What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-10-04 compared with 2024-07-05 · 116 added, 111 removed, 643 unchanged (26% of the section changed)

3 unchanged sentences

(currency and share amounts in thousands, except par value)

May 31, 2024 November 30, 2023

August 31, 2024 November 30, 2023

Current assets:

23 unchanged sentences

Stockholders’ equity:

Preferred stock, $ 0.0001 par value, 10,000 shares authorized and no shares issued and outstanding as of May 31, 2024 and November 30, 2023, respectively

Preferred stock, $ 0.0001 par value, 10,000 shares authorized and no shares issued and outstanding as of August 31, 2024 and November 30, 2023, respectively

Common stock, $ 0.0001 par value, 250,000 shares authorized;

68,007 and 67,883 shares issued as of May 31, 2024 and November 30, 2023, respectively, and 64,933 and 65,734 shares outstanding as of May 31, 2024 and November 30, 2023, respectively

68,077 and 67,883 shares issued as of August 31, 2024 and November 30, 2023, respectively, and 64,394 and 65,734 shares outstanding as of August 31, 2024 and November 30, 2023, respectively

Additional paid-in capital 3,653,735 3,582,521

Treasury stock, 3,074 and 2,149 shares as of May 31, 2024 and November 30, 2023, respectively

Treasury stock, 3,683 and 2,149 shares as of August 31, 2024 and November 30, 2023, respectively

( 375,941 ) ( 271,968 )

7 unchanged sentences

(currency and share amounts in thousands, except per share amounts)

Three Months Ended Six Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

Revenue $ 2,387,412 $ 1,632,834 $ 7,170,876 $ 4,883,944

18 unchanged sentences

(currency in thousands)

Three Months Ended Six Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

$ 16,631 $ 77,635 $ 135,567 $ 244,355

Other comprehensive income (loss):

Unrealized gains (losses) of defined benefit plans, net of taxes of $ 0 and $( 135 ) for the three and six months ended May 31, 2024, respectively, and $( 289 ) and $( 180 ) for the three and six months ended May 31, 2023, respectively

Unrealized gains (losses) of defined benefit plans, net of taxes of $ 0 and $( 135 ) for the three and nine months ended August 31, 2024, respectively, and $( 539 ) and $( 719 ) for the three and nine months ended August 31, 2023, respectively

633 ( 1,739 ) 1,907 ( 1,240 )

Unrealized gains (losses) on hedges during the period, net of taxes of $ 7,101 and $ 8,429 for the three and six months ended May 31, 2024, respectively, and $ 1,752 and $( 797 ) for the three and six months ended May 31, 2023, respectively

Unrealized gains (losses) on hedges during the period, net of taxes of $( 6,890 ) and $ 1,539 for the three and nine months ended August 31, 2024, respectively, and $( 422 ) and $( 1,219 ) for the three and nine months ended August 31, 2023, respectively

23,647 1,266 ( 1,300 ) 3,659

Reclassification of net losses on hedges to net income, net of taxes of $( 168 ) and $( 18 ) for the three and six months ended May 31, 2024, respectively, and $( 1,014 ) and $( 2,948 ) for the three and six months ended May 31, 2023, respectively

Reclassification of net losses on hedges to net income, net of taxes of $( 789 ) and $( 807 ) for the three and nine months ended August 31, 2024, respectively, and $( 821 ) and $( 3,769 ) for the three and nine months ended August 31, 2023, respectively

2,323 2,458 2,391 11,309

1 unchanged sentence

25,970 3,724 1,091 14,968

Foreign currency translation, net of taxes of $ 0 for the three and six months ended May 31, 2024 and 2023, respectively

Foreign currency translation, net of taxes of $ 0 for the three and nine months ended August 31, 2024 and 2023, respectively

75,602 ( 1,137 ) ( 19,161 ) ( 140 )

7 unchanged sentences

(currency and share amounts in thousands)

Three and Six Months Ended May 31, 2024

Three and Nine Months Ended August 31, 2024

Common stock Treasury stock

Shares Amount Additional paid-in capital Shares Amount Retained earnings Accumulated other comprehensive income (loss) Total stockholders’ equity

Balances, February 29, 2024 67,981 $ 7 $ 3,605,694 2,409 $ ( 295,732 ) $ 1,055,950 $ ( 264,282 ) $ 4,101,637

