Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35418 | ||
Entity Registrant Name | EPAM SYSTEMS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-3536104 | ||
Entity Address, Address Line One | 41 University Drive | ||
Entity Address, Address Line Two | Suite 202 | ||
Entity Address, City or Town | Newtown | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 18940 | ||
City Area Code | 267 | ||
Local Phone Number | 759-9000 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | EPAM | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 16,369,932,254 | ||
Entity Common Stock, Shares Outstanding | 57,677,992 | ||
Documents Incorporated by Reference | The registrant intends to file a definitive Proxy Statement for its 2023 annual meeting of stockholders pursuant to Regulation 14A within 120 days of the end of the registrant’s fiscal year ended December 31, 2022. Portions of the registrant’s Proxy Statement are incorporated by reference into Part III of this Annual Report on Form 10-K. With the exception of the portions of the Proxy Statement expressly incorporated by reference, such document shall not be deemed filed with this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001352010 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Philadelphia, Pennsylvania |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 1,681,344 | $ 1,446,625 |
Trade receivables and contract assets, net of allowance of $15,310 and $5,521, respectively | 932,626 | 768,928 |
Short-term investments | 60,336 | 0 |
Prepaid and other current assets | 85,319 | 53,927 |
Total current assets | 2,759,625 | 2,269,480 |
Property and equipment, net | 273,348 | 236,214 |
Operating lease right-of-use assets, net | 148,780 | 184,841 |
Intangible assets, net | 77,652 | 101,143 |
Goodwill | 529,072 | 530,723 |
Deferred tax assets | 172,797 | 143,928 |
Other noncurrent assets | 47,877 | 56,898 |
Total assets | 4,009,151 | 3,523,227 |
Current liabilities | ||
Accounts payable | 30,852 | 24,847 |
Accrued compensation and benefits expenses | 475,871 | 502,997 |
Accrued expenses and other current liabilities | 151,478 | 142,014 |
Short-term debt | 2,861 | 16,018 |
Income taxes payable, current | 46,069 | 27,440 |
Operating lease liabilities, current | 40,352 | 50,104 |
Total current liabilities | 747,483 | 763,420 |
Long-term debt | 27,693 | 30,234 |
Operating lease liabilities, noncurrent | 122,317 | 142,802 |
Other noncurrent liabilities | 108,648 | 90,934 |
Total liabilities | 1,006,141 | 1,027,390 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value; 160,000 authorized; 57,668 and 56,868 shares issued, 57,655 and 56,849 shares outstanding at December 31, 2022 and December 31, 2021, respectively | 58 | 57 |
Additional paid-in capital | 847,965 | 711,912 |
Retained earnings | 2,248,948 | 1,829,532 |
Treasury stock | (118) | (177) |
Accumulated other comprehensive loss | (95,321) | (54,207) |
Total EPAM Systems Inc. stockholders’ equity | 3,001,532 | 2,487,117 |
Noncontrolling interest in consolidated subsidiaries | 1,478 | 8,720 |
Total equity | 3,003,010 | 2,495,837 |
Total liabilities and stockholders’ equity | $ 4,009,151 | $ 3,523,227 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Trade receivables and contract assets, allowance | $ 15,310 | $ 5,521 |
Stockholders’ equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 57,668,000 | 56,868,000 |
Common stock, shares outstanding (in shares) | 57,655,000 | 56,849,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 4,824,698 | $ 3,758,144 | $ 2,659,478 |
Operating expenses: | |||
Cost of revenues (exclusive of depreciation and amortization) | 3,286,683 | 2,483,697 | 1,732,522 |
Selling, general and administrative expenses | 872,777 | 648,736 | 484,758 |
Depreciation and amortization expense | 92,272 | 83,395 | 62,874 |
Income from operations | 572,966 | 542,316 | 379,324 |
Interest and other income/(loss), net | 10,025 | (1,727) | 3,822 |
Foreign exchange loss | (75,733) | (7,197) | (4,667) |
Income before provision for income taxes | 507,258 | 533,392 | 378,479 |
Provision for income taxes | 87,842 | 51,740 | 51,319 |
Net income | $ 419,416 | $ 481,652 | $ 327,160 |
Net income per share: | |||
Basic (in dollars per share) | $ 7.32 | $ 8.52 | $ 5.87 |
Diluted (in dollars per share) | $ 7.09 | $ 8.15 | $ 5.60 |
Shares used in calculation of net income per share: | |||
Basic (in shares) | 57,291 | 56,511 | 55,727 |
Diluted (in shares) | 59,169 | 59,064 | 58,446 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 419,416 | $ 481,652 | $ 327,160 |
Other comprehensive (loss)/income: | |||
Change in foreign currency translation adjustments, net of tax | (49,033) | (24,579) | 4,498 |
Change in unrealized gain/(loss) on hedging instruments, net of tax | 11,723 | (7,059) | 2,350 |
Defined benefit pension plans - actuarial (loss)/gain, net of tax | (3,804) | 2,943 | (986) |
Other comprehensive (loss)/income | (41,114) | (28,695) | 5,862 |
Comprehensive income | $ 378,302 | $ 452,957 | $ 333,022 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative effect of adoption | Adjusted balance | Common Stock | Common Stock Restricted Stock Units | Common Stock Adjusted balance | Additional Paid-in Capital | Additional Paid-in Capital Adjusted balance | Retained Earnings | Retained Earnings Cumulative effect of adoption | Retained Earnings Adjusted balance | Treasury Stock | Treasury Stock Adjusted balance | Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss) Adjusted balance | Non-controlling interest | Non-controlling interest Adjusted balance |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 55,188 | 55,188 | |||||||||||||||
Balance, beginning of period at Dec. 31, 2019 | $ 1,596,145 | $ 130 | $ 1,596,275 | $ 55 | $ 55 | $ 607,051 | $ 607,051 | $ 1,020,590 | $ 130 | $ 1,020,720 | $ (177) | $ (177) | $ (31,374) | $ (31,374) | $ 0 | $ 0 | |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 20 | 20 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted stock units vested (in shares) | 327 | ||||||||||||||||
Equity withheld for employee taxes (in shares) | (106) | ||||||||||||||||
Equity withheld for employee taxes | (20,190) | (20,190) | |||||||||||||||
Stock-based compensation expense | 47,462 | 47,462 | |||||||||||||||
Exercise of stock options (in shares) | 699 | ||||||||||||||||
Exercise of stock options | 26,449 | $ 1 | 26,448 | ||||||||||||||
Other comprehensive income (loss) | 5,862 | 5,862 | |||||||||||||||
Net income | 327,160 | 327,160 | |||||||||||||||
Balance, end of period (in shares) at Dec. 31, 2020 | 56,108 | ||||||||||||||||
Balance, end of period at Dec. 31, 2020 | 1,983,018 | $ 56 | 660,771 | 1,347,880 | $ (177) | (25,512) | 0 | ||||||||||
Balance, end of period (in shares) at Dec. 31, 2020 | 20 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted stock units vested (in shares) | 311 | ||||||||||||||||
Equity withheld for employee taxes (in shares) | (106) | ||||||||||||||||
Equity withheld for employee taxes | (45,070) | (45,070) | |||||||||||||||
Stock-based compensation expense | 69,899 | 69,899 | |||||||||||||||
Exercise of stock options (in shares) | 536 | ||||||||||||||||
Exercise of stock options | 26,313 | $ 1 | 26,312 | ||||||||||||||
Other comprehensive income (loss) | (28,695) | (28,695) | |||||||||||||||
Noncontrolling interests acquired in business combination | 10,469 | 10,469 | |||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | (1,749) | (1,749) | |||||||||||||||
Net income | $ 481,652 | 481,652 | |||||||||||||||
Balance, end of period (in shares) at Dec. 31, 2021 | 56,849 | 56,849 | |||||||||||||||
Balance, end of period at Dec. 31, 2021 | $ 2,495,837 | $ 57 | 711,912 | 1,829,532 | $ (177) | (54,207) | 8,720 | ||||||||||
Balance, end of period (in shares) at Dec. 31, 2021 | 20 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Restricted stock units vested (in shares) | 252 | ||||||||||||||||
Equity withheld for employee taxes (in shares) | (83) | ||||||||||||||||
Equity withheld for employee taxes | (23,650) | (23,650) | |||||||||||||||
Stock issued in connection with Other 2021 acquisitions (Note 3) (in shares) | 6 | (6) | |||||||||||||||
Stock issued in connection with Other 2021 acquisitions (Note 3) | 2,000 | 1,941 | $ 59 | ||||||||||||||
Stock-based compensation expense | 107,513 | 107,513 | |||||||||||||||
Exercise of stock options (in shares) | 511 | ||||||||||||||||
Exercise of stock options | 21,851 | $ 1 | 21,850 | ||||||||||||||
Issuance of common stock from employee stock purchase plan (in shares) | 120 | ||||||||||||||||
Issuance of common stock from employee stock purchase plan | 28,350 | 28,350 | |||||||||||||||
Other comprehensive income (loss) | (41,114) | (41,114) | |||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | (7,266) | (7,315) | |||||||||||||||
Contributions from noncontrolling interest | 73 | 73 | |||||||||||||||
Net income | $ 419,416 | 419,416 | |||||||||||||||
Balance, end of period (in shares) at Dec. 31, 2022 | 57,655 | 57,655 | |||||||||||||||
Balance, end of period at Dec. 31, 2022 | $ 3,003,010 | $ 58 | $ 847,965 | $ 2,248,948 | $ (118) | $ (95,321) | $ 1,478 | ||||||||||
Balance, end of period (in shares) at Dec. 31, 2022 | 14 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 419,416 | $ 481,652 | $ 327,160 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 92,272 | 83,401 | 62,874 |
Operating lease right-of-use assets amortization expense | 47,777 | 61,750 | 66,369 |
Bad debt expense | 12,394 | 2,488 | 2,253 |
Deferred taxes | (42,164) | (46,900) | (19,994) |
Stock-based compensation expense | 99,909 | 111,655 | 75,238 |
Unrealized loss on Derivative | 7,904 | 0 | 0 |
Impairment charges | 23,619 | 144 | 0 |
Other | 32,806 | 12,993 | 6,796 |
Changes in assets and liabilities: | |||
Trade receivables and contract assets | (192,712) | (211,684) | 4,235 |
Prepaid and other assets | (12,140) | (16,182) | 6,983 |
Accounts payable | (2,934) | (2,403) | 2,428 |
Accrued expenses and other liabilities | 26,025 | 155,657 | 60,133 |
Operating lease liabilities | (51,668) | (63,812) | (64,453) |
Income taxes payable | 3,600 | 3,568 | 14,385 |
Net cash provided by operating activities | 464,104 | 572,327 | 544,407 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (81,629) | (111,501) | (68,793) |
Purchases of short-term investments | (60,000) | 0 | (120,000) |
Proceeds from short-term investments | 0 | 60,000 | 60,009 |
Acquisition of businesses, net of cash acquired (Note 3) | (10,644) | (314,958) | (18,888) |
Purchases of non-marketable securities | (1,625) | (2,544) | (20,500) |
Other investing activities, net | (29,029) | 79 | 1,018 |
Net cash used in investing activities | (182,927) | (368,924) | (167,154) |
Cash flows from financing activities: | |||
Proceeds from issuance of stock under the employee incentive programs | 50,660 | 26,286 | 26,410 |
Payments of withholding taxes related to net share settlements of restricted stock units | (26,556) | (41,598) | (20,132) |
Proceeds from debt | 1,763 | 31,109 | 0 |
Repayment of debt | (15,542) | (31,054) | (18) |
Payment of contingent consideration for previously acquired businesses | (6,626) | (40,227) | (7,004) |
Purchase of noncontrolling interest | (2,254) | (1,749) | 0 |
Other financing activities, net | (3,466) | (2,324) | (21) |
Net cash used in financing activities | (2,021) | (59,557) | (765) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (44,867) | (18,032) | 9,357 |
Net increase in cash, cash equivalents and restricted cash | 234,289 | 125,814 | 385,845 |
Cash, cash equivalents and restricted cash, beginning of period | 1,449,347 | 1,323,533 | 937,688 |
Cash, cash equivalents and restricted cash, end of period | 1,683,636 | 1,449,347 | 1,323,533 |
Cash paid during the year for: | |||
Income taxes, net of refunds | 113,188 | 87,317 | 54,520 |
Interest | 1,659 | 413 | 425 |
Supplemental disclosure of non-cash investing and financing activities | |||
Acquisition-date fair value of contingent consideration issued for acquisition of businesses | 2,645 | 57,249 | 7,119 |
Capital expenditures incurred but not yet paid | $ 57,114 | $ 7,738 | $ 1,582 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 1,681,344 | $ 1,446,625 | $ 1,322,143 |
Restricted cash in Prepaid and other current assets | 430 | 495 | 106 |
Restricted cash in Other noncurrent assets | 1,862 | 2,227 | 1,284 |
Total restricted cash | 2,292 | 2,722 | 1,390 |
Total cash, cash equivalents and restricted cash | $ 1,683,636 | $ 1,449,347 | $ 1,323,533 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading digital transformation services and product engineering company, providing digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, and Asia. The Company’s industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as several other industries. The Company is incorporated in Delaware with headquarters in Newtown, Pennsylvania. Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM and its subsidiaries. All intercompany balances and transactions have been eliminated. Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the financial statements. Cash and Cash Equivalents — Cash equivalents are short-term, highly liquid investments and deposits that are readily convertible into cash, with maturities of three months or less at the date acquired. Highly liquid investments with maturities greater than three months at the date acquired are reported separately from cash equivalents. Trade Receivables and Contract Assets — The Company classifies its right to consideration in exchange for deliverables as either a trade receivable or a contract asset. A trade receivable is a right to consideration that is unconditional (i.e., only the passage of time is required before payment is due) regardless of whether the amounts have been billed. Trade receivables are stated net of allowance for doubtful accounts. Outstanding trade receivables are reviewed periodically and allowances are provided for the estimated amount of receivables that may not be collected. The allowance for doubtful accounts is determined based on historical experience and management’s evaluation of trade receivables. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets primarily relate to unbilled amounts on fixed-price contracts. Contract assets are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. The Company recognizes an impairment loss when the contract carrying amount is greater than the remaining consideration receivable, less directly related costs to be incurred. Property and Equipment — Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets generally ranging from two Business Combinations — The Company accounts for business combinations using the acquisition method which requires it to estimate the fair value of identifiable assets acquired and liabilities assumed, including any contingent consideration, to properly allocate the purchase price to the individual assets acquired and liabilities assumed in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations . The allocation of the purchase price utilizes significant estimates in determining the fair values of identifiable assets acquired and liabilities assumed, especially with respect to intangible assets. The significant estimates and assumptions used include the timing and amount of forecasted revenues and cash flows, anticipated growth rates, customer attrition rates, the discount rate reflecting the risk inherent in future cash flows and the useful lives for finite-lived assets. There are different valuation models for each component, the selection of which requires considerable judgment. These determinations will affect the amount of amortization expense recognized in future periods. The Company bases its fair value estimates on assumptions it believes are reasonable but recognizes that the assumptions are inherently uncertain. The acquired assets typically include customer relationships, software, trade names, non-competition agreements, and assembled workforce and as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. If the initial accounting for the business combination has not been completed by the end of the reporting period in which the business combination occurs, provisional amounts are reported to present information about facts and circumstances that existed as of the acquisition date. Once the measurement period ends, which in no case extends beyond one year from the acquisition date, revisions to the accounting for the business combination are recorded in earnings. In some business combinations, the Company agrees to contingent consideration arrangements and the Company determines the fair value of contingent consideration using Monte Carlo simulations (which involve a simulation of future revenues and earnings during the earn-out period using management’s best estimates) or probability-weighted expected return methods. Changes in financial projections, market risk assumptions, discount rates or probability assumptions related to achieving the various earn-out criteria would result in a change in the fair value of contingent consideration. Such changes, if any, are recorded within Interest and other income/(loss), net in the Company’s consolidated statements of income. All acquisition-related costs, other than the costs to issue debt or equity securities, are accounted for as expenses in the period in which they are incurred. Changes in the fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. Long-Lived Assets — Long-lived assets, such as property and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill and other intangible assets that have indefinite useful lives are accounted for in accordance with FASB ASC 350, Intangibles — Goodwill and Other . The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31st, and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is an operating segment or one level below. The Company does not have intangible assets other than goodwill that have indefinite useful lives. Derivative Financial Instruments — The Company enters into derivative financial instruments to manage exposure to fluctuations in certain foreign currencies. The Company measures these foreign currency derivative contracts at fair value on a recurring basis utilizing Level 2 inputs and recognizes them as either assets or liabilities in its consolidated balance sheets. The Company records changes in the fair value of these hedges in accumulated other comprehensive loss until the forecasted transaction occurs. When the forecasted transaction occurs, the Company reclassifies the related gain or loss on the cash flow hedge to cost of revenues (exclusive of depreciation and amortization). In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the Company reclassifies the gain or loss on the underlying hedge into income. If the Company does not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in income. The cash flow impact of derivatives identified as hedging instruments is reflected as cash flows from operating activities. The cash flow impact of derivatives not identified as hedging instruments is reflected as cash flows from investing activities. Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with FASB ASC Topic 820, Fair Value Measurement , and utilizes the following fair value hierarchy in determining inputs used for valuation: Level 1 — Quoted prices for identical assets or liabilities in active markets. Level 2 — Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. Level 3 — Unobservable inputs reflecting management’s view about the assumptions that market participants would use in pricing the asset or liability. Where the fair values of financial assets and liabilities recorded in the consolidated balance sheets cannot be derived from an active market, they are determined using a variety of valuation techniques. These valuation techniques include a net present value technique, comparison to similar instruments with market observable inputs, option pricing models and other relevant valuation models. To the extent possible, observable market data is used as inputs into these models but when it is not feasible, a degree of judgment is required to establish fair values. Changes in the fair value of liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 5 “Fair Value Measurements.” Accumulated Other Comprehensive Loss — Accumulated other comprehensive loss consists of changes in the cumulative foreign currency translation adjustments and actuarial gains and losses on defined benefit pension plans. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with FASB ASC Topic 815, Derivatives and Hedging. Changes in the fair values of these foreign currency exchange contracts are recognized in Accumulated other comprehensive loss on the Company's consolidated balance sheets until the settlement of those contracts. Revenue Recognition — The Company recognizes revenue in accordance with ASC 606 which requires entities to recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services as well as requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company recognizes revenues when control of goods or services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Such control may be transferred over time or at a point in time depending on satisfaction of obligations stipulated by the contract. Consideration expected to be received may consist of both fixed and variable components and is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. Variable consideration usually takes the form of volume-based discounts, service level credits, price concessions or incentives. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The Company derives revenues from a variety of service arrangements, which have been evolving to provide more customized and integrated solutions to customers by combining software engineering with customer experience design, business consulting and technology innovation services. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The Company generates the majority of its revenues under time-and-material contracts, which are billed using hourly, daily or monthly rates to determine the amounts to be charged directly to the customer. The Company applies a practical expedient and revenues related to time-and-material contracts are recognized based on the right to invoice for services performed. Fixed-price contracts include maintenance and support arrangements which may exceed one year in duration. Maintenance and support arrangements generally relate to the provision of ongoing services and revenues for such contracts are recognized ratably over the expected service period. Fixed-price contracts also include application development arrangements, where progress towards satisfaction of the performance obligation is measured using input or output methods and input methods are used only when there is a direct correlation between hours incurred and the end product delivered. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. Revenues from licenses which have significant stand-alone functionality are recognized at a point in time when control of the license is transferred to the customer. Revenues from licenses which do not have stand-alone functionality are recognized over time. If there is an uncertainty about the receipt of payment for the services, revenue recognition is deferred until the uncertainty is sufficiently resolved. The Company applies a practical expedient and does not assess the existence of a significant financing component if the period between transfer of the service to a customer and when the customer pays for that service is one year or less. The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. Revenues are sourced from four geographic markets: Americas, EMEA, APAC and CEE. Americas includes revenues from customers in North, Central and South America; EMEA includes revenues from customers in Western Europe and the Middle East; APAC includes revenues from customers in East Asia, Southeast Asia and Australia; and CEE includes revenues from customers in Eastern Europe and Central Asia. Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, bonuses, fringe benefits, stock-based compensation, project related travel costs and fees for subcontractors that are assigned to customer projects. Salaries and other compensation expenses of the Company’s delivery professionals are reported as cost of revenues regardless of whether the employees are actually performing customer services during a given period. Selling, General and Administrative Expenses — Consists of expenses associated with promoting and selling the Company’s services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising and other promotional activities, and certain non-income taxes. Stock-Based Compensation — The Company recognizes the cost of its equity settled stock-based incentive awards based on the fair value of the award at the date of grant, net of estimated forfeitures. The fair value of these awards at the date of grant is generally based on the grant-date price of the company's shares. The grant date fair value for stock options and stock purchase rights under the Employee Stock Purchase Plan (”ESPP”) is estimated using the Black-Scholes option-pricing valuation model. The cost is generally expensed evenly over the service period, unless otherwise specified by the award agreement. The service period is the period over which the employee performs the related services, which is normally the same as the vesting period. Equity-based awards that do not require future service are expensed immediately. For awards with performance conditions, the amount of compensation cost we recognize over the requisite service period is based on the actual or expected achievement of the performance condition. Quarterly, the forfeiture assumption is adjusted to reflect actual forfeitures and such adjustment may affect the timing of recognition of the total amount of expense recognized over the vesting period. Stock-based awards that do not meet the criteria for equity classification are recorded as liabilities and adjusted to fair value at the end of each reporting period. Income Taxes — The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes. The realizability of deferred tax assets is primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. A reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings. The United States subjects corporations to taxes on Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The Company elected to provide for the tax expense related to GILTI in the year the tax is incurred. Earnings per Share (“EPS”) — Basic EPS is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period, increased by the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock, unvested restricted stock units (“RSUs”) and the stock to be issued under the ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Foreign Currency Translation and Remeasurement — Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of Accumulated other comprehensive loss. For consolidated foreign subsidiaries whose functional currency is not the local currency, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur. Risks and Uncertainties — As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit — Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, short-term investments and trade receivables. The Company maintains cash, cash equivalents and short-term investments with financial institutions. The Company believes its credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. The Company has cash in countries, including Ukraine, Russia and Belarus, which have been impacted by the invasion of Ukraine (see Note 2 “Impact of the Invasion of Ukraine”) and where the banking sector remains subject to periodic instability, banking and other financial systems generally do not meet the banking standards of more developed markets, and bank deposits made by corporate entities are not insured. As of December 31, 2022, the Company had $47.1 million of cash and cash equivalents in banks in Ukraine, $29.0 million of cash and cash equivalents in banks in Russia, and $28.0 million of cash and cash equivalents in banks in Belarus. Cash in Ukraine and Belarus is used for the operational needs of the local entities and cash balances change with the expected operating needs of these entities. The Company regularly monitors cash held in these countries and, to the extent the cash held exceeds amounts required to support its operations in these countries, the Company distributes the excess funds into markets with more developed banking sectors to the extent it is possible to do so. Due to restrictions imposed by the Russian government, our ability to distribute excess funds from Russia to other countries is limited. On September 7, 2022, we executed an agreement to sell substantially all of our remaining holdings in Russia, including cash and cash equivalents, to a third party. As of December 31, 2022 and through the date of issuance of these financial statements, the long stop date of the agreement has passed and we are currently renegotiating the terms of that sale agreement as well as exploring other strategic alternatives. The timing and completion of a sale is uncertain and any sale would be subject to customary closing conditions, including regulatory approvals by the Russian government. The Company places its cash and cash equivalents with financial institutions considered stable in the region, limits the amount of credit exposure with any one financial institution and conducts ongoing evaluations of the credit worthiness of the financial institutions with which it does business. However, a banking crisis, bankruptcy or insolvency of banks that process or hold the Company’s funds, or sanctions may result in the loss of deposits or adversely affect the Company’s ability to complete banking transactions, which could adversely affect the Company’s business and financial condition. Trade receivables are generally dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. Historically, credit losses and write-offs of trade receivables have not been material to the consolidated financial statements. If any of the Company’s customers enter bankruptcy protection or otherwise take steps to alleviate their financial distress, the Company’s credit losses and write-offs of trade receivables could increase, which would negatively impact its results of operations. See Note 2 “Impact of the Invasion of Ukraine” for further discussion regarding trade receivables and contract assets from customers located in Russia. Foreign currency risk — The Company’s global operations are conducted predominantly in U.S. dollars. Other than U.S. dollars, the Company generates revenues in various currencies, principally, euros, British pounds, Swiss francs, Canadian dollars and Russian rubles and incurs expenditures principally in euros, Polish zlotys, Russian rubles, Indian rupees, British pounds, Swiss francs, Hungarian forints, Mexican pesos, Colombian pesos, Canadian dollars and Chinese yuan renminbi. The Company’s international operations expose it to risk of adverse fluctuations in foreign currency exchange rates through the remeasurement of foreign currency denominated assets and liabilities (both third-party and intercompany) and translation of earnings and cash flows into U.S. dollars. The Company has a hedging program whereby it enters into a series of foreign exchange forward contracts with durations of twelve months or less that are designated as cash flow hedges of forecasted Polish zloty, Indian rupee and Hungarian forint transactions. See Note 6 “Derivative Financial Instruments ” for further discussion regarding the Company’s termination of the hedging program for the Russian ruble. Interest rate risk — The Company is exposed to market risk from changes in interest rates. Exposure to interest rate risk results primarily from variable rates related to cash and cash equivalent deposits, short-term investments, and the Company’s borrowings, mainly under the 2021 Credit Agreement, which is subject to a variety of rates depending on the type and timing of funds borrowed (See Note 10 “Debt”). The Company does not believe it is exposed to material direct risks associated with changes in interest rates related to these deposits, investments and borrowings. Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have a material impact on the Company’s consolidated financial position, results of operations, and cash flows. Government Assistance - In November 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-10, Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance , which requires annual disclosures for entities receiving government assistance to provide more transparency by requiring disclosures of the following: (1) the nature of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for fiscal years beginning after December 15, 2021. The ASU only impacts annual financial statement note disclosures. The Company benefits from government grants in certain countries where it operates. The grants are generally subject to achieving certain employment and investment targets. The Company recognized $10.2 million, $3.7 million and $1.6 million related to government grants during the years ended December 31, 2022, 2021 and 2020, respectively, which are included in Interest and other income/(loss) Pending Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. The Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. |
