30/20 9/30/20 12/31/20 3/31/21 6/30/21 Genpact 137.24 146.74 156.20 162.13 172.42 Peer Group 124.75 146.37 173.43 184.18 199.14 S&P 500 127.44 138.81 155.68 165.29 179.42 9/30/21 12/31/21 3/31/22 6/30/22 9/30/22 Genpact 180.69 202.30 166.34 162.39 168.25 Peer Group 215.49 264.11 230.61 181.76 166.82 S&P 500 180.47 200.37 191.15 160.37 152.54 12/31/22 03/31/23 06/30/23 09/30/23 12/31/23 Genpact 178.55 178.69 145.79 140.99 135.73 Peer Group 173.66 180.31 187.48 190.64 215.19 S&P 500 164.08 176.38 191.80 185.52 207.21 This graph is not deemed to be “filed” with the SEC or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, and should not be deemed to be incorporated by reference into any of our prior or subsequent filings under the Securities Act of 1933 or the Securities Exchange Act of 1934.
The returns of the component entities of our peer group index are weighted according to the market capitalization of each company as of the end of each period for which a return is presented. The returns assume that $100 was invested on December 31, 2017 and that all dividends were reinvested.
The returns of the component entities of our peer group index are weighted according to the market capitalization of each company as of the end of each period for which a return is presented. The returns assume that $100 was invested on December 31, 2018 and that all dividends were reinvested.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Stock Price Information and Stockholders The principal market on which the Company’s common shares are traded is the New York Stock Exchange under the symbol “G.” As of January 31, 2023, there were 34 holders of record of our common shares.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Stock Price Information and Stockholders The principal market on which the Company’s common shares are traded is the New York Stock Exchange under the symbol “G.” As of January 31, 2024, there were 35 holders of record of our common shares.
The following graph and table compare the performance of an investment in our common shares (measured as the cumulative total shareholder return) with investments in the S&P 500 Index (market capitalization weighted) and a peer group of companies for the period from January 1, 2018 to December 31, 2022.
The following graph and table compare the performance of an investment in our common shares (measured as the cumulative total shareholder return) with investments in the S&P 500 Index (market capitalization weighted) and a peer group of companies for the period from January 1, 2019 to December 31, 2023.
In February 2023, our board of directors approved a 10% increase in our quarterly cash dividend to $0.1375 per common share, representing a planned annual dividend of $0.55 per common share for 2023. Any future dividends will be at the discretion of the board of directors and subject to Bermuda and other applicable laws. Unregistered Sales of Equity Securities None.
In February 2024, our board of directors approved an 11% increase in our quarterly cash dividend to $0.1525 per common share, representing a planned annual dividend of $0.61 per common share for 2024. Any future dividends will be at the discretion of the board of directors and subject to Bermuda and other applicable laws. Unregistered Sales of Equity Securities None.
Dividends In February 2022, our board of directors approved a 16% increase in our quarterly cash dividend to $0.125 per common share, representing an annual dividend of $0.50 per common share. In 2022, dividends were declared in February, May, July and October and paid in March, June, September and December.
Dividends In February 2023, our board of directors approved a 10% increase in our quarterly cash dividend to $0.1375 per common share, representing an annual dividend of $0.55 per common share. In 2023, dividends were declared in February, May, July and October and paid in March, June, September and December.
Purchase of Equity Securities by the Issuer and Affiliated Purchasers Share repurchase activity during the three months ended December 31, 2022 was as follows: Period Total Number of Shares Purchased Weighted Average Price Paid per Share ($) 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 ($) October 1-October 31, 2022 — — — 156,899,039 November 1-November 30, 2022 135,640 44.22 135,640 150,901,355 December 1-December 31, 2022 574,521 45.22 574,521 124,923,971 Total 710,161 45.03 710,161 In February 2023, our board of directors authorized a $500 million increase to our existing $1.75 billion share repurchase program, first announced in February 2015, bringing the total authorization under our existing program to $2.25 billion.
Purchase of Equity Securities by the Issuer and Affiliated Purchasers Share repurchase activity during the three months ended December 31, 2023 was as follows: Period Total Number of Shares Purchased Weighted Average Price Paid per Share ($) 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 ($) October 1-October 31, 2023 — — — 474,453,005 November 1-November 30, 2023 710,947 33.70 710,947 450,491,112 December 1-December 31, 2023 1,474,762 34.55 1,474,762 399,544,868 Total 2,185,709 34.27 2,185,709 In February 2023, our board of directors authorized a $500 million increase to our existing $1.75 billion share repurchase program, first announced in February 2015, bringing the total authorization under our existing program to $2.25 billion.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

129 edited+23 added−53 removed95 unchanged
Biggest changeThis decrease was primarily due to a (i) $16.0 million decrease in net income in 2022 compared to 2021, (ii) a $234.2 million increase in net operating assets driven by higher investments in accounts receivable due to higher days sales outstanding, higher tax payments (net of refunds), higher employee related payments and higher customer acquisition costs in 2022 compared to 2021, partially offset by higher payroll tax payments in 2021 than in 2022 given the deferral of certain 2020 payroll tax payments as permitted by the Coronavirus Aid, Relief and Economic Security Act and (iii) a $0.3 million decrease in non-cash expenses in 2022 compared to 2021, primarily due to lower depreciation and amortization expense, lower stock-based compensation expense and higher deferred tax benefits in 2022 compared to 2021, largely offset by higher write-downs of operating lease right-of-use assets, intangible assets and property, plant and equipment, including those classified as held for sale, and unrealized losses on the revaluation of foreign currency assets and liabilities in 2022 compared to unrealized gains in 2021.
Biggest changeThis increase was primarily due to a (i) $277.9 million increase in net income in 2023 compared to 2022, (ii) a $195.5 million decrease in non-cash expenses in 2023 compared to 2022, primarily due to a deferred income tax asset recorded in connection with a n on-recurring deferred tax benefit of $169.9 million in 2023 on an intra-entity transfer of certain intellectual prop erty rights from certain non-US subsidiaries to certain wholly-owned US subsidiaries in an effort to better align with our business operations, lower write-downs of operating lease right-of-use assets, intangible assets and property, plant and equipment, including those previously classified as held for sale, lower depreciation and amortization expense, partially offset by an increase in stock-based compensation expense in 2023 compared to 2022, and (iii) a $35.2 million increase in net operating assets driven by higher investments in accounts receivable, higher tax payments (net of refunds) and higher payments for statutory liabilities, partially offset by higher Goods and Service Tax ("GST") refunds in India and lower vendor related payments.
The Senior Notes are effectively subordinated to all of the Issuer’s and the Guarantor’s existing and future secured debt to the extent of the value of the assets securing such debt.
The Senior Notes are effectively subordinated to all of the Debt Issuer’s and the Guarantor’s existing and future secured debt to the extent of the value of the assets securing such debt.
Regular renewals of contracts with no change in scope, which we consider business as usual, are not included as new bookings. 46 We provide information regarding our new bookings because we believe doing so provides useful trend information regarding changes in the volume of our new business and may be a useful metric as an indicator of future revenue growth potential.
Regular renewals of contracts with no change in scope, which we consider business as usual, are not included as new bookings. We provide information regarding our new bookings because we believe doing so provides useful trend information regarding changes in the volume of our new business and may be a useful metric as an indicator of future revenue growth potential.
We attempt to address the impact of wage increases, and pressures to increase wages, in a number of ways, which include seeking to control entry-level wages, managing attrition, delivering productivity and “right-skilling,” which refers to ensuring that positions are not filled by overqualified employees. 1 Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates adjusted for hedging gains/losses in such period. 43 We try to control increases in entry-level wages by implementing innovative recruitment policies, utilizing continuous training techniques, emphasizing promotion opportunities and maintaining an attractive work atmosphere and culture.
We attempt to address the impact of wage increases, and pressures to increase wages, in a number of ways, which include seeking to control entry-level wages, managing attrition, delivering productivity and “right-skilling,” which refers to ensuring that positions are not filled by overqualified employees. 1 Revenue growth on a constant currency basis is a non-GAAP measure and is calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates adjusted for hedging gains/losses in such period. 46 We try to control increases in entry-level wages by implementing innovative recruitment policies, utilizing continuous training techniques, emphasizing promotion opportunities and maintaining an attractive work atmosphere and culture.
