Accounts receivable, net of allowance for credit losses |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts receivable, net of allowance for credit losses | Accounts receivable, net of allowance for credit losses The following table provides details of the Company’s allowance for credit losses on accounts receivable:
Accounts receivable were $1,262,647 and $1,282,630, and allowances for credit losses were $22,097 and $22,708, resulting in net accounts receivable balances of $1,240,550 and $1,259,922 as of December 31, 2025 and March 31, 2026, respectively. In addition, deferred billings were $232,647 and $253,483 and allowances for credit losses on deferred billings were $10,659 and $12,435, resulting in net deferred billings balances of $221,988 and $241,048 as of December 31, 2025 and March 31, 2026, respectively. During the three months ended March 31, 2025 and 2026, the Company recorded charges of $1,448 and $1,776, respectively, to the income statement on account of credit losses on deferred billings. Deferred billings, net of related allowances for credit losses, are included under “Other assets” in the Company’s consolidated balance sheets as of December 31, 2025 and March 31, 2026. The Company has a revolving accounts receivable-based facility of $100,000 as of December 31, 2025 and March 31, 2026 that permits it to sell accounts receivable to banks on a non-recourse basis in the ordinary course of business. The aggregate maximum capacity utilized by the Company at any time during the year ended December 31, 2025 and the three months ended March 31, 2026 was $59,952 and $79,461, respectively. The principal amount outstanding against this facility as of December 31, 2025 and March 31, 2026 was $55,140 and $79,436, respectively. The cost of factoring such accounts receivable during the three months ended March 31, 2025 and 2026 was $678 and $681, respectively. Gains or losses on the sales are recorded at the time of transfer of the accounts receivable and are included under "interest income (expense), net" in the Company’s consolidated statements of income. 4. Accounts receivable, net of allowance for credit losses (Continued) The Company also has arrangements with financial institutions that manage the accounts payable program for certain of the Company's large clients. The Company sells certain accounts receivable pertaining to such clients to these financial institutions on a non-recourse basis. There is no cap on the value of accounts receivable that can be sold under these arrangements. The Company used these arrangements to sell accounts receivable amounting to $327,207 during the year ended December 31, 2025 and $85,052 during the three months ended March 31, 2026, which also represent the maximum capacity utilized under these arrangements in each such period. The cost of factoring such accounts receivable during the three months ended March 31, 2025 and 2026 was $1,176 and $1,301, respectively. These costs are included under "interest income (expense), net" in the Company’s consolidated statements of income.
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