IMPACT OF THE INVASION OF UKRAI
IMPACT OF THE INVASION OF UKRAINE | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
IMPACT OF THE INVASION OF UKRAINE | IMPACT OF THE INVASION OF UKRAINE On February 24, 2022, Russian forces attacked Ukraine and its people and EPAM has repeatedly called for an immediate end to this unlawful and unconscionable attack. As of December 31, 2022, the Company had $70.2 million of Property and equipment, net in Ukraine consisting of a building classified as construction-in-progress located in Kyiv with a net book value of $51.4 million, laptops with a net book value of $11.5 million, most of which are in the possession of employees, various office furniture, equipment and supplies with a net book value of $6.3 million, and leasehold improvements located throughout Ukraine with a net book value of $1.0 million. Additionally, as of December 31, 2022, the Company had Operating lease right-of-use assets located throughout Ukraine with a net book value of $12.3 million. Through the issuance date of these financial statements, the Company is not aware of any damage to its long-lived assets in Ukraine and the Company expects to continue to use these assets as part of its global delivery model. On March 4, 2022, the Company announced a $100 million humanitarian commitment to support its employees and their families in and displaced from Ukraine. This humanitarian commitment is in addition to donations from EPAM's customers and employees and the work of EPAM volunteers on the ground. During the year ended December 31, 2022, the Company expensed $44.8 million related to this commitment which included special cash payments to support impacted employees, financial and medical support for impacted families, travel, meals and lodging expenses, and donations to third-party humanitarian organizations. Of the expensed amount for the year ended December 31, 2022, $29.0 million is classified in Cost of revenues (exclusive of depreciation and amortization) and $15.8 million is classified in Selling, general and administrative expense on the consolidated financial statements. The Company executed its business continuity plans following the invasion to assist relocating employees residing in Ukraine, Belarus and Russia to other countries and to assign delivery personnel in locations outside of the region to serve in unbilled standby or backup capacities to ensure the continuity of delivery for its customers who have substantial delivery exposure to Ukraine or other delivery concerns resulting from the invasion and ongoing war. In addition to costs incurred as part of EPAM’s humanitarian commitment to Ukraine, during the year ended December 31, 2022, the Company incurred expenses of $38.7 million related to its geographic repositioning efforts, classified as Selling, general and administrative expenses and $14.7 million related to these standby resources, classified as Cost of revenues (exclusive of depreciation and amortization). During the year ended December 31, 2022, the Company also recorded an impairment charge of $1.3 million, classified as Interest and other income/(loss), net related to a financial asset in Ukraine which the Company believed to be unrealizable due to the events in Ukraine. In response to the attacks on Ukraine, EPAM announced on March 4, 2022, it would discontinue services to customers located in Russia. Based on this change in facts and circumstances, the long-term cash flow forecast for the Company’s operations in Russia and its Russia reporting unit were significantly reduced. The reduction in the long-term cash flow forecasts indicated that the carrying amounts of goodwill and long-lived assets associated with the Company’s Russia reporting unit and operations in Russia may not be recoverable, and the carrying value of these assets was tested for impairment. The Company relied on the income approach to estimate the fair values of the Russia reporting unit and long-lived assets and considered multiple scenarios including the continuing operation and exit of operations in Russia. Reflecting the negative long-term cash flow forecasts that each of these scenarios produced for these assets, during the three months ended March 31, 2022, the Company recorded impairments of Property and equipment, net On April 7, 2022, the Company announced that it would begin the process of a phased exit of its operations in Russia, to be completed in the months following the announcement and in close collaboration with the Company’s employees, contractors, and custome rs. In connection with the ongoing phased exit of its operations in Russia, the Com pany incurred employee separation costs of $17.1 million during the year ended December 31, 2022 . On September 7, 2022, the Company executed an agreement to sell substantially all of its remaining holdings in Russia to a third party. As of December 31, 2022 and through the date of issuance of these financial statements, the long stop date of the agreement has passed and the Company is currently renegotiating the terms of that sale agreement as well as exploring other strategic alternatives. The timing and completion of a sale is uncertain and any sale would be subject to customary closing conditions, including regulatory approvals by the Russian government. Due to the significant uncertainty of obtaining the necessary regulatory approvals, the Company does not believe a sale was probable to be completed as of December 31, 2022 and has not reported the assets and liabilities to be sold as held for sale in its consolidated balance sheet. As of December 31, 2022, the Company had the following assets and liabilities in Russia: Cash and cash equivalents $ 29,023 Trade receivables and contract assets, net of allowance of $5,313 5,842 Prepaid and other current assets 425 Total assets in Russia $ 35,290 Accounts payable $ 82 Accrued compensation and benefits expenses 4,786 Accrued expenses and other current liabilities 2,464 Operating lease liabilities 546 Other noncurrent liabilities 62 Total liabilities in Russia $ 7,940 As of December 31, 2022, based on the Company’s expected net proceeds from sale and recognition of the accumulated currency translation loss currently included in Accumulated other comprehensive loss, the Company expects to record a loss upon the earlier of classification of the assets and liabilities to be sold as held for sale or closing of a sale. Such loss is not expected to be material based on the information available through the date of issuance of these financial statements. Fluctuations in foreign currency exchange rates could impact the gain or loss the Company could recognize in the future. If unable to complete a sale, the Company could recognize other charges including restructuring costs. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS PolSource — On April 2, 2021, the Company acquired 100% of PolSource S.A. and its subsidiaries (“PolSource”), a Salesforce Platinum Consulting Partner with more than 350 experienced Salesforce specialists for a purchase price of $148.2 million including contingent consideration with an acquisition-date fair value of $35.4 million. At the time of the acquisition, the Company committed to paying up to $45.0 million in contingent consideration, subject to attainment of certain revenue, earnings and operational targets. CORE — On July 23, 2021, the Company acquired 100% of CORE SE and its subsidiaries (“CORE”), a professional service provider specializing in IT strategy and technology-driven transformations with office locations in Europe and the Middle East for a purchase price of $50.2 million including contingent consideration with an acquisition-date fair value of $4.0 million and deferred consideration of $7.8 million. The Company could pay up to $8.1 million in contingent consideration and the actual future payout is subject to attainment of certain revenue, earnings and operational targets. Emakina — On November 3, 2021, the Company completed the acquisition of 98.69% of Emakina Group SA and its subsidiaries (“Emakina”), a group of independent digital agencies, for a purchase price of $143.4 million in cash. On November 30, 2021, the Company completed the acquisition of the remaining 1.31% of Emakina Group SA’s outstanding shares for a purchase price of $1.7 million in cash. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of each respective acquisition and updated for any changes as of December 31, 2022: PolSource CORE Emakina Cash and cash equivalents $ 2,565 $ 11,283 $ 5,142 Trade receivables and contract assets 12,734 10,266 34,389 Prepaid and other current assets 814 5,430 3,109 Goodwill 125,265 24,194 139,417 Intangible assets 15,790 8,368 30,488 Property and equipment and other noncurrent assets 461 4,585 16,802 Total assets acquired $ 157,629 $ 64,126 $ 229,347 Accounts payable, accrued expenses and other current liabilities $ 5,337 $ 9,336 $ 37,469 Short-term debt — — 13,657 Long-term debt — — 8,874 Operating lease liabilities, noncurrent 157 2,056 5,541 Other noncurrent liabilities 3,963 2,525 9,319 Total liabilities assumed $ 9,457 $ 13,917 $ 74,860 Noncontrolling interest in consolidated subsidiaries — — 10,469 Net assets acquired $ 148,172 $ 50,209 $ 144,018 During the year ended December 31, 2022, the Company completed the purchase price allocation for the acquisitions of PolSource, CORE, and Emakina and the estimated fair values of the assets acquired and liabilities assumed have been finalized. The effect of adjustments recorded during the year ended December 31, 2022 that would have been recognized in a prior period if the adjustment to the preliminary amounts had been recognized as of the acquisition date of each respective acquisition was not material. The following table presents the estimated fair values and useful lives of intangible assets acquired from PolSource, CORE and Emakina as of the date of each respective acquisition and updated for any changes as of December 31, 2022: PolSource CORE Emakina Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6 $ 14,790 6 $ 7,779 7 $ 27,822 Trade names 3 1,000 5 589 3 2,666 Total $ 15,790 $ 8,368 $ 30,488 The goodwill recognized as a result of the PolSource acquisition is attributable to synergies expected to be achieved by combining the businesses of EPAM and PolSource, expected future contracts, the assembled workforce acquired and other factors. The goodwill recognized as a result of the CORE acquisition is attributable to synergies expected to be achieved by expanding the Company’s ability to support customers as a strategic consultant in Europe and the Middle East, expected future contracts, the assembled workforce acquired and other factors. The goodwill recognized as a result of the Emakina acquisition is attributable to synergies expected to be achieved by enhancing EPAM’s digital experience practice as well as augmenting offerings in digital design and engineering capabilities, expected future contracts, the assembled workforce and other factors. The goodwill acquired as a result of the PolSource, CORE and Emakina acquisitions is not expected to be deductible for income tax purposes. During the year ended December 31, 2021, the Company recognized acquisition-related costs associated with the PolSource, CORE and Emakina acquisitions totaling $1.4 million, $1.2 million and $1.0 million, respectively. Acquisition-related costs incurred during the years ended December 31, 2022 and 2020 were not material. These costs are included in Selling, general and administrative expenses in the accompanying consolidated statements of income. Revenues generated by PolSource, CORE and Emakina included in the Company’s consolidated statement of income totaled $55.0 million, $14.1 million and $24.7 million during the year ended December 31, 2021, respectively. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. 2020 Acquisitions — During the year ended December 31, 2020, the Company completed two acquisitions with an aggregate purchase price of $22.5 million including contingent consideration with an aggregate acquisition-date fair value of $5.3 million. The Company committed to making contingent consideration payments with a maximum aggregate amount payable of $18.6 million subject to attainment of specified performance targets in the first and second calendar years after the respective acquisition dates. These acquisitions increased EPAM’s software and service capabilities and expanded EPAM’s offerings in financial services as well as added $7.3 million of intangible assets, consisting mainly of customer relationships. Revenues generated by these acquisitions totaled $6.0 million for the year ended December 31, 2020. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. Other 2021 Acquisitions — During the year ended December 31, 2021, the Company completed four additional acquisitions with an aggregate purchase price of $65.2 million including contingent consideration with an acquisition-date fair value of $17.6 million. The Company could pay up to $30.2 million in contingent consideration and the actual future payouts are subject to attainment of specified performance targets during the periods ranging from 12 months to 48 months after the respective acquisition dates. These acquisitions increased EPAM’s e-platform offerings and expanded the Company’s geographical reach as well as added $14.1 million in intangible assets, consisting mainly of customer relationships. Revenues generated by these Other 2021 Acquisitions totaled $19.5 million during the year ended December 31, 2021. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. 2022 Acquisitions — During the year ended December 31, 2022, the Company completed two acquisitions with a total purchase price of $13.6 million including contingent consideration with total acquisition-date fair value of $2.6 million. These acquisitions expanded EPAM’s capabilities to deliver end-to-end solutions for designing and building sophisticated commerce platforms, provided opportunities for geographic expansion as well as added $3.4 million of intangible assets, consisting of customer relationships. Revenues generated by these 2022 Acquisitions totaled $8.7 million during the year ended December 31, 2022. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill by reportable segment was as follows: North America Europe Russia Total Balance as of January 1, 2021 $ 121,132 $ 90,106 $ 718 $ 211,956 Emakina acquisition — 136,614 — 136,614 PolSource acquisition 75,203 50,136 — 125,339 CORE acquisition — 23,234 — 23,234 Other 2021 Acquisitions 21,875 18,830 — 40,705 2020 Acquisitions purchase accounting adjustments — (24) — (24) Effect of net foreign currency exchange rate changes (616) (6,483) (2) (7,101) Balance as of December 31, 2021 $ 217,594 $ 312,413 $ 716 $ 530,723 Emakina acquisition purchase accounting adjustments — 2,602 — 2,602 PolSource acquisition purchase accounting adjustments (44) (30) — (74) CORE acquisition purchase accounting adjustments — 959 — 959 Other 2021 Acquisitions purchase accounting adjustments (20) 937 — 917 2022 Acquisitions — 10,124 — 10,124 Goodwill impairment — — (686) (686) Effect of net foreign currency exchange rate changes (570) (14,893) (30) (15,493) Balance as of December 31, 2022 $ 216,960 $ 312,112 $ — $ 529,072 See Note 2 “Impact of the Invasion of Ukraine” for more information regarding the goodwill impairment recorded in the Russia segment during the year ended December 31, 2022. The Russia segment had accumulated goodwill impairment losses of $2.9 million as of December 31, 2022 and $2.2 million as of December 31, 2021 and 2020. There were no accumulated goodwill impairment losses in the North America or Europe reportable segments as of December 31, 2022, 2021 or 2020. Intangible assets other than goodwill as of December 31, 2022 and 2021 were as follows: As of December 31, 2022 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net Customer relationships 8 $ 154,407 $ (82,505) $ 71,902 Trade names 4 10,520 (7,900) 2,620 Software 6 6,022 (3,644) 2,378 Contract royalties 8 1,900 (1,148) 752 Total $ 172,849 $ (95,197) $ 77,652 As of December 31, 2021 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net Customer relationships 10 $ 156,118 $ (64,441) $ 91,677 Trade names 6 10,933 (6,086) 4,847 Software 6 6,223 (2,639) 3,584 Contract royalties 8 1,900 (910) 990 Assembled workforce 3 161 (116) 45 Total $ 175,335 $ (74,192) $ 101,143 All of the intangible assets other than goodwill have finite lives and as such are subject to amortization. Amortization of the other intangible assets is recognized in Depreciation and amortization expense in the consolidated statements of income. The following table presents amortization expense recognized for the periods indicated: For the Years Ended December 31, 2022 2021 2020 Customer relationships $ 18,946 $ 15,399 $ 10,478 Trade names 1,909 842 495 Software 1,086 1,114 1,068 Contract royalties 238 238 238 Assembled workforce 44 53 61 Total $ 22,223 $ 17,646 $ 12,340 Based on the carrying value of the Company’s existing intangible assets as of December 31, 2022, the estimated amortization expense for the future years is as follows: Year ending December 31, Amount 2023 $ 21,727 2024 18,870 2025 15,120 2026 10,973 2027 6,918 Thereafter 4,044 Total $ 77,652 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2022: As of December 31, 2022 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 12,191 $ — $ 12,191 $ — Rights to acquire noncontrolling interest in consolidated subsidiaries 334 — — 334 Total assets measured at fair value on a recurring basis $ 12,525 $ — $ 12,191 $ 334 Foreign exchange derivative liabilities $ 9,350 $ — $ 9,350 $ — Contingent consideration 24,308 — — 24,308 Total liabilities measured at fair value on a recurring basis $ 33,658 $ — $ 9,350 $ 24,308 The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021. As of December 31, 2021 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 1,429 $ — $ 1,429 $ — Rights to acquire noncontrolling interest in consolidated subsidiaries 6,093 — — 6,093 Total assets measured at fair value on a recurring basis $ 7,522 $ — $ 1,429 $ 6,093 Foreign exchange derivative liabilities $ 5,849 $ — $ 5,849 $ — Contingent consideration 23,114 — — 23,114 Total liabilities measured at fair value on a recurring basis $ 28,963 $ — $ 5,849 $ 23,114 The foreign exchange derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange data at the measurement date. See Note 6 “Derivative Financial Instruments” for additional information regarding derivative financial instruments. As part of the acquisition of Emakina, the Company acquired rights to purchase certain noncontrolling interests in consolidated subsidiaries of Emakina in exchange for future cash payments determined by the future profitability of certain subsidiaries. The Company determines the fair value of these rights by (i) estimating the fair value of the noncontrolling interests in consolidated subsidiaries by applying an EBITDA multiple adjusted for a lack of control and marketability, less (ii) the fair value of expected future payments to settle the related contractual obligations. The Company purchased the majority of the noncontrolling interest in consolidated subsidiaries during the year ended December 31, 2022. The Company determines the fair value of the contingent consideration using Monte Carlo simulations or probability-weighted expected return methods. The fair value of the contingent consideration for the PolSource acquisition attributable to future revenues and earnings was measured utilizing a Monte Carlo simulation, based on future revenue and earnings projections of the business, revenue volatility and asset volatility of comparable companies, and a discount rate. The discount rate used to determine the fair value of this contingent consideration was 0.4% as of the acquisition date. The fair value of the contingent consideration for the PolSource acquisition attributable to future operating metrics was measured using a probability-weighted expected return method, based on the expected future payments using the earnout formula and performance targets specified in the purchase agreement and adjusting those estimates to reflect the probability of their achievement. The weighted average estimated future payments were then discounted to present value using a rate based on EPAM’s cost of debt. The discount rate used to determine the fair value of this contingent consideration was 0.4% as of the acquisition date. The fair value of the contingent consideration liabilities for all other acquisitions was determined using a probability-weighted expected return method and is based on the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. Although there is significant judgment involved, the Company believes its estimates and assumptions are reasonable. In determining fair value, the Company considered a variety of factors, including future performance of the acquired businesses using financial projections developed by the Company and market risk assumptions that were derived for revenue growth and earnings before interest and taxes. The Company estimated future payments using the earnout formula and performance targets specified in the purchase agreements and adjusted those estimates to reflect the probability of their achievement. Those weighted average estimated future payments were then discounted to present value using a rate based on the weighted average cost of capital of guideline companies. The discount rate used to determine the fair value of contingent consideration for the 2022 Acquisitions ranged from a minimum of 13.0% to a maximum of 15.0%. The discount rate used to determine the fair value of contingent consideration for the CORE acquisition was 13.0%. The discount rates used to determine the fair value of contingent consideration for the Other 2021 Acquisitions ranged from a minimum of 15.0% to a maximum of 22.0%. The discount rates used to determine the fair value of contingent consideration for the 2020 Acquisitions ranged from a minimum of 15.5% to a maximum of 17.5%. Changes in financial projections, market risk assumptions, discount rates or probability assumptions related to achieving the various earnout criteria would result in a change in the fair value of the recorded contingent liabilities. Such changes, if any, are recorded within Interest and other income/(loss), net in the Company’s consolidated statement of income. A reconciliation of the beginning and ending balances of Level 3 contingent consideration liabilities using significant unobservable inputs for the years ended December 31, 2020, December 31, 2021 and December 31, 2022 are as follows: Amount Contingent consideration liabilities as of January 1, 2020 $ 10,495 Acquisition date fair value of contingent consideration — 2020 Acquisitions 5,292 Changes in fair value of contingent consideration included in Interest and other income/(loss), net 1,827 Payment of contingent consideration for previously acquired businesses (9,619) Effect of net foreign currency exchange rate changes (525) Contingent consideration liabilities as of December 31, 2020 $ 7,470 Acquisition date fair value of contingent consideration — PolSource acquisition 35,400 Acquisition date fair value of contingent consideration — CORE acquisition 4,007 Acquisition date fair value of contingent consideration — Emakina acquisition 213 Acquisition date fair value of contingent consideration — Other 2021 Acquisitions 17,629 Changes in fair value of contingent consideration included in Interest and other income/(loss), net 8,782 Payment of contingent consideration for previously acquired businesses (50,000) Effect of net foreign currency exchange rate changes (387) Contingent consideration liabilities as of December 31, 2021 $ 23,114 Acquisition date fair value of contingent consideration — 2022 Acquisitions 2,645 Changes in fair value of contingent consideration included in Interest and other income/(loss), net 11,101 Payment of contingent consideration for previously acquired businesses (11,328) Effect of net foreign currency exchange rate changes (1,224) Contingent consideration liabilities as of December 31, 2022 $ 24,308 See Note 2, “Impact of the Invasion of Ukraine” for discussion of the nonrecurring level 3 fair value assessment used in the impairment tests of long-lived assets in Russia. Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis Estimates of fair value of financial instruments not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are generally subjective in nature and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The Company uses the following methods to estimate the fair values of its financial instruments: • for financial instruments that have quoted market prices, those quoted prices are used to estimate fair value; • for financial instruments for which no quoted market prices are available, fair value is estimated using information obtained from independent third parties, or by discounting the expected cash flows using an estimated current market interest rate for the financial instrument; • for financial instruments for which no quoted market prices are available and that have no defined maturity, have a remaining maturity of 360 days or less, or reprice frequently to a market rate, the Company assumes that the fair value of these instruments approximates their reported value, after taking into consideration any applicable credit risk. The generally short maturities of certain assets and liabilities result in a number of assets and liabilities for which fair value equals or closely approximates the amount recorded on the Company’s consolidated balance sheets. Such financial assets and liabilities that are not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are cash equivalents, restricted cash, short-term investments, employee loans and debt (Note 10 “Debt”). The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2022 Financial Assets: Cash equivalents: Money market funds $ 312,321 $ 312,321 $ 312,321 $ — $ — Total cash equivalents $ 312,321 $ 312,321 $ 312,321 $ — $ — Restricted cash $ 2,292 $ 2,292 $ 2,292 $ — $ — Time deposits included in Short-term investments $ 60,336 $ 60,336 $ — $ 60,336 $ — Financial Liabilities: Short-term debt $ 2,861 $ 2,861 $ — $ 2,861 $ — Borrowings under 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long-term debt $ 2,693 $ 2,693 $ — $ 2,693 $ — Deferred consideration for asset acquisition $ 53,636 $ 53,636 $ — $ 53,636 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2021 Financial Assets: Cash equivalents: Money market funds $ 78,302 $ 78,302 $ 78,302 $ — $ — Total cash equivalents $ 78,302 $ 78,302 $ 78,302 $ — $ — Restricted cash $ 2,722 $ 2,722 $ 2,722 $ — $ — Employee loans $ 818 $ 818 $ — $ — $ 818 Financial Liabilities: Short-term debt $ 16,018 $ 16,018 $ — $ 16,018 $ — Borrowings under 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long-term debt $ 5,234 $ 5,234 $ — $ 5,234 $ — Non-Marketable Securities Without Readily Determinable Fair Values The Company holds investments in equity securities that do not have readily determinable fair values. These investments are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. The carrying amount of these investments was $28.4 million and $27.5 million as of December 31, 2022 and December 31, 2021, respectively and is classified as Other noncurrent assets in the Company’s consolidated balance sheets. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In the normal course of business, the Company uses derivative financial instruments to manage the risk of fluctuations in foreign currency exchange rates. The Company has a hedging program whereby it enters into a series of foreign exchange forward contracts with durations of twelve months or less that are designated as cash flow hedges of forecasted Polish zloty, Hungarian forint and Indian rupee transactions. During the three months ended March 31, 2022, in response to the invasion of Ukraine, the Company de-designated its Russian ruble foreign exchange forward contracts as hedges and entered into offsetting foreign exchange forward contracts with the same counterparty. The Company determined it was probable the underlying forecasted foreign currency transactions which were hedged would not occur and reclassified the accumulated loss of $43.9 million on the underlying hedges into income which is classified as foreign exchange loss in the consolidated statement of income. The Company measures derivative instruments and hedging activities at fair value and recognizes them as either assets or liabilities in its consolidated balance sheets. Accounting for the gains and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. As of December 31, 2022, all of the Company’s foreign exchange forward contracts, except the Russian ruble foreign exchange forward contracts, were designated as hedges. Derivatives may give rise to credit risks from the possible non-performance by counterparties. The Company has limited its credit risk by entering into derivative transactions only with highly rated financial institutions and by conducting an ongoing evaluation of the creditworthiness of the financial institutions with which the Company does business. There is no financial collateral (including cash collateral) required to be posted by the Company related to the foreign exchange forward contracts. The fair value of foreign currency derivative instruments on the Company’s consolidated balance sheets as of December 31, 2022 and December 31, 2021 were as follows: As of December 31, 2022 As of December 31, 2021 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Prepaid expenses and other current assets $ 12,191 $ 1,429 Accrued expenses and other current liabilities $ 1,445 $ 5,849 Foreign exchange forward contracts - Accrued expenses and other current liabilities $ 7,905 $ — |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: Weighted Average Useful Life As of December 31, 2022 As of December 31, 2021 Computer hardware 3 $ 157,283 $ 167,546 Purchased computer software 5 99,414 33,649 Buildings 44 54,627 55,388 Leasehold improvements 9 32,949 37,828 Furniture, fixture and other equipment 7 22,153 31,961 Office equipment 7 19,039 22,881 Land improvements 18 2,137 2,137 Land n/a 1,339 1,339 Construction in progress n/a 51,502 50,133 440,443 402,862 Less: accumulated depreciation and amortization (167,095) (166,648) Total $ 273,348 $ 236,214 Depreciation and amortization expense related to property and equipment was $69.0 million, $65.5 million and $50.5 million during the years ended December 31, 2022, 2021 and 2020, respectively. The Company has assets which generate lease income including subleases of portions of its office space to third parties. The gross amount of such assets was $3.6 million and $3.3 million, and the associated accumulated depreciation was $0.3 million and $0.2 million as of December 31, 2022 and 2021, respectively. Depreciation expense associated with these assets held under operating leases was $0.1 million for both years ended December 31, 2022 and 2021. The Company owns buildings located in Belarus, which are used in the Company’s normal operations as office space for its employees. On November 17, 2021, the Company acquired an office building in the process of being constructed in Kyiv, Ukraine for $50.1 million. Once completed, the acquired building is intended to be used in the Company’s normal operations as office space for its employees. The office building is classified as construction-in-progress as of December 31, 2022 and due to Russia’s invasion of Ukraine, it is uncertain when this office building will be available for its intended use. See Note 2 “Impact of the Invasion of Ukraine” for more information regarding the assets in Ukraine. During the year ended December 31, 2022, the Company completed an asset acquisition of software licenses for use in the regular course of business for a purchase price of $66.1 million, which includes an upfront payment of $13.3 million and fixed deferred consideration, payable in annual installments, with an acquisition-date fair value of $52.8 million. To estimate fair value, the future payments were discounted to present value using a discount rate based on the estimated borrowing rate of the Company. The weighted average discount rate used to determine the acquisition-date fair value was 5.20%. See Note 16 “Commitments and Contingencies” for more information regarding the deferred consideration. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of December 31, 2022 As of December 31, 2021 Value added taxes payable $ 47,433 $ 49,924 Deferred revenue 36,036 39,810 Contingent consideration, current (Note 5) 18,008 9,405 Other current liabilities and accrued expenses 50,001 42,875 Total $ 151,478 $ 142,014 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the right-of-use assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 to 9.1 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were immaterial for the years ended December 31, 2022, 2021 and 2020. See Note 2 “Impact of the Invasion of Ukraine” for discussion of impairment of right-of-use assets in Russia. During the years ended December 31, 2022, 2021 and 2020, the components of lease expense were as follows: Income Statement Classification Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Operating lease cost Selling, general and administrative expenses $ 51,775 $ 67,144 $ 73,740 Variable lease cost Selling, general and administrative expenses 10,372 8,555 6,461 Short-term lease cost Selling, general and administrative expenses 5,289 2,248 1,169 Total lease cost $ 67,436 $ 77,947 $ 81,370 Supplemental cash flow information related to leases for the years ended December 31, 2022 and 2021 were as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 54,344 $ 68,986 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 35,048 $ 18,590 Non-cash net (decrease)/ increase due to lease modifications: Operating lease right-of-use assets $ (2,934) $ 7,000 Operating lease liabilities $ (4,254) $ 7,062 Weighted average remaining lease terms and discount rates as of December 31, 2022 and 2021, were as follows: As of December 31, 2022 As of December 31, 2021 Weighted average remaining lease term, in years: Operating leases 5.4 5.5 Weighted average discount rate: Operating leases 2.8 % 2.5 % As of December 31, 2022, operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2023 $ 43,813 2024 36,250 2025 28,485 2026 22,321 2027 14,324 Thereafter 28,254 Total lease payments 173,447 Less: imputed interest (10,778) Total $ 162,669 There were no lease agreements that contained material restrictive covenants or material residual value guarantees as of December 31, 2022. There were no material lease agreements signed with related parties as of December 31, 2022. As of December 31, 2022, the Company had committed to payments of $15.7 million related to operating lease agreements that had not yet commenced as of December 31, 2022. These operating leases will commence on various dates during 2023 and 2024 with lease terms ranging from 0.1 to 7.3 years. The Company does not have any material finance lease agreements that had not yet commenced. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Revolving Credit Facility — On October 21, 2021, the Company replaced its 2017 credit facility with a new unsecured credit agreement (the “2021 Credit Agreement”) with PNC Bank, National Association; PNC Capital Markets LLC; Citibank N.A.; Wells Fargo Bank, National Association; Santander Bank, N.A.; and Raiffeisen Bank International AG (collectively the “Lenders”). The 2021 Credit Agreement provides for a revolving credit facility (the “2021 Revolving Facility”) with a borrowing capacity of $700.0 million, with the potential to increase the borrowing capacity up to $1,000.0 million if certain conditions are met. The 2021 Credit Agreement matures on October 21, 2026. Borrowings under the 2021 Revolving Facility may be denominated in U.S. dollars or up to a maximum of $150.0 million equivalent in British pounds sterling, Canadian dollars, euros or Swiss francs and other currencies as may be approved by the administrative agent and the Lenders. Borrowings under the 2021 Revolving Facility bear interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate is equal to the highest of (a) the Overnight Bank Funding Rate, plus 0.5%, (b) the Prime Rate, or (c) the Daily LIBOR Rate, plus 1.0%, so long as the Daily LIBOR Rate is offered, ascertainable and not unlawful. As of December 31, 2022, the Company’s outstanding borrowings are subject to a LIBOR-based interest rate, which resets regularly at issuance, based on lending terms. The 2021 Credit Agreement includes customary business and financial covenants that may restrict the Company’s ability to make or pay dividends (other than certain intercompany dividends) if a potential or an actual event of default has occurred or would be triggered. As of December 31, 2022, the Company was in compliance with all covenants contained in the 2021 Credit Agreement. The following table presents the outstanding debt and borrowing capacity of the Company under the 2021 Credit Agreement as of December 31, 2022 and 2021: As of December 31, 2022 As of December 31, 2021 Outstanding debt $ 25,000 $ 25,000 Interest rate 5.2 % 1.0 % Available borrowing capacity $ 675,000 $ 675,000 Maximum borrowing capacity $ 700,000 $ 700,000 Other Debt - On November 3, 2021, in connection with the acquisition of Emakina, the Company assumed the debt obligations of the acquired companies. As of December 31, 2022, debt that matures within one year is classified as Short-term debt on the consolidated balance sheets and consists of multiple bank loans and credit lines totaling $2.9 million that bear a weighted average interest rate of 1.9%. As of December 31, 2022, debt that matures in more than one year and through 2026 is classified as Long-term debt on the consolidated balance sheets and consists of multiple bank loans and credit lines totaling $2.7 million that bear interest at a weighted average interest rate of 1.3%. Some of this debt is secured by assets of the Company and some of the debt agreements contain covenants. As of December 31, 2022, the Company was in compliance with all those covenants. |
PENSION AND POSTRETIREMENT BENE
PENSION AND POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
PENSION AND POSTRETIREMENT BENEFITS | PENSION AND POSTRETIREMENT BENEFITS Defined Contribution Pension Plans The Company offers defined contribution plans for its employees in certain countries including a 401(k) retirement plan covering substantially all of the Company’s U.S. employees. Employer contributions charged to expense for defined contribution benefit plans for the years ended December 31, 2022, 2021 and 2020, were $29.0 million, $21.3 million, and $16.0 million, respectively. Defined Benefit Pension Plans The Company sponsors defined benefit pension plans for its employees in certain countries as governed by local regulatory requirements. During the years ended December 31, 2022, 2021 and 2020, the Company recorded expense of $8.3 million, $5.5 million and $4.3 million, respectively, related to these plans. The overfunded balance of the Company's defined benefit pension plans is included in Other noncurrent assets in the consolidated balance sheets and the underfunded balance is included in Accrued compensation and benefits expenses for the current portion and Other noncurrent liabilities for the noncurrent portion. As of December 31, 2022 and 2021, the amounts recognized in the Company's consolidated balance sheets for the Company's defined benefit pension plans were as follows: As of As of Assets/(Liabilities) recognized: Other noncurrent assets $ — $ 1,167 Accrued compensation and benefits expenses (832) (561) Other noncurrent liabilities (9,793) (3,489) Funded status $ (10,625) $ (2,883) |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenues are sourced from four geographic markets: Americas, EMEA, APAC and CEE. The Company presents and discusses revenues by customer location based on the location of the specific customer site that it serves, irrespective of the location of the headquarters of the customer or the location of the delivery center where the work is performed. Revenues by customer location is different from revenues by reportable segment as segments are not based on the geographic location of the customers, but instead they are based on the location of the Company’s management responsible for a particular customer or market (see Note 17 “Segment Information”). The Company assigns customers into one of five main industries or a group of various industries where the Company is increasing its presence, which is labeled as “Emerging Verticals.” Emerging Verticals include customers in multiple industries such as energy, utilities, manufacturing, automotive, telecommunications and several others. Disaggregation of Revenues The following tables show the disaggregation of the Company’s revenues by major customer location, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 17 “Segment Information”) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 2,792,156 $ 92,244 $ 2,804 $ 2,887,204 EMEA 95,706 1,642,114 99 1,737,919 APAC 3,837 116,533 — 120,370 CEE 6,855 2,165 70,185 79,205 Revenues $ 2,898,554 $ 1,853,056 $ 73,088 $ 4,824,698 Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 2,145,163 $ 77,351 $ 4,316 $ 2,226,830 EMEA 87,121 1,172,267 329 1,259,717 APAC 3,224 100,335 — 103,559 CEE 6,740 531 160,767 168,038 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 1,546,093 $ 45,553 $ 3,490 $ 1,595,136 EMEA 45,733 834,033 76 879,842 APAC 2,177 67,621 — 69,798 CEE 7,817 98 106,787 114,702 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 The following tables show the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 17 “Segment Information”) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 505,227 $ 571,437 $ 15,560 $ 1,092,224 Financial Services 522,970 460,858 42,858 1,026,686 Business Information & Media 467,664 341,344 944 809,952 Software & Hi-Tech 655,122 136,273 1,866 793,261 Life Sciences & Healthcare 454,102 52,465 800 507,367 Emerging Verticals 293,469 290,679 11,060 595,208 Revenues $ 2,898,554 $ 1,853,056 $ 73,088 $ 4,824,698 Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 359,306 $ 354,041 $ 27,781 $ 741,128 Financial Services 361,611 372,394 114,365 848,370 Business Information & Media 389,613 275,502 1,826 666,941 Software & Hi-Tech 559,707 102,270 2,620 664,597 Life Sciences & Healthcare 340,706 49,900 703 391,309 Emerging Verticals 231,305 196,377 18,117 445,799 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 221,977 $ 220,448 $ 16,364 $ 458,789 Financial Services 199,594 278,355 77,286 555,235 Business Information & Media 334,063 224,922 1,695 560,680 Software & Hi-Tech 419,895 73,288 3,630 496,813 Life Sciences & Healthcare 260,518 35,347 448 296,313 Emerging Verticals 165,773 114,945 10,930 291,648 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 The Company derives revenues from a variety of customized and integrated service arrangements. These contracts may be in the form of time-and-materials or fixed-price arrangements. The following tables show the disaggregation of the Company’s revenues by contract type, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 17 “Segment Information”) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 2,615,213 $ 1,578,786 $ 45,581 $ 4,239,580 Fixed-price 263,603 269,669 27,195 560,467 Licensing and other revenues 19,738 4,601 312 24,651 Revenues $ 2,898,554 $ 1,853,056 $ 73,088 $ 4,824,698 Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,981,696 $ 1,145,606 $ 82,445 $ 3,209,747 Fixed-price 244,249 202,436 82,711 529,396 Licensing and other revenues 16,303 2,442 256 19,001 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,440,635 $ 790,203 $ 60,166 $ 2,291,004 Fixed-price 151,769 151,718 48,525 352,012 Licensing and other revenues 9,416 5,384 1,662 16,462 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Timing of Revenue Recognition The following tables show the revenues disaggregated by timing of revenue recognition and reconciled with the Company’s reportable segments (Note 17 “Segment Information”) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 2,888,342 $ 1,849,011 $ 72,795 $ 4,810,148 Transferred at a point of time 10,212 4,045 293 14,550 Revenues $ 2,898,554 $ 1,853,056 $ 73,088 $ 4,824,698 Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 2,232,308 $ 1,349,956 $ 165,301 $ 3,747,565 Transferred at a point of time 9,940 528 111 10,579 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,595,786 $ 946,379 $ 108,826 $ 2,650,991 Transferred at a point of time 6,034 926 1,527 8,487 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 During the years ended December 31, 2022, 2021 and 2020 the Company recognized $7.5 million, $18.7 million and $5.0 million, respectively, of revenues from performance obligations satisfied in previous periods. The following table includes the estimated revenues expected to be recognized in the future related to performance obligations that are partially or fully unsatisfied as of December 31, 2022. The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts that (i) have an original expected duration of one year or less and (ii) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services provided: Less than 1 year 1 Year 2 Years 3 Years Total Contract Type Fixed-price $ 11,182 $ 2,146 $ 2,145 $ — $ 15,473 The Company applies a practical expedient and does not disclose the amount of the transaction price allocated to the remaining performance obligations nor provide an explanation of when the Company expects to recognize that amount as revenue for certain variable consideration. Contract Balances The following table provides information on the classification of contract assets and liabilities in the consolidated balance sheets: As of December 31, 2022 As of December 31, 2021 Contract assets included in Trade receivables and contract assets $ 11,490 $ 13,798 Contract liabilities included in Accrued expenses and other current liabilities $ 36,036 $ 39,810 Contract liabilities included in Other noncurrent liabilities $ 42 $ 84 Contract assets comprise amounts where the Company’s right to bill is contingent on something other than the passage of time. Contract liabilities comprise amounts collected from the Company’s customers for revenues not yet earned and such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. During the year ended December 31, 2022, the Company recognized $35.4 million of revenues that were included in Accrued expenses and other current liabilities at December 31, 2021. During the year ended December 31, 2021, the Company recognized $16.2 million of revenues that were included in Accrued expenses and other current liabilities at December 31, 2020. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income: For the Years Ended December 31, 2022 2021 2020 Cost of revenues (exclusive of depreciation and amortization) $ 47,470 $ 51,580 $ 32,785 Selling, general and administrative expenses 52,439 60,075 42,453 Total $ 99,909 $ 111,655 $ 75,238 Equity Plans The Company has long-term incentive plans under which 3.564 million shares of common stock are available for issuance to Company personnel and 517 thousand shares of common stock are available for issuance to non-employee directors as of December 31, 2022. All of the awards issued pursuant to the long-term incentive plans expire 10 years from the date of grant. In addition, the Company maintains an Employee Stock Purchase Plan (“ESPP”) to enable eligible employees to purchase shares of EPAM’s common stock at a discount through payroll deductions of up to 10% of their eligible compensation at the end of each designated offering period, which occurs every six months in April and November. The purchase price is equal to 85% of the fair market value of a share of EPAM’s common stock on the first date of an offering or the date of purchase, whichever is lower. As of December 31, 2022, 780 thousand shares of common stock remained available for issuance under the ESPP. Stock Options Stock option activity under the Company’s long-term incentive plans is set forth below: Number of Weighted Average Aggregate Weighted Average Options outstanding as of January 1, 2020 3,323 $ 50.85 $ 536,015 Options granted 158 $ 187.76 Options exercised (700) $ 37.79 Options forfeited (9) $ 119.30 Options outstanding as of December 31, 2020 2,772 $ 61.71 $ 822,152 Options granted 94 $ 410.03 Options exercised (536) $ 49.13 Options forfeited (12) $ 248.74 Options outstanding as of December 31, 2021 2,318 $ 77.79 $ 1,369,132 Options granted 133 $ 277.85 Options exercised (514) $ 44.02 Options forfeited (11) $ 350.19 Options expired (3) $ 128.11 Options outstanding as of December 31, 2022 1,923 $ 98.92 $ 447,503 3.4 Options vested and exercisable as of December 31, 2022 1,627 $ 67.51 $ 425,184 2.6 Options expected to vest as of December 31, 2022 279 $ 270.39 $ 21,357 8.2 The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The model incorporated the following weighted average assumptions: For the Years Ended December 31, 2022 2021 2020 Expected volatility 46.7 % 35.3 % 36.9 % Expected term (in years) 6.24 6.24 6.25 Risk-free interest rate 2.6 % 1.2 % 0.5 % Expected dividends — % — % — % Expected volatility is based on the historical volatility of the Company’s stock price. The expected term represents the period of time that options granted are expected to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve for the periods equal to the expected term of the options in effect at the time of grant. The Company has not declared or paid any dividends on its common stock and does not anticipate paying any dividends in the foreseeable future. The weighted average grant-date fair value of stock options granted during the years ended December 31, 2022, 2021 and 2020 was $134.29, $149.26 and $68.53, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $154.4 million, $251.9 million and $151.3 million, respectively. The Company recognizes the fair value of each option as compensation expense on a straight-line basis over the requisite service period, which is generally the vesting period. The options are typically scheduled to vest over four years from the time of grant, subject to the terms of the applicable plan and stock option agreement. The Company records share-based compensation expense only for those awards that are expected to vest and as such, the Company applies an estimated forfeiture rate at the time of grant and adjusts the forfeiture rate estimate quarterly to reflect actual forfeiture activity. In general, in the event of a participant’s voluntary termination of service, unvested options are forfeited as of the date of such termination without any payment to the participant and the cumulative amount of previously recognized expense related to the forfeited options is reversed. As of December 31, 2022, $23.3 million of total remaining unrecognized compensation cost related to unvested stock options, net of estimated forfeitures, is expected to be recognized over a weighted average period of 2.6 years. Restricted Stock and Restricted Stock Units The Company grants restricted stock units (“RSUs”) to Company personnel and non-employee directors. In addition, the Company has issued in the past, and may issue in the future, equity awards to compensate employees of acquired businesses for future services. Equity settled awards granted in connection with acquisitions of businesses may be issued in the form of service-based awards requiring continuing employment with the Company, restricted stock subject to trading restrictions, and performance-based awards, which would vest only if certain specified performance and service conditions are met. The awards issued in connection with acquisitions of businesses are subject to the terms and conditions contained in the applicable award agreements and acquisition documents. Service-Based Awards The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the years ended December 31, 2022, 2021 and 2020: Equity-Classified Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Unvested service-based awards outstanding as of January 1, 2020 10 $ 162.96 759 $ 122.48 242 $ 105.40 Awards granted — $ — 294 $ 204.57 60 $ 181.77 Awards modified — $ — (1) $ 122.55 — $ — Awards vested (1) $ 63.10 (317) $ 108.87 (122) $ 91.39 Awards forfeited — $ — (49) $ 148.11 (5) $ 113.94 Unvested service-based awards outstanding as of December 31, 2020 9 $ 167.18 686 $ 162.15 175 $ 141.16 Awards granted — $ — 238 $ 429.41 27 $ 394.24 Awards modified — $ — — $ — — $ — Awards vested — $ — (308) $ 139.83 (86) $ 118.05 Awards forfeited — $ — (40) $ 264.48 (4) $ 210.26 Unvested service-based awards outstanding as of December 31, 2021 9 $ 167.18 576 $ 277.38 112 $ 217.28 Awards granted — $ — 655 $ 287.13 51 $ 269.60 Awards modified — $ — (3) $ 387.74 3 $ 220.00 Awards vested (9) $ 167.18 (244) $ 235.96 (56) $ 184.96 Awards forfeited — $ — (68) $ 328.81 (11) $ 260.59 Unvested service-based awards outstanding as of December 31, 2022 — $ — 916 $ 291.19 99 $ 257.74 The fair value of vested service-based awards (measured at the vesting date) for the years ended December 31, 2022, 2021 and 2020 was as follows: For the Years Ended December 31, 2022 2021 2020 Equity-classified equity-settled Restricted stock $ 3,990 $ — $ 101 Restricted stock units 69,510 129,527 60,042 Liability-classified cash-settled Restricted stock units 16,238 33,947 22,014 Total fair value of vested service-based awards $ 89,738 $ 163,474 $ 82,157 As of December 31, 2022, $183.9 million of total remaining unrecognized stock-based compensation costs related to service-based equity-classified RSUs, net of estimated forfeitures, is expected to be recognized over the weighted average remaining requisite service period of 2.8 years. As of December 31, 2022, $20.0 million of total remaining unrecognized stock-based compensation costs related to service-based liability-classified RSUs, net of estimated forfeitures, is expected to be recognized over the weighted average remaining requisite service period of 2.4 