Other comprehensive loss — — — — — — ( 45,813 ) ( 45,813 )

Balances, May 31, 2024 68,007 $ 7 $ 3,627,559 3,074 $ ( 336,486 ) $ 1,102,438 $ ( 310,095 ) $ 4,083,423

Other comprehensive income — — — — — — 102,205 102,205

Share-based compensation activity 70 — 26,176 — — — — 26,176

3 unchanged sentences

Net income — — — — — 16,631 — 16,631

Balances, May 31, 2024 68,007 $ 7 $ 3,627,559 3,074 $ ( 336,486 ) $ 1,102,438 $ ( 310,095 ) $ 4,083,423

Balances, August 31, 2024 68,077 $ 7 $ 3,653,735 3,683 $ ( 375,941 ) $ 1,098,855 $ ( 207,890 ) $ 4,168,766

Balances, November 30, 2023 67,883 $ 7 $ 3,582,521 2,149 $ ( 271,968 ) $ 1,024,461 $ ( 191,727 ) $ 4,143,294

5 unchanged sentences

Net income — — — — — 135,567 — 135,567

Balances, May 31, 2024 68,007 $ 7 $ 3,627,559 3,074 $ ( 336,486 ) $ 1,102,438 $ ( 310,095 ) $ 4,083,423

Balances, August 31, 2024 68,077 $ 7 $ 3,653,735 3,683 $ ( 375,941 ) $ 1,098,855 $ ( 207,890 ) $ 4,168,766

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(currency and share amounts in thousands)

Three and Six Months Ended May 31, 2023

Three and Nine Months Ended August 31, 2023

Common stock Treasury stock

Shares Amount Additional paid-in capital Shares Amount Retained earnings Accumulated other comprehensive income (loss) Total stockholders’ equity

Balances, February 28, 2023 52,595 $ 5 $ 2,447,418 1,400 $ ( 208,996 ) $ 847,671 $ ( 285,597 ) $ 2,800,501

Other comprehensive loss — — — — — — ( 17,412 ) ( 17,412 )

Balances, May 31, 2023 52,619 $ 5 $ 2,459,234 1,441 $ ( 214,172 ) $ 912,204 $ ( 303,009 ) $ 2,854,262

Other comprehensive income — — — — — — 848 848

Share-based compensation activity 66 — 12,705 — — — — 12,705

3 unchanged sentences

Net income — — — — — 77,635 — 77,635

Balances, May 31, 2023 52,619 $ 5 $ 2,459,234 1,441 $ ( 214,172 ) $ 912,204 $ ( 303,009 ) $ 2,854,262

Balances, August 31, 2023 52,685 $ 5 $ 2,471,939 1,770 $ ( 241,852 ) $ 975,591 $ ( 302,161 ) $ 2,903,522

Balances, November 30, 2022 52,367 $ 5 $ 2,428,313 1,271 $ ( 190,779 ) $ 774,114 $ ( 315,749 ) $ 2,695,904

5 unchanged sentences

Net income — — — — — 244,355 — 244,355

Balances, May 31, 2023 52,619 $ 5 $ 2,459,234 1,441 $ ( 214,172 ) $ 912,204 $ ( 303,009 ) $ 2,854,262

Balances, August 31, 2023 52,685 $ 5 $ 2,471,939 1,770 $ ( 241,852 ) $ 975,591 $ ( 302,161 ) $ 2,903,522

The accompanying notes are an integral part of these consolidated financial statements.

2 unchanged sentences

(currency in thousands)

Six Months Ended

May 31, 2024 May 31, 2023

Nine Months Ended

August 31, 2024 August 31, 2023

Cash flows from operating activities:

26 unchanged sentences

Repayments of the Securitization Facility ( 1,434,500 ) ( 1,449,000 )

Proceeds from issuance of Senior Notes — 2,136,987

Other debt proceeds 6,369 —

7 unchanged sentences

Change in funds held for clients ( 25,807 ) —

Net cash used in financing activities ( 183,276 ) ( 162,019 )

Net cash provided by (used in) financing activities ( 268,074 ) 1,636,260

Effect of exchange rate changes on cash, cash equivalents and restricted cash ( 6,347 ) ( 2,715 )

11 unchanged sentences

The Company provides end-to-end capabilities, including customer experience (“CX”) process optimization, technology innovation and design engineering, front- and back-office automation, analytics, and business transformation services to clients in five primary industry verticals:

The Company’s primary verticals are:

technology and consumer electronics;

16 unchanged sentences

Concentration of credit risk

For the three and six months ended May 31, 2024 and 2023, no client accounted for more than 10% of the Company’s consolidated revenue.

