QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
The |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
☒ | Smaller reporting company | ||||||||||
Emerging growth company |
Class | Outstanding as of June 30, 2021 | |||||||
Common Stock, $0.0001 par value |
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 6. | ||||||||
May 31, 2021 | November 30, 2020 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Assets held for sale | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred tax assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Current portion of long-term debt | |||||||||||
Payable to former parent | |||||||||||
Accrued compensation and benefits | |||||||||||
Other accrued liabilities | |||||||||||
Income taxes payable | |||||||||||
Liabilities held for sale | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Other long-term liabilities | |||||||||||
Deferred tax liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 15) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock, | ( | ||||||||||
Retained earnings | |||||||||||
Former parent company investment | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense and finance charges, net | |||||||||||||||||||||||
Other expense (income), net | ( | ( | ( | ||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Unrealized (loss) gain of defined benefit plans, net of taxes of $ | ( | ( | ( | ||||||||||||||||||||
Unrealized gain on cash flow hedges during the period, net of taxes of $( | |||||||||||||||||||||||
Reclassification of net gains on cash flow hedges to net income, net of taxes of $ | ( | ( | ( | ( | |||||||||||||||||||
Total change in unrealized gain (loss) on cash flow hedges, net of taxes | ( | ( | ( | ||||||||||||||||||||
Foreign currency translation gain (loss), net of taxes of $ | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | $ |
Three and Six Months Ended May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Treasury stock | Retained earnings | Former parent company investment | Accumulated other comprehensive income (loss) | Total | |||||||||||||||||||||||||||||||||||
Balances, February 28, 2021 | $ | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation activity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Repurchase of common stock for tax withholdings on equity awards | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balances, May 31, 2021 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Balances, November 30, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Reclassification of net former parent investment in Concentrix | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock at separation and spin-off | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based compensation activity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Repurchase of common stock for tax withholdings on equity awards | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balances, May 31, 2021 | $ | $ | $ | ( | $ | $ | $ | $ |
Three and Six Months Ended May 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Treasury stock | Retained earnings | Former parent company investment | Accumulated other comprehensive loss | Total | |||||||||||||||||||||||||||||||||||
Balances, February 29, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Hypothetical current tax expense recorded for separate return basis presentation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balances, May 31, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Balances, November 30, 2019 | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Hypothetical current tax expense recorded for separate return basis presentation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balances, May 31, 2020 | $ | $ | $ | $ | $ | $ | ( | $ |
Six Months Ended | |||||||||||
May 31, 2021 | May 31, 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Non-cash share-based compensation expense | |||||||||||
Provision for doubtful accounts | ( | ||||||||||
Deferred income taxes | ( | ( | |||||||||
Hypothetical current tax expense recorded for separate return basis presentation | |||||||||||
Unrealized foreign exchange gains | ( | ||||||||||
Other | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ||||||||||
Payable to former parent | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Other operating assets and liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Repayments of loan to non-Concentrix subsidiary of former parent as part of its centralized treasury operations | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Acquisitions of business, net of cash acquired and refunds | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Repayments of the Credit Facility - Term Loan | ( | ||||||||||
Proceeds from the Securitization Facility | |||||||||||
Repayments of the Securitization Facility | ( | ||||||||||
Repayments of borrowings from former parent | ( | ||||||||||
Proceeds from exercise of stock options | |||||||||||
Repurchase of common stock for tax withholdings on equity awards | ( | ||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ( | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of year | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Supplemental disclosure of non-cash investing activities: | |||||||||||
Accrued costs for property and equipment purchases | $ | $ |
As of | |||||
May 31, 2021 | |||||
Accounts receivable, net | $ | ||||
Other current assets | |||||
Property and equipment, net | |||||
Goodwill | |||||
Intangible assets, net | |||||
Other assets | |||||
Total assets held for sale | $ | ||||
Accounts payable | $ | ||||
Accrued compensation and benefits | |||||
Other accrued liabilities | |||||
Deferred tax liabilities | |||||
Other long-term liabilities | |||||
Total liabilities held for sale | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||||||||||
Total share-based compensation | $ | $ | $ | $ | |||||||||||||||||||
Tax benefit recorded in the provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Effect on net income | $ | $ | $ | $ |
As of | |||||||||||
May 31, 2021 | November 30, 2020 | ||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash included in other current assets | |||||||||||
Cash, cash equivalents and restricted cash | $ | $ |
As of | |||||||||||
May 31, 2021 | November 30, 2020 | ||||||||||
Billed accounts receivable | $ | $ | |||||||||
Unbilled accounts receivable | |||||||||||
Less: Allowance for doubtful accounts | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
May 31, | May 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Net additions (reductions) | ( | ||||||||||||||||||||||
Write-offs and reclassifications | ( | ( | ( | ( | |||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
As of | |||||||||||
May 31, 2021 | November 30, 2020 | ||||||||||
Land | $ | $ | |||||||||
Equipment, computers and software | |||||||||||
Furniture and fixtures | |||||||||||
Buildings, building improvements and leasehold improvements | |||||||||||
Construction-in-progress | |||||||||||
Total property and equipment, gross | $ | $ | |||||||||
Less: Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ |
As of | |||||||||||
May 31, 2021 | November 30, 2020 | ||||||||||
Property and equipment, net: | |||||||||||
United States | $ | $ | |||||||||
Philippines | |||||||||||
India | |||||||||||
Others | |||||||||||
Total | $ | $ |
Balance as of November 30, 2020 | $ | ||||
Acquisition | |||||
Assets held for sale | ( | ||||
Foreign exchange translation | |||||
Balance as of May 31, 2021 | $ |
As of May 31, 2021 | As of November 30, 2020 | ||||||||||||||||||||||||||||||||||
Gross amounts | Accumulated amortization | Net amounts | Gross amounts | Accumulated amortization | Net amounts | ||||||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Technology | ( | ( | |||||||||||||||||||||||||||||||||
Trade names | ( | ( | |||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | $ | ( | $ |
Fiscal years ending November 30, | |||||
2021 (remaining 6 months) | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total | $ |
Three Months Ended May 31, 2021 and 2020 | |||||||||||||||||||||||
Unrecognized gains (losses) on defined benefit plan, net of taxes | Unrealized gains (losses) on cash flow hedges, net of taxes | Foreign currency translation adjustments, net of taxes | Total | ||||||||||||||||||||
Balance, February 29, 2020 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ( | ( | ||||||||||||||||||||
Reclassification of gains from other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balances at May 31, 2020 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Balance, February 28, 2021 | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ||||||||||||||||||||||
Reclassification of gains from other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balances at May 31, 2021 | $ | ( | $ | $ | $ |
Six Months Ended May 31, 2021 and 2020 | |||||||||||||||||||||||
Unrecognized gains (losses) on defined benefit plan, net of taxes | Unrealized gains (losses) on cash flow hedges, net of taxes | Foreign currency translation adjustments, net of taxes | Total | ||||||||||||||||||||
Balance, November 30, 2019 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ( | |||||||||||||||||||||
Reclassification of gains from other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balances at May 31, 2020 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Balance, November 30, 2020 | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ||||||||||||||||||||||
Reclassification of gains from other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balances at May 31, 2021 | $ | ( | $ | $ | $ |
Three Months Ended May 31, 2021 and 2020 | |||||||||||||||||
Restructuring costs | Severance and benefits | Facility and exit costs | Total | ||||||||||||||
Accrued balance as of February 29, 2020 | $ | $ | $ | ||||||||||||||
Additional (release of) accrual during the period | ( | ||||||||||||||||
Cash payments | ( | ( | ( | ||||||||||||||
Accrued balance as of May 31, 2020 | $ | $ | $ | ||||||||||||||
Accrued balance as of February 28, 2021 | $ | $ | $ | ||||||||||||||
Release of accrual during the period | ( | ( | |||||||||||||||
Cash payments | ( | ( | |||||||||||||||
Accrued balance as of May 31, 2021 | $ | $ | $ |
Six Months Ended May 31, 2021 and 2020 | |||||||||||||||||
Restructuring costs | Severance and benefits | Facility and exit costs | Total | ||||||||||||||
Accrued balance as of November 30, 2019 | $ | $ | $ | ||||||||||||||
Additional (release of) accrual during the period | ( | ( | |||||||||||||||
Cash payments | ( | ( | ( | ||||||||||||||
Accrued balance as of May 31, 2020 | $ | $ | $ | ||||||||||||||
Accrued balance as of November 30, 2020 | $ | $ | $ | ||||||||||||||
Release of accrual during the period | ( | ( | |||||||||||||||
Cash payments | ( | ( | |||||||||||||||
Accrued balance as of May 31, 2021 | $ | $ | $ |
As of | ||||||||||||||
Balance Sheet Line Item | May 31, 2021 | November 30, 2020 | ||||||||||||
Derivative instruments not designated as hedging instruments: | ||||||||||||||
Foreign exchange forward contracts (notional value) | $ | $ | ||||||||||||
Other current assets | ||||||||||||||
Other accrued liabilities | ||||||||||||||
Derivative instruments designated as cash flow hedges: | ||||||||||||||
Foreign exchange forward contracts (notional value) | $ | $ | ||||||||||||
Other current assets and other assets | ||||||||||||||
Other accrued liabilities and other long-term liabilities |
Locations of gain (loss) in income | For the three months ended | For the six months ended | |||||||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges | |||||||||||||||||||||||||||||
Gains recognized in OCI: | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | $ | $ | $ | |||||||||||||||||||||||||
Gains reclassified from AOCI into income: | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | |||||||||||||||||||||||||||||
Gain reclassified from AOCI into income | Cost of revenue for services | $ | $ | $ | $ | ||||||||||||||||||||||||
Gain reclassified from AOCI into income | Selling, general and administrative expenses | ||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||||||||
Derivative instruments not designated as hedging instruments: | |||||||||||||||||||||||||||||
Gain recognized from foreign exchange forward contracts, net(1) | Other income (expense), net | $ | $ | $ | $ |
As of May 31, 2021 | As of November 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurement category | Fair value measurement category | ||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Foreign government bond | |||||||||||||||||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Forward foreign currency exchange contracts | $ | $ | $ | $ | $ | $ | $ | $ |
As of | |||||||||||
May 31, 2021 | November 30, 2020 | ||||||||||
Credit Facility - current portion of Term Loan component | $ | $ | |||||||||
Borrowings, current | $ | $ | |||||||||
Credit Facility - Term Loan component | $ | $ | |||||||||
Securitization Facility | |||||||||||
Long-term debt, before unamortized debt discount and issuance costs | |||||||||||
Less: unamortized debt discount and issuance costs | ( | ( | |||||||||
Long-term debt, net | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||||||||||
Basic earnings per common share: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Less: net income allocated to participating securities(1) | ( | ( | |||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average number of common shares - basic | |||||||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per common share: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Less: net income allocated to participating securities(1) | ( | ( | |||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average number of common shares - basic | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Stock options and restricted stock units | |||||||||||||||||||||||
Weighted-average number of common shares - diluted | |||||||||||||||||||||||
Diluted earnings per common share | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||||||||||
Industry vertical: | |||||||||||||||||||||||
Technology and consumer electronics | $ | $ | $ | $ | |||||||||||||||||||
Communications and media | |||||||||||||||||||||||
Retail, travel and ecommerce | |||||||||||||||||||||||
Banking, financial services and insurance | |||||||||||||||||||||||
Healthcare | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
May 31, 2020 | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
Revenue from customer experience services to former parent | $ | $ | |||||||||
Interest expense on borrowings from former parent | |||||||||||
Interest income on borrowings made to former parent | |||||||||||
Corporate allocations | |||||||||||
Share-based compensation |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Short-term least cost | |||||||||||||||||||||||
Variable lease cost | |||||||||||||||||||||||
Sublease income | ( | ( | ( | ( | |||||||||||||||||||
Total operating lease cost | $ | $ | $ | $ |
Fiscal Years Ending November 30, | |||||
2021 (remaining six months) | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total payments | |||||
Less: imputed interest* | |||||
Total present value of lease payments | $ |
As of | ||||||||||||||||||||
May 31, 2021 | November 30, 2020 | |||||||||||||||||||
Operating lease ROU assets | $ | $ | ||||||||||||||||||
Current operating lease liabilities | ||||||||||||||||||||
Non-current operating lease liabilities |
Six Months Ended | |||||||||||
May 31, 2021 | May 31, 2020 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | $ | |||||||||
Non-cash ROU assets obtained in exchange for lease liabilities |
As of | |||||||||||
May 31, 2021 | November 30, 2020 | ||||||||||
Weighted-average remaining lease term (years) | |||||||||||
Weighted-average discount rate | % | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||
Revenue | $ | 1,369,878 | $ | 1,066,363 | $ | 2,723,156 | $ | 2,254,982 | |||||||||||||||
Cost of revenue | 887,149 | 721,193 | 1,754,377 | 1,464,622 | |||||||||||||||||||
Gross profit | 482,729 | 345,170 | 968,779 | 790,360 | |||||||||||||||||||
Selling, general and administrative expenses | 354,505 | 321,590 | 705,666 | 678,569 | |||||||||||||||||||
Operating income | 128,224 | 23,580 | 263,113 | 111,791 | |||||||||||||||||||
Interest expense and finance charges, net | 6,745 | 12,928 | 14,448 | 30,513 | |||||||||||||||||||
Other expense (income), net | (3,546) | (1,641) | 257 | (4,876) | |||||||||||||||||||
Income before income taxes | 125,025 | 12,293 | 248,408 | 86,154 | |||||||||||||||||||
Provision for income taxes | 42,121 | 9,823 | 76,693 | 31,367 | |||||||||||||||||||
Net income | $ | 82,904 | $ | 2,470 | $ | 171,715 | $ | 54,787 |
Three Months Ended | % Change | Six Months Ended | % Change | ||||||||||||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | 2021 to 2020 | May 31, 2021 | May 31, 2020 | 2021 to 2020 | ||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||
Industry vertical: | |||||||||||||||||||||||||||||||||||
Technology and consumer electronics | $ | 417,277 | $ | 327,997 | 27.2 | % | $ | 830,095 | $ | 651,910 | 27.3 | % | |||||||||||||||||||||||
Communications and media | 254,860 | 210,684 | 21.0 | % | 503,650 | 474,248 | 6.2 | % | |||||||||||||||||||||||||||
Retail, travel and ecommerce | 231,966 | 168,380 | 37.8 | % | 470,967 | 367,294 | 28.2 | % | |||||||||||||||||||||||||||
Banking, financial services and insurance | 228,816 | 168,283 | 36.0 | % | 437,900 | 360,987 | 21.3 | % | |||||||||||||||||||||||||||
Healthcare | 115,418 | 84,965 | 35.8 | % | 240,642 | 182,290 | 32.0 | % | |||||||||||||||||||||||||||
Other | 121,541 | 106,053 | 14.6 | % | 239,902 | 218,254 | 9.9 | % | |||||||||||||||||||||||||||
Total | $ | 1,369,878 | $ | 1,066,363 | 28.5 | % | $ | 2,723,156 | $ | 2,254,982 | 20.8 | % |
Three Months Ended | % Change | Six Months Ended | % Change | ||||||||||||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | 2021 to 2020 | May 31, 2021 | May 31, 2020 | 2021 to 2020 | ||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||
Cost of revenue | $ | 887,149 | $ | 721,193 | 23.0 | % | $ | 1,754,377 | $ | 1,464,622 | 19.8 | % | |||||||||||||||||||||||
Gross profit | 482,729 | 345,170 | 39.9 | % | 968,779 | 790,360 | 22.6 | % | |||||||||||||||||||||||||||
Gross margin % | 35.2 | % | 32.4 | % | 35.6 | % | 35.0 | % |
Three Months Ended | % Change | Six Months Ended | % Change | ||||||||||||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | 2021 to 2020 | May 31, 2021 | May 31, 2020 | 2021 to 2020 | ||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 354,505 | $ | 321,590 | 10.2 | % | $ | 705,666 | $ | 678,569 | 4.0 | % | |||||||||||||||||||||||
Percentage of revenue | 25.9 | % | 30.2 | % | 25.9 | % | 30.1 | % |
Three Months Ended | % Change | Six Months Ended | % Change | ||||||||||||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | 2021 to 2020 | May 31, 2021 | May 31, 2020 | 2021 to 2020 | ||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||
Operating income | $ | 128,224 | $ | 23,580 | 443.8 | % | $ | 263,113 | $ | 111,791 | 135.4 | % | |||||||||||||||||||||||
Operating margin | 9.4 | % | 2.2 | % | 9.7 | % | 5.0 | % |
Three Months Ended | % Change | Six Months Ended | % Change | ||||||||||||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | 2021 to 2020 | May 31, 2021 | May 31, 2020 | 2021 to 2020 | ||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||
Interest expense and finance charges, net | $ | 6,745 | $ | 12,928 | (47.8) | % | $ | 14,448 | $ | 30,513 | (52.6) | % | |||||||||||||||||||||||
Percentage of revenue | 0.5 | % | 1.2 | % | 0.5 | % | 1.4 | % |
Three Months Ended | % Change | Six Months Ended | % Change | ||||||||||||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | 2021 to 2020 | May 31, 2021 | May 31, 2020 | 2021 to 2020 | ||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||
Other expense (income), net | $ | (3,546) | $ | (1,641) | 116.1 | % | $ | 257 | $ | (4,876) | (105.3) | % | |||||||||||||||||||||||
Percentage of revenue | (0.3) | % | (0.2) | % | — | % | (0.2) | % |
Three Months Ended | % Change | Six Months Ended | % Change | ||||||||||||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | 2021 to 2020 | May 31, 2021 | May 31, 2020 | 2021 to 2020 | ||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | ||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | 42,121 | $ | 9,823 | 328.8 | % | $ | 76,693 | $ | 31,367 | 144.5 | % | |||||||||||||||||||||||
Percentage of income before income taxes | 33.7 | % | 79.9 | % | 30.9 | % | 36.4 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||||||||||
($ in thousands except per share amounts) | |||||||||||||||||||||||
Revenue | $ | 1,369,878 | $ | 1,066,363 | $ | 2,723,156 | $ | 2,254,982 | |||||||||||||||
Foreign currency translation | (44,766) | — | (70,480) | — | |||||||||||||||||||
Revenue in constant currency | $ | 1,325,112 | $ | 1,066,363 | $ | 2,652,676 | $ | 2,254,982 | |||||||||||||||
Operating income | $ | 128,224 | $ | 23,580 | $ | 263,113 | $ | 111,791 | |||||||||||||||
Acquisition-related and integration expenses | — | 3,198 | — | 17,550 | |||||||||||||||||||
Spin-off related expenses | — | 506 | — | 1,506 | |||||||||||||||||||
Amortization of intangibles | 34,597 | 36,379 | 69,198 | 73,357 | |||||||||||||||||||
Share-based compensation | 9,283 | 3,840 | 16,401 | 8,102 | |||||||||||||||||||
Non-GAAP operating income | $ | 172,104 | $ | 67,503 | $ | 348,712 | $ | 212,306 | |||||||||||||||
Net income | $ | 82,904 | $ | 2,470 | $ | 171,715 | $ | 54,787 | |||||||||||||||
Interest expense and finance charges, net | 6,745 | 12,928 | 14,448 | 30,513 | |||||||||||||||||||
Provision for income taxes | 42,121 | 9,823 | 76,693 | 31,367 | |||||||||||||||||||
Other expense (income), net | (3,546) | (1,641) | 257 | (4,876) | |||||||||||||||||||
Acquisition-related and integration expenses | — | 3,198 | — | 17,550 | |||||||||||||||||||
Spin-off related expenses | — | 506 | — | 1,506 | |||||||||||||||||||
Amortization of intangibles | 34,597 | 36,379 | 69,198 | 73,357 | |||||||||||||||||||
Share-based compensation | 9,283 | 3,840 | 16,401 | 8,102 | |||||||||||||||||||
Depreciation (excluding accelerated depreciation included in acquisition-related and integration expenses above) | 36,226 | 30,161 | 72,225 | 61,822 | |||||||||||||||||||
Adjusted EBITDA | $ | 208,330 | $ | 97,664 | $ | 420,937 | $ | 274,128 | |||||||||||||||
Operating margin | 9.4 | % | 2.2 | % | 9.7 | % | 5.0 | % | |||||||||||||||
Non-GAAP operating margin | 12.6 | % | 6.3 | % | 12.8 | % | 9.4 | % | |||||||||||||||
Adjusted EBITDA margin | 15.2 | % | 9.2 | % | 15.5 | % | 12.2 | % | |||||||||||||||
Net income | $ | 82,904 | $ | 2,470 | $ | 171,715 | $ | 54,787 | |||||||||||||||
Acquisition-related and integration expenses | — | 3,198 | — | 17,550 | |||||||||||||||||||
Spin-off related expenses | — | 506 | — | 1,506 | |||||||||||||||||||
Amortization of intangibles | 34,597 | 36,379 | 69,198 | 73,357 | |||||||||||||||||||
Share-based compensation | 9,283 | 3,840 | 16,401 | 8,102 | |||||||||||||||||||
Income taxes related to the above(1) | (11,107) | (11,125) | (21,674) | (24,594) | |||||||||||||||||||
Income tax effect of assets held for sale(2) | 9,247 | — | 9,247 | — | |||||||||||||||||||
Non-GAAP net income | $ | 124,924 | $ | 35,268 | $ | 244,887 | $ | 130,708 | |||||||||||||||
Diluted earnings per common share (“EPS”) | $ | 1.57 | $ | 0.05 | $ | 3.26 | $ | 1.06 | |||||||||||||||
Acquisition-related and integration expenses | — | 0.06 | — | 0.34 | |||||||||||||||||||
Spin-off related expenses | — | 0.01 | — | 0.03 | |||||||||||||||||||
Amortization of intangibles | 0.66 | 0.70 | 1.31 | 1.42 | |||||||||||||||||||
Share-based compensation | 0.18 | 0.07 | 0.31 | 0.16 | |||||||||||||||||||
Income taxes related to the above(1) | (0.22) | (0.21) | (0.41) | (0.48) | |||||||||||||||||||
Income tax effect of assets held for sale(2) | 0.18 | — | 0.18 | — | |||||||||||||||||||
Non-GAAP Diluted EPS | $ | 2.37 | $ | 0.68 | $ | 4.65 | $ | 2.53 |
Six Months Ended | |||||||||||
May 31, 2021 | May 31, 2020 | ||||||||||
($ in thousands) | |||||||||||
Net cash provided by operating activities | $ | 239,115 | $ | 297,201 | |||||||
Net cash used in investing activities | (73,773) | (66,384) | |||||||||
Net cash used in financing activities | (182,586) | (212,936) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (6,626) | (3,178) | |||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (23,870) | $ | 14,703 | |||||||
Cash, cash equivalents and restricted cash at beginning of year | 156,351 | 83,514 | |||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 132,481 | $ | 98,217 |
Six Months Ended | |||||||||||
May 31, 2021 | May 31, 2020 | ||||||||||
($ in thousands) | |||||||||||
Net cash provided by operating activities | $ | 239,115 | $ | 297,201 | |||||||
Purchases of property and equipment | (70,758) | (69,241) | |||||||||
Free cash flow (a non-GAAP measure) | $ | 168,357 | $ | 227,960 |
Exhibit No. | Exhibit Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
10.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Date: July 9, 2021 | CONCENTRIX CORPORATION | ||||||||||
By: | /s/ Christopher Caldwell | ||||||||||
Christopher Caldwell | |||||||||||
President and Chief Executive Officer | |||||||||||
By: | /s/ Andre Valentine | ||||||||||
Andre Valentine | |||||||||||
Chief Financial Officer | |||||||||||
Originator | State of Organization | ||||
Concentrix Corporation | Delaware | ||||
Concentrix Services US, Inc. | Delaware | ||||
Concentrix CVG Corporation | Delaware | ||||
Concentrix CVG Delaware International Inc. | Delaware | ||||
Concentrix CVG Customer Management Group Inc. | Ohio | ||||
Concentrix CVG CMG Insurance Services LLC | Ohio | ||||
Encore Receivable Management, Inc. | Kansas | ||||
Concentrix Solutions Corporation | New York |
Originator | Location of Books and Records | ||||
Concentrix Corporation | 201 East 4th Street, Cincinnati OH 45202 | ||||
Concentrix Services US, Inc. | 201 East 4th Street, Cincinnati OH 45202 | ||||
Concentrix CVG Corporation | 201 East 4th Street, Cincinnati OH 45202 | ||||
Concentrix CVG Delaware International Inc. | 201 East 4th Street, Cincinnati OH 45202 | ||||
Concentrix CVG Customer Management Group Inc. | 201 East 4th Street, Cincinnati OH 45202 | ||||
Concentrix CVG CMG Insurance Services LLC | 201 East 4th Street, Cincinnati OH 45202 | ||||
Encore Receivable Management, Inc. | 201 East 4th Street, Cincinnati OH 45202 | ||||
Concentrix Solutions Corporation | 201 East 4th Street, Cincinnati OH 45202 |
Legal Name | Trade Names | ||||
Concentrix Corporation | Concentrix Global Holdings, Inc. | ||||
Concentrix Services US, Inc. | The Minacs Group (USA) Inc. | ||||
Concentrix CVG Corporation | Delta Merger Sub II, LLC Convergys Corporation | ||||
Concentrix CVG Delaware International Inc. | Stream International Inc. | ||||
Concentrix CVG Customer Management Group Inc. | Convergys Customer Management Group Inc. | ||||
Concentrix CVG CMG Insurance Services LLC | Convergys CMG Insurance Services LLC | ||||
Encore Receivable Management, Inc. | - | ||||
Concentrix Solutions Corporation | Concentrix Corporation |
July 9, 2021 | /s/ Christopher Caldwell | |||||||
Christopher Caldwell | ||||||||
Chief Executive Officer | ||||||||
July 9, 2021 | /s/ Andre Valentine | |||||||
Andre Valentine | ||||||||
Chief Financial Officer |
/s/ Christopher Caldwell | |||||
Date: July 9, 2021 | Christopher Caldwell President and Chief Executive Officer |
/s/ Andre Valentine | |||||
Date: July 9, 2021 | Andre Valentine Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) |
May 31, 2021
$ / shares
shares
|
---|---|
Statement of Financial Position [Abstract] | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 |
Preferred stock, shares outstanding (in shares) | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
Common stock, shares authorized (in shares) | 250,000,000 |
Common stock, shares issued (in shares) | 51,296,000 |
Common stock, shares outstanding (in shares) | 51,296,000 |
Treasury stock (in shares) | 4,000 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
|
Income Statement [Abstract] | ||||
Revenue | $ 1,369,878 | $ 1,066,363 | $ 2,723,156 | $ 2,254,982 |
Cost of revenue | 887,149 | 721,193 | 1,754,377 | 1,464,622 |
Gross profit | 482,729 | 345,170 | 968,779 | 790,360 |
Selling, general and administrative expenses | 354,505 | 321,590 | 705,666 | 678,569 |
Operating income | 128,224 | 23,580 | 263,113 | 111,791 |
Interest expense and finance charges, net | 6,745 | 12,928 | 14,448 | 30,513 |
Other expense (income), net | (3,546) | (1,641) | 257 | (4,876) |
Income before income taxes | 125,025 | 12,293 | 248,408 | 86,154 |
Provision for income taxes | 42,121 | 9,823 | 76,693 | 31,367 |
Net income | $ 82,904 | $ 2,470 | $ 171,715 | $ 54,787 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.59 | $ 0.05 | $ 3.31 | $ 1.06 |
Diluted (in dollars per share) | $ 1.57 | $ 0.05 | $ 3.26 | $ 1.06 |
Weighted-average common shares outstanding | ||||
Basic (in shares) | 51,275 | 51,602 | 51,215 | 51,602 |
Diluted (in shares) | 52,005 | 51,602 | 51,928 | 51,602 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Change in unrealized losses of defined benefit plans, tax | $ 0 | $ 0 | $ 98 | $ 0 |
Unrealized gains (losses) on cash flow hedges, tax | (6,048) | (844) | (3,793) | (257) |
Reclassification of net loss on cash flow hedges to net income, tax | 2,518 | 1,144 | 5,540 | 2,798 |
Foreign currency translation gain (loss), tax | $ 0 | $ 0 | $ 0 | $ 0 |
BACKGROUND AND BASIS OF PRESENTATION |
6 Months Ended |
---|---|
May 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION: Background Concentrix Corporation (“Concentrix,” the “CX business” or the “Company”) is a leading global provider of technology-infused Customer Experience (“CX”) solutions that help iconic and disruptive brands drive deep understanding, full lifecycle engagement, and differentiated experiences for their end-customers around the world. The Company provides end-to-end capabilities, including CX process optimization, technology innovation, front- and back-office automation analytics and business transformation services to clients in five primary industry verticals. On December 1, 2020, the separation of the CX business (the “separation”) from SYNNEX Corporation (“SYNNEX” or the “former parent”) was completed through a tax-free distribution of all of the issued and outstanding shares of the Company’s common stock to SYNNEX stockholders (the “distribution” and, together with the separation, the “spin-off”). SYNNEX stockholders received one share of the Company’s common stock for each share of SYNNEX common stock held as of the close of business on November 17, 2020. As a result of the spin-off, the Company became an independent public company and the Company’s common stock commenced trading on the Nasdaq Stock Market (“Nasdaq”) under the symbol “CNXC” on December 1, 2020. In connection with the spin-off, on November 30, 2020, the Company entered into a separation and distribution agreement, an employee matters agreement, a tax matters agreement and a commercial agreement with SYNNEX to set forth the principal actions to be taken in connection with the spin-off and define the Company’s ongoing relationship with SYNNEX after the spin-off. Basis of presentation The accompanying interim unaudited consolidated financial statements have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The amounts as of November 30, 2020 have been derived from the Company’s annual audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2020. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial position of the Company and its results of operations and cash flows as of and for the periods presented. These interim consolidated financial statements should be read in conjunction with the annual audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2020. Prior to the spin-off on December 1, 2020 Prior to the spin-off, the CX business was held entirely within certain wholly-owned subsidiaries of SYNNEX dedicated to the CX business. As the separate legal entities that made up the CX business were not historically held by a single legal entity, the financial statements of the Company were prepared in connection with the expected separation and were derived from the SYNNEX consolidated financial statements and accounting records as if the Company had been operated on a stand-alone basis during the periods presented. Accordingly, for periods prior to December 1, 2020, the Company’s financial statements are presented on a combined basis, and for the periods subsequent to December 1, 2020, they are presented on a consolidated basis (all periods hereinafter are referred to as “consolidated financial statements”). All direct revenue and expenses attributable to the CX business, including certain allocations of former parent costs and expenses, were separately maintained in a separate ledger in the legal entities that made up the CX business. As the separate legal entities that made up the CX business were not historically held by a single legal entity, former parent company investment was shown in lieu of stockholders’ equity in the prior periods. All significant intercompany balances and transactions between the legal entities that comprised the CX business were eliminated. Management of the Company and the former parent considered allocations of former parent costs to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, have reflected the expense the Company would have incurred as a stand-alone company for those periods presented. Actual costs that may have been incurred if the Company had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and other strategic decisions. Prior to the spin-off, certain Concentrix legal entities in the United States jointly and severally guaranteed certain of SYNNEX’ borrowing arrangements and substantially all of the assets of these Concentrix legal entities secured SYNNEX’ obligations under the borrowing arrangements. Historically, Concentrix received or provided funding for acquisitions or ongoing operations as part of SYNNEX’ centralized treasury program. Accordingly, only cash amounts specifically recorded in the separate Concentrix ledger were reflected in the balance sheets. The Company reflected transfers of the cash from the former parent’s cash management system as loans or other accounts payable to the former parent or a reduction of accounts or loans receivable in the balance sheets based on the purpose for which the cash was provided by the former parent. Similarly, cash transfers to the former parent were reflected as reductions of loans or other accounts payable to the former parent or as loans receivable from the former parent. The cash payments and receipts were recorded in the statements of cash flows as operating or financing activities based on the nature of the transactions for which the funds were transferred between the Company and the former parent. Prior to the spin-off, operations of Concentrix were included in the consolidated U.S. federal, and certain state and local income tax returns filed by SYNNEX, where applicable. Concentrix also filed certain separate state, local and foreign tax returns. Income tax expense and other income tax related information contained in the financial statements prior to the spin-off were presented on a separate return basis, which required the Company to estimate tax expense as if the Company filed a separate return apart from SYNNEX. The income taxes of Concentrix as presented in the financial statements for these periods may not be indicative of the income taxes that Concentrix has incurred or will incur following the spin-off. Reclassifications Certain amounts in the consolidated financial statements related to the prior period have been reclassified to conform to the current period’s presentation. Risks and uncertainties related to the COVID-19 pandemic In December 2019, there was an outbreak of a new strain of coronavirus (“COVID-19”), which was declared a pandemic by the World Health Organization in March 2020. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and labor force participation, and created significant volatility and disruption of financial markets. The Company successfully transitioned a significant portion of its workforce to a remote working environment throughout the second quarter of 2020 and implemented a number of safety and social distancing measures in our sites to protect the health and safety of employees. During the six months ended May 31, 2021, almost all of the Company’s workforce was productive. The Company is unable to predict how long the pandemic conditions will persist in regions in which the Company operates, if or when countries or localities may experience an increase in COVID-19 cases, what additional measures may be introduced by governments or the Company’s clients in response to the pandemic generally or to an increase in COVID-19 cases in a particular country or locality, and the effect of any such additional measures on the Company’s business. As a result, many of the estimates and assumptions used in preparation of these consolidated financial statements required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve with respect to the pandemic and the global recovery from the pandemic, the Company’s estimates may materially change in future periods.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended |
---|---|
May 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: For a discussion of the Company’s significant accounting policies, refer to the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2020. Accounting pronouncements adopted during the six months ended May 31, 2021 are discussed below. Concentration of credit risk For the three and six months ended May 31, 2021, one client accounted for 11.2% and 11.5% of the Company’s consolidated revenue, respectively. For the three and six months ended May 31, 2020, one client accounted for 10.8% and 10.3% of the Company’s consolidated revenue, respectively. As of May 31, 2021 and November 30, 2020, one client comprised 14.0% and 16.2%, respectively, of the Company’s total accounts receivable balance. Recently adopted accounting pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued a new credit loss standard that replaces the current incurred loss impairment model with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. This standard became effective for the Company's fiscal year beginning December 1, 2020. The adoption did not have a material impact on the consolidated financial statements. Recently issued accounting pronouncements In March 2020, the FASB issued optional guidance for a limited time to ease the potential burden in accounting for or recognizing the effects of reference rate reform, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”) on financial reporting. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are elective and are effective upon issuance for all entities through December 31, 2022. The Company is currently evaluating the impact of the new guidance. In December 2019, the FASB issued new guidance that simplifies the accounting for income taxes. The guidance is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those reporting periods. Certain amendments should be applied prospectively, while other amendments should be applied retrospectively to all periods presented. The Company is currently evaluating the impact of the new guidance. In August 2018, the FASB issued new guidance to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The amendment requires the Company to disclose the weighted-average interest crediting rates used in cash balance pension plans. It also requires the Company to disclose the reasons for significant changes in the benefit obligation or plan assets including significant gains and losses affecting the benefit obligation for the period. This standard is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements.
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ASSETS HELD FOR SALE |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE: In May 2021, the Company entered into a definitive agreement to sell its insurance third-party administration operations and software platform, Concentrix Insurance Solutions (“CIS”), to a third party. The Company completed the sale of CIS during July 2021. As of May 31, 2021, the assets and liabilities of the CIS business qualified as assets and liabilities held for sale due to the planned divestiture. The following is a summary of the major categories of assets and liabilities that were reclassified to held for sale:
The Company determined that the sale of CIS did not qualify as discontinued operations. The CIS results of operations are included within the Company’s statements of operations for the full three and six months ended May 31, 2021.
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SHARE-BASED COMPENSATION |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION: In November 2020, in connection with the spin-off, SYNNEX, as sole stockholder of Concentrix, approved the Concentrix Corporation 2020 Stock Incentive Plan (the “Concentrix Stock Incentive Plan”) and the Concentrix Corporation 2020 Employee Stock Purchase Plan (the “Concentrix ESPP”), each to be effective upon completion of the spin-off. 4,000 shares of Concentrix common stock were reserved for issuance under the Concentrix Stock Incentive Plan, and 1,000 shares of Concentrix common stock were authorized for issuance under the Concentrix ESPP. Prior to the spin-off, certain of the Company’s employees participated in a long-term incentive plan sponsored by SYNNEX. In connection with the completion of the spin-off and pursuant to the employee matters agreement with SYNNEX, each outstanding SYNNEX share-based award as of the distribution date was converted into either (a) SYNNEX and Concentrix share-based awards, each with the same number of shares as the original SYNNEX award, or (b) a share-based award of only SYNNEX common stock or only Concentrix common stock, with an adjustment to the number of shares to preserve the value of the award. As a result of the conversion of awards, on December 1, 2020, 827 restricted stock awards and restricted stock units and 684 stock options were issued under the Concentrix Stock Incentive Plan. Following the conversion, it was determined that the share-based awards were modified in accordance with the applicable accounting guidance. As a result, the fair values of the share-based awards immediately before and after the modification were assessed in order to determine if the modification resulted in any incremental compensation cost related to the awards. Based on the analysis performed, including consideration of the anti-dilution feature contained in the SYNNEX stock incentive plan, it was determined that the conversion resulted in an immaterial amount of incremental compensation cost for the outstanding awards. On January 20, 2021, the Company granted 431 restricted stock awards and restricted stock units and 26 stock options under the Concentrix Stock Incentive Plan, representing annual employee stock awards for fiscal year 2020 and pro-rated non-employee director stock awards for the 2020-2021 service year. The employee grants were delayed from October 2020 to January 2021 due to the previously pending spin-off. The Company recognizes share-based compensation expense for all share-based awards made to employees, including employee stock options, restricted stock awards, restricted stock units, performance-based restricted stock units and employee stock purchases, based on estimated fair values. The Company recorded share-based compensation expense in the consolidated statements of operations for the three and six months ended May 31, 2021 and 2020 as follows:
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BALANCE SHEET COMPONENTS |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS: Cash, cash equivalents and restricted cash: The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows:
Restricted cash balances relate primarily to restrictions placed by banks on cash collateral for the issuance of bank guarantees and the terms of a government grant. Accounts receivable, net: Accounts receivable, net is comprised of the following:
Allowance for doubtful trade receivables: Presented below is a progression of the allowance for doubtful trade receivables:
Property and equipment, net: The following tables summarize the carrying amounts and related accumulated depreciation for property and equipment as of May 31, 2021 and November 30, 2020:
Shown below are countries where 10% or more of the Company’s property and equipment, net are located:
Goodwill: The following table summarizes the changes in the Company’s goodwill for the period ended May 31, 2021:
Intangible assets, net: The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of May 31, 2021 and November 30, 2020:
Estimated future amortization expense of the Company’s intangible assets is as follows:
Accumulated other comprehensive income (loss): The components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes, were as follows:
Refer to Note 6 for the location of gains and losses on cash flow hedges reclassified from other comprehensive income (loss) to the consolidated statements of operations. Reclassifications of amortization of actuarial (gains) losses of defined benefits plans is recorded in “Other expense (income), net” in the consolidated statement of operations. Restructuring: The following table presents the activity related to liabilities for restructuring charges of previous acquisitions for the three and six months ended May 31, 2021 and 2020:
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DERIVATIVE INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS: In the ordinary course of business, the Company is exposed to foreign currency risk and credit risk. The Company enters into transactions, and owns monetary assets and liabilities, that are denominated in currencies other than the legal entity’s functional currency. The Company may enter into forward contracts, option contracts, or other derivative instruments to offset a portion of the risk on expected future cash flows, earnings, net investments in certain non-U.S. legal entities and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the prohibitive economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a portion of the financial impact resulting from movements in foreign currency exchange or interest rates. Generally, the Company does not use derivative instruments to cover equity risk and credit risk. The Company’s hedging program is not used for trading or speculative purposes. All derivatives are recognized on the balance sheet at their fair value. Changes in the fair value of derivatives are recorded in the consolidated statements of operations, or as a component of AOCI in the consolidated balance sheets, as discussed below. Cash Flow Hedges To protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s legal entities with functional currencies that are not U.S. dollars may hedge a portion of forecasted revenue or costs not denominated in the entities’ functional currencies. These instruments mature at various dates through May 2023. Gains and losses on cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of “Revenue” in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of costs are recognized as a component of “Cost of revenue” or “Selling, general and administrative expenses” in the same period as the related costs are recognized. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified into earnings in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are recorded in earnings unless they are re-designated as hedges of other transactions. Non-Designated Derivatives The Company uses short-term forward contracts to offset the foreign exchange risk of assets and liabilities denominated in currencies other than the functional currency of the respective entities. These contracts, which are not designated as hedging instruments, mature or settle within twelve months. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the financial statement line item to which the derivative relates. Fair Values of Derivative Instruments in the Consolidated Balance Sheets The fair values of the Company’s derivative instruments are disclosed in Note 7 and summarized in the table below:
Volume of activity The notional amounts of foreign exchange forward contracts represent the gross amounts of foreign currency, including, principally, the Philippine Peso, the Indian Rupee, the Euro, the British Pound, the Canadian Dollar and the Japanese Yen, that will be bought or sold at maturity. The notional amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss. The Company’s exposure to credit loss and market risk will vary over time as currency rates change. The Effect of Derivative Instruments on AOCI and the Consolidated Statements of Operations The following table shows the gains and losses, before taxes, of the Company’s derivative instruments designated as cash flow hedges and not designated as hedging instruments in other comprehensive income (“OCI”), and the consolidated statements of operations for the periods presented:
(1) The gains and losses largely offset the currency gains and losses that resulted from changes in the assets and liabilities denominated in nonfunctional currencies. There were no material gain or loss amounts excluded from the assessment of effectiveness. Existing net gains in AOCI that are expected to be reclassified into earnings in the normal course of business within the next twelve months are $28,260. Offsetting of Derivatives In the consolidated balance sheets, the Company does not offset derivative assets against liabilities in master netting arrangements. Credit exposure for derivative financial instruments is limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed the Company’s obligations to the counterparties. The Company manages the potential risk of credit losses through careful evaluation of counterparty credit standing and selection of counterparties from a limited group of financial institutions.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS: The Company’s fair value measurements are classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis:
The Company’s cash equivalents consist primarily of highly liquid investments in money market funds and term deposits with maturity periods of three months or less. The carrying values of cash equivalents approximate fair value since they are near their maturity. Investment in foreign government bond classified as available-for-sale debt security is recorded at fair value based on quoted market prices. The fair values of forward exchange contracts are measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. Fair values of long-term foreign currency exchange contracts are measured using valuations based upon quoted prices for similar assets and liabilities in active markets and are valued by reference to similar financial instruments, adjusted for terms specific to the contracts. The effect of nonperformance risk on the fair value of derivative instruments was not material as of May 31, 2021 and November 30, 2020. The carrying values of term deposits with maturities less than one year, accounts receivable and accounts payable approximate fair value due to their short maturities and interest rates that are variable in nature. The carrying values of the outstanding balance on the Term Loan under the Company’s Credit Facility and the outstanding balance on the Securitization Facility approximate their fair values since they bear interest rates that are similar to existing market rates. During the three and six months ended May 31, 2021 and 2020, there were no transfers between the fair value measurement category levels.
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BORROWINGS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BORROWINGS | BORROWINGS: Borrowings consist of the following:
Credit Facility On October 16, 2020, Concentrix entered into a senior secured credit facility, which provides for the extension of revolving loans of up to $600,000 (the “Revolver”) and term loan borrowings of up to $900,000 (the “Term Loan” and, together with the Revolver, the “Credit Facility”). On November 30, 2020, in connection with the spin-off, the Company incurred $900,000 of initial Term Loan borrowings under the Credit Facility. Substantially all of the proceeds from such indebtedness, net of debt issuance costs, were transferred to SYNNEX on November 30, 2020 to eliminate debt owed by Concentrix to SYNNEX and in exchange for the contribution of certain Concentrix trademarks from SYNNEX to Concentrix. The Credit Facility matures on November 30, 2025. Beginning May 31, 2021, the outstanding principal amount of the Term Loan is payable in quarterly installments of $11,250 with the unpaid balance due in full on the maturity date. Concentrix may prepay the loans under the Credit Facility at any time without penalty, other than breakage fees. During the three and six months ended May 31, 2021, the Company paid $150,000 and $200,000 of the principal balance on the Term Loan, respectively. Concentrix may request, subject to obtaining commitments from any participating lenders and certain other conditions, incremental commitments to increase the amount of the Revolver or the Term Loan available under the Credit Facility in an aggregate principal amount equal to $450,000, plus an additional amount, so long as after giving effect to the incurrence of such additional amount, the Company’s pro forma first lien leverage ratio (as defined in the Credit Facility) would not exceed 3.00 to 1.00. Obligations under the Credit Facility are secured by substantially all of the assets of Concentrix and certain of its U.S. subsidiaries and are guaranteed by certain of its U.S. subsidiaries. Borrowings under the Revolver and the Term Loan bear interest, in the case of LIBOR rate loans, at a per annum rate equal to the applicable LIBOR rate (but not less than 0.25%), plus an applicable margin, which ranges from 1.25% to 2.25%, based on Concentrix’ consolidated leverage ratio. Borrowings under the Credit Facility that are not LIBOR rate loans bear interest at a per annum rate equal to (i) the greatest of (a) the Federal Funds Rate in effect on such day plus 1/2 of 1.0%, (b) the rate of interest last publicly announced by Bank of America as its “prime rate” and (c) the LIBOR rate plus 1.0%, plus (ii) an applicable margin, which ranges from 0.25% to 1.25%, based on Concentrix’ consolidated leverage ratio. Commitments under the Revolver are subject to a commitment fee on the unused portion of the Revolver, which fee ranges from 25 to 45 basis points, based on Concentrix’ consolidated leverage ratio. The Credit Facility contains various loan covenants that restrict the ability of Concentrix and its subsidiaries to take certain actions, including, incurrence of indebtedness, creation of liens, mergers or consolidations, dispositions of assets, repurchase or redemption of capital stock, making certain investments, entering into certain transactions with affiliates or changing the nature of their business. In addition, the Credit Facility contains financial covenants that require Concentrix to maintain at the end of each fiscal quarter, (i) a consolidated leverage ratio (as defined in the Credit Facility) not to exceed 3.75 to 1.0 and (ii) a consolidated interest coverage ratio (as defined in the Credit Facility) equal to or greater than 3.00 to 1.0. The Credit Facility also contains various customary events of default, including payment defaults, defaults under certain other indebtedness, and a change of control of Concentrix. At May 31, 2021 and November 30, 2020, no amounts were outstanding under the Revolver. Securitization Facility On October 30, 2020, Concentrix entered into a $350,000 accounts receivable securitization facility (the “Securitization Facility”) pursuant to certain agreements, including a Receivables Financing Agreement and a Receivables Purchase Agreement. On November 30, 2020, in connection with the spin-off, the Company incurred $250,000 of borrowings under the Securitization Facility. Substantially all of the proceeds from such indebtedness were transferred to SYNNEX on November 30, 2020 to eliminate debt owed by Concentrix to SYNNEX and in exchange for the contribution of certain Concentrix trademarks from SYNNEX to Concentrix. Under the Securitization Facility, Concentrix and certain of its subsidiaries (the “Originators”) sell or otherwise transfer all of their accounts receivable to a special purpose bankruptcy-remote subsidiary of Concentrix (the “Borrower”) that grants a security interest in the receivables to the lenders in exchange for available borrowings of up to $350,000. The amount received under the Securitization Facility is recorded as debt on the Company’s consolidated balance sheets. Borrowing availability under the Securitization Facility may be limited by our accounts receivables balances, changes in the credit ratings of the clients comprising the receivables, client concentration levels in the receivables, and certain characteristics of the accounts receivable being transferred (including factors tracking performance of the accounts receivable over time). In May 2021, the Company entered into an amendment of the Securitization Facility to remove CIS as an Originator. The Securitization Facility has a termination date of October 28, 2022. Borrowings under the Securitization Facility bear interest with respect to loans that are funded through the issuance of commercial paper at the applicable commercial paper rate plus a spread of 1.05% and, otherwise, at a per annum rate equal to the applicable LIBOR rate plus a spread of 1.15%. Concentrix is also obligated to pay a monthly undrawn fee that ranges from 30 to 37.5 basis points based on the portion of the Securitization Facility that is undrawn. The Securitization Facility contains various affirmative and negative covenants, including a consolidated leverage ratio covenant that is consistent with the Credit Facility and customary events of default, including payment defaults, defaults under certain other indebtedness, a change in control of Concentrix, and certain events negatively affecting the overall credit quality of the transferred accounts receivable. The Borrower’s sole business consists of the purchase or acceptance through capital contributions of the receivables and related security from the Originators and the subsequent retransfer of or granting of a security interest in such receivables and related security to the administrative agent under the Securitization Facility for the benefit of the lenders. The Borrower is a separate legal entity with its own separate creditors who will be entitled, upon its liquidation, to be satisfied out of the Borrower’s assets prior to any assets or value in the Borrower becoming available to the Borrower’s equity holders, and the assets of the Borrower are not available to pay creditors of Concentrix and its subsidiaries. Covenant compliance As of May 31, 2021, Concentrix was in compliance with all covenants for the above arrangements.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE: Basic and diluted earnings per share (“EPS”) are computed using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating securities, according to dividends declared and participation rights in undistributed earnings. The Company’s restricted stock awards are considered participating securities because they are legally issued at the grant date and holders have a non-forfeitable right to receive dividends. Basic EPS is generally computed by dividing net income attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share is generally computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of restricted stock units and stock options are reflected in diluted net income per share by applying the treasury stock method. There were no Concentrix equity awards outstanding prior to the spin-off, thus the computation of basic and diluted earnings per common share for all prior periods disclosed is calculated using the shares issued in connection with the spin-off of 51.6 million shares.
(1)Restricted stock awards granted to employees by the Company are considered participating securities.
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE: Disaggregated revenue In the following table, the Company’s revenue is disaggregated by primary industry verticals:
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TRANSACTIONS WITH FORMER PARENT |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TRANSACTIONS WITH FORMER PARENT | TRANSACTIONS WITH FORMER PARENT: The Company provides certain services related to its core business to SYNNEX, its former parent. Revenue from customer experience services to former parent is included within revenue in the statements of operations. The cost associated with such services is reported as cost of revenue in the statements of operations. The Company purchases certain products from SYNNEX and, through November 30, 2020, recorded compensation expense for share-based awards granted by SYNNEX to Concentrix employees. Prior to November 30, 2020, the Company received allocations of corporate expenses by way of a monthly management fee and received financing for acquisition and operations under the terms of intra-SYNNEX group borrowing arrangements. Prior to December 1, 2020, the Company consisted of the CX business of SYNNEX and thus, transactions with SYNNEX were considered related party transactions. On December 1, 2020, in connection with the spin-off, the Company became an independent publicly-traded company. The following table presents the Company’s related party transactions with SYNNEX for the three and six months ended May 31, 2020:
As of November 30, 2020, the payable to former parent and its non-Concentrix subsidiaries was primarily trade in nature. Prior to the spin-off, SYNNEX had issued guarantees to certain of the Company’s clients to guarantee the performance obligations of the Company’s legal entities. These SYNNEX guarantees were released or replaced by Concentrix guarantees on or prior to the spin-off. In connection with the spin-off, on November 30, 2020, the Company entered into a separation and distribution agreement, an employee matters agreement, a tax matters agreement and a commercial agreement with SYNNEX to set forth the principal actions to be taken in connection with the spin-off and define the Company’s ongoing relationship with SYNNEX after the spin-off.
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PENSION AND EMPLOYEE BENEFITS PLANS |
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Retirement Benefits [Abstract] | |
PENSION AND EMPLOYEE BENEFITS PLANS | PENSION AND EMPLOYEE BENEFITS PLANS: The Company has a 401(k) plan in the United States under which eligible employees may contribute up to the maximum amount as provided by law. Employees become eligible to participate in the 401(k) plan on the first day of the month after their employment date. The Company may make discretionary contributions under the plan. Employees in most of the Company’s non-U.S. legal entities are covered by government mandated defined contribution plans. During the three and six months ended May 31, 2021, the Company contributed $18,967 and $39,141, respectively, to defined contribution plans. During the three and six months ended May 31, 2020, the Company contributed $14,962 and $30,438, respectively, to defined contribution plans. Defined Benefit Plans The Company has defined benefit pension or retirement plans for eligible employees in certain non-U.S. legal entities. Benefits under these plans are primarily based on years of service and compensation during the years immediately preceding retirement or termination of participation in the plans. In addition, the Company has a frozen defined benefit pension plan, which includes both a qualified and non-qualified portion, for all eligible employees in the U.S. (“the cash balance plan”) and unfunded defined benefit plans for certain eligible employees in the Philippines, Malaysia and France. The pension benefit formula for the cash balance plan is determined by a combination of compensation, age-based credits and annual guaranteed interest credits. The qualified portion of the cash balance plan has been funded through contributions made to a trust fund. The plan assumptions are evaluated annually and are updated as deemed necessary. Net benefit costs related to defined benefit plans were $3,372 and $6,683, during the three and six months ended May 31, 2021, respectively. Net benefit costs related to defined benefit plans were $2,665 and $5,941, during the three and six months ended May 31, 2020, respectively. On an aggregate basis, the plans were underfunded by $127,689 and $134,399 at May 31, 2021 and November 30, 2020, respectively.
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INCOME TAXES |
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May 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: Income taxes consist of current and deferred tax expense resulting from income earned in domestic and international jurisdictions. For the three and six months ended May 31, 2020, although the Company was included in the consolidated tax returns of SYNNEX in certain jurisdictions, the Company’s tax provision was recorded as if Concentrix had filed its taxes on a stand-alone basis. As a result, Concentrix calculated a hypothetical tax as part of the SYNNEX consolidated group, which resulted in an expense adjustment to increase the income tax provision by $4,298 and $6,051, respectively, for the three and six months ended May 31, 2020. The offset to the hypothetical tax expense was reflected in parent company investment, a component of equity in the Company’s consolidated balance sheet prior to the spin-off. The effective tax rates for the three and six months ended May 31, 2021 and 2020 were impacted by the geographic mix of worldwide income and certain discrete items, which included an additional expense of $9,247 in the second quarter of 2021 related to the change in our indefinite reinvestment assertion for CIS. The liability for unrecognized tax benefits was $63,054 and $62,315 at May 31, 2021 and November 30, 2020, respectively, and is included in other long-term liabilities in the consolidated balance sheets. As of May 31, 2021 and November 30, 2020, the total amount of unrecognized tax benefits that would affect income tax expense if recognized in the consolidated financial statements was $55,561 and $54,910, respectively. This amount includes net interest and penalties of $14,064 and $14,402 for the respective periods. It is reasonably possible that the total amount of unrecognized tax benefits will decrease between approximately $11,000 and $28,000 in the next twelve months; however, actual developments in this area could differ from those currently expected. |
LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES: The Company leases certain of its facilities and equipment under operating lease agreements, which expire in various periods through 2035. The Company’s finance leases are not material. The following table presents the various components of lease costs:
The following table presents a maturity analysis of expected undiscounted cash flows for operating leases on an annual basis for the next five years and thereafter as of May 31, 2021:
*Imputed interest represents the difference between undiscounted cash flows and discounted cash flows. The following amounts were recorded in the consolidated balance sheets related to the Company’s operating leases:
The following table presents supplemental cash flow information related to the Company’s operating leases. Cash payments related to variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below:
The weighted-average remaining lease term and discount rate as of May 31, 2021 and November 30, 2020 were as follows:
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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May 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: From time to time, the Company receives notices from third parties, including customers and suppliers, seeking indemnification, payment of money or other actions in connection with claims made against them. Also, from time to time, the Company has been involved in various bankruptcy preference actions where the Company was a supplier to the companies now in bankruptcy. In addition, the Company is subject to various other claims, both asserted and unasserted, that arise in the ordinary course of business. The Company evaluates these claims and records the related liabilities. It is possible that the ultimate liabilities could differ from the amounts recorded. Under the separation and distribution agreement with SYNNEX, the Company agreed to indemnify SYNNEX, each of its subsidiaries and each of their respective directors, officers and employees from and against all liabilities allocated to Concentrix under the separation and distribution agreement, which are generally those liabilities that relate to the CX business and the Company’s business activities, whether incurred prior to or after the spin-off. Under the tax matters agreement with SYNNEX, if the spin-off fails to qualify for tax-free treatment, the Company is generally required to indemnify SYNNEX for any taxes resulting from the spin-off (and related costs and other damages) to the extent such amounts result from (1) an acquisition of all or a portion of the Company’s equity securities or assets by any means, (2) any action or failure to act by the Company after the distribution affecting the voting rights of the Company’s stock, (3) other actions or failures to act by the Company, or (4) certain breaches of the Company’s agreements and representations in the tax matters agreement. The Company’s indemnification obligations to SYNNEX and its subsidiaries, officers, directors and employees are not limited by any maximum amount. The Company does not believe that the above commitments and contingencies will have a material adverse effect on the Company’s results of operations, financial position or cash flows.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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May 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying interim unaudited consolidated financial statements have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). The amounts as of November 30, 2020 have been derived from the Company’s annual audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2020. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial position of the Company and its results of operations and cash flows as of and for the periods presented. These interim consolidated financial statements should be read in conjunction with the annual audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 30, 2020. Prior to the spin-off on December 1, 2020 Prior to the spin-off, the CX business was held entirely within certain wholly-owned subsidiaries of SYNNEX dedicated to the CX business. As the separate legal entities that made up the CX business were not historically held by a single legal entity, the financial statements of the Company were prepared in connection with the expected separation and were derived from the SYNNEX consolidated financial statements and accounting records as if the Company had been operated on a stand-alone basis during the periods presented. Accordingly, for periods prior to December 1, 2020, the Company’s financial statements are presented on a combined basis, and for the periods subsequent to December 1, 2020, they are presented on a consolidated basis (all periods hereinafter are referred to as “consolidated financial statements”). All direct revenue and expenses attributable to the CX business, including certain allocations of former parent costs and expenses, were separately maintained in a separate ledger in the legal entities that made up the CX business. As the separate legal entities that made up the CX business were not historically held by a single legal entity, former parent company investment was shown in lieu of stockholders’ equity in the prior periods. All significant intercompany balances and transactions between the legal entities that comprised the CX business were eliminated. Management of the Company and the former parent considered allocations of former parent costs to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, have reflected the expense the Company would have incurred as a stand-alone company for those periods presented. Actual costs that may have been incurred if the Company had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees and other strategic decisions. Prior to the spin-off, certain Concentrix legal entities in the United States jointly and severally guaranteed certain of SYNNEX’ borrowing arrangements and substantially all of the assets of these Concentrix legal entities secured SYNNEX’ obligations under the borrowing arrangements. Historically, Concentrix received or provided funding for acquisitions or ongoing operations as part of SYNNEX’ centralized treasury program. Accordingly, only cash amounts specifically recorded in the separate Concentrix ledger were reflected in the balance sheets. The Company reflected transfers of the cash from the former parent’s cash management system as loans or other accounts payable to the former parent or a reduction of accounts or loans receivable in the balance sheets based on the purpose for which the cash was provided by the former parent. Similarly, cash transfers to the former parent were reflected as reductions of loans or other accounts payable to the former parent or as loans receivable from the former parent. The cash payments and receipts were recorded in the statements of cash flows as operating or financing activities based on the nature of the transactions for which the funds were transferred between the Company and the former parent. Prior to the spin-off, operations of Concentrix were included in the consolidated U.S. federal, and certain state and local income tax returns filed by SYNNEX, where applicable. Concentrix also filed certain separate state, local and foreign tax returns. Income tax expense and other income tax related information contained in the financial statements prior to the spin-off were presented on a separate return basis, which required the Company to estimate tax expense as if the Company filed a separate return apart from SYNNEX. The income taxes of Concentrix as presented in the financial statements for these periods may not be indicative of the income taxes that Concentrix has incurred or will incur following the spin-off.
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Reclassifications | Reclassifications Certain amounts in the consolidated financial statements related to the prior period have been reclassified to conform to the current period’s presentation.
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Risks and uncertainties related to the COVID-19 pandemic | Risks and uncertainties related to the COVID-19 pandemic In December 2019, there was an outbreak of a new strain of coronavirus (“COVID-19”), which was declared a pandemic by the World Health Organization in March 2020. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains and labor force participation, and created significant volatility and disruption of financial markets. The Company successfully transitioned a significant portion of its workforce to a remote working environment throughout the second quarter of 2020 and implemented a number of safety and social distancing measures in our sites to protect the health and safety of employees. During the six months ended May 31, 2021, almost all of the Company’s workforce was productive. The Company is unable to predict how long the pandemic conditions will persist in regions in which the Company operates, if or when countries or localities may experience an increase in COVID-19 cases, what additional measures may be introduced by governments or the Company’s clients in response to the pandemic generally or to an increase in COVID-19 cases in a particular country or locality, and the effect of any such additional measures on the Company’s business. As a result, many of the estimates and assumptions used in preparation of these consolidated financial statements required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve with respect to the pandemic and the global recovery from the pandemic, the Company’s estimates may materially change in future periods.
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Concentration of credit risk | Concentration of credit risk For the three and six months ended May 31, 2021, one client accounted for 11.2% and 11.5% of the Company’s consolidated revenue, respectively. For the three and six months ended May 31, 2020, one client accounted for 10.8% and 10.3% of the Company’s consolidated revenue, respectively. As of May 31, 2021 and November 30, 2020, one client comprised 14.0% and 16.2%, respectively, of the Company’s total accounts receivable balance.
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Recently adopted accounting pronouncements and Recently issued accounting pronouncements | Recently adopted accounting pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued a new credit loss standard that replaces the current incurred loss impairment model with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. This standard became effective for the Company's fiscal year beginning December 1, 2020. The adoption did not have a material impact on the consolidated financial statements. Recently issued accounting pronouncements In March 2020, the FASB issued optional guidance for a limited time to ease the potential burden in accounting for or recognizing the effects of reference rate reform, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”) on financial reporting. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are elective and are effective upon issuance for all entities through December 31, 2022. The Company is currently evaluating the impact of the new guidance. In December 2019, the FASB issued new guidance that simplifies the accounting for income taxes. The guidance is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those reporting periods. Certain amendments should be applied prospectively, while other amendments should be applied retrospectively to all periods presented. The Company is currently evaluating the impact of the new guidance. In August 2018, the FASB issued new guidance to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The amendment requires the Company to disclose the weighted-average interest crediting rates used in cash balance pension plans. It also requires the Company to disclose the reasons for significant changes in the benefit obligation or plan assets including significant gains and losses affecting the benefit obligation for the period. This standard is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements.
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ASSETS HELD FOR SALE (Tables) |
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May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Asset and Liability Reclassification | The following is a summary of the major categories of assets and liabilities that were reclassified to held for sale:
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SHARE-BASED COMPENSATION (Tables) |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation Expense | The Company recorded share-based compensation expense in the consolidated statements of operations for the three and six months ended May 31, 2021 and 2020 as follows:
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BALANCE SHEET COMPONENTS (Tables) |
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May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows:
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Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows:
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Schedule of Accounts Receivable | Accounts receivable, net is comprised of the following:
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Schedule of Allowance for Doubtful Trade Receivables | Presented below is a progression of the allowance for doubtful trade receivables:
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Property, Plant and Equipment | The following tables summarize the carrying amounts and related accumulated depreciation for property and equipment as of May 31, 2021 and November 30, 2020:
Shown below are countries where 10% or more of the Company’s property and equipment, net are located:
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Schedule of Goodwill | The following table summarizes the changes in the Company’s goodwill for the period ended May 31, 2021:
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Schedule of Intangible Assets | The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of May 31, 2021 and November 30, 2020:
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Schedule of Intangible Assets, Future Amortization Expense | Estimated future amortization expense of the Company’s intangible assets is as follows:
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Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes, were as follows:
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Liability for Restructuring Charges related to Acquisition | The following table presents the activity related to liabilities for restructuring charges of previous acquisitions for the three and six months ended May 31, 2021 and 2020:
|
DERIVATIVE INSTRUMENTS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of the Company’s derivative instruments are disclosed in Note 7 and summarized in the table below:
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Derivative Instruments, Gain (Loss) | The following table shows the gains and losses, before taxes, of the Company’s derivative instruments designated as cash flow hedges and not designated as hedging instruments in other comprehensive income (“OCI”), and the consolidated statements of operations for the periods presented:
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FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis:
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BORROWINGS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Borrowings consist of the following:
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EARNINGS PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share |
(1)Restricted stock awards granted to employees by the Company are considered participating securities.
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REVENUE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | In the following table, the Company’s revenue is disaggregated by primary industry verticals:
|
TRANSACTIONS WITH FORMER PARENT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table presents the Company’s related party transactions with SYNNEX for the three and six months ended May 31, 2020:
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LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost | The following table presents the various components of lease costs:
The weighted-average remaining lease term and discount rate as of May 31, 2021 and November 30, 2020 were as follows:
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Operating Lease Liability Maturity Schedule | The following table presents a maturity analysis of expected undiscounted cash flows for operating leases on an annual basis for the next five years and thereafter as of May 31, 2021:
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Schedule Of Amounts Recorded In Consolidated Balance Sheet Related To Operating Leases | The following amounts were recorded in the consolidated balance sheets related to the Company’s operating leases:
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Schedule Of Supplemental Cash Flow Information Related To Operating Leases | The following table presents supplemental cash flow information related to the Company’s operating leases. Cash payments related to variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below:
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BACKGROUND AND BASIS OF PRESENTATION (Details) |
Dec. 01, 2020 |
May 31, 2021
market
|
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Primary industry verticals | 5 | |
Share ratio, received from distribution | 1 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Customer Concentration Risk - One Client |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
Nov. 30, 2020 |
|
Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11.20% | 10.80% | 11.50% | 10.30% | |
Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 14.00% | 16.20% |
ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands |
May 31, 2021 |
Nov. 30, 2020 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale | $ 83,010 | $ 0 |
Total liabilities held for sale | 30,353 | $ 0 |
CIS | Held for sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 6,657 | |
Other current assets | 4,066 | |
Property and equipment, net | 37,454 | |
Goodwill | 14,690 | |
Intangible assets, net | 3,447 | |
Other assets | 16,696 | |
Total assets held for sale | 83,010 | |
Accounts payable | 838 | |
Accrued compensation and benefits | 5,008 | |
Other accrued liabilities | 3,043 | |
Deferred tax liabilities | 13,733 | |
Other long-term liabilities | 7,731 | |
Total liabilities held for sale | $ 30,353 |
SHARE-BASED COMPENSATION - Narrative (Details) - shares |
Jan. 20, 2021 |
Dec. 01, 2020 |
Nov. 30, 2020 |
---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for issuance (in shares) | 4,000,000 | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock authorized for issuance (in shares) | 1,000,000 | ||
Restricted Stock Awards and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued (in shares) | 827,000 | ||
Stock granted (in shares) | 431,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued (in shares) | 684,000 | ||
Stock granted (in shares) | 26,000 |
SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
|
Share-based Payment Arrangement [Abstract] | ||||
Total share-based compensation | $ 9,283 | $ 3,840 | $ 16,401 | $ 8,102 |
Tax benefit recorded in the provision for income taxes | (2,320) | (960) | (4,100) | (2,026) |
Effect on net income | $ 6,963 | $ 2,880 | $ 12,301 | $ 6,077 |
BALANCE SHEET COMPONENTS - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
May 31, 2021 |
Nov. 30, 2020 |
May 31, 2020 |
Nov. 30, 2019 |
---|---|---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 131,249 | $ 152,656 | ||
Restricted cash included in other current assets | 1,232 | 3,695 | ||
Cash, cash equivalents and restricted cash | $ 132,481 | $ 156,351 | $ 98,217 | $ 83,514 |
BALANCE SHEET COMPONENTS - Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
May 31, 2021 |
Feb. 28, 2021 |
Nov. 30, 2020 |
May 31, 2020 |
Feb. 29, 2020 |
Nov. 30, 2019 |
---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Less: Allowance for doubtful accounts | $ (5,513) | $ (6,239) | $ (8,963) | $ (10,873) | $ (6,953) | $ (6,055) |
Accounts receivable, net | 1,089,387 | 1,081,481 | ||||
Billed accounts receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, gross | 645,785 | 644,789 | ||||
Unbilled accounts receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable, gross | $ 449,115 | $ 445,655 |
BALANCE SHEET COMPONENTS - Allowance for Doubtful Trade Receivables (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 6,239 | $ 6,953 | $ 8,963 | $ 6,055 |
Net additions (reductions) | 422 | 4,617 | (2,132) | 6,118 |
Write-offs and reclassifications | (1,148) | (697) | (1,318) | (1,300) |
Ending Balance | $ 5,513 | $ 10,873 | $ 5,513 | $ 10,873 |
BALANCE SHEET COMPONENTS - Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
May 31, 2021
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 1,836,050 |
Acquisition | 3,502 |
Assets held for sale | (14,690) |
Foreign exchange translation | 13,038 |
Goodwill, Ending Balance | $ 1,837,900 |
BALANCE SHEET COMPONENTS - Intangible Assets, Net (Details) - USD ($) $ in Thousands |
May 31, 2021 |
Nov. 30, 2020 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | $ 1,397,135 | $ 1,411,017 |
Accumulated amortization | (660,258) | (612,058) |
Total | 736,877 | 798,959 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 1,379,090 | 1,389,341 |
Accumulated amortization | (645,488) | (595,024) |
Total | 733,602 | 794,317 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 11,031 | 14,830 |
Accumulated amortization | (8,386) | (11,045) |
Total | 2,645 | 3,785 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amounts | 7,014 | 6,846 |
Accumulated amortization | (6,384) | (5,989) |
Total | $ 630 | $ 857 |
BALANCE SHEET COMPONENTS - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands |
May 31, 2021 |
Nov. 30, 2020 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
2021 | $ 65,905 | |
2022 | 118,412 | |
2023 | 103,868 | |
2024 | 85,947 | |
2025 | 75,793 | |
Thereafter | 286,952 | |
Total | $ 736,877 | $ 798,959 |
BALANCE SHEET COMPONENTS - Restructuring Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
|
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 15,806 | $ 2,874 | $ 17,810 | $ 16,992 |
Additional (release of) accrual during the period | (410) | 11,092 | (410) | (206) |
Cash payments | (1,202) | (2,892) | (3,206) | (5,712) |
Ending balance | 14,194 | 11,074 | 14,194 | 11,074 |
Severance and benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | 1,753 | 0 | 2,828 |
Additional (release of) accrual during the period | 0 | (757) | 0 | (321) |
Cash payments | 0 | (470) | 0 | (1,981) |
Ending balance | 0 | 526 | 0 | 526 |
Facility and exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 15,806 | 1,121 | 17,810 | 14,164 |
Additional (release of) accrual during the period | (410) | 11,849 | (410) | 115 |
Cash payments | (1,202) | (2,422) | (3,206) | (3,731) |
Ending balance | $ 14,194 | $ 10,548 | $ 14,194 | $ 10,548 |
DERIVATIVE INSTRUMENTS - Effect of Derivative Instruments on AOCI and Statements of Operations (Details) - Foreign Exchange Forward - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
|
Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Gains (losses) recognized in OCI | $ 23,718 | $ 3,381 | $ 14,393 | $ 1,031 |
Gains (losses) reclassified from AOCI into income | 9,873 | 4,585 | 22,066 | 11,210 |
Cost of revenue for services | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Gains (losses) reclassified from AOCI into income | 7,127 | 3,149 | 15,962 | 7,755 |
Selling, general and administrative expenses | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Gains (losses) reclassified from AOCI into income | 2,746 | 1,436 | 6,104 | 3,455 |
Other income (expense), net | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized from foreign exchange forward contracts, net | $ 20,808 | $ 2,404 | $ 18,041 | $ 2,180 |
DERIVATIVE INSTRUMENTS - Narrative (Details) $ in Thousands |
6 Months Ended |
---|---|
May 31, 2021
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Existing gains expected to be reclassified | $ 28,260 |
BORROWINGS - Schedule of Debt (Details) - USD ($) $ in Thousands |
May 31, 2021 |
Nov. 30, 2020 |
---|---|---|
Debt Instrument [Line Items] | ||
Borrowings, current | $ 0 | $ 33,750 |
Long-term debt, before unamortized debt discount and issuance costs | 962,500 | 1,116,250 |
Less: unamortized debt discount and issuance costs | (3,342) | (4,888) |
Long-term debt, net | 959,158 | 1,111,362 |
Securitization Facility | ||
Debt Instrument [Line Items] | ||
Credit Facility - Term Loan component | 262,500 | 250,000 |
Senior Secured Credit Facility | Term Loan | ||
Debt Instrument [Line Items] | ||
Credit Facility - current portion of Term Loan component | 0 | 33,750 |
Credit Facility - Term Loan component | $ 700,000 | $ 866,250 |
EARNINGS PER SHARE - Narrative (Details) - shares |
May 31, 2021 |
Dec. 01, 2020 |
Nov. 30, 2020 |
---|---|---|---|
Earnings Per Share [Abstract] | |||
Common stock, shares issued (in shares) | 51,296,000 | 51,600,000 | 0 |
REVENUE (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,369,878 | $ 1,066,363 | $ 2,723,156 | $ 2,254,982 |
Technology and consumer electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 417,277 | 327,997 | 830,095 | 651,910 |
Communications and media | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 254,860 | 210,684 | 503,650 | 474,248 |
Retail, travel and ecommerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 231,966 | 168,380 | 470,967 | 367,294 |
Banking, financial services and insurance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 228,816 | 168,283 | 437,900 | 360,987 |
Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 115,418 | 84,965 | 240,642 | 182,290 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 121,541 | $ 106,053 | $ 239,902 | $ 218,254 |
TRANSACTIONS WITH FORMER PARENT (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
|
Related Party Transaction [Line Items] | ||||
Revenue | $ 1,369,878 | $ 1,066,363 | $ 2,723,156 | $ 2,254,982 |
Share-based compensation | $ 9,283 | 3,840 | $ 16,401 | 8,102 |
Former Parent | ||||
Related Party Transaction [Line Items] | ||||
Revenue | 4,652 | 10,098 | ||
Interest expense on borrowings from former parent | 13,496 | 31,859 | ||
Interest income on borrowings made to former parent | 383 | 982 | ||
Corporate allocations | 393 | 787 | ||
Share-based compensation | $ 3,840 | $ 8,102 |
PENSION AND EMPLOYEE BENEFITS PLANS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
Nov. 30, 2020 |
|
Retirement Benefits [Abstract] | |||||
Contributed amount | $ 18,967 | $ 14,962 | $ 39,141 | $ 30,438 | |
Net benefit costs | 3,372 | $ 2,665 | 6,683 | $ 5,941 | |
Plan underfunded amount | $ (127,689) | $ (127,689) | $ (134,399) |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
Nov. 30, 2020 |
|
Income Tax Contingency [Line Items] | |||||
Hypothetical current tax expense recorded for separate return basis presentation | $ 4,298 | $ 0 | $ 6,051 | ||
Additional expense related to indefinite investment assertion reversal | $ 9,247 | ||||
Unrecognized tax benefits | 63,054 | 63,054 | $ 62,315 | ||
Unrecognized tax benefits that would affect income tax expense if recognized | 55,561 | 55,561 | 54,910 | ||
Interest and penalties accrued on unrecognized tax benefits | 14,064 | 14,064 | $ 14,402 | ||
Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Unrecognized tax benefits decrease amount | 11,000 | 11,000 | |||
Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Unrecognized tax benefits decrease amount | $ 28,000 | $ 28,000 |
LEASES - Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
May 31, 2020 |
May 31, 2021 |
May 31, 2020 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 51,122 | $ 49,964 | $ 102,563 | $ 110,202 |
Short-term least cost | 3,819 | 2,986 | 7,527 | 6,267 |
Variable lease cost | 10,014 | 5,383 | 20,134 | 17,887 |
Sublease income | (419) | (88) | (891) | (134) |
Total operating lease cost | $ 64,536 | $ 58,245 | $ 129,333 | $ 134,222 |
LEASES - Operating Lease Liability Maturity (Details) $ in Thousands |
May 31, 2021
USD ($)
|
---|---|
Leases [Abstract] | |
2021 (remaining six months) | $ 97,562 |
2022 | 175,183 |
2023 | 134,738 |
2024 | 96,177 |
2025 | 59,730 |
Thereafter | 43,661 |
Total payments | 607,051 |
Less: imputed interest | 72,133 |
Total present value of lease payments | $ 534,918 |
LEASES - Operating Lease ROU Assets and Liabilities (Details) - USD ($) $ in Thousands |
May 31, 2021 |
Nov. 30, 2020 |
---|---|---|
Leases [Abstract] | ||
Operating lease ROU assets | $ 513,972 | $ 506,368 |
Current operating lease liabilities | 156,554 | 163,052 |
Non-current operating lease liabilities | $ 378,364 | $ 373,644 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
LEASES - Operating Lease Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
May 31, 2021 |
May 31, 2020 |
|
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 107,926 | $ 100,942 |
Non-cash ROU assets obtained in exchange for lease liabilities | $ 76,374 | $ 48,307 |
LEASES - Operating Lease Weighted Average Remaining Lease Term and Discount Rate (Details) |
May 31, 2021 |
Nov. 30, 2020 |
---|---|---|
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 3 years 11 months 26 days | 3 years 11 months 19 days |
Weighted-average discount rate | 5.79% | 6.97% |
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