years. The liability associated with the Company’s service-based liability-classified RSUs as of December 31, 2022 and 2021 was $10.2 million and $31.5 million, respectively, and is classified as Accrued compensation and benefits expenses in the consolidated balance sheets. Performance-Based Awards The table below summarizes activity related to the Company’s performance-based awards for the years ended December 31, 2022, 2021 and 2020: Equity-Classified Equity-Classified Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Unvested performance-based awards outstanding as of January 1, 2020 9 $ 165.87 — $ — Awards granted — $ — 31 $ 210.44 Awards vested — $ — (10) $ 177.81 Unvested performance-based awards outstanding as of December 31, 2020 9 $ 165.87 21 $ 227.16 Awards granted — $ — 8 $ 574.98 Awards vested — $ — (4) $ 177.81 Awards forfeited — $ — (2) $ 334.78 Unvested performance-based awards outstanding as of December 31, 2021 9 $ 165.87 23 $ 339.69 Awards granted — $ — 6 $ 418.26 Awards vested — $ — (9) $ 238.96 Awards forfeited — $ — (5) $ 377.87 Unvested performance-based awards outstanding as of December 31, 2022 9 $ 165.87 15 $ 412.60 As of December 31, 2022, $0.3 million of total remaining unrecognized stock-based compensation costs related to performance-based equity-classified restricted stock is expected to be recognized over the weighted average remaining requisite service period of 0.7 years. As of December 31, 2022, $3.6 million of total remaining unrecognized stock-based compensation cost related to performance-based equity-classified RSUs is expected to be recognized over the weighted average remaining requisite service period of 2.3 years. The fair value of vested performance-based awards (measured at the vesting date) for the years ended December 31, 2022, 2021 and 2020 was as follows: For the Years Ended December 31, 2022 2021 2020 Equity-classified equity-settled Restricted stock units $ 2,914 $ 2,215 $ 3,282 Total fair value of vested performance-based awards $ 2,914 $ 2,215 $ 3,282 Employee Stock Purchase Plan The ESPP enables eligible employees to purchase shares of EPAM’s common stock at a discount at the end of each designated offering period, which occurs every six months in April and November. The Company recognizes compensation expense related to shares issued pursuant to the ESPP on a straight-line basis over the six-months offering period. The Company uses the Black-Scholes option pricing model to calculate the fair value of shares issued under the ESPP. The Black-Scholes model relies on a number of key assumptions to calculate estimated fair values. The model incorporated the following weighted average assumptions for the years ended December 31, 2022 and 2021: For the Years Ended December 31, 2022 2021 Expected volatility 86.8 % 23.1 % Expected term (in years) 0.50 0.50 Risk-free interest rate 3.0 % 0.1 % Expected dividends — % — % Expected volatility is based on the historical volatility of the Company’s stock price. The expected term represents the purchase period for the ESPP. The risk-free rate is based on the U.S. Treasury yield curve for the period equal to the expected term in effect at the time of grant. The Company has not declared or paid any dividends on its common stock and does not anticipate paying any dividends in the foreseeable future. During the year ended December 31, 2022, the weighted average price per share was $315.60 and the weighted average grant-date fair value per share was $119.76. During the year ended December 31, 2022, the ESPP participants purchased 120 thousand shares of common stock under the ESPP and the Company recognized $13.9 million of stock-based compensation expense related to the ESPP. As of December 31, 2022, total unrecognized stock-based compensation cost related to the ESPP was $4.4 million, which is expected to be recognized over a period of 0.33 years. During the year ended December 31, 2021, the weighted average price per share was $659.65 and the weighted average grant-date fair value per share was $141.86. As of December 31, 2021, no purchases were made under the ESPP. For the year ended December 31, 2021, the Company recognized $1.2 million of stock-based compensation expense related to the ESPP. As of December 31, 2021, total unrecognized stock-based compensation cost related to the ESPP was $2.3 million, which is expected to be recognized over a period of 0.33 years. Commitments for Future Equity Awards In connection with the Company’s acquisitions of businesses as discussed in Note 3 “Acquisitions”, EPAM enters into agreements that contractually commit it to granting equity awards at future dates. The agreements are unique to each acquisition and terms vary to specify the number of future awards to be issued or a monetary value that will be settled with equity awards valued at future stock prices. As of December 31, 2022, the Company has commitments to grant up to $25.6 million of equity awards with the number of awards to be determined based on future stock prices. There is a service-based vesting requirement associated with these awards and certain of these awards contain performance criteria that will determine the amount of future awards to be issued. These awards are considered granted for accounting purposes. In determining the expense, the Company adjusts the expected settlement based on the probability of achievement of such performance criteria. Related to these awards, the amount of stock-based compensation expense recorded in the consolidated statements of income for the years ended December 31, 2022, 2021 and 2020 was not material. As of December 31, 2022, the Company has issued 2 thousand performance-based equity-classified RSUs which are not considered granted for accounting purposes as the future vesting conditions have not yet been determined. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Before Provision for Income Taxes Income before provision for income taxes based on geographic location is disclosed in the table below: For the Years Ended December 31, 2022 2021 2020 Income before provision for income taxes: United States $ 78,564 $ 128,498 $ 100,411 Foreign 428,694 404,894 278,068 Total $ 507,258 $ 533,392 $ 378,479 Provision for Income Taxes The provision for income taxes consists of the following: For the Years Ended December 31, 2022 2021 2020 Current Federal $ 20,044 $ 22,742 $ 19,249 State 10,116 6,735 7,022 Foreign 99,847 69,162 45,042 Deferred Federal (26,379) (40,421) (16,235) State (3,483) (2,576) (1,682) Foreign (12,303) (3,902) (2,077) Total $ 87,842 $ 51,740 $ 51,319 As part of the U.S. Tax Act, as determined as of December 31, 2017, the Company was required to make annual installment payments for the one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8.0% on the remaining earnings. As of December 31, 2022, the remaining unpaid balance of this one-time transition tax was $34.3 million to be paid in annual installments with the final payment due in 2025. As of December 31, 2022, the Company had approximately $1.522 billion of accumulated undistributed foreign earnings that are expected to be indefinitely reinvested. Due to the enactment of the U.S. Tax Act and the one-time transition tax on accumulated foreign subsidiary earnings, these accumulated foreign earnings are no longer expected to be subject to U.S. federal income tax if repatriated but could be subject to state and foreign income and withholding taxes. Effective Tax Rate Reconciliation The reconciliation of the provision for income taxes at the federal statutory income tax rate to the Company’s effective income tax rate is as follows: For the Years Ended December 31, 2022 2021 2020 Provision for income taxes at federal statutory rate $ 106,514 $ 112,016 $ 79,481 Increase/(decrease) in taxes resulting from: GILTI and BEAT U.S. taxes 355 229 191 Excess tax benefits relating to stock-based compensation (35,119) (71,628) (36,646) Foreign tax expense and tax rate differential 4,902 (206) (387) Effect of permanent differences 7,812 4,756 3,507 State taxes, net of federal benefit 9,323 9,192 5,323 Stock-based compensation expense 3,869 1,102 44 Impact of election to change entity classification (8,264) — — Tax credits (2,876) (4,100) — Other 1,326 379 (194) Provision for income taxes $ 87,842 $ 51,740 $ 51,319 The Company’s worldwide effective tax rate for the years ended December 31, 2022, 2021 and 2020 was 17.3%, 9.7% and 13.6%, respectively. The provision for income taxes in the year ended December 31, 2022 was favorably impacted by the recognition of $8.3 million of net deferred tax assets resulting from the Company’s decision to change the tax status and to classify certain of its foreign subsidiaries as disregarded for U.S. income tax purposes. The provision for income taxes in the year ended December 31, 2022 was unfavorably impacted by a charge of $7.6 million associated with changes to certain U.S. tax regulations causing an increase in net foreign tax expense. In addition, the Company recorded excess tax benefits upon vesting or exercise of stock-based awards of $35.1 million, $71.6 million and $36.6 million during the years ended December 31, 2022, 2021 and 2020, respectively. In Belarus, member technology companies of High-Technologies Park, including the Company’s local subsidiary, have a full exemption from Belarus income tax on qualifying income through January 2049. However, beginning February 1, 2018, the earnings of the Company’s Belarus local subsidiary became subject to U. S. income taxation due to the Company’s decision to change the tax status of the subsidiary. There was no aggregate dollar benefit derived or impact on diluted net income per share from this tax holiday for the years ended December 31, 2022, 2021 and 2020. Deferred Income Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2022 As of December 31, 2021 Deferred tax assets: Property and equipment $ 11,587 $ 10,561 Accrued expenses 87,816 83,416 Accrued sales discounts 9,185 7,338 Stock-based compensation 33,078 31,959 Operating lease liabilities 43,662 52,806 R&D capitalization 36,915 — Deferred consideration 14,030 — Foreign currency exchange 11,284 11,750 Other 19,955 21,583 Deferred tax assets $ 267,512 $ 219,413 Less: valuation allowance (6,728) (4,538) Total deferred tax assets $ 260,784 $ 214,875 Deferred tax liabilities: Property and equipment $ 15,324 $ 1,095 Intangible assets 24,523 26,124 Operating lease right-of-use assets 42,211 51,871 U.S. taxation of foreign subsidiaries 11,465 3,770 Other 7,232 6,402 Total deferred tax liabilities $ 100,755 $ 89,262 Net deferred tax assets $ 160,029 $ 125,613 As of December 31, 2022 and 2021, the Company classified $12.8 million and $18.3 million, respectively, of deferred tax liabilities as Other noncurrent liabilities in the consolidated balance sheets. Included in the stock-based compensation expense deferred tax asset at December 31, 2022 and 2021 is $4.6 million and $5.4 million, respectively, that is related to acquisitions and is amortized for tax purposes over a 10 to 15-year period. As of December 31, 2022, the Company’s domestic and foreign net operating loss (“NOL”) carryforwards for income tax purposes were approximately $3.9 million and $32.3 million, respectively. If not utilized, the domestic NOL carryforwards will begin to expire in 2023. The foreign NOL carryforwards include $22.4 million from jurisdictions with no expiration date, with the remainder expiring as follows: $1.1 million in 2023, $1.9 million in 2024, $2.7 million in 2025, $1.3 million in 2026, $2.5 million in 2027, and $0.4 million beyond 2027. The Company maintains a valuation allowance primarily related to the net operating loss carryforwards in certain foreign jurisdictions that the Company believes are not likely to be realized, which totaled $30.8 million as of December 31, 2022. Unrecognized Tax Benefits As of December 31, 2022 and 2021, the total amount of gross unrecognized tax benefits was $7.9 million and $8.2 million, respectively. These amounts represent the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods and are included in Income taxes payable, noncurrent within the consolidated balance sheets. The Company’s policy is to recognize interest and penalties related to uncertain tax positions as a component of its provision for income taxes. As of December 31, 2022 and 2021, the Company accrued $0.7 million and $0.6 million respectively, of interest and penalties resulting from such unrecognized tax benefits. A reconciliation of the beginning and ending balances of the gross unrecognized tax benefits changes for the years ended December 31, 2022, December 31, 2021 and December 31, 2020 are as follows: For the Years Ended December 31, 2022 2021 2020 Beginning Balance $ 8,155 $ 3,317 $ 2,914 Increases in tax positions from current year 4,739 5,310 902 Increases in tax positions from acquisitions 393 — — Increases in tax positions from prior years 2,447 1,350 — Decreases in tax positions from prior years (6,945) — — Decreases due to lapse of statute of limitations (1,121) (1,298) (528) Currency 197 (524) 29 Ending Balance $ 7,865 $ 8,155 $ 3,317 There were no tax positions for which it was reasonably possible that unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. The Company is subject to taxation in the United States and various states and foreign jurisdictions including Germany, Ukraine, the United Kingdom, Hungary, Switzerland, Netherlands, Poland, India, and Mexico. With few exceptions, as of December 31, 2022, the Company is no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2018. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREBasic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. For purposes of computing basic earnings per share, any nonvested shares of restricted stock that have been issued by the Company and are contingently returnable to the Company are excluded from the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock, unvested equity-settled RSUs and the stock to be issued under the Company’s ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share of common stock as follows: For the Years Ended December 31, 2022 2021 2020 Numerator for basic and diluted earnings per share: Net income $ 419,416 $ 481,652 $ 327,160 Numerator for basic and diluted earnings per share $ 419,416 $ 481,652 $ 327,160 Denominator: Weighted average common shares for basic earnings per share 57,291 56,511 55,727 Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP 1,878 2,553 2,719 Weighted average common shares for diluted earnings per share 59,169 59,064 58,446 Net Income per share: Basic $ 7.32 $ 8.52 $ 5.87 Diluted $ 7.09 $ 8.15 $ 5.60 The number of shares underlying equity-based awards that were excluded from the calculation of diluted earnings per share as their effect would be anti-dilutive was 264 thousand, 32 thousand and 40 thousand for the years ended December 31, 2022, 2021 and 2020, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Indemnification Obligations — In the normal course of business, the Company is a party to a variety of agreements under which it may be obligated to indemnify the other party for certain matters. These obligations typically arise in contracts where the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations or covenants for certain matters, infringement of third-party intellectual property rights, data privacy violations, and certain tortious conduct in the course of providing services. The duration of these indemnifications varies, and in certain cases, is indefinite. The Company is unable to reasonably estimate the maximum potential amount of future payments under these or similar agreements due to the unique facts and circumstances of each agreement and the fact that certain indemnifications provide for no limitation to the maximum potential future payments under the indemnification. Management is not aware of any such matters that would have a material effect on the consolidated financial statements of the Company. Litigation — From time to time, the Company is involved in litigation, claims or other contingencies arising in the ordinary course of business. The Company accrues 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, the Company does not record a liability, but instead discloses 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, if decided adversely, is not expected to have a material effect on the Company’s business, financial condition, results of operations or cash flows. Ukraine Humanitarian Commitment — On March 4, 2022, EPAM announced that it has established a $100.0 million humanitarian commitment to support its employees in Ukraine and their families. See Note 2 “Impact of the Invasion of Ukraine” for more information regarding commitments to humanitarian aid for Ukraine. Deferred Consideration — During the year ended December 31, 2022, the Company purchased software licenses for use in the regular course of business in exchange for an upfront payment and fixed, future annual payments due over the next 4 years. As of December 31, 2022, the undiscounted deferred consideration amounts owed totaled approximately $60.0 million and are expected to be paid as follows: $14.2 million in 2023, $14.0 million in 2024, $15.1 million in 2025, and $16.7 million in 2026. See Note 7 “Property and Equipment, Net” for more information regarding the purchase of software licenses. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company determines its business segments and reports segment information in accordance with how the Company’s chief operating decision maker (“CODM”) organizes the segments to evaluate performance, allocate resources and make business decisions. Segment results are based on the segment’s revenues and operating profit, where segment operating profit is defined as income from operations before unallocated costs. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as an allocation of certain shared services expenses. Certain corporate expenses are not allocated to specific segments as these expenses are not controllable at the segment level. Such expenses include certain types of professional fees, certain taxes included in operating expenses, compensation to non-employee directors and certain other general and administrative expenses, including compensation of specific groups of non-production employees. In addition, the Company does not allocate amortization of intangible assets acquired through business combinations, goodwill and other asset impairment charges, stock-based compensation expenses, acquisition-related costs and certain other one-time charges and benefits. These unallocated amounts are combined with total segment operating profit to arrive at consolidated income from operations as reported below in the reconciliation of segment operating profit to consolidated income before provision for income taxes. Additionally, management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments. The Company manages its business primarily based on the managerial responsibility for its client base and market. As managerial responsibility for a particular customer relationship generally correlates with the customer’s geographic location, there is a high degree of similarity between customer locations and the geographic boundaries of the Company’s reportable segments. In some cases, managerial responsibility for a particular customer is assigned to a management team in another region and is usually based on the strength of the relationship between customer executives and particular members of EPAM’s senior management team. In such cases, the customer’s activity would be reported through the respective management team member’s reportable segment. See Note 2 “Impact of the Invasion of Ukraine” for more information regarding the Company’s decisions to no longer serve customers in Russia and the subsequent decision to exit its operations in Russia. Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows: For the Years Ended December 31, 2022 2021 2020 Segment revenues: North America $ 2,898,554 $ 2,242,248 $ 1,601,820 Europe 1,853,056 1,350,484 947,305 Russia 73,088 165,412 110,353 Total revenues $ 4,824,698 $ 3,758,144 $ 2,659,478 Segment operating profit/(loss): North America $ 589,412 $ 462,798 $ 345,196 Europe 223,276 233,727 152,902 Russia (13,460) 32,547 5,811 Total segment operating profit $ 799,228 $ 729,072 $ 503,909 Intersegment transactions were excluded from the above on the basis that they are neither included in the measure of a segment’s profit and loss results, nor considered by the CODM during the review of segment results. There were no customers individually exceeding 10% of our total segment revenues for the years ended December 31, 2022, 2021 and 2020. Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2022 2021 2020 Total segment operating profit: $ 799,228 $ 729,072 $ 503,909 Unallocated costs: Stock-based compensation expense (99,909) (111,655) (75,238) Amortization of purchased intangibles (22,223) (17,646) (12,340) Other acquisition-related expenses (1,537) (6,397) (1,868) Other unallocated costs (102,593) (51,058) (35,139) Income from operations 572,966 542,316 379,324 Interest and other income/(loss), net 10,025 (1,727) 3,822 Foreign exchange loss (75,733) (7,197) (4,667) Income before provision for income taxes $ 507,258 $ 533,392 $ 378,479 Geographic Area Information Long-lived assets include property and equipment, net of accumulated depreciation and amortization, and management has determined that it is not practical to allocate these assets by segment since such assets are used interchangeably among the segments. Physical locations and values of the Company’s long-lived assets are presented below: As of December 31, 2022 As of December 31, 2021 As of December 31, 2020 Ukraine $ 70,183 $ 78,289 $ 30,980 United States 68,804 14,843 15,718 Belarus 57,311 75,422 73,988 Poland 14,685 8,240 5,434 Hungary 8,552 5,339 5,365 India 8,506 9,459 7,079 Russia — 16,611 15,036 Other 45,307 28,011 15,933 Total $ 273,348 $ 236,214 $ 169,533 The table below presents the Company’s revenues by customer location for the years ended December 31, 2022, 2021 and 2020: For the Years Ended December 31, 2022 2021 2020 United States $ 2,761,050 $ 2,125,301 $ 1,523,731 United Kingdom 619,305 474,941 331,217 Switzerland 323,424 271,208 203,391 Netherlands 215,444 154,816 114,678 Germany 161,758 113,727 84,902 Canada 114,910 96,646 68,416 Russia 64,745 155,186 104,846 Other locations 564,062 366,319 228,297 Revenues $ 4,824,698 $ 3,758,144 $ 2,659,478 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss: For the Years Ended December 31, 2022 2021 2020 Foreign currency translation Beginning balance $ (52,747) $ (28,168) $ (32,666) Foreign currency translation (45,295) (29,323) 5,802 Income tax (expense)/ benefit (3,738) 4,744 (1,304) Foreign currency translation, net of tax (49,033) (24,579) 4,498 Ending balance $ (101,780) $ (52,747) $ (28,168) Cash flow hedging instruments Beginning balance $ (3,417) $ 3,642 $ 1,292 Unrealized (loss)/ gain in fair value (49,233) (13,781) 8,076 Net loss/ (gain) reclassified into Cost of revenues (exclusive of depreciation and amortization) 20,331 4,649 (5,031) Net loss reclassified into Foreign exchange loss 44,067 — — Income tax (expense)/ benefit (3,442) 2,073 (695) Cash flow hedging instruments, net of tax 11,723 (7,059) 2,350 Ending balance (1) $ 8,306 $ (3,417) $ 3,642 Defined benefit plans Beginning balance $ 1,957 $ (986) $ — Actuarial (losses)/ gains (4,892) 3,805 (1,275) Income tax benefit/ (expense) 1,088 (862) 289 Defined benefit plans, net of tax (3,804) 2,943 (986) Ending balance $ (1,847) $ 1,957 $ (986) Accumulated other comprehensive loss $ (95,321) $ (54,207) $ (25,512) (1) As of December 31, 2022, the ending balance of net unrealized gain related to derivatives designated as cash flow hedges is expected to be reclassified into Cost of revenues (exclusive of depreciation and amortization) in the next twelve months. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn February 13, 2023, the Board of Directors authorized a repurchase program for up to $500 million of the Company's outstanding common stock. EPAM may repurchase shares of its common stock on a discretionary basis from time to time through open market purchases, privately negotiated transactions or other means, including through the use of trading plans intended to qualify under Rule 10b5-1. The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The share repurchase program will have a term of 24 months, may be suspended or discontinued at any time, and does not obligate the company to acquire any amount of common stock. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 (In thousands) Balance at Additions Deductions/ Balance at End of Year Year Ended December 31, 2022 Allowance for doubtful accounts for trade receivables and contract assets $ 5,521 14,419 (4,630) $ 15,310 Valuation allowance on deferred tax assets $ 4,537 — 2,191 $ 6,728 Year Ended December 31, 2021 Allowance for doubtful accounts for trade receivables and contract assets $ 4,886 3,888 (3,253) $ 5,521 Valuation allowance on deferred tax assets $ 5,485 — (948) $ 4,537 Year Ended December 31, 2020 Allowance for doubtful accounts for trade receivables and contract assets $ 3,210 3,282 (1,606) $ 4,886 Valuation allowance on deferred tax assets $ 3,877 1,608 — $ 5,485 |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations | EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading digital transformation services and product engineering company, providing digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, and Asia. The Company’s industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as several other industries. The Company is incorporated in Delaware with headquarters in Newtown, Pennsylvania. |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the financial statements of EPAM and its subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as revenues and expenses during the reporting period. The Company bases its estimates and judgments on historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results could differ from those estimates, and such differences may be material to the financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash equivalents are short-term, highly liquid investments and deposits that are readily convertible into cash, with maturities of three months or less at the date acquired. Highly liquid investments with maturities greater than three months at the date acquired are reported separately from cash equivalents. |
Trade Receivables and Contract Assets | Trade Receivables and Contract Assets — The Company classifies its right to consideration in exchange for deliverables as either a trade receivable or a contract asset. A trade receivable is a right to consideration that is unconditional (i.e., only the passage of time is required before payment is due) regardless of whether the amounts have been billed. Trade receivables are stated net of allowance for doubtful accounts. Outstanding trade receivables are reviewed periodically and allowances are provided for the estimated amount of receivables that may not be collected. The allowance for doubtful accounts is determined based on historical experience and management’s evaluation of trade receivables. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets primarily relate to unbilled amounts on fixed-price contracts. Contract assets are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. The Company recognizes an impairment loss when the contract carrying amount is greater than the remaining consideration receivable, less directly related costs to be incurred. |
Property and Equipment | Property and Equipment — Property and equipment acquired in the ordinary course of the Company’s operations are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets generally ranging from two |
Business Combinations | Business Combinations — The Company accounts for business combinations using the acquisition method which requires it to estimate the fair value of identifiable assets acquired and liabilities assumed, including any contingent consideration, to properly allocate the purchase price to the individual assets acquired and liabilities assumed in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations . The allocation of the purchase price utilizes significant estimates in determining the fair values of identifiable assets acquired and liabilities assumed, especially with respect to intangible assets. The significant estimates and assumptions used include the timing and amount of forecasted revenues and cash flows, anticipated growth rates, customer attrition rates, the discount rate reflecting the risk inherent in future cash flows and the useful lives for finite-lived assets. There are different valuation models for each component, the selection of which requires considerable judgment. These determinations will affect the amount of amortization expense recognized in future periods. The Company bases its fair value estimates on assumptions it believes are reasonable but recognizes that the assumptions are inherently uncertain. The acquired assets typically include customer relationships, software, trade names, non-competition agreements, and assembled workforce and as a result, a substantial portion of the purchase price is allocated to goodwill and other intangible assets. |
