Company: G
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001398659-25-000109
Chunk: 91

Company: Genpact LTD
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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 include revenue from each of the service types included in the tables above. See Note 18 for additional information.Contract balancesContract assets represent the contract acquisition fees or other upfront fees paid to a customer. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and deducted from revenue. The Company’s assessment did not indicate any significant impairment losses on its contract assets for the periods presented.Contract liabilities include that portion of revenue for which payments have been received in advance from customers. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. Consideration received from customers, if any, relating to such transition activities is also included as part of contract liabilities. The contract liabilities are included within “Accrued expenses and other current liabilities” and “Other liabilities” in the consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled pursuant to the contract with the customer.

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GENPACT LIMITED AND ITS SUBSIDIARIESNotes to the Consolidated Financial Statements(Unaudited)(In thousands, except per share data and share count)

19. Net revenues (Continued)The following table shows the details of the Company’s contract balances: As of December 31, 2024As of September 30, 2025Contract assets (Note a)$48,980 $67,382 Contract liabilities (Note b)Deferred transition revenue$106,769 $115,596 Advance from customers$45,420 $70,910 (a)Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet.(b)Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet.Changes in the Company’s contract asset and liability balances during the three and nine months ended September 30, 2024 and 2025 were a result of normal business activity and not materially impacted by any other factors.The amount of revenue recognized during the three months ended September 30, 2024 and 2025 that was included in the Company's contract liabilities balance at the beginning of each period was $53,189 and $51,149, respectively, and the amount of revenue recognized during the nine months ended September 30, 2024 and 2025 that was included in the Company's contract liabilities balance at the beginning of the period was $98,750 and $94,555,