Cover and table of contents

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Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

FOR ANNUAL AND TRANSITION REPORTS

PURSUANT TO SECTIONS 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

(Mark One)

☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year endedDecember 31, 2021
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number 0-24429

COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Delaware13-3728359
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)

300 Frank W. Burr Blvd.

Teaneck, New Jersey 07666

(Address of Principal Executive Offices including Zip Code)

Registrant’s telephone number, including area code: (201) 801-0233

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.01 par value per shareCTSHThe Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒ Yes ☐ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer☒Accelerated Filer☐
Non-accelerated Filer☐Smaller Reporting Company☐
Emerging Growth Company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

The aggregate market value of the registrant’s voting shares of common stock held by non-affiliates of the registrant on June 30, 2021, based on $69.26 per share, the last reported sale price on the Nasdaq Global Select Market of the Nasdaq Stock Market LLC on that date, was $36.4 billion.

The number of shares of Class A common stock, $0.01 par value, of the registrant outstanding as of February 11, 2022 was 524,534,828 shares.

DOCUMENTS INCORPORATED BY REFERENCE

The following documents are incorporated by reference into the Annual Report on Form 10-K: Portions of the registrant’s definitive Proxy Statement for its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Report.

TABLE OF CONTENTS

ItemPage
GLOSSARY1
PART I3
1.Business3
1A.Risk Factors12
1B.Unresolved Staff Comments19
2.Properties19
3.Legal Proceedings19
4.Mine Safety Disclosures19
PART II20
5.Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities20
6.[Reserved]21
7.Management's Discussion and Analysis of Financial Condition and Results of Operations22
7A.Quantitative and Qualitative Disclosures About Market Risk37
8.Financial Statements and Supplementary Data38
9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure38
9A.Controls and Procedures38
9B.Other Information39
9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections39
PART III40
10.Directors, Executive Officers and Corporate Governance40
11.Executive Compensation40
12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters40
13.Certain Relationships and Related Transactions, and Director Independence40
14.Principal Accountant Fees and Services40
PART IV41
15.Exhibits, Financial Statements Schedules41
16.Form 10-K Summary43
SIGNATURES44
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULEF-1
GLOSSARY
Defined TermDefinition
10b5-1 PlanTrading plan adopted pursuant to Rule 10b5-1 of the Exchange Act
10th MagnitudePamlico 10th Magnitude Blocker LLC, now known as Cognizant 10th Magnitude Blocker, LLC
2009 Incentive PlanCognizant Technology Solutions Corporation Amended and Restated 2009 Incentive Compensation Plan
2017 Incentive PlanCognizant Technology Solutions Corporation 2017 Incentive Award Plan
Adjusted Diluted EPSAdjusted diluted earnings per share
AIArtificial Intelligence
APAAdvance Pricing Agreement
ASCAccounting Standards Codification
ASRAccelerated Stock Repurchase
ASUAccounting Standards Update
Bright WolfBright Wolf, LLC
CCConstant Currency
Class Action Settlement LossLoss recorded in connection with the filing of a settlement agreement that resolved the consolidated putative securities class action against us and certain of our former officers
CMTCommunications, Media and Technology
CodeThe Code on Social Security, 2020
Code ZeroCode Zero, LLC
Collaborative SolutionsCollaborative Solutions Holdings, LLC
COVID-19The novel coronavirus disease
COVID-19 ChargesCosts directly related to the COVID-19 pandemic
CPIConsumer Price Index
Credit AgreementCredit agreement with a commercial bank syndicate, as amended
Credit Loss StandardASC Topic 326 "Financial Instruments - Credit Losses"
CTS IndiaOur principal operating subsidiary in India
D&IDiversity and Inclusion
DevbridgeDevbridge Group LLC
DevOpsAgile relationship between development and IT operations
DOJUnited States Department of Justice
DSODays Sales Outstanding
EI-TechnologiesEntrepreneurs et Investisseurs Technologies SAS
EPSEarnings Per Share
ESGEnvironmental, social and corporate governance
ESG MobilityESG Mobility GmbH
EUEuropean Union
EVPEmployee Value Proposition
Exchange ActSecurities Exchange Act of 1934, as amended
Executive Transition CostsCosts associated with our CEO transition and the departure of our President in 2019
FASBFinancial Accounting Standards Board
FCPAForeign Corrupt Practices Act
FSFinancial Services
GAAPGenerally Accepted Accounting Principles in the United States of America
HCHealthcare
High CourtMadras High Court
HRHuman Resources
Cognizant1December 31, 2021 Form 10-K
HunterCertain net assets of Hunter Technical Resources, LLC
InawisdomInawisdom Limited
India Defined Contribution ObligationCertain statutory defined contribution obligations of employees and employers in India
India Tax LawNew tax regime enacted by the Government of India effective April 1, 2019
IPIntellectual property
IoTInternet of Things
IRSInternal Revenue Service
ITInformation Technology
ITDIndian Income Tax Department
LevLevementum, LLC
LiniumThe ServiceNow business of Ness Digital Engineering
MagenicMagenic Technologies, LLC
MATMinimum Alternative Tax
New Lease StandardASC Topic 842 “Leases”
New SignatureBSI Corporate Holdings, Inc.
OECDOrganization for Economic Co-operation and Development
PSUPerformance Stock Units
Purchase PlanCognizant Technology Solutions Corporation 2004 Employee Stock Purchase Plan, as amended
P&RProducts and Resources
ROURight of Use
RSURestricted Stock Units
SaaSSoftware as a service
SamlinkOy Samlink Ab
Samlink ImpactThe reduction of revenue and accrual of expenses recorded in 2020 in connection with our settlement offer to exit from a large customer engagement of our Samlink subsidiary
SCISupreme Court of India
SECUnited States Securities and Exchange Commission
Second CircuitUnited States Court of Appeals for the Second Circuit
ServianSVN HoldCo Pty Limited
SEZSpecial Economic Zone
SG&ASelling, general and administrative
SyntelSyntel Sterling Best Shores Mauritius Ltd.
Tax on Accumulated Indian EarningsThe income tax expense related to the reversal of our indefinite reinvestment assertion on Indian earnings accumulated in prior years
Tax Reform ActTax Cuts and Jobs Act
Term LoanUnsecured term loan under the Credit Agreement
Third CircuitUnited States Court of Appeals for the Third Circuit
Tin RoofTin Roof Software, LLC
TQSTQS Integration Limited
TriZettoThe TriZetto Group, Inc., now known as Cognizant Technology Software Group, Inc.
USDC-NJUnited States District Court for the District of New Jersey
USDC-SDNYUnited States District Court for the Southern District of New York
Cognizant2December 31, 2021 Form 10-K

PART I

Next: Item 1. Business