Long-Lived Assets | Long-Lived Assets — Long-lived assets, such as property and equipment and finite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the carrying value of an asset is more than the sum of the undiscounted expected future cash flows, an impairment is recognized. An impairment loss is measured as the excess of the asset’s carrying amount over its fair value. Intangible assets that have finite useful lives are amortized over their estimated useful lives on a straight-line basis. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets — Goodwill and other intangible assets that have indefinite useful lives are accounted for in accordance with FASB ASC 350, Intangibles — Goodwill and Other . The Company conducts its evaluation of goodwill impairment at the reporting unit level on an annual basis as of October 31st, and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. A reporting unit is an operating segment or one level below. The Company does not have intangible assets other than goodwill that have indefinite useful lives. |
Derivative Financial Instruments | Derivative Financial Instruments — The Company enters into derivative financial instruments to manage exposure to fluctuations in certain foreign currencies. The Company measures these foreign currency derivative contracts at fair value on a recurring basis utilizing Level 2 inputs and recognizes them as either assets or liabilities in its consolidated balance sheets. The Company records changes in the fair value of these hedges in accumulated other comprehensive loss until the forecasted transaction occurs. When the forecasted transaction occurs, the Company reclassifies the related gain or loss on the cash flow hedge to cost of revenues (exclusive of depreciation and amortization). In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the Company reclassifies the gain or loss on the underlying hedge into income. If the Company does not elect hedge accounting, or the contract does not qualify for hedge accounting treatment, the changes in fair value from period to period are recorded in income. The cash flow impact of derivatives identified as hedging instruments is reflected as cash flows from operating activities. The cash flow impact of derivatives not identified as hedging instruments is reflected as cash flows from investing activities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company makes assumptions about fair values of its financial assets and liabilities in accordance with FASB ASC Topic 820, Fair Value Measurement , and utilizes the following fair value hierarchy in determining inputs used for valuation: Level 1 — Quoted prices for identical assets or liabilities in active markets. Level 2 — Inputs other than quoted prices within Level 1 that are observable either directly or indirectly, including quoted prices in markets that are not active, quoted prices in active markets for similar assets or liabilities, and observable inputs other than quoted prices such as interest rates or yield curves. Level 3 — Unobservable inputs reflecting management’s view about the assumptions that market participants would use in pricing the asset or liability. Where the fair values of financial assets and liabilities recorded in the consolidated balance sheets cannot be derived from an active market, they are determined using a variety of valuation techniques. These valuation techniques include a net present value technique, comparison to similar instruments with market observable inputs, option pricing models and other relevant valuation models. To the extent possible, observable market data is used as inputs into these models but when it is not feasible, a degree of judgment is required to establish fair values. Changes in the fair value of liabilities could cause a material impact to, and volatility in the Company’s operating results. See Note 5 “Fair Value Measurements.” |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss — Accumulated other comprehensive loss consists of changes in the cumulative foreign currency translation adjustments and actuarial gains and losses on defined benefit pension plans. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with FASB ASC Topic 815, Derivatives and Hedging. |
Revenue Recognition | Revenue Recognition — The Company recognizes revenue in accordance with ASC 606 which requires entities to recognize revenue to depict the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services as well as requires additional disclosure about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company recognizes revenues when control of goods or services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Such control may be transferred over time or at a point in time depending on satisfaction of obligations stipulated by the contract. Consideration expected to be received may consist of both fixed and variable components and is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. Variable consideration usually takes the form of volume-based discounts, service level credits, price concessions or incentives. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The Company derives revenues from a variety of service arrangements, which have been evolving to provide more customized and integrated solutions to customers by combining software engineering with customer experience design, business consulting and technology innovation services. Fees for these contracts may be in the form of time-and-materials or fixed-price arrangements. The Company generates the majority of its revenues under time-and-material contracts, which are billed using hourly, daily or monthly rates to determine the amounts to be charged directly to the customer. The Company applies a practical expedient and revenues related to time-and-material contracts are recognized based on the right to invoice for services performed. Fixed-price contracts include maintenance and support arrangements which may exceed one year in duration. Maintenance and support arrangements generally relate to the provision of ongoing services and revenues for such contracts are recognized ratably over the expected service period. Fixed-price contracts also include application development arrangements, where progress towards satisfaction of the performance obligation is measured using input or output methods and input methods are used only when there is a direct correlation between hours incurred and the end product delivered. Assumptions, risks and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables and deferred revenues at each reporting period. Revenues from licenses which have significant stand-alone functionality are recognized at a point in time when control of the license is transferred to the customer. Revenues from licenses which do not have stand-alone functionality are recognized over time. If there is an uncertainty about the receipt of payment for the services, revenue recognition is deferred until the uncertainty is sufficiently resolved. The Company applies a practical expedient and does not assess the existence of a significant financing component if the period between transfer of the service to a customer and when the customer pays for that service is one year or less. The Company reports gross reimbursable “out-of-pocket” expenses incurred as both revenues and cost of revenues in the consolidated statements of income and comprehensive income. |
Cost of Revenues (Exclusive of Depreciation and Amortization) | Cost of Revenues (Exclusive of Depreciation and Amortization) — Consists principally of salaries, bonuses, fringe benefits, stock-based compensation, project related travel costs and fees for subcontractors that are assigned to customer projects. Salaries and other compensation expenses of the Company’s delivery professionals are reported as cost of revenues regardless of whether the employees are actually performing customer services during a given period. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses — Consists of expenses associated with promoting and selling the Company’s services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising and other promotional activities, and certain non-income taxes. |
Stock-based Compensation | Stock-Based Compensation — The Company recognizes the cost of its equity settled stock-based incentive awards based on the fair value of the award at the date of grant, net of estimated forfeitures. The fair value of these awards at the date of grant is generally based on the grant-date price of the company's shares. The grant date fair value for stock options and stock purchase rights under the Employee Stock Purchase Plan (”ESPP”) is estimated using the Black-Scholes option-pricing valuation model. The cost is generally expensed evenly over the service period, unless otherwise specified by the award agreement. The service period is the period over which the employee performs the related services, which is normally the same as the vesting period. Equity-based awards that do not require future service are expensed immediately. For awards with performance conditions, the amount of compensation cost we recognize over the requisite service period is based on the actual or expected achievement of the performance condition. Quarterly, the forfeiture assumption is adjusted to reflect actual forfeitures and such adjustment may affect the timing of recognition of the total amount of expense recognized over the vesting period. Stock-based awards that do not meet the criteria for equity classification are recorded as liabilities and adjusted to fair value at the end of each reporting period. |
Income Taxes | Income Taxes — The provision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences between the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in the period of changes. The realizability of deferred tax assets is primarily dependent on future earnings. The Company evaluates the realizability of deferred tax assets and recognizes a valuation allowance when it is more likely than not that all, or a portion of, deferred tax assets will not be realized. A reduction in estimated forecasted results may require that we record valuation allowances against deferred tax assets. Once a valuation allowance has been established, it will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that the deferred tax assets will be realized. A pattern of sustained profitability will generally be considered as sufficient positive evidence to reverse a valuation allowance. If the allowance is reversed in a future period, the income tax provision will be correspondingly reduced. Accordingly, the increase and decrease of valuation allowances could have a significant negative or positive impact on future earnings. |
Earnings Per Share ("EPS") | Earnings per Share (“EPS”) — Basic EPS is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding during the period, increased by the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, unvested restricted stock, unvested restricted stock units (“RSUs”) and the stock to be issued under the ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. |
Foreign Currency Translation and Remeasurement | Foreign Currency Translation and Remeasurement — Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at daily exchange rates. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of Accumulated other comprehensive loss. For consolidated foreign subsidiaries whose functional currency is not the local currency, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur. |
Risks and Uncertainties | Risks and Uncertainties — As a result of its global operations, the Company may be subject to certain inherent risks. Concentration of Credit — Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, short-term investments and trade receivables. The Company maintains cash, cash equivalents and short-term investments with financial institutions. The Company believes its credit policies reflect normal industry terms and business risk and there is no expectation of non-performance by the counterparties. The Company has cash in countries, including Ukraine, Russia and Belarus, which have been impacted by the invasion of Ukraine (see Note 2 “Impact of the Invasion of Ukraine”) and where the banking sector remains subject to periodic instability, banking and other financial systems generally do not meet the banking standards of more developed markets, and bank deposits made by corporate entities are not insured. As of December 31, 2022, the Company had $47.1 million of cash and cash equivalents in banks in Ukraine, $29.0 million of cash and cash equivalents in banks in Russia, and $28.0 million of cash and cash equivalents in banks in Belarus. Cash in Ukraine and Belarus is used for the operational needs of the local entities and cash balances change with the expected operating needs of these entities. The Company regularly monitors cash held in these countries and, to the extent the cash held exceeds amounts required to support its operations in these countries, the Company distributes the excess funds into markets with more developed banking sectors to the extent it is possible to do so. Due to restrictions imposed by the Russian government, our ability to distribute excess funds from Russia to other countries is limited. On September 7, 2022, we executed an agreement to sell substantially all of our remaining holdings in Russia, including cash and cash equivalents, to a third party. As of December 31, 2022 and through the date of issuance of these financial statements, the long stop date of the agreement has passed and we are currently renegotiating the terms of that sale agreement as well as exploring other strategic alternatives. The timing and completion of a sale is uncertain and any sale would be subject to customary closing conditions, including regulatory approvals by the Russian government. The Company places its cash and cash equivalents with financial institutions considered stable in the region, limits the amount of credit exposure with any one financial institution and conducts ongoing evaluations of the credit worthiness of the financial institutions with which it does business. However, a banking crisis, bankruptcy or insolvency of banks that process or hold the Company’s funds, or sanctions may result in the loss of deposits or adversely affect the Company’s ability to complete banking transactions, which could adversely affect the Company’s business and financial condition. Trade receivables are generally dispersed across many customers operating in different industries; therefore, concentration of credit risk is limited. Historically, credit losses and write-offs of trade receivables have not been material to the consolidated financial statements. If any of the Company’s customers enter bankruptcy protection or otherwise take steps to alleviate their financial distress, the Company’s credit losses and write-offs of trade receivables could increase, which would negatively impact its results of operations. See Note 2 “Impact of the Invasion of Ukraine” for further discussion regarding trade receivables and contract assets from customers located in Russia. Foreign currency risk — The Company’s global operations are conducted predominantly in U.S. dollars. Other than U.S. dollars, the Company generates revenues in various currencies, principally, euros, British pounds, Swiss francs, Canadian dollars and Russian rubles and incurs expenditures principally in euros, Polish zlotys, Russian rubles, Indian rupees, British pounds, Swiss francs, Hungarian forints, Mexican pesos, Colombian pesos, Canadian dollars and Chinese yuan renminbi. The Company’s international operations expose it to risk of adverse fluctuations in foreign currency exchange rates through the remeasurement of foreign currency denominated assets and liabilities (both third-party and intercompany) and translation of earnings and cash flows into U.S. dollars. The Company has a hedging program whereby it enters into a series of foreign exchange forward contracts with durations of twelve months or less that are designated as cash flow hedges of forecasted Polish zloty, Indian rupee and Hungarian forint transactions. See Note 6 “Derivative Financial Instruments ” for further discussion regarding the Company’s termination of the hedging program for the Russian ruble. |
Adoption of New Accounting Standards and Pending Accounting Standards | Adoption of New Accounting Standards Unless otherwise discussed below, the adoption of new accounting standards did not have a material impact on the Company’s consolidated financial position, results of operations, and cash flows. Government Assistance - In November 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-10, Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance , which requires annual disclosures for entities receiving government assistance to provide more transparency by requiring disclosures of the following: (1) the nature of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for fiscal years beginning after December 15, 2021. The ASU only impacts annual financial statement note disclosures. The Company benefits from government grants in certain countries where it operates. The grants are generally subject to achieving certain employment and investment targets. The Company recognized $10.2 million, $3.7 million and $1.6 million related to government grants during the years ended December 31, 2022, 2021 and 2020, respectively, which are included in Interest and other income/(loss) Pending Accounting Standards From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. The Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. |
Non-Marketable Securities Without Readily Determinable Fair Values | Non-Marketable Securities Without Readily Determinable Fair ValuesThe Company holds investments in equity securities that do not have readily determinable fair values. These investments are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. |
IMPACT OF THE INVASION OF UKR_2
IMPACT OF THE INVASION OF UKRAINE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities in Russia | As of December 31, 2022, the Company had the following assets and liabilities in Russia: Cash and cash equivalents $ 29,023 Trade receivables and contract assets, net of allowance of $5,313 5,842 Prepaid and other current assets 425 Total assets in Russia $ 35,290 Accounts payable $ 82 Accrued compensation and benefits expenses 4,786 Accrued expenses and other current liabilities 2,464 Operating lease liabilities 546 Other noncurrent liabilities 62 Total liabilities in Russia $ 7,940 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of each respective acquisition and updated for any changes as of December 31, 2022: PolSource CORE Emakina Cash and cash equivalents $ 2,565 $ 11,283 $ 5,142 Trade receivables and contract assets 12,734 10,266 34,389 Prepaid and other current assets 814 5,430 3,109 Goodwill 125,265 24,194 139,417 Intangible assets 15,790 8,368 30,488 Property and equipment and other noncurrent assets 461 4,585 16,802 Total assets acquired $ 157,629 $ 64,126 $ 229,347 Accounts payable, accrued expenses and other current liabilities $ 5,337 $ 9,336 $ 37,469 Short-term debt — — 13,657 Long-term debt — — 8,874 Operating lease liabilities, noncurrent 157 2,056 5,541 Other noncurrent liabilities 3,963 2,525 9,319 Total liabilities assumed $ 9,457 $ 13,917 $ 74,860 Noncontrolling interest in consolidated subsidiaries — — 10,469 Net assets acquired $ 148,172 $ 50,209 $ 144,018 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following table presents the estimated fair values and useful lives of intangible assets acquired from PolSource, CORE and Emakina as of the date of each respective acquisition and updated for any changes as of December 31, 2022: PolSource CORE Emakina Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Weighted Average Useful Life (in years) Amount Customer relationships 6 $ 14,790 6 $ 7,779 7 $ 27,822 Trade names 3 1,000 5 589 3 2,666 Total $ 15,790 $ 8,368 $ 30,488 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Reportable Segment | Goodwill by reportable segment was as follows: North America Europe Russia Total Balance as of January 1, 2021 $ 121,132 $ 90,106 $ 718 $ 211,956 Emakina acquisition — 136,614 — 136,614 PolSource acquisition 75,203 50,136 — 125,339 CORE acquisition — 23,234 — 23,234 Other 2021 Acquisitions 21,875 18,830 — 40,705 2020 Acquisitions purchase accounting adjustments — (24) — (24) Effect of net foreign currency exchange rate changes (616) (6,483) (2) (7,101) Balance as of December 31, 2021 $ 217,594 $ 312,413 $ 716 $ 530,723 Emakina acquisition purchase accounting adjustments — 2,602 — 2,602 PolSource acquisition purchase accounting adjustments (44) (30) — (74) CORE acquisition purchase accounting adjustments — 959 — 959 Other 2021 Acquisitions purchase accounting adjustments (20) 937 — 917 2022 Acquisitions — 10,124 — 10,124 Goodwill impairment — — (686) (686) Effect of net foreign currency exchange rate changes (570) (14,893) (30) (15,493) Balance as of December 31, 2022 $ 216,960 $ 312,112 $ — $ 529,072 |
Schedule of Components of Intangible Assets | Intangible assets other than goodwill as of December 31, 2022 and 2021 were as follows: As of December 31, 2022 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net Customer relationships 8 $ 154,407 $ (82,505) $ 71,902 Trade names 4 10,520 (7,900) 2,620 Software 6 6,022 (3,644) 2,378 Contract royalties 8 1,900 (1,148) 752 Total $ 172,849 $ (95,197) $ 77,652 As of December 31, 2021 Weighted average life at acquisition (in years) Gross carrying amount Accumulated amortization Net Customer relationships 10 $ 156,118 $ (64,441) $ 91,677 Trade names 6 10,933 (6,086) 4,847 Software 6 6,223 (2,639) 3,584 Contract royalties 8 1,900 (910) 990 Assembled workforce 3 161 (116) 45 Total $ 175,335 $ (74,192) $ 101,143 |
Schedule of Intangible Assets Amortization Expense Recognized | The following table presents amortization expense recognized for the periods indicated: For the Years Ended December 31, 2022 2021 2020 Customer relationships $ 18,946 $ 15,399 $ 10,478 Trade names 1,909 842 495 Software 1,086 1,114 1,068 Contract royalties 238 238 238 Assembled workforce 44 53 61 Total $ 22,223 $ 17,646 $ 12,340 |
Schedule of Estimated Amortization Expense | Based on the carrying value of the Company’s existing intangible assets as of December 31, 2022, the estimated amortization expense for the future years is as follows: Year ending December 31, Amount 2023 $ 21,727 2024 18,870 2025 15,120 2026 10,973 2027 6,918 Thereafter 4,044 Total $ 77,652 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2022: As of December 31, 2022 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 12,191 $ — $ 12,191 $ — Rights to acquire noncontrolling interest in consolidated subsidiaries 334 — — 334 Total assets measured at fair value on a recurring basis $ 12,525 $ — $ 12,191 $ 334 Foreign exchange derivative liabilities $ 9,350 $ — $ 9,350 $ — Contingent consideration 24,308 — — 24,308 Total liabilities measured at fair value on a recurring basis $ 33,658 $ — $ 9,350 $ 24,308 The following table shows the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021. As of December 31, 2021 Balance Level 1 Level 2 Level 3 Foreign exchange derivative assets $ 1,429 $ — $ 1,429 $ — Rights to acquire noncontrolling interest in consolidated subsidiaries 6,093 — — 6,093 Total assets measured at fair value on a recurring basis $ 7,522 $ — $ 1,429 $ 6,093 Foreign exchange derivative liabilities $ 5,849 $ — $ 5,849 $ — Contingent consideration 23,114 — — 23,114 Total liabilities measured at fair value on a recurring basis $ 28,963 $ — $ 5,849 $ 23,114 |
Schedule of Acquisition-Related Contingent Consideration Roll Forward | A reconciliation of the beginning and ending balances of Level 3 contingent consideration liabilities using significant unobservable inputs for the years ended December 31, 2020, December 31, 2021 and December 31, 2022 are as follows: Amount Contingent consideration liabilities as of January 1, 2020 $ 10,495 Acquisition date fair value of contingent consideration — 2020 Acquisitions 5,292 Changes in fair value of contingent consideration included in Interest and other income/(loss), net 1,827 Payment of contingent consideration for previously acquired businesses (9,619) Effect of net foreign currency exchange rate changes (525) Contingent consideration liabilities as of December 31, 2020 $ 7,470 Acquisition date fair value of contingent consideration — PolSource acquisition 35,400 Acquisition date fair value of contingent consideration — CORE acquisition 4,007 Acquisition date fair value of contingent consideration — Emakina acquisition 213 Acquisition date fair value of contingent consideration — Other 2021 Acquisitions 17,629 Changes in fair value of contingent consideration included in Interest and other income/(loss), net 8,782 Payment of contingent consideration for previously acquired businesses (50,000) Effect of net foreign currency exchange rate changes (387) Contingent consideration liabilities as of December 31, 2021 $ 23,114 Acquisition date fair value of contingent consideration — 2022 Acquisitions 2,645 Changes in fair value of contingent consideration included in Interest and other income/(loss), net 11,101 Payment of contingent consideration for previously acquired businesses (11,328) Effect of net foreign currency exchange rate changes (1,224) Contingent consideration liabilities as of December 31, 2022 $ 24,308 See Note 2, “Impact of the Invasion of Ukraine” for discussion of the nonrecurring level 3 fair value assessment used in the impairment tests of long-lived assets in Russia. |
Schedule of Estimated Fair Values of Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis | The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2022 Financial Assets: Cash equivalents: Money market funds $ 312,321 $ 312,321 $ 312,321 $ — $ — Total cash equivalents $ 312,321 $ 312,321 $ 312,321 $ — $ — Restricted cash $ 2,292 $ 2,292 $ 2,292 $ — $ — Time deposits included in Short-term investments $ 60,336 $ 60,336 $ — $ 60,336 $ — Financial Liabilities: Short-term debt $ 2,861 $ 2,861 $ — $ 2,861 $ — Borrowings under 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long-term debt $ 2,693 $ 2,693 $ — $ 2,693 $ — Deferred consideration for asset acquisition $ 53,636 $ 53,636 $ — $ 53,636 $ — Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 December 31, 2021 Financial Assets: Cash equivalents: Money market funds $ 78,302 $ 78,302 $ 78,302 $ — $ — Total cash equivalents $ 78,302 $ 78,302 $ 78,302 $ — $ — Restricted cash $ 2,722 $ 2,722 $ 2,722 $ — $ — Employee loans $ 818 $ 818 $ — $ — $ 818 Financial Liabilities: Short-term debt $ 16,018 $ 16,018 $ — $ 16,018 $ — Borrowings under 2021 Credit Agreement $ 25,000 $ 25,000 $ — $ 25,000 $ — Other long-term debt $ 5,234 $ 5,234 $ — $ 5,234 $ — |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The fair value of foreign currency derivative instruments on the Company’s consolidated balance sheets as of December 31, 2022 and December 31, 2021 were as follows: As of December 31, 2022 As of December 31, 2021 Balance Sheet Classification Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Foreign exchange forward contracts - Prepaid expenses and other current assets $ 12,191 $ 1,429 Accrued expenses and other current liabilities $ 1,445 $ 5,849 Foreign exchange forward contracts - Accrued expenses and other current liabilities $ 7,905 $ — |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property and Equipment, Net | Property and equipment, net consisted of the following: Weighted Average Useful Life As of December 31, 2022 As of December 31, 2021 Computer hardware 3 $ 157,283 $ 167,546 Purchased computer software 5 99,414 33,649 Buildings 44 54,627 55,388 Leasehold improvements 9 32,949 37,828 Furniture, fixture and other equipment 7 22,153 31,961 Office equipment 7 19,039 22,881 Land improvements 18 2,137 2,137 Land n/a 1,339 1,339 Construction in progress n/a 51,502 50,133 440,443 402,862 Less: accumulated depreciation and amortization (167,095) (166,648) Total $ 273,348 $ 236,214 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of December 31, 2022 As of December 31, 2021 Value added taxes payable $ 47,433 $ 49,924 Deferred revenue 36,036 39,810 Contingent consideration, current (Note 5) 18,008 9,405 Other current liabilities and accrued expenses 50,001 42,875 Total $ 151,478 $ 142,014 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Expenses | During the years ended December 31, 2022, 2021 and 2020, the components of lease expense were as follows: Income Statement Classification Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Operating lease cost Selling, general and administrative expenses $ 51,775 $ 67,144 $ 73,740 Variable lease cost Selling, general and administrative expenses 10,372 8,555 6,461 Short-term lease cost Selling, general and administrative expenses 5,289 2,248 1,169 Total lease cost $ 67,436 $ 77,947 $ 81,370 |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to leases for the years ended December 31, 2022 and 2021 were as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 54,344 $ 68,986 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 35,048 $ 18,590 Non-cash net (decrease)/ increase due to lease modifications: Operating lease right-of-use assets $ (2,934) $ 7,000 Operating lease liabilities $ (4,254) $ 7,062 |