As of May 31, 2024 and November 30, 2023, no client comprised more than 10% of the Company’s total accounts receivable balance.

Recently adopted accounting pronouncements

For the three and nine months ended August 31, 2024 and 2023, no client accounted for more than 10% of the Company’s consolidated revenue.

As of August 31, 2024 and November 30, 2023, no client comprised more than 10% of the Company’s total accounts receivable balance.

Recent accounting pronouncements

In November 2023, the Financial Accounting Standards Board (the “FASB”) issued accounting standards update (“ASU”) 2023-07, which enhances the disclosures required for reportable segments in annual and interim consolidated financial statements.

9 unchanged sentences

On September 25, 2023, the Company completed its acquisition (the “Webhelp Combination”) of all of the issued and outstanding capital stock (the “Shares”) of Marnix Lux SA, a public limited liability company ( société anonyme ) incorporated under the laws of the Grand Duchy of Luxembourg (“Webhelp Parent”) and the parent company of the Webhelp business (“Webhelp”), from the holders thereof (the “Sellers”).

Webhelp was a leading provider of CX solutions, including sales, marketing, and payment services, with significant operations and client relationships in Europe, Latin America, and Africa.

The Webhelp Combination was completed pursuant to the terms and conditions of the Share Purchase and Contribution Agreement, dated as of June 12, 2023, as amended by the First Amendment to the Share Purchase and Contribution Agreement, dated as of July 14, 2023 (the “SPA”), by and among Concentrix, OSYRIS S.à r.l., a private limited liability company ( société à responsabilité limitée ) incorporated under the laws of the Grand Duchy of Luxembourg and a direct wholly owned subsidiary of Concentrix Corporation (“Purchaser”), Webhelp Parent, the Sellers, and certain representatives of the Sellers.

Webhelp is a leading provider of CX solutions, including sales, marketing, and payment services, with significant operations and client relationships in Europe, Latin America, and Africa.

Preliminary purchase price consideration

The total preliminary purchase price consideration, net of cash and restricted cash acquired, for the acquisition of Webhelp was $ 3,774.8 million, which was funded by proceeds from the Company’s August 2023 offering and sale of senior notes, term loan borrowings under the Company’s senior credit facility, the issuance of shares of the Company’s common stock, and cash on hand.

Purchase price consideration

The total purchase price consideration, net of cash and restricted cash acquired, for the acquisition of Webhelp was $ 3,774.8 million, which was funded by proceeds from the Company’s August 2023 offering and sale of senior notes, term loan borrowings under the Company’s senior credit facility, the issuance of shares of the Company’s common stock, and cash on hand.

See Note 8 — Borrowings for a further discussion of the Company’s senior notes, term loan, and senior credit facility.

The preliminary purchase price consideration to acquire Webhelp consisted of the following:

The purchase price consideration to acquire Webhelp consisted of the following:

Cash consideration for Shares (1)

52 unchanged sentences

(1) Includes restricted cash acquired of $ 188,899 .

As of May 31, 2024, the purchase price allocation is preliminary.

The preliminary purchase price allocation was based upon a preliminary valuation, and the Company’s estimates and assumptions are subject to change within the measurement period (not to exceed twelve months following the acquisition date).

As of August 31, 2024, the allocation of the purchase price has not been finalized and the one-year measurement period has not ended.

The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the valuation of identifiable intangible assets acquired, the fair value of certain tangible assets acquired and liabilities assumed, and deferred income taxes.

Company expects to continue to obtain information for the purpose of determining the fair value of the assets acquired and liabilities assumed on the acquisition date throughout the remainder of the measurement period.

The Company expects to continue to obtain information for the purpose of determining the fair value of the assets acquired and liabilities assumed on the acquisition date throughout the remainder of the measurement period.

As a result of further refining its estimates and assumptions since the date of the acquisition, the Company recorded measurement period adjustments to the initial purchase price allocation.

