TEANECK, N.J., May 5, 2021 /PRNewswire/ -- Cognizant
(Nasdaq: CTSH), one of the world's leading professional services
companies, today announced its first quarter 2021 financial
results.
"In the first quarter, we successfully executed our strategy of
embracing digital, investing in international expansion and
repositioning the Cognizant brand. Cloud migration and digital
adoption create a significant opportunity for Cognizant in the
coming years," said Brian Humphries,
Chief Executive Officer. "The ongoing humanitarian crisis,
especially in India, is deeply
concerning. We have made a series of investments to support
India in this time of need and
continue to prioritize the health and safety of our associates
while we serve our clients."
|
|
Q1
2021
|
|
Q1
2020
|
Revenue (in
billions)
|
|
$4.4
|
|
|
$4.2
|
|
GAAP operating
margin
|
|
15.2
|
%
|
|
13.7
|
%
|
Adjusted Operating
Margin1
|
|
15.2
|
%
|
|
15.1
|
%
|
GAAP diluted
EPS
|
|
$0.95
|
|
|
$0.67
|
|
Adjusted Diluted
EPS1
|
|
$0.97
|
|
|
$0.96
|
|
First Quarter 2021 Performance by Business Segment
Financial Services (33.1% of revenues) revenue grew 0.5%
year-over-year, and decreased 1.7% in constant currency, as revenue
growth generated by our digital services in both banking and
insurance was offset by declining non-digital revenue as our
clients continue to optimize the cost of supporting their legacy
systems and operations.
Healthcare (29.3% of revenues) revenue grew 7.9%
year-over-year, or 7.0% in constant currency. Our healthcare
revenue benefited from increased demand for our integrated payer
software solutions and continued strong demand among our life
sciences clients.
Products and Resources (22.7% of revenues) revenue grew
4.6% year-over-year, or 2.4% in constant currency. Revenue among
manufacturing, logistics, energy and utilities clients grew
double-digits for the fourth consecutive quarter while retail,
consumer goods, travel and hospitality clients continued to be
adversely affected by the COVID-19 pandemic.
Communications, Media and Technology (14.9% of revenues)
revenue grew 5.0% year-over-year, or 3.1% in constant currency,
including a significant benefit from recent acquisitions.
Double-digit year-over-year revenue growth among our technology
clients was offset by the impact from our exit of certain
content-related services, which negatively impacted year-over-year
segment growth by 600 basis points. Additionally, clients exposed
to studios and theme parks continued to be adversely affected by
the COVID-19 pandemic.
Return of Capital to Shareholders
During the first quarter, the Company repurchased 3.1 million
shares for $234 million at an average
price of $75.80 under its share
repurchase program. As of March 31,
2021, there was $2.6 billion
remaining under the current share repurchase authorization. In
May 2021, the Company declared a
quarterly cash dividend of $0.24 per
share for shareholders of record on May 20,
2021. This dividend will be payable on May 28, 2021.
"Our first-quarter performance reflects solid revenue growth in
our digital services and consistent execution of our strategy,"
said Jan Siegmund, Chief Financial
Officer, "To support our commercial momentum, we are increasing our
investments in recruiting and talent."
Second Quarter and Full Year 2021 Outlook
The Company provided the following guidance:
- Second quarter revenue is expected to be $4.42-$4.46
billion, or growth of 10.5-11.5% (8.0-9.0% in CC). This
assumes an estimated positive 250 basis points foreign exchange
impact.
- Full year 2021 revenue is expected to be $17.8-$18.1
billion, or growth of 7.0-9.0% (5.5-7.5% in CC). This
assumes an estimated positive 150 basis points foreign exchange
impact.
- Full year 2021 Adjusted Operating Margin2 is
expected to be in the range of 15.2-15.7%
- Full year 2021 Adjusted Diluted EPS2 is expected to
be in the range of $3.90-$4.02
Conference Call
Cognizant will host a conference call on May 5, 2021, at
5:00 p.m. (Eastern) to discuss the
Company's first quarter 2021 results. To listen to the conference
call, please dial (877) 810-9510 (domestic) or +1 (201)
493-6778 (international) and provide the following conference
passcode: "Cognizant Call."
The conference call will also be available live on the Investor
Relations section of the Cognizant website at
http://investors.cognizant.com. An earnings supplement will also be
available on the Cognizant website at the time of the conference
call.