Schedule of Weighted Average Lease Term and Discount Rates | Weighted average remaining lease terms and discount rates as of December 31, 2022 and 2021, were as follows: As of December 31, 2022 As of December 31, 2021 Weighted average remaining lease term, in years: Operating leases 5.4 5.5 Weighted average discount rate: Operating leases 2.8 % 2.5 % |
Schedule of Maturity of Operating Lease Liabilities | As of December 31, 2022, operating lease liabilities will mature as follows: Year ending December 31, Lease Payments 2023 $ 43,813 2024 36,250 2025 28,485 2026 22,321 2027 14,324 Thereafter 28,254 Total lease payments 173,447 Less: imputed interest (10,778) Total $ 162,669 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt and Borrowing Capacity | The following table presents the outstanding debt and borrowing capacity of the Company under the 2021 Credit Agreement as of December 31, 2022 and 2021: As of December 31, 2022 As of December 31, 2021 Outstanding debt $ 25,000 $ 25,000 Interest rate 5.2 % 1.0 % Available borrowing capacity $ 675,000 $ 675,000 Maximum borrowing capacity $ 700,000 $ 700,000 |
PENSION AND POSTRETIREMENT BE_2
PENSION AND POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Pension Plans | As of December 31, 2022 and 2021, the amounts recognized in the Company's consolidated balance sheets for the Company's defined benefit pension plans were as follows: As of As of Assets/(Liabilities) recognized: Other noncurrent assets $ — $ 1,167 Accrued compensation and benefits expenses (832) (561) Other noncurrent liabilities (9,793) (3,489) Funded status $ (10,625) $ (2,883) |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenues | The following tables show the disaggregation of the Company’s revenues by major customer location, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 17 “Segment Information”) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 2,792,156 $ 92,244 $ 2,804 $ 2,887,204 EMEA 95,706 1,642,114 99 1,737,919 APAC 3,837 116,533 — 120,370 CEE 6,855 2,165 70,185 79,205 Revenues $ 2,898,554 $ 1,853,056 $ 73,088 $ 4,824,698 Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 2,145,163 $ 77,351 $ 4,316 $ 2,226,830 EMEA 87,121 1,172,267 329 1,259,717 APAC 3,224 100,335 — 103,559 CEE 6,740 531 160,767 168,038 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Customer Locations Americas $ 1,546,093 $ 45,553 $ 3,490 $ 1,595,136 EMEA 45,733 834,033 76 879,842 APAC 2,177 67,621 — 69,798 CEE 7,817 98 106,787 114,702 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 The following tables show the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 17 “Segment Information”) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 505,227 $ 571,437 $ 15,560 $ 1,092,224 Financial Services 522,970 460,858 42,858 1,026,686 Business Information & Media 467,664 341,344 944 809,952 Software & Hi-Tech 655,122 136,273 1,866 793,261 Life Sciences & Healthcare 454,102 52,465 800 507,367 Emerging Verticals 293,469 290,679 11,060 595,208 Revenues $ 2,898,554 $ 1,853,056 $ 73,088 $ 4,824,698 Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 359,306 $ 354,041 $ 27,781 $ 741,128 Financial Services 361,611 372,394 114,365 848,370 Business Information & Media 389,613 275,502 1,826 666,941 Software & Hi-Tech 559,707 102,270 2,620 664,597 Life Sciences & Healthcare 340,706 49,900 703 391,309 Emerging Verticals 231,305 196,377 18,117 445,799 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Industry Verticals Travel & Consumer $ 221,977 $ 220,448 $ 16,364 $ 458,789 Financial Services 199,594 278,355 77,286 555,235 Business Information & Media 334,063 224,922 1,695 560,680 Software & Hi-Tech 419,895 73,288 3,630 496,813 Life Sciences & Healthcare 260,518 35,347 448 296,313 Emerging Verticals 165,773 114,945 10,930 291,648 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 The following tables show the disaggregation of the Company’s revenues by contract type, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 17 “Segment Information”) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 2,615,213 $ 1,578,786 $ 45,581 $ 4,239,580 Fixed-price 263,603 269,669 27,195 560,467 Licensing and other revenues 19,738 4,601 312 24,651 Revenues $ 2,898,554 $ 1,853,056 $ 73,088 $ 4,824,698 Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,981,696 $ 1,145,606 $ 82,445 $ 3,209,747 Fixed-price 244,249 202,436 82,711 529,396 Licensing and other revenues 16,303 2,442 256 19,001 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Contract Types Time-and-material $ 1,440,635 $ 790,203 $ 60,166 $ 2,291,004 Fixed-price 151,769 151,718 48,525 352,012 Licensing and other revenues 9,416 5,384 1,662 16,462 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 Timing of Revenue Recognition The following tables show the revenues disaggregated by timing of revenue recognition and reconciled with the Company’s reportable segments (Note 17 “Segment Information”) for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 2,888,342 $ 1,849,011 $ 72,795 $ 4,810,148 Transferred at a point of time 10,212 4,045 293 14,550 Revenues $ 2,898,554 $ 1,853,056 $ 73,088 $ 4,824,698 Year Ended December 31, 2021 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 2,232,308 $ 1,349,956 $ 165,301 $ 3,747,565 Transferred at a point of time 9,940 528 111 10,579 Revenues $ 2,242,248 $ 1,350,484 $ 165,412 $ 3,758,144 Year Ended December 31, 2020 Reportable Segments North America Europe Russia Consolidated Revenues Timing of Revenue Recognition Transferred over time $ 1,595,786 $ 946,379 $ 108,826 $ 2,650,991 Transferred at a point of time 6,034 926 1,527 8,487 Revenues $ 1,601,820 $ 947,305 $ 110,353 $ 2,659,478 |
Schedule of Revenue Expected to be Recognized in Future Related to Remaining Performance Obligations | The following table includes the estimated revenues expected to be recognized in the future related to performance obligations that are partially or fully unsatisfied as of December 31, 2022. The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts that (i) have an original expected duration of one year or less and (ii) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services provided: Less than 1 year 1 Year 2 Years 3 Years Total Contract Type Fixed-price $ 11,182 $ 2,146 $ 2,145 $ — $ 15,473 |
Schedule of Contract Balances | The following table provides information on the classification of contract assets and liabilities in the consolidated balance sheets: As of December 31, 2022 As of December 31, 2021 Contract assets included in Trade receivables and contract assets $ 11,490 $ 13,798 Contract liabilities included in Accrued expenses and other current liabilities $ 36,036 $ 39,810 Contract liabilities included in Other noncurrent liabilities $ 42 $ 84 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Components of Stock-Based Compensation Expenses | The following costs related to the Company’s stock compensation plans were included in the consolidated statements of income: For the Years Ended December 31, 2022 2021 2020 Cost of revenues (exclusive of depreciation and amortization) $ 47,470 $ 51,580 $ 32,785 Selling, general and administrative expenses 52,439 60,075 42,453 Total $ 99,909 $ 111,655 $ 75,238 |
Schedule of Stock Option Activity | Stock option activity under the Company’s long-term incentive plans is set forth below: Number of Weighted Average Aggregate Weighted Average Options outstanding as of January 1, 2020 3,323 $ 50.85 $ 536,015 Options granted 158 $ 187.76 Options exercised (700) $ 37.79 Options forfeited (9) $ 119.30 Options outstanding as of December 31, 2020 2,772 $ 61.71 $ 822,152 Options granted 94 $ 410.03 Options exercised (536) $ 49.13 Options forfeited (12) $ 248.74 Options outstanding as of December 31, 2021 2,318 $ 77.79 $ 1,369,132 Options granted 133 $ 277.85 Options exercised (514) $ 44.02 Options forfeited (11) $ 350.19 Options expired (3) $ 128.11 Options outstanding as of December 31, 2022 1,923 $ 98.92 $ 447,503 3.4 Options vested and exercisable as of December 31, 2022 1,627 $ 67.51 $ 425,184 2.6 Options expected to vest as of December 31, 2022 279 $ 270.39 $ 21,357 8.2 |
Schedule of Black-Scholes Option Valuation Model Assumptions | The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The model incorporated the following weighted average assumptions: For the Years Ended December 31, 2022 2021 2020 Expected volatility 46.7 % 35.3 % 36.9 % Expected term (in years) 6.24 6.24 6.25 Risk-free interest rate 2.6 % 1.2 % 0.5 % Expected dividends — % — % — % |
Schedule of Service-Based Awards Activity | The table below summarizes activity related to the Company’s equity-classified and liability-classified service-based awards for the years ended December 31, 2022, 2021 and 2020: Equity-Classified Equity-Classified Equity-Settled Restricted Stock Units Liability-Classified Cash-Settled Restricted Stock Units Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Unvested service-based awards outstanding as of January 1, 2020 10 $ 162.96 759 $ 122.48 242 $ 105.40 Awards granted — $ — 294 $ 204.57 60 $ 181.77 Awards modified — $ — (1) $ 122.55 — $ — Awards vested (1) $ 63.10 (317) $ 108.87 (122) $ 91.39 Awards forfeited — $ — (49) $ 148.11 (5) $ 113.94 Unvested service-based awards outstanding as of December 31, 2020 9 $ 167.18 686 $ 162.15 175 $ 141.16 Awards granted — $ — 238 $ 429.41 27 $ 394.24 Awards modified — $ — — $ — — $ — Awards vested — $ — (308) $ 139.83 (86) $ 118.05 Awards forfeited — $ — (40) $ 264.48 (4) $ 210.26 Unvested service-based awards outstanding as of December 31, 2021 9 $ 167.18 576 $ 277.38 112 $ 217.28 Awards granted — $ — 655 $ 287.13 51 $ 269.60 Awards modified — $ — (3) $ 387.74 3 $ 220.00 Awards vested (9) $ 167.18 (244) $ 235.96 (56) $ 184.96 Awards forfeited — $ — (68) $ 328.81 (11) $ 260.59 Unvested service-based awards outstanding as of December 31, 2022 — $ — 916 $ 291.19 99 $ 257.74 |
Schedule of Fair Value of Service-Based Awards Vested | The fair value of vested service-based awards (measured at the vesting date) for the years ended December 31, 2022, 2021 and 2020 was as follows: For the Years Ended December 31, 2022 2021 2020 Equity-classified equity-settled Restricted stock $ 3,990 $ — $ 101 Restricted stock units 69,510 129,527 60,042 Liability-classified cash-settled Restricted stock units 16,238 33,947 22,014 Total fair value of vested service-based awards $ 89,738 $ 163,474 $ 82,157 |
Schedule of Performance-Based Awards Activity | The table below summarizes activity related to the Company’s performance-based awards for the years ended December 31, 2022, 2021 and 2020: Equity-Classified Equity-Classified Number of Shares Weighted Average Grant Date Number of Shares Weighted Average Grant Date Unvested performance-based awards outstanding as of January 1, 2020 9 $ 165.87 — $ — Awards granted — $ — 31 $ 210.44 Awards vested — $ — (10) $ 177.81 Unvested performance-based awards outstanding as of December 31, 2020 9 $ 165.87 21 $ 227.16 Awards granted — $ — 8 $ 574.98 Awards vested — $ — (4) $ 177.81 Awards forfeited — $ — (2) $ 334.78 Unvested performance-based awards outstanding as of December 31, 2021 9 $ 165.87 23 $ 339.69 Awards granted — $ — 6 $ 418.26 Awards vested — $ — (9) $ 238.96 Awards forfeited — $ — (5) $ 377.87 Unvested performance-based awards outstanding as of December 31, 2022 9 $ 165.87 15 $ 412.60 |
Schedule of Fair Value of Performance-Based Awards Vested | The fair value of vested performance-based awards (measured at the vesting date) for the years ended December 31, 2022, 2021 and 2020 was as follows: For the Years Ended December 31, 2022 2021 2020 Equity-classified equity-settled Restricted stock units $ 2,914 $ 2,215 $ 3,282 Total fair value of vested performance-based awards $ 2,914 $ 2,215 $ 3,282 |
Schedule of Assumptions Used | The Black-Scholes model relies on a number of key assumptions to calculate estimated fair values. The model incorporated the following weighted average assumptions for the years ended December 31, 2022 and 2021: For the Years Ended December 31, 2022 2021 Expected volatility 86.8 % 23.1 % Expected term (in years) 0.50 0.50 Risk-free interest rate 3.0 % 0.1 % Expected dividends — % — % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Provision of Income Taxes | Income before provision for income taxes based on geographic location is disclosed in the table below: For the Years Ended December 31, 2022 2021 2020 Income before provision for income taxes: United States $ 78,564 $ 128,498 $ 100,411 Foreign 428,694 404,894 278,068 Total $ 507,258 $ 533,392 $ 378,479 |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: For the Years Ended December 31, 2022 2021 2020 Current Federal $ 20,044 $ 22,742 $ 19,249 State 10,116 6,735 7,022 Foreign 99,847 69,162 45,042 Deferred Federal (26,379) (40,421) (16,235) State (3,483) (2,576) (1,682) Foreign (12,303) (3,902) (2,077) Total $ 87,842 $ 51,740 $ 51,319 |
Schedule of Effective Tax Rate Reconciliation | The reconciliation of the provision for income taxes at the federal statutory income tax rate to the Company’s effective income tax rate is as follows: For the Years Ended December 31, 2022 2021 2020 Provision for income taxes at federal statutory rate $ 106,514 $ 112,016 $ 79,481 Increase/(decrease) in taxes resulting from: GILTI and BEAT U.S. taxes 355 229 191 Excess tax benefits relating to stock-based compensation (35,119) (71,628) (36,646) Foreign tax expense and tax rate differential 4,902 (206) (387) Effect of permanent differences 7,812 4,756 3,507 State taxes, net of federal benefit 9,323 9,192 5,323 Stock-based compensation expense 3,869 1,102 44 Impact of election to change entity classification (8,264) — — Tax credits (2,876) (4,100) — Other 1,326 379 (194) Provision for income taxes $ 87,842 $ 51,740 $ 51,319 |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: As of December 31, 2022 As of December 31, 2021 Deferred tax assets: Property and equipment $ 11,587 $ 10,561 Accrued expenses 87,816 83,416 Accrued sales discounts 9,185 7,338 Stock-based compensation 33,078 31,959 Operating lease liabilities 43,662 52,806 R&D capitalization 36,915 — Deferred consideration 14,030 — Foreign currency exchange 11,284 11,750 Other 19,955 21,583 Deferred tax assets $ 267,512 $ 219,413 Less: valuation allowance (6,728) (4,538) Total deferred tax assets $ 260,784 $ 214,875 Deferred tax liabilities: Property and equipment $ 15,324 $ 1,095 Intangible assets 24,523 26,124 Operating lease right-of-use assets 42,211 51,871 U.S. taxation of foreign subsidiaries 11,465 3,770 Other 7,232 6,402 Total deferred tax liabilities $ 100,755 $ 89,262 Net deferred tax assets $ 160,029 $ 125,613 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending balances of the gross unrecognized tax benefits changes for the years ended December 31, 2022, December 31, 2021 and December 31, 2020 are as follows: For the Years Ended December 31, 2022 2021 2020 Beginning Balance $ 8,155 $ 3,317 $ 2,914 Increases in tax positions from current year 4,739 5,310 902 Increases in tax positions from acquisitions 393 — — Increases in tax positions from prior years 2,447 1,350 — Decreases in tax positions from prior years (6,945) — — Decreases due to lapse of statute of limitations (1,121) (1,298) (528) Currency 197 (524) 29 Ending Balance $ 7,865 $ 8,155 $ 3,317 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share of common stock as follows: For the Years Ended December 31, 2022 2021 2020 Numerator for basic and diluted earnings per share: Net income $ 419,416 $ 481,652 $ 327,160 Numerator for basic and diluted earnings per share $ 419,416 $ 481,652 $ 327,160 Denominator: Weighted average common shares for basic earnings per share 57,291 56,511 55,727 Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP 1,878 2,553 2,719 Weighted average common shares for diluted earnings per share 59,169 59,064 58,446 Net Income per share: Basic $ 7.32 $ 8.52 $ 5.87 Diluted $ 7.09 $ 8.15 $ 5.60 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenues from External Customers and Operating Profit Before Unallocated Expenses | Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows: For the Years Ended December 31, 2022 2021 2020 Segment revenues: North America $ 2,898,554 $ 2,242,248 $ 1,601,820 Europe 1,853,056 1,350,484 947,305 Russia 73,088 165,412 110,353 Total revenues $ 4,824,698 $ 3,758,144 $ 2,659,478 Segment operating profit/(loss): North America $ 589,412 $ 462,798 $ 345,196 Europe 223,276 233,727 152,902 Russia (13,460) 32,547 5,811 Total segment operating profit $ 799,228 $ 729,072 $ 503,909 |
Reconciliation of Segment Operating Profit to Consolidated Income Before Provision for Income Taxes | Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below: For the Years Ended December 31, 2022 2021 2020 Total segment operating profit: $ 799,228 $ 729,072 $ 503,909 Unallocated costs: Stock-based compensation expense (99,909) (111,655) (75,238) Amortization of purchased intangibles (22,223) (17,646) (12,340) Other acquisition-related expenses (1,537) (6,397) (1,868) Other unallocated costs (102,593) (51,058) (35,139) Income from operations 572,966 542,316 379,324 Interest and other income/(loss), net 10,025 (1,727) 3,822 Foreign exchange loss (75,733) (7,197) (4,667) Income before provision for income taxes $ 507,258 $ 533,392 $ 378,479 |
Physical Locations and Values of Long-Lived Assets | Physical locations and values of the Company’s long-lived assets are presented below: As of December 31, 2022 As of December 31, 2021 As of December 31, 2020 Ukraine $ 70,183 $ 78,289 $ 30,980 United States 68,804 14,843 15,718 Belarus 57,311 75,422 73,988 Poland 14,685 8,240 5,434 Hungary 8,552 5,339 5,365 India 8,506 9,459 7,079 Russia — 16,611 15,036 Other 45,307 28,011 15,933 Total $ 273,348 $ 236,214 $ 169,533 |
Revenues by Customer Location | The table below presents the Company’s revenues by customer location for the years ended December 31, 2022, 2021 and 2020: For the Years Ended December 31, 2022 2021 2020 United States $ 2,761,050 $ 2,125,301 $ 1,523,731 United Kingdom 619,305 474,941 331,217 Switzerland 323,424 271,208 203,391 Netherlands 215,444 154,816 114,678 Germany 161,758 113,727 84,902 Canada 114,910 96,646 68,416 Russia 64,745 155,186 104,846 Other locations 564,062 366,319 228,297 Revenues $ 4,824,698 $ 3,758,144 $ 2,659,478 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss: For the Years Ended December 31, 2022 2021 2020 Foreign currency translation Beginning balance $ (52,747) $ (28,168) $ (32,666) Foreign currency translation (45,295) (29,323) 5,802 Income tax (expense)/ benefit (3,738) 4,744 (1,304) Foreign currency translation, net of tax (49,033) (24,579) 4,498 Ending balance $ (101,780) $ (52,747) $ (28,168) Cash flow hedging instruments Beginning balance $ (3,417) $ 3,642 $ 1,292 Unrealized (loss)/ gain in fair value (49,233) (13,781) 8,076 Net loss/ (gain) reclassified into Cost of revenues (exclusive of depreciation and amortization) 20,331 4,649 (5,031) Net loss reclassified into Foreign exchange loss 44,067 — — Income tax (expense)/ benefit (3,442) 2,073 (695) Cash flow hedging instruments, net of tax 11,723 (7,059) 2,350 Ending balance (1) $ 8,306 $ (3,417) $ 3,642 Defined benefit plans Beginning balance $ 1,957 $ (986) $ — Actuarial (losses)/ gains (4,892) 3,805 (1,275) Income tax benefit/ (expense) 1,088 (862) 289 Defined benefit plans, net of tax (3,804) 2,943 (986) Ending balance $ (1,847) $ 1,957 $ (986) Accumulated other comprehensive loss $ (95,321) $ (54,207) $ (25,512) |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 2 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 50 years |
BUSINESS AND SUMMARY OF SIGNI_4
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill and Other Indefinite-Lived Intangible Assets) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | |
Indefinite-lived intangible assets other than goodwill | $ 0 |
BUSINESS AND SUMMARY OF SIGNI_5
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revenue Recognition) (Details) | 12 Months Ended |
Dec. 31, 2022 business | |
Accounting Policies [Abstract] | |
Number of geographic markets | 4 |
BUSINESS AND SUMMARY OF SIGNI_6
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Risks and Uncertainties) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 1,681,344 | $ 1,446,625 | $ 1,322,143 |
Ukraine | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents | 47,100 | ||
Russia | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents | 29,000 | ||
Belarus | |||
Concentration Risk [Line Items] | |||
Cash and cash equivalents | $ 28,000 |
BUSINESS AND SUMMARY OF SIGNI_7
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Government Assistance) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Government assistance recognized | $ 10.2 | $ 3.7 | $ 1.6 |
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and other income/(loss), net | Interest and other income/(loss), net | Interest and other income/(loss), net |
IMPACT OF THE INVASION OF UKR_3
IMPACT OF THE INVASION OF UKRAINE (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 04, 2022 | |
Unusual or Infrequent Item, or Both [Line Items] | |||||
Property and equipment, net | $ 273,348,000 | $ 236,214,000 | $ 169,533,000 | ||
Operating lease right-of-use assets, net | 148,780,000 | 184,841,000 | |||
Commitments related to operating lease agreements that have not yet commenced | 15,700,000 | ||||
Impairment charges | 23,619,000 | 144,000 | 0 | ||
Impairment, long-lived asset, held-for-use, statement of income or comprehensive income | Selling, general and administrative expenses | ||||
Goodwill, Impairment Loss | (686,000) | ||||
Bad debt expense | 12,394,000 | 2,488,000 | 2,253,000 | ||
Humanitarian Commitment | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Nonoperating expense | 44,800,000 | ||||
Humanitarian Commitment | Cost of revenues (exclusive of depreciation and amortization) | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Nonoperating expense | 29,000,000 | ||||
Humanitarian Commitment | Selling, general and administrative expenses | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Nonoperating expense | 15,800,000 | ||||
Ukraine | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Property and equipment, net | 70,183,000 | 78,289,000 | 30,980,000 | ||
Operating lease right-of-use assets, net | 12,300,000 | ||||
Ukraine | Cost of revenues (exclusive of depreciation and amortization) | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Standby resources expense | 14,700,000 | ||||
Ukraine | Selling, general and administrative expenses | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Standby resources expense | 38,700,000 | ||||
Ukraine | Other Income/(Expense) | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Impairment charges | 1,300,000 | ||||
Ukraine | Humanitarian Commitment | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Commitments related to operating lease agreements that have not yet commenced | $ 100,000,000 | ||||
Russia | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Property and equipment, net | 0 | $ 16,611,000 | $ 15,036,000 | ||
Impairment of property, plant and equipment | $ 15,100,000 | ||||
Operating lease, impairment loss | 3,800,000 | ||||
Goodwill, Impairment Loss | $ (700,000) | ||||
Bad debt expense | 5,100,000 | ||||
Russia | Employee Severance | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Exit costs | 17,100,000 | ||||
Building | Ukraine | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Property and equipment, net | 70,200,000 | ||||
Construction in Progress | Ukraine | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Property and equipment, net | 51,400,000 | ||||
Computer Equipment | Ukraine | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Property and equipment, net | 11,500,000 | ||||
Furniture and Fixtures | Ukraine | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Property and equipment, net | 6,300,000 | ||||
Leasehold Improvements | Ukraine | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Property and equipment, net | $ 1,000,000 |
IMPACT OF THE INVASION OF UKR_4
IMPACT OF THE INVASION OF UKRAINE (Schedule of Assets and Liabilities in Russia) (Details) - Russia - Discontinued Operations, Held-for-sale or Disposed of by Sale $ in Thousands | Dec. 31, 2022 USD ($) |
Unusual or Infrequent Item, or Both [Line Items] | |
Cash and cash equivalents | $ 29,023 |
Allowance | 5,313 |
Trade receivables and contract assets, net of allowance of $5,313 | 5,842 |
Prepaid and other current assets | 425 |
Total assets in Russia | 35,290 |
Accounts payable | 82 |
Accrued compensation and benefits expenses | 4,786 |
Accrued expenses and other current liabilities | 2,464 |
Operating lease liabilities | 546 |
Other noncurrent liabilities | 62 |
Total liabilities in Russia | $ 7,940 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||||
Nov. 30, 2021 USD ($) | Nov. 03, 2021 USD ($) | Jul. 23, 2021 USD ($) | Apr. 02, 2021 USD ($) specialist | Dec. 31, 2022 USD ($) business | Dec. 31, 2021 USD ($) business | Dec. 31, 2020 USD ($) business | |
Business Acquisition [Line Items] | |||||||
Contingent consideration | $ 2,645 | $ 57,249 | $ 7,119 | ||||
PolSource | |||||||
Business Acquisition [Line Items] | |||||||
Equity interest acquired | 100% | ||||||
Number of specialists in acquired entity (more than) | specialist | 350 | ||||||
Purchase price including contingent consideration | $ 148,200 | ||||||
Contingent consideration | 35,400 | ||||||
Maximum amount of earnout payable | 45,000 | ||||||
Revenue of acquiree | 55,000 | ||||||
Acquisition related costs | 1,400 | ||||||
Intangible assets | 15,790 | ||||||
Amount | 15,790 | ||||||
PolSource | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Amount | $ 14,790 | ||||||
CORE | |||||||
Business Acquisition [Line Items] | |||||||
Equity interest acquired | 100% | ||||||
Purchase price including contingent consideration | $ 50,200 | ||||||
Contingent consideration | 4,000 | ||||||
Maximum amount of earnout payable | 8,100 | ||||||
Deferred consideration | 7,800 | ||||||
Revenue of acquiree | 14,100 | ||||||
Acquisition related costs | 1,200 | ||||||
Intangible assets | 8,368 | ||||||
Amount | 8,368 | ||||||
CORE | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Amount | $ 7,779 | ||||||
Emakina | |||||||
Business Acquisition [Line Items] | |||||||
Equity interest acquired | 1.31% | 98.69% | |||||
Cash consideration | $ 1,700 | $ 143,400 | |||||
Revenue of acquiree | 24,700 | ||||||
Acquisition related costs | 1,000 | ||||||
Intangible assets | 30,488 | ||||||
Amount | 30,488 | ||||||
Emakina | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Amount | $ 27,822 | ||||||
2020 Acquisitions purchase accounting adjustments | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | 5,300 | ||||||
Maximum amount of earnout payable | 18,600 | ||||||
Revenue of acquiree | $ 6,000 | ||||||
Number of completed acquisitions | business | 2 | ||||||
Aggregate purchase price including contingent consideration at fair value at acquisition date | $ 22,500 | ||||||
Intangible assets | $ 7,300 | ||||||
Other 2021 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | 17,600 | ||||||
Maximum amount of earnout payable | 30,200 | ||||||
Revenue of acquiree | $ 19,500 | ||||||
Number of completed acquisitions | business | 4,000 | ||||||
Intangible assets | $ 14,100 | ||||||
Purchase price including contingent consideration | $ 65,200 | ||||||
Other 2021 Acquisitions | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Estimated future operating results, period | 12 months | ||||||
Other 2021 Acquisitions | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Estimated future operating results, period | 48 months | ||||||
2022 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price including contingent consideration | 13,600 | ||||||
Contingent consideration | 2,600 | ||||||
Revenue of acquiree | $ 8,700 | ||||||
Number of completed acquisitions | business | 2 | ||||||
2022 Acquisitions | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Amount | $ 3,400 |
ACQUISITIONS (Schedule of Fair
ACQUISITIONS (Schedule of Fair Values of Net Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 03, 2021 | Jul. 23, 2021 | Apr. 02, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 529,072 | $ 530,723 | $ 211,956 | |||
PolSource | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 2,565 | |||||
Trade receivables and contract assets | 12,734 | |||||
Prepaid and other current assets | 814 | |||||
Goodwill | 125,265 | |||||
Intangible assets | 15,790 | |||||
Property and equipment and other noncurrent assets | 461 | |||||
Total assets acquired | 157,629 | |||||
Accounts payable, accrued expenses and other current liabilities | 5,337 | |||||
Short-term debt | 0 | |||||
Long-term debt | 0 | |||||
Operating lease liabilities, noncurrent | 157 | |||||
Other noncurrent liabilities | 3,963 | |||||
