Cover and table of contents
18K characters. Original on sec.gov · Markdown
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 ended | December 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)
| Delaware | 13-3728359 | ||||||||||
| (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 class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Class A Common Stock, $0.01 par value per share | CTSH | The 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
| GLOSSARY |
| Defined Term | Definition | ||||
| 10b5-1 Plan | Trading plan adopted pursuant to Rule 10b5-1 of the Exchange Act | ||||
| 10th Magnitude | Pamlico 10th Magnitude Blocker LLC, now known as Cognizant 10th Magnitude Blocker, LLC | ||||
| 2009 Incentive Plan | Cognizant Technology Solutions Corporation Amended and Restated 2009 Incentive Compensation Plan | ||||
| 2017 Incentive Plan | Cognizant Technology Solutions Corporation 2017 Incentive Award Plan | ||||
| Adjusted Diluted EPS | Adjusted diluted earnings per share | ||||
| AI | Artificial Intelligence | ||||
| APA | Advance Pricing Agreement | ||||
| ASC | Accounting Standards Codification | ||||
| ASR | Accelerated Stock Repurchase | ||||
| ASU | Accounting Standards Update | ||||
| Bright Wolf | Bright Wolf, LLC | ||||
| CC | Constant Currency | ||||
| Class Action Settlement Loss | Loss 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 | ||||
| CMT | Communications, Media and Technology | ||||
| Code | The Code on Social Security, 2020 | ||||
| Code Zero | Code Zero, LLC | ||||
| Collaborative Solutions | Collaborative Solutions Holdings, LLC | ||||
| COVID-19 | The novel coronavirus disease | ||||
| COVID-19 Charges | Costs directly related to the COVID-19 pandemic | ||||
| CPI | Consumer Price Index | ||||
| Credit Agreement | Credit agreement with a commercial bank syndicate, as amended | ||||
| Credit Loss Standard | ASC Topic 326 "Financial Instruments - Credit Losses" | ||||
| CTS India | Our principal operating subsidiary in India | ||||
| D&I | Diversity and Inclusion | ||||
| Devbridge | Devbridge Group LLC | ||||
| DevOps | Agile relationship between development and IT operations | ||||
| DOJ | United States Department of Justice | ||||
| DSO | Days Sales Outstanding | ||||
| EI-Technologies | Entrepreneurs et Investisseurs Technologies SAS | ||||
| EPS | Earnings Per Share | ||||
| ESG | Environmental, social and corporate governance | ||||
| ESG Mobility | ESG Mobility GmbH | ||||
| EU | European Union | ||||
| EVP | Employee Value Proposition | ||||
| Exchange Act | Securities Exchange Act of 1934, as amended | ||||
| Executive Transition Costs | Costs associated with our CEO transition and the departure of our President in 2019 | ||||
| FASB | Financial Accounting Standards Board | ||||
| FCPA | Foreign Corrupt Practices Act | ||||
| FS | Financial Services | ||||
| GAAP | Generally Accepted Accounting Principles in the United States of America | ||||
| HC | Healthcare | ||||
| High Court | Madras High Court | ||||
| HR | Human Resources |
| Cognizant | 1 | December 31, 2021 Form 10-K |
| Hunter | Certain net assets of Hunter Technical Resources, LLC | ||||
| Inawisdom | Inawisdom Limited | ||||
| India Defined Contribution Obligation | Certain statutory defined contribution obligations of employees and employers in India | ||||
| India Tax Law | New tax regime enacted by the Government of India effective April 1, 2019 | ||||
| IP | Intellectual property | ||||
| IoT | Internet of Things | ||||
| IRS | Internal Revenue Service | ||||
| IT | Information Technology | ||||
| ITD | Indian Income Tax Department | ||||
| Lev | Levementum, LLC | ||||
| Linium | The ServiceNow business of Ness Digital Engineering | ||||
| Magenic | Magenic Technologies, LLC | ||||
| MAT | Minimum Alternative Tax | ||||
| New Lease Standard | ASC Topic 842 “Leases” | ||||
| New Signature | BSI Corporate Holdings, Inc. | ||||
| OECD | Organization for Economic Co-operation and Development | ||||
| PSU | Performance Stock Units | ||||
| Purchase Plan | Cognizant Technology Solutions Corporation 2004 Employee Stock Purchase Plan, as amended | ||||
| P&R | Products and Resources | ||||
| ROU | Right of Use | ||||
| RSU | Restricted Stock Units | ||||
| SaaS | Software as a service | ||||
| Samlink | Oy Samlink Ab | ||||
| Samlink Impact | The 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 | ||||
| SCI | Supreme Court of India | ||||
| SEC | United States Securities and Exchange Commission | ||||
| Second Circuit | United States Court of Appeals for the Second Circuit | ||||
| Servian | SVN HoldCo Pty Limited | ||||
| SEZ | Special Economic Zone | ||||
| SG&A | Selling, general and administrative | ||||
| Syntel | Syntel Sterling Best Shores Mauritius Ltd. | ||||
| Tax on Accumulated Indian Earnings | The income tax expense related to the reversal of our indefinite reinvestment assertion on Indian earnings accumulated in prior years | ||||
| Tax Reform Act | Tax Cuts and Jobs Act | ||||
| Term Loan | Unsecured term loan under the Credit Agreement | ||||
| Third Circuit | United States Court of Appeals for the Third Circuit | ||||
| Tin Roof | Tin Roof Software, LLC | ||||
| TQS | TQS Integration Limited | ||||
| TriZetto | The TriZetto Group, Inc., now known as Cognizant Technology Software Group, Inc. | ||||
| USDC-NJ | United States District Court for the District of New Jersey | ||||
| USDC-SDNY | United States District Court for the Southern District of New York |
| Cognizant | 2 | December 31, 2021 Form 10-K |
PART I