Genpact LTDG
Genpact LTD Goodwill & Intangibles Disclosure
Goodwill and intangible assets
The following table presents the changes in goodwill for the years ended December 31, 2024 and 2025:
| As of December 31, | |||||||||||
| 2024 | 2025 | ||||||||||
| Opening balance | $ | 1,683,782 | $ | 1,669,769 | |||||||
| Goodwill relating to acquisitions consummated during the period | — | 111,925 | |||||||||
| Impact of measurement period adjustments | — | 346 | |||||||||
| Effect of exchange rate fluctuations | (14,013) | (924) | |||||||||
| Closing balance | $ | 1,669,769 | $ | 1,781,116 | |||||||
The following table presents the changes in goodwill by reporting unit for the year ended December 31, 2024:
| Financial Services | Consumer and Healthcare | High Tech and Manufacturing | Total | ||||||||||||||||||||
| Opening balance | $ | 408,674 | $ | 592,780 | $ | 682,328 | $ | 1,683,782 | |||||||||||||||
| Effect of exchange rate fluctuations | (3,677) | (4,983) | (5,353) | (14,013) | |||||||||||||||||||
| Closing balance | $ | 404,997 | $ | 587,797 | $ | 676,975 | $ | 1,669,769 | |||||||||||||||
The following table presents the changes in goodwill by reporting unit for the year ended December 31, 2025:
| Financial Services | Consumer and Healthcare | High Tech and Manufacturing | Total | ||||||||||||||||||||
| Opening balance | $ | 404,997 | $ | 587,797 | $ | 676,975 | $ | 1,669,769 | |||||||||||||||
| Goodwill relating to acquisitions consummated during the period | 6,132 | 88,519 | 17,274 | 111,925 | |||||||||||||||||||
| Impact of measurement period adjustments | 19 | 274 | 53 | 346 | |||||||||||||||||||
| Effect of exchange rate fluctuations | 280 | (106) | (1,098) | (924) | |||||||||||||||||||
| Closing balance | $ | 411,428 | $ | 676,484 | $ | 693,204 | $ | 1,781,116 | |||||||||||||||
9. Goodwill and intangible assets (Continued)
The Company performed its annual impairment test of goodwill for the years ended December 31, 2023, 2024 and 2025. For the years ended December 31, 2023 and 2024, the Company performed a qualitative assessment to test goodwill for impairment to determine if it was more likely than not that the fair value of a reporting unit was less than its carrying amount. For the year ended December 31, 2025, the Company performed a quantitative assessment for impairment of goodwill as of December 31, 2025 for all reporting units to enhance the robustness of the testing process and to establish updated fair value baselines. Accordingly, the fair value of each reporting unit was determined using an income approach (discounted cash flow method). This valuation required management to make significant estimates regarding future cash flows, including projections of revenue growth, operating margins, and the selection of appropriate market-participant discount rates and terminal growth rates. .
Based on the results of the quantitative assessment, the fair value of each reporting unit was found to be substantially in excess of its carrying value and the Company concluded that no impairment existed as of December 31, 2025. For the years ended December 31, 2023 and 2024, the Company's qualitative assessments showed that it was more likely than not that the fair value of the Company's reporting units exceeded their carrying amounts for those periods and concluded that no impairment existed as of December 31, 2023 and 2024.
The total amount of the Company’s goodwill deductible for income tax purposes was $237,125 and $210,585 as of December 31, 2024 and 2025, respectively.
The Company’s intangible assets are as follows:
| As of December 31, 2024 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Gross carrying amount | Accumulated amortization & Impairment | Net | Gross carrying amount | Accumulated amortization & Impairment | Net | ||||||||||||||||||||||||||||||
| Customer-related intangible assets | $ | 468,500 | $ | 451,285 | $ | 17,215 | $ | 513,977 | $ | 459,682 | $ | 54,295 | |||||||||||||||||||||||
| Marketing-related intangible assets | 97,607 | 93,609 | 3,998 | 102,233 | 102,208 | 25 | |||||||||||||||||||||||||||||
| Technology-related intangible assets | 131,853 | 126,116 | 5,737 | 141,659 | 128,939 | 12,720 | |||||||||||||||||||||||||||||
| $ | 697,960 | $ | 671,010 | $ | 26,950 | $ | 757,869 | $ | 690,829 | $ | 67,040 | ||||||||||||||||||||||||
Amortization expenses for intangible assets acquired as part of a business combination and disclosed in the consolidated statements of income under amortization of acquired intangible assets for the years ended December 31, 2023, 2024 and 2025 was $31,463 , $26,476 and $24,292, respectively.
Amortization expenses for internally-developed and other intangible assets disclosed in the consolidated statements of income under cost of revenue and selling, general and administrative expenses for the years ended December 31, 2023, 2024 and 2025 were $8,571, $2,061 and $3,481, respectively.
Amortization expenses for the technology-related, internally-developed intangible assets set forth above include the effect of the reclassification of foreign exchange (gains) losses related to the effective portion of foreign currency derivative contracts, amounting to $(4), $(5) and $22 for the years ended December 31, 2023, 2024 and 2025, respectively.
9. Goodwill and intangible assets (Continued)
The estimated amortization schedule for the Company’s intangible assets for future periods as of December 31, 2025 is set out below:
| For the year ending December 31: | |||||
| 2026 | $ | 17,948 | |||
| 2027 | 16,094 | ||||
| 2028 | 11,804 | ||||
| 2029 | 9,684 | ||||
| 2030 | 8,097 | ||||
| 2031 | 3,413 | ||||
| Total | $ | 67,040 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 26, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.