Total liabilities assumed | 9,457 | |||||
Noncontrolling interest in consolidated subsidiaries | 0 | |||||
Net assets acquired | $ 148,172 | |||||
CORE | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 11,283 | |||||
Trade receivables and contract assets | 10,266 | |||||
Prepaid and other current assets | 5,430 | |||||
Goodwill | 24,194 | |||||
Intangible assets | 8,368 | |||||
Property and equipment and other noncurrent assets | 4,585 | |||||
Total assets acquired | 64,126 | |||||
Accounts payable, accrued expenses and other current liabilities | 9,336 | |||||
Short-term debt | 0 | |||||
Long-term debt | 0 | |||||
Operating lease liabilities, noncurrent | 2,056 | |||||
Other noncurrent liabilities | 2,525 | |||||
Total liabilities assumed | 13,917 | |||||
Noncontrolling interest in consolidated subsidiaries | 0 | |||||
Net assets acquired | $ 50,209 | |||||
Emakina | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 5,142 | |||||
Trade receivables and contract assets | 34,389 | |||||
Prepaid and other current assets | 3,109 | |||||
Goodwill | 139,417 | |||||
Intangible assets | 30,488 | |||||
Property and equipment and other noncurrent assets | 16,802 | |||||
Total assets acquired | 229,347 | |||||
Accounts payable, accrued expenses and other current liabilities | 37,469 | |||||
Short-term debt | 13,657 | |||||
Long-term debt | 8,874 | |||||
Operating lease liabilities, noncurrent | 5,541 | |||||
Other noncurrent liabilities | 9,319 | |||||
Total liabilities assumed | 74,860 | |||||
Noncontrolling interest in consolidated subsidiaries | 10,469 | |||||
Net assets acquired | $ 144,018 |
ACQUISITIONS (Schedule of Acqui
ACQUISITIONS (Schedule of Acquired Finite-Lived Intangible Assets by Major Class) (Details) - USD ($) $ in Thousands | Nov. 03, 2021 | Jul. 23, 2021 | Apr. 02, 2021 |
PolSource | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 15,790 | ||
CORE | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 8,368 | ||
Emakina | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 30,488 | ||
Customer relationships | PolSource | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life (in years) | 6 years | ||
Amount | $ 14,790 | ||
Customer relationships | CORE | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life (in years) | 6 years | ||
Amount | $ 7,779 | ||
Customer relationships | Emakina | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life (in years) | 7 years | ||
Amount | $ 27,822 | ||
Trade names | PolSource | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life (in years) | 3 years | ||
Amount | $ 1,000 | ||
Trade names | CORE | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life (in years) | 5 years | ||
Amount | $ 589 | ||
Trade names | Emakina | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Useful Life (in years) | 3 years | ||
Amount | $ 2,666 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule of Goodwill by Reportable Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Balance beginning of period | $ 530,723 | $ 211,956 |
Goodwill impairment | (686) | |
Effect of net foreign currency exchange rate changes | (15,493) | (7,101) |
Balance end of period | 529,072 | 530,723 |
North America | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 217,594 | 121,132 |
Goodwill impairment | 0 | |
Effect of net foreign currency exchange rate changes | (570) | (616) |
Balance end of period | 216,960 | 217,594 |
Europe | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 312,413 | 90,106 |
Goodwill impairment | 0 | |
Effect of net foreign currency exchange rate changes | (14,893) | (6,483) |
Balance end of period | 312,112 | 312,413 |
Russia | ||
Goodwill [Roll Forward] | ||
Balance beginning of period | 716 | 718 |
Goodwill impairment | (686) | |
Effect of net foreign currency exchange rate changes | (30) | (2) |
Balance end of period | 0 | 716 |
Emakina | ||
Goodwill [Roll Forward] | ||
Acquisitions | 136,614 | |
Purchase accounting adjustments | 2,602 | |
Emakina | North America | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | |
Purchase accounting adjustments | 0 | |
Emakina | Europe | ||
Goodwill [Roll Forward] | ||
Acquisitions | 136,614 | |
Purchase accounting adjustments | 2,602 | |
Emakina | Russia | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | |
Purchase accounting adjustments | 0 | |
PolSource | ||
Goodwill [Roll Forward] | ||
Acquisitions | 125,339 | |
Purchase accounting adjustments | (74) | |
PolSource | North America | ||
Goodwill [Roll Forward] | ||
Acquisitions | 75,203 | |
Purchase accounting adjustments | (44) | |
PolSource | Europe | ||
Goodwill [Roll Forward] | ||
Acquisitions | 50,136 | |
Purchase accounting adjustments | (30) | |
PolSource | Russia | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | |
Purchase accounting adjustments | 0 | |
CORE | ||
Goodwill [Roll Forward] | ||
Acquisitions | 23,234 | |
Purchase accounting adjustments | 959 | |
CORE | North America | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | |
Purchase accounting adjustments | 0 | |
CORE | Europe | ||
Goodwill [Roll Forward] | ||
Acquisitions | 23,234 | |
Purchase accounting adjustments | 959 | |
CORE | Russia | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | |
Purchase accounting adjustments | 0 | |
Other 2021 Acquisitions | ||
Goodwill [Roll Forward] | ||
Acquisitions | 40,705 | |
Purchase accounting adjustments | 917 | |
Other 2021 Acquisitions | North America | ||
Goodwill [Roll Forward] | ||
Acquisitions | 21,875 | |
Purchase accounting adjustments | (20) | |
Other 2021 Acquisitions | Europe | ||
Goodwill [Roll Forward] | ||
Acquisitions | 18,830 | |
Purchase accounting adjustments | 937 | |
Other 2021 Acquisitions | Russia | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | |
Purchase accounting adjustments | 0 | |
2020 Acquisitions purchase accounting adjustments | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | (24) | |
2020 Acquisitions purchase accounting adjustments | North America | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | 0 | |
2020 Acquisitions purchase accounting adjustments | Europe | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | (24) | |
2020 Acquisitions purchase accounting adjustments | Russia | ||
Goodwill [Roll Forward] | ||
Purchase accounting adjustments | $ 0 | |
2022 Acquisitions | ||
Goodwill [Roll Forward] | ||
Acquisitions | 10,124 | |
2022 Acquisitions | North America | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | |
2022 Acquisitions | Europe | ||
Goodwill [Roll Forward] | ||
Acquisitions | 10,124 | |
2022 Acquisitions | Russia | ||
Goodwill [Roll Forward] | ||
Acquisitions | $ 0 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill Accumulated Impairment Losses) (Narrative) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Russia | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | $ 2,900,000 | $ 2,200,000 | $ 2,200,000 |
North America | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | 0 | 0 | 0 |
Europe | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | $ 0 | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule of Intangible Assets Components and Amortization Expense Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 172,849 | $ 175,335 | |
Accumulated amortization | (95,197) | (74,192) | |
Net carrying amount | 77,652 | 101,143 | |
Amortization of purchased intangibles | $ 22,223 | $ 17,646 | $ 12,340 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 8 years | 10 years | |
Gross carrying amount | $ 154,407 | $ 156,118 | |
Accumulated amortization | (82,505) | (64,441) | |
Net carrying amount | 71,902 | 91,677 | |
Amortization of purchased intangibles | $ 18,946 | $ 15,399 | 10,478 |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 4 years | 6 years | |
Gross carrying amount | $ 10,520 | $ 10,933 | |
Accumulated amortization | (7,900) | (6,086) | |
Net carrying amount | 2,620 | 4,847 | |
Amortization of purchased intangibles | $ 1,909 | $ 842 | 495 |
Software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 6 years | 6 years | |
Gross carrying amount | $ 6,022 | $ 6,223 | |
Accumulated amortization | (3,644) | (2,639) | |
Net carrying amount | 2,378 | 3,584 | |
Amortization of purchased intangibles | $ 1,086 | $ 1,114 | 1,068 |
Contract royalties | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 8 years | 8 years | |
Gross carrying amount | $ 1,900 | $ 1,900 | |
Accumulated amortization | (1,148) | (910) | |
Net carrying amount | 752 | 990 | |
Amortization of purchased intangibles | 238 | $ 238 | 238 |
Assembled workforce | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average life at acquisition (in years) | 3 years | ||
Gross carrying amount | $ 161 | ||
Accumulated amortization | (116) | ||
Net carrying amount | 45 | ||
Amortization of purchased intangibles | $ 44 | $ 53 | $ 61 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 21,727 | |
2024 | 18,870 | |
2025 | 15,120 | |
2026 | 10,973 | |
2027 | 6,918 | |
Thereafter | 4,044 | |
Net carrying amount | $ 77,652 | $ 101,143 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Rights to acquire noncontrolling interest in consolidated subsidiaries | $ 334 | $ 6,093 |
Total assets measured at fair value on a recurring basis | 12,525 | 7,522 |
Financial Liabilities: | ||
Contingent consideration | 24,308 | 23,114 |
Total liabilities measured at fair value on a recurring basis | 33,658 | 28,963 |
Foreign Exchange Contract | ||
Financial Assets: | ||
Foreign exchange derivative assets | 12,191 | 1,429 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | 9,350 | 5,849 |
Level 1 | ||
Financial Assets: | ||
Rights to acquire noncontrolling interest in consolidated subsidiaries | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Level 1 | Foreign Exchange Contract | ||
Financial Assets: | ||
Foreign exchange derivative assets | 0 | 0 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | 0 | 0 |
Level 2 | ||
Financial Assets: | ||
Rights to acquire noncontrolling interest in consolidated subsidiaries | 0 | 0 |
Total assets measured at fair value on a recurring basis | 12,191 | 1,429 |
Financial Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value on a recurring basis | 9,350 | 5,849 |
Level 2 | Foreign Exchange Contract | ||
Financial Assets: | ||
Foreign exchange derivative assets | 12,191 | 1,429 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | 9,350 | 5,849 |
Level 3 | ||
Financial Assets: | ||
Rights to acquire noncontrolling interest in consolidated subsidiaries | 334 | 6,093 |
Total assets measured at fair value on a recurring basis | 334 | 6,093 |
Financial Liabilities: | ||
Contingent consideration | 24,308 | 23,114 |
Total liabilities measured at fair value on a recurring basis | 24,308 | 23,114 |
Level 3 | Foreign Exchange Contract | ||
Financial Assets: | ||
Foreign exchange derivative assets | 0 | 0 |
Financial Liabilities: | ||
Foreign exchange derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - Discount rate | Dec. 31, 2022 | Apr. 02, 2021 |
PolSource | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.004 | |
CORE | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.130 | |
Minimum | 2022 Acquisitions | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.130 | |
Minimum | Other 2021 Acquisitions | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.150 | |
Minimum | 2020 Acquisitions purchase accounting adjustments | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.155 | |
Maximum | 2022 Acquisitions | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.150 | |
Maximum | Other 2021 Acquisitions | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.220 | |
Maximum | 2020 Acquisitions purchase accounting adjustments | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Measurement input to determine fair value of contingent consideration | 0.175 |
FAIR VALUE MEASUREMENTS (Sche_2
FAIR VALUE MEASUREMENTS (Schedule of Acquisition-Related Contingent Consideration Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amount | |||
Fair value, liability, recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income [extensible enumeration] | Interest and other income/(loss), net | ||
Level 3 | |||
Amount | |||
Contingent consideration, beginning of period | $ 23,114 | $ 7,470 | $ 10,495 |
Changes in fair value of contingent consideration included in Interest and other income/(loss), net | 11,101 | 8,782 | 1,827 |
Payment of contingent consideration for previously acquired businesses | (11,328) | (50,000) | (9,619) |
Effect of net foreign currency exchange rate changes | (1,224) | (387) | (525) |
Contingent consideration, end of period | 24,308 | 23,114 | 7,470 |
Level 3 | Other 2020 Acquisitions | |||
Amount | |||
Acquisition date fair value of contingent consideration | $ 5,292 | ||
Level 3 | PolSource | |||
Amount | |||
Acquisition date fair value of contingent consideration | 35,400 | ||
Level 3 | CORE | |||
Amount | |||
Acquisition date fair value of contingent consideration | 4,007 | ||
Level 3 | Emakina | |||
Amount | |||
Acquisition date fair value of contingent consideration | 213 | ||
Level 3 | Other 2021 Acquisitions | |||
Amount | |||
Acquisition date fair value of contingent consideration | $ 17,629 | ||
Level 3 | 2022 Acquisitions | |||
Amount | |||
Acquisition date fair value of contingent consideration | $ 2,645 |
FAIR VALUE MEASUREMENTS (Sche_3
FAIR VALUE MEASUREMENTS (Schedule of Estimated Fair Values of Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial Liabilities: | ||
Short-term debt | $ 2,861 | $ 16,018 |
Recurring | Balance | ||
Financial Assets: | ||
Cash equivalents: | 312,321 | 78,302 |
Restricted cash | 2,292 | 2,722 |
Employee loans | 818 | |
Financial Liabilities: | ||
Short-term debt | 2,861 | 16,018 |
Other long-term debt | 2,693 | 5,234 |
Deferred consideration for asset acquisition | 53,636 | |
Recurring | Balance | Time deposits included in Short-term investments | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 60,336 | |
Recurring | Balance | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 312,321 | 78,302 |
Recurring | Balance | Revolving Credit Facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings under 2021 Credit Agreement | 25,000 | 25,000 |
Recurring | Estimated Fair Value | ||
Financial Assets: | ||
Cash equivalents: | 312,321 | 78,302 |
Restricted cash | 2,292 | 2,722 |
Employee loans | 818 | |
Financial Liabilities: | ||
Short-term debt | 2,861 | 16,018 |
Other long-term debt | 2,693 | 5,234 |
Deferred consideration for asset acquisition | 53,636 | |
Recurring | Estimated Fair Value | Time deposits included in Short-term investments | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 60,336 | |
Recurring | Estimated Fair Value | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 312,321 | 78,302 |
Recurring | Estimated Fair Value | Revolving Credit Facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings under 2021 Credit Agreement | 25,000 | 25,000 |
Recurring | Estimated Fair Value | Level 1 | ||
Financial Assets: | ||
Cash equivalents: | 312,321 | 78,302 |
Restricted cash | 2,292 | 2,722 |
Employee loans | 0 | |
Financial Liabilities: | ||
Short-term debt | 0 | 0 |
Other long-term debt | 0 | 0 |
Deferred consideration for asset acquisition | 0 | |
Recurring | Estimated Fair Value | Level 1 | Time deposits included in Short-term investments | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 0 | |
Recurring | Estimated Fair Value | Level 1 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 312,321 | 78,302 |
Recurring | Estimated Fair Value | Level 1 | Revolving Credit Facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings under 2021 Credit Agreement | 0 | 0 |
Recurring | Estimated Fair Value | Level 2 | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 0 | |
Financial Liabilities: | ||
Short-term debt | 2,861 | 16,018 |
Other long-term debt | 2,693 | 5,234 |
Deferred consideration for asset acquisition | 53,636 | |
Recurring | Estimated Fair Value | Level 2 | Time deposits included in Short-term investments | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 60,336 | |
Recurring | Estimated Fair Value | Level 2 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Recurring | Estimated Fair Value | Level 2 | Revolving Credit Facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings under 2021 Credit Agreement | 25,000 | 25,000 |
Recurring | Estimated Fair Value | Level 3 | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Restricted cash | 0 | 0 |
Employee loans | 818 | |
Financial Liabilities: | ||
Short-term debt | 0 | 0 |
Other long-term debt | 0 | 0 |
Deferred consideration for asset acquisition | 0 | |
Recurring | Estimated Fair Value | Level 3 | Time deposits included in Short-term investments | ||
Financial Assets: | ||
Time deposits included in Short-term investments | 0 | |
Recurring | Estimated Fair Value | Level 3 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Recurring | Estimated Fair Value | Level 3 | Revolving Credit Facility | 2021 Credit Facility | ||
Financial Liabilities: | ||
Borrowings under 2021 Credit Agreement | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Non-Ma
FAIR VALUE MEASUREMENTS (Non-Marketable Securities Without Readily Determinable Fair Values) (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other noncurrent assets | ||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||
Carrying amount of investments in equity securities | $ 28.4 | $ 27.5 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Fair Value of Derivative Instruments) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | ||||
Foreign exchange loss | $ 75,733,000 | $ 7,197,000 | $ 4,667,000 | |
Foreign Exchange Forward | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||||
Derivatives, Fair Value [Line Items] | ||||
Foreign exchange loss | $ 43,900,000 | |||
Foreign Exchange Contract | ||||
Derivatives, Fair Value [Line Items] | ||||
Financial collateral required to be posted | 0 | |||
Foreign Exchange Contract | Designated as Hedging Instrument | Prepaid expenses and other current assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Asset Derivatives | 12,191,000 | 1,429,000 | ||
Foreign Exchange Contract | Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability Derivatives | 1,445,000 | 5,849,000 | ||
Foreign Exchange Contract | Not Designated as Hedging Instrument | Accrued expenses and other current liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability Derivatives | $ 7,905,000 | $ 0 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Components of Property and Equipment and Depreciation) (Details) $ in Thousands | 12 Months Ended | |||
Nov. 17, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 440,443 | $ 402,862 | ||
Less: accumulated depreciation and amortization | (167,095) | (166,648) | ||
Total | 273,348 | 236,214 | $ 169,533 | |
Depreciation and amortization expense | 69,000 | 65,500 | 50,500 | |
Payments to acquire an office building | 81,629 | 111,501 | 68,793 | |
Software Licenses | ||||
Property, Plant and Equipment [Line Items] | ||||
Purchase price | 66,100 | |||
Payment to acquire assets | 13,300 | |||
Deferred contingent consideration | $ 52,800 | |||
Software Licenses | Discount rate | ||||
Property, Plant and Equipment [Line Items] | ||||
Discount rate | 0.0520 | |||
Computer hardware | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted Average Useful Life (in years) | 3 years | |||
Property and equipment, gross | $ 157,283 | 167,546 | ||
Purchased computer software | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted Average Useful Life (in years) | 5 years | |||
Property and equipment, gross | $ 99,414 | 33,649 | ||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted Average Useful Life (in years) | 44 years | |||
Property and equipment, gross | $ 54,627 | 55,388 | ||
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted Average Useful Life (in years) | 9 years | |||
Property and equipment, gross | $ 32,949 | 37,828 | ||
Furniture, fixture and other equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted Average Useful Life (in years) | 7 years | |||
Property and equipment, gross | $ 22,153 | 31,961 | ||
Office equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted Average Useful Life (in years) | 7 years | |||
Property and equipment, gross | $ 19,039 | 22,881 | ||
Land improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted Average Useful Life (in years) | 18 years | |||
Property and equipment, gross | $ 2,137 | 2,137 | ||
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 1,339 | 1,339 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 51,502 | 50,133 | ||
Minsk, Belarus | Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Leased building, before accumulated depreciation | 3,600 | 3,300 | ||
Leased building, accumulated depreciation | 300 | 200 | ||
Depreciation expense | 100 | 100 | ||
Ukraine | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 70,183 | $ 78,289 | $ 30,980 | |
Ukraine | Computer hardware | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 11,500 | |||
Ukraine | Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 70,200 | |||
Ukraine | Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 1,000 | |||
Ukraine | Furniture, fixture and other equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | 6,300 | |||
Ukraine | Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Total | $ 51,400 | |||
Payments to acquire an office building | $ 50,100 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Schedule of Components of Accrued expenses and other current liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Value added taxes payable | $ 47,433 | $ 49,924 |
Deferred revenue | 36,036 | 39,810 |
Contingent consideration, current (Note 5) | 18,008 | 9,405 |
Other current liabilities and accrued expenses | 50,001 | 42,875 |
Total | $ 151,478 | $ 142,014 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | |
Commitments related to operating lease agreements that have not yet commenced | $ 15.7 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 month 6 days |
Lease term of lease agreements that have not yet commenced | 1 month 6 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 9 years 1 month 6 days |
Lease term of lease agreements that have not yet commenced | 7 years 3 months 18 days |
LEASES (Schedule of Components
LEASES (Schedule of Components of Lease Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease, Cost [Line Items] | |||
Total lease cost | $ 67,436 | $ 77,947 | $ 81,370 |
Selling, general and administrative expenses | |||
Lease, Cost [Line Items] | |||
Operating lease cost | 51,775 | 67,144 | 73,740 |
Variable lease cost | 10,372 | 8,555 | 6,461 |
Short-term lease cost | $ 5,289 | $ 2,248 | $ 1,169 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows used for operating leases | $ 54,344 | $ 68,986 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 35,048 | 18,590 |
Non-cash net (decrease)/ increase due to lease modifications: | ||
Operating lease right-of-use assets | (2,934) | 7,000 |
Operating lease liabilities | $ (4,254) | $ 7,062 |
LEASES (Schedule of Weighted Av
LEASES (Schedule of Weighted Average Remaining Lease Term and Discount Rate) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted average remaining lease term, in years: | ||
Operating leases | 5 years 4 months 24 days | 5 years 6 months |
Weighted average discount rate: | ||
Operating leases | 2.80% | 2.50% |
LEASES (Schedule of Maturity of
LEASES (Schedule of Maturity of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 43,813 |
2024 | 36,250 |
2025 | 28,485 |
2026 | 22,321 |
2027 | 14,324 |
Thereafter | 28,254 |
Total lease payments | 173,447 |
Less: imputed interest | (10,778) |
Total | $ 162,669 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) | Oct. 21, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 21, 2021 GBP (£) |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 2,861,000 | $ 16,018,000 | ||
Long-term debt | $ 27,693,000 | 30,234,000 | ||
Long-Term Debt | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 1.90% | |||
Emakina | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 2,900,000 | |||
Long-term debt | $ 2,700,000 | |||
Emakina | Short-Term Debt | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 1.30% | |||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | £ 150,000,000 |
Additional potential borrowing capacity (up to) | $ 1,000,000,000 | |||
Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate spread | 0.50% | |||
Revolving Credit Facility | LIBOR | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate spread | 1% |
DEBT (Schedule of Outstanding D
DEBT (Schedule of Outstanding Debt And Borrowing Capacity) (Details) - Revolving Credit Facility - Line of Credit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 21, 2021 USD ($) | Oct. 21, 2021 GBP (£) |
Debt Instrument [Line Items] | ||||
Outstanding debt | $ 25,000,000 | $ 25,000,000 | ||
Interest rate | 5.20% | 1% | ||
Available borrowing capacity | $ 675,000,000 | $ 675,000,000 | ||
Maximum borrowing capacity | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | £ 150,000,000 |
PENSION AND POSTRETIREMENT BE_3
PENSION AND POSTRETIREMENT BENEFITS (Defined Contribution Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan expenses recognized | $ 29 | $ 21.3 | $ 16 |
PENSION AND POSTRETIREMENT BE_4
PENSION AND POSTRETIREMENT BENEFITS (Defined Benefit Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Defined benefit plan expenses recognized | $ 8.3 | $ 5.5 | $ 4.3 |
PENSION AND POSTRETIREMENT BE_5
PENSION AND POSTRETIREMENT BENEFITS (Schedule of Defined Benefit Plans Disclosures) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status | $ (10,625) | $ (2,883) |
Other noncurrent assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status | 0 | 1,167 |
Accrued compensation and benefits expenses | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status | (832) | (561) |
Other noncurrent liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status | $ (9,793) | $ (3,489) |
REVENUES (Narrative) (Details)
REVENUES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 business | |
Revenue from Contract with Customer [Abstract] | |
Number of geographic markets | 4 |
REVENUES (Schedule of Disaggreg
REVENUES (Schedule of Disaggregation of Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 4,824,698 | $ 3,758,144 | $ 2,659,478 |
Revenues from performance obligations satisfied in previous period | 7,500 | 18,700 | 5,000 |
Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,810,148 | 3,747,565 | 2,650,991 |
Transferred at a point of time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 14,550 | 10,579 | 8,487 |
Time-and-material | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,239,580 | 3,209,747 | 2,291,004 |
Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 560,467 | 529,396 | 352,012 |
Licensing and other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 24,651 | 19,001 | 16,462 |
Travel & Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,092,224 | 741,128 | 458,789 |
Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,026,686 | 848,370 | 555,235 |
Business Information & Media | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 809,952 | 666,941 | 560,680 |
Software & Hi-Tech | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 793,261 | 664,597 | 496,813 |
Life Sciences & Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 507,367 | 391,309 | 296,313 |
Emerging Verticals | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 595,208 | 445,799 | 291,648 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,898,554 | 2,242,248 | 1,601,820 |
North America | Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,888,342 | 2,232,308 | 1,595,786 |
North America | Transferred at a point of time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 10,212 | 9,940 | 6,034 |
North America | Time-and-material | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,615,213 | 1,981,696 | 1,440,635 |
North America | Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 263,603 | 244,249 | 151,769 |
North America | Licensing and other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 19,738 | 16,303 | 9,416 |
North America | Travel & Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 505,227 | 359,306 | 221,977 |
North America | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 522,970 | 361,611 | 199,594 |
North America | Business Information & Media | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 467,664 | 389,613 | 334,063 |
North America | Software & Hi-Tech | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 655,122 | 559,707 | 419,895 |
North America | Life Sciences & Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 454,102 | 340,706 | 260,518 |
North America | Emerging Verticals | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 293,469 | 231,305 | 165,773 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,853,056 | 1,350,484 | 947,305 |
Europe | Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,849,011 | 1,349,956 | 946,379 |
Europe | Transferred at a point of time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,045 | 528 | 926 |
Europe | Time-and-material | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,578,786 | 1,145,606 | 790,203 |