These covenants require us to maintain a net debt to EBITDA leverage ratio of below 3x and an interest coverage ratio of more than 3x. During the year ended December 31, 2022, we were in compliance with the terms of the 2022 Credit Agreement, including all of the financial covenants therein.
These covenants require us to maintain a net debt to EBITDA leverage ratio of below 3x and an interest coverage ratio of more than 3x. During the year ended December 31, 2023, we were in compliance with the terms of the 2022 Credit Agreement, including all of the financial covenants therein.
Our delivery centers also enjoy corporate tax holidays or concessional tax rates in certain other jurisdictions, including Costa Rica, Israel, Malaysia and the Philippines. These tax concessions will expire over the next few years, possibly increasing our overall tax rate.
Our delivery centers also enjoy corporate tax holidays or concessional tax rates in certain other jurisdictions, including Costa Rica, Israel and the Philippines. These tax concessions will expire over the next few years, possibly increasing our overall tax rate.
For additional information, see Note 4—“Accounts receivable, net of allowance for credit losses” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 59 Goodwill Impairment Testing Goodwill of a reporting unit is tested for impairment at least annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.
For additional information, see Note 4—“Accounts receivable, net of allowance for credit losses” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 61 Goodwill Impairment Testing Goodwill of a reporting unit is tested for impairment at least annually and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.
Claims of holders of the Senior Notes are structurally subordinated to the liabilities of certain non-Guarantors pursuant to their liabilities under our senior credit facility. 62 Recent Accounting Pronouncements Recently adopted accounting pronouncements For a description of recently adopted accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates.” For a description of recently issued accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
Claims of holders of the Senior Notes are structurally subordinated to the liabilities of certain non-Guarantors pursuant to their liabilities under our senior credit facility. 64 Recent Accounting Pronouncements Recently adopted accounting pronouncements For a description of recently adopted accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” and Part II, Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates.” For a description of recently issued accounting pronouncements, see Note 2—“Summary of significant accounting policies—Recently issued accounting pronouncements” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.”
We have operating subsidiaries or branches in several countries, including Australia, Brazil, Canada, China, Costa Rica, the Czech Republic, Egypt, Germany, Guatemala, Hungary, India, Ireland, Israel, Japan, Malaysia, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Singapore, South Africa, Thailand, Turkey, the United Kingdom and the United States, as well as sales and marketing subsidiaries in certain jurisdictions, including the United States and the United Kingdom, which are subject to tax in such jurisdictions.
We have operating subsidiaries or branches in several countries, including Argentina, Australia, Brazil, Bulgaria, Canada, China, Costa Rica, the Czech Republic, Egypt, Germany, Guatemala, Hungary, India, Ireland, Israel, Japan, Malaysia, Mexico, the Netherlands, the Philippines, Poland, Portugal, Romania, Singapore, South Africa, Thailand, Turkey, the United Kingdom and the United States, as well as sales and marketing subsidiaries in certain jurisdictions, including the United States and the United Kingdom, which are subject to tax in such jurisdictions.
Based on our assessment of such qualitative factors, in accordance with ASC 350, we concluded that as of December 31, 2021 and 2022, the fair values of all of our reporting units are likely to be higher than their respective carrying values. Off-Balance Sheet Arrangements Our off-balance sheet arrangements consist of foreign exchange contracts.
Based on our assessment of such qualitative factors, in accordance with ASC 350, we concluded that as of December 31, 2022 and 2023, the fair values of all of our reporting units are likely to be higher than their respective carrying values. Off-Balance Sheet Arrangements Our off-balance sheet arrangements consist of foreign exchange contracts.
Such an assertion could affect the size and scope of the services requested by such clients in the future. 45 Our ability to repatriate surplus earnings from our foreign subsidiaries in a tax-efficient manner is dependent upon interpretations of local laws, possible changes in such laws and the renegotiation of existing double tax avoidance treaties.
Such an assertion could affect the size and scope of the services requested by such clients in the future. 48 Our ability to repatriate surplus earnings from our foreign subsidiaries in a tax-efficient manner is dependent upon interpretations of local laws, possible changes in such laws and the renegotiation of existing double tax avoidance treaties.
As a result, we determined that certain leases and employee roles were unnecessary. Accordingly, we took a restructuring charge of $ 38.8 million, which was excluded from AOI during the year ended December 31, 2022. No corresponding charge was recorded during the year ended December 31, 2021.
As a result, we determined that certain leases and employee roles were unnecessary. Accordingly, we took a restructuring charge of $38.8 million, which was excluded from AOI during the year ended December 31, 2022. No corresponding charge was recorded during the year ended December 31, 2023.
For additional information, see 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" and Note 6—“Derivative financial instruments” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Other Liquidity and Capital Resources Information As of December 31, 2021 and 2022, we have purchase commitme nts, net of capital advances paid in respect of such purchases, of $13.3 million and $18.0 million, respectively, to be paid in respect of such purchases over the next year .
For additional information, see 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" and Note 6—“Derivative financial instruments” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Other Liquidity and Capital Resources Information As of December 31, 2022 and 2023, we have purchase commitme nts, net of capital advances paid in respect of such purchases, of $18.0 million and $16.0 million, respectively, to be paid in respect of such purchases over the next year .
Based on the results of our assessments of qualitative factors, we determined that the fair values of all of our reporting units are likely to be higher than their respective carrying amounts as of December 31, 2021 and 2022.
Based on the results of our assessments of qualitative factors, we determined that the fair values of all of our reporting units are likely to be higher than their respective carrying amounts as of December 31, 2022 and 2023.
In February 2022, our board of directors approved a 16% increase in our quarterly cash dividend from $0.1075 per common share to $0.125 per common share, representing an annual dividend of $0.50 per common share for 2022, up from $0.43 per common share in 2021.
On February 10, 2022, our board of directors approved a 16% increase in our quarterly cash dividend from $0.1075 per common share to $0.125 per common share, representing an annual dividend of $0.50 per common share for 2022, up from $0.43 per common share in 2021.
The 2022 Credit Agreement replaces the 2018 Credit Agreement. The 2022 Credit Agreement is guaranteed by us and certain of our subsidiaries. The obligations under the 2022 Credit Agreement are unsecured. The outstanding balance of the term loan under the 2018 Credit Agreement as of the date of 2022 Credit Agreement was $527.0 million.
The 2022 Credit Agreement replaced the 2018 Credit Agreement. The 2022 Credit Agreement is guaranteed by us and certain of our subsidiaries. The obligations under the 2022 Credit Agreement are unsecured. The outstanding balance of the term loan under the 2018 Credit Agreement as of the date of 2022 Credit Agreement was $527.0 million.
One of our subsidiaries in China has obtained a ruling from the Government of China certifying it to be a Technologically Advanced Service Enterprise. As a result, that subsidiary is subject to a lower corporate income tax rate of 15% through December 31, 2023, subject to the fulfillment of certain conditions.
One of our subsidiaries in China obtained a ruling from the Government of China certifying it to be a Technologically Advanced Service Enterprise. As a result, that subsidiary was subject to a lower corporate income tax rate of 15% through December 31, 2023, subject to the fulfillment of certain conditions.
If the Issuer or the Guarantor have any right to receive any assets of any of the non-Guarantors upon the insolvency, liquidation, reorganization, dissolution or other winding-up of any non-Guarantor, all of that non-Guarantor’s creditors (including trade creditors) would be entitled to payment in full out of that non-Guarantor’s assets before the holders of the Senior Notes would be entitled to any payment.
If the Debt Issuers or the Guarantors have any right to receive any assets of any of the non-Guarantors upon the insolvency, liquidation, reorganization, dissolution or other winding-up of any non-Guarantor, all of that non-Guarantor’s creditors (including trade creditors) would be entitled to payment in full out of that non-Guarantor’s assets before the holders of the Senior Notes would be entitled to any payment.
We begin each year with a set of named accounts, including prospective clients with operations in our target areas, and all opportunities during the year are reviewed by business leaders from the applicable industry vertical, operations personnel, and members of our finance team. In this way, we try to ensure that contract terms meet our pricing, cash and service objectives.
We begin each year with a set of named accounts, including prospective clients with operations in our target areas, and all opportunities during the year are reviewed by business leaders from the applicable industry vertical, operations, and finance teams. In this way, we try to ensure that contract terms meet our pricing, cash and service objectives.
Net revenues from "Business held for sale" in the table above represents revenues from a business classified as held for sale with effect from April 1, 2022 as part of a series of actions we took to focus our business on emerging solutions where we see the greatest opportunities for growth and to deprioritize assets that no longer fit with our long-term strategy.