For those who cannot access the live broadcast, a replay will be
available. To listen to the replay, please dial (877) 660-6853
(domestically) or +1 (201) 612-7415 (internationally) and enter
13718361 from two hours after the end of the call until
11:59 p.m. (Eastern) on Wednesday,
May 5, 2021. The replay will also be available at Cognizant's
website www.cognizant.com for 60 days following the call.
_________
|
1 Constant
currency ("CC") revenue growth, Adjusted Operating Margin and
Adjusted Diluted Earnings Per Share ("Adjusted Diluted EPS") are
not measures of financial performance prepared in accordance with
GAAP. See "About Non-GAAP Financial Measures and Performance
Metrics" for more information and, where applicable,
reconciliations to the most directly comparable GAAP financial
measures at the end of this release.
|
2A full
reconciliation of Adjusted Operating Margin and Adjusted Diluted
EPS guidance to the corresponding GAAP measure on a forward-looking
basis cannot be provided without unreasonable efforts, as we are
unable to provide reconciling information with respect to unusual
items. See "About Non-GAAP Financial Measures and Performance
Metrics" for more information and a partial reconciliation at the
end of this release.
|
About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world's leading
professional services companies, transforming clients' business,
operating and technology models for the digital era. Our unique
industry-based, consultative approach helps clients envision, build
and run more innovative and efficient businesses. Headquartered in
the U.S., Cognizant is ranked 194 on the Fortune 500 and is
consistently listed among the most admired companies in the world.
Learn how Cognizant helps clients lead with digital at
www.cognizant.com or follow us @Cognizant.
Forward-Looking Statements
This press release includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
the accuracy of which are necessarily subject to risks,
uncertainties, and assumptions as to future events that may not
prove to be accurate. These statements include, but are not limited
to, express or implied forward-looking statements relating to our
expectations regarding the impact of the COVID-19 pandemic on our
business, opportunities in the marketplace, our cost
structure, investment in and growth of our business, the
effectiveness of our recruiting and talent efforts, the impact of
the 2020 Fit for Growth Plan, the likelihood and potential terms of
any settlement of and exit from our referenced large customer
engagement in the financial services segment, our and our clients'
shift to digital solutions and services and our anticipated
financial performance. These statements are neither promises nor
guarantees, but are subject to a variety of risks and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from those contemplated
in these forward-looking statements. Existing and prospective
investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof. Factors that could cause actual results to
differ materially from those expressed or implied include general
economic conditions, legal, reputational and financial risks
resulting from cyberattacks, the impact of and effectiveness of
business continuity plans during the COVID-19 pandemic, the
competitive marketplace for talent, changes in the regulatory
environment, including with respect to immigration and taxes, and
the other factors discussed in our most recent Annual
Report on Form 10-K and other filings with the Securities and
Exchange Commission. Cognizant undertakes no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events, or otherwise, except as may be
required under applicable securities law.
About Non-GAAP Financial Measures and Performance
Metrics
To supplement our financial results presented in accordance with
GAAP, this press release includes references to the following
measures defined by the Securities and Exchange Commission as
non-GAAP financial measures: Adjusted Income From Operations,
Adjusted Operating Margin, Adjusted Diluted EPS, free cash flow,
net cash and constant currency revenue growth. These non-GAAP
financial measures are not based on any comprehensive set of
accounting rules or principles and should not be considered a
substitute for, or superior to, financial measures calculated in
accordance with GAAP, and may be different from non-GAAP financial
measures used by other companies. In addition, these non-GAAP
financial measures should be read in conjunction with our financial
statements prepared in accordance with GAAP. The reconciliations of
our non-GAAP financial measures to the corresponding GAAP measures
should be carefully evaluated.
Our non-GAAP financial measures, Adjusted Operating Margin,
Adjusted Income From Operations and Adjusted Diluted EPS exclude
unusual items. Additionally, Adjusted Diluted EPS excludes net
non-operating foreign currency exchange gains or losses and the tax
impact of all the applicable adjustments. The income tax impact of
each item is calculated by applying the statutory rate and local
tax regulations in the jurisdiction in which the item was incurred.
Free cash flow is defined as cash flows from operating activities
net of purchases of property and equipment. Net cash is defined as
cash and cash equivalents and short-term investments less
short-term and long-term debt. Constant currency revenue growth is
defined as revenues for a given period restated at the comparative
period's foreign currency exchange rates measured against the
comparative period's reported revenues.