Adjustments were primarily made to cash, goodwill, accrued compensation and benefits, accrued liabilities and deferred income taxes.

These measurement period adjustments to the preliminary purchase price allocation during the three and six months ended May 31, 2024 were not material.

Adjustments were primarily made to cash, goodwill, accrued compensation and benefits, accrued liabilities, other long-term liabilities and deferred income taxes.

For the nine months ended August 31, 2024, the Company recorded measurement period adjustments of $ 31,641 to goodwill.

The preliminary purchase price allocation includes $ 1,984,000 of acquired identifiable intangible assets, all of which have finite lives.

17 unchanged sentences

• The related income tax effects of the adjustments noted above.

The supplemental pro forma financial information for the six months ended May 31, 2023 is as follows:

Six Months Ended

The supplemental pro forma financial information for the nine months ended August 31, 2023 is as follows:

Nine Months Ended

August 31, 2023

Revenue $ 7,068,183

1 unchanged sentence

Acquisition-related and integration expenses

In connection with the Webhelp Combination and previous year acquisitions, the Company incurred $ 30,906 and $ 61,079 of acquisition-related and integration expenses for the three and six months ended May 31, 2024, respectively, and $ 7,433 and $ 12,976 for the three and six months ended May 31, 2023, respectively.

In connection with the Webhelp Combination and previous year acquisitions, the Company incurred $ 36,055 and $ 97,134 of acquisition-related and integration expenses for the three and nine months ended August 31, 2024, respectively, and $ 18,494 and $ 31,470 for the three and nine months ended August 31, 2023, respectively.

These expenses primarily include legal and professional services, cash-settled awards, severance and retention payments, and costs associated with lease terminations to integrate the businesses.

9 unchanged sentences

The performance-based restricted stock units had a grant date weighted average fair value of $ 52.87 per share.

The Company recorded share-based compensation expense in the consolidated statements of operations for the three and six months ended May 31, 2024 and 2023 as follows:

Three Months Ended Six Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

The Company recorded share-based compensation expense in the consolidated statements of operations for the three and nine months ended August 31, 2024 and 2023 as follows:

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

Total share-based compensation $ 22,663 $ 10,740 $ 65,927 $ 38,683

5 unchanged sentences

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the consolidated statements of cash flows:

May 31, 2024 November 30, 2023

August 31, 2024 November 30, 2023

Cash and cash equivalents $ 246,241 $ 295,336

2 unchanged sentences

Restricted cash balances relate primarily to funds held for clients, restrictions placed on cash deposits by banks as collateral for the issuance of bank guarantees and the terms of a government grant, and letters of credit for leases.

The Company had a corresponding current liability recorded in other accrued liabilities on the consolidated balance sheet related to funds held for clients of approximately $ 181,608 and $ 218,228 as of May 31, 2024 and November 30, 2023, respectively.

The Company had a corresponding current liability recorded in other accrued liabilities on the consolidated balance sheet related to funds held for clients of approximately $ 186,390 and $ 218,228 as of August 31, 2024 and November 30, 2023, respectively.

Accounts receivable, net:

Accounts receivable, net is comprised of the following as of May 31, 2024 and November 30, 2023:

May 31, 2024 November 30, 2023

Accounts receivable, net is comprised of the following as of August 31, 2024 and November 30, 2023:

August 31, 2024 November 30, 2023

Billed accounts receivable $ 1,055,616 $ 1,082,469

5 unchanged sentences

Presented below is a progression of the allowance for doubtful trade receivables:

Three Months Ended Six Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

Balance at beginning of period $ 13,043 $ 8,774 $ 12,533 $ 4,797

3 unchanged sentences

Property and equipment, net:

The following table summarizes the carrying amounts and related accumulated depreciation for property and equipment as of May 31, 2024 and November 30, 2023:

May 31, 2024 November 30, 2023

The following table summarizes the carrying amounts and related accumulated depreciation for property and equipment as of August 31, 2024 and November 30, 2023:

August 31, 2024 November 30, 2023

Land $ 28,375 $ 28,039

9 unchanged sentences

$ 732,663 $ 748,691

Shown below are the countries where significant concentrations of the Company’s property and equipment, net are located as of May 31, 2024 and November 30, 2023:

May 31, 2024 November 30, 2023

Shown below are the countries where significant concentrations of the Company’s property and equipment, net are located as of August 31, 2024 and November 30, 2023:

August 31, 2024 November 30, 2023

Property and equipment, net:

5 unchanged sentences

Total $ 732,663 $ 748,691

The following table summarizes the changes in the Company’s goodwill for the six months ended May 31, 2024 and 2023:

Six Months Ended

May 31, 2024 May 31, 2023

The following table summarizes the changes in the Company’s goodwill for the nine months ended August 31, 2024 and 2023:

Nine Months Ended

August 31, 2024 August 31, 2023

Balance at beginning of period $ 5,078,668 $ 2,904,402

5 unchanged sentences

Intangible assets, net:

The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of May 31, 2024 and November 30, 2023:

As of May 31, 2024 As of November 30, 2023

The following tables summarize the carrying amounts and related accumulated amortization for intangible assets as of August 31, 2024 and November 30, 2023:

As of August 31, 2024 As of November 30, 2023

Gross amounts Accumulated amortization Net amounts Gross amounts Accumulated amortization Net amounts

6 unchanged sentences

Fiscal years ending November 30,

2024 (remaining six months) $ 229,188

2024 (remaining three months) $ 114,426

Thereafter 1,003,703

2 unchanged sentences

The components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes, were as follows:

Three Months Ended May 31, 2024 and 2023

Three Months Ended August 31, 2024 and 2023

Unrecognized gains (losses) on

4 unchanged sentences

adjustments, net of taxes

Balances at February 28, 2023 $ ( 9,023 ) $ ( 6,453 ) $ ( 270,121 ) $ ( 285,597 )

Balances at May 31, 2023 $ ( 7,972 ) $ ( 8,670 ) $ ( 286,367 ) $ ( 303,009 )

Other comprehensive income (loss) before reclassification

2 unchanged sentences

— 2,458 — 2,458

Balances at May 31, 2023

Balances at August 31, 2023

$ ( 9,711 ) $ ( 4,946 ) $ ( 287,504 ) $ ( 302,161 )

Balances at February 29, 2024 $ ( 9,967 ) $ 42 $ ( 254,357 ) $ ( 264,282 )

Balances at May 31, 2024 $ ( 9,997 ) $ ( 20,390 ) $ ( 279,708 ) $ ( 310,095 )

Other comprehensive income (loss) before reclassification

1 unchanged sentence

Reclassification of gains from other comprehensive income (loss)

Balances at May 31, 2024

— 2,323 — 2,323

Six Months Ended May 31, 2024 and 2023

Balances at August 31, 2024

$ ( 9,364 ) $ 5,580 $ ( 204,106 ) $ ( 207,890 )

Nine Months Ended August 31, 2024 and 2023

Unrecognized gains (losses) on

9 unchanged sentences

— 11,309 — 11,309

Balances at May 31, 2023

Balances at August 31, 2023

$ ( 9,711 ) $ ( 4,946 ) $ ( 287,504 ) $ ( 302,161 )

3 unchanged sentences

Reclassification of gains from other comprehensive income (loss)

Balances at May 31, 2024

— 2,391 — 2,391

Balances at August 31, 2024

$ ( 9,364 ) $ 5,580 $ ( 204,106 ) $ ( 207,890 )

Refer to Note 6—Derivative Instruments for the location of gains and losses on cash flow hedges reclassified from other comprehensive income (loss) to the consolidated statements of operations.

14 unchanged sentences

dollars may hedge a portion of forecasted revenue or costs not denominated in the entities’ functional currencies.

These instruments mature at various dates through May 2026.

These instruments mature at various dates through August 2026.

Gains and losses on cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings.

17 unchanged sentences

The fair values of the Company’s derivative instruments are disclosed in Note 7—Fair Value Measurements and summarized in the table below:

Balance Sheet Line Item May 31, 2024 November 30, 2023

Balance Sheet Line Item August 31, 2024 November 30, 2023

Derivative instruments not designated as hedging instruments:

10 unchanged sentences

Other current assets and other assets

11,238 14,330

Other accrued liabilities and other long-term liabilities

Volume of activity

The notional amounts of foreign exchange forward contracts represent the gross amounts of foreign currency, including, principally, the Philippine peso, the Indian rupee, the euro, the British pound, the Japanese yen, and the Australian dollar, that will be bought or sold at maturity.

The notional amounts of foreign exchange forward contracts represent the gross amounts of foreign currency, including, principally, the Philippine peso, the Indian rupee, the euro, and the British pound, that will be bought or sold at maturity.

The notional amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Company’s exposure to credit or market loss.

2 unchanged sentences

The following table shows the gains and losses, before taxes, of the Company’s derivative instruments designated as cash flow hedges and not designated as hedging instruments in other comprehensive income (“OCI”), and the consolidated statements of operations for the periods presented:

Three Months Ended Six Months Ended

Locations of gain (loss) in statement of operations May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Three Months Ended Nine Months Ended

Locations of gain (loss) in statement of operations August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

Derivative instruments designated as cash flow and fair value hedges:

3 unchanged sentences

3,369 — 4,186 —

$ 30,537 $ 1,688 $ ( 2,839 ) $ 4,878

Gains (losses) reclassified from AOCI into income:

6 unchanged sentences

Derivative instruments not designated as hedging instruments:

Gain recognized from foreign exchange forward contracts, net (1)

Loss recognized from foreign exchange forward contracts, net (1)

Other expense (income), net $ ( 7,663 ) $ ( 2,170 ) $ ( 11,696 ) $ ( 7,005 )

4 unchanged sentences

There were no material gain or loss amounts excluded from the assessment of effectiveness.

Existing net losses in AOCI that are expected to be reclassified into earnings in the normal course of business within the next twelve months are $ 16,483 .

Existing net gains in AOCI that are expected to be reclassified into earnings in the normal course of business within the next twelve months are $ 5,508 .

Offsetting of Derivatives

1 unchanged sentence

Credit exposure for derivative financial instruments is limited to the amounts, if any, by which the counterparties’ obligations under the contracts exceed the Company’s obligations to the counterparties.

The Company manages the potential risk of credit losses through careful evaluation of counterparty credit standing and selection of counterparties from a limited group of financial institutions with high credit standing.

The Company manages the potential risk of credit losses by selecting counterparties from a limited group of financial institutions with high credit standing.

NOTE 7— FAIR VALUE MEASUREMENTS:

4 unchanged sentences

The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis:

As of May 31, 2024 As of November 30, 2023

As of August 31, 2024 As of November 30, 2023

Fair value measurement category Fair value measurement category

23 unchanged sentences

The inputs include the closing price of Concentrix common stock as of the reporting period end date, Concentrix-specific historical equity volatility, and the risk-free rate.

The effect of nonperformance risk on the fair value of derivative instruments was not material as of May 31, 2024 and November 30, 2023.

The effect of nonperformance risk on the fair value of derivative instruments was not material as of August 31, 2024 and November 30, 2023.

The carrying values of term deposits with maturities less than one year, accounts receivable and accounts payable approximate fair value due to their short maturities and interest rates that are variable in nature.

2 unchanged sentences

The Company does not adjust the quoted market prices for such financial instruments.

During the three and six months ended May 31, 2024 and May 31, 2023, there were no transfers between the fair value measurement category levels.

During the three and nine months ended August 31, 2024 and August 31, 2023, there were no transfers between the fair value measurement category levels.

NOTE 8—BORROWINGS:

Borrowings consist of the following:

May 31, 2024 November 30, 2023

August 31, 2024 November 30, 2023

Other loans $ 2,857 $ 2,313

27 unchanged sentences

As of November 30, 2023, the outstanding principal balance on the Term Loan was $ 1,950,000 due to principal payments made subsequent to the Closing Date.

During the three and six months ended May 31, 2024, the Company voluntarily prepaid $ 150,000 and $ 250,000 , respectively, of the principal balance on the Term Loan, without penalty, resulting in an outstanding balance at May 31, 2024 of $ 1,700,000 .

During the three and nine months ended August 31, 2024, the Company voluntarily prepaid $ 100,000 and $ 350,000 , respectively, of the principal balance on the Term Loan, without penalty, resulting in an outstanding balance at August 31, 2024 of $ 1,600,000 .

The maturity date of the Restated Credit Facility is December 27, 2026, subject, in the case of the revolving credit facility, to two one-year extensions upon the Company’s prior notice to the lenders and the agreement of the lenders to extend such maturity date.

12 unchanged sentences

From August 31, 2022 through the date of the Amendment Agreement, the outstanding principal of the term loans under the Prior Credit Facility was payable in quarterly installments of $ 26,250 .

At May 31, 2024 and November 30, 2023, no amounts were outstanding under the Company’s revolving credit facility.

During the six months ended May 31, 2023, the Company voluntarily prepaid $ 25,000 of the principal balance on the term loans under the Prior Credit Facility, without penalty.

At August 31, 2024 and November 30, 2023, no amounts were outstanding under the Company’s revolving credit facility.

During the nine months ended August 31, 2023, the Company voluntarily prepaid $ 25,000 of the principal balance on the term loans under the Prior Credit Facility, without penalty.

Securitization Facility

14 unchanged sentences

Covenant compliance

As of May 31, 2024 and November 30, 2023, Concentrix was in compliance with all covenants for the above arrangements.

As of August 31, 2024 and November 30, 2023, Concentrix was in compliance with all covenants for the above arrangements.

NOTE 9— EARNINGS PER SHARE:

Basic and diluted earnings per common share ( “ EPS ” ) are computed using the two-class method, which is an earnings allocation formula that determines EPS for each class of common stock and participating security.

Three Months Ended Six Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

Basic earnings per common share:

16 unchanged sentences

(1) Restricted stock awards granted to employees by the Company are considered participating securities.

Effective in the fourth quarter of fiscal year 2023, restricted stock units granted are also considered participating securities.

Effective in the fourth quarter of fiscal year 2023, certain restricted stock units granted are also considered participating securities.

NOTE 10— REVENUE:

1 unchanged sentence

In the following table, the Company’s revenue is disaggregated by primary industry verticals:

Three Months Ended Six Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

Industry vertical:

16 unchanged sentences

legal entities are covered by government mandated defined contribution plans.

During the three and six months ended May 31, 2024, the Company contributed $ 25,516 and $ 51,632 , respectively, to defined contribution plans.

During the three and six months ended May 31, 2023, the Company contributed $ 21,871 and $ 44,525 , respectively, to defined contribution plans.

During the three and nine months ended August 31, 2024, the Company contributed $ 23,539 and $ 75,171 , respectively, to defined contribution plans.

During the three and nine months ended August 31, 2023, the Company contributed $ 22,945 and $ 67,470 , respectively, to defined contribution plans.

Defined Benefit Plans

4 unchanged sentences

Benefits under these plans are primarily based on years of service and compensation during the years immediately preceding retirement or termination of participation in the plans.

Net benefit costs related to defined benefit plans were $ 3,510 and $ 7,089 , during the three and six months ended May 31, 2024, respectively.

Net benefit costs related to defined benefit plans were $ 2,693 and $ 5,627 , during the three and six months ended May 31, 2023, respectively.

On an aggregate basis, the plans were underfunded by $ 82,485 and $ 81,813 at May 31, 2024 and November 30, 2023, respectively.

Net benefit costs related to defined benefit plans were $ 4,271 and $ 11,360 , during the three and nine months ended August 31, 2024, respectively.

Net benefit costs related to defined benefit plans were $ 2,433 and $ 8,060 , during the three and nine months ended August 31, 2023, respectively.

On an aggregate basis, the plans were underfunded by $ 85,152 and $ 81,813 at August 31, 2024 and November 30, 2023, respectively.

NOTE 12— INCOME TAXES:

Income taxes consist of current and deferred tax expense resulting from income earned in domestic and international jurisdictions.

The effective tax rates for the three and six months ended May 31, 2024 and 2023 were impacted by the geographic mix of worldwide income and certain discrete items.

The liability for unrecognized tax benefits was $ 88,948 and $ 87,939 at May 31, 2024 and November 30, 2023, respectively, and is included in other long-term liabilities in the consolidated balance sheets.

As of May 31, 2024 and November 30, 2023, the total amount of unrecognized tax benefits that would affect income tax expense if recognized in the consolidated financial statements was $ 58,856 and $ 52,779 , respectively.

The effective tax rates for the three and nine months ended August 31, 2024 and 2023 were impacted by the geographic mix of worldwide income and certain discrete items.

The liability for unrecognized tax benefits was $ 100,219 and $ 87,939 at August 31, 2024 and November 30, 2023, respectively, and is included in other long-term liabilities in the consolidated balance sheets.

As of August 31, 2024 and November 30, 2023, the total amount of unrecognized tax benefits that would affect income tax expense if recognized in the consolidated financial statements was $ 69,728 and $ 52,779 , respectively.

This amount includes net interest and penalties of $ 14,099 and $ 8,617 for the respective periods.

5 unchanged sentences

The following table presents the various components of operating lease costs:

Three Months Ended Six Months Ended

May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023

Three Months Ended Nine Months Ended

August 31, 2024 August 31, 2023 August 31, 2024 August 31, 2023

Operating lease cost $ 73,765 $ 51,966 $ 217,471 $ 155,401

3 unchanged sentences

Total operating lease cost $ 108,334 $ 67,430 $ 314,331 $ 202,268

The following table presents a maturity analysis of expected undiscounted cash flows for operating leases on an annual basis for the next five fiscal years and thereafter as of May 31, 2024:

The following table presents a maturity analysis of expected undiscounted cash flows for operating leases on an annual basis for the next five fiscal years and thereafter as of August 31, 2024:

Fiscal Years Ending November 30,

2024 (remaining six months)

2024 (remaining three months)

Thereafter 172,746

4 unchanged sentences

The following amounts were recorded in the consolidated balance sheets related to the Company’s operating leases:

May 31, 2024 November 30, 2023

August 31, 2024 November 30, 2023

Operating lease ROU assets Other assets, net $ 824,229 $ 813,590

3 unchanged sentences

Cash payments related to variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below:

Six Months Ended

May 31, 2024 May 31, 2023

Nine Months Ended

August 31, 2024 August 31, 2023

Cash paid for amounts included in the measurement of lease liabilities $ 230,274 $ 159,460

Non-cash ROU assets obtained in exchange for lease liabilities 210,359 86,273

The weighted-average remaining lease term and discount rate as of May 31, 2024 and November 30, 2023 were as follows:

May 31, 2024 November 30, 2023

The weighted-average remaining lease term and discount rate as of August 31, 2024 and November 30, 2023 were as follows:

August 31, 2024 November 30, 2023

Weighted-average remaining lease term (years) 4.55 4.88

11 unchanged sentences

The repurchase program has no termination date and may be suspended or discontinued at any time.

During the three and six months ended May 31, 2024, the Company repurchased 663 and 900 shares, respectively, of its common stock for an aggregate purchase price of $ 40,633 and $ 62,307 , respectively.

During the three and six months ended May 31, 2023, the Company repurchased 39 and 110 shares, respectively, of its common stock for an aggregate purchase price of $ 4,940 and $ 14,941 , respectively.

During the three and nine months ended August 31, 2024, the Company repurchased 607 and 1,507 shares, respectively, of its common stock for an aggregate purchase price of $ 39,308 and $ 101,615 , respectively.

During the three and nine months ended August 31, 2023, the Company repurchased 320 and 431 shares, respectively, of its common stock for an aggregate purchase price of $ 27,000 and $ 41,941 , respectively.

The share repurchases were made on the open market and the shares repurchased by the Company are held in treasury for general corporate purposes.

At May 31, 2024, approximately $ 227,819 remained available for share repurchases under the existing authorization from the Company’s board of directors.

During June 2024, the Company repurchased 215 shares of its common stock for an aggregate purchase price of $ 13,017 .

At August 31, 2024, approximately $ 188,512 remained available for share repurchases under the existing authorization from the Company’s board of directors.

During September 2024, the Company repurchased 162 shares of its common stock for an aggregate purchase price of $ 10,624 .

During fiscal years 2024 and 2023, the Company has paid the following dividends per share approved by the Company’s board of directors:

6 unchanged sentences

March 26, 2024 April 26, 2024 $ 0.3025 May 7, 2024

On June 26, 2024, the Company announced a cash dividend of $ 0.3025 per share to stockholders of record as of the close of business on July 26, 2024, payable on August 6, 2024.

June 26, 2024 July 26, 2024 $ 0.3025 August 6, 2024

On September 25, 2024, the Company announced a cash dividend of $ 0.33275 per share to stockholders of record as of the close of business on October 25, 2024, payable on November 5, 2024.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements