| Schedule of Aggregate Notional Principal Amounts of Outstanding Derivative Financial Instruments |
The following table presents the aggregate notional principal amounts of outstanding derivative financial instruments together with the related balance sheet exposure: | | | | | | | | | | | | | | | | | | | | | | | | | Notional principal amounts (Note a) | | Balance sheet exposure asset (liability) (Note b) | | As of December 31, 2025 | | As of March 31, 2026 | | As of December 31, 2025 | | As of March 31, 2026 | | Foreign exchange forward contracts denominated in: | | | | | | | | | United States Dollars (sell) Indian Rupees (buy) | $ | 2,771,310 | | | $ | 2,537,209 | | | $ | (72,843) | | | $ | (167,737) | | | United States Dollars (sell) Mexican Peso (buy) | 71,400 | | | 60,900 | | | 2,201 | | | 2,585 | | | United States Dollars (sell) Philippines Peso (buy) | 234,000 | | | 214,050 | | | (5,739) | | | (9,427) | | | Euro (sell) United States Dollars (buy) | 446,846 | | | 422,290 | | | (9,636) | | | 269 | | | Euro (sell) Romanian Leu (buy) | 63,353 | | | 46,449 | | | 143 | | | 478 | | | Japanese Yen (sell) Chinese Renminbi (buy) | 67,617 | | | 71,212 | | | 3,746 | | | 5,109 | | | United States Dollars (sell) Chinese Renminbi (buy) | 82,800 | | | 72,300 | | | 144 | | | 1,108 | | | Pound Sterling (sell) United States Dollars (buy) | 92,322 | | | 80,245 | | | (279) | | | 1,263 | | | United States Dollars (sell) Hungarian Forint (buy) | 33,000 | | | 24,000 | | | 2,524 | | | 1,688 | | | Australian Dollars (sell) Indian Rupees (buy) | 189,797 | | | 186,385 | | | (8,204) | | | (17,613) | | | United States Dollars (sell) Polish Zloty (buy) | 42,000 | | | 35,250 | | | 1,884 | | | 375 | | | Japanese Yen (sell) United States Dollars (buy) | 7,000 | | | — | | | 238 | | | — | | | Israeli Shekel (buy) United States Dollars (sell) | 30,000 | | | 20,000 | | | 1,025 | | | 527 | | | South African Rand (sell) United States Dollars (buy) | 18,000 | | | 18,000 | | | (1,186) | | | (836) | | | United States Dollars (sell) Brazilian Real (buy) | 4,000 | | | 4,000 | | | (46) | | | 136 | | | United States Dollars (sell) Costa Rica Colon (buy) | 44,400 | | | 44,300 | | | 773 | | | 2,838 | | | United States Dollars (sell) Canadian Dollar (buy) | 9,000 | | | 9,000 | | | 193 | | | 38 | | | United States Dollars (sell) Malaysian Ringgit (buy) | 21,000 | | | 21,250 | | | 486 | | | 343 | | | Interest rate swaps (floating to fixed) | 221,875 | | | 218,750 | | | (4,993) | | | (3,253) | | | $ | 4,449,720 | | | $ | 4,085,590 | | | $ | (89,569) | | | $ | (182,109) | |
(a)Notional amounts are key elements of derivative financial instrument agreements but do not represent the amount exchanged by counterparties and do not measure the Company’s exposure to credit, foreign exchange, interest rate or market risks. However, the amounts exchanged are based on the notional amounts and other provisions of the underlying derivative financial instrument agreements. Notional amounts are denominated in U.S. dollars.
(b)Balance sheet exposure is denominated in U.S. dollars and denotes the mark-to-market impact of the derivative financial instruments on the reporting date.
|
| Schedule of Fair Value of the Company’s Derivative Instruments and Their Location in the Company’s Financial Statements |
The fair value of the Company’s derivative instruments and their location in the Company’s financial statements are summarized in the table below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Cash flow hedges | | Non-designated | | | As of December 31, 2025 | | As of March 31, 2026 | | As of December 31, 2025 | | As of March 31, 2026 | | Assets | | | | | | | | | | Prepaid expenses and other current assets | | $ | 9,257 | | | $ | 12,127 | | | $ | 2,076 | | | $ | 3,126 | | | Other assets | | $ | 4,107 | | | $ | 8,495 | | | $ | — | | | $ | — | | | | | | | | | | | | Liabilities | | | | | | | | | | Accrued expenses and other current liabilities | | $ | 47,648 | | | $ | 93,640 | | | $ | 12,947 | | | $ | 27,929 | | | Other liabilities | | $ | 44,414 | | | $ | 84,288 | | | $ | — | | | $ | — | |
|
| Schedule of Gains (Losses) Recorded as a Component of Other Comprehensive Income (Loss) |
In connection with cash flow hedges, the gains (losses) recorded as a component of other comprehensive income (loss) (“OCI”), and the related tax effects are summarized below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, | | | 2025 | | 2026 | | | Before
tax
Amount | | Tax
(Expense)
or Benefit | | Net of
tax
Amount | | Before
tax
Amount | | Tax
(Expense)
or Benefit | | Net of
tax
Amount | | Opening balance | | $ | (29,271) | | | $ | 6,809 | | | $ | (22,462) | | | $ | (79,151) | | | $ | 19,815 | | | $ | (59,336) | | | Net gains (losses) reclassified into statement of income on completion of hedged transactions | | (5,228) | | | 1,234 | | | (3,994) | | | (11,495) | | | 3,098 | | | (8,397) | | | Changes in fair value of effective portion of outstanding derivatives, net | | 12,442 | | | (2,609) | | | 9,833 | | | (90,111) | | | 22,815 | | | (67,296) | | | Gain (loss) on cash flow hedging derivatives, net | | 17,670 | | | (3,843) | | | 13,827 | | | (78,616) | | | 19,717 | | | (58,899) | | | Closing balance | | $ | (11,601) | | | $ | 2,966 | | | $ | (8,635) | | | $ | (157,767) | | | $ | 39,532 | | | $ | (118,235) | |
|
| Schedule of Gains or Losses Recognized in Other Comprehensive Income (Loss) |
The gains or losses recognized in OCI and their effects on financial performance are summarized below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives in Cash Flow Hedging Relationships | | Amount of Gain (Loss) recognized in OCI on Derivatives (Effective Portion) | | Location of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | | Amount of Gain (Loss) reclassified from OCI into Statement of Income (Effective Portion) | | Three months ended March 31, | | | Three months ended March 31, | | 2025 | | 2026 | | | 2025 | | 2026 | | Forward foreign exchange contracts | | $ | 13,839 | | | $ | (91,371) | | | Revenue | | $ | 999 | | | $ | (225) | | | Interest rate swaps | | (1,397) | | | 1,260 | | | Cost of revenue | | (5,350) | | | (9,447) | | | Treasury rate lock | | | | — | | | Selling, general and administrative expenses | | (770) | | | (1,353) | | | | | | | | Interest expense | | (107) | | | (470) | | | | $ | 12,442 | | | $ | (90,111) | | | | | $ | (5,228) | | | $ | (11,495) | |
| | | | | | | | | | | | | | | | | | | | | | | | | Amount of Gain (Loss) recognized in Statement of Income on Derivatives | | | | | Three months ended March 31, | | Derivatives not designated as hedging instruments | | Location of Gain (Loss) recognized in Statement of Income on Derivatives | | 2025 | | 2026 | | Forward foreign exchange contracts (Note a) | | Foreign exchange gains (losses), net | | $ | 4,630 | | | $ | (24,304) | | | | | | $ | 4,630 | | | $ | (24,304) | |
(a)These forward foreign exchange contracts were entered into to hedge fluctuations in foreign exchange rates for recognized balance sheet items such as receivables and intercompany borrowings and were not originally designated as hedges under FASB guidance on derivatives and hedging. Realized gains (losses) and changes in the fair value of these derivatives are recorded in foreign exchange gains, net in the consolidated statements of income.
|