Management believes providing investors with an operating
view consistent with how we manage the Company provides enhanced
transparency into our operating results. For our internal
management reporting and budgeting purposes, we use various GAAP
and non-GAAP financial measures for financial and operational
decision-making, to evaluate period-to-period comparisons, to
determine portions of the compensation for our executive officers
and for making comparisons of our operating results to those of our
competitors. Therefore, it is our belief that the use of non-GAAP
financial measures excluding certain costs provides a meaningful
supplemental measure for investors to evaluate our financial
performance. Accordingly, we believe that the presentation of our
non-GAAP measures, when read in conjunction with our reported GAAP
results, can provide useful supplemental information to our
management and investors regarding financial and business trends
relating to our financial condition and results of
operations.
A limitation of using non-GAAP financial measures versus
financial measures calculated in accordance with GAAP is that
non-GAAP financial measures do not reflect all of the amounts
associated with our operating results as determined in accordance
with GAAP and may exclude costs that are recurring such as our net
non-operating foreign currency exchange gains or losses. In
addition, other companies may calculate non-GAAP financial measures
differently than us, thereby limiting the usefulness of these
non-GAAP financial measures as a comparative tool. We compensate
for these limitations by providing specific information regarding
the GAAP amounts excluded from our non-GAAP financial measures to
allow investors to evaluate such non-GAAP financial
measures.
Bookings are defined as total contract value (or TCV) of new
contracts, including new contract sales as well as renewals and
expansions of existing contracts. Bookings can vary significantly
quarter to quarter depending in part on the timing of the signing
of a small number of large contracts. Our book-to-bill ratio is
defined as bookings for the trailing twelve months divided by
revenue for the same period. Measuring bookings involves the use of
estimates and judgments and there are no independent standards or
requirements governing the calculation of bookings. The extent and
timing of conversion of bookings to revenues may be impacted by,
among other factors, the types of services and solutions sold,
contract duration, the pace of client spending, actual volumes of
services delivered as compared to the volumes anticipated at the
time of sale, and contract modifications, including terminations,
over the lifetime of a contract. The majority of our contracts are
terminable by the client on short notice often without penalty, and
some without notice. We do not update our bookings for material
subsequent terminations or reductions related to bookings
originally recorded in prior year periods or foreign currency
exchange rate fluctuations. Information regarding our bookings is
not comparable to, nor should it be substituted for, an analysis of
our reported revenues. However, management believes that it is a
key indicator of potential future revenues and provides a useful
indicator of the volume of our business over time.
We disclose digital revenue as management believes it
provides additional insights into the Company's business. Measuring
digital revenue requires the use of estimates and judgement, there
are no independent standards or requirements governing the
calculation and our calculation may differ from the calculations
underlying similar such metrics disclosed by other
companies.
Investor Relations
Contact:
|
|
|
|
Media
Contact:
|
Tyler
Scott
|
|
|
|
Jeff
DeMarrais
|
Senior Director,
Investor Relations
|
|
|
|
VP, Corporate
Communications
|
551-220-8246
|
|
|
|
475-223-2298
|
Tyler.Scott@cognizant.com
|
|
|
|
Jeff.DeMarrais@cognizant.com
|
- tables to follow -
COGNIZANT
TECHNOLOGY SOLUTIONS CORPORATION
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
(in
millions, except per share data)
|
Three Months
Ended March 31,
|
|
2021
|
|
2020
|
Revenues
|
$
|
4,401
|
|
|
$
|
4,225
|
|
Operating
expenses:
|
|
|
|
Cost of revenues
(exclusive of depreciation and amortization expense shown
separately below)
|
2,764
|
|
|
2,747
|
|
Selling, general and
administrative expenses
|
827
|
|
|
711
|
|
Restructuring
charges
|
—
|
|
|
55
|
|
Depreciation and
amortization expense
|
141
|
|
|
133
|
|
Income from
operations
|
669
|
|
|
579
|
|
Other income
(expense), net:
|
|
|
|
Interest
income
|
9
|
|
|
41
|
|
Interest
expense
|
(2)
|
|
|
(6)
|
|
Foreign currency
exchange gains (losses), net
|
(9)
|
|
|
(102)
|
|
Other, net
|
(2)
|
|
|
(2)
|
|
Total other income
(expense), net
|
(4)
|
|
|
(69)
|
|
Income before
provision for income taxes
|
665
|
|
|
510
|
|
Provision for income
taxes
|
(160)
|
|
|
(142)
|
|
Income (loss) from
equity method investment
|
—
|
|
|
(1)
|
|
Net income
|
$
|
505
|
|
|
$
|
367
|
|
Basic earnings per
share
|
$
|
0.95
|
|
|
$
|
0.67
|
|
Diluted earnings per
share
|
$
|
0.95
|
|
|
$
|
0.67
|
|
Weighted average
number of common shares outstanding - Basic
|
530
|
|
|
546
|
|
Dilutive effect of
shares issuable under stock-based compensation plans
|
1
|
|
|
—
|
|
Weighted average
number of common shares outstanding - Diluted
|
531
|
|
|
546
|
|
COGNIZANT
TECHNOLOGY SOLUTIONS CORPORATION
|
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
(Unaudited)
|
|
(in millions,
except par values)
|
March
31, 2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,973
|
|
|
$
|
2,680
|
|
Short-term
investments
|
185
|
|
|
44
|
|
Trade accounts
receivable, net
|
3,232
|
|
|
3,087
|
|
Other current
assets
|
1,205
|
|
|
1,040
|
|
Total current
assets
|
6,595
|
|
|
6,851
|
|
Property and
equipment, net
|
1,250
|
|
|
1,251
|
|
Operating lease
assets, net
|
980
|
|
|
1,013
|
|
Goodwill
|
5,219
|
|
|
5,031
|
|
Intangible assets,
net
|
1,110
|
|
|
1,046
|
|
Deferred income tax
assets, net
|
307
|
|
|
445
|
|
Long-term
investments
|
439
|
|
|
440
|
|
Other noncurrent
assets
|
760
|
|
|
846
|
|
Total
assets
|
$
|
16,660
|
|
|
$
|
16,923
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
349
|
|
|
$
|
389
|
|
Deferred
revenue
|
403
|
|
|
383
|
|
Short-term
debt
|
38
|
|
|
38
|
|
Operating lease
liabilities
|
202
|
|
|
211
|
|
Accrued expenses and
other current liabilities
|
2,158
|
|
|
2,519
|
|
Total current
liabilities
|
3,150
|
|
|
3,540
|
|
Deferred revenue,
noncurrent
|
32
|
|
|
36
|
|
Operating lease
liabilities, noncurrent
|
821
|
|
|
846
|
|
Deferred income tax
liabilities, net
|
204
|
|
|
206
|
|
Long-term
debt
|
654
|
|
|
663
|
|
Long-term income
taxes payable
|
428
|
|
|
428
|
|
Other noncurrent
liabilities
|
334
|
|
|
368
|
|
Total
liabilities
|
5,623
|
|
|
6,087
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$0.10 par value, 15 shares authorized, none issued
|
—
|
|
|
—
|
|
Class A common
stock, $0.01 par value, 1,000 shares authorized, 528 and 530 shares
issued and outstanding as of March 31, 2021 and December 31,
2020, respectively
|
5
|
|
|
5
|
|
Additional paid-in
capital
|
44
|
|
|
32
|
|
Retained
earnings
|
10,907
|
|
|
10,689
|
|
Accumulated other
comprehensive income (loss)
|
81
|
|
|
110
|
|
Total stockholders'
equity
|
11,037
|
|
|
10,836
|
|
Total liabilities and
stockholders' equity
|
$
|
16,660
|
|
|
$
|
16,923
|
|
COGNIZANT
TECHNOLOGY SOLUTIONS CORPORATION
|
Reconciliations of
Non-GAAP Financial Measures
|
(Unaudited)
|
|
(dollars in
millions, except per share amounts)
|
Three Months
Ended March 31,
|
|
Guidance
|
|
2021
|
|
2020
|
|
Full Year
2021
|
GAAP income from
operations
|
$
|
669
|
|
|
$
|
579
|
|
|
|
Realignment
charges(a)
|
—
|
|
|
20
|
|
|
|
2020 Fit for Growth
Plan restructuring charges(b)
|
—
|
|
|
35
|
|
|
|
COVID-19
charges(c)
|
—
|
|
|
6
|
|
|
|
Adjusted Income From
Operations
|
$
|
669
|
|
|
$
|
640
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
15.2
|
%
|
|
13.7
|
%
|
|
|
Realignment
charges
|
—
|
|
|
0.5
|
|
|
—
|
2020 Fit for Growth
Plan restructuring charges
|
—
|
|
|
0.8
|
|
|
—
|
COVID-19
charges
|
—
|
|
|
0.1
|
|
|
—
|
Adjusted Operating
Margin
|
15.2
|
%
|
|
15.1
|
%
|
|
15.2% -
15.7%
|
|
|
|
|
|
|
GAAP diluted earnings
per share
|
$
|
0.95
|
|
|
$
|
0.67
|
|
|
|
Effect of above
adjustments to income from operations, pre-tax
|
—
|
|
|
0.11
|
|
|
—
|
Non-operating foreign
currency exchange (gains) losses, pre-tax(d)
|
0.02
|
|
|
0.19
|
|
|
(d)
|
Tax effect of above
adjustments(e)
|
—
|
|
|
(0.01)
|
|
|
(d)
|
Adjusted Diluted
Earnings Per Share
|
$
|
0.97
|
|
|
$
|
0.96
|
|
|
$3.90 -
$4.02
|
|
Notes:
|
(a)
|
As part of the
realignment program, during the three months ended March 31, 2020,
we incurred certain retention costs and professional fees. The
total costs related to the realignment plan are reported in
"Restructuring charges" in our unaudited consolidated statement of
operations.
|
(b)
|
As part of our 2020
Fit for Growth plan, during the three months ended March 31, 2020,
we incurred certain employee separation, employee retention,
facility exit costs and other charges. The total costs related to
the 2020 Fit for Growth Plan are reported in "Restructuring
charges" in our unaudited consolidated statement of
operations.
|
(c)
|
During the three
months ended March 31, 2020, we incurred costs in response to the
COVID-19 pandemic, including a one-time bonus to our employees at
the designation of associate and below in both India and the
Philippines, certain costs to enable our employees to work remotely
and costs to provide medical staff and extra cleaning services for
our facilities. Substantially all of the costs related to the
pandemic are reported in "Cost of revenues" in our unaudited
consolidated statement of operations.
|
(d)
|
Non-operating foreign
currency exchange gains and losses, inclusive of gains and losses
on related foreign exchange forward contracts not designated as
hedging instruments for accounting purposes, are reported in
"Foreign currency exchange gains (losses), net" in our unaudited
consolidated statements of operations. Non-operating foreign
currency exchange gains and losses are subject to high variability
and low visibility and therefore cannot be provided on a
forward-looking basis without unreasonable efforts.
|
(e)
|
Presented below are
the tax impacts of each of our non-GAAP adjustments to pre-tax
income for the three months ended March 31:
|
|
|
(in
millions)
|
2021
|
|
2020
|
Non-GAAP income tax
benefit (expense) related to:
|
|
|
|
Realignment
charges
|
$
|
—
|
|
|
$
|
5
|
|
2020 Fit For Growth
Plan restructuring charges
|
—
|
|
|
9
|
|
COVID-19
charges
|
—
|
|
|
2
|
|
Foreign currency
exchange gains and losses
|
—
|
|
|
(10)
|
|
Reconciliations of
net cash
|
|
(in
millions)
|
|
March 31,
2021
|
|
December 31,
2020
|
Cash and cash
equivalents
|
|
$
|
1,973
|
|
|
$
|
2,680
|
|
Short-term
investments
|
|
185
|
|
|
44
|
|
Less:
|
|
|
|
|
Short-term
debt
|
|
38
|
|
|
38
|
|
Long-term
debt
|
|
654
|
|
|
663
|
|
Net cash
|
|
$
|
1,466
|
|
|
$
|
2,023
|
|
The above tables serve to reconcile the Non-GAAP financial
measures to the most directly comparable GAAP measures. Refer to
the "About Non-GAAP Financial Measures" section of our press
release for further information on the use of these Non-GAAP
measures.