Europe | Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 269,669 | 202,436 | 151,718 |
Europe | Licensing and other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,601 | 2,442 | 5,384 |
Europe | Travel & Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 571,437 | 354,041 | 220,448 |
Europe | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 460,858 | 372,394 | 278,355 |
Europe | Business Information & Media | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 341,344 | 275,502 | 224,922 |
Europe | Software & Hi-Tech | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 136,273 | 102,270 | 73,288 |
Europe | Life Sciences & Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 52,465 | 49,900 | 35,347 |
Europe | Emerging Verticals | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 290,679 | 196,377 | 114,945 |
Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 73,088 | 165,412 | 110,353 |
Russia | Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 72,795 | 165,301 | 108,826 |
Russia | Transferred at a point of time | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 293 | 111 | 1,527 |
Russia | Time-and-material | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 45,581 | 82,445 | 60,166 |
Russia | Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 27,195 | 82,711 | 48,525 |
Russia | Licensing and other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 312 | 256 | 1,662 |
Russia | Travel & Consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 15,560 | 27,781 | 16,364 |
Russia | Financial Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 42,858 | 114,365 | 77,286 |
Russia | Business Information & Media | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 944 | 1,826 | 1,695 |
Russia | Software & Hi-Tech | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,866 | 2,620 | 3,630 |
Russia | Life Sciences & Healthcare | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 800 | 703 | 448 |
Russia | Emerging Verticals | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 11,060 | 18,117 | 10,930 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,887,204 | 2,226,830 | 1,595,136 |
Americas | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,792,156 | 2,145,163 | 1,546,093 |
Americas | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 92,244 | 77,351 | 45,553 |
Americas | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,804 | 4,316 | 3,490 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,737,919 | 1,259,717 | 879,842 |
EMEA | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 95,706 | 87,121 | 45,733 |
EMEA | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,642,114 | 1,172,267 | 834,033 |
EMEA | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 99 | 329 | 76 |
APAC | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 120,370 | 103,559 | 69,798 |
APAC | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,837 | 3,224 | 2,177 |
APAC | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 116,533 | 100,335 | 67,621 |
APAC | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
CEE | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 79,205 | 168,038 | 114,702 |
CEE | North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6,855 | 6,740 | 7,817 |
CEE | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,165 | 531 | 98 |
CEE | Russia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 70,185 | $ 160,767 | $ 106,787 |
REVENUES (Schedule of Timing of
REVENUES (Schedule of Timing of Revenue Recognition) (Details) - Fixed-price $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 15,473 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 11,182 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 2,146 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 2,145 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated revenues expected to be recognized in the future related to performance obligations | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
REVENUES (Schedule of Contract
REVENUES (Schedule of Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Revenues recognized | $ 35,400 | $ 16,200 |
Trade receivables and contract assets | ||
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Contract assets | 11,490 | 13,798 |
Accrued expenses and other current liabilities | ||
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Contract liabilities | 36,036 | 39,810 |
Other noncurrent liabilities | ||
Change in Contract with Customer, Asset and Liability [Abstract] | ||
Contract liabilities | $ 42 | $ 84 |
STOCK-BASED COMPENSATION (Sched
STOCK-BASED COMPENSATION (Schedule of Components of Stock-Based Compensation Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 99,909 | $ 111,655 | $ 75,238 |
Cost of revenues (exclusive of depreciation and amortization) | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 47,470 | 51,580 | 32,785 |
Selling, general and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 52,439 | $ 60,075 | $ 42,453 |
STOCK-BASED COMPENSATION (Equit
STOCK-BASED COMPENSATION (Equity Plans) (Details) - shares shares in Thousands | 12 Months Ended | |
Jan. 11, 2012 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Company Personnel | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for issuance (in shares) | 3,564 | |
Non-Employee Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for issuance (in shares) | 517 | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for issuance (in shares) | 780 | |
Maximum salary contribution, percent | 10% | |
Offering period | 6 months | |
ESPP purchase price of common stock, percent of market price | 85% |
STOCK-BASED COMPENSATION (Sch_2
STOCK-BASED COMPENSATION (Schedule of Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Options | |||
Beginning balance (in shares) | 2,318,000 | 2,772,000 | 3,323,000 |
Options granted (in shares) | 133,000 | 94,000 | 158,000 |
Options exercised (in shares) | (514,000) | (536,000) | (700,000) |
Options forfeited (in shares) | (11,000) | (12,000) | (9,000) |
Options expired (in shares) | (3,000) | ||
Ending balance (in shares) | 1,923,000 | 2,318,000 | 2,772,000 |
Options vested and exercisable at period end (in shares) | 1,627,000 | ||
Options expected to vest at period end (in shares) | 279,000 | ||
Weighted Average Exercise Price | |||
Options outstanding at beginning of period (in dollars per share) | $ 77.79 | $ 61.71 | $ 50.85 |
Options granted (in dollars per share) | 277.85 | 410.03 | 187.76 |
Options exercised (in dollars per share) | 44.02 | 49.13 | 37.79 |
Options forfeited (in dollars per share) | 350.19 | 248.74 | 119.30 |
Options expired (in dollars per share) | 128.11 | ||
Options outstanding at end of period (in dollars per share) | 98.92 | $ 77.79 | $ 61.71 |
Options vested and exercisable at period end (in dollars per share) | 67.51 | ||
Options expected to vest at period end (in dollars per share) | $ 270.39 | ||
Aggregate Intrinsic Value | |||
Options outstanding, beginning of period | $ 1,369,132 | $ 822,152 | $ 536,015 |
Options outstanding, end of period | 447,503 | $ 1,369,132 | $ 822,152 |
Options vested and exercisable, aggregate intrinsic value | 425,184 | ||
Options expected to vest, aggregate intrinsic value | $ 21,357 | ||
Weighted Average Remaining Contractual Term (in years) | |||
Options outstanding, weighted average remaining contractual term | 3 years 4 months 24 days | ||
Options vested and exercisable, weighted average remaining contractual term | 2 years 7 months 6 days | ||
Expected to vest, weighted average remaining contractual term | 8 years 2 months 12 days |
STOCK-BASED COMPENSATION (Sch_3
STOCK-BASED COMPENSATION (Schedule of Black Scholes Valuation Model Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 46.70% | 35.30% | 36.90% |
Expected term (in years) | 6 years 2 months 26 days | 6 years 2 months 26 days | 6 years 3 months |
Risk-free interest rate | 2.60% | 1.20% | 0.50% |
Expected dividends | 0% | 0% | 0% |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 86.80% | 23.10% | |
Expected term (in years) | 6 months | 6 months | |
Risk-free interest rate | 3% | 0.10% | |
Expected dividends | 0% | 0% |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Options Additional Information) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value (in dollars per share) | $ 134.29 | $ 149.26 | $ 68.53 |
Total intrinsic value of options exercised | $ 154.4 | $ 251.9 | $ 151.3 |
Vesting period (in years) | 4 years | ||
Unrecognized compensation cost net of estimated forfeitures | $ 23.3 | ||
Unrecognized compensation cost, period for recognition | 2 years 7 months 6 days |
STOCK-BASED COMPENSATION (Sch_4
STOCK-BASED COMPENSATION (Schedule of Restricted Stock and Restricted Stock Units Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Service Period | Equity Classified Award | Restricted Stock | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 9 | 9 | 10 |
Awards granted (in shares) | 0 | 0 | 0 |
Awards modified (in shares) | 0 | 0 | 0 |
Awards vested (in shares) | (9) | 0 | (1) |
Awards forfeited/cancelled (in shares) | 0 | 0 | 0 |
Unvested awards outstanding at period end (in shares) | 0 | 9 | 9 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 167.18 | $ 167.18 | $ 162.96 |
Awards granted (in dollars per share) | 0 | 0 | 0 |
Awards modified (in dollars per share) | 0 | 0 | 0 |
Awards vested (in dollars per share) | 167.18 | 0 | 63.10 |
Awards forfeited/cancelled (in dollars per share) | 0 | 0 | 0 |
Unvested awards outstanding at period end (in dollars per share) | $ 0 | $ 167.18 | $ 167.18 |
Service Period | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 576 | 686 | 759 |
Awards granted (in shares) | 655 | 238 | 294 |
Awards modified (in shares) | (3) | 0 | (1) |
Awards vested (in shares) | (244) | (308) | (317) |
Awards forfeited/cancelled (in shares) | (68) | (40) | (49) |
Unvested awards outstanding at period end (in shares) | 916 | 576 | 686 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 277.38 | $ 162.15 | $ 122.48 |
Awards granted (in dollars per share) | 287.13 | 429.41 | 204.57 |
Awards modified (in dollars per share) | 387.74 | 0 | 122.55 |
Awards vested (in dollars per share) | 235.96 | 139.83 | 108.87 |
Awards forfeited/cancelled (in dollars per share) | 328.81 | 264.48 | 148.11 |
Unvested awards outstanding at period end (in dollars per share) | $ 291.19 | $ 277.38 | $ 162.15 |
Service Period | Liability Classified Award | Cash-Settled Award | Restricted Stock Units | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 112 | 175 | 242 |
Awards granted (in shares) | 51 | 27 | 60 |
Awards modified (in shares) | 3 | 0 | 0 |
Awards vested (in shares) | (56) | (86) | (122) |
Awards forfeited/cancelled (in shares) | (11) | (4) | (5) |
Unvested awards outstanding at period end (in shares) | 99 | 112 | 175 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 217.28 | $ 141.16 | $ 105.40 |
Awards granted (in dollars per share) | 269.60 | 394.24 | 181.77 |
Awards modified (in dollars per share) | 220 | 0 | 0 |
Awards vested (in dollars per share) | 184.96 | 118.05 | 91.39 |
Awards forfeited/cancelled (in dollars per share) | 260.59 | 210.26 | 113.94 |
Unvested awards outstanding at period end (in dollars per share) | $ 257.74 | $ 217.28 | $ 141.16 |
Performance Targets | Equity Classified Award | Equity-Settled Award | Restricted Stock | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 9 | 9 | 9 |
Awards granted (in shares) | 0 | 0 | 0 |
Awards vested (in shares) | 0 | 0 | 0 |
Awards forfeited/cancelled (in shares) | 0 | 0 | |
Unvested awards outstanding at period end (in shares) | 9 | 9 | 9 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 165.87 | $ 165.87 | $ 165.87 |
Awards granted (in dollars per share) | 0 | 0 | 0 |
Awards vested (in dollars per share) | 0 | 0 | 0 |
Awards forfeited/cancelled (in dollars per share) | 0 | 0 | |
Unvested awards outstanding at period end (in dollars per share) | $ 165.87 | $ 165.87 | $ 165.87 |
Performance Targets | Equity Classified Award | Equity-Settled Award | Restricted Stock Units | |||
Number of Shares | |||
Unvested awards outstanding at period start (in shares) | 23 | 21 | 0 |
Awards granted (in shares) | 6 | 8 | 31 |
Awards vested (in shares) | (9) | (4) | (10) |
Awards forfeited/cancelled (in shares) | (5) | (2) | |
Unvested awards outstanding at period end (in shares) | 15 | 23 | 21 |
Weighted Average Grant Date Fair Value Per Share | |||
Unvested awards outstanding at period start (in dollars per share) | $ 339.69 | $ 227.16 | $ 0 |
Awards granted (in dollars per share) | 418.26 | 574.98 | 210.44 |
Awards vested (in dollars per share) | 238.96 | 177.81 | 177.81 |
Awards forfeited/cancelled (in dollars per share) | 377.87 | 334.78 | |
Unvested awards outstanding at period end (in dollars per share) | $ 412.60 | $ 339.69 | $ 227.16 |
STOCK-BASED COMPENSATION (Sch_5
STOCK-BASED COMPENSATION (Schedule of Fair Value of Restricted Stock and Restricted Stock Units Vested) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Service Period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 89,738 | $ 163,474 | $ 82,157 |
Performance Targets | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 2,914 | 2,215 | 3,282 |
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 3,990 | 0 | 101 |
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 69,510 | 129,527 | 60,042 |
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | 2,914 | 2,215 | 3,282 |
Liability Classified Award | Service Period | Cash-Settled Award | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of awards vested | $ 16,238 | $ 33,947 | $ 22,014 |
STOCK-BASED COMPENSATION (Restr
STOCK-BASED COMPENSATION (Restricted Stock and Restricted Stock Units Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Classified Award | Service Period | Equity-Settled Award | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 183.9 | |
Unrecognized compensation cost, period for recognition | 2 years 9 months 18 days | |
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 0.3 | |
Unrecognized compensation cost, period for recognition | 8 months 12 days | |
Equity Classified Award | Performance Targets | Equity-Settled Award | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 3.6 | |
Unrecognized compensation cost, period for recognition | 2 years 3 months 18 days | |
Liability Classified Award | Service Period | Cash-Settled Award | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 20 | |
Unrecognized compensation cost, period for recognition | 2 years 4 months 24 days | |
Liability Classified Award | Service Period | Cash-Settled Award | Restricted Stock Units | Accrued compensation and benefits expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Liability associated with stock-based awards current | $ 10.2 | $ 31.5 |
STOCK-BASED COMPENSATION (Emplo
STOCK-BASED COMPENSATION (Employee Stock Purchase Plan Additional Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share price (in dollars per share) | $ 315.60 | $ 659.65 |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Offering period | 6 months | |
Weighted average grant-date fair value (in dollars per share) | $ 119.76 | $ 141.86 |
ESPP purchase of common stock | 120 | 0 |
ESPP stock based compensation expense | $ 13.9 | $ 1.2 |
Unrecognized compensation cost | $ 4.4 | $ 2.3 |
Unrecognized compensation cost, period for recognition | 3 months 29 days | 3 months 29 days |
STOCK-BASED COMPENSATION (Commi
STOCK-BASED COMPENSATION (Commitments for Future Equity Awards Additional Information) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 99,909 | $ 111,655 | $ 75,238 |
Emakina | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity granted | $ 25,600 | ||
Restricted Stock Units | Emakina | Equity Classified Award | Performance Targets | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued in period (in shares) | 2 |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Before Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income before provision for income taxes: | |||
United States | $ 78,564 | $ 128,498 | $ 100,411 |
Foreign | 428,694 | 404,894 | 278,068 |
Income before provision for income taxes | $ 507,258 | $ 533,392 | $ 378,479 |
INCOME TAXES (Schedule of Provi
INCOME TAXES (Schedule of Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 20,044 | $ 22,742 | $ 19,249 |
State | 10,116 | 6,735 | 7,022 |
Foreign | 99,847 | 69,162 | 45,042 |
Deferred | |||
Federal | (26,379) | (40,421) | (16,235) |
State | (3,483) | (2,576) | (1,682) |
Foreign | (12,303) | (3,902) | (2,077) |
Total | $ 87,842 | $ 51,740 | $ 51,319 |
INCOME TAXES (U.S. Tax Act Effe
INCOME TAXES (U.S. Tax Act Effect) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2017 | |
Schedule of Change in Tax Legislation [Line Items] | ||
Accumulated undistributed foreign earnings indefinitely reinvested | $ 1,522 | |
U.S. Tax Cuts and Jobs Act | ||
Schedule of Change in Tax Legislation [Line Items] | ||
Income tax rate on foreign cash and certain other net current assets | 15.50% | |
Income tax rate on remaining earnings | 8% | |
Transition tax for accumulated foreign earnings | $ 34.3 |
INCOME TAXES (Effective Tax Rat
INCOME TAXES (Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes at federal statutory rate | $ 106,514 | $ 112,016 | $ 79,481 |
Increase/(decrease) in taxes resulting from: | |||
GILTI and BEAT U.S. taxes | 355 | 229 | 191 |
Excess tax benefits relating to stock-based compensation | (35,119) | (71,628) | (36,646) |
Foreign tax expense and tax rate differential | 4,902 | (206) | (387) |
Effect of permanent differences | 7,812 | 4,756 | 3,507 |
State taxes, net of federal benefit | 9,323 | 9,192 | 5,323 |
Stock-based compensation expense | 3,869 | 1,102 | 44 |
Impact of election to change entity classification | (8,264) | 0 | 0 |
Tax credits | (2,876) | (4,100) | 0 |
Other | 1,326 | 379 | (194) |
Total | $ 87,842 | $ 51,740 | $ 51,319 |
Effective tax rate | 17.30% | 9.70% | 13.60% |
Provision impacted by charges associated with changes in tax regulations | $ 7,600 | ||
Excess tax benefit | $ 35,100 | $ 71,600 | $ 36,600 |
INCOME TAXES (Deferred Income T
INCOME TAXES (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax assets: | ||
Property and equipment | $ 11,587 | $ 10,561 |
Accrued expenses | 87,816 | 83,416 |
Accrued sales discounts | 9,185 | 7,338 |
Stock-based compensation | 33,078 | 31,959 |
Operating lease liabilities | 43,662 | 52,806 |
R&D capitalization | 36,915 | 0 |
Deferred consideration | 14,030 | 0 |
Foreign currency exchange | 11,284 | 11,750 |
Other | 19,955 | 21,583 |
Deferred tax assets | 267,512 | 219,413 |
Less: valuation allowance | (6,728) | (4,538) |
Total deferred tax assets | 260,784 | 214,875 |
Deferred tax liabilities: | ||
Property and equipment | 15,324 | 1,095 |
Intangible assets | 24,523 | 26,124 |
Operating lease right-of-use assets | 42,211 | 51,871 |
U.S. taxation of foreign subsidiaries | 11,465 | 3,770 |
Other | 7,232 | 6,402 |
Total deferred tax liabilities | 100,755 | 89,262 |
Net deferred tax assets | 160,029 | 125,613 |
Other noncurrent liabilities | ||
Deferred tax liabilities: | ||
Deferred income tax liabilities, net | 12,800 | 18,300 |
Business Acquisitions | ||
Deferred tax assets: | ||
Stock-based compensation | $ 4,600 | $ 5,400 |
Business Acquisitions | Minimum | ||
Deferred tax liabilities: | ||
Amortization period of stock-based compensation for tax | 10 years | |
Business Acquisitions | Maximum | ||
Deferred tax liabilities: | ||
Amortization period of stock-based compensation for tax | 15 years |
INCOME TAXES (Operating Loss Ca
INCOME TAXES (Operating Loss Carryforwards) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Domestic | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | $ 3.9 |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 32.3 |
Operating loss carryforward subject to valuation allowance | 30.8 |
Foreign | No expiry | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 22.4 |
Foreign | 2023 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 1.1 |
Foreign | 2024 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 1.9 |
Foreign | 2025 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 2.7 |
Foreign | 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 1.3 |
Foreign | 2027 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | 2.5 |
Foreign | Tax Year Beyond 2027 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss | $ 0.4 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefit | $ 7,865 | $ 8,155 | $ 3,317 | $ 2,914 |
Interest and penalties from unrecognized tax benefits | 700 | 600 | ||
Income Taxes Payable, Noncurrent | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefit | $ 7,900 | $ 8,200 |
INCOME TAXES (Schedule of Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 8,155 | $ 3,317 | $ 2,914 |
Increases in tax positions from current year | 4,739 | 5,310 | 902 |
Increases in tax positions from acquisitions | 393 | 0 | 0 |
Increases in tax positions from prior years | 2,447 | 1,350 | 0 |
Decreases in tax positions from prior years | (6,945) | 0 | 0 |
Decreases due to lapse of statute of limitations | (1,121) | (1,298) | (528) |
Increase resulting from foreign currency translation | 197 | 29 | |
Decrease resulting from foreign currency translation | (524) | ||
Ending Balance | $ 7,865 | $ 8,155 | $ 3,317 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator for basic and diluted earnings per share: | |||
Net income | $ 419,416 | $ 481,652 | $ 327,160 |
Numerator for basic | 419,416 | 481,652 | 327,160 |
Numerator for diluted | $ 419,416 | $ 481,652 | $ 327,160 |
Denominator: | |||
Weighted average common shares for basic earnings per share (in shares) | 57,291 | 56,511 | 55,727 |
Net effect of dilutive stock options, restricted stock units, restricted stock awards and stock issuable under the ESPP (in shares) | 1,878 | 2,553 | 2,719 |
Weighted average common shares for diluted earnings per share | 59,169 | 59,064 | 58,446 |
Net Income per share: | |||
Basic (in dollars per share) | $ 7.32 | $ 8.52 | $ 5.87 |
Diluted (in dollars per share) | $ 7.09 | $ 8.15 | $ 5.60 |
Anti-dilutive stock excluded from the calculation (in shares) | 264 | 32 | 40 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Ukraine Humanitarian Commitment) (Details) - USD ($) | Dec. 31, 2022 | Mar. 04, 2022 |
Other Commitments [Line Items] | ||
Commitments related to operating lease agreements that have not yet commenced | $ 15,700,000 | |
Ukraine | Humanitarian Commitment | ||
Other Commitments [Line Items] | ||
Commitments related to operating lease agreements that have not yet commenced | $ 100,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Deferred Consideration) (Details) - Software License Purchase Agreement $ in Millions | Dec. 31, 2022 USD ($) |
Long-Term Purchase Commitment [Line Items] | |
Purchase commitment | $ 60 |
2023 | 14.2 |
2024 | 14 |
2025 | 15.1 |
2026 | $ 16.7 |
SEGMENT INFORMATION (Revenues f
SEGMENT INFORMATION (Revenues from External Customers and Operating Profit Before Unallocated Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 4,824,698 | $ 3,758,144 | $ 2,659,478 |
Total segment operating profit | 572,966 | 542,316 | 379,324 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | 799,228 | 729,072 | 503,909 |
North America | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,898,554 | 2,242,248 | 1,601,820 |
North America | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | 589,412 | 462,798 | 345,196 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,853,056 | 1,350,484 | 947,305 |
Europe | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | 223,276 | 233,727 | 152,902 |
Russia | |||
Segment Reporting Information [Line Items] | |||
Revenues | 73,088 | 165,412 | 110,353 |
Russia | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total segment operating profit | $ (13,460) | $ 32,547 | $ 5,811 |
SEGMENT INFORMATION (Reconcilia
SEGMENT INFORMATION (Reconciliation of Segment Operating Profit to Consolidated Income Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment operating profit | $ 572,966 | $ 542,316 | $ 379,324 |
Stock-based compensation expense | (99,909) | (111,655) | (75,238) |
Amortization of purchased intangibles | (22,223) | (17,646) | (12,340) |
Interest and other income/(loss), net | 10,025 | (1,727) | 3,822 |
Foreign exchange loss | (75,733) | (7,197) | (4,667) |
Income before provision for income taxes | 507,258 | 533,392 | 378,479 |
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment operating profit | 799,228 | 729,072 | 503,909 |
Unallocated Amounts | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Stock-based compensation expense | (99,909) | (111,655) | (75,238) |
Amortization of purchased intangibles | (22,223) | (17,646) | (12,340) |
Other acquisition-related expenses | (1,537) | (6,397) | (1,868) |
Other unallocated costs | $ (102,593) | $ (51,058) | $ (35,139) |
SEGMENT INFORMATION (Physical L
SEGMENT INFORMATION (Physical Locations and Values of Long-Lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 273,348 | $ 236,214 | $ 169,533 |
Ukraine | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 70,183 | 78,289 | 30,980 |
United States | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 68,804 | 14,843 | 15,718 |
Belarus | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 57,311 | 75,422 | 73,988 |
Poland | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 14,685 | 8,240 | 5,434 |
Hungary | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 8,552 | 5,339 | 5,365 |
India | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 8,506 | 9,459 | 7,079 |
Russia | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | 0 | 16,611 | 15,036 |
Other | |||
Long-Lived Assets by Geographical Areas [Line Items] | |||
Long-lived assets | $ 45,307 | $ 28,011 | $ 15,933 |
SEGMENT INFORMATION (Revenues b
SEGMENT INFORMATION (Revenues by Customer Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 4,824,698 | $ 3,758,144 | $ 2,659,478 |
United States | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 2,761,050 | 2,125,301 | 1,523,731 |
United Kingdom | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 619,305 | 474,941 | 331,217 |
Switzerland | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 323,424 | 271,208 | 203,391 |
Netherlands | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 215,444 | 154,816 | 114,678 |
Germany | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 161,758 | 113,727 | 84,902 |
Canada | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 114,910 | 96,646 | 68,416 |
Russia | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 64,745 | 155,186 | 104,846 |
Other locations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 564,062 | $ 366,319 | $ 228,297 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 2,495,837 | $ 1,983,018 | $ 1,596,145 |
Balance, end of period | 3,003,010 | 2,495,837 | 1,983,018 |
Foreign currency translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (52,747) | (28,168) | (32,666) |
Foreign currency translation | (45,295) | (29,323) | 5,802 |
Income tax (expense)/ benefit | (3,738) | 4,744 | (1,304) |
Other comprehensive (loss)/income | (49,033) | (24,579) | 4,498 |
Balance, end of period | (101,780) | (52,747) | (28,168) |
Cash flow hedging instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (3,417) | 3,642 | 1,292 |
Income tax (expense)/ benefit | (3,442) | 2,073 | (695) |
Unrealized (loss)/ gain in fair value | (49,233) | (13,781) | 8,076 |
Net loss/ (gain) reclassified into Cost of revenues (exclusive of depreciation and amortization) | 20,331 | 4,649 | (5,031) |
Net loss reclassified into Foreign exchange loss | 44,067 | 0 | 0 |
Other comprehensive (loss)/income | 11,723 | (7,059) | 2,350 |
Balance, end of period | 8,306 | (3,417) | 3,642 |
Defined benefit plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 1,957 | (986) | 0 |
Income tax (expense)/ benefit | 1,088 | (862) | 289 |
Other comprehensive (loss)/income | (3,804) | 2,943 | (986) |
Balance, end of period | (1,847) | 1,957 | (986) |
Actuarial (losses)/ gains | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Net loss/ (gain) reclassified into Cost of revenues (exclusive of depreciation and amortization) | (4,892) | 3,805 | (1,275) |
Accumulated other comprehensive loss | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (54,207) | (25,512) | (31,374) |
Balance, end of period | $ (95,321) | $ (54,207) | $ (25,512) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Feb. 13, 2023 USD ($) |
Subsequent Event [Line Items] | |
Authorized repurchase program, amount | $ 500,000,000 |
Share repurchase program term | 24 months |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for doubtful accounts for trade receivables and contract assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 5,521 | $ 4,886 | $ 3,210 |
Additions | 14,419 | 3,888 | 3,282 |
Deductions/ Write offs | (4,630) | (3,253) | (1,606) |
Balance at End of Year | 15,310 | 5,521 | 4,886 |
Valuation allowance on deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 4,537 | 5,485 | 3,877 |
Additions | 0 | 0 | 1,608 |
Deductions/ Write offs | 2,191 | (948) | 0 |
Balance at End of Year | $ 6,728 | $ 4,537 | $ 5,485 |
Uncategorized Items - epam-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |