Company: G
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001398659-25-000059
Chunk: 74

Company: Genpact LTD
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 74
---
 expense, net

 Three months ended March 31,20242025Other operating (income) expense(5,466)(112)Other operating (income) expense, net$(5,466)$(112)

20. Interest income (expense), net

Three months ended March 31,20242025Interest income$6,392 $6,255 Interest expense(16,634)(17,701)Interest income (expense), net$(10,242)$(11,446)

21. Income taxes

The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.The Company’s effective tax rate (“ETR”) was 25.3% for the three months ended March 31, 2025, up from 25.2% for the three months ended March 31, 2024. The change in the Company’s ETR in the three months ended March 31, 2025 was primarily driven by the mix of pre-tax income and the impact of discrete items in the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

22. Commitments and contingencies

 Capital commitments As of December 31, 2024 and March 31, 2025, the Company has committed to spend $25,309 and $24,242, respectively, under agreements to purchase property, plant and equipment. This amount is net of capital advances paid in respect of these purchases.Bank guarantees The Company has outstanding bank guarantees and letters of credit amounting to $10,014 and $9,941 as of December 31, 2024 and March 31, 2025, respectively. Bank guarantees are generally provided to government agencies or for leases. These guarantees may be revoked if the beneficiary suffers any losses or damages through the breach of any of the covenants contained in the agreements governing such guarantees.Other commitmentsCertain units of the Company’s Indian subsidiaries are established as Software Technology Parks of India units or Special Economic Zone (“SEZ”) units under the relevant regulations issued by the Government of India. These units are exempt from customs and other duties on imported and indigenous capital goods, stores and spares. SEZ units are also exempt from the Indian Goods