COGNIZANT
TECHNOLOGY SOLUTIONS CORPORATION
|
Revenue by
Business Segment and Geography
|
(Unaudited)
|
|
(dollars in
millions)
|
Three Months Ended
March 31, 2021
|
|
|
|
|
|
Year over
Year
|
|
$
|
|
% of
total
|
|
%
Change
|
|
Constant
Currency %
Change (a)
|
Revenues by
Segment:
|
|
|
|
|
|
|
|
Financial
Services
|
$
|
1,458
|
|
|
33.1
|
%
|
|
0.5
|
%
|
|
(1.7)
|
%
|
Healthcare
|
1,288
|
|
|
29.3
|
%
|
|
7.9
|
%
|
|
7.0
|
%
|
Products and
Resources
|
998
|
|
|
22.7
|
%
|
|
4.6
|
%
|
|
2.4
|
%
|
Communications, Media
and Technology
|
657
|
|
|
14.9
|
%
|
|
5.0
|
%
|
|
3.1
|
%
|
Total
Revenues
|
$
|
4,401
|
|
|
|
|
4.2
|
%
|
|
2.4
|
%
|
Revenues by
Geography:
|
|
|
|
|
|
|
|
North
America
|
$
|
3,283
|
|
|
74.6
|
%
|
|
2.9
|
%
|
|
2.7
|
%
|
United
Kingdom
|
370
|
|
|
8.4
|
%
|
|
9.8
|
%
|
|
2.7
|
%
|
Continental
Europe
|
456
|
|
|
10.4
|
%
|
|
4.3
|
%
|
|
(3.7)
|
%
|
Europe -
Total
|
826
|
|
|
18.8
|
%
|
|
6.7
|
%
|
|
(0.9)
|
%
|
Rest of
World
|
292
|
|
|
6.6
|
%
|
|
11.9
|
%
|
|
8.9
|
%
|
Total
Revenues
|
$
|
4,401
|
|
|
|
|
4.2
|
%
|
|
2.4
|
%
|
|
|
Notes:
|
(a)
|
Constant currency
revenue growth is not a measure of financial performance prepared
in accordance with GAAP. See "About Non-GAAP Financial Measures and
Performance Metrics" for more information.
|
COGNIZANT
TECHNOLOGY SOLUTIONS CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
(in
millions)
|
Three Months
Ended March
31,
|
|
2021
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
505
|
|
|
$
|
367
|
|
Adjustments for
non-cash income and expenses
|
325
|
|
|
316
|
|
Changes in assets and
liabilities
|
(649)
|
|
|
(186)
|
|
Net cash provided by
operating activities
|
181
|
|
|
497
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(88)
|
|
|
(112)
|
|
Net (purchases) of
investments
|
(140)
|
|
|
(74)
|
|
Payments for business
combinations, net of cash acquired
|
(310)
|
|
|
(86)
|
|
Net cash (used in)
investing activities
|
(538)
|
|
|
(272)
|
|
Cash flows from
financing activities:
|
|
|
|
Repurchases of common
stock
|
(240)
|
|
|
(511)
|
|
Repayment of term loan
borrowings and finance lease and earnout obligations
|
(15)
|
|
|
(13)
|
|
Proceeds from
borrowings under the revolving credit facility
|
—
|
|
|
1,740
|
|
Dividends
paid
|
(128)
|
|
|
(121)
|
|
Issuance of common
stock under stock-based compensation plans
|
43
|
|
|
40
|
|
Net cash (used in)
provided by financing activities
|
(340)
|
|
|
1,135
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(10)
|
|
|
(119)
|
|
(Decrease) increase
in cash and cash equivalents
|
(707)
|
|
|
1,241
|
|
Cash and cash
equivalents, beginning of period
|
2,680
|
|
|
2,645
|
|
Cash and cash
equivalents, end of period
|
$
|
1,973
|
|
|
$
|
3,886
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
(in
millions)
|
|
Three Months
Ended
|
Stock Repurchases
under Board of Directors' authorized stock repurchase
program:
|
|
March 31,
2021
|
|
March 31,
2020
|
Number of shares
repurchased
|
|
3.1
|
|
|
8.5
|
|
|
|
|
|
|
Remaining authorized
balance as of March 31, 2021
|
|
$
|
2,581
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Free Cash Flow Non-GAAP Financial Measure
|
|
(in
millions)
|
Three Months
Ended March
31,
|
|
2021
|
|
2020
|
Net cash provided by
operating activities
|
$
|
181
|
|
|
$
|
497
|
|
Purchases of property
and equipment
|
(88)
|
|
|
(112)
|
|
Free cash
flow
|
$
|
93
|
|
|
$
|
385
|
|
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SOURCE Cognizant