Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CTSH | |
Entity Registrant Name | COGNIZANT TECHNOLOGY SOLUTIONS CORP | |
Entity Central Index Key | 1,058,290 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 580,233,834 |
Consolidated Statements Of Fina
Consolidated Statements Of Financial Position (Unaudited) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 901 | $ 1,925 |
Short-term investments | 3,346 | 3,131 |
Trade accounts receivable, net of allowances of $68 and $65, respectively | 3,204 | 2,865 |
Unbilled accounts receivable | 0 | 357 |
Other current assets | 852 | 833 |
Total current assets | 8,303 | 9,111 |
Property and equipment, net | 1,345 | 1,324 |
Goodwill | 3,036 | 2,704 |
Intangible assets, net | 1,060 | 981 |
Deferred income tax assets, net | 367 | 418 |
Long-term investments | 80 | 235 |
Other noncurrent assets | 615 | 448 |
Total assets | 14,806 | 15,221 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 217 | 210 |
Deferred revenue | 308 | 383 |
Short-term debt | 100 | 175 |
Accrued expenses and other current liabilities | 1,912 | 2,071 |
Total current liabilities | 2,537 | 2,839 |
Deferred revenue, noncurrent | 77 | 104 |
Deferred income tax liabilities, net | 145 | 146 |
Long-term debt | 649 | 698 |
Long-term income taxes payable | 508 | 584 |
Other noncurrent liabilities | 242 | 181 |
Total liabilities | 4,158 | 4,552 |
Commitments and contingencies (See Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.10 par value, 15.0 shares authorized, none issued | 0 | 0 |
Class A common stock, $0.01 par value, 1,000 shares authorized, 580 and 588 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 6 | 6 |
Additional paid-in capital | 55 | 49 |
Retained earnings | 10,681 | 10,544 |
Accumulated other comprehensive income (loss) | (94) | 70 |
Total stockholders’ equity | 10,648 | 10,669 |
Total liabilities and stockholders’ equity | $ 14,806 | $ 15,221 |
Consolidated Statements Of Fin3
Consolidated Statements Of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 68 | $ 65 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, issued | 0 | 0 |
Class A common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class A common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Class A common stock, shares issued | 580,000,000 | 588,000,000 |
Class A common stock, shares outstanding | 580,000,000 | 588,000,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 4,006 | $ 3,670 | $ 7,918 | $ 7,216 |
Operating expenses: | ||||
Cost of revenues (exclusive of depreciation and amortization expense shown separately below) | 2,417 | 2,261 | 4,818 | 4,455 |
Selling, general and administrative expenses | 805 | 709 | 1,516 | 1,395 |
Depreciation and amortization expense | 114 | 94 | 221 | 190 |
Income from operations | 670 | 606 | 1,363 | 1,176 |
Other income (expense), net: | ||||
Interest income | 40 | 31 | 81 | 63 |
Interest expense | (7) | (6) | (13) | (12) |
Foreign currency exchange gains (losses), net | (80) | 5 | (111) | 57 |
Other, net | 0 | (1) | 0 | 0 |
Total other income (expense), net | (47) | 29 | (43) | 108 |
Income before provision for income taxes | 623 | 635 | 1,320 | 1,284 |
Provision for income taxes | (168) | (165) | (345) | (257) |
Income from equity method investments | 1 | 0 | 1 | 0 |
Net income | $ 456 | $ 470 | $ 976 | $ 1,027 |
Basic earnings per share (usd per share) | $ 0.78 | $ 0.80 | $ 1.67 | $ 1.72 |
Diluted earnings per share (usd per share) | $ 0.78 | $ 0.80 | $ 1.66 | $ 1.71 |
Weighted average number of common shares outstanding - Basic (shares) | 585 | 589 | 586 | 597 |
Dilutive effect of shares issuable under stock-based compensation plans (shares) | 1 | 2 | 1 | 2 |
Weighted average number of common shares outstanding - Diluted (shares) | 586 | 591 | 587 | 599 |
Dividends declared per common share | $ 0.20 | $ 0.15 | $ 0.40 | $ 0.15 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 456 | $ 470 | $ 976 | $ 1,027 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (71) | 50 | (34) | 67 |
Change in unrealized gains and losses on cash flow hedges, net of taxes | (87) | (1) | (123) | 78 |
Change in unrealized gains and losses on available-for-sale securities, net of taxes | 1 | 1 | (6) | 2 |
Other comprehensive income (loss) | (157) | 50 | (163) | 147 |
Comprehensive income | $ 299 | $ 520 | $ 813 | $ 1,174 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated other comprehensive income (loss): |
AOCI, beginning balance at Dec. 31, 2016 | $ 10,728 | $ 6 | $ 358 | $ 10,478 | $ (114) |
Beginning balance, shares at Dec. 31, 2016 | 608 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,027 | 1,027 | |||
Other comprehensive income (loss) | 147 | 147 | |||
Common stock issued, stock-based compensation plans - value | 105 | 105 | |||
Common stock issued, stock-based compensation plans - shares | 4 | ||||
Stock-based compensation expense | 109 | 109 | |||
Repurchases of common stock, Value | (1,544) | (444) | (1,100) | ||
Repurchases of common stock, Shares | (22) | ||||
Dividends | (89) | (89) | |||
AOCI, ending balance at Jun. 30, 2017 | 10,483 | $ 6 | 128 | 10,316 | 33 |
Ending balance, shares at Jun. 30, 2017 | 590 | ||||
AOCI, beginning balance at Dec. 31, 2016 | 10,728 | $ 6 | 358 | 10,478 | (114) |
Beginning balance, shares at Dec. 31, 2016 | 608 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends | (268) | ||||
AOCI, ending balance at Dec. 31, 2017 | $ 10,669 | $ 6 | 49 | 10,544 | 70 |
Ending balance, shares at Dec. 31, 2017 | 588 | 588 | |||
AOCI, beginning balance at Mar. 31, 2017 | (17) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 470 | ||||
Dividends | (89) | ||||
AOCI, ending balance at Jun. 30, 2017 | 10,483 | $ 6 | 128 | 10,316 | 33 |
Ending balance, shares at Jun. 30, 2017 | 590 | ||||
AOCI, beginning balance at Dec. 31, 2017 | $ 10,669 | $ 6 | 49 | 10,544 | 70 |
Beginning balance, shares at Dec. 31, 2017 | 588 | 588 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends | $ (119) | ||||
AOCI, ending balance at Mar. 31, 2018 | 63 | ||||
AOCI, beginning balance at Dec. 31, 2017 | $ 10,669 | $ 6 | 49 | 10,544 | 70 |
Beginning balance, shares at Dec. 31, 2017 | 588 | 588 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 976 | 976 | |||
Other comprehensive income (loss) | (163) | (163) | |||
Common stock issued, stock-based compensation plans - value | 102 | 102 | |||
Common stock issued, stock-based compensation plans - shares | 4 | ||||
Stock-based compensation expense | 130 | 130 | |||
Repurchases of common stock, Value | (949) | (226) | (723) | ||
Repurchases of common stock, Shares | (12) | ||||
Dividends | (238) | (238) | |||
AOCI, ending balance at Jun. 30, 2018 | $ 10,648 | $ 6 | 55 | 10,681 | (94) |
Ending balance, shares at Jun. 30, 2018 | 580 | 580 | |||
AOCI, beginning balance at Mar. 31, 2018 | 63 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 456 | ||||
Dividends | (119) | ||||
AOCI, ending balance at Jun. 30, 2018 | $ 10,648 | $ 6 | $ 55 | 10,681 | (94) |
Ending balance, shares at Jun. 30, 2018 | 580 | 580 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of changes in accounting principle | $ 121 | $ 122 | $ (1) |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 976 | $ 1,027 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 240 | 207 |
Provision for doubtful accounts | 4 | 17 |
Deferred income taxes | 51 | 8 |
Stock-based compensation expense | 130 | 109 |
Other | 100 | (63) |
Changes in assets and liabilities: | ||
Trade accounts receivable | (330) | (103) |
Other current assets | 296 | (81) |
Other noncurrent assets | (159) | (46) |
Accounts payable | (3) | 2 |
Deferred revenues, current and noncurrent | (47) | 10 |
Other current and noncurrent liabilities | (230) | (289) |
Net cash provided by operating activities | 1,028 | 798 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (187) | (126) |
Purchases of available-for-sale investment securities | (806) | (1,622) |
Proceeds from maturity or sale of available-for-sale investment securities | 906 | 1,936 |
Purchases of held-to-maturity investment securities | (519) | (662) |
Proceeds from maturity of held-to-maturity investment securities | 386 | 50 |
Purchases of other investments | (318) | (213) |
Proceeds from maturity or sale of other investments | 205 | 345 |
Payments for business combinations, net of cash acquired | (478) | (6) |
Net cash (used in) investing activities | (811) | (298) |
Cash flows from financing activities: | ||
Issuance of common stock under stock-based compensation plans | 102 | 104 |
Repurchases of common stock | (949) | (1,544) |
Repayment of term loan borrowings and capital lease obligations | (64) | (42) |
Net change in notes outstanding under the revolving credit facility | (75) | 150 |
Dividends paid | (236) | (89) |
Net cash (used in) financing activities | (1,222) | (1,421) |
Effect of exchange rate changes on cash and cash equivalents | (19) | 44 |
(Decrease) in cash and cash equivalents | (1,024) | (877) |
Cash and cash equivalents, beginning of year | 1,925 | 2,034 |
Cash and cash equivalents, end of period | $ 901 | $ 1,157 |
Interim Consolidated Financial
Interim Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Consolidated Financial Statements | The terms “Cognizant,” “we,” “our,” “us” and “the Company” refer to Cognizant Technology Solutions Corporation and its subsidiaries unless the context indicates otherwise. We have prepared the accompanying unaudited consolidated financial statements included herein in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP, and Regulation S-X under the Securities Exchange Act of 1934, as amended, or the Exchange Act. The accompanying unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) included in our Annual Report on Form 10-K for the year ended December 31, 2017 . In our opinion, all adjustments considered necessary for a fair statement of the accompanying unaudited consolidated financial statements have been included and all adjustments are of a normal and recurring nature. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire year. Recently Adopted Accounting Pronouncements Date Issued and Topic Date Adopted and Method Description Impact May 2014 January 1, 2018 Modified Retrospective The new standard, as amended, sets forth a single comprehensive model for recognizing and reporting revenues. The standard also requires additional financial statement disclosures that enable users to understand the nature, amount, timing and uncertainty of revenues and cash flows relating to customer contracts. The standard allows for two methods of adoption: the full retrospective adoption, which requires the standard to be applied to each prior period presented, or the modified retrospective adoption, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption. See Note 3 for the impact of adoption of this standard. November 2016 Statement of Cash Flows January 1, 2018 Retrospective This update requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending amounts on the statement of cash flows. It also requires a reconciliation of such totals to the amounts on the statement of financial position and disclosure as to the nature of the restrictions. There were no restricted cash balances as of June 30, 2018. The adoption of this update had no impact on our financial statements for the three and six months ended June 30, 2018. February 2018 January 1, 2018 In the period of adoption This update provides an option for entities to reclassify stranded tax effects caused by the newly-enacted Tax Cuts and Jobs Act, or Tax Reform Act, from accumulated other comprehensive income to retained earnings. We have early adopted this update as of January 1, 2018. The adoption resulted in a decrease of $1 million in accumulated other comprehensive income and a corresponding increase of $1 million to opening retained earnings. New Accounting Pronouncements Date Issued and Topic Effective Date Description Impact February 2016 January 1, 2019 The new standard replaces the existing guidance on leases and requires the lessee to recognize a right-of-use asset and a lease liability for all leases with lease terms equal to or greater than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize total lease expense on a straight-line basis. The standard offers several practical expedients for transition and certain expedients specific to lessees or lessors. The standard allows for two methods of adoption: retrospective to each prior reporting period presented with the cumulative effect of adoption recognized at the beginning of the earliest period presented or retrospective to the beginning of the period of adoption through a cumulative-effect adjustment. While we are continuing to evaluate the provisions of this standard, the primary effect will be to require recording of right-of-use assets and corresponding lease obligations for current operating leases. We expect the adoption of this standard to have a material impact on our consolidated statement of financial position, but not on the consolidated statements of operations or cash flows. As of December 31, 2017, our undiscounted operating lease commitments were $943 million. We are currently planning to elect the package of practical expedients which permits us to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. We are also evaluating other available practical expedients. We intend to adopt the standard retrospectively to the beginning of the period of adoption through a cumulative-effect adjustment. March 2017 January 1, 2019 This update shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. The amendments do not require an accounting change for securities held at a discount. Upon adoption, entities will be required to use a modified retrospective transition with the cumulative effect adjustment recognized to retained earnings as of the beginning of the period of adoption. We are currently evaluating the effect the amendments will have on our consolidated financial statements and related disclosures. |
Internal Investigation and Rela
Internal Investigation and Related Matters | 6 Months Ended |
Jun. 30, 2018 | |
Internal Investigation and Related Matters [Abstract] | |
Internal Investigation and Related Matters | We are conducting an internal investigation focused on whether certain payments relating to Company-owned facilities in India were made improperly and in possible violation of the U.S. Foreign Corrupt Practices Act, or FCPA, and other applicable laws. The investigation is also examining various other payments made in small amounts in India that may not have complied with Company policy or applicable law. In September 2016, we voluntarily notified the U.S. Department of Justice, or DOJ, and Securities and Exchange Commission, or SEC, and are cooperating fully with both agencies. The investigation is being conducted under the oversight of the Audit Committee, with the assistance of outside counsel. To date, the investigation has identified a total of approximately $6 million in payments made between 2009 and 2016 that may have been improper. During the year ended December 31, 2016, we recorded out-of-period corrections related to $4 million of such payments that had been previously capitalized that should have been expensed. These out-of-period corrections and the other $2 million in potentially improper payments were not material to any previously issued financial statements. There were no adjustments recorded during 2018 and 2017 related to the amounts under investigation. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On January 1, 2018, we adopted ASC Topic 606, “Revenue from Contracts with Customers,” or the New Revenue Standard, using the modified retrospective method applied to contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under the New Revenue Standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting policies. For contracts that were modified before the effective date, the Company aggregated the effect of all contract modifications prior to identifying performance obligations and allocating transaction price in accordance with the practical expedient ASC 606-10-65-1-(f)-4. Upon adoption of the New Revenue Standard on January 1, 2018, we recorded a net increase to opening retained earnings of approximately $121 million , after a tax impact of $37 million . The impact of adoption primarily relates to (1) changes in the method used to measure progress on our fixed-price application maintenance, consulting and business process services contracts, (2) the longer period of amortization for costs to fulfill a contract, (3) the timing of revenue recognition and allocation of purchase price on our software license contracts, (4) the reclassification of balances representing receivables, as defined by the New Revenue Standard, from Unbilled accounts receivable to Trade accounts receivable, net, (5) the reclassification of balances representing contract assets, as defined by the New Revenue Standard, from Unbilled accounts receivable to Other current assets, as well as (6) the income tax impact of the above items, as applicable. The following tables compare the financial statement line items materially affected by the adoption of the New Revenue Standard as of and for the three and six months ended June 30, 2018 to the pro-forma amounts had the previous guidance been in effect, or Pro-forma Amounts: June 30, 2018 As Reported Pro-forma Amounts Impacts of the New Revenue Standard (in millions) Assets: Trade accounts receivable, net (1), (2) $ 3,204 $ 3,082 $ 122 Unbilled accounts receivable (1), (3) — 416 (416 ) Other current assets (2), (3) 852 534 318 Total current assets 24 Other noncurrent assets (4) 615 565 50 Total assets $ 74 Liabilities: Deferred revenue (2) $ 308 $ 451 $ (143 ) Total current liabilities (143 ) Deferred revenue, noncurrent (2) 77 86 (9 ) Deferred income tax liabilities, net (5) 145 95 50 Total liabilities (102 ) Stockholders’ equity: Retained earnings 10,681 10,505 176 Total stockholders’ equity 176 Total liabilities and stockholders’ equity $ 74 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Pro-forma Amounts Impacts of the New Revenue Standard As Reported Pro-forma Amounts Impacts of the New Revenue Standard (in millions) (in millions) Revenues (2) $ 4,006 $ 3,975 $ 31 $ 7,918 $ 7,866 $ 52 Cost of revenues (4) 2,417 2,424 (7 ) 4,818 4,833 (15 ) Selling, general and administrative expenses 805 805 — 1,516 1,516 — Depreciation and amortization expense 114 114 — 221 221 — Income from operations 670 632 38 1,363 1,296 67 Other income (expense), net (47 ) (47 ) — (43 ) (43 ) — Income before provision for income taxes (5) 623 585 38 1,320 1,253 67 Provision for income taxes (168 ) (161 ) (7 ) (345 ) (332 ) (13 ) Income (loss) from equity method investment 1 1 — 1 1 — Net income $ 456 $ 425 $ 31 $ 976 $ 922 $ 54 Basic earnings per share $ 0.78 $ 0.73 $ 0.05 $ 1.67 $ 1.57 $ 0.10 Diluted earnings per share $ 0.78 $ 0.73 $ 0.05 $ 1.66 $ 1.57 $ 0.09 (1) Reflects the reclassification of balances representing receivables, as defined by the New Revenue Standard, from Unbilled accounts receivable to Trade accounts receivable, net. (2) Reflects the impact of changes in the method used to measure progress on our fixed-price application maintenance, consulting and business process services contracts and the timing of revenue recognition and allocation of purchase price on our software license contracts. (3) Reflects the reclassification of balances representing contract assets, as defined by the New Revenue Standard, from Unbilled accounts receivable to Other current assets. (4) Reflects the impact of a longer period of amortization for costs to fulfill a contract. (5) Reflects the income tax impact of the above items. Revenue Recognition We recognize revenues as we transfer control of deliverables (products, solutions and services) to our customers in an amount reflecting the consideration to which we expect to be entitled. To recognize revenues, we apply the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenues when a performance obligation is satisfied. We account for a contract when it has approval and commitment from all parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience. We may enter into arrangements that consist of multiple performance obligations. Such arrangements may include any combination of our deliverables. To the extent a contract includes multiple promised deliverables, we apply judgment to determine whether promised deliverables are capable of being distinct and are distinct in the context of the contract. If these criteria are not met, the promised deliverables are accounted for as a combined performance obligation. For arrangements with multiple distinct performance obligations, we allocate consideration among the performance obligations based on their relative standalone selling price. Standalone selling price is the price at which we would sell a promised good or service separately to the customer. When not directly observable, we typically estimate standalone selling price by using the expected cost plus a margin approach. We typically establish a standalone selling price range for our deliverables, which is reassessed on a periodic basis or when facts and circumstances change. For performance obligations where control is transferred over time, revenues are recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the deliverables to be provided. Revenues related to fixed-price contracts for application development and systems integration services, consulting or other technology services are recognized as the service is performed using the cost to cost method, under which the total value of revenues is recognized on the basis of the percentage that each contract’s total labor cost to date bears to the total expected labor costs. Revenues related to fixed-price application maintenance, testing and business process services are recognized based on our right to invoice for services performed for contracts in which the invoicing is representative of the value being delivered, in accordance with the practical expedient in ASC 606-10-55-18. If our invoicing is not consistent with value delivered, revenues are recognized as the service is performed based on the cost to cost method described above. The cost to cost method requires estimation of future costs, which is updated as the project progresses to reflect the latest available information; such estimates and changes in estimates involve the use of judgment. The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known and any anticipated losses on contracts are recognized immediately. Revenues related to fixed-price hosting and infrastructure services are recognized based on our right to invoice for services performed for contracts in which the invoicing is representative of the value being delivered, in