Net revenues from "Business held for sale" in the table above represent revenues from a business we had previously classified as held for sale with effect from April 1, 2022 as part of a series of actions we took in 2022 to focus our business on emerging solutions where we see the greatest opportunities for growth and to deprioritize assets that no longer fit with our long-term strategy.
For additional information, see Note 12—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 60 Supplemental Guarantor Financial I nformation As discussed in Note 14, “Long-term debt,” to our consolidated financial statements under Part IV, Item 15- "Exhibit and Financial Statement Schedules," Genpact Luxembourg issued the 2019 Senior Notes, and Genpact Luxembourg and Genpact USA co-issued the 2021 Senior Notes.
For additional information, see Note 12—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 62 Supplemental Guarantor Financial I nformation As discussed in Note 14, “Long-term debt,” to our consolidated financial statements under Part IV, Item 15- "Exhibits and Financial Statement Schedules," Genpact Luxembourg issued the 2019 Senior Notes, and Genpact Luxembourg and Genpact USA co-issued the 2021 Senior Notes.
As of December 31, 2021 and 2022, the amount outstanding under the 2021 Senior Notes, net of debt amortization expense of $2.6 million and $2.0 million, respectively, was $347.4 million and $348.0 million, respectively, which is payable on April 10, 2026.
As of December 31, 2022 and 2023, the amount outstanding under the 2021 Senior Notes, net of debt amortization expense of $2.0 million and $1.4 million, respectively, was $348.0 million and $348.6 million, respectively, which is payable on April 10, 2026.
Other operating (income) expense, net primarily consists of the impact of the change in the fair value of earn-out consideration and deferred consideration relating to business acquisitions, as well as certain operating losses resulting from the write-down of operating lease right-of-use assets, other assets, property, plant and equipment and intangible assets and impairment charge on assets classified as held for sale.
Other operating (income) expense, net primarily consists of the impact of the change in the fair value of earn-out consideration and deferred consideration relating to business acquisitions, as well as certain operating losses resulting from the write-down of operating lease right-of-use assets, other assets, property, plant and equipment and intangible assets, impairment charges and losses on the sale of assets classified as held for sale and gains on termination of leases.
We calculate AOI as net income, excluding (i) stock-based compensation, (ii) amortization and impairment of acquired intangible assets, (iii) acquisition-related expenses excluded in the period in which an acquisition is consummated, (iv) foreign exchange (gain)/loss, (v) restructuring expenses, (vi) any loss or gain on businesses held for sale, including impairment charges, (vii) interest (income) expense, and (viii) income tax expense, as we believe that our results after taking into account these adjustments more accurately reflect our ongoing operations.
We calculate AOI as net income, excluding (i) stock-based compensation, (ii) amortization and impairment of acquired intangible assets, (iii) acquisition-related expenses excluded in the period in which an acquisition is consummated, (iv) foreign exchange (gains)/losses (other than those included in income from operations) , (v) restructuring (income) expense, (vi) any loss or gain on businesses held for sale, including impairment charges, (vii) interest (income) expense, and (viii) income tax expense/(benefit), as we believe that our results after taking into account these adjustments more accurately reflect our ongoing operations.
For additional information, see Note 26—“Commitments and contingencies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” As of December 31, 2021 and 2022, we also have operating and finance lease commitments of $420.6 million and $330.1 million, respectively, to be paid over the remaining lease terms.
For additional information, see Note 26—“Commitments and contingencies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” As of December 31, 2022 and 2023, we also have operating and finance lease commitments of $330.1 million and $287.5 million, respectively, to be paid over the remaining lease terms.
In February 2023, our board of directors approved a 10% increase in our quarterly cash dividend from $0.125 per common share to $0.1375 per common share, representing a planned annual dividend of $0.55 per common share for 2023, up from $0.50 per common share in 2022.
On February 9, 2023, our board of directors approved a 10% increase in our quarterly cash dividend from $0.125 per common share to $0.1375 per common share, representing an annual dividend of $0.55 per common share for 2023, up from $0.50 per common share in 2022.
Total net revenues on a constant currency 2 basis are calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates and adjusted for hedging gains/losses. Our average headcount increased to approximately 115,800 in 2022 from approximately 103,100 in 2021.
Total net revenues on a constant currency 2 basis are calculated by restating current-period activity using the prior fiscal period’s foreign currency exchange rates and adjusted for hedging gains/losses. Our average headcount increased to approximately 123,400 in 2023 from approximately 115,800 in 2022.
For additional information, see Note 8—“Assets and liabilities held for sale” and Note 27—“Restructuring” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Income from operations . As a result of the foregoing factors, income from operations as a percentage of total net revenues decreased from 12.7% in 2021 to 11.5% in 2022.
For additional information, see Note 8—“Assets and liabilities held for sale” and Note 27—“Restructuring” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Income from operations . As a result of the foregoing factors, income from operations as a percentage of total net revenues increased from 11.5% in 2022 to 14.1% in 2023.
Our management also uses new bookings to measure our sales force productivity. New bookings in 2022 were $3.9 billion, up from $3.7 billion in 2021. New bookings can vary significantly year to year depending in part on the timing of signing of large contracts.
Our management also uses new bookings to measure our sales force productivity. New bookings in 2023 were $4.9 billion, up 25.6% from $3.9 billion in 2022. New bookings can vary significantly year to year depending in part on the timing of signing of large contracts.
See “Special Note Regarding Forward-Looking Statements” included elsewhere in this Annual Report on Form 10-K. Macroeconomic environment Our results of operations are affected by economic conditions, including macroeconomic conditions, the overall inflationary environment and levels of business confidence.
See “Special Note Regarding Forward-Looking Statements” included elsewhere in this Annual Report on Form 10-K. Macroeconomic environment Our results of operations are affected by various economic and macroeconomic conditions, including the inflationary environment, high interest rates, numerous geopolitical risks and levels of overall business confidence.
For additional information, see Note 23—“Income taxes” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Liquidity and Capital Resources Overview Information about our financial position as of December 31, 2021 and 2022 is presented below: As of December 31, As of December 31, Percentage Change increase/(decrease) 2021 2022 2022 vs. 2021 (dollars in millions) Cash and cash equivalents $ 899.5 $ 646.8 (28.1) % Short-term borrowings — 151.0 100.0 % Long-term debt due within one year 383.4 26.1 (93.2) % Long-term debt other than the current portion 1,272.5 1,249.2 (1.8) % Genpact Limited total shareholders’ equity $ 1,897.1 $ 1,826.2 (3.7) % Financial Condition We have historically financed our operations and our expansion, including acquisitions, with cash from operations and borrowing facilities.
For additional information, see Note 23—“Income taxes” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Liquidity and Capital Resources Overview Information about our financial position as of December 31, 2022 and 2023 is presented below: As of December 31, As of December 31, Percentage Change increase/(decrease) 2022 2023 2023 vs. 2022 (dollars in millions) Cash and cash equivalents $ 646.8 $ 583.7 (9.8) % Short-term borrowings 151.0 10.0 (93.4) % Long-term debt due within one year 26.1 432.2 1,553.8 % Long-term debt other than the current portion 1,249.2 824.7 (34.0) % Genpact Limited total shareholders’ equity $ 1,826.2 $ 2,248.4 23.1 % Financial Condition We have historically financed our operations and our expansion, including acquisitions, with cash from operations and borrowing facilities.
Of the total goodwill arising from this acquisition, $35.1 million is deductible for income tax purposes. The goodwill represents primarily the acquired capabilities and other benefits expected to result from combining the acquired operations with our existing operations. New Bookings New bookings is an operating or other statistical measure.
Goodwill arising from this acquisition is deductible for income tax purposes and represents primarily the acq uired capabilities and other benefits expected to result from combining the acquired operations with our existing operations. New Bookings New bookings is an operating or other statistical measure.
For additional information, see Note 8—“Assets and liabilities held for sale” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” 57 Cash flows from financing activities . Our net cash used for financing activities was $571.4 million in 2022, compared to $332.9 million in 2021.
For additional information, see Note 8—“Assets and liabilities held for sale” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Cash flows used for financing activities . Our net cash used for financing activities was $483.0 million in 2023, compared to $571.4 million in 2022.
The table below sets forth the percentage of our total net revenues derived from our largest clients, in the years ended December 31, 2021 and 2022: Percentage of Total Net Revenues Year ended December 31, 2021 2022 Top five clients 24.3 % 22.1 % Top ten clients 33.6 % 31.2 % Top fifteen clients 39.8 % 37.3 % Top twenty clients 44.3 % 42.2 % We earn revenues pursuant to contracts that generally take the form of a master service agreement ("MSA"), which is a framework agreement that is then supplemented by statements of work ("SOWs").
The table below sets forth the percentage of our total net revenues derived from our largest clients, in the years ended December 31, 2022 and 2023: Percentage of Total Net Revenues Year ended December 31, 2022 2023 Top five clients 22.1 % 17.5 % Top ten clients 31.2 % 26.3 % Top fifteen clients 37.3 % 32.7 % Top twenty clients 42.2 % 37.2 % We earn revenues pursuant to contracts that generally take the form of a master service agreement ("MSA"), which is a framework agreement that is then supplemented by statements of work ("SOWs").
As of December 31, 2021 and 2022, a total of $2.0 million and $153.7 million, respectively, of our revolving credit facility was utilized, of which $0.0 million and $151.0 million, respectively, constituted funded drawdown, and $2.0 million and $2.7 million, respectively, constituted non-funded drawdown.
As of December 31, 2022 and 2023, a total of $153.7 million and $11.6 million, respectively, of our revolving credit facility was utilized, of which $151.0 million and $10.0 million, respectively, constituted funded drawdown, and $2.7 million and $1.6 million, respectively, constituted non-funded drawdown.
In calculating our AOI margin for 2022, we adjusted total net revenues to exclude net revenues of $12.0 million from the business designated as held for sale.
In calculating our AOI margin for 2023 and 2022, we adjusted total net revenues to exclude net revenues of $0.5 million in 2023 and $12.0 million in 2022 from the business previously classified as held for sale.
As of December 31, 2021 and 2022, the amount outstanding under the 2019 Senior Notes, net of debt amortization expense of $1.7 million and $1.1 million, was $398.3 million and $398.9 million, respectively, which is payable on December 1, 2024.
As of December 31, 2022 and 2023, the amount outstanding under the 2019 Senior Notes, net of debt amortization expense of $1.1 million and $0.5 million, was $398.9 million and $399.5 million, respectively, which is payable on December 1, 2024.
For additional information about the risks we face, see Part I, Item 1A—“Risk Factors.” 42 Overview Our 2022 revenues were $4.4 billion, an increase of 8.7% year-over-year, or 11.1% on a constant currency 1 basis. Net Revenues Revenue by top clients .
For additional information about the risks we face, see Part I, Item 1A—“Risk Factors.” 45 Overview Our 2023 revenues were $4.5 billion, an increase of 2.4% year-over-year, or 3.1% on a constant currency 1 basis. Net Revenues Revenue by top clients .
The ongoing conflict between Russia and Ukraine and actions taken by the United States and other countries in response thereto, including the imposition of sanctions, have contributed to supply chain disruption and inflation, regional instability and geopolitical tensions.
The ongoing conflict between Russia and Ukraine and actions taken by the United States and other countries in response, including the imposition of sanctions, as well as the ongoing conflict between Hamas and Israel, have contributed to and may continue to exacerbate supply chain disruption and inflation, regional instability and geopolitical tensions.
Our costs are primarily incurred in Indian rupees, as well as in U.S. dollars, U.K. pounds sterling, Romanian leu, Chinese renminbi, euros and the currencies of the other countries in which we have operations.
We also received payments in euros, U.K. pounds sterling, Australian dollars, Japanese yen a nd Indian rupees. Our costs are primarily incurred in U.S. dollars, as well as in Indian rupees, U.K. pounds sterling, Romanian leu, Chinese renminbi, euros and the currencies of the other countries in which we have operations.
The total debt issuance cost of $2.9 million incurred in connection with the 2019 Senior Notes offering is being amortized over the life of the notes as additional interest expense.
The total debt issuance cost of $3.0 million incurred in connection with the 2021 Senior Notes offering is being amortized over the life of the notes as additional interest expense.
As of December 31, 2022, the outstanding balance for the 2019 Senior Notes and the 2021 Senior Notes (collectively, the "Senior Notes") was $398.9 million and $348.0 million, respectively. Each series of Senior Notes is fully and unconditionally guaranteed by the Company. The 2019 Senior Notes are also fully and unconditionally guaranteed by Genpact USA.
As of December 31, 2023, the outstanding balance for the 2019 Senior Notes and the 2021 Senior Notes (collectively, the "Senior Notes") was $399.5 million and $348.6 million, respectively. Each series of Senior Notes is fully and unconditionally guaranteed by the Company. The 2019 Senior Notes are also fully and unconditionally guaranteed by Genpact USA.
This change was primarily due to a $20.3 million write-down related to the abandonment of various office premises and a $1.4 million write-down related to tangible assets, both of which were taken as part of a restructuring we undertook in 2022, and an impairment charge of $32.6 million in 2022 related to assets classified as held for sale, while no corresponding charge was recorded in 2021.
This change was primarily due to (i) a gain of $4.9 million on the termination of an abandoned lease in 2023 with no corresponding gain recorded in 2022, (ii) a $20.3 million write-down related to the abandonment of various office premises and a $1.4 million write-down related to tangible assets, both of which were taken as part of a restructuring we undertook in 2022, and (iii) an impairment charge of $32.6 million in 2022 related to assets previously classified as held for sale, while no corresponding charge was recorded in 2023.
As of December 31, 2021 and 2022, the limit available under such facilities was $24.7 million and $22.9 million, respectively, of which $5.8 million and $5.4 million, respectively, was utilized, constituting non-funded drawdown.
As of December 31, 2022 and 2023, the limit available under such facilities was $22.9 million and $23.3 million, respectively, of which $5.4 million and $9.3 million, respectively, was utilized, constituting non-funded drawdown.
The increase in our cost of revenue in 2022 compared to 2021 was primarily due to (i) an increase in our operational headcount to support revenue growth, (ii) higher talent replacement costs as well as the impact of wage inflation, and (iii) higher travel related expenses.
The increase in our cost of revenue in 2023 compared to 2022 was primarily due to (i) an increase in our operational headcount to support revenue growth, (ii) wage inflation, and (iii) higher travel related expenses.
Critical Accounting Policies and Estimates A summary of our significant accounting policies is included in Note 2—“Summary of significant accounting policies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made and if changes in the estimate that are reasonably possible could materially impact the financial statements or require a higher degree of judgment than others in their application.
Our revenues recognized each year will vary from the new bookings value since new bookings is a snapshot measurement of a portion of the total client contract value at a given time. 49 Critical Accounting Policies and Estimates A summary of our significant accounting policies is included in Note 2—“Summary of significant accounting policies” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made and if changes in the estimate that are reasonably possible could materially impact the financial statements or require a higher degree of judgment than others in their application.
Statement of financial position Key changes in our financial position during 2022 Following are the significant changes in our financial position as of December 31, 2022 compared to December 31, 2021: • Short-term borrowings increased by $151.0 million The increase in our short-term debt is primarily due to an increase in the funded drawdown of the facility under our amended and restated credit agreement entered into in December 2022, which consists of a $530.0 million term loan and a $650.0 million revolving credit facility.
Statement of financial position Key changes in our financial position during 2023 Following are the significant changes in our financial position as of December 31, 2023 compared to December 31, 2022: • Short-term borrowings decreased by $141.0 million The decrease in our short-term debt is primarily due to payments made on our term loan in 2023 and lower utilization of the funded drawdown of the credit facility under our amended and restated credit agreement entered into in December 2022, which consists of a $530.0 million term loan and a $650.0 million revolving credit facility.
During the years ended December 31, 2021 and 2022, we repurchased 6,577,562 and 4,777,205 of our common shares, respectively, on the open market at a weighted average price of $45.32 and $44.79 per share, respectively, for an aggregate purchase price of $298.1 million and $214.0 million, respectively. All repurchased shares have been retired.
During the years ended December 31, 2022 and 2023, we repurchased 4,777,205 and 6,013,793 of our common shares, respectively, on the open market at a weighted average price of $44.79 and $37.48 per share, respectively, for an aggregate purchase price of $214.0 million and $225.4 million, respectively. All repurchased shares have been retired.
This increase was partially offset by (i) lower depreciation and amortization expense, (ii) lower facilities maintenance expenses, and (iii) lower medical expenses. We also recorded an employee severance charge as part of the restructuring we undertook in 2022, while no corresponding charge was recorded in 2021.
This increase was partially offset by (i) lower depreciation and amortization expense, (ii) lower contractor expenses, and (iii) an employee severance charge of $8.4 million as part of the restructuring we undertook in 2022, while no corresponding charge was recorded in 2023.
Since our share repurchase program was initially authorized in 2015, we have repurchased 52,164,282 of our common shares at a weighted average price of $31.15 per share, for an aggregate purchase price of $1,625.1 million. This amount includes shares repurchased under our 2017 accelerated share repurchase program.
Since our share repurchase program was initially authorized in 2015, we have repurchased 58,178,075 of our common shares at a weighted average price of $31.81 per share, for an aggregate purchase price of $1,850.5 million. This amount includes shares repurchased under our 2017 accelerated share repurchase program.
For additional information, see Note 8—“Assets and liabilities held for sale” and Note 24—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Cost of revenue . Cost of revenue was $2,834.8 million in 2022, up $244.5 million, or 9.4%, from $2,590.3 million in 2021.
For additional information, see Note 24—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Cost of revenue . Cost of revenue was $2,906.2 million in 2023, up $71.4 million, or 2.5%, from $2,834.8 million in 2022.
Additionally, demand for certain services, such as collections and transaction processing, is often greater in the second half of the year as our clients’ volumes in such areas increase.
Volumes under such contracts then increase in the latter part of the year as engagements ramp up. Additionally, demand for certain services, such as collections and transaction processing, is often greater in the second half of the year as our clients’ volumes in such areas increase.
Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. The measurement of purchase price, including future contingent consideration, if any, and its allocation, requires significant estimates in determining the fair values of assets acquired and liabilities assumed, including with respect to intangible assets and deferred and contingent consideration.
The measurement of purchase price, including future contingent consideration, if any, and its allocation, requires significant estimates in determining the fair values of assets acquired and liabilities assumed, including with respect to intangible assets and deferred and contingent consideration.
Adjusted for foreign exchange, primarily the impact of changes in the values of the euro, Japanese yen, Australian dollar and U.K. pound sterling against the U.S. dollar, our net revenues grew 11.1% in 2022 compared to 2021 on a constant currency 2 basis. Revenue growth on a constant currency 2 basis is a non-GAAP measure.
Adjusted for foreign exchange, primarily the impact of changes in the values of Japanese yen, Australian dollar, Indian Rupee and South African rand against the U.S. dollar, our net revenues grew 3.1% in 2023 compared to 2022 on a constant currency 2 basis. Revenue growth on a constant currency 2 basis is a non-GAAP measure.
Any future dividends will be at the discretion of our board of directors and subject to Bermuda and other applicable laws. 56 As of December 31, 2022, the total authorization under our existing share repurchase program was $1,750.0 million, of which $124.9 million remained available as of December 31, 2022.
Any future dividends will be at the discretion of our board of directors and subject to Bermuda and other applicable laws. 58 As of December 31, 2023, the total authorization under our existing share repurchase program was $2,250.0 million, of which $399.5 million remained available as of December 31, 2023.
Our net revenues were $4,371.2 million in 2022, up $349.0 million, or 8.7%, from $4,022.2 million in 2021. Growth in our net revenues was driven by both Data-Tech-AI and Digital Operations services.
Our net revenues were $4,476.9 million in 2023, up $105.7 million, or 2.4%, from $4,371.2 million in 2022. Growth in our net revenues was driven by both Data-Tech-AI and Digital Operations services.
The impairment charge was recorded in “other operating (income) expense, net." See Note 8—“Assets and liabilities held for sale” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information.
The impairment charge was recorded in “other operating (income) expense, net.” During 2023, the sale of these assets was completed and we recorded a loss on the sale in "other operating (income) expense, net." See Note 8—“Assets and liabilities held for sale” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information.
Year ended December 31, Percentage change increase/ (decrease) 2022 vs. 2021 2021 2022 (dollars in millions) Data-Tech-AI $ 1,692.3 $ 1,959.9 15.8 % Digital Operations $ 2,329.9 $ 2,411.3 3.5 % Total net revenues $ 4,022.2 $ 4,371.2 8.7 % Net revenues from Data-Tech-AI services in 2022 were $1,959.9 million, up $267.6 million, or 15.8%, from $1,692.3 million in 2021.
Year ended December 31, Percentage change increase/ (decrease) 2023 vs. 2022 2022 2023 (dollars in millions) Data-Tech-AI services $ 1,959.9 $ 1,993.1 1.7 % Digital Operations services $ 2,411.3 $ 2,483.8 3.0 % Total net revenues $ 4,371.2 $ 4,476.9 2.4 % Net revenues from Data-Tech-AI services in 2023 were $1,993.1 million, up $33.2 million, or 1.7%, from $1,959.9 million in 2022.
Summarized Statements of Income Year ended December 31, 2021 Year ended December 31, 2022 (dollars in millions) Net revenues $ 214.2 $ 141.3 Gross profit 214.2 141.3 Net income 102.7 72.3 Below is a summary of transactions with non-Guarantors included in the summarized statement of income above: Year ended December 31, 2021 Year ended December 31, 2022 (dollars in millions) Royalty income $ 4.4 $ — Revenue from services 209.8 141.3 Interest income /(expense), net 33.0 36.9 Other income /(expense), net (17.7) 25.2 61 Summarized Balance Sheets As of December 31, 2021 As of December 31, 2022 (dollars in millions) Assets Current assets $ 2,257.8 $ 2,181.4 Non-current assets 457.5 178.3 Liabilities Current liabilities $ 3,758.5 $ 3,639.6 Non-current liabilities 1,777.6 1,749.2 Below is a summary of the balances with non-Guarantors included in the summarized balance sheets above: As of December 31, 2021 As of December 31, 2022 (dollars in millions) Assets Current assets Accounts receivable, net $ 211.3 $ 62.1 Loans receivable 1,535.5 1,420.3 Others 410.1 453.1 Investment in debentures/bonds — 193.3 Non-current assets Investment in debentures/bonds $ 296.1 $ — Others 31.5 79.5 Liabilities Current liabilities Loans payable $ 2,431.2 $ 2,805.8 Others 914.0 620.2 Non-Current liabilities Loans payable $ 500.0 $ 500.0 The Senior Notes and the related guarantees rank pari passu in right of payment with all senior and unsecured debt of the Issuer and the Guarantor and rank senior in right of payment to all of the Issuer’s and the Guarantor’s future subordinated debt.
Summarized Statements of Income Year ended December 31, 2022 Year ended December 31, 2023 (dollars in millions) Net revenues $ 141.3 $ 298.1 Gross profit 141.3 298.1 Net income 72.3 382.4 Below is a summary of transactions with non-Guarantors included in the summarized statement of income above: Year ended December 31, 2022 Year ended December 31, 2023 (dollars in millions) Royalty income $ — $ 0.7 Revenue from services 141.3 297.4 Interest income /(expense), net 36.9 52.1 Other income /(expense), net 25.2 (4.5) 63 Summarized Balance Sheets As of December 31, 2022 As of December 31, 2023 (dollars in millions) Assets Current assets $ 2,181.4 $ 2,193.4 Non-current assets 178.3 1,045.4 Liabilities Current liabilities $ 3,639.6 $ 5,121.3 Non-current liabilities 1,749.2 904.7 Below is a summary of the balances with non-Guarantors included in the summarized balance sheets above: As of December 31, 2022 As of December 31, 2023 (dollars in millions) Assets Current assets Accounts receivable, net $ 62.1 $ 114.4 Loans receivable 1,420.3 1,433.1 Others 453.1 594.8 Investment in debentures/bonds 193.3 — Non-current assets Others $ 79.5 $ 69.5 Liabilities Current liabilities Loans payable $ 2,805.8 $ 3,559.7 Others 620.2 1,117.8 Non-Current liabilities Loans payable $ 500.0 $ 75.0 The Senior Notes and the related guarantees rank pari passu in right of payment with all senior and unsecured debt of the Debt Issuers and the Guarantors and rank senior in right of payment to all of the Debt Issuer’s and the Guarantor’s future subordinated debt.
For additional information, see Note 8—“Assets and liabilities held for sale” and Note 24—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” The following table shows the reconciliation of AOI to the most directly comparable GAAP measure for the years ended December 31, 2021 and 2022: Year ended December 31, 2021 2022 (dollars in millions) Net income $ 369.4 $ 353.4 Foreign exchange (gains) losses, net (12.7) (15.4) Interest (income) expense, net 51.4 52.2 Income tax expense 113.7 111.8 Stock-based compensation 82.0 77.4 Amortization and impairment of acquired intangible assets 57.6 42.6 Acquisition-related expenses 1.2 — Restructuring expenses — 38.8 Loss relating to business held for sale — 24.8 Impairment charge on assets classified as held for sale — 32.6 Adjusted income from operations $ 662.7 $ 718.2 The following table sets forth our AOI by reportable business segment for the years ended December 31, 2021 and 2022: Year ended December 31, Percentage change increase/ (decrease) 2022 vs. 2021 2021 2022 (dollars in millions) Financial Services $ 126.9 $ 157.9 24.4 % Consumer and Healthcare 250.8 213.7 (14.8) % High Tech and Manufacturing 272.8 283.6 4.0 % Total reportable segment 650.5 655.3 0.7 % Others 12.2 38.1 NM* Total 662.7 693.4 4.6 % Loss relating to business held for sale — 24.8 NM* Adjusted income from operations $ 662.7 $ 718.2 8.4 % *Not Meaningful AOI of our Financial Services segment increased to $157.9 million in 2022 from $126.9 mil lion in 2021, primarily due to higher revenues and improved efficiency as well as an increase in the share of our services performed offshore in 2022 compared to 2021, partially offset by higher talent replacement costs as well as wage inflation.
The related loss and impairment charge were excluded from AOI. 55 For additional information, see Note 8—“Assets and liabilities held for sale” and Note 24—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” The following table shows the reconciliation of AOI to the most directly comparable GAAP measure for the years ended December 31, 2022 and 2023: Year ended December 31, 2022 2023 (dollars in millions) Net income $ 353.4 $ 631.3 Foreign exchange (gains) losses, net $ (15.4) $ (4.3) Interest (income) expense, net $ 52.2 $ 47.9 Income Tax Expense/ (Benefit) $ 111.8 $ (29.0) Stock-based compensation $ 77.4 $ 88.6 Amortization and impairment of acquired intangible assets $ 42.6 $ 31.3 Loss on the sale of business classified as held for sale $ — $ 0.8 Restructuring expense (income) $ 38.8 $ (4.9) Loss relating to business held for sale $ 24.8 $ 1.2 Impairment charge on assets classified as held for sale $ 32.6 $ — Adjusted income from operations $ 718.2 $ 762.9 The following table sets forth our AOI by reportable business segment for the years ended December 31, 2022 and 2023: Year ended December 31, Percentage change increase/ (decrease) 2023 vs. 2022 2022 2023 (dollars in millions) Financial Services $ 172.3 $ 193.4 12.2 % Consumer and Healthcare $ 233.0 $ 242.5 4.0 % High Tech and Manufacturing $ 303.6 $ 297.9 (1.9) % Total reportable segment $ 708.9 $ 733.7 3.5 % Others $ (15.5) $ 28.0 281.0 % Total $ 693.4 $ 761.7 9.9 % Loss relating to business held for sale $ 24.8 $ 1.2 NM* Adjusted income from operations $ 718.2 $ 762.9 6.2 % *Not Meaningful AOI of our Financial Services segment increased to $193.4 million in 2023 from $172.3 million in 2022, primarily due to higher revenues, improved efficiency and the net favorable impact of allocating foreign exchange gains/(losses) and resource costs in 2023 compared to 2022, partially offset by the impact of wage inflation.
The following table sets forth certain data from our income statement for the years ended December 31, 2021 and 2022: Year ended December 31, Percentage change increase/ (decrease) 2022 vs. 2021 2021 2022 Data-Tech-AI $ 1,692.3 $ 1,959.9 15.8 % Digital Operations $ 2,329.9 $ 2,411.3 3.5 % Total net revenues $ 4,022.2 $ 4,371.2 8.7 % Cost of revenue 2,590.3 2,834.8 9.4 % Gross profit $ 1,432.0 $ 1,536.4 7.3 % Gross profit margin 35.6 % 35.1 % Operating expenses Selling, general and administrative expenses 865.7 938.4 8.4 % Amortization of acquired intangible assets 58.4 42.7 (27.0) % Other operating (income) expense, net (1.2) 53.2 NM* Income from operations $ 509.0 $ 502.2 (1.3) % Income from operations as a percentage of net revenues 12.7 % 11.5 % Foreign exchange gains (losses), net 12.7 15.4 21.5 % Interest income (expense), net (51.4) (52.2) 1.5 % Other income (expense), net 12.9 (0.1) (100.8) % Income before income tax expense $ 483.1 $ 465.2 (3.7) % Income tax expense 113.7 111.8 (1.6) % Net income $ 369.4 $ 353.4 (4.3) % Net income as a percentage of net revenues 9.2 % 8.1 % *Not Meaningful 50 Fiscal Year Ended December 31, 2022 Compared to the Fiscal Year Ended December 31, 2021 Net revenues .
The following table sets forth certain data from our income statement for the years ended December 31, 2022 and 2023: Year ended December 31, Percentage change increase/ (decrease) 2023 vs. 2022 2022 2023 Data-Tech-AI services $ 1,959.9 $ 1,993.1 1.7 % Digital Operations services $ 2,411.3 $ 2,483.8 3.0 % Total net revenues $ 4,371.2 $ 4,476.9 2.4 % Cost of revenue 2,834.8 2,906.2 2.5 % Gross profit $ 1,536.4 $ 1,570.7 2.2 % Gross profit margin 35.1 % 35.1 % Operating expenses Selling, general and administrative expenses 938.4 913.1 (2.7) % Amortization of acquired intangible assets 42.7 31.5 (26.3) % Other operating (income) expense, net 53.2 (4.7) (108.9) % Income from operations $ 502.2 $ 630.9 25.6 % Income from operations as a percentage of net revenues 11.5 % 14.1 % Foreign exchange gains (losses), net 15.4 4.3 (72.2) % Interest income (expense), net (52.2) (47.9) (8.2) % Other income (expense), net (0.1) 15.0 NM* Income before income tax expense $ 465.2 $ 602.2 29.4 % Income tax expense (benefit) 111.8 (29.0) (126.0) % Net income $ 353.4 $ 631.3 78.6 % Net income as a percentage of net revenues 8.1 % 14.1 % *Not Meaningful 52 Fiscal Year Ended December 31, 2023 Compared to the Fiscal Year Ended December 31, 2022 Net revenues .
See Note 2—“Summary of significant accounting policies” to our Consolidated Financial Statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules’’ and Item 7A—“Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk.” 44 77% of our fiscal 2022 revenues were earned in U.S. dollars. We also received payments in euros, U.K. pounds sterling, Australian dollars, Japanese yen and Indian rupees.
See Note 2—“Summary of significant accounting policies” to our Consolidated Financial Statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules’’ and Item 7A—“Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk.” 47 77% of our fiscal 2023 revenues were earned in U.S. dollars.
While we do not have any operations in Russia or Ukraine, it is difficult to anticipate the future impacts of any of the foregoing on our business or our clients’ businesses.
While we do not have operations in Russia or Ukraine, it is difficult to anticipate the future impacts of the Russia-Ukraine conflict on our business or our clients’ businesses. We have limited operations in Israel and are closely monitoring the situation.
For additional information, see Note 27—“Restructuring” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Amortization of acquired intangibles . Amortization of acquired intangibles was $42.7 million in 2022, down $15.8 million, or 27.0%, from $58.4 million in 2021.
For additional information, see Note 8—“Assets and liabilities held for sale” and Note 27—“Restructuring” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Amortization of acquired intangibles . Amortization of acquired intangibles was $31.5 million in 2023, down $11.2 million, or 26.3%, from $42.7 million in 2022.
For additional information, see Note 25—“Net revenues—Contract balances” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information. • Net accounts receivable increased by $107.0 million The increase in our accounts receivable is primarily due to higher days sales outstanding, offset by the volume impact of a lower quarter-over-quarter revenue growth rate in the fourth quarter of 2022 compared to the fourth quarter of 2021. • Goodwill and intangible assets decreased by $126.8 million Goodwill decreased by $46.8 million, primarily due to the effect of exchange rate fluctuations.
For additional information, see Note 25—“Net revenues—Contract balances” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules” for additional information. • Accounts receivable, net increased by $122.0 million The increase in our accounts receivable is primarily due to higher days sales outstanding. • Goodwill and intangible assets decreased by $37.1 million Goodwill decreased by $0.4 million, primarily due to the effect of exchange rate fluctuations.
Cash flows from operating, investing and financing activities, as reflected in our consolidated statements of cash flows, are summarized in the following table: Year ended December 31, Percentage change increase/ (decrease) 2022 vs. 2021 2021 2022 (dollars in millions) Net cash provided by (used for) Operating activities $ 694.3 $ 443.7 (36.1) % Investing activities (122.7) (36.6) (70.2) % Financing activities (332.9) (571.4) 71.7 % Net increase in cash and cash equivalents $ 238.7 $ (164.3) (168.9) % Cash flows from operating activities .
Cash flows from operating, investing and financing activities, as reflected in our consolidated statements of cash flows, are summarized in the following table: Year ended December 31, Percentage change increase/ (decrease) 2023 vs. 2022 2022 2023 (dollars in millions) Net cash provided by (used for) Operating activities $ 443.7 $ 490.8 10.6 % Investing activities (36.6) (78.9) 115.7 % Financing activities (571.4) (483.0) (15.5) % Net decrease in cash and cash equivalents $ (164.3) $ (71.1) (56.7) % Cash flows from o perating activities .
Cash flows from investing activities . Our net cash used for investing activities was $36.6 million in 2022, compared to $122.7 million in 2021.
Cash flows used for investing activities . Our net cash used for investing activities was $78.9 million in 2023, compared to $36.6 million in 2022.
As of December 31, 2022, $637.7 million of our $646.8 million in cash and cash equivalents was held by our foreign (non-Bermuda) subsidiaries. $3.8 million of this cash is held by foreign subsidiaries for which we expect to incur and have accrued a deferred tax liability on the repatriation of $9.5 million of retained earnings. $633.9 million of the cash and cash equivalents is either held as retained earnings by foreign subsidiaries in jurisdictions where no tax is expected to be imposed upon repatriation or is being indefinitely reinvested.
As of December 31, 2023, $581.4 million of our $583.7 million in cash and cash equivalents was held by our foreign (non-Bermuda) subsidiaries. $208.0 million of this cash is held by foreign subsidiaries for which we expect to incur and have accrued a deferred tax liability on the repatriation of $92.3 million of retained earnings. $277.7 million of the cash and cash equivalents is held by foreign subsidiaries in jurisdictions where no tax is expected to be imposed upon repatriation.
Throughout 2022 there was significant economic and geopolitical uncertainty in many markets around the world, including with respect to wage inflation, the possibility of slowing global economic growth and increased volatility in foreign currency exchange rates, which impacted and may continue to impact our business.
Throughout 2023, continued economic and geopolitical uncertainty in many markets around the world, including with respect to slowing global economic growth, monetary policy and continued volatility in foreign currency exchange rates , impacted and may continue to impact our business.
Goodwill is tested for impairment at least on an annual basis on December 31, or as circumstances warrant based on a number of factors, including operating results, business plans and future cash flows.
Goodwill represents the cost of acquired businesses in excess of the fair value of the identifiable tangible and intangible net assets purchased. Goodwill is tested for impairment at least on an annual basis on December 31, or as circumstances warrant based on a number of factors, including operating results, business plans and future cash flows.
For additional information, see Note 12—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” • Operating lease liability decreased by $64.8 million The decrease in operating lease liability is due to lease payments, partially offset by additions and modifications in 2022. • Accounts payable, accrued expenses, other current liabilities and other liabilities decreased by $19.2 million The decrease in accounts payable, accrued expenses, other current liabilities and other liabilities is primarily due to a decrease in expense related accruals, employee related accruals and contract liabilities.
For additional information, see Note 12—“Leases” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” • Operating lease liability decreased by $26.1 million The decrease in operating lease liability is due to lease payments, partially offset by additions and modifications in 2023. • Accounts payable, accrued expenses, other current liabilities and other liabilities decreased by $20.6 million The decrease in accounts payable, accrued expenses, other current liabilities and other liabilities is primarily due to a reduction in accounts payable, contract liabilities, finance lease liabilities, statutory liabilities and lower mark-to-market losses on derivative financial instruments in 2023 compared to 2022.
The application of business combination accounting requires the use of significant estimates and assumptions. We account for business combinations using the acquisition method of accounting, 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.
We account for business combinations using the acquisition method of accounting, 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.
As of December 31, 2021 and 2022, we have a revolving accounts receivable-based facility of $100.0 million permitting us to sell accounts receivable to banks on a non-recourse basis in the ordinary course of business. The aggregate maximum capacity utilized at any time during the period ended December 31, 2021 and 2022 was $7.1 million and $33.0 million, respectively.
As of December 31, 2022 and 2023, we have a revolving accounts receivable-based facility of $100.0 million and $75.0 million, respectively, permitting us to sell accounts receivable to banks on a non-recourse basis in the ordinary course of business.
The decrease in interest expense was largely due to the repayment of our $350 million aggregate principal amount of 3.70% senior notes issued in March 2017.
This increase was partially offset by lower interest expense in 2023 compared to 2022 due to the repayment in April 2022 of our $350 million aggregate principal amount of 3.70% senior notes issued in March 2017.
AOI for “Others” in the table ab ove primarily represents the impact of foreign exchange fluctuations, adjustment of allowances for credit losses and over- or under-absorption of overheads, none of which is allocated to any individual segment for management's internal reporting purposes.
AOI for “Others” in the table above primarily represents the adjustment of allowances for credit losses and over- or under-absorption of overheads, none of which is allocated to any individual segment for management's internal reporting purposes. 56 AOI for "Business held for sale" in the table above primarily represents the loss attributable to a business previously classified as held for sale.
Results of Operations For a discussion of our results of operations for the year ended December 31, 2020, including a year-to-year comparison between 2021 and 2020, refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2021.
Due to rounding, the numbers presented in the tables included in this Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” may not add up precisely to the totals provided. 51 Results of Operations For a discussion of our results of operations for the year ended December 31, 2021, including a year-to-year comparison between 2022 and 2021, refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2022.
For additional information, see Note 8—“Assets and liabilities held for sale” and Note 10—“Goodwill and intangible assets” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” • Operating lease right-of-use assets decreased by $72.2 million The decrease in operating lease right-of-use assets is due to an amortization and impairment charge on right-of-use assets as part of a restructuring we undertook in 2022, partially offset by additions and modifications in 2022.
For additional information, see Note 10—“Goodwill and intangible assets” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” • Operating lease right-of-use assets decreased by $12.2 million The decrease in operating lease right-of-use assets is due to amortization, partially offset by assets recognized due to leases entered into in 2023.
On each of March 19, 2021, June 23, 2021, September 24, 2021 and December 22, 2021, we paid dividends of $0.1075 per share, amounting to $20.1 million, $20.1 million, $20.2 million, and $20.0 million in the aggregate, to shareholders of record as of March 10, 2021, June 11, 2021, September 10, 2021, and December 10, 2021, respectively.
On March 24, 2023, June 26, 2023, September 26, 2023 and December 22, 2023, we paid dividends of $0.1375 per share, amounting to $25.3 million, $25.0 million, $24.9 million and $24.8 million in the aggregate, to shareholders of record as of March 10, 2023, June 9, 2023, September 8, 2023 and December 8, 2023, respectively.
Net cash provided by operating activities was $443.7 million in 2022, down from $694.3 million in 2021.
Net cash provided by operating activities was $490.8 million in 2023, up from $443.7 million in 2022.
AOI for "Business held for sale" in the table above primarily represents the loss attributable to a business classified as held for sale. See Note 54 8—"Assets and liabilities held for sale" and Note 24—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Seasonality Our financial results may vary from period to period.
See Note 8—"Assets and liabilities held for sale" and Note 24—“Segment reporting” to our consolidated financial statements under Part IV, Item 15—“Exhibits and Financial Statement Schedules.” Seasonality Our financial results may vary from period to period. Our revenues are typically higher in the third and fourth quarters than in other quarters, as a result of several factors.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeBorrowings under our 2022 Credit Agreement bear interest at floating rates based on Term SOFR, but in no event less than the floor rate of 0.0% plus an applicable margin.
Biggest changeInterest on indebtedness under the 2022 Credit Agreement is based on Term SOFR, and we are subject to market risk from changes in interest rates. Borrowings under our 2022 Credit Agreement bear interest at floating rates based on Term SOFR, but in no event less than the floor rate of 0.0% plus an applicable margin.
Our expenses are primarily in Indian rupees and we also incur expenses in U.S. dollars, U.K. pounds sterling, Romanian lei, Chinese renminbi, euros and the currencies of the other countries in which we have operations. Our exchange rate risk arises from our foreign currency revenues, expenses, receivables and payables.
Our expenses are primarily in U.S. dollars and we also incur expenses in Indian rupees, U.K. pounds sterling, Romanian lei, Chinese renminbi, euros and the currencies of the other countries in which we have operations. Our exchange rate risk arises from our foreign currency revenues, expenses, receivables and payables.
Our ability to enter into derivatives that meet our planning objectives is subject to the depth and liquidity of the market for such derivatives. In addition, the laws of China, India, the Philippines and Romania limit the duration and amount of such arrangements.
Our ability to enter into derivatives that meet our planning objectives is subject to the depth and liquidity of the market for such derivatives. In addition, the laws of China, India, Malaysia, the Philippines and Romania limit the duration and amount of such arrangements.
We have sought to reduce the effect of any Indian rupee-U.S. dollar, Indian rupee-Australian dollar, Philippine Peso-U.S. dollar, Chinese renminbi-Japanese yen, Chinese renminbi-U.S dollar, euro-Romanian leu, Mexican peso-U.S. dollar, Polish zloty-U.S. dollar, Hungarian forint-U.S. dollar and certain other local currency exchange rate fluctuations on our results of operations by purchasing forward foreign exchange contracts to cover a portion of our expected cash flows and accounts receivable.
We have sought to reduce the effect of any Indian rupee-U.S. dollar, Indian rupee-Australian dollar, Philippine Peso-U.S. dollar, Chinese renminbi-Japanese yen, Chinese renminbi-U.S dollar, euro-Romanian leu, Mexican peso-U.S. dollar, Polish zloty-U.S. dollar, Hungarian forint-U.S. dollar, Malaysian ringgit-U.S. dollar and certain other local currency exchange rate fluctuations on our results of operations by purchasing forward foreign exchange contracts to cover a portion of our expected cash flows and accounts receivable.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Foreign currency risk Our exposure to market risk arises principally from exchange rate risk. A substantial portion of our revenues (77% in fiscal 2022) is received in U.S. dollars. We also receive revenues in Japanese yen, euros, U.K. pounds sterling, Australian dollars and Indian rupees.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Foreign currency risk Our exposure to market risk arises principally from exchange rate risk. A substantial portion of our revenues (77% in fiscal 2023) is received in U.S. dollars. We also receive revenues in euros, U.K. pounds sterling, Australian dollars, Japanese yen and Indian rupees.
We may not be able to purchase contracts adequate to insulate us from Indian rupee-U.S. dollar, Chinese renminbi-Japanese yen, Chinese renminbi-U.S dollar, Philippine peso-U.S. dollar, and Romanian leu-euro foreign exchange currency risks. In addition, any such contracts may not perform adequately as hedging mechanisms.
We may not be able to purchase contracts adequate to insulate us from Indian rupee-U.S. dollar, Chinese renminbi-Japanese yen, Chinese renminbi-U.S dollar, Philippine peso-U.S. dollar, Malaysian ringgit-U.S. dollar and Romanian leu-euro foreign exchange currency risks. In addition, any such contracts may not perform adequately as hedging mechanisms.
Based on the results of our European operations for fiscal 2022, and excluding any hedging arrangements that we had in place during that period, a 10.0% appreciation or depreciation of the euro against the U.S. dollar would have increased or decreased, as applicable, our revenues in fiscal 2022 by $13.0 million.
Based on the results of our European operations for fiscal 2023, and excluding any hedging arrangements that we had in place during that period, a 10.0% appreciation or depreciation of the euro against the U.S. dollar would have increased or decreased, as applicable, our revenues in fiscal 2023 by $14.0 million.
The treasury rate lock agreement was terminated on March 23, 2021, and a deferred gain was recorded in accumulated other comprehensive income and is being amortized to interest expense over the life of the 2021 Senior Notes. The remaining gain to be amortized related to the treasury rate lock agreement as of December 31, 2022 was $0.5 million.
The treasury rate lock agreement was terminated on March 23, 2021, and a deferred gain was recorded in accumulated other comprehensive income and is being amortized to interest expense over the life of the 2021 Senior Notes. The remaining gain to be amortized related to the treasury rate lock agreement as of December 31, 2023 was $0.4 million.
Similarly, excluding any hedging arrangements that we had in place during that period, a 10.0% depreciation of the Indian rupee against the U.S. dollar would have decreased our expenses incurred and paid in Indian rupees in fiscal 2022 by $103.0 million.
Similarly, excluding any hedging arrangements that we had in place during that period, a 10.0% depreciation of the Indian rupee against the U.S. dollar would have decreased our expenses incurred and paid in Indian rupees in fiscal 2023 by $109.0 million.
See Item 1A—"Risk Factors"—"We may be unable to service our debt or obtain additional financing on competitive terms.” Based on our indebtedness, a 2% change in interest rates, including the impact on the cost of our interest rate swaps, would have had a $5.4 million impact on our net interest expense in fiscal 2022.
See Item 1A—"Risk Factors"—"We may be unable to service our debt or obtain additional financing on competitive terms or at all.” Based on our indebtedness, a 2% change in interest rates, including the impact on the cost of our interest rate swaps, would have had a $6.5 million impact on our net interest expense in fiscal 2023.
Credit risk As of December 31, 2022, we had accounts receivable, including deferred billings, net of allowance for credit losses, of $1,056.3 million. No single client owed more than 10% of our accounts receivable balance as of December 31, 2022.
Credit risk As of December 31, 2023, we had accounts receivable, including deferred billings, net of allowance for credit losses, of $1,202.3 million. No single client owed more than 10% of our accounts receivable balance as of December 31, 2023.
Conversely, a 10.0% appreciation of the Indian rupee against the U.S. dollar would have increased our expenses incurred and paid in rupees in fiscal 2022 by $126.0 million.
Conversely, a 10.0% appreciation of the Indian rupee against the U.S. dollar would have increased our expenses incurred and paid in rupees in fiscal 2023 by $133.0 million.
As of December 31, 2022, we had $1,275.3 million of indebtedness, comprised of (a) $528.4 million of indebtedness under our 2022 Credit Agreement consisting of a long-term loan of $530.0 million, net of $1.6 million in unamortized debt issuance expenses, (b) $398.9 million in indebtedness under our 2019 Senior Notes, net of $1.1 million in unamortized bond issuance expenses, and (c) $348.0 million in indebtedness under our 2021 Senior Notes, net of $2.0 million in unamortized bond issuance expenses.
As of December 31, 2023, we had $1,257.0 million of indebtedness, comprised of (a) $508.9 million of indebtedness under our 2022 Credit Agreement consisting of a long-term loan of $508.9 million, net of $1.3 million in unamortized debt issuance expenses, (b) $399.5 million in indebtedness under our 2019 Senior Notes, net of $0.5 million in unamortized bond issuance expenses, and (c) $348.6 million in indebtedness under our 2021 Senior Notes, net of $1.4 million in unamortized bond issuance expenses.
For fiscal 2022, such an increase would have had an impact of up to $16.8 million on our net interest expense. 63 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 or Term SOFR, as applicable, and the floor rate under our term loan and make payments based on a fixed rate.
For fiscal 2023, such an increase would have had an impact of up to $15.0 million on our net interest expense. 65 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 Term SOFR and the floor rate under our term loan and make payments based on a fixed rate.
As of December 31, 2022, we were party to interest rate swaps covering a total notional amount of $432.2 million. Under our swap agreements outstanding as of December 31, 2022, the rate that we pay to banks in exchange for Term SOFR ranges between 0.15% and 2.58%.
As of December 31, 2023, we were party to interest rate swaps covering a total notional amount of $148.1 million. Under our swap agreements outstanding as of December 31, 2023, the rate that we pay to banks in exchange for Term SOFR ranges between 4.25% and 4.72%.
Removed
Interest on indebtedness under the 2018 Credit Agreement was based on LIBOR, and interest on indebtedness under the 2022 Credit Agreement is based on Term SOFR, and we are subject to market risk from changes in interest rates.

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