accordance with the practical expedient in ASC 606-10-55-18. If our invoicing is not consistent with value delivered, revenues are recognized on a straight-line basis unless revenues are earned and obligations are fulfilled in a different pattern. The revenue recognition method applied to the types of contracts described above provides the most faithful depiction of performance towards satisfaction of our performance obligations; for example, the cost to cost method is used when the value of services provided to the customer is best represented by the costs expended to deliver those services. Revenues related to our non-hosted software license arrangements that do not require significant modification or customization of the underlying software are recognized when the software is delivered as control is transferred at a point in time. For software license arrangements that require significant functionality enhancements or modification of the software, revenues for the software license and related services are recognized as the services are performed in accordance with the methods described above. In software hosting arrangements, the rights provided to the customer, such as ownership of a license, contract termination provisions and the feasibility of the client to operate the software, are considered in determining whether the arrangement includes a license or a service. Sales and usage-based fees promised in exchange for licenses of intellectual property are not recognized as revenue until the uncertainty related to the variable amounts is resolved. Revenues related to software maintenance and support are generally recognized on a straight-line basis over the contract period. Revenues related to our time-and-materials, transaction-based or volume-based contracts are recognized over the period the services are provided in a manner that corresponds with the value transferred to the customer to-date relative to the remaining services to be provided. Revenues also include the reimbursement of out-of-pocket expenses. Our warranties generally provide a customer with assurance that the related deliverable will function as the parties intended because it complies with agreed-upon specifications and is therefore not considered an additional performance obligation in the contract. From time to time, we may enter into arrangements with third party suppliers to resell products or services. In such cases, we evaluate whether we are the principal (i.e. report revenues on a gross basis) or agent (i.e. report revenues on a net basis). In doing so, we first evaluate whether we control the good or service before it is transferred to the customer. If we control the good or service before it is transferred to the customer, we are the principal; if not, we are the agent. Determining whether we control the good or service before it is transferred to the customer may require judgment. Our contracts may be modified to add, remove or change existing performance obligations. The accounting for modifications to our contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is at the standalone selling price. Services added that are not distinct are accounted for on a cumulative catch up basis, while those that are distinct are accounted for prospectively, either as a separate contract if the additional services are priced at the standalone selling price, or as a termination of the existing contract and creation of a new contract if not priced at the standalone selling price. Services added to our application development and systems integration service contracts are typically not distinct, while services added to our other contracts, including application maintenance, testing and business process services contracts, are typically distinct. Incentive revenues, volume discounts, or any other form of variable consideration is estimated using either the sum of probability weighted amounts in a range of possible consideration amounts (expected value), or the single most likely amount in a range of possible consideration amounts (most likely amount), depending on which method better predicts the amount of consideration to which we may be entitled. We include in the transaction price variable consideration only to the extent it is probable that a significant reversal of revenues recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price may involve judgment and are based largely on an assessment of our anticipated performance and all information that is reasonably available to us. We assess the timing of the transfer of goods or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or us, no financing component is deemed to exist. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our services, not to receive or provide financing from or to customers. We do not consider set up or transition fees paid upfront by our customers to represent a financing component, as such fees are required to encourage customer commitment to the project and protect us from early termination of the contract. Costs to Fulfill Recurring operating costs for contracts with customers are recognized as incurred. Certain eligible, nonrecurring costs incurred in the initial phases of our application maintenance, business process outsourcing and infrastructure services contracts (i.e. set-up or transition costs) are capitalized when such costs (1) relate directly to the contract, (2) generate or enhance resources of the Company that will be used in satisfying the performance obligation in the future, and (3) are expected to be recovered. These costs are expensed ratably over the estimated life of the customer relationship, including expected renewals. In determining the estimated life of the customer relationship, we evaluate the average contract term, on a portfolio basis by nature of the services to be provided, and apply judgment to evaluate the rate of technological and industry change. Capitalized amounts are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows are not sufficient to recover the carrying amount of the capitalized costs to fulfill. The following table presents information related to the capitalized costs to fulfill, such as set-up or transition activities, for the six months ended June 30, 2018 . Costs to obtain contracts were immaterial for the periods disclosed. Costs to Fulfill (in millions) Balance - January 1, 2018 $ 303 Amortization expense (32 ) Costs capitalized 85 Other (3 ) Balance - June 30, 2018 $ 353 Costs to fulfill are recorded in "Other noncurrent assets" in our consolidated statements of financial position. Trade Accounts Receivable and Contract Balances We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, we recognize a receivable for revenues related to our time and materials and transaction or volume-based contracts when earned regardless of whether amounts have been billed. We present such receivables in Trade accounts receivable, net in our consolidated statements of financial position at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other applicable factors. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets are presented in Other current assets in our consolidated statements of financial position and primarily relate to unbilled amounts on fixed-price contracts utilizing the cost to cost method of revenue recognition. The table below shows significant movements in contract assets: Contract Assets (in millions) Balance - January 1, 2018 $ 306 Revenues recognized during the period but not billed 259 Amounts reclassified to accounts receivable (247 ) Balance - June 30, 2018 $ 318 Our contract liabilities, or deferred revenue, consist of advance payments and billings in excess of revenues recognized. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize the revenues. The noncurrent portion of deferred revenue is included in other noncurrent liabilities in our consolidated statements of financial position. The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the period disclosed: Deferred Revenue (in millions) Balance - January 1, 2018 $ 431 Amounts billed but not recognized as revenues 119 Revenues recognized related to the opening balance of deferred revenue (163 ) Other (2 ) Balance - June 30, 2018 $ 385 Our contract assets and liabilities are reported in a net position on a contract by contract basis at the end of each reporting period. The difference between the opening and closing balances of our contract assets and deferred revenues primarily results from the timing difference between our performance obligations and the customer’s payment. We receive payments from customers based on the terms established in our contracts, which vary by contract type. Revenues recognized during the six months ended June 30, 2018 for performance obligations satisfied or partially satisfied in previous periods were immaterial. Remaining Performance Obligations ASC 606 requires that we disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2018. This disclosure is not required for: (1) contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty, (2) contracts for which we recognize revenues based on the right to invoice for services performed, (3) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or (4) variable consideration in the form of a sales-based or usage based royalty promised in exchange for a license of intellectual property. Many of our performance obligations meet one or more of these exemptions. As of June 30, 2018, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $1,595 million , of which approximately 64% is expected to be recognized as revenues within 2 years. Disaggregation of Revenues The table below presents disaggregated revenues from contracts with customers by customer location, service line and contract-type for each of our business segments. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors. Three Months Ended June 30, 2018 Financial Services Healthcare Products and Resources Communications, Media and Technology Total (in millions) Revenues Geography: North America $ 1,056 $ 1,060 $ 585 $ 366 $ 3,067 United Kingdom 114 22 89 84 309 Rest of Europe 165 61 109 46 381 Europe - Total 279 83 198 130 690 Rest of World 134 13 57 45 249 Total $ 1,469 $ 1,156 $ 840 $ 541 $ 4,006 Service line: Consulting and technology services $ 885 $ 613 $ 499 $ 289 $ 2,286 Outsourcing services 584 543 341 252 1,720 Total $ 1,469 $ 1,156 $ 840 $ 541 $ 4,006 Type of contract: Time and materials $ 953 $ 452 $ 379 $ 335 $ 2,119 Fixed-price 460 443 367 179 1,449 Transaction or volume-based 56 261 94 27 438 Total $ 1,469 $ 1,156 $ 840 $ 541 $ 4,006 Six Months Ended June 30, 2018 Financial Services Healthcare Products and Resources Communications, Media and Technology Total (in millions) Revenues Geography: North America $ 2,100 $ 2,083 $ 1,157 $ 702 $ 6,042 United Kingdom 230 45 176 168 619 Rest of Europe 327 122 218 88 755 Europe - Total 557 167 394 256 1,374 Rest of World 273 27 110 92 502 Total $ 2,930 $ 2,277 $ 1,661 $ 1,050 $ 7,918 Service line: Consulting and technology services $ 1,756 $ 1,251 $ 980 $ 567 $ 4,554 Outsourcing services 1,174 1,026 681 483 3,364 Total $ 2,930 $ 2,277 $ 1,661 $ 1,050 $ 7,918 Type of contract: Time and materials $ 1,888 $ 900 $ 748 $ 641 $ 4,177 Fixed-price 931 954 728 358 2,971 Transaction or volume-based 111 423 185 51 770 Total $ 2,930 $ 2,277 $ 1,661 $ 1,050 $ 7,918 |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | In 2018, we completed two business combinations for total consideration of approximately $492 million , inclusive of contingent consideration. The acquisition of Bolder Healthcare Solutions, a privately-held U.S. provider of revenue cycle management solutions to the healthcare industry expands our healthcare consulting, technology and business process services portfolio and strengthens our position in digital healthcare technology and operations. The acquisition of Hedera Consulting, a privately-held company specializing in business advisory and data analytics services across a number of industries expands our consulting, business insight and digital transformation capabilities in Belgium and the Netherlands. These acquisitions were not material, either individually or in the aggregate, to our operations, financial position or cash flow. Accordingly, pro forma results have not been presented. These acquisitions were included in our unaudited consolidated financial statements as of the date on which the businesses were acquired. We have allocated the purchase price related to these transactions to tangible and intangible assets and liabilities, including non-deductible goodwill, based on their estimated fair values. We will finalize the purchase price allocation as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition. The allocations of purchase price to the fair value of the aggregate assets acquired and liabilities assumed were as follows: Six Months Ended Fair Value Weighted Average Useful Life (in millions) Cash $ 10 Current assets 37 Property, plant and equipment and other noncurrent assets 10 Non-deductible goodwill (1) 340 Customer relationship intangible assets 123 9.7 years Other intangible assets 26 2.4 years Current liabilities (15 ) Noncurrent liabilities (39 ) Purchase price $ 492 (1) The primary items that generated goodwill are the value of the acquired assembled workforces and synergies between the acquired companies and us, neither of which qualify as an amortizable intangible asset. |
Realignment Charges
Realignment Charges | 6 Months Ended |
Jun. 30, 2018 | |
Realignment Charges [Abstract] | |
Realignment Charges | In 2017, we began a realignment of our business to accelerate the shift to digital services and solutions while improving the overall efficiency of our operations. Charges we incurred as part of this realignment were reported in "Selling, general and administrative expenses" in our consolidated statements of operations. The realignment charges are comprised of severance costs, including those related to a voluntary separation program announced in May 2017, lease termination costs and advisory fees related to non-routine shareholder matters and to the development of our realignment and return of capital programs. Realignment charges were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Employee separations $ — $ 37 $ — $ 39 Advisory fees — 1 — 10 Lease termination costs — 1 1 1 Total realignment costs $ — $ 39 $ 1 $ 50 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Investments | Our investments were as follows: June 30, 2018 December 31, 2017 (in millions) Short-term investments: Equity investment securities $ 25 $ 25 Available-for-sale investment securities 1,862 1,972 Held-to-maturity investment securities 987 745 Time deposits 472 (1) 389 Total short-term investments $ 3,346 $ 3,131 Long-term investments: Equity and cost method investments $ 74 $ 74 Held-to-maturity investment securities 6 161 Total long-term investments $ 80 $ 235 (1) Includes $419 million in restricted time deposits as of June 30, 2018. See Note 9 . Equity Investment Securities Our equity investment securities consist of a U.S. dollar denominated investment in a fixed income mutual fund. Unrealized losses for the three and six months ended June 30, 2018 and 2017 were immaterial. The value of the fixed income mutual fund is based on the net asset value, or NAV, of the fund, with appropriate consideration of the liquidity and any restrictions on disposition of our investment in the fund. There were no realized gains or losses on equity securities during the three and six months ended June 30, 2018 and 2017. Available-for-Sale Investment Securities Our available-for-sale investment securities consist of U.S. dollar denominated investments primarily in U.S. Treasury notes, U.S. government agency debt securities, municipal debt securities, non-U.S. government debt securities, U.S. and international corporate bonds, certificates of deposit, commercial paper, debt securities issued by supranational institutions, and asset-backed securities, including securities backed by auto loans, credit card receivables, and other receivables. Our investment guidelines are to purchase securities which are investment grade at the time of acquisition. We monitor the credit ratings of the securities in our portfolio on an ongoing basis. The amortized cost, gross unrealized gains and losses and fair value of available-for-sale investment securities at June 30, 2018 were as follows: Amortized Cost Unrealized Gains Unrealized Losses Fair (in millions) U.S. Treasury and agency debt securities $ 647 $ — $ (10 ) $ 637 Corporate and other debt securities 440 — (5 ) 435 Certificates of deposit and commercial paper 377 — — 377 Asset-backed securities 306 — (3 ) 303 Municipal debt securities 111 — (1 ) 110 Total available-for-sale investment securities $ 1,881 $ — $ (19 ) $ 1,862 The amortized cost, gross unrealized gains and losses and fair value of available-for-sale investment securities at December 31, 2017 were as follows: Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in millions) U.S. Treasury and agency debt securities $ 667 $ — $ (6 ) $ 661 Corporate and other debt securities 439 — (2 ) 437 Certificates of deposit and commercial paper 450 — — 450 Asset-backed securities 297 — (2 ) 295 Municipal debt securities 130 — (1 ) 129 Total available-for-sale investment securities $ 1,983 $ — $ (11 ) $ 1,972 The fair value and related unrealized losses of available-for-sale investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of June 30, 2018 : Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) U.S. Treasury and agency debt securities $ 517 $ (8 ) $ 86 $ (2 ) $ 603 $ (10 ) Corporate and other debt securities 321 (4 ) 97 (1 ) 418 (5 ) Certificates of deposit and commercial paper 99 — — — 99 — Asset-backed securities 212 (2 ) 78 (1 ) 290 (3 ) Municipal debt securities 86 (1 ) 16 — 102 (1 ) Total $ 1,235 $ (15 ) $ 277 $ (4 ) $ 1,512 $ (19 ) The fair value and related unrealized losses of available-for-sale investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of December 31, 2017 : Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) U.S. Treasury and agency debt securities $ 519 $ (4 ) $ 124 $ (2 ) $ 643 $ (6 ) Corporate and other debt securities 297 (1 ) 126 (1 ) 423 (2 ) Certificates of deposit and commercial paper 49 — — — 49 — Asset-backed securities 193 (1 ) 94 (1 ) 287 (2 ) Municipal debt securities 107 (1 ) 18 — 125 (1 ) Total $ 1,165 $ (7 ) $ 362 $ (4 ) $ 1,527 $ (11 ) The unrealized losses for the above securities as of June 30, 2018 and December 31, 2017 were primarily attributable to changes in interest rates. At each reporting date, we perform an evaluation of impaired available-for-sale securities to determine if the unrealized losses are other-than-temporary. We do not consider any of the investments to be other-than-temporarily impaired as of June 30, 2018 . The gross unrealized gains and losses in the above tables were recorded, net of tax, in "Accumulated other comprehensive income (loss)" in our consolidated statements of financial position. The contractual maturities of our fixed income available-for-sale investment securities as of June 30, 2018 are set forth in the following table: Amortized Cost Fair Value (in millions) Due within one year $ 536 $ 535 Due after one year up to two years 526 518 Due after two years up to three years 468 461 Due after three years 45 45 Asset-backed securities 306 303 Total available-for-sale investment securities $ 1,881 $ 1,862 Asset-backed securities were excluded from the maturity categories because the actual maturities may differ from the contractual maturities since the underlying receivables may be prepaid without penalties. Further, actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. Proceeds from sales of available-for-sale investment securities and the gross gains and losses that have been included in earnings as a result of those sales were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Proceeds from sales of available-for-sale investment securities $ 434 $ 397 $ 559 $ 1,645 Gross gains $ — $ — $ — $ 1 Gross losses (1 ) — (2 ) (1 ) Net realized (losses) on sales of available-for-sale investment securities $ (1 ) $ — $ (2 ) $ — Held-to-Maturity Investment Securities Our held-to-maturity investment securities consist of Indian rupee denominated investments primarily in commercial paper, corporate bonds and government debt securities. Our investment guidelines are to purchase securities that are investment grade at the time of acquisition. We monitor the credit ratings of the securities in our portfolio on an ongoing basis. The amortized cost, gross unrealized gains and losses and fair value of held-to-maturity investment securities at June 30, 2018 were as follows: Amortized Unrealized Unrealized Fair (in millions) Short-term investments: Corporate and other debt securities $ 599 $ — $ (2 ) $ 597 Commercial paper 388 — (1 ) 387 Total short-term held-to-maturity investments 987 — (3 ) 984 Long-term investments: Corporate and other debt securities 6 — — 6 Total held-to-maturity investment securities $ 993 $ — $ (3 ) $ 990 The amortized cost, gross unrealized gains and losses and fair value of held-to-maturity investment securities at December 31, 2017 were as follows: Amortized Unrealized Unrealized Fair (in millions) Short-term investments: Corporate and other debt securities $ 346 $ — $ (1 ) $ 345 Commercial paper 399 — (2 ) 397 Total short-term held-to-maturity investments 745 — (3 ) 742 Long-term investments: Corporate and other debt securities 161 — (1 ) 160 Total held-to-maturity investment securities $ 906 $ — $ (4 ) $ 902 The fair value and related unrealized losses of held-to-maturity investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of June 30, 2018 : Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) Corporate and other debt securities $ 485 $ (2 ) $ 31 $ — $ 516 $ (2 ) Commercial paper 387 (1 ) — — 387 (1 ) Total $ 872 $ (3 ) $ 31 $ — $ 903 $ (3 ) The fair value and related unrealized losses of held-to-maturity investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of December 31, 2017 : Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) Corporate and other debt securities $ 473 $ (2 ) $ — $ — $ 473 $ (2 ) Commercial paper 394 (2 ) — — 394 (2 ) Total $ 867 $ (4 ) $ — $ — $ 867 $ (4 ) At each reporting date, the Company performs an evaluation of held-to-maturity securities to determine if the unrealized losses are other-than-temporary. We do not consider any of the investments to be other-than-temporarily impaired as of June 30, 2018 . The contractual maturities of our fixed income held-to-maturity investment securities as of June 30, 2018 are set forth in the following table: Amortized Cost Fair Value (in millions) Due within one year $ 987 $ 984 Due after two years 6 6 Total held-to-maturity investment securities $ 993 $ 990 During the six months ended June 30, 2018 and the year ended December 31, 2017, there were no transfers of investments between our available-for-sale and held-to-maturity investment portfolios. |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities were as follows: June 30, 2018 December 31, 2017 (in millions) Compensation and benefits $ 928 $ 1,272 Income taxes 174 48 Professional fees 113 100 Travel and entertainment 45 32 Customer volume and other incentives 312 289 Derivative financial instruments 18 5 Other 322 325 Total accrued expenses and other current liabilities $ 1,912 $ 2,071 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | In 2014, we entered into a credit agreement with a commercial bank syndicate, or, as amended, the Credit Agreement, providing for a $1,000 million unsecured term loan and a $750 million unsecured revolving credit facility. The term loan and the revolving credit facility both mature in November 2019. All notes drawn to date under the revolving credit facility have been less than 90 days in duration. We are required under the Credit Agreement to make scheduled quarterly principal payments on the term loan. We were in compliance with all debt covenants and representations as of June 30, 2018 . Short-term Debt The following summarizes our short-term debt balances as of: June 30, 2018 December 31, 2017 (in millions) Notes outstanding under revolving credit facility $ — $ 75 Term loan - current maturities 100 100 Total short-term debt $ 100 $ 175 Long-term Debt The following summarizes our long-term debt balances as of: June 30, 2018 December 31, 2017 (in millions) Term loan, due November 2019 $ 750 $ 800 Less: Current maturities (100 ) (100 ) Deferred financing costs (1 ) (2 ) Long-term debt, net of current maturities $ 649 $ 698 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | On December 22, 2017, the United States enacted the Tax Reform Act, which significantly revised the U.S. corporate income tax law for tax years beginning after December 31, 2017 by (among other provisions): • reducing the U.S. federal statutory corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017; • implementing a modified territorial tax system that includes a one-time transition tax on all accumulated undistributed earnings of foreign subsidiaries; • providing for a full deduction on future dividends received from foreign affiliates; and • imposing a U.S. income tax on global intangible low-taxed income, or GILTI. During the fourth quarter of 2017, in accordance with the SEC Staff Accounting Bulletin ("SAB") No. 118 - Income Tax Accounting Implications of the Tax Cuts and Jobs Act, we recorded a one-time provisional net income tax expense of $617 million , which was comprised of: (i) the one-time transition tax expense on accumulated undistributed earnings of foreign subsidiaries of $635 million , (ii) foreign and U.S. state income tax expense that will be applicable upon repatriation of the accumulated undistributed earnings of our foreign subsidiaries, other than our Indian subsidiaries, of $53 million , partially offset by (iii) an income tax benefit of $71 million resulting from the revaluation of U.S. net deferred income tax liabilities to the new lower U.S. income tax rate. The Company has elected to pay the transition tax on undistributed earnings over eight years. The one-time incremental income tax expense is provisional as it reflects certain assumptions based upon our interpretation of the Tax Reform Act and may change, possibly materially, as we receive additional clarification and guidance and as the interpretation of the Tax Reform Act evolves over time. During the six months ended June 30, 2018, we have not recorded any adjustments to the one-time provisional net income tax expense. We will complete the accounting for the Tax Reform Act within the one year measurement period as provided in SAB 118. Our effective income tax rates were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Effective income tax rate 27.0 % 26.0 % 26.1 % 20.0 % The effective tax rate for the six months ended June 30, 2017 was affected by the recognition of income tax benefits previously unrecognized in our consolidated financial statements related to several uncertain tax positions totaling $72 million . The recognition of these benefits in the first quarter of 2017 was based on management’s reassessment regarding whether certain unrecognized tax benefits met the more-likely-than-not threshold in light of the lapse in the statute of limitations as to a portion of such benefits. The estimate of our 2018 annual effective income tax rate reflects the current interpretation of the Tax Reform Act, including the GILTI provision and may change as we receive additional clarification and guidance and as the interpretation of the Tax Reform Act evolves over time. We are involved in an ongoing dispute with the Indian Income Tax Department, or ITD, in connection with which we received a notice in March 2018 asserting that the ITD is owed additional taxes on our previously disclosed 2016 India Cash Remittance, the transaction undertaken by our principal operating subsidiary in India, or CTS India, to repurchase shares from its shareholders, which are non-Indian Cognizant entities, valued at $2.8 billion . As a result of that transaction, undertaken pursuant to a plan approved by the Madras High Court in Chennai, India, we previously paid $135 million in Indian income taxes, which we believe are all the applicable taxes owed for this transaction under Indian law. The ITD is asserting that we owe an additional 33 billion Indian rupees ( $482 million at the June 30, 2018 exchange rate) related to the 2016 India Cash Remittance. In addition to the dispute on the 2016 India Cash Remittance, we are involved in another ongoing dispute with the ITD relating to a 2013 transaction undertaken by CTS India to repurchase shares from its shareholders valued at $523 million (the two disputes collectively referred to as the ITD Dispute), for which we also believe we have paid all the applicable taxes owed. Accordingly, we have not recorded any reserves for these matters as of June 30, 2018. The ITD Dispute is ongoing, and no final decision has been reached. In March 2018, the ITD placed an attachment on certain of our India bank accounts, relating to the 2016 India Cash Remittance. In April 2018, the Madras High Court granted our application for a stay of the actions of the ITD and lifted the ITD’s attachment of our bank accounts. As part of the interim stay order, we have deposited 5 billion Indian rupees ( $72 million at the June 30, 2018 exchange rate) representing 15% of the disputed tax amount related to the 2016 India Cash Remittance, to be kept in a segregated account by the ITD. This amount is presented in "Other current assets" on our consolidated statement of financial position. In addition, in April 2018 the court placed a lien on certain time deposits of CTS India in the amount of 28 billion Indian rupees ( $410 million at the June 30, 2018 exchange rate), which is the remainder of the disputed tax amount related to the 2016 India Cash Remittance. We have classified affected time deposits as restricted assets and reported them in “Short-term investments” on our consolidated statement of financial position. As of June 30, 2018, the restricted time deposits balance was $419 million , including accumulated interest. There were no restricted time deposits as of December 31, 2017. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | In the normal course of business, we use foreign exchange forward contracts to manage foreign currency exchange rate risk. The estimated fair value of the foreign exchange forward contracts considers the following items: discount rate, timing and amount of cash flow and counterparty credit risk. Derivatives may give rise to credit risks from the possible non-performance by counterparties. Credit risk is generally limited to the fair value of those contracts that are favorable to us. We have limited our credit risk by entering into derivative transactions only with highly-rated financial institutions, limiting the amount of credit exposure with any one financial institution and conducting an ongoing evaluation of the creditworthiness of the financial institutions with which we do business. In addition, all the assets and liabilities related to our foreign exchange forward contracts set forth in the below table are subject to International Swaps and Derivatives Association, or ISDA, master netting arrangements or other similar agreements with each individual counterparty. These master netting arrangements generally provide for net settlement of all outstanding contracts with the counterparty in the case of an event of default or a termination event. We have presented all the assets and liabilities related to our foreign exchange forward contracts on a gross basis, with no offsets, in our accompanying unaudited consolidated statements of financial position. There is no financial collateral (including cash collateral) posted or received by us related to our foreign exchange forward contracts. The following table provides information on the location and fair values of derivative financial instruments included in our unaudited consolidated statements of financial position as of: June 30, 2018 December 31, 2017 Designation of Derivatives Location on Statements of Financial Position Assets Liabilities Assets Liabilities (in millions) Foreign exchange forward contracts – Designated as cash flow hedging instruments Other current assets $ 36 $ — $ 134 $ — Other noncurrent assets — — 20 — Accrued expenses and other current liabilities — 18 — — Other noncurrent liabilities — 25 — — Total 36 43 154 — Foreign exchange forward contracts – Not designated as hedging instruments Other current assets 4 — — — Accrued expenses and other current liabilities — — — 5 Total 4 — — 5 Total $ 40 $ 43 $ 154 $ 5 Cash Flow Hedges We have entered into a series of foreign exchange forward contracts that are designated as cash flow hedges of Indian rupee denominated payments in India. These contracts are intended to partially offset the impact of movement of exchange rates on future operating costs and are scheduled to mature each month during 2018 , 2019 and the first half of 2020. Under these contracts, we purchase Indian rupees and sell U.S. dollars. The changes in fair value of these contracts are initially reported in the caption “Accumulated other comprehensive income (loss)” in our consolidated statements of financial position and are subsequently reclassified to earnings in the same period the forecasted Indian rupee denominated payments are recorded in earnings. As of June 30, 2018 , we estimate that $13 million , net of tax, of net gains related to derivatives designated as cash flow hedges recorded in accumulated other comprehensive income (loss) is expected to be reclassified into earnings within the next 12 months. The notional value of our outstanding contracts by year of maturity and the net unrealized gains included in accumulated other comprehensive income (loss) for such contracts were as follows as of: June 30, 2018 December 31, 2017 (in millions) 2018 $ 690 $ 1,185 2019 1,050 720 2020 315 — Total notional value of contracts outstanding $ 2,055 $ 1,905 Net unrealized (losses) gains included in accumulated other comprehensive income (loss), net of taxes $ (8 ) $ 115 Upon settlement or maturity of the cash flow hedge contracts, we record the gains or losses, based on our designation at the commencement of the contract, with the related hedged Indian rupee denominated expense reported within cost of revenues and selling, general and administrative expenses. Hedge ineffectiveness was immaterial for all periods presented. The following table provides information on the location and amounts of pre-tax gains on our cash flow hedges for the three months ended June 30 : Change in Derivative Gains/Losses Recognized in Accumulated Other Comprehensive Income (Loss) (effective portion) Location of Net Derivative Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) Net Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) 2018 2017 2018 2017 (in millions) Foreign exchange forward contracts – Designated as cash flow hedging instruments $ (91 ) $ 35 Cost of revenues $ 18 $ 29 Selling, general and administrative expenses 3 6 Total $ 21 $ 35 The following table provides information on the location and amounts of pre-tax gains on our cash flow hedges for the six months ended June 30 : Change in Derivative Gains/Losses Recognized in Accumulated Other Comprehensive Income (Loss) (effective portion) Location of Net Derivative Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) Net Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) 2018 2017 2018 2017 (in millions) Foreign exchange forward contracts – Designated as cash flow hedging instruments $ (105 ) $ 159 Cost of revenues $ 48 $ 46 Selling, general and administrative expenses 8 9 Total $ 56 $ 55 The activity related to the change in net unrealized gains on our cash flow hedges included in accumulated other comprehensive income (loss) is presented in Note 12 . Other Derivatives We use foreign exchange forward contracts, which have not been designated as hedges, to hedge balance sheet exposure to certain monetary assets and liabilities denominated in currencies, primarily the Indian rupee, British pound and Euro, other than the functional currency of our foreign subsidiaries. We entered into a series of foreign exchange forward contracts that are scheduled to mature in 2018. Realized gains or losses and changes in the estimated fair value of these derivative financial instruments are recorded in the caption "Foreign currency exchange gains (losses), net" in our consolidated statements of operations. Additional information related to our outstanding foreign exchange forward contracts not designated as hedging instruments is as follows: June 30, 2018 December 31, 2017 Notional Fair Value Notional Fair Value (in millions) Contracts outstanding $ 432 $ 4 $ 255 $ (5 ) The following table provides information on the location and amounts of realized and unrealized pre-tax gains and losses on our other derivative financial instruments for the three and six months ended June 30 : Location of Net Gains (Losses) on Derivative Instruments Amount of Net Gains (Losses) on Derivative Instruments Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Foreign exchange forward contracts – Not designated as hedging instruments Foreign currency exchange gains (losses), net $ 18 $ (3 ) $ 20 $ (13 ) The related cash flow impacts of all of our derivative activities are reflected as cash flows from operating activities. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | We measure our cash equivalents, investments and foreign exchange forward contracts at fair value. The authoritative guidance defines fair value as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. • Level 3 – Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of June 30, 2018 : Level 1 Level 2 Level 3 Total (in millions) Cash equivalents: Money market funds $ 300 $ — $ — $ 300 Certificates of deposit and commercial paper — 81 — 81 Total cash equivalents 300 81 — 381 Short-term investments: Time deposits (1) — 472 — 472 Available-for-sale investment securities: U.S. Treasury and agency debt securities 572 65 — 637 Corporate and other debt securities — 435 — 435 Certificates of deposit and commercial paper — 377 — 377 Asset-backed securities — 303 — 303 Municipal debt securities — 110 — 110 Total available-for-sale investment securities 572 1,290 — 1,862 Held-to-maturity investment securities: Commercial paper — 387 — 387 Corporate and other debt securities — 597 — 597 Total short-term held-to-maturity investment securities — 984 — 984 Total short-term investments (2) 572 2,746 — 3,318 Long-term investments: Held-to-maturity investment securities: Corporate and other debt securities — 6 — 6 Total long-term held-to-maturity investment securities — 6 — 6 Total long-term investments (3) — 6 — 6 Derivative financial instruments - foreign exchange forward contracts: Other current assets — 40 — 40 Accrued expenses and other current liabilities — (18 ) — (18 ) Other noncurrent liabilities — (25 ) — (25 ) Total $ 872 $ 2,830 $ — $ 3,702 (1) Includes $419 million in restricted time deposits. See Note 9 . (2) Excludes an equity security invested in a mutual fund valued at $25 million based on the NAV of the fund. (3) Excludes equity and cost method investments of $74 million , which are accounted for using the equity method of accounting and at cost, respectively. The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of December 31, 2017 : Level 1 Level 2 Level 3 Total (in millions) Cash equivalents: Money market funds $ 334 $ — $ — $ 334 Bank deposits — 80 — 80 Commercial paper — 386 — 386 Total cash equivalents 334 466 — 800 Short-term investments: Time deposits — 389 — 389 Available-for-sale investment securities: U.S. Treasury and agency debt securities 585 76 — 661 Corporate and other debt securities — 437 — 437 Certificates of deposit and commercial paper — 450 — 450 Asset-backed securities — 295 — 295 Municipal debt securities — 129 — 129 Total available-for-sale investment securities 585 1,387 — 1,972 Held-to-maturity investment securities: Commercial paper — 397 — 397 Corporate and other debt securities — 345 — 345 Total held-to-maturity investment securities — 742 — 742 Total short-term investments (1) 585 2,518 — 3,103 Long-term investments: Held-to-maturity investment securities: Corporate and other debt securities — 160 — 160 Total held-to-maturity investment securities — 160 — 160 Total long-term investments (2) — 160 — 160 Derivative financial instruments - foreign exchange forward contracts: Other current assets — 134 — 134 Accrued expenses and other current liabilities — (5 ) — (5 ) Other noncurrent assets — 20 — 20 Total $ 919 $ 3,293 $ — $ 4,212 (1) Excludes an equity security invested in a mutual fund valued at $25 million based on the NAV of the fund. (2) Excludes equity and cost method investments of $74 million , which are accounted for using the equity method of accounting and at cost, respectively. We measure the fair value of money market funds and U.S. Treasury securities based on quoted prices in active markets for identical assets and therefore classify these assets as Level 1. The fair value of commercial paper, certificates of deposit, U.S. government agency securities, municipal debt securities, debt securities issued by supranational institutions, U.S. and international corporate bonds and foreign government debt securities is measured based on relevant trade data, dealer quotes, or model-driven valuations using significant inputs derived from or corroborated by observable market data, such as yield curves and credit spreads. We measure the fair value of our asset-backed securities using model-driven valuations based on significant inputs derived from or corroborated by observable market data such as dealer quotes, available trade information, spread data, current market assumptions on prepayment speeds and defaults and historical data on deal collateral performance. The carrying value of deposits approximated fair value as of June 30, 2018 and December 31, 2017 . We estimate the fair value of each foreign exchange forward contract by using a present value of expected cash flows model. This model calculates the difference between the current market forward price and the contracted forward price for each foreign exchange contract and applies the difference in the rates to each outstanding contract. The market forward rates include a discount and credit risk factor. The amounts are aggregated by type of contract and maturity. During the six months ended June 30, 2018 and the year ended December 31, 2017 , there were no transfers among Level 1, Level 2, or Level 3 financial assets and liabilities. |
Stockholder's Equity
Stockholder's Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stock Repurchase Program We have entered into multiple accelerated stock repurchase agreements, or ASRs, under our stock repurchase program authorized by our Board of Directors. The ASR activity and related information during the six months ended June 30, 2018 and the year ended December 31, 2017 were as follows: Purchase Period End Date Number of Shares Average Repurchase Price per Share ASR Amount (in millions) (in millions) June 2018 ASR (1) 6.5 (1) (1) $ 600 March 2018 ASR May 2018 3.7 (2) $ 79.95 $ 300 December 2017 ASR March 2018 4.0 (3) $ 75.75 $ 300 March 2017 ASR August 2017 23.7 $ 63.19 $ 1,500 ___________________ (1) Under the terms of the June 2018 ASR and in exchange for up-front payments of $600 million , the financial institution initially delivered 6.5 million shares, a portion of the Company's total expected shares to be repurchased under the June 2018 ASR. The total number of shares ultimately delivered, and therefore the average price paid per share, will be determined at the end of the purchase period, which is scheduled to end during the third quarter of 2018, based on the volume-weighted average price of the Company's common stock during that period. (2) Includes 3.0 million shares initially delivered in March 2018 and 0.7 million shares delivered in May 2018 upon the final settlement of the ASR. (3) Includes 3.6 million shares initially delivered in December 2017 and 0.4 million shares delivered in March 2018 upon the final settlement of the ASR. Our stock repurchase program allows for the repurchase of $3,500 million of our outstanding shares of Class A common stock, excluding fees and expenses, through December 31, 2019. As of June 30, 2018, the remaining available balance under our stock repurchase program was $800 million . Stock repurchases were made in connection with our stock-based compensation plans, whereby Company shares were tendered by employees for payment of applicable statutory tax withholdings. In 2017, we also repurchased a limited number of shares from employees at the repurchase date market price. For the six months ended June 30, 2018 and 2017, such repurchases totaled 0.6 million shares at an aggregate cost of $49 million , and 0.7 million shares at an aggregate cost of $44 million , respectively. Dividends Dividends on our Class A common stock, including dividend equivalents, during the periods presented were as follows: Dividends per Share Amount (in millions) 2018: Three months ended March 31, 2018 $ 0.20 $ 119 Three months ended June 30, 2018 0.20 119 Six months ended June 30, 2018 $ 238 2017: Three months ended June 30, 2017 $ 0.15 $ 89 Three months ended September 30, 2017 0.15 90 Three months ended December 31, 2017 0.15 89 Year ended December 31, 2017 $ 268 On August 2, 2018, our Board of Directors approved the Company's declaration of a $0.20 per share dividend with a record date of August 22, 2018 and a payment date of August 31, 2018. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component were as follows for the three and six months ended June 30, 2018 : Three Months Six Months Before Tax Amount Tax Effect Net of Tax Amount Before Tax Tax Net of Tax (in millions) Foreign currency translation adjustments: Beginning balance $ 3 $ (4 ) $ (1 ) $ (38 ) $ — $ (38 ) Change in foreign currency translation adjustments (82 ) 11 (71 ) (41 ) 7 (34 ) Ending balance $ (79 ) $ 7 $ (72 ) $ (79 ) $ 7 $ (72 ) Unrealized (losses) on available-for-sale investment securities: Beginning balance $ (19 ) $ 4 $ (15 ) $ (11 ) $ 4 $ (7 ) Cumulative effect of change in accounting principle (1) — — — — (1 ) (1 ) Net unrealized (losses) arising during the period (1 ) 1 — (10 ) 2 (8 ) Reclassification of net losses to Other, net 1 — 1 2 — 2 Net change — 1 1 (8 ) 1 (7 ) Ending balance $ (19 ) $ 5 $ (14 ) $ (19 ) $ 5 $ (14 ) Unrealized gains on cash flow hedges: Beginning balance $ 105 $ (26 ) $ 79 $ 154 $ (39 ) $ 115 Unrealized (losses) arising during the period (91 ) 19 (72 ) (105 ) 24 (81 ) Reclassifications of net (gains) to: Cost of revenues (18 ) 5 (13 ) (48 ) 12 (36 ) Selling, general and administrative expenses (3 ) 1 (2 ) (8 ) 2 (6 ) Net change (112 ) 25 (87 ) (161 ) 38 (123 ) Ending balance $ (7 ) $ (1 ) $ (8 ) $ (7 ) $ (1 ) $ (8 ) Accumulated other comprehensive income (loss): Beginning balance $ 89 $ (26 ) $ 63 $ 105 $ (35 ) $ 70 Other comprehensive income (loss) (194 ) 37 (157 ) (210 ) 46 (164 ) Ending balance $ (105 ) $ 11 $ (94 ) $ (105 ) $ 11 $ (94 ) (1) Reflects the adoption of accounting standards as described in Note 1 . Changes in accumulated other comprehensive income (loss) by component were as follows for the three and six months ended June 30, 2017 : Three Months Six Months Before Tax Amount Tax Effect Net of Tax Amount Before Tax Tax Net of Tax (in millions) Foreign currency translation adjustments: Beginning balance $ (132 ) $ — $ (132 ) $ (149 ) $ — $ (149 ) Change in foreign currency translation adjustments 50 — 50 67 — 67 Ending balance $ (82 ) $ — $ (82 ) $ (82 ) $ — $ (82 ) Unrealized gains (losses) on available-for-sale investment securities: Beginning balance $ (4 ) $ 1 $ (3 ) $ (6 ) $ 2 $ (4 ) Net unrealized gains arising during the period 1 — 1 3 (1 ) 2 Reclassification of net (gains) to Other, net — — — — — — Net change 1 — 1 3 (1 ) 2 Ending balance $ (3 ) $ 1 $ (2 ) $ (3 ) $ 1 $ (2 ) Unrealized gains on cash flow hedges: Beginning balance $ 155 $ (37 ) $ 118 $ 51 $ (12 ) $ 39 Unrealized gains arising during the period 35 (9 ) 26 159 (39 ) 120 Reclassifications of net (gains) to: Cost of revenues (29 ) 7 (22 ) (46 ) 11 (35 ) Selling, general and administrative expenses (6 ) 1 (5 ) (9 ) 2 (7 ) Net change — (1 ) (1 ) 104 (26 ) 78 Ending balance $ 155 $ (38 ) $ 117 $ 155 $ (38 ) $ 117 Accumulated other comprehensive income (loss): Beginning balance $ 19 $ (36 ) $ (17 ) $ (104 ) $ (10 ) $ (114 ) Other comprehensive income (loss) 51 (1 ) 50 174 (27 ) 147 Ending balance $ 70 $ (37 ) $ 33 $ 70 $ (37 ) $ 33 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | We are involved in various claims and legal actions arising in the ordinary course of business. We accrue a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, we do not record a liability, but instead disclose the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. In the opinion of management, the outcome of any existing claims and legal or regulatory proceedings, other than the specific matters described below, if decided adversely, is not expected to have a material adverse effect on our business, financial condition, results of operations and cash flows. We are conducting an internal investigation focused on whether certain payments relating to Company-owned facilities in India were made improperly and in possible violation of the FCPA and other applicable laws. The investigation is also examining various other payments made in small amounts in India that may not have complied with Company policy or applicable law. In September 2016, we voluntarily notified the DOJ and SEC and are cooperating fully with both agencies. The investigation is being conducted under the oversight of the Audit Committee, with the assistance of outside counsel. To date, the investigation has identified a total of approximately $6 million in payments made between 2009 and 2016 that may have been improper. During the year ended December 31, 2016, we recorded out-of-period corrections related to $4 million of such payments that were previously capitalized that should have been expensed. These out-of-period corrections and the other $2 million in potentially improper payments were not material to any previously issued financial statements. There were no adjustments recorded during 2018 and 2017 related to the amounts under investigation. On October 5, 2016, October 27, 2016, and November 18, 2016, three putative securities class action complaints were filed in the United States District Court for the District of New Jersey, naming us and certain of our current and former officers as defendants. In an order dated February 3, 2017, the United States District Court for the District of New Jersey consolidated the three putative securities class actions into a single action and appointed lead plaintiffs and lead counsel. On April 7, 2017, the lead plaintiffs filed a consolidated amended complaint on behalf of a putative class of stockholders who purchased our common stock during the period between February 27, 2015 and September 29, 2016, naming us and certain of our current and former officers as defendants and alleging violations of the Exchange Act, based on allegedly false or misleading statements related to potential violations of the FCPA, our business, prospects and operations, and the effectiveness of our internal controls over financial reporting and our disclosure controls and procedures. The lead plaintiffs seek an award of compensatory damages, among other relief, and their reasonable costs and expenses, including attorneys’ fees. Under a stipulation filed by the parties on February 23, 2017, defendants filed motions to dismiss the consolidated amended complaint on June 6, 2017, plaintiffs filed an opposition brief on July 21, 2017 responding to defendants’ motions to dismiss, and defendants filed reply briefs in further support of their motions to dismiss on September 5, 2017. On September 5, 2017, defendants also filed a motion to strike certain allegations in the consolidated amended complaint, plaintiffs filed an opposition to the motion to strike on October 2, 2017, and, on October 10, 2017, we filed a reply brief in further support of the motion to strike. On October 31, 2016, November 15, 2016, and November 18, 2016, three putative shareholder derivative complaints were filed in New Jersey Superior Court, Bergen County, naming us, all of our then current directors and certain of our current and former officers as defendants. On January 24, 2017, the New Jersey Superior Court, Bergen County, consolidated the three putative shareholder derivative actions filed in that court into a single action and appointed lead plaintiff and lead counsel. The complaints assert claims for breach of fiduciary duty, corporate waste, unjust enrichment, abuse of control, mismanagement, and/or insider selling by defendants. On March 16, 2017, the parties filed a stipulation deferring all further proceedings pending a final, non-appealable ruling on the then anticipated motion to dismiss the consolidated putative securities class action. On April 26, 2017, in lieu of ordering the stipulation filed by the parties, the New Jersey Superior Court deferred further proceedings by dismissing the consolidated putative shareholder derivative litigation without prejudice but permitting the parties to file a motion to vacate the dismissal in the future. On February 22, 2017, a fourth putative shareholder derivative complaint asserting similar claims was filed in the United States District Court for the District of New Jersey, naming us and certain of our then current directors as defendants. On April 5, 2017, the United States District Court for the District of New Jersey entered an order staying all proceedings pending a final, non-appealable ruling on the then anticipated motion to dismiss the consolidated putative securities class action. On April 7, 2017, a fifth putative shareholder derivative complaint was filed in the United States District Court for the District of New Jersey, naming us, certain of our then current directors, and certain of our current and former officers as defendants. The complaint in that action asserts claims similar to those in the previously-filed putative shareholder derivative actions, but also adds a claim for violations of Section 10(b) of the Exchange Act against the individual defendants. On May 10, 2017, a sixth putative shareholder derivative complaint was filed in the United States District Court for the District of New Jersey, naming us, certain of our then current directors, and certain of our current and former officers as defendants. The complaint in that action asserts claims similar to those in the previously-filed putative shareholder derivative actions, but also adds a claim for violations of Section 14(a) of the Exchange Act against the individual defendants. In an order dated June 20, 2017, the United States District Court for the District of New Jersey consolidated the three putative shareholder derivative actions filed in that court into a single action, appointed lead plaintiff and lead counsel, and stayed all further proceedings pending a final, non-appealable ruling on the motions to dismiss the consolidated putative securities class action. All of the putative shareholder derivative complaints allege among other things that certain of our public disclosures were false and misleading by failing to disclose that payments allegedly in violation of the FCPA had been made and by asserting that management had determined that our internal controls were effective. The plaintiffs seek awards of compensatory damages and restitution to the Company as a result of the alleged violations and their costs and attorneys’ fees, experts’ fees, and other litigation expenses, among other relief. We are presently unable to predict the duration, scope or result of the internal investigation, any investigations by the DOJ or the SEC, the consolidated putative securities class action, the putative shareholder derivative actions or any other lawsuits. As such, we are presently unable to develop a reasonable estimate of a possible loss or range of losses, if any, and thus have not recorded any accruals related to these matters. The DOJ and the SEC have a broad range of civil and criminal sanctions under the FCPA and other laws and regulations including injunctive relief, disgorgement, fines, penalties, modifications to business practices, including the termination or modification of existing business relationships, the imposition of compliance programs and the retention of a monitor to oversee compliance with the FCPA. In addition, the DOJ and the SEC could bring enforcement actions against the Company or individuals, including former members of senior management. Such actions, if brought, could result in dispositions, judgments, settlements, fines, injunctions, cease and desist orders, debarment or other civil or criminal penalties against the Company or such individuals. We expect to incur additional expenses related to remedial measures, and may incur additional expenses related to fines. The imposition of any sanctions or the implementation of remedial measures could have a material adverse effect on our business, annual and interim results of operations, cash flows and financial condition. Furthermore, while the Company intends to defend the lawsuits vigorously, these lawsuits and any other related lawsuits are subject to inherent uncertainties, the actual cost of such litigation will depend upon many unknown factors and the outcome of the litigation is necessarily uncertain. We have indemnification and expense advancement obligations pursuant to our Bylaws and indemnification agreements with respect to certain current and former members of senior management and the Company’s directors. In connection with the ongoing internal investigation, we have received requests under such indemnification agreements and our Bylaws to provide funds for legal fees and other expenses, and expect additional requests in connection with the investigation and related litigation. We have not recorded any liability for these matters as of June 30, 2018 as we cannot estimate the ultimate outcome at this time but have expensed payments made through June 30, 2018. We have maintained directors and officers insurance, from which a portion of the indemnification expenses and costs related to the putative securities class action complaints may be recoverable, and have recorded an insurance receivable of less than $1 million as of June 30, 2018. See Note 9 for information relating to the ITD Dispute. Many of our engagements involve projects that are critical to the operations of our customers’ business and provide benefits that are difficult to quantify. Any failure in a customer’s systems or our failure to meet our contractual obligations to our customers, including any breach involving a customer’s confidential information or sensitive data, or our obligations under applicable laws or regulations could result in a claim for substantial damages against us, regardless of our responsibility for such failure. Although we attempt to contractually limit our liability for damages arising from negligent acts, errors, mistakes, or omissions in rendering our services, there can be no assurance that the limitations of liability set forth in our contracts will be enforceable in all instances or will otherwise protect us from liability for damages. Although we have general liability insurance coverage, including coverage for errors or omissions, there can be no assurance that such coverage will cover all types of claims, continue to be available on reasonable terms or will be available in sufficient amounts to cover one or more large claims, or that the insurer will not disclaim coverage as to any future claim. The successful assertion of one or more large claims against us that exceed or are not covered by our insurance coverage or changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, could have a material adverse effect on our business, results of operations, financial condition and cash flows. In the normal course of business and in conjunction with certain customer engagements, we have entered into contractual arrangements through which we may be obligated to indemnify customers or other parties with whom we conduct business with respect to certain matters. These arrangements can include provisions whereby we agree to hold the indemnified party and certain of their affiliated entities harmless with respect to third-party claims related to such matters as our breach of certain representations or covenants, our intellectual property infringement, our gross negligence or willful misconduct or certain other claims made against certain parties. Payments by us under any of these arrangements are generally conditioned on the customer making a claim and providing us with full control over the defense and settlement of such claim. It is not possible to determine the maximum potential liability under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Historically, we have not made payments under these indemnification agreements and therefore they have not had any impact on our operating results, financial position, or cash flows. However, if events arise requiring us to make payment for indemnification claims under our indemnification obligations in contracts we have entered, such payments could have material impact on our business, results of operations, financial condition and cash flows. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Brackett B. Denniston, III was the Interim General Counsel and an executive officer of the Company from December 2016 until May 15, 2017, during which period Mr. Denniston was also a Senior Counsel at the law firm of Goodwin Procter LLP, or Goodwin. During the three and six months ended June 30, 2017, Goodwin performed legal services for the Company for which it earned approximately $1 million and $3 million , respectively. For such period and other periods when Goodwin was a related party of the Company, the provision of legal services from Goodwin was reviewed and approved by our Audit Committee. During the six months ended June 30, 2018, Goodwin was not a related party of the Company. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Our reportable segments are: • Financial Services, which consists of our banking and insurance operating segments; • Healthcare, which consists of our healthcare and life sciences operating segments; • Products and Resources, which consists of our retail and consumer goods, manufacturing and logistics, travel and hospitality, and energy and utilities operating segments; and • Communications, Media and Technology, which includes our communications and media operating segment and our technology operating segment. Our sales managers, account executives, account managers and project teams are aligned in accordance with the specific industries they serve. Our chief operating decision maker evaluates the Company’s performance and allocates resources based on segment revenues and operating profit. Segment operating profit is defined as income from operations before unallocated costs. Generally, operating expenses for each operating segment have similar characteristics and are subject to the same factors, pressures and challenges. However, the economic environment and its effects on industries served by our operating segments may affect revenues and operating expenses to differing degrees. In 2018, we made changes to the internal measurement of segment operating profits for the purpose of evaluating segment performance and resource allocation. The primary reason for the changes is to charge to our business segments costs that are directly managed and controlled by them. Specifically, segment operating profit now includes the stock-based compensation expense of sales managers, account executives, account managers and project teams, which was previously included in "unallocated costs." In addition, we have changed the methodology of charging our business segments for the use of our global delivery centers and infrastructure from a fixed per employee charge to a variable per employee charge that differs depending on location and assets deployed. We have reported our segment operating profits using the new measurement methodology and have restated the prior period results to conform to the new methodology. Expenses included in segment operating profit consist principally of direct selling and delivery costs (including stock-based compensation expense) as well as a per employee charge for use of our global delivery centers and infrastructure. Certain selling, general and administrative expenses, excess or shortfall of incentive compensation for delivery personnel as compared to target, costs related to our realignment program, a portion of depreciation and amortization and the impact of the settlements of our cash flow hedges are not allocated to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are excluded from segment operating profit and are separately disclosed as “unallocated costs” and adjusted against our total income from operations. Additionally, management has determined that it is not practical to allocate identifiable assets by segment, since such assets are used interchangeably among the segments. As described in Note 3 to our unaudited consolidated financial statements, on January 1, 2018, we adopted the New Revenue Standard, using the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under the New Revenue Standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting policies. Revenues from external customers and segment operating profits, before unallocated expenses, by reportable segment were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Revenues: Financial Services $ 1,469 $ 1,406 $ 2,930 $ 2,782 Healthcare 1,156 1,050 2,277 2,053 Products and Resources 840 747 1,661 1,484 Communications, Media and Technology 541 467 1,050 897 Total revenues $ 4,006 $ 3,670 $ 7,918 $ 7,216 Segment Operating Profit: Financial Services $ 462 $ 445 $ 909 $ 872 Healthcare 357 345 695 619 Products and Resources 258 230 514 447 Communications, Media and Technology 179 156 338 291 Total segment operating profit 1,256 1,176 2,456 2,229 Less: unallocated costs (1) 586 570 1,093 1,053 Income from operations $ 670 $ 606 $ 1,363 $ 1,176 ________________ (1) In the second quarter of 2018, we provided $100 million of initial funding to Cognizant U.S. Foundation, which is focused on science, technology, engineering and math (or collectively, STEM) education in the United States. This charge was recorded in unallocated costs for the three and six months ended June 30, 2018. Geographic Area Information Revenue and long-lived assets, by geographic area, are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Revenues: (1) North America (2) $ 3,067 $ 2,851 $ 6,042 $ 5,612 United Kingdom 309 288 619 562 Rest of Europe 381 291 755 576 Europe - Total 690 579 1,374 1,138 Rest of World (3) 249 240 502 466 Total revenues $ 4,006 $ 3,670 $ 7,918 $ 7,216 As of June 30, 2018 December 31, 2017 (in millions) Long-lived Assets: (4) North America (2) $ 403 $ 360 Europe 82 63 Rest of World (3)(5) 860 901 Total $ 1,345 $ 1,324 ________________ (1) Revenues are attributed to regions based upon customer location. (2) Substantially all relates to operations in the United States. (3) Includes our operations in Asia Pacific, the Middle East and Latin America. (4) Long-lived assets include property and equipment, net of accumulated depreciation and amortization. (5) Substantially all of these long-lived assets relate to our operations in India. |
Interim Consolidated Financia23
Interim Consolidated Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted/New Accounting Pronouncements | Recently Adopted Accounting Pronouncements Date Issued and Topic Date Adopted and Method Description Impact May 2014 January 1, 2018 Modified Retrospective The new standard, as amended, sets forth a single comprehensive model for recognizing and reporting revenues. The standard also requires additional financial statement disclosures that enable users to understand the nature, amount, timing and uncertainty of revenues and cash flows relating to customer contracts. The standard allows for two methods of adoption: the full retrospective adoption, which requires the standard to be applied to each prior period presented, or the modified retrospective adoption, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption. See Note 3 for the impact of adoption of this standard. November 2016 Statement of Cash Flows January 1, 2018 Retrospective This update requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending amounts on the statement of cash flows. It also requires a reconciliation of such totals to the amounts on the statement of financial position and disclosure as to the nature of the restrictions. There were no restricted cash balances as of June 30, 2018. The adoption of this update had no impact on our financial statements for the three and six months ended June 30, 2018. February 2018 January 1, 2018 In the period of adoption This update provides an option for entities to reclassify stranded tax effects caused by the newly-enacted Tax Cuts and Jobs Act, or Tax Reform Act, from accumulated other comprehensive income to retained earnings. We have early adopted this update as of January 1, 2018. The adoption resulted in a decrease of $1 million in accumulated other comprehensive income and a corresponding increase of $1 million to opening retained earnings. New Accounting Pronouncements Date Issued and Topic Effective Date Description Impact February 2016 January 1, 2019 The new standard replaces the existing guidance on leases and requires the lessee to recognize a right-of-use asset and a lease liability for all leases with lease terms equal to or greater than twelve months. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize total lease expense on a straight-line basis. The standard offers several practical expedients for transition and certain expedients specific to lessees or lessors. The standard allows for two methods of adoption: retrospective to each prior reporting period presented with the cumulative effect of adoption recognized at the beginning of the earliest period presented or retrospective to the beginning of the period of adoption through a cumulative-effect adjustment. While we are continuing to evaluate the provisions of this standard, the primary effect will be to require recording of right-of-use assets and corresponding lease obligations for current operating leases. We expect the adoption of this standard to have a material impact on our consolidated statement of financial position, but not on the consolidated statements of operations or cash flows. As of December 31, 2017, our undiscounted operating lease commitments were $943 million. We are currently planning to elect the package of practical expedients which permits us to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. We are also evaluating other available practical expedients. We intend to adopt the standard retrospectively to the beginning of the period of adoption through a cumulative-effect adjustment. March 2017 January 1, 2019 This update shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. The amendments do not require an accounting change for securities held at a discount. Upon adoption, entities will be required to use a modified retrospective transition with the cumulative effect adjustment recognized to retained earnings as of the beginning of the period of adoption. We are currently evaluating the effect the amendments will have on our consolidated financial statements and related disclosures. |
Revenue from Contract with Customer | Our contract liabilities, or deferred revenue, consist of advance payments and billings in excess of revenues recognized. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize the revenues. The noncurrent portion of deferred revenue is included in other noncurrent liabilities in our consolidated statements of financial position. Our contract assets and liabilities are reported in a net position on a contract by contract basis at the end of each reporting period. The difference between the opening and closing balances of our contract assets and deferred revenues primarily results from the timing difference between our performance obligations and the customer’s payment. We receive payments from customers based on the terms established in our contracts, which vary by contract type. Revenue Recognition We recognize revenues as we transfer control of deliverables (products, solutions and services) to our customers in an amount reflecting the consideration to which we expect to be entitled. To recognize revenues, we apply the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenues when a performance obligation is satisfied. We account for a contract when it has approval and commitment from all parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience. We may enter into arrangements that consist of multiple performance obligations. Such arrangements may include any combination of our deliverables. To the extent a contract includes multiple promised deliverables, we apply judgment to determine whether promised deliverables are capable of being distinct and are distinct in the context of the contract. If these criteria are not met, the promised deliverables are accounted for as a combined performance obligation. For arrangements with multiple distinct performance obligations, we allocate consideration among the performance obligations based on their relative standalone selling price. Standalone selling price is the price at which we would sell a promised good or service separately to the customer. When not directly observable, we typically estimate standalone selling price by using the expected cost plus a margin approach. We typically establish a standalone selling price range for our deliverables, which is reassessed on a periodic basis or when facts and circumstances change. For performance obligations where control is transferred over time, revenues are recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the deliverables to be provided. Revenues related to fixed-price contracts for application development and systems integration services, consulting or other technology services are recognized as the service is performed using the cost to cost method, under which the total value of revenues is recognized on the basis of the percentage that each contract’s total labor cost to date bears to the total expected labor costs. Revenues related to fixed-price application maintenance, testing and business process services are recognized based on our right to invoice for services performed for contracts in which the invoicing is representative of the value being delivered, in accordance with the practical expedient in ASC 606-10-55-18. If our invoicing is not consistent with value delivered, revenues are recognized as the service is performed based on the cost to cost method described above. The cost to cost method requires estimation of future costs, which is updated as the project progresses to reflect the latest available information; such estimates and changes in estimates involve the use of judgment. The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known and any anticipated losses on contracts are recognized immediately. Revenues related to fixed-price hosting and infrastructure services are recognized based on our right to invoice for services performed for contracts in which the invoicing is representative of the value being delivered, in accordance with the practical expedient in ASC 606-10-55-18. If our invoicing is not consistent with value delivered, revenues are recognized on a straight-line basis unless revenues are earned and obligations are fulfilled in a different pattern. The revenue recognition method applied to the types of contracts described above provides the most faithful depiction of performance towards satisfaction of our performance obligations; for example, the cost to cost method is used when the value of services provided to the customer is best represented by the costs expended to deliver those services. Revenues related to our non-hosted software license arrangements that do not require significant modification or customization of the underlying software are recognized when the software is delivered as control is transferred at a point in time. For software license arrangements that require significant functionality enhancements or modification of the software, revenues for the software license and related services are recognized as the services are performed in accordance with the methods described above. In software hosting arrangements, the rights provided to the customer, such as ownership of a license, contract termination provisions and the feasibility of the client to operate the software, are considered in determining whether the arrangement includes a license or a service. Sales and usage-based fees promised in exchange for licenses of intellectual property are not recognized as revenue until the uncertainty related to the variable amounts is resolved. Revenues related to software maintenance and support are generally recognized on a straight-line basis over the contract period. Revenues related to our time-and-materials, transaction-based or volume-based contracts are recognized over the period the services are provided in a manner that corresponds with the value transferred to the customer to-date relative to the remaining services to be provided. Revenues also include the reimbursement of out-of-pocket expenses. Our warranties generally provide a customer with assurance that the related deliverable will function as the parties intended because it complies with agreed-upon specifications and is therefore not considered an additional performance obligation in the contract. From time to time, we may enter into arrangements with third party suppliers to resell products or services. In such cases, we evaluate whether we are the principal (i.e. report revenues on a gross basis) or agent (i.e. report revenues on a net basis). In doing so, we first evaluate whether we control the good or service before it is transferred to the customer. If we control the good or service before it is transferred to the customer, we are the principal; if not, we are the agent. Determining whether we control the good or service before it is transferred to the customer may require judgment. Our contracts may be modified to add, remove or change existing performance obligations. The accounting for modifications to our contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is at the standalone selling price. Services added that are not distinct are accounted for on a cumulative catch up basis, while those that are distinct are accounted for prospectively, either as a separate contract if the additional services are priced at the standalone selling price, or as a termination of the existing contract and creation of a new contract if not priced at the standalone selling price. Services added to our application development and systems integration service contracts are typically not distinct, while services added to our other contracts, including application maintenance, testing and business process services contracts, are typically distinct. Incentive revenues, volume discounts, or any other form of variable consideration is estimated using either the sum of probability weighted amounts in a range of possible consideration amounts (expected value), or the single most likely amount in a range of possible consideration amounts (most likely amount), depending on which method better predicts the amount of consideration to which we may be entitled. We include in the transaction price variable consideration only to the extent it is probable that a significant reversal of revenues recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price may involve judgment and are based largely on an assessment of our anticipated performance and all information that is reasonably available to us. We assess the timing of the transfer of goods or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or us, no financing component is deemed to exist. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our services, not to receive or provide financing from or to customers. We do not consider set up or transition fees paid upfront by our customers to represent a financing component, as such fees are required to encourage customer commitment to the project and protect us from early termination of the contract. Costs to Fulfill Recurring operating costs for contracts with customers are recognized as incurred. Certain eligible, nonrecurring costs incurred in the initial phases of our application maintenance, business process outsourcing and infrastructure services contracts (i.e. set-up or transition costs) are capitalized when such costs (1) relate directly to the contract, (2) generate or enhance resources of the Company that will be used in satisfying the performance obligation in the future, and (3) are expected to be recovered. These costs are expensed ratably over the estimated life of the customer relationship, including expected renewals. In determining the estimated life of the customer relationship, we evaluate the average contract term, on a portfolio basis by nature of the services to be provided, and apply judgment to evaluate the rate of technological and industry change. Capitalized amounts are monitored regularly for impairment. Impairment losses are recorded when projected remaining undiscounted operating cash flows are not sufficient to recover the carrying amount of the capitalized costs to fulfill. Trade Accounts Receivable and Contract Balances We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, we recognize a receivable for revenues related to our time and materials and transaction or volume-based contracts when earned regardless of whether amounts have been billed. We present such receivables in Trade accounts receivable, net in our consolidated statements of financial position at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other applicable factors. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets are presented in Other current assets in our consolidated statements of financial position and primarily relate to unbilled amounts on fixed-price contracts utilizing the cost to cost method of revenue recognition. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Effect of New Accounting Pronouncements | The following tables compare the financial statement line items materially affected by the adoption of the New Revenue Standard as of and for the three and six months ended June 30, 2018 to the pro-forma amounts had the previous guidance been in effect, or Pro-forma Amounts: June 30, 2018 As Reported Pro-forma Amounts Impacts of the New Revenue Standard (in millions) Assets: Trade accounts receivable, net (1), (2) $ 3,204 $ 3,082 $ 122 Unbilled accounts receivable (1), (3) — 416 (416 ) Other current assets (2), (3) 852 534 318 Total current assets 24 Other noncurrent assets (4) 615 565 50 Total assets $ 74 Liabilities: Deferred revenue (2) $ 308 $ 451 $ (143 ) Total current liabilities (143 ) Deferred revenue, noncurrent (2) 77 86 (9 ) Deferred income tax liabilities, net (5) 145 95 50 Total liabilities (102 ) Stockholders’ equity: Retained earnings 10,681 10,505 176 Total stockholders’ equity 176 Total liabilities and stockholders’ equity $ 74 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Reported Pro-forma Amounts Impacts of the New Revenue Standard As Reported Pro-forma Amounts Impacts of the New Revenue Standard (in millions) (in millions) Revenues (2) $ 4,006 $ 3,975 $ 31 $ 7,918 $ 7,866 $ 52 Cost of revenues (4) 2,417 2,424 (7 ) 4,818 4,833 (15 ) Selling, general and administrative expenses 805 805 — 1,516 1,516 — Depreciation and amortization expense 114 114 — 221 221 — Income from operations 670 632 38 1,363 1,296 67 Other income (expense), net (47 ) (47 ) — (43 ) (43 ) — Income before provision for income taxes (5) 623 585 38 1,320 1,253 67 Provision for income taxes (168 ) (161 ) (7 ) (345 ) (332 ) (13 ) Income (loss) from equity method investment 1 1 — 1 1 — Net income $ 456 $ 425 $ 31 $ 976 $ 922 $ 54 Basic earnings per share $ 0.78 $ 0.73 $ 0.05 $ 1.67 $ 1.57 $ 0.10 Diluted earnings per share $ 0.78 $ 0.73 $ 0.05 $ 1.66 $ 1.57 $ 0.09 (1) Reflects the reclassification of balances representing receivables, as defined by the New Revenue Standard, from Unbilled accounts receivable to Trade accounts receivable, net. (2) Reflects the impact of changes in the method used to measure progress on our fixed-price application maintenance, consulting and business process services contracts and the timing of revenue recognition and allocation of purchase price on our software license contracts. (3) Reflects the reclassification of balances representing contract assets, as defined by the New Revenue Standard, from Unbilled accounts receivable to Other current assets. (4) Reflects the impact of a longer period of amortization for costs to fulfill a contract. (5) Reflects the income tax impact of the above items. |
Capitalized Costs to Fulfill Contract with Customer | The following table presents information related to the capitalized costs to fulfill, such as set-up or transition activities, for the six months ended June 30, 2018 . Costs to obtain contracts were immaterial for the periods disclosed. Costs to Fulfill (in millions) Balance - January 1, 2018 $ 303 Amortization expense (32 ) Costs capitalized 85 Other (3 ) Balance - June 30, 2018 $ 353 |
Contract with Customer, Asset and Liability | The table below shows significant movements in contract assets: Contract Assets (in millions) Balance - January 1, 2018 $ 306 Revenues recognized during the period but not billed 259 Amounts reclassified to accounts receivable (247 ) Balance - June 30, 2018 $ 318 The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the period disclosed: Deferred Revenue (in millions) Balance - January 1, 2018 $ 431 Amounts billed but not recognized as revenues 119 Revenues recognized related to the opening balance of deferred revenue (163 ) Other (2 ) Balance - June 30, 2018 $ 385 |
Disaggregation of Revenue | The table below presents disaggregated revenues from contracts with customers by customer location, service line and contract-type for each of our business segments. We believe this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors. Three Months Ended June 30, 2018 Financial Services Healthcare Products and Resources Communications, Media and Technology Total (in millions) Revenues Geography: North America $ 1,056 $ 1,060 $ 585 $ 366 $ 3,067 United Kingdom 114 22 89 84 309 Rest of Europe 165 61 109 46 381 Europe - Total 279 83 198 130 690 Rest of World 134 13 57 45 249 Total $ 1,469 $ 1,156 $ 840 $ 541 $ 4,006 Service line: Consulting and technology services $ 885 $ 613 $ 499 $ 289 $ 2,286 Outsourcing services 584 543 341 252 1,720 Total $ 1,469 $ 1,156 $ 840 $ 541 $ 4,006 Type of contract: Time and materials $ 953 $ 452 $ 379 $ 335 $ 2,119 Fixed-price 460 443 367 179 1,449 Transaction or volume-based 56 261 94 27 438 Total $ 1,469 $ 1,156 $ 840 $ 541 $ 4,006 Six Months Ended June 30, 2018 Financial Services Healthcare Products and Resources Communications, Media and Technology Total (in millions) Revenues Geography: North America $ 2,100 $ 2,083 $ 1,157 $ 702 $ 6,042 United Kingdom 230 45 176 168 619 Rest of Europe 327 122 218 88 755 Europe - Total 557 167 394 256 1,374 Rest of World 273 27 110 92 502 Total $ 2,930 $ 2,277 $ 1,661 $ 1,050 $ 7,918 Service line: Consulting and technology services $ 1,756 $ 1,251 $ 980 $ 567 $ 4,554 Outsourcing services 1,174 1,026 681 483 3,364 Total $ 2,930 $ 2,277 $ 1,661 $ 1,050 $ 7,918 Type of contract: Time and materials $ 1,888 $ 900 $ 748 $ 641 $ 4,177 Fixed-price 931 954 728 358 2,971 Transaction or volume-based 111 423 185 51 770 Total $ 2,930 $ 2,277 $ 1,661 $ 1,050 $ 7,918 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Series of Individually Immaterial Business Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The allocations of purchase price to the fair value of the aggregate assets acquired and liabilities assumed were as follows: Six Months Ended Fair Value Weighted Average Useful Life (in millions) Cash $ 10 Current assets 37 Property, plant and equipment and other noncurrent assets 10 Non-deductible goodwill (1) 340 Customer relationship intangible assets 123 9.7 years Other intangible assets 26 2.4 years Current liabilities (15 ) Noncurrent liabilities (39 ) Purchase price $ 492 (1) The primary items that generated goodwill are the value of the acquired assembled workforces and synergies between the acquired companies and us, neither of which qualify as an amortizable intangible asset. |
Realignment Charges (Tables)
Realignment Charges (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Realignment Charges [Abstract] | |
Realignment Charges | Realignment charges were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Employee separations $ — $ 37 $ — $ 39 Advisory fees — 1 — 10 Lease termination costs — 1 1 1 Total realignment costs $ — $ 39 $ 1 $ 50 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Investments [Line Items] | |
Investments | Our investments were as follows: June 30, 2018 December 31, 2017 (in millions) Short-term investments: Equity investment securities $ 25 $ 25 Available-for-sale investment securities 1,862 1,972 Held-to-maturity investment securities 987 745 Time deposits 472 (1) 389 Total short-term investments $ 3,346 $ 3,131 Long-term investments: Equity and cost method investments $ 74 $ 74 Held-to-maturity investment securities 6 161 Total long-term investments $ 80 $ 235 |
Available-for-sale Securities [Member] | |
Schedule of Investments [Line Items] | |
Unrealized Gain (Loss) on Investments | The amortized cost, gross unrealized gains and losses and fair value of available-for-sale investment securities at June 30, 2018 were as follows: Amortized Cost Unrealized Gains Unrealized Losses Fair (in millions) U.S. Treasury and agency debt securities $ 647 $ — $ (10 ) $ 637 Corporate and other debt securities 440 — (5 ) 435 Certificates of deposit and commercial paper 377 — — 377 Asset-backed securities 306 — (3 ) 303 Municipal debt securities 111 — (1 ) 110 Total available-for-sale investment securities $ 1,881 $ — $ (19 ) $ 1,862 The amortized cost, gross unrealized gains and losses and fair value of available-for-sale investment securities at December 31, 2017 were as follows: Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in millions) U.S. Treasury and agency debt securities $ 667 $ — $ (6 ) $ 661 Corporate and other debt securities 439 — (2 ) 437 Certificates of deposit and commercial paper 450 — — 450 Asset-backed securities 297 — (2 ) 295 Municipal debt securities 130 — (1 ) 129 Total available-for-sale investment securities $ 1,983 $ — $ (11 ) $ 1,972 |
Securities in Continuous Unrealized Loss Positions | The fair value and related unrealized losses of available-for-sale investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of June 30, 2018 : Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) U.S. Treasury and agency debt securities $ 517 $ (8 ) $ 86 $ (2 ) $ 603 $ (10 ) Corporate and other debt securities 321 (4 ) 97 (1 ) 418 (5 ) Certificates of deposit and commercial paper 99 — — — 99 — Asset-backed securities 212 (2 ) 78 (1 ) 290 (3 ) Municipal debt securities 86 (1 ) 16 — 102 (1 ) Total $ 1,235 $ (15 ) $ 277 $ (4 ) $ 1,512 $ (19 ) The fair value and related unrealized losses of available-for-sale investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of December 31, 2017 : Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) U.S. Treasury and agency debt securities $ 519 $ (4 ) $ 124 $ (2 ) $ 643 $ (6 ) Corporate and other debt securities 297 (1 ) 126 (1 ) 423 (2 ) Certificates of deposit and commercial paper 49 — — — 49 — Asset-backed securities 193 (1 ) 94 (1 ) 287 (2 ) Municipal debt securities 107 (1 ) 18 — 125 (1 ) Total $ 1,165 $ (7 ) $ 362 $ (4 ) $ 1,527 $ (11 ) |
Contractual Maturities | The contractual maturities of our fixed income available-for-sale investment securities as of June 30, 2018 are set forth in the following table: Amortized Cost Fair Value (in millions) Due within one year $ 536 $ 535 Due after one year up to two years 526 518 Due after two years up to three years 468 461 Due after three years 45 45 Asset-backed securities 306 303 Total available-for-sale investment securities $ 1,881 $ 1,862 |
Schedule of Realized Gain (Loss) | Proceeds from sales of available-for-sale investment securities and the gross gains and losses that have been included in earnings as a result of those sales were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Proceeds from sales of available-for-sale investment securities $ 434 $ 397 $ 559 $ 1,645 Gross gains $ — $ — $ — $ 1 Gross losses (1 ) — (2 ) (1 ) Net realized (losses) on sales of available-for-sale investment securities $ (1 ) $ — $ (2 ) $ — |
Held-to-maturity Securities [Member] | |
Schedule of Investments [Line Items] | |
Unrealized Gain (Loss) on Investments | The amortized cost, gross unrealized gains and losses and fair value of held-to-maturity investment securities at June 30, 2018 were as follows: Amortized Unrealized Unrealized Fair (in millions) Short-term investments: Corporate and other debt securities $ 599 $ — $ (2 ) $ 597 Commercial paper 388 — (1 ) 387 Total short-term held-to-maturity investments 987 — (3 ) 984 Long-term investments: Corporate and other debt securities 6 — — 6 Total held-to-maturity investment securities $ 993 $ — $ (3 ) $ 990 The amortized cost, gross unrealized gains and losses and fair value of held-to-maturity investment securities at December 31, 2017 were as follows: Amortized Unrealized Unrealized Fair (in millions) Short-term investments: Corporate and other debt securities $ 346 $ — $ (1 ) $ 345 Commercial paper 399 — (2 ) 397 Total short-term held-to-maturity investments 745 — (3 ) 742 Long-term investments: Corporate and other debt securities 161 — (1 ) 160 Total held-to-maturity investment securities $ 906 $ — $ (4 ) $ 902 |
Securities in Continuous Unrealized Loss Positions | The fair value and related unrealized losses of held-to-maturity investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of June 30, 2018 : Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) Corporate and other debt securities $ 485 $ (2 ) $ 31 $ — $ 516 $ (2 ) Commercial paper 387 (1 ) — — 387 (1 ) Total $ 872 $ (3 ) $ 31 $ — $ 903 $ (3 ) The fair value and related unrealized losses of held-to-maturity investment securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer were as follows as of December 31, 2017 : Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in millions) Corporate and other debt securities $ 473 $ (2 ) $ — $ — $ 473 $ (2 ) Commercial paper 394 (2 ) — — 394 (2 ) Total $ 867 $ (4 ) $ — $ — $ 867 $ (4 ) |
Contractual Maturities | The contractual maturities of our fixed income held-to-maturity investment securities as of June 30, 2018 are set forth in the following table: Amortized Cost Fair Value (in millions) Due within one year $ 987 $ 984 Due after two years 6 6 Total held-to-maturity investment securities $ 993 $ 990 |
Accrued Expenses And Other Cu28
Accrued Expenses And Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities were as follows: June 30, 2018 December 31, 2017 (in millions) Compensation and benefits $ 928 $ 1,272 Income taxes 174 48 Professional fees 113 100 Travel and entertainment 45 32 Customer volume and other incentives 312 289 Derivative financial instruments 18 5 Other 322 325 Total accrued expenses and other current liabilities $ 1,912 $ 2,071 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Short-term Debt | The following summarizes our short-term debt balances as of: June 30, 2018 December 31, 2017 (in millions) Notes outstanding under revolving credit facility $ — $ 75 Term loan - current maturities 100 100 Total short-term debt $ 100 $ 175 |
Summary of Long-term Debt | The following summarizes our long-term debt balances as of: June 30, 2018 December 31, 2017 (in millions) Term loan, due November 2019 $ 750 $ 800 Less: Current maturities (100 ) (100 ) Deferred financing costs (1 ) (2 ) Long-term debt, net of current maturities $ 649 $ 698 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Effective Income Tax Rates | Our effective income tax rates were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Effective income tax rate 27.0 % 26.0 % 26.1 % 20.0 % |
Derivative Financial Instrume31
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Location And Fair Values Of Derivative Financial Instruments In Our Condensed Consolidated Statements Of Financial Position | The following table provides information on the location and fair values of derivative financial instruments included in our unaudited consolidated statements of financial position as of: June 30, 2018 December 31, 2017 Designation of Derivatives Location on Statements of Financial Position Assets Liabilities Assets Liabilities (in millions) Foreign exchange forward contracts – Designated as cash flow hedging instruments Other current assets $ 36 $ — $ 134 $ — Other noncurrent assets — — 20 — Accrued expenses and other current liabilities — 18 — — Other noncurrent liabilities — 25 — — Total 36 43 154 — Foreign exchange forward contracts – Not designated as hedging instruments Other current assets 4 — — — Accrued expenses and other current liabilities — — — 5 Total 4 — — 5 Total $ 40 $ 43 $ 154 $ 5 |
Notional value of outstanding contracts by year of maturity | The notional value of our outstanding contracts by year of maturity and the net unrealized gains included in accumulated other comprehensive income (loss) for such contracts were as follows as of: June 30, 2018 December 31, 2017 (in millions) 2018 $ 690 $ 1,185 2019 1,050 720 2020 315 — Total notional value of contracts outstanding $ 2,055 $ 1,905 Net unrealized (losses) gains included in accumulated other comprehensive income (loss), net of taxes $ (8 ) $ 115 |
Location And Amounts Of Pre-Tax Gains (Losses) on Cash Flow Hedges | The following table provides information on the location and amounts of pre-tax gains on our cash flow hedges for the three months ended June 30 : Change in Derivative Gains/Losses Recognized in Accumulated Other Comprehensive Income (Loss) (effective portion) Location of Net Derivative Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) Net Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) 2018 2017 2018 2017 (in millions) Foreign exchange forward contracts – Designated as cash flow hedging instruments $ (91 ) $ 35 Cost of revenues $ 18 $ 29 Selling, general and administrative expenses 3 6 Total $ 21 $ 35 The following table provides information on the location and amounts of pre-tax gains on our cash flow hedges for the six months ended June 30 : Change in Derivative Gains/Losses Recognized in Accumulated Other Comprehensive Income (Loss) (effective portion) Location of Net Derivative Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) Net Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) 2018 2017 2018 2017 (in millions) Foreign exchange forward contracts – Designated as cash flow hedging instruments $ (105 ) $ 159 Cost of revenues $ 48 $ 46 Selling, general and administrative expenses 8 9 Total $ 56 $ 55 |
Additional Information Related To Outstanding Contracts Not Designated As Hedging Instruments | Additional information related to our outstanding foreign exchange forward contracts not designated as hedging instruments is as follows: June 30, 2018 December 31, 2017 Notional Fair Value Notional Fair Value (in millions) Contracts outstanding $ 432 $ 4 $ 255 $ (5 ) |
Location And Amounts Of Pre-Tax Gains (Losses) On Derivative Financial Instruments Not Designated As Hedges | The following table provides information on the location and amounts of realized and unrealized pre-tax gains and losses on our other derivative financial instruments for the three and six months ended June 30 : Location of Net Gains (Losses) on Derivative Instruments Amount of Net Gains (Losses) on Derivative Instruments Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Foreign exchange forward contracts – Not designated as hedging instruments Foreign currency exchange gains (losses), net $ 18 $ (3 ) $ 20 $ (13 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And (Liabilities) Measured At Fair Value On A Recurring Basis | The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of June 30, 2018 : Level 1 Level 2 Level 3 Total (in millions) Cash equivalents: Money market funds $ 300 $ — $ — $ 300 Certificates of deposit and commercial paper — 81 — 81 Total cash equivalents 300 81 — 381 Short-term investments: Time deposits (1) — 472 — 472 Available-for-sale investment securities: U.S. Treasury and agency debt securities 572 65 — 637 Corporate and other debt securities — 435 — 435 Certificates of deposit and commercial paper — 377 — 377 Asset-backed securities — 303 — 303 Municipal debt securities — 110 — 110 Total available-for-sale investment securities 572 1,290 — 1,862 Held-to-maturity investment securities: Commercial paper — 387 — 387 Corporate and other debt securities — 597 — 597 Total short-term held-to-maturity investment securities — 984 — 984 Total short-term investments (2) 572 2,746 — 3,318 Long-term investments: Held-to-maturity investment securities: Corporate and other debt securities — 6 — 6 Total long-term held-to-maturity investment securities — 6 — 6 Total long-term investments (3) — 6 — 6 Derivative financial instruments - foreign exchange forward contracts: Other current assets — 40 — 40 Accrued expenses and other current liabilities — (18 ) — (18 ) Other noncurrent liabilities — (25 ) — (25 ) Total $ 872 $ 2,830 $ — $ 3,702 (1) Includes $419 million in restricted time deposits. See Note 9 . (2) Excludes an equity security invested in a mutual fund valued at $25 million based on the NAV of the fund. (3) Excludes equity and cost method investments of $74 million , which are accounted for using the equity method of accounting and at cost, respectively. The following table summarizes our financial assets and (liabilities) measured at fair value on a recurring basis as of December 31, 2017 : Level 1 Level 2 Level 3 Total (in millions) Cash equivalents: Money market funds $ 334 $ — $ — $ 334 Bank deposits — 80 — 80 Commercial paper — 386 — 386 Total cash equivalents 334 466 — 800 Short-term investments: Time deposits — 389 — 389 Available-for-sale investment securities: U.S. Treasury and agency debt securities 585 76 — 661 Corporate and other debt securities — 437 — 437 Certificates of deposit and commercial paper — 450 — 450 Asset-backed securities — 295 — 295 Municipal debt securities — 129 — 129 Total available-for-sale investment securities 585 1,387 — 1,972 Held-to-maturity investment securities: Commercial paper — 397 — 397 Corporate and other debt securities — 345 — 345 Total held-to-maturity investment securities — 742 — 742 Total short-term investments (1) 585 2,518 — 3,103 Long-term investments: Held-to-maturity investment securities: Corporate and other debt securities — 160 — 160 Total held-to-maturity investment securities — 160 — 160 Total long-term investments (2) — 160 — 160 Derivative financial instruments - foreign exchange forward contracts: Other current assets — 134 — 134 Accrued expenses and other current liabilities — (5 ) — (5 ) Other noncurrent assets — 20 — 20 Total $ 919 $ 3,293 $ — $ 4,212 (1) Excludes an equity security invested in a mutual fund valued at $25 million based on the NAV of the fund. (2) Excludes equity and cost method investments of $74 million , which are accounted for using the equity method of accounting and at cost, respectively. |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accelerated Share Repurchases [Line Items] | |
Accelerated Share Repurchases [Table Text Block] | Stock Repurchase Program We have entered into multiple accelerated stock repurchase agreements, or ASRs, under our stock repurchase program authorized by our Board of Directors. The ASR activity and related information during the six months ended June 30, 2018 and the year ended December 31, 2017 were as follows: Purchase Period End Date Number of Shares Average Repurchase Price per Share ASR Amount (in millions) (in millions) June 2018 ASR (1) 6.5 (1) (1) $ 600 March 2018 ASR May 2018 3.7 (2) $ 79.95 $ 300 December 2017 ASR March 2018 4.0 (3) $ 75.75 $ 300 March 2017 ASR August 2017 23.7 $ 63.19 $ 1,500 ___________________ (1) Under the terms of the June 2018 ASR and in exchange for up-front payments of $600 million , the financial institution initially delivered 6.5 million shares, a portion of the Company's total expected shares to be repurchased under the June 2018 ASR. The total number of shares ultimately delivered, and therefore the average price paid per share, will be determined at the end of the purchase period, which is scheduled to end during the third quarter of 2018, based on the volume-weighted average price of the Company's common stock during that period. (2) Includes 3.0 million shares initially delivered in March 2018 and 0.7 million shares delivered in May 2018 upon the final settlement of the ASR. (3) Includes 3.6 million shares initially delivered in December 2017 and 0.4 million shares delivered in March 2018 upon the final settlement of the ASR. |
Dividends Declared | Dividends on our Class A common stock, including dividend equivalents, during the periods presented were as follows: Dividends per Share Amount (in millions) 2018: Three months ended March 31, 2018 $ 0.20 $ 119 Three months ended June 30, 2018 0.20 119 Six months ended June 30, 2018 $ 238 2017: Three months ended June 30, 2017 $ 0.15 $ 89 Three months ended September 30, 2017 0.15 90 Three months ended December 31, 2017 0.15 89 Year ended December 31, 2017 $ 268 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by component were as follows for the three and six months ended June 30, 2018 : Three Months Six Months Before Tax Amount Tax Effect Net of Tax Amount Before Tax Tax Net of Tax (in millions) Foreign currency translation adjustments: Beginning balance $ 3 $ (4 ) $ (1 ) $ (38 ) $ — $ (38 ) Change in foreign currency translation adjustments (82 ) 11 (71 ) (41 ) 7 (34 ) Ending balance $ (79 ) $ 7 $ (72 ) $ (79 ) $ 7 $ (72 ) Unrealized (losses) on available-for-sale investment securities: Beginning balance $ (19 ) $ 4 $ (15 ) $ (11 ) $ 4 $ (7 ) Cumulative effect of change in accounting principle (1) — — — — (1 ) (1 ) Net unrealized (losses) arising during the period (1 ) 1 — (10 ) 2 (8 ) Reclassification of net losses to Other, net 1 — 1 2 — 2 Net change — 1 1 (8 ) 1 (7 ) Ending balance $ (19 ) $ 5 $ (14 ) $ (19 ) $ 5 $ (14 ) Unrealized gains on cash flow hedges: Beginning balance $ 105 $ (26 ) $ 79 $ 154 $ (39 ) $ 115 Unrealized (losses) arising during the period (91 ) 19 (72 ) (105 ) 24 (81 ) Reclassifications of net (gains) to: Cost of revenues (18 ) 5 (13 ) (48 ) 12 (36 ) Selling, general and administrative expenses (3 ) 1 (2 ) (8 ) 2 (6 ) Net change (112 ) 25 (87 ) (161 ) 38 (123 ) Ending balance $ (7 ) $ (1 ) $ (8 ) $ (7 ) $ (1 ) $ (8 ) Accumulated other comprehensive income (loss): Beginning balance $ 89 $ (26 ) $ 63 $ 105 $ (35 ) $ 70 Other comprehensive income (loss) (194 ) 37 (157 ) (210 ) 46 (164 ) Ending balance $ (105 ) $ 11 $ (94 ) $ (105 ) $ 11 $ (94 ) (1) Reflects the adoption of accounting standards as described in Note 1 . Changes in accumulated other comprehensive income (loss) by component were as follows for the three and six months ended June 30, 2017 : Three Months Six Months Before Tax Amount Tax Effect Net of Tax Amount Before Tax Tax Net of Tax (in millions) Foreign currency translation adjustments: Beginning balance $ (132 ) $ — $ (132 ) $ (149 ) $ — $ (149 ) Change in foreign currency translation adjustments 50 — 50 67 — 67 Ending balance $ (82 ) $ — $ (82 ) $ (82 ) $ — $ (82 ) Unrealized gains (losses) on available-for-sale investment securities: Beginning balance $ (4 ) $ 1 $ (3 ) $ (6 ) $ 2 $ (4 ) Net unrealized gains arising during the period 1 — 1 3 (1 ) 2 Reclassification of net (gains) to Other, net — — — — — — Net change 1 — 1 3 (1 ) 2 Ending balance $ (3 ) $ 1 $ (2 ) $ (3 ) $ 1 $ (2 ) Unrealized gains on cash flow hedges: Beginning balance $ 155 $ (37 ) $ 118 $ 51 $ (12 ) $ 39 Unrealized gains arising during the period 35 (9 ) 26 159 (39 ) 120 Reclassifications of net (gains) to: Cost of revenues (29 ) 7 (22 ) (46 ) 11 (35 ) Selling, general and administrative expenses (6 ) 1 (5 ) (9 ) 2 (7 ) Net change — (1 ) (1 ) 104 (26 ) 78 Ending balance $ 155 $ (38 ) $ 117 $ 155 $ (38 ) $ 117 Accumulated other comprehensive income (loss): Beginning balance $ 19 $ (36 ) $ (17 ) $ (104 ) $ (10 ) $ (114 ) Other comprehensive income (loss) 51 (1 ) 50 174 (27 ) 147 Ending balance $ 70 $ (37 ) $ 33 $ 70 $ (37 ) $ 33 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Revenues From External Customers And Segment Operating Profit | Revenues from external customers and segment operating profits, before unallocated expenses, by reportable segment were as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Revenues: Financial Services $ 1,469 $ 1,406 $ 2,930 $ 2,782 Healthcare 1,156 1,050 2,277 2,053 Products and Resources 840 747 1,661 1,484 Communications, Media and Technology 541 467 1,050 897 Total revenues $ 4,006 $ 3,670 $ 7,918 $ 7,216 Segment Operating Profit: Financial Services $ 462 $ 445 $ 909 $ 872 Healthcare 357 345 695 619 Products and Resources 258 230 514 447 Communications, Media and Technology 179 156 338 291 Total segment operating profit 1,256 1,176 2,456 2,229 Less: unallocated costs (1) 586 570 1,093 1,053 Income from operations $ 670 $ 606 $ 1,363 $ 1,176 ________________ (1) In the second quarter of 2018, we provided $100 million of initial funding to Cognizant U.S. Foundation, which is focused on science, technology, engineering and math (or collectively, STEM) education in the United States. This charge was recorded in unallocated costs for the three and six months ended June 30, 2018. |
Revenues And Long-Lived Assets By Geographic Area | Revenue and long-lived assets, by geographic area, are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Revenues: (1) North America (2) $ 3,067 $ 2,851 $ 6,042 $ 5,612 United Kingdom 309 288 619 562 Rest of Europe 381 291 755 576 Europe - Total 690 579 1,374 1,138 Rest of World (3) 249 240 502 466 Total revenues $ 4,006 $ 3,670 $ 7,918 $ 7,216 As of June 30, 2018 December 31, 2017 (in millions) Long-lived Assets: (4) North America (2) $ 403 $ 360 Europe 82 63 Rest of World (3)(5) 860 901 Total $ 1,345 $ 1,324 ________________ (1) Revenues are attributed to regions based upon customer location. (2) Substantially all relates to operations in the United States. (3) Includes our operations in Asia Pacific, the Middle East and Latin America. (4) Long-lived assets include property and equipment, net of accumulated depreciation and amortization. (5) Substantially all of these long-lived assets relate to our operations in India. |
Interim Consolidated Financia35
Interim Consolidated Financial Statements (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (121) | |
Operating Leases, Future Minimum Payments Due | $ 943 | |
Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | (122) | |
Retained Earnings [Member] | Adjustments for New Accounting Principle, Early Adoption [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | (1) | |
Accumulated other comprehensive income (loss): | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1 | |
Accumulated other comprehensive income (loss): | Adjustments for New Accounting Principle, Early Adoption [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1 |
Internal Investigation and Re36
Internal Investigation and Related Matters (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||||
Selling, general and administrative expenses | $ 805 | $ 709 | $ 1,516 | $ 1,395 | |
Internal Investigation and Related Matters [Member] | |||||
Loss Contingencies [Line Items] | |||||
Potential Improper Payments | 6 | 6 | |||
Potential Improper Payments Remaining Under Investigation | $ 2 | $ 2 | |||
Out of period adjustment [Member] | Internal Investigation and Related Matters [Member] | |||||
Loss Contingencies [Line Items] | |||||
Selling, general and administrative expenses | $ 4 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect | $ 121 |
Retained Earnings [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect | 122 |
Accounting Standards Update 2014-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax impact | 37 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect | $ 121 |
Revenues - Schedule of Effect o
Revenues - Schedule of Effect of New Accounting Pronouncements on Affected Financial Position Line Items (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||||
Trade accounts receivable, net | $ 3,204 | $ 2,865 | ||
Unbilled accounts receivable | 0 | 357 | ||
Other current assets | 852 | 833 | ||
Total current assets | 8,303 | 9,111 | ||
Other noncurrent assets | 615 | 448 | ||
Total assets | 14,806 | 15,221 | ||
Liabilities: | ||||
Deferred revenue | 308 | 383 | ||
Total current liabilities | 2,537 | 2,839 | ||
Deferred revenue, noncurrent | 77 | 104 | ||
Deferred income tax liabilities, net | 145 | 146 | ||
Total liabilities | 4,158 | 4,552 | ||
Stockholders’ equity: | ||||
Retained earnings | 10,681 | 10,544 | ||
Total stockholders’ equity | 10,648 | 10,669 | $ 10,483 | $ 10,728 |
Total liabilities and stockholders’ equity | 14,806 | $ 15,221 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Assets: | ||||
Trade accounts receivable, net | 3,082 | |||
Unbilled accounts receivable | 416 | |||
Other current assets | 534 | |||
Other noncurrent assets | 565 | |||
Liabilities: | ||||
Deferred revenue | 451 | |||
Deferred revenue, noncurrent | 86 | |||
Deferred income tax liabilities, net | 95 | |||
Stockholders’ equity: | ||||
Retained earnings | 10,505 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Assets: | ||||
Trade accounts receivable, net | 122 | |||
Unbilled accounts receivable | (416) | |||
Other current assets | 318 | |||
Total current assets | 24 | |||
Other noncurrent assets | 50 | |||
Total assets | 74 | |||
Liabilities: | ||||
Deferred revenue | (143) | |||
Total current liabilities | (143) | |||
Deferred revenue, noncurrent | (9) | |||
Deferred income tax liabilities, net | 50 | |||
Total liabilities | (102) | |||
Stockholders’ equity: | ||||
Retained earnings | 176 | |||
Total stockholders’ equity | 176 | |||
Total liabilities and stockholders’ equity | $ 74 |
Revenues - Schedule of Effect39
Revenues - Schedule of Effect of New Accounting Pronouncements on Affected Statement of Operations Line Items (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | $ 4,006 | $ 3,670 | $ 7,918 | $ 7,216 |
Cost of revenues | 2,417 | 2,261 | 4,818 | 4,455 |
Selling, general and administrative expenses | 805 | 709 | 1,516 | 1,395 |
Depreciation and amortization expense | 114 | 94 | 221 | 190 |
Income from operations | 670 | 606 | 1,363 | 1,176 |
Other income (expense), net | (47) | 29 | (43) | 108 |
Income before provision for income taxes | 623 | 635 | 1,320 | 1,284 |
Provision for income taxes | (168) | (165) | (345) | (257) |
Income from equity method investments | 1 | 0 | 1 | 0 |
Net income | $ 456 | $ 470 | $ 976 | $ 1,027 |
Basic earnings per share (usd per share) | $ 0.78 | $ 0.80 | $ 1.67 | $ 1.72 |
Diluted earnings per share (usd per share) | $ 0.78 | $ 0.80 | $ 1.66 | $ 1.71 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | $ 3,975 | $ 7,866 | ||
Cost of revenues | 2,424 | 4,833 | ||
Selling, general and administrative expenses | 805 | 1,516 | ||
Depreciation and amortization expense | 114 | 221 | ||
Income from operations | 632 | 1,296 | ||
Other income (expense), net | (47) | (43) | ||
Income before provision for income taxes | 585 | 1,253 | ||
Provision for income taxes | (161) | (332) | ||
Income from equity method investments | 1 | 1 | ||
Net income | $ 425 | $ 922 | ||
Basic earnings per share (usd per share) | $ 0.73 | $ 1.57 | ||
Diluted earnings per share (usd per share) | $ 0.73 | $ 1.57 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | $ 31 | $ 52 | ||
Cost of revenues | (7) | (15) | ||
Selling, general and administrative expenses | 0 | 0 | ||
Depreciation and amortization expense | 0 | 0 | ||
Income from operations | 38 | 67 | ||
Other income (expense), net | 0 | 0 | ||
Income before provision for income taxes | 38 | 67 | ||
Provision for income taxes | (7) | (13) | ||
Income from equity method investments | 0 | 0 | ||
Net income | $ 31 | $ 54 | ||
Basic earnings per share (usd per share) | $ 0.05 | $ 0.10 | ||
Diluted earnings per share (usd per share) | $ 0.05 | $ 0.09 |
Revenues - Capitalized Costs to
Revenues - Capitalized Costs to Fulfill Contract with Customer (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Capitalized Contract Cost, Net | $ 353 | $ 303 |
Amortization expense | (32) | |
Costs capitalized | 85 | |
Other | $ (3) |
Revenues - Significant Movement
Revenues - Significant Movements in Contract Assets (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance - January 1, 2018 | $ 306 |
Revenues recognized during the period but not billed | 259 |
Amounts reclassified to accounts receivable | (247) |
Balance - June 30, 2018 | $ 318 |
Revenues - Significant Moveme42
Revenues - Significant Movements in Deferred Revenue Balances (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance - January 1, 2018 | $ 431 |
Amounts billed but not recognized as revenues | 119 |
Revenues recognized related to the opening balance of deferred revenue | (163) |
Other | (2) |
Balance - June 30, 2018 | $ 385 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligations Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation | $ 1,595 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 64.00% |
Revenue, remaining performance obligation, period | 2 years |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 4,006 | $ 7,918 |
Time-and-materials Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,119 | 4,177 |
Fixed-price Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,449 | 2,971 |
Transaction Or Volume-Based [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 438 | 770 |
North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,067 | 6,042 |
UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 309 | 619 |
Europe, excluding United Kingdom [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 381 | 755 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 690 | 1,374 |
Rest of World [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 249 | 502 |
Consulting And Technology Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,286 | 4,554 |
Outsourcing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,720 | 3,364 |
Financial Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,469 | 2,930 |
Financial Services [Member] | Time-and-materials Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 953 | 1,888 |
Financial Services [Member] | Fixed-price Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 460 | 931 |
Financial Services [Member] | Transaction Or Volume-Based [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 56 | 111 |
Financial Services [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,056 | 2,100 |
Financial Services [Member] | UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 114 | 230 |
Financial Services [Member] | Europe, excluding United Kingdom [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 165 | 327 |
Financial Services [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 279 | 557 |
Financial Services [Member] | Rest of World [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 134 | 273 |
Financial Services [Member] | Consulting And Technology Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 885 | 1,756 |
Financial Services [Member] | Outsourcing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 584 | 1,174 |
Healthcare [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,156 | 2,277 |
Healthcare [Member] | Time-and-materials Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 452 | 900 |
Healthcare [Member] | Fixed-price Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 443 | 954 |
Healthcare [Member] | Transaction Or Volume-Based [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 261 | 423 |
Healthcare [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,060 | 2,083 |
Healthcare [Member] | UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 22 | 45 |
Healthcare [Member] | Europe, excluding United Kingdom [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 61 | 122 |
Healthcare [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 83 | 167 |
Healthcare [Member] | Rest of World [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13 | 27 |
Healthcare [Member] | Consulting And Technology Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 613 | 1,251 |
Healthcare [Member] | Outsourcing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 543 | 1,026 |
Products and Resources [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 840 | 1,661 |
Products and Resources [Member] | Time-and-materials Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 379 | 748 |
Products and Resources [Member] | Fixed-price Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 367 | 728 |
Products and Resources [Member] | Transaction Or Volume-Based [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 94 | 185 |
Products and Resources [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 585 | 1,157 |
Products and Resources [Member] | UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 89 | 176 |
Products and Resources [Member] | Europe, excluding United Kingdom [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 109 | 218 |
Products and Resources [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 198 | 394 |
Products and Resources [Member] | Rest of World [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 57 | 110 |
Products and Resources [Member] | Consulting And Technology Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 499 | 980 |
Products and Resources [Member] | Outsourcing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 341 | 681 |
Communication, Media and Technology [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 541 | 1,050 |
Communication, Media and Technology [Member] | Time-and-materials Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 335 | 641 |
Communication, Media and Technology [Member] | Fixed-price Contract [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 179 | 358 |
Communication, Media and Technology [Member] | Transaction Or Volume-Based [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 27 | 51 |
Communication, Media and Technology [Member] | North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 366 | 702 |
Communication, Media and Technology [Member] | UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 84 | 168 |
Communication, Media and Technology [Member] | Europe, excluding United Kingdom [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 46 | 88 |
Communication, Media and Technology [Member] | Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 130 | 256 |
Communication, Media and Technology [Member] | Rest of World [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 45 | 92 |
Communication, Media and Technology [Member] | Consulting And Technology Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 289 | 567 |
Communication, Media and Technology [Member] | Outsourcing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 252 | $ 483 |
Business Combinations Narrative
Business Combinations Narrative (Details) - Series of Individually Immaterial Business Acquisitions [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)business | |
Business Acquisition [Line Items] | |
Number of Businesses Acquired | business | 2 |
Business Combination, Consideration Transferred | $ | $ 492 |
Business Combinations Allocatio
Business Combinations Allocation of Purchase Price (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 3,036 | $ 2,704 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Cash | 10 | |
Current assets | 37 | |
Property, plant and equipment and other noncurrent assets | 10 | |
Goodwill | 340 | |
Current liabilities | 15 | |
Noncurrent liabilities | 39 | |
Purchase price | 492 | |
Customer Relationships [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets acquired | $ 123 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years 8 months | |
Other Intangible Assets [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets acquired | $ 26 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 5 months |
Realignment Charges (Details)
Realignment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Realignment Charges | $ 0 | $ 39 | $ 1 | $ 50 |
Employee separations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Realignment Charges | 0 | 37 | 0 | 39 |
Advisory fees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Realignment Charges | 0 | 1 | 0 | 10 |
Lease termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Realignment Charges | $ 0 | $ 1 | $ 1 | $ 1 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Investments [Abstract] | |||||
Equity investment securities | $ 25 | $ 25 | $ 25 | ||
Available-for-sale investment securities | 1,862 | 1,862 | 1,972 | ||
Held-to-maturity investment securities | 987 | 987 | 745 | ||
Time deposits | 472 | 472 | 389 | ||
Total short-term investments | 3,346 | 3,346 | 3,131 | ||
Equity and cost method investments | 74 | 74 | 74 | ||
Held-to-maturity investment securities | 6 | 6 | 161 | ||
Total long-term investments | 80 | 80 | $ 235 | ||
Restricted investments | 419 | 419 | |||
Trading Securities, Realized Gain (Loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Investments (Amortized Cost, Gr
Investments (Amortized Cost, Gross Unrealized Gains And Losses And Fair Value Of Investment Securities Available-For-Sale) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 1,881 | $ 1,983 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (19) | (11) |
Available-for-sale securities, current | 1,862 | 1,972 |
U.S. Treasury And Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 647 | 667 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (10) | (6) |
Available-for-sale securities, current | 637 | 661 |
Corporate And Other Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 440 | 439 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (5) | (2) |
Available-for-sale securities, current | 435 | 437 |
Certificates of Deposit and Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 377 | 450 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Available-for-sale securities, current | 377 | 450 |
Asset-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 306 | 297 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (2) |
Available-for-sale securities, current | 303 | 295 |
Municipal Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 111 | 130 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Available-for-sale securities, current | $ 110 | $ 129 |
Investments (Securities In A Co
Investments (Securities In A Continuous Unrealized Loss Position) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Short-term Investments [Table] [Line Items] | ||
Fair Value available-for-sale securities Less than 12 Months | $ 1,235 | $ 1,165 |
Unrealized losses, available-for-sale securities, Less than 12 Months | (15) | (7) |
Fair value available-for-sale securities 12 Months or More | 277 | 362 |
Unrealized losses, available-for-sale securities, 12 Months or More | (4) | (4) |
Total Fair Value available-for-sale securities | 1,512 | 1,527 |
Unrealized losses, available-for-sale securities, Total | (19) | (11) |
U.S. Treasury And Agency Debt Securities [Member] | ||
Schedule of Short-term Investments [Table] [Line Items] | ||
Fair Value available-for-sale securities Less than 12 Months | 517 | 519 |
Unrealized losses, available-for-sale securities, Less than 12 Months | (8) | (4) |
Fair value available-for-sale securities 12 Months or More | 86 | 124 |
Unrealized losses, available-for-sale securities, 12 Months or More | (2) | (2) |
Total Fair Value available-for-sale securities | 603 | 643 |
Unrealized losses, available-for-sale securities, Total | (10) | (6) |
Corporate And Other Debt Securities [Member] | ||
Schedule of Short-term Investments [Table] [Line Items] | ||
Fair Value available-for-sale securities Less than 12 Months | 321 | 297 |
Unrealized losses, available-for-sale securities, Less than 12 Months | (4) | (1) |
Fair value available-for-sale securities 12 Months or More | 97 | 126 |
Unrealized losses, available-for-sale securities, 12 Months or More | (1) | (1) |
Total Fair Value available-for-sale securities | 418 | 423 |
Unrealized losses, available-for-sale securities, Total | (5) | (2) |
Certificates of Deposit and Commercial Paper [Member] | ||
Schedule of Short-term Investments [Table] [Line Items] | ||
Fair Value available-for-sale securities Less than 12 Months | 99 | 49 |
Unrealized losses, available-for-sale securities, Less than 12 Months | 0 | 0 |
Fair value available-for-sale securities 12 Months or More | 0 | 0 |
Unrealized losses, available-for-sale securities, 12 Months or More | 0 | 0 |
Total Fair Value available-for-sale securities | 99 | 49 |
Unrealized losses, available-for-sale securities, Total | 0 | 0 |
Asset-Backed Securities [Member] | ||
Schedule of Short-term Investments [Table] [Line Items] | ||
Fair Value available-for-sale securities Less than 12 Months | 212 | 193 |
Unrealized losses, available-for-sale securities, Less than 12 Months | (2) | (1) |
Fair value available-for-sale securities 12 Months or More | 78 | 94 |
Unrealized losses, available-for-sale securities, 12 Months or More | (1) | (1) |
Total Fair Value available-for-sale securities | 290 | 287 |
Unrealized losses, available-for-sale securities, Total | (3) | (2) |
Municipal Debt Securities [Member] | ||
Schedule of Short-term Investments [Table] [Line Items] | ||
Fair Value available-for-sale securities Less than 12 Months | 86 | 107 |
Unrealized losses, available-for-sale securities, Less than 12 Months | (1) | (1) |
Fair value available-for-sale securities 12 Months or More | 16 | 18 |
Unrealized losses, available-for-sale securities, 12 Months or More | 0 | 0 |
Total Fair Value available-for-sale securities | 102 | 125 |
Unrealized losses, available-for-sale securities, Total | $ (1) | $ (1) |
Investments (Contractual Maturi
Investments (Contractual Maturities Of Investments In Debt Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due within one year, available-for-sale | $ 536 | |
Due within one year, held-to-maturity | 987 | |
Due after one year up to two years, available-for-sale | 526 | |
Due after two years up to three years, available-for-sale | 468 | |
Due after two years up to three years, held-to-maturity | 6 | |
Due after three years, available-for-sale | 45 | |
Asset-backed securities | 306 | |
Amortized Cost, available-for-sale | 1,881 | |
Amortized Cost, held-to-maturity | 993 | $ 906 |
Fair Value | ||
Due within one year, available-for-sale | 535 | |
Due within one year, held-to-maturity | 984 | |
Due after one year up to two years, available-for-sale | 518 | |
Due after two years up to three years, available-for-sale | 461 | |
Due after two years up to three years, held-to-maturity | 6 | |
Due after three years | 45 | |
Asset-backed securities | 303 | |
Fair Value, available-for-sale | 1,862 | |
Fair Value, held-to-maturity | $ 990 | $ 902 |
Investments (Gross Gains (Losse
Investments (Gross Gains (Losses) Realized On Sales, Maturities And Other Securities Transactions Related To Investment Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Investments [Abstract] | ||||
Proceeds from sales of available-for-sale investment securities | $ 434 | $ 397 | $ 559 | $ 1,645 |
Gross gains | 0 | 0 | 0 | 1 |
Gross losses | (1) | 0 | (2) | (1) |
Net realized gains on sales of available-for-sale investment securities | $ (1) | $ 0 | $ (2) | $ 0 |
Investments (Schedule of Held-t
Investments (Schedule of Held-to-Maturity Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost, Current | $ 987 | $ 745 |
Amortized Cost, Noncurrent | 6 | 161 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (4) |
Fair Value | 990 | 902 |
Amortized Cost, held-to-maturity | 993 | 906 |
Less than 12 Months, Fair Value | 872 | 867 |
Less than 12 Months, Unrealized Losses | (3) | (4) |
12 Months or More, Fair Value | 31 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Fair Value | 903 | 867 |
Unrealized Losses | (3) | (4) |
Corporate And Other Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | 485 | 473 |
Less than 12 Months, Unrealized Losses | (2) | (2) |
12 Months or More, Fair Value | 31 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Fair Value | 516 | 473 |
Unrealized Losses | (2) | (2) |
Commercial Paper [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 Months, Fair Value | 387 | 394 |
Less than 12 Months, Unrealized Losses | (1) | (2) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Fair Value | 387 | 394 |
Unrealized Losses | (1) | (2) |
Short-term Investments [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost, Current | 987 | 745 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (3) |
Fair Value | 984 | 742 |
Short-term Investments [Member] | Corporate And Other Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost, Current | 599 | 346 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (2) | (1) |
Fair Value | 597 | 345 |
Short-term Investments [Member] | Commercial Paper [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost, Current | 388 | 399 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (2) |
Fair Value | 387 | 397 |
Long-term investments [Member] | Corporate And Other Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost, Noncurrent | 6 | 161 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | $ 6 | $ 160 |
Accrued Expenses And Other Cu54
Accrued Expenses And Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 928 | $ 1,272 |
Income taxes | 174 | 48 |
Professional fees | 113 | 100 |
Travel and entertainment | 45 | 32 |
Customer volume and other incentives | 312 | 289 |
Derivative financial instruments | 18 | 5 |
Other | 322 | 325 |
Total accrued expenses and other current liabilities | $ 1,912 | $ 2,071 |
Debt (Additional Disclosures) (
Debt (Additional Disclosures) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2014 | |
Term Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal amount of debt | $ 1,000 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 750 | |
Period drawn notes have been outstanding | 90 days |
Debt (Short-term Debt) (Details
Debt (Short-term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Total short-term debt | $ 100 | $ 175 |
Revolving Credit Facility [Member] | ||
Short-term Debt [Line Items] | ||
Notes outstanding under revolving credit facility | 0 | 75 |
Term Loan [Member] | ||
Short-term Debt [Line Items] | ||
Term loan - current maturities | $ 100 | $ 100 |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt, net of current maturities | $ 649 | $ 698 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Term loan, due 2019 | 750 | 800 |
Current maturities | (100) | (100) |
Deferred financing costs | (1) | (2) |
Long-term debt, net of current maturities | $ 649 | $ 698 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ 617 | |
Previously unrecognized income tax benefits | $ 72 | |
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | 635 | |
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Foreign and U.S. State Tax Applicable Upon Repatriation of the Accumulated Undistributed Foreign Earnings, Provisional Income Tax Expense | 53 | |
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax Benefit | $ 71 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Tax Rate) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 27.00% | 26.00% | 26.10% | 20.00% |
Income Taxes (Narrative) (One-t
Income Taxes (Narrative) (One-time Transaction) (Details) $ in Millions, ₨ in Billions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
May 31, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2018INR (₨) | Apr. 03, 2018INR (₨) | Dec. 31, 2017USD ($) | |
One-time Transaction [Table] [Line Items] | ||||||||||
Income tax expense | $ 168 | $ 165 | $ 345 | $ 257 | ||||||
Restricted investments | 419 | 419 | ||||||||
Indian Income Tax Department (ITD) [Member] | Foreign tax authority [Member] | ||||||||||
One-time Transaction [Table] [Line Items] | ||||||||||
Deposits assets | $ 72 | $ 72 | ₨ 5 | |||||||
Desposits assets, percent disputed tax amount | 15.00% | 15.00% | 15.00% | |||||||
Restricted investments initially deposited | $ 410 | $ 410 | ||||||||
Restricted investments | 419 | 419 | ₨ 28 | $ 0 | ||||||
Indian Income Tax Department (ITD) [Member] | Foreign tax authority [Member] | 2016 India Cash Remittance [Member] | ||||||||||
One-time Transaction [Table] [Line Items] | ||||||||||
Foreign earnings repatriated | $ 2,800 | |||||||||
Income tax, disputed amount | $ 482 | $ 482 | ₨ 33 | |||||||
Income tax expense | $ 135 | |||||||||
Indian Income Tax Department (ITD) [Member] | Foreign tax authority [Member] | 2013 India Share Repurchase [Member] | ||||||||||
One-time Transaction [Table] [Line Items] | ||||||||||
Foreign earnings repatriated | $ 523 |
Derivative Financial Instrume61
Derivative Financial Instruments (Location And Fair Values Of Derivative Financial Instruments In Our Consolidated Statement Of Financial Position) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | $ 40 | $ 154 |
Derivative liabilities fair value | 43 | 5 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 36 | 154 |
Derivative liabilities fair value | 43 | 0 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 36 | 134 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 0 | 20 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities fair value | 18 | 0 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities fair value | 25 | 0 |
Other Derivatives [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 4 | 0 |
Derivative liabilities fair value | 0 | 5 |
Other Derivatives [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets fair value | 4 | 0 |
Other Derivatives [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities fair value | $ 0 | $ 5 |
Derivative Financial Instrume62
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash flow hedge gains expected to be reclassified to earnings within the next 12 months | $ 13 |
Cash flow hedge ineffectiveness is immaterial | Hedge ineffectiveness was immaterial for all periods presented. |
Derivative Financial Instrume63
Derivative Financial Instruments (Notional Value Of Outstanding Cash Flow Hedge Contracts By Year Of Maturity And Net Unrealized (Loss) Gain Included In Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Net unrealized (losses) gains included in accumulated other comprehensive income (loss), net of taxes | $ (8) | $ 115 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | 2,055 | 1,905 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward, Maturity 2018 [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | 690 | 1,185 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward, Maturity 2019 [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | 1,050 | 720 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward, Maturity 2020 [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Notional value of contracts outstanding | $ 315 | $ 0 |
Derivative Financial Instrume64
Derivative Financial Instruments (Location And Amounts Of Pre-Tax Gains (Losses) On Cash Flow Hedge Derivatives Financial Instruments) (Details) - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) | $ 21 | $ 35 | $ 56 | $ 55 |
Cost Of Revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) | 18 | 29 | 48 | 46 |
Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Gains Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (effective portion) | 3 | 6 | 8 | 9 |
Foreign Exchange Forward [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Derivative Gains/Losses Recognized in Accumulated Other Comprehensive Income (Loss) (effective portion) | $ (91) | $ 35 | $ (105) | $ 159 |
Derivative Financial Instrume65
Derivative Financial Instruments (Other Derivatives) (Details) - Not Designated as Hedging Instrument [Member] - Foreign Exchange Forward [Member] - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional | $ 432 | $ 255 |
Market Value | $ 4 | $ (5) |
Derivative Financial Instrume66
Derivative Financial Instruments (Location And Amounts Of Pre-Tax Gains (Losses) On Derivative Financial Instruments Not Designated As Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Foreign Currency Exchange Gains (Losses), net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of net gains (losses) on derivative instruments | $ 18 | $ (3) | $ 20 | $ (13) |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And (Liabilities) Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | $ 990 | $ 902 |
Trading securities | 25 | 25 |
Equity and Cost Method Investments | 74 | 74 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 381 | 800 |
Time deposits | 472 | 389 |
Available-for-sale investment securities | 1,862 | 1,972 |
Total | 3,702 | 4,212 |
Recurring [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 40 | 134 |
Recurring [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | (18) | (5) |
Recurring [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 20 | |
Recurring [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | (25) | |
Recurring [Member] | U.S. Treasury And Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 637 | 661 |
Recurring [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 435 | 437 |
Recurring [Member] | Certificates of Deposit and Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 377 | 450 |
Recurring [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 303 | 295 |
Recurring [Member] | Municipal Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 110 | 129 |
Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 300 | 334 |
Recurring [Member] | Bank Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 80 | |
Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 386 | |
Recurring [Member] | Certificates of Deposit and Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 81 | |
Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 300 | 334 |
Time deposits | 0 | 0 |
Available-for-sale investment securities | 572 | 585 |
Total | 872 | 919 |
Recurring [Member] | Level 1 [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 0 | |
Recurring [Member] | Level 1 [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | |
Recurring [Member] | Level 1 [Member] | U.S. Treasury And Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 572 | 585 |
Recurring [Member] | Level 1 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Certificates of Deposit and Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Municipal Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 300 | 334 |
Recurring [Member] | Level 1 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Recurring [Member] | Level 1 [Member] | Certificates of Deposit and Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 81 | 466 |
Time deposits | 472 | 389 |
Available-for-sale investment securities | 1,290 | 1,387 |
Total | 2,830 | 3,293 |
Recurring [Member] | Level 2 [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 40 | 134 |
Recurring [Member] | Level 2 [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | (18) | (5) |
Recurring [Member] | Level 2 [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 20 | |
Recurring [Member] | Level 2 [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | (25) | |
Recurring [Member] | Level 2 [Member] | U.S. Treasury And Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 65 | 76 |
Recurring [Member] | Level 2 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 435 | 437 |
Recurring [Member] | Level 2 [Member] | Certificates of Deposit and Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 377 | 450 |
Recurring [Member] | Level 2 [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 303 | 295 |
Recurring [Member] | Level 2 [Member] | Municipal Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 110 | 129 |
Recurring [Member] | Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Recurring [Member] | Level 2 [Member] | Bank Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 80 | |
Recurring [Member] | Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 386 | |
Recurring [Member] | Level 2 [Member] | Certificates of Deposit and Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 81 | |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Time deposits | 0 | 0 |
Available-for-sale investment securities | 0 | 0 |
Total | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Accrued Expenses And Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, assets | 0 | |
Recurring [Member] | Level 3 [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments, liabilities | 0 | |
Recurring [Member] | Level 3 [Member] | U.S. Treasury And Agency Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | |
Recurring [Member] | Level 3 [Member] | Certificates of Deposit and Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Municipal Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Recurring [Member] | Level 3 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Recurring [Member] | Level 3 [Member] | Certificates of Deposit and Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Short-term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 984 | 742 |
Short-term Investments [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 387 | 397 |
Short-term Investments [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 597 | 345 |
Short-term Investments [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 984 | 742 |
Investments | 3,318 | 3,103 |
Short-term Investments [Member] | Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 387 | 397 |
Short-term Investments [Member] | Recurring [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 597 | 345 |
Short-term Investments [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Investments | 572 | 585 |
Short-term Investments [Member] | Recurring [Member] | Level 1 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Short-term Investments [Member] | Recurring [Member] | Level 1 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Short-term Investments [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 984 | 742 |
Investments | 2,746 | 2,518 |
Short-term Investments [Member] | Recurring [Member] | Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 387 | 397 |
Short-term Investments [Member] | Recurring [Member] | Level 2 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 597 | 345 |
Short-term Investments [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Investments | 0 | 0 |
Short-term Investments [Member] | Recurring [Member] | Level 3 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Short-term Investments [Member] | Recurring [Member] | Level 3 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Long-term investments [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 6 | 160 |
Long-term investments [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 6 | 160 |
Investments | 6 | 160 |
Long-term investments [Member] | Recurring [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 6 | 160 |
Long-term investments [Member] | Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Investments | 0 | 0 |
Long-term investments [Member] | Recurring [Member] | Level 1 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Long-term investments [Member] | Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 6 | 160 |
Investments | 6 | 160 |
Long-term investments [Member] | Recurring [Member] | Level 2 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 6 | 160 |
Long-term investments [Member] | Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Investments | 0 | 0 |
Long-term investments [Member] | Recurring [Member] | Level 3 [Member] | Corporate And Other Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities, Fair Value | $ 0 | $ 0 |
Stockholder's Equity Share Repu
Stockholder's Equity Share Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 3,500 | |
Repurchases of common stock, Value | 949 | $ 1,544 |
Common Class A [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 800 | |
Share Repurchase Program, Stock-based Compensation Plan [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchases of common stock, Shares | 0.6 | 0.7 |
Repurchases of common stock, Value | $ 49 | $ 44 |
Retained Earnings [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchases of common stock, Value | $ 723 | $ 1,100 |
Stockholder's Equity Accelerate
Stockholder's Equity Accelerated Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | May 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | May 31, 2018 | Mar. 31, 2018 | Aug. 31, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 79.95 | $ 75.75 | $ 63.19 | ||||
June 2018 ASR [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Accelerated Share Repurchases, Number of Shares Delivered | 6.5 | ||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 600 | ||||||
March 2018 ASR [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Accelerated Share Repurchases, Number of Shares Delivered | 0 | 3 | 3.7 | ||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 300 | $ 300 | |||||
December 2017 ASR [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Accelerated Share Repurchases, Number of Shares Delivered | 0.4 | 3.6 | 4 | ||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 300 | ||||||
March 2017 ASR [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Accelerated Share Repurchases, Number of Shares Delivered | 23.7 | ||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 1,500 | $ 1,500 |
Stockholder's Equity Dividend (
Stockholder's Equity Dividend (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 02, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Dividends Payable [Line Items] | |||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.20 | $ 0.20 | $ 0.15 | $ 0.15 | $ 0.15 | ||||
Payments of Ordinary Dividends, Common Stock | $ 119 | $ 119 | $ 89 | $ 90 | $ 89 | $ 238 | $ 89 | $ 268 | |
Dividends declared per common share | $ 0.20 | $ 0.15 | $ 0.40 | $ 0.15 | |||||
Subsequent Event [Member] | |||||||||
Dividends Payable [Line Items] | |||||||||
Dividends declared per common share | $ 0.20 |
Stockholder's Equity Accumulate
Stockholder's Equity Accumulated Other Comprehensive Income (Loss)(Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Cumulative effect of changes in accounting principle | $ 121 | $ 121 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
AOCI, beginning balance | 10,669 | $ 10,728 | ||
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Other comprehensive income (loss) | (157) | $ 50 | (163) | 147 |
AOCI, ending balance | 10,648 | 10,483 | 10,648 | 10,483 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | (71) | 50 | (34) | 67 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 1 | 1 | (6) | 2 |
Foreign currency translation adjustments: | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (82) | 50 | (41) | 67 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
AOCI before tax, beginning balance | 3 | (132) | (38) | (149) |
AOCI tax, beginning balance | (4) | 0 | 0 | 0 |
AOCI, beginning balance | (1) | (132) | (38) | (149) |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (11) | 0 | (7) | 0 |
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Other comprehensive income (loss) | 50 | 67 | ||
AOCI before tax, ending balance | (79) | (82) | (79) | (82) |
AOCI tax, ending balance | 7 | 0 | 7 | 0 |
AOCI, ending balance | (72) | (82) | (72) | (82) |
Unrealized gains (losses) on available-for-sale investment securities: | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 0 | 1 | (8) | 3 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
AOCI before tax, beginning balance | (19) | (4) | (11) | (6) |
AOCI tax, beginning balance | 4 | 1 | 4 | 2 |
AOCI, beginning balance | (15) | (3) | (7) | (4) |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
OCI, before reclassifications, before tax | (1) | 1 | (10) | 3 |
Reclassification from AOCI, current period, before tax | 1 | 0 | 2 | 0 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (1) | 0 | (1) | 1 |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Other comprehensive income (loss) before reclassifications, tax | 1 | 0 | 2 | (1) |
Reclassification from AOCI, current period, tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
OCI, before reclassifications, net of tax | 0 | 1 | (8) | 2 |
Reclassification from AOCI, current period, net of tax | 1 | 0 | 2 | 0 |
Other comprehensive income (loss) | 1 | 1 | 2 | |
AOCI before tax, ending balance | (19) | (3) | (19) | (3) |
AOCI tax, ending balance | 5 | 1 | 5 | 1 |
AOCI, ending balance | (14) | (2) | (14) | (2) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | (7) | |||
Unrealized gains on cash flow hedges: | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (112) | 0 | (161) | 104 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
AOCI before tax, beginning balance | 105 | 155 | 154 | 51 |
AOCI tax, beginning balance | (26) | (37) | (39) | (12) |
AOCI, beginning balance | 79 | 118 | 115 | 39 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
OCI, before reclassifications, before tax | (91) | 35 | (105) | 159 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (25) | 1 | (38) | 26 |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Other comprehensive income (loss) before reclassifications, tax | 19 | (9) | 24 | (39) |
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
OCI, before reclassifications, net of tax | (72) | 26 | (81) | 120 |
Other comprehensive income (loss) | (87) | (1) | (123) | 78 |
AOCI before tax, ending balance | (7) | 155 | (7) | 155 |
AOCI tax, ending balance | (1) | (38) | (1) | (38) |
AOCI, ending balance | (8) | 117 | (8) | 117 |
Unrealized gains on cash flow hedges: | Cost of revenues | ||||
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Reclassification from AOCI, current period, before tax | (18) | (29) | (48) | (46) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Reclassification from AOCI, current period, tax | 5 | 7 | 12 | 11 |
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Reclassification from AOCI, current period, net of tax | (13) | (22) | (36) | (35) |
Unrealized gains on cash flow hedges: | Selling, general and administrative expenses | ||||
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Reclassification from AOCI, current period, before tax | (3) | (6) | (8) | (9) |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Reclassification from AOCI, current period, tax | 1 | 1 | 2 | 2 |
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Reclassification from AOCI, current period, net of tax | (2) | (5) | (6) | (7) |
Accumulated other comprehensive income (loss): | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (194) | 51 | (210) | 174 |
Cumulative Tax Effect Of New Accounting Principle In Period Of Adoption | 0 | (1) | ||
Cumulative effect of changes in accounting principle | (1) | (1) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
AOCI before tax, beginning balance | 89 | 19 | 105 | (104) |
AOCI tax, beginning balance | (26) | (36) | (35) | (10) |
AOCI, beginning balance | 63 | (17) | 70 | (114) |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (37) | 1 | (46) | 27 |
Other Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Other comprehensive income (loss) | (157) | 50 | (164) | 147 |
AOCI before tax, ending balance | (105) | 70 | (105) | 70 |
AOCI tax, ending balance | 11 | (37) | 11 | (37) |
AOCI, ending balance | $ (94) | $ 33 | $ (94) | $ 33 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Selling, general and administrative expenses | $ 805 | $ 709 | $ 1,516 | $ 1,395 | |
Insurance Receivable for Malpractice | 1 | 1 | |||
Internal Investigation and Related Matters [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Potential Improper Payments | 6 | 6 | |||
Potential Improper Payments Remaining Under Investigation | $ 2 | $ 2 | |||
Out of period adjustment [Member] | Internal Investigation and Related Matters [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Selling, general and administrative expenses | $ 4 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Related Party Transactions [Abstract] | ||
Related Party Transaction, Purchases from Related Party | $ 1 | $ 3 |
Segment Information (Revenues F
Segment Information (Revenues From External Customers And Segment Operating Profit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 4,006 | $ 3,670 | $ 7,918 | $ 7,216 |
Income from operations | 670 | 606 | 1,363 | 1,176 |
Initial Funding of Cognizant U.S. Foundation | 100 | |||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 1,256 | 1,176 | 2,456 | 2,229 |
Operating Segments [Member] | Financial Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,469 | 1,406 | 2,930 | 2,782 |
Income from operations | 462 | 445 | 909 | 872 |
Operating Segments [Member] | Healthcare [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,156 | 1,050 | 2,277 | 2,053 |
Income from operations | 357 | 345 | 695 | 619 |
Operating Segments [Member] | Products and Resources [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 840 | 747 | 1,661 | 1,484 |
Income from operations | 258 | 230 | 514 | 447 |
Operating Segments [Member] | Communications, Media and Technology [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 541 | 467 | 1,050 | 897 |
Income from operations | 179 | 156 | 338 | 291 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated costs | $ 586 | $ 570 | $ 1,093 | $ 1,053 |
Segment Information (Revenues A
Segment Information (Revenues And Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 4,006 | $ 3,670 | $ 7,918 | $ 7,216 | |
Long-lived Assets | 1,345 | 1,345 | $ 1,324 | ||
North America [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 3,067 | 2,851 | 6,042 | 5,612 | |
Long-lived Assets | 403 | 403 | 360 | ||
Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 690 | 579 | 1,374 | 1,138 | |
Long-lived Assets | 82 | 82 | 63 | ||
UNITED KINGDOM | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 309 | 288 | 619 | 562 | |
Europe, excluding United Kingdom [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 381 | 291 | 755 | 576 | |
Rest of World [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 249 | $ 240 | 502 | $ 466 | |
Long-lived Assets | $ 860 | $ 860 | $ 901 |