Bpo Report

OVERVIEW
Business Process Outsourcing (BPO) - is where a company transfer its non-core activities
to a third-party which uses information technology for service delivery. Companies’ decision
to outsource their business processes has also undergone procedures such as planning to
ensure that it would really bring benefits and advantages to the company. They will first
identify what processes their company needed to be outsource. Also, the reasons why it needs
to be outsource, consider its advantages and disadvantages that could contribute to the
company’s short or long-term success. After these said procedure, they must find the right,
effective and efficient BPO provider to meet their goals and objectives such as, cut costs, free
up time, and focus on core aspects of the business.
BPO generally falls into two categories
 Front Office Outsourcing – is the direct interaction operation of a company who
act as a representative. This includes business processes, such as marketing, tech
support, chat or other forms of direct interaction with a client’s customer base.
This role requires great communication skills, enough understanding and
knowledge of products or services and knows the needs and wants of the
company’s consumers.
 Back Office Outsourcing – is a non-customer facing tasks that includes internal
functions, such as billing or purchasing, administration, and quality assurance and
reporting. This role requires strategic thinking, excellent decision making and
managing, and has a goal to reduce company’s operational costs.
*The main difference between the two is that Front Office BPO deals directly with
customers, while Back Office BPO supports internal operations without customer interaction.
BPO companies can be grouped into different types based on where they’re located:
 Onshore outsourcing – operate within the same country as the company.
 Nearshore outsourcing – operate near or countries that neighbour the company’s
country.
 Offshore outsourcing – operate outside the company’s country.
How does BPO works and why is there a need for companies to outsource their business
process?
- Company’s decision to outsource business processes has its significant reasons. This
includes the lack of resources, to improve the business processes, and the advantages
and benefits a company will get in outsourcing. Not all company has a complete
resource that is why they needed to outsource. Additionally, in this way, they can
reduce the operational costs and gain advantages and benefits that can help the
company to achieve short or long-term success. They can also invest in advanced
technology to ensure the smooth flow of work to the outsource provider. Outsourcing
business processes impacts the flow of the management as it moves the established
processes and existing workflows. In this reason, companies needed to adjust and shift
the necessary processes and workflows.
Benefits of BPO
1. Lower costs
- One of the main reasons organizations outsource is cost reduction. The companies
eliminate buying IT equipment and hiring more employees to do different tasks, they
can outsource the tasks to a service provider, reducing or even eliminating overhead
costs.
2. Higher efficiency
- BPO companies are experienced in different fields and perform at the highest level.
They also adopt best practices and use the latest technology. It naturally results in
higher efficiency and greater productivity.
3. Focus on core business functions
- Many companies, usually start-ups, encounter a difficult time with ancillary business
activities. Transferring non-core processes to a BPO company gives the organization
more time to focus on its main business activities.
4. Global expansion
- An organization expands its market to access local market experience, language skills,
some activities that require local market knowledge, national law expertise, or fluency
in a foreign language. It helps in boosting efficiency and quicker expansion.
Drawbacks of BPO
1. Security issues
- One of the security threats that could occur by this is a security breach. It appears that
sensitive information is transmitted and processed by the BPO services.
2. Overdependence on the BPO company
- When the work is forwarded to a BPO company for the long term, an entity becomes
used to how it operates and overdependent on it. A company will have to pay higher
costs than usual if it is asked due to organization-wide addiction.
3. Communication problems
- Communication is one of the most common obstacles when offshore companies are
relying on a language barrier to keep the company running smoothly. This can happen
when work is completed in such a way that a lot of people are involved, and the
predictions of different team members are different. This can be a costly affair in most
cases.
4. Unforeseen or hidden costs
- Not all work is tough however organizations may misjudge it and as a result more
time and money than was initially projected could be spent. The BPO service provider
is also faced with legal fees in case of a dispute or conflict. Dealing with the
deliverance of the work, all of these costs are being paid indirectly
Risks faced by BPO Industry
1. Business Risk
2. Price Risk
3. Political Risk
4. Process Risk
5. Human Capital Risk
6. Brand/Reputation Risk
7. Systemic Risk
8. Accessibility Risk, Business continuity, Security Risk
9. Technology Risk
Because of the risks in BPO industry, the growth is limited. To reduce these risks, companies
need to formulate risks management strategies through technology advancement and
outsource tasks in different BPO providers
HISTORY
Outsourcing, a business strategy proposed by Morton H. Meyerson in 1967, originated in the
1970s and 1980s as a way to reduce operating costs in manufacturing industries. The first era
focused on "time sharing" using remote terminals, with Eastman Kodak outsourcing its IT
systems in the late 1980s. By the 1990s, the concept expanded to back-office functions like
data entry, payroll processing, and customer support. Asia has been the first choice for BPO
services because of its cost advantages, but it has mainly attracted non-core, middle-end
processes. During late 2000s, BPO service providers have expanded their capabilities through
adding more complex, high-value, and knowledge-intensive processes. Now BPO service
providers render services like financial and market research, credit rating, customer analytics,
cybersecurity, and automated data processing.
Outsourcing, as a practice, evolved to be quite well established after World War 2, and in
1967, outsourcing was formally proposed as a business strategy by Morton H. Meyerson of
The Electronic Data Systems Corporation. BPO traces its beginnings back to the early 1970s
and 1980s when companies began looking for ways to lower their operating cost. It started
with manufacturing industries outsourcing production to locations that charged lower wages.
The first era of modern outsourcing focused on "time sharing." During this period, tasks were
allocated to remote terminals at distant facilities using large computing machines provided by
companies like IBM. This era lasted from the 1950s to the late 1980s. In the late 1980s,
Eastman Kodak made a significant impact with an unprecedented move by deciding to
outsource its IT systems, which shocked the industry.
However, by the 1990s, the concept had expanded to include back-office functions such as
data entry, payroll processing, and customer support. The primary driver was still cost
reduction, with companies leveraging labor arbitrage between their home countries and
regions where costs were significantly lower.
Asia has always been the first preference for BPO services because of the cost advantages.
However, it attracted only those non-core, middle-end processes and operations that mostly
included customer service, human resources, and other activities.
This trend, which began in the late 1990s and the early 2000s as information technologies
were becoming highly integral to a business's operations, was IT outsourcing, or ITO.
Companies began to outsource not only the maintenance of IT infrastructure but also the
development of software and applications to third-party providers. This was a shift from
merely considering business process outsourcing (BPO) as a cost cut-back mechanism to
understanding it as a strategic mechanism to access specialized knowledge and technological
skills that were available outside the organization. Larger corporations would consider
relying on remote work arrangements, and they would hire the most skilled employees from
any nook and corner of the country or the world.
It was in the late 2000s when BPO service providers widened their scope of capabilities,
including more complex, high-value, and knowledge-intensive processes into their offerings.
This was achieved through new technologies adopted and improvement in the skills of their
workforce to meet with the upsurging client demands. They were able to do so through
developing expertise across an assortment of industries using advanced technologies along
with a highly skilled workforce.
Today, BPO providers offer financial market research, credit rating, and customer analytics,
including cybersecurity, automated data processing, and so much more. Combined with these
combined capabilities, BPOs help their clients in creating added value by integrating diverse
products and services.
AUDIT/TAX CONSIDERATIONS
Tax Considerations
Income Tax Holiday (ITH)
5. An Income Tax Holiday is available to BPO firms that have recently registered with
the Board of Investments (BOI) or the Philippine Economic Zone Authority (PEZA).
This advantage is available to non-pioneering businesses for four years, while it is
granted to pioneering businesses for six years.
6. Likewise, enterprises that are registered with the Cagayan Special Economic Zone
Authority (CEZA) may be eligible for an income tax holiday ranging from four to six
years, contingent upon their adherence to CEZA regulations.
5% Special Tax Rate on Gross Income
7. PEZA-registered BPO businesses are subject to a special tax rate of 5% on gross
income once the ITH term ends, which replaces national and local taxes with the
exception of real property taxes on developer-owned land.
Exemption from Local and National Taxes
8. BPOs with PEZA registration are free from both local and national taxes. Rather, they
must pay the special tax of 5% on their earned gross income.
Value-Added Tax (VAT)
9. Export services provided by BPOs registered with PEZA and BOI are zero-rated for
VAT purposes throughout the ITH term. These export services are subject to a 5%
special tax regime after the ITH term, and are not subject to VAT; domestic sales are
subject to a 12% VAT. In addition, whether the business is subject to the 5% special
tax regime or the ITH, purchases made from suppliers outside the ecozone that have
registered for VAT are subject to 0% VAT.
Tax Deductions
10. Under Philippine tax regulations, BPO companies are eligible for multiple tax
deductions, such as a 50% deduction for labor expenses and additional deductions for
training costs.
Duty-Free Importation
11. BPOs registered with BOI and PEZA are eligible for exemptions from import taxes
and duties.
Scope of Duty-Free Importation under PEZA Law:
 Capital Equipment
 Raw Materials and Supplies
 Spare Parts
Audit Considerations
These factors influence the auditor’s risk assessment and planning:
 Inherent Risks: Includes limited control over outsourced processes, possible
miscommunication, inadequate oversight of BPO performance, data security issues,
and risks from third-party dependencies.
 Service Organization Control Reports (SOC Reports): Important for evaluating BPO
internal controls, with SOC 1 focusing on financial reporting and SOC 2 addressing
security and privacy.
 Materiality: Assessing how outsourced functions affect the client’s financial
statements impacts the audit focus on the BPO.
 Regulatory Compliance: Industry-specific regulations, such as data privacy laws, may
apply to the outsourced functions.
Key Audit Procedures - Client Company
Understanding Outsourced Processes:
 Map outsourced functions and identify key performance indicators.
 Review contracts with the BPO, including service level agreements (SLAs).
Assessing Risks and Controls:
 Obtain and evaluate SOC reports or test controls directly if no report is available.
 Conduct site visits to the BPO when possible.
 Engage with BPO management about their control measures.
Testing Transactions and Data:
 Sample and evaluate transactions impacting the client’s financial statements.
 Use analytical procedures to compare actual performance with expectations and verify
data integrity between client and BPO.
Substantive Procedures:
 Confirm balances with the BPO as needed.
 Review financial statement disclosures related to outsourcing for adequacy.
Key Audit Procedures - BPO Company
Understanding the Entity:
 Gain insight into the BPO’s operations, services, and client base.
 Assess management’s philosophy and the control environment.
Risk Assessment:
 Focus on controls relevant to transaction processing, data security, and disaster
recovery.
 Evaluate the design and effectiveness of these controls.
Information Technology (IT):
 Review IT policies and infrastructure, including access controls and data encryption.
 Test general IT controls pertinent to outsourced services.
Compliance and Vendor Management:
 Assess the BPO's regulatory compliance and understand subcontractor use.
 Review risk management practices related to vendor oversight.
Impact of Considerations on Audit Procedures
Inherent Risks:
o Client Oversight: Interview responsible personnel, review communication logs, and
assess SLA monitoring.
o Data Security: Examine contracts for data security clauses and inquire about breach
protocols.
o Third-Party Reliance: Assess how the BPO manages subcontractor risks and review
related contracts.
SOC Reports:
o For existing SOC 1 or SOC 2 reports, evaluate controls’ effectiveness and consider
any noted deficiencies.
o In absence of SOC reports, conduct direct testing of controls at the BPO.
Materiality:
o If highly material, conduct extensive transaction testing and increase reliance on
controls.
o If not highly material, limit substantive testing while ensuring adequate disclosures.
Regulatory Compliance:
o Inquire about adherence to relevant regulations, review certifications, and test
compliance controls.
FINANCIAL STATEMENTS: LAW, STANDARDS AND FRAMEWORK
1. Philippine Financial Reporting Standards (PFRS):
 Provide a complete set of policies for the preparation and presentation of
financial statement.
 Provides various aspects of financial reporting, including revenue recognition,
expenses, assets, liabilities, equity, and financial statements presentation
 When preparing their financial statements, auditors should make certain that
BPOs adhere to these standards.
 Ensures consistency and transparency in financial reporting
2. Philippine Accounting Standards (PAS):

 Outlines the procedures and pertaining to the report of financial statements
 Ensure that there are no insignificant errors or fraud in the financial
statements.
3. LAW
3.1. Data Privacy Act 2012:
 This is a law that makes sure that the companies under BPO handles their
clients with confidentiality and handles them also with security that protects
their privacy.
3.2. Special Economic Zone Act:
 Creates a beneficial environment for the operations of BPO.
3.3. Labor Laws:
 It enforces regulations on things like work hours, salary/wages, safety
standards, and even the benefits for employees in its sector.
3.4. Telecommunications and Cybercrime Laws:
 Address the technical aspects of (BPO) operations that guarantees reliable
connections via internet and combats cyber threats.
3.5. Anti-Red Tape Act:
 Simplifies the government’s processes that makes it easier for the BPO firms
to register and maybe renew as well their businesses.
AUDIT RISKS
Financial risks
 Revenue recognition - complex contracts make it hard to recognize revenue
accurately.
Impact: financial misstatements and regulatory issues.
 Cost allocation - incorrect allocation of costs between clients affects profit margins.
Impact: misleading financial results and poor decision-making.
Operational risks
 Sla compliance - failure to meet service level agreements (slas) leads to penalties.
Impact: client dissatisfaction, penalties, and loss of business.
 Business continuity - disruptions like power outages or technical failures can halt
operations.
Impact: service delays and potential client loss.
Compliance risks
 Regulatory compliance - failure to meet legal regulations (e.g., gdpr, tax laws).
Impact: fines, legal actions, and loss of trust.
 Tax compliance - mismanagement of multi-region tax obligations.
Impact: penalties and audits by tax authorities.
Technology risks
 Cybersecurity – BPO’s handle sensitive client data, making them targets for attacks.
Impact: data breaches and loss of client trust.
 Technology obsolescence - outdated systems reduce efficiency and competitiveness.
Impact: increased operational costs and client dissatisfaction.
Human capital risks
 Key talent loss - departure of skilled employees impacts service delivery.
Impact: operational inefficiencies and difficulty meeting client needs.
Brand/reputation risks
 Customer-facing services: poor service from outsourced operations can harm the
client’s brand.
Impact: loss of reputation, goodwill, and clients.
Foreign exchange and currency risk
 Currency fluctuation: changes in exchange rates during international transactions.
Impact: reduced revenues and increased costs, affecting overall profitability.
Risks mitigation strategies:
1. Internal controls: strengthen financial, operational, and it controls.
2. Regular audits: conduct internal and external audits to identify risks early.
3. Training programs: ensure staff understands risks and compliance requirements.
4. Business continuity plans: prepare for unexpected events through regular testing.
5. Technology Investments: Stay ahead with modern infrastructure and cybersecurity
measures.
COMPLIANCES
1. Business Registration and Permits:
 Securities and Exchange Commission (SEC)
 Barangay Clearance
 Mayor’s Permit/Business Permit
 Bureau of Internal Revenue (BIR) Registration
 Social Security System (SSS), Pag-IBIG Fund, and PhilHealth
2. Special Registration with PEZA
- BPO companies may choose to register with the Philippine Economic Zone
Authority (PEZA) to enjoy tax incentives, such as income tax holidays and
exemptions from certain local government taxes. Companies in PEZA-designated
areas benefit from duty-free importation of equipment and streamlined customs
procedures.
3. Labor Laws Compliance
- BPOs are subject to Philippine labor laws, as enforced by the Department of
Labor and Employment (DOLE). This includes compliance with the following:
• Employment Contracts
• Workplace Policies
• Labor Standards Compliance
4. Data Privacy and Protection
- Given the nature of BPO operations, handling sensitive data from international
clients is common. Compliance with the Data Privacy Act of 2012 (Republic Act
No. 10173) is essential, especially in ensuring the security and confidentiality of
customer information. BPOs are required to:
• Appoint a Data Protection Officer (DPO).
• Implement proper data security measures and protocols.
• Notify the National Privacy Commission (NPC) in case of data breaches.
5. Foreign Ownership and Restrictions
- While foreign investment in the Philippines is generally encouraged, foreign
equity in BPO companies must comply with the Foreign Investment Act (FIA).
Under the FIA, BPO companies can have up to 100% foreign ownership, provided
the minimum paid-up capital is US$200,000 or US$100,000 if the company
employs at least 50 Filipino workers.
6. Taxation
- BPO companies are subject to taxation under the Tax Reform for Acceleration and
Inclusion (TRAIN) Law. However, BPOs registered with PEZA may benefit from
preferential tax rates. Key taxes include:
• Corporate Income Tax (CIT)
• Value-Added Tax (VAT)
7. Intellectual Property Rights
- BPO companies engaged in software development or creative services should
consider registering their intellectual property with the Intellectual Property Office
of the Philippines (IPOPHL). This helps protect proprietary systems, software,
and brand identity from infringement.
8. Immigration and Employment of Foreign Workers
- For foreign nationals employed in managerial or technical roles, it is necessary to
obtain the following:
• Alien Employment Permit (AEP) from the DOLE.
• 9G Working Visa from the Bureau of Immigration (BI), allowing foreign
nationals to work legally in the Philippines.
BPO CASE STUDY
INTRODUCTION
Company Overview
Outsourcing Inc. is a company that aims to enhance the people’s quality of life around the
globe through eradicating working conditions inequalities and enabling motivating work
environments (Outsourcing Inc., 2020). Primarily located in Tokyo, Japan and established in
January 1997, the company now has 227 consolidated companies within 38 countries around
the world. The company operates in within the area of labor management, staffing, and
outsourcing industries. Its services includes a wide range of clients across various sectors;
and has built a reputation for organizing workforce solutions and improving efficiency for its
clients (Outsourcing Inc., 2020).
Purpose of the Study
This case study aims to analyze the revenue and expense overstatements discovered at
Outsourcing Inc. between 2019 and 2022. The objective is to explore how these financial
discrepancies had an impact to Outsourcing Inc.’s financial reporting.
BACKGROUND
Internal Probes
Outsourcing Inc., a service providing company has become the focus of financial scandal in
respond to the results of internal investigations for fraudulent financial reporting across
multiple business units from year 2019 to 2022. The leaders of the company abused authority
and skipped reviewing reports that resulted misreporting of both revenues and expenses over
several years. The internal accounting fraud resulted in over $150 million in losses to banks
and businesses. This significantly affected stakeholders and damaged the company’s financial
reputation (Surroy, 2023; Villanueva, 2023).
The company stated two primary issues that prompted these probes. First, there has been a
mismanagement of employment subsidy applications. Some of the company’s staffs prepared
documents on behalf of others in response to the difficulties in collecting the required
documentation. Second, the company engaged in questionable dealings with recruitment
media firms, bypassing its usual approval protocols for contract signings (Surroy, 2023).
As the revealed in the probes, there occurs internal controls and corporate governance
weaknesses in the Outsourcing Inc. that allowed the fraudulent activities to go undetected for
years. In response, the company has acknowledged its governance failures and committed to
corrective measures. (Surroy, 2023).
Accounting Standards and Regulations
Accounting standards are a set of procedures and measures that inform how a certain
company should conduct their accounting activities. In the case of Outsourcing Inc.’s revenue
and expense overstatement date from year 2019-2022, the company must adhere to certain
standards and principles.
Some of these standards and regulations are the IAS 1- Presentation of Financial Statement—
Outsourcing Inc. shall adhere to this standard and present a true and fair view due to the
overstatement of expenses. Outsourcing Inc. must adhere to IAS 8- Accounting Policies,
Changes in Accounting Estimates and Error as well as any intentional misstatements or
failure to correct prior errors related to expense reporting could lead to non-compliance.
Moreover, the IAS 10 - Events After the Reporting Period must also be adhered by the
company. If the company failed to disclose relevant information related to the overstatement
that arose after the reporting period, they would be liable hence they must also abide to this
standard.
Furthermore, beyond IFRS, the Outsourcing Inc.’s actions breach ethical standards and
principles of corporate governance, especially there was intent to mislead stakeholders.
Hence, GAAP’s Ethical Standards and Internal Controls must also be adhered by Outsource
Inc.
Internal Controls
There are significant weaknesses in Outsourcing Inc.'s internal control systems. The lack of
proper checks and balances allowed the company to manipulate financial data without
oversight. The breakdown of the company’s governance led to the financial misstatements
that spanned for several years. (Surroy, 2023).
ANALYSIS
The case of Outsourcing Inc. showed their techniques for revenue overstatement and expense
understatement. One strategy was premature revenue recognition, where the company
recognized revenue before the sales are completed. Services were not fully rendered yet the
revenue has been recorded already. This technique distorted profits and financial ratios, and
artificially boosted the business's financial profile.
Additionally, the company engaged in recording fictitious sales through channel stuffing.
This is a deceptive technique to artificially inflate sales by encouraging clients to avail
excessive amounts of a company’s products or services is beyond their immediate needs or
market demand. In the case of Outsourcing Inc., this strategy misled stakeholders about the
company's true financial health and created excess inventory. This in return, complicated the
financial reporting and adversely affected inventory turnover ratios.
These techniques posed certain implications to the company. There has been a higher than
actual revenue growth during the years 2019–2022—with this, the weaknesses of the
company’s core operations has been masked. In addition, there has been enhanced gross
profit margins. This was due to the overstating revenue without the corresponding increase in
cost of goods sold. Lastly, the techniques done by the Outsourcing Inc. boosted earnings per
share. Through this revenue manipulation, the company appeared more profitable and stable
than it actually was.
Correspondingly, Outsourcing Inc. utilized strategies for Expense Understatement. The
company delayed expense recognition to present a healthier financial look of the company
and present an artificial inflating of net income. This technique also provided misinformation
to the investors and clients regarding the financial health. Moreover, the company capitalized
expenses which should have been recognized immediately. Outsourcing Inc., have distorted
cash flow statements and created an inaccurate impression of its cash-generating ability.
With these, the Profitability and Financial Position of Outsourcing Inc. has been affected. By
understating expenses, the company reported inflated profit margins. This created a
misleading outlook of operational efficiency. Moreover, the company’s liquidity position
appeared more favorable than it actually was. Delaying expenses artificially improved the
company’s cash flow and working capital. Lastly, not recognizing expenses properly makes
the company’s debt-to-equity ratios looked well than they actually were.
The key findings highlighted failures in internal control systems, especially within the
business operations unit where the director in charge disabled critical oversight mechanisms.
Moreover, the investigations exposed a broader organizational issue: a culture that prioritized
growth targets over compliance, leading to pressure on managers to falsify performance
results. The board of directors failed to adequately assess the feasibility of growth targets and
ignored red flags related to underperformance or inflated results. Additionally, the company
had insufficient staffing in its accounting department, limiting its ability to verify the
accuracy of financial statements across subsidiaries.
As a result of these probes, Outsourcing Inc. faced significant consequences, including a 40%
reduction in reported net income for 2020. The (Tokyo Stock Exchange) TSE required the
company to submit an improvement plan and publicly announce its corrective measures to
restore transparency and investor confidence. This case emphasizes the critical importance of
robust internal controls and corporate governance to prevent such incidents from
undermining financial reporting integrity and stakeholder trust (Outsource Accelerator)(JPX).
AUDIT ASSERTIONS
1. Existence
- Assertion: The assets, liabilities, and equity reported in the financial statements
exist at the reporting date.
- Implication: The internal probes revealed issues like fictitious sales and inflated
revenue figures. This raises questions about whether reported revenues genuinely
reflect actual sales or if they were fabricated, which could mislead stakeholders
regarding the company's financial standing.
2. Completeness
- Assertion: All transactions and events that should be recorded in the financial
statements are included.
- Implication: Outsourcing Inc.'s practice of premature revenue recognition and
delayed expense recognition may result in incomplete reporting. The probes
indicated that certain liabilities and expenses were understated, leading to an
incomplete view of the company's financial position
3. Valuation
- Assertion: Assets, liabilities, and equity are recorded at appropriate amounts, and
any estimates made are reasonable.
- Implication: The irregularities discovered, such as channel stuffing and the
improper capitalization of expenses, indicate that the valuation of inventory and
expenses may not be accurate. This affects the overall financial health assessment
of the company.
4. Rights and Obligations
- Assertion: The company has rights to its reported assets and obligations to its
liabilities.
- Implication: The inflated sales figures through channel stuffing could lead to
misconceptions about inventory rights, as excess inventory may not reflect true
ownership. The company might not have the legitimate obligation to report certain
sales if they are artificially inflated.
5. Presentation and Disclosure
- Assertion: The financial statements are presented in accordance with the
applicable financial reporting framework and adequately disclose all necessary
information.
- Implication: Given the findings from the internal probes, it is likely that
Outsourcing Inc. failed to adequately disclose the extent of its accounting
practices. This lack of transparency can mislead investors and other stakeholders
regarding the company’s actual financial performance and position.
6. Accuracy
- Assertion: Amounts and other data relating to recorded transactions and events
have been recorded accurately.
- Implication: The manipulation of revenue and expenses suggests that the accuracy
assertion is compromised. The discrepancies found during the internal probes
illustrate that the financial records may not be reflective of actual operations.
The audit assertions highlighted above underscore the importance of maintaining robust
internal controls and ethical financial reporting practices. Outsourcing Inc.'s internal probes
exposed significant deficiencies that must be addressed to restore stakeholder trust and ensure
compliance with accounting standards. Enhancing transparency and accuracy in financial
reporting will be crucial for the company's recovery and future operations.
RECOMMENDED SOLUTIONS
 Adopt Accurate Revenue Recognition: Outsourcing Inc. should adhere to IFRS 15
standards, recognizing revenue only when performance obligations are satisfied. This
ensures transparency and avoids premature revenue reporting.
 Follow the Matching Principle for Expenses: Expenses should be recognized in the
same period as the revenue they generate to provide a true reflection of profitability
and prevent artificial net income inflation.
 Strengthen Internal Controls: The company should implement stricter internal
controls around revenue and expense recognition to prevent future financial
misstatements. This includes regularly reviewing financial transactions and engaging
internal auditors.
 Conduct Forensic Audits: Engaging external auditors to perform forensic audits can
help detect and rectify past misstatements and prevent future occurrences.
 Enhance Financial Disclosure: To regain stakeholder trust, Outsourcing Inc. should
provide clear and transparent financial disclosures, correcting prior misrepresentations
and highlighting corrective actions taken.
 Legal Compliance: Ensuring compliance with relevant accounting standards and
laws (e.g., ISA and IFRS) is critical to avoid future legal liabilities and restore market
confidence.
Concentrix Corporation
Financial Statements
For the year end November 30, 2023
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting,
as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended. Our internal
control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with U.S. generally
accepted accounting principles. Our internal control over financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of ours are being made only in accordance with authorizations of management and
directors; and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of our assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Under the supervision and with the participation of our management, including our principal executive officer and
principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial
reporting based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission. Our evaluation of internal control over financial
reporting did not include internal controls of Webhelp, which we acquired during the fourth quarter of fiscal year
2023. The acquired Webhelp operations represented 48.7% of our total assets (of which 33.3% represented
goodwill and intangible assets included within the scope of the assessment) and 8.1% of our total revenue as of and
for the fiscal year ended November 30, 2023. We have included the financial results of the acquired operations in
the consolidated financial statements from the date of acquisition. Based on this assessment, our management has
concluded that, as of November 30, 2023, our internal control over financial reporting was effective at the
reasonable assurance level based on those criteria.
The effectiveness of our internal control over financial reporting as of November 30, 2023 has been audited by
KPMG LLP, an independent registered public accounting firm, as stated in their report which appears beginning on
the following page of this Annual Report on Form 10-K.
Report of Independent Registered Public Accounting Firm
To the Stockholders and Board of Directors

Concentrix Corporation:
Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheets of Concentrix Corporation and subsidiaries (the
Company) as of November 30, 2023 and 2022, the related consolidated statements of operations,
comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended
November 30,
2023, and the related notes and financial statement Schedule II - Valuation and Qualifying Accounts (collectively,
the consolidated financial statements). We also have audited the Company’s internal control over financial
reporting as of November 30, 2023, based on criteria established in Internal Control – Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of the Company as of November 30, 2023 and 2022, and the results of its operations and its cash
flows for each of the years in the three-year period ended November 30, 2023, in conformity with U.S. generally
accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective
internal control over financial reporting as of November 30, 2023 based on criteria established in Internal Control –
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
The Company acquired Webhelp during fiscal year 2023, and management excluded from its assessment of the
effectiveness of the Company’s internal control over financial reporting as of November 30, 2023, Webhelp’s
internal control over financial reporting associated with total assets of 48.7% (of which 33.3% represented goodwill
and intangible assets included within the scope of the assessment) and total revenue of 8.1% included in the
consolidated financial statements of the Company as of and for the year ended November 30, 2023. Our audit of
internal control over financial reporting of the Company also excluded an evaluation of the internal control over
financial reporting of Webhelp.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective
internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial
reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our
responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the
Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered
with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of
material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting
was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements. Our audit of internal control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our
audits also included performing such other procedures as we considered necessary in the circumstances. We believe
that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated
financial statements that were communicated or required to be communicated to the audit committee and that: (1)
relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our
especially challenging, subjective, or complex judgments. The communication of critical audit matters does not
alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the
accounts or disclosures to which they relate.
Fair value of acquired intangible assets
As discussed in Note 3 to the consolidated financial statements, on September 25, 2023, the Company acquired
Webhelp in a transaction accounted for as a business combination. As a result of the transaction, the Company
recognized an acquired customer relationships intangible asset associated with the generation of future income
from Webhelp’s existing customers. The acquisition-date fair value of the customer relationships intangible
asset was $1,882 million.
We identified the evaluation of the acquisition-date fair value of the customer relationships intangible asset as a
critical audit matter. A high degree of subjective auditor judgment was required to evaluate the key
assumptions within the discounted cash flows model used to estimate the acquisition-date fair value of the
customer relationships intangible asset, specifically the revenue growth rate, margin, attrition rate, and discount
rate.
There was limited observable market information related to these assumptions and the estimated acquisition-
date fair value of the customer relationships intangible asset was sensitive to minor changes in such
amounts. Additionally, the audit effort associated with the estimate required specialized skills and
knowledge.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the
design and tested the operating effectiveness of certain internal controls related to the Company’s acquisition-
date valuation process, including controls over the key assumptions noted above. We evaluated the Company’s
revenue growth rate and margin assumptions by comparing them to Webhelp’s pre-acquisition budget and the
Company’s historical financial results. We evaluated the projected attrition rate assumption by comparing it to
historical attrition experienced by Webhelp and to the attrition rate assumption used in previous acquisitions
made by the Company. We involved valuation professionals with specialized skills and knowledge who
assisted in:
• evaluating the discount rate used by comparing it to a discount rate that was developed using
publicly available market data for comparable entities
• comparing the revenue growth rate, margin, and attrition rate to those of comparable entities
• validating the mathematical accuracy of the Company’s calculations to determine the discount rate
and attrition rate
Sufficiency of audit evidence over revenue
As discussed in Notes 2 and 10 to the consolidated financial statements, and presented in the consolidated
statement of operations, the Company reported revenue of $7,115 million for the fiscal year ended November
30, 2023. Revenue is generated primarily from the provision of Customer Experience solutions and technology
to its clients. The Company recognizes revenue from contracts, and accounts for a contract with a client, when
it has written approval, the contract is committed, the rights of the parties, including payment terms, are
identified, the contract has commercial substance, and consideration is probable of collection. The Company
operates in over 70 countries across six continents, with significant concentrations in the Philippines, India,
Brazil, the United States, Turkey, Colombia, Egypt, the United Kingdom, Morocco, China, and elsewhere
throughout EMEA, Latin America, and Asia-Pacific.
We identified the evaluation of the sufficiency of audit evidence over revenue as a critical audit matter.
Evaluating the sufficiency of audit evidence obtained required especially subjective auditor judgment because
of the geographical dispersion of the Company’s revenue generating activities. This included determining the
locations for which procedures were performed and evaluating the evidence obtained over revenue.
The following are the primary procedures we performed to address this critical audit matter. We applied auditor
judgment to determine the nature and extent of procedures to be performed over revenue, including the
determination of the locations at which those procedures were performed. For each location for which
procedures were performed, we, where applicable, evaluated the design and tested the operating effectiveness
of certain internal controls related to the revenue process, including controls related to the appropriate
recording of revenue. For a sample of transactions, we compared the amounts recognized as revenue for
consistency with relevant underlying documentation, including contracts and other third-party evidence. We
evaluated the sufficiency of the audit evidence obtained over revenue by assessing the results of the procedures
performed, including the appropriateness of the nature and extent of such evidence.
/s/ KPMG LLP
We have served as the Company’s auditor since
2019. Cincinnati, Ohio

January 29, 2024
CONCENTRIX CORPORATION
CONSOLIDATED BALANCE SHEETS
(currency and share amounts in thousands, except par value)
November 30, 2023 November 30, 2022

ASSETS
Current assets:
Cash and cash equivalents $ 295,336 $ 145,382
Accounts receivable, net 1,888,890 1,390,474
Other current assets 674,423 218,476
Total current assets 2,858,649 1,754,332
Property and equipment, net 748,691 403,829
Goodwill 5,078,668 2,904,402
Intangible assets, net 2,804,965 985,572
Deferred tax assets 72,333 48,541
Other assets 928,521 573,092
Total assets $ 12,491,827 $ 6,669,768
LIABILITIES AND EQUITY

Current liabilities:
Accounts payable $ 243,565 $ 161,190
Current portion of long-term debt 2,313 —
Accrued compensation and benefits 731,172 506,966
Other accrued liabilities 1,016,406 395,304
Income taxes payable 80,583 68,663
Total current liabilities 2,074,039 1,132,123
Long-term debt, net 4,939,712 2,224,288
Other long-term liabilities 920,536 511,995
Deferred tax liabilities 414,246 105,458
Total liabilities 8,348,533 3,973,864
Commitments and contingencies (Note 14)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 10,000 shares authorized and no shares issued and
outstanding as of November 30, 2023 and 2022, respectively — —
Common stock, $0.0001 par value, 250,000 shares authorized; 67,883 and 52,367 shares
issued as of November 30, 2023 and 2022, respectively, and 65,734 and 51,096 shares
outstanding as of November 30, 2023 and 2022, respectively 7 5
Additional paid-in capital 3,582,521 2,428,313
Treasury stock, 2,149 and 1,271 shares as of November 30, 2023 and 2022, respectively (271,968) (190,779)
Retained earnings 1,024,461 774,114
Accumulated other comprehensive loss (191,727) (315,749)
Total stockholders’ equity 4,143,294 2,695,904
Total liabilities and stockholders’ equity $ 12,491,827 $ 6,669,768
The accompanying notes are an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
(currency and share amounts in thousands, except per share amounts)
Fiscal Years Ended November 30,

2023 2022 2021
Revenue $ 7,114,706 $ 6,324,473 $ 5,587,015
Cost of revenue 4,536,771 4,067,210 3,617,527
Gross profit 2,577,935 2,257,263 1,969,488
Selling, general and administrative expenses 1,916,608 1,617,071 1,397,091
Operating income 661,327 640,192 572,397
Interest expense and finance charges, net 201,004 70,076 23,046
Other expense (income), net 52,095 (34,887) (6,345)
Income before income taxes 408,228 605,003 555,696
Provision for income taxes 94,386 169,363 150,119
Net income before non-controlling interest 313,842 435,640 405,577
Less: Net income attributable to non-controlling interest — 591 —
Net income attributable to Concentrix Corporation $ 313,842 $ 435,049 $ 405,577
Earnings per common share:

Basic $ 5.72 $ 8.34 $ 7.78
Diluted $ 5.70 $ 8.28 $ 7.70
Weighted-average common shares outstanding:
Basic 53,801 51,353 51,355
Diluted 54,010 51,740 51,914
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(currency in thousands)

2023 2022 2021
Net income before non-controlling interest $ 313,842 $ 435,640 $ 405,577
Other comprehensive income (loss):
Unrealized gains (losses) of defined benefit plans, net of taxes of $(894),
$(4,329), and $(2,761) for fiscal years ended November 30, 2023, 2022 and
2021, respectively (2,800) 14,274 15,839
Unrealized gains (losses) on hedges during the period, net of taxes of
$(4,938), $15,427, and $2,709 for fiscal years ended November 30, 2023,
2022 and 2021, respectively 10,610 (45,464) (8,396)
Reclassification of net (gains) losses on hedges to net income, net of taxes of
$(4,594), $(9,276), and $7,498 for fiscal years ended November 30, 2023,
2022 and 2021, respectively 13,793 26,953 (22,246)
Total change in unrealized gains (losses) on hedges, net of taxes 24,403 (18,511) (30,642)
Foreign currency translation adjustments, net of taxes of $0 for fiscal years
ended November 30, 2023, 2022 and 2021, respectively 102,419 (240,986) (51,909)
Other comprehensive income (loss) 124,022 (245,223) (66,712)
Comprehensive income 437,864 190,417 338,865
Less: Comprehensive income attributable to non-controlling interest — 591 —
Comprehensive income attributable to Concentrix Corporation $ 437,864 $ 189,826 $ 338,865
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(currency and share amounts in thousands)
Concentrix Corporation Stockholders’ Equity
Common Stock Treasury stock

Redeemable
Former Accumulated
non- Additional parent other

controlling paid-in Retained company comprehensive
interest Shares Amount capital Shares Amount earnings investment income (loss) Total
Balances, November 30,
2020 $ — — $ — $ — — $ — $ — $ 2,305,899 $ (3,814) $ 2,302,085
Other comprehensive loss — — — — — — — — (66,712) (66,712)
Reclassification of net
former parent investment
in Concentrix — — — 2,305,899 — — — (2,305,899) — —
Issuance of common
stock at separation and
spin-off — 51,135 5 (5) — — — — — —
Share-based
compensation activity — 459 — 49,873 — — — — — 49,873
Repurchase of common
stock for tax withholdings
on equity awards — — — — 195 (32,390) — — — (32,390)
stock — — — — 138 (25,096) — — — (25,096)
Dividends — — — — — — (13,082) — — (13,082)
Net income — — — — — — 405,577 — — 405,577
2021 — 51,594 5 2,355,767 333 (57,486) 392,495 — (70,526) 2,620,255
Other comprehensive loss — — — — — — — — (245,223) (245,223)
Equity awards issued
as acquisition
purchase consideration — — — 15,725 — — — — — 15,725
Acquisition of non-
controlling interest
in subsidiary 2,000 — — — — — — — — —
Net income attributable to
non-controlling interest 591 — — — — — — — — —
Purchase of non-
controlling interest
in subsidiary (2,591) — — 91 — — — — — 91
Share-based
on equity awards — — — — 96 (12,474) — — — (12,474)
stock — — — — 842 (120,819) — — — (120,819)
Dividends — — — — — — (53,430) — — (53,430)
Net income — — — — — — 435,049 — — 435,049
2022 — 52,367 5 2,428,313 1,271 (190,779) 774,114 — (315,749) 2,695,904
Other comprehensive
income — — — — — — — — 124,022 124,022
Common stock issued
as acquisition purchase
consideration — 14,862 2 1,084,894 — — — — — 1,084,896
Share-based
on equity awards — — — — 169 (17,231) — — — (17,231)
stock — — — — 709 (63,958) — — — (63,958)
Dividends — — — — — — (63,495) — — (63,495)
Net income — — — — — — 313,842 — — 313,842
2023 $ — 67,883 $ 7 $ 3,582,521 2,149 $ (271,968) $ 1,024,461 $ — $ (191,727) $ 4,143,294
CONSOLIDATED STATEMENTS OF CASH
FLOWS

2023 2022 2021
Cash flows from operating activities:
Net income before non-controlling interest $ 313,842 $ 435,640 $ 405,577
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 173,463 146,864 140,236
Amortization 214,832 162,673 136,939
Non-cash share-based compensation 62,113 47,142 36,176
Provision for doubtful accounts 10,236 3,329 (202)
Deferred income taxes (121,711) (30,824) (25,729)
Unrealized foreign exchange loss (gain) — 374 (305)
Loss on call options 14,629 — —
Amortization of debt issuance costs 6,089 1,771 1,653
Pension and other post-retirement benefit costs 11,328 9,437 13,427
Pension and other post-retirement plan contributions (12,143) (12,776) (14,563)
Gain on divestitures and related transaction costs — — (13,197)
Change in acquisition contingent consideration 15,681 — —
Other 306 537 140
Changes in operating assets and liabilities:
Accounts receivable, net (45,895) (53,129) (139,104)
Payable to former parent — — (22,825)
Accounts payable 9,341 14,626 (4,546)
Other operating assets and liabilities 25,897 (124,944) 501
Net cash provided by operating activities 678,008 600,720 514,178
Cash flows from investing activities:
Purchases of property and equipment (180,532) (140,018) (149,079)
Premiums paid for call options (14,629) — —
Acquisitions of business, net of cash and restricted cash acquired (1,914,079) (1,698,261) (3,279)
Proceeds from divestitures, net of cash sold — — 73,708
Other investments — (1,000) —
Net cash used in investing activities (2,109,240) (1,839,279) (78,650)
Cash flows from financing activities:
Proceeds from the Restated Credit Facility - Term Loan 294,702 — —
Repayments of the Restated Credit Facility - Term Loan (194,702) — —
Proceeds from the Prior Credit Facility - Term Loan — 2,100,000 —
Repayments of the Prior Credit Facility - Term Loan (25,000) (225,000) —
Repayments of the original credit facility - original term loan — (700,000) (200,000)
Proceeds from the Securitization Facility 1,964,000 1,831,000 1,316,000
Repayments of the Securitization Facility (2,192,000) (1,579,500) (1,461,000)
Proceeds from the issuance of Senior Notes 2,136,987 — —
Cash paid for debt issuance costs (30,519) (9,331) —
Purchase of non-controlling interest in subsidiary — (2,500) —
Cash paid for acquired earnout liabilities (13,309) — —
Proceeds from exercise of stock options 7,201 9,588 13,697
Repurchase of common stock for tax withholdings on equity awards (17,231) (12,474) (32,390)
Repurchase of common stock (63,958) (120,819) (25,096)
Dividends paid (63,495) (53,430) (13,082)
Net cash provided by (used in) financing activities 1,802,676 1,237,534 (401,871)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (12,420) (24,522) (6,998)
Net increase (decrease) in cash, cash equivalents and restricted cash 359,024 (25,547) 26,659
Cash, cash equivalents and restricted cash at beginning of year 157,463 183,010 156,351
Cash, cash equivalents and restricted cash at end of year $ 516,487 $ 157,463 $ 183,010
CONSOLIDATED STATEMENTS OF CASH
FLOWS
2023 2022 2021
Supplemental disclosures of cash flow information:
Interest paid on borrowings $ 142,598 $ 67,601 $ 20,775
Income taxes paid $ 217,252 $ 143,865 $ 159,826
Supplemental disclosure of non-cash investing activities:
Accrued costs for property and equipment purchases $ 26,374 $ 12,675 $ 16,251
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(currency and share amounts in thousands, except per share amounts)
NOTE 1—BACKGROUND AND BASIS OF PRESENTATION:
Background
Concentrix Corporation (“Concentrix,” the “CX business” or the “Company”) is a leading global provider of
Customer Experience (“CX”) solutions and technology that help iconic and disruptive brands drive deep
understanding, full lifecycle engagement, and differentiated experiences for their end-customers around the world.
The Company provides end-to-end capabilities, including 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, retail,
travel and e-commerce, communications and media, banking, financial services and insurance, and healthcare.
On December 1, 2020, Concentrix and the CX business were separated from SYNNEX Corporation, now
known as TD SYNNEX Corporation (“TD SYNNEX” or the “former parent”), through a tax-free distribution of all
of the issued and outstanding shares of the Company’s common stock to TD SYNNEX stockholders (such
separation and distribution, the “spin-off”). As a result of the spin-off, the Company became an independent public
company and the Company’s common stock commenced trading on the Nasdaq Stock Market (“Nasdaq”) under
the symbol “CNXC” on December 1, 2020.
Basis of presentation (including principles of consolidation)
The accompanying consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America (“GAAP”) and include the accounts of the
Company, its majority-owned subsidiaries and entities over which the Company has control. All intercompany
balances and transactions have been eliminated in consolidation.
Reclassifications
Certain amounts in the consolidated financial statements related to the prior years have been reclassified to
conform to the current year’s presentation.
NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Use of estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the
reporting period. The Company evaluates these estimates on a regular basis and bases them on historical experience
and on various assumptions that the Company believes are reasonable. Actual results could differ from the
estimates.
Segment reporting
Concentrix operations are based on an integrated global delivery model whereby services under a client
contract in one location may be provided from delivery centers located in one or more different countries, with a
significant portion of the Company’s workforce located in the Philippines and India. Given the homogeneity of
technology- infused CX services and the integrated delivery model, the Company operates in a single segment,
based on how the chief operating decision maker (“CODM”) views and evaluates the Company’s operations in
making operational
and strategic decisions and assessments of financial performance. The Company’s President and Chief Executive
Officer has been identified as the CODM.
Cash equivalents
The Company considers all highly liquid debt instruments purchased with an original maturity or remaining
maturity at the date of purchase of three months or less to be cash equivalents. Cash equivalents consist principally
of money market deposit accounts that are stated at cost, which approximates fair value. The Company is exposed
to credit risk in the event of default by financial institutions to the extent that cash balances with financial
institutions are in excess of amounts that are insured.
Accounts receivable and allowance for doubtful accounts
Accounts receivable are comprised primarily of amounts owed to the Company by clients and are presented net
of an allowance for doubtful accounts. The allowance for doubtful accounts is an estimate to cover the losses
resulting from uncertainty regarding collections from customers to make payments for outstanding balances. In
estimating the required allowance, the Company considers the overall quality and aging of the accounts receivable
and credit evaluations of its clients’ financial condition. The Company also evaluates the collectability of accounts
receivable based on specific client circumstances, current economic trends, historical experience with collections
and the value and adequacy of any collateral received from clients.
Unbilled receivables
For the majority of service contracts, the Company performs the services prior to billing the client, and this
amount is captured as an unbilled receivable included in accounts receivable, net on the consolidated balance sheet.
Billing usually occurs in the month after the Company performs the services or in accordance with the specific
contractual provisions.
Accounts receivable factoring
Following the combination with Webhelp (as further described in Note 3), the Company has continued
Webhelp’s pre-existing factoring program with certain clients to sell accounts receivable under non-recourse
agreements in exchange for cash proceeds.
Since the acquisition date through November 30, 2023, the Company sold $312,894 of receivables under these
agreements. In some instances, the Company may continue to service the transferred receivables after factoring has
occurred. However, any servicing of the trade receivable does not constitute significant continuing involvement and
the Company does not carry any material servicing assets or liabilities.
Derivative financial instruments
The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value.
For derivative instruments that hedge the exposure to variability in expected future cash flows that are
designated as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of
“Accumulated other comprehensive income (loss),” in stockholders’ equity and reclassified into earnings in the
same line associated with the forecasted transactions, in the same period or periods during which the hedged
transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in
offsetting changes to expected future cash flows on hedged transactions.
For derivative instruments that are not designated as cash flow hedges, gains and losses on derivative
instruments are reported in the consolidated statements of operations in the current period.
Software costs
The Company develops software platforms for internal use. The Company capitalizes costs incurred to develop
software subsequent to the software product reaching the application development stage. The Company also
capitalizes the costs incurred to extend the life of existing software, or the cost of significant enhancements that are
added to the features of existing software. The capitalized development costs primarily comprise payroll costs and
related software costs. Capitalized costs are amortized over the economic life of the software using the straight line
method.
Property and equipment
Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and
amortization are computed using the straight line method based upon the shorter of the estimated useful lives of the
assets, or the lease term of the respective assets, if applicable. Maintenance and repairs are charged to expense as
incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and
accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is
reflected in operations in the period realized. The ranges of estimated useful lives for property and equipment
categories are as follows:
Equipment and furniture 3 - 10 years

Software 3 - 7 years
Leasehold improvements 2 - 15 years
Buildings and building improvements 10 - 39 years
Leases
The Company enters into leases as a lessee for property and equipment in the ordinary course of business.
When procuring services, or upon entering into a contract with its clients, the Company determines whether an
arrangement contains a lease at its inception. As part of that evaluation, the Company considers whether there is an
implicitly or explicitly identified asset in the arrangement and whether the Company, as the lessee, or the client, if
the Company is the lessor, has the right to control the use of that asset. When the Company is the lessee, all leases
with a term of more than 12 months are recognized as right-of-use (“ROU”) assets and associated lease liabilities in
the consolidated balance sheet. Lease liabilities are measured at the lease commencement date and determined using
the present value of the lease payments not yet paid, at the Company’s incremental borrowing rate, which
approximates the rate at which the Company would borrow on a secured basis in the country where the lease was
executed. The interest rate implicit in the lease is generally not determinable in the transactions where the Company
is the lessee. The ROU asset equals the lease liability adjusted for any initial direct costs, prepaid rent and lease
incentives. The Company’s variable lease payments generally relate to payments tied to various indexes, non-lease
components and payments above a contractual minimum fixed amount.
Operating leases are included in other assets, net, other accrued liabilities and other long-term liabilities in the
consolidated balance sheet. Substantially all of the Company’s leases are classified as operating leases. The
Company recognizes options to extend or terminate the lease when it is reasonably certain that the Company will
exercise that option. The Company made a policy election to not recognize leases with a lease term of 12 months or
less in the consolidated balance sheet. Lease expenses are recorded within selling, general, and administrative
expenses in the consolidated statements of operations. Operating lease payments are presented within “Cash flows
from operating activities” in the consolidated statements of cash flows.
For all asset classes, the Company has elected the lessee practical expedient to combine lease and non-lease
components (e.g., maintenance services) and account for the consolidated unit as a single lease component.
Variable lease payments are recognized in the periods in which the obligations for those payments are incurred.
Business combinations
The purchase price of a business combination is allocated to the assets acquired, liabilities assumed, and non-
controlling interests in the acquired entity generally based on their fair values at the acquisition date. The excess of
the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed and non-
controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include
the value of the synergies between the acquired entity and the Company and the value of the acquired assembled
workforce, neither of which qualify for recognition as an intangible asset. Amounts recorded in a business
combination may change during the measurement period, which is a period not to exceed one year from the date of
acquisition, as additional information about conditions existing at the acquisition date becomes available. The
Company includes the results of operations of the acquired business in the consolidated financial statements
prospectively from the date of acquisition. Acquisition-related charges are recognized separately from the business
combination and are expensed as incurred. These charges primarily include direct third-party professional and legal
fees and integration-related costs.
Goodwill and intangible assets
The Company tests goodwill for impairment annually at the reporting unit level in the fiscal fourth quarter or
more frequently if events or changes in circumstances indicate that it may be impaired. For purposes of the
goodwill impairment test, the Company can elect to perform a quantitative or qualitative analysis. If the qualitative
analysis is elected, goodwill is tested for impairment at the reporting unit level by first performing a qualitative
assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its
carrying value.
The factors that are considered in the qualitative analysis include: macroeconomic conditions; industry and market
considerations; cost factors such as increases in labor, or other costs that would have a negative effect on earnings
and cash flows; and other relevant entity-specific events and information.
If the Company elects to perform or is required to perform a quantitative analysis, then the reporting unit’s
carrying value is compared to its fair value. As part of this analysis, the Company reconciles the fair value of its
reporting unit to its market capitalization. Goodwill is considered impaired if the carrying value of the reporting unit
exceeds its fair value and the excess is recognized as an impairment loss.
No goodwill impairment has been identified for any of the fiscal years presented in these consolidated financial
statements.
The values assigned to intangible assets are based on estimates and judgment regarding expectations for the
length of customer relationships and the success of the life cycle of technologies acquired in a business
combination. Purchased intangible assets are amortized over the useful lives based on estimates of the use of the
economic benefit of the asset or by using the straight line method.
Intangible assets consist of customer relationships, technology, trade names and non-compete agreements.
Amortization is based on the pattern over which the economic benefits of the intangible assets will be consumed or,
when the consumption pattern is not apparent, by using the straight line method over the following useful lives:
Customer relationships 10 - 15 years

Technology 5 years
Trade names 3 - 5 years
Non-compete agreements 3 years
Impairment of long-lived assets
The Company reviews the recoverability of its long-lived assets, such as intangible assets subject to
amortization, property and equipment and certain other assets, including lease right-of-use assets, when events or
changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable.
The assessment of possible impairment is based on the Company’s ability to recover the carrying value of the asset
or asset group from the expected future pre-tax cash flows, undiscounted and without interest charges, of the related
operations. If these cash flows are less than the carrying value of such assets, an impairment loss is recognized for
the difference between estimated fair value and carrying value.
Concentration of credit risk
Financial instruments that potentially subject the Company to significant concentration of credit risk consist
principally of cash and cash equivalents, accounts receivable and derivative instruments.
The Company’s cash and cash equivalents and derivative instruments are transacted and maintained with
financial institutions with high credit standing, and their compositions and maturities are regularly monitored by
management. Through November 30, 2023, the Company has not experienced any credit losses on such deposits
and derivative instruments.
Accounts receivable comprise amounts due from clients. The Company performs ongoing credit evaluations of
its clients’ financial condition and limits the amount of credit extended when deemed necessary, but generally
requires no collateral. The Company also maintains allowances for potential credit losses. In estimating the required
allowances, the Company takes into consideration the overall quality and aging of its receivable portfolio and
specifically identified client risks.
In fiscal years 2023 and 2022, no client accounted for more than 10% of the Company’s consolidated revenue.
In fiscal year 2021, one client accounted for 11.9% of the Company’s consolidated revenue.
As of November 30, 2023, no client comprised more than 10% of the Company’s total accounts receivable
balance. As of November 30, 2022, one client comprised 12.4% of the Company’s total accounts receivable
balance.
Revenue recognition
The Company generates revenue primarily from the provision of CX solutions and technology to its clients.
The Company recognizes revenue from services contracts over time as the promised services are delivered to clients
for an amount that reflects the consideration to which the Company is entitled in exchange for those services. The
Company recognizes revenue over time as the client simultaneously receives and consumes the benefits provided
by the Company as the Company performs the services. The Company accounts for a contract with a client when it
has written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the
contract has commercial substance and consideration is probable of collection. Revenue is presented net of taxes
collected from clients and remitted to government authorities. The Company generally invoices a client after
performance of services, or in accordance with specific contractual provisions. Payments are due as per contract
terms and do not contain a significant financing component.
The Company determines whether the services performed during the initial phases of an arrangement, such as
setup activities, are distinct. In most cases, the arrangement is a single performance obligation comprised of a series
of distinct services that are substantially the same and that have the same pattern of transfer (i.e., distinct days of
service).
Service contracts are most significantly based on a fixed unit-price per transaction or other objective measure
of output. Revenue on unit-price transactions is recognized over time using an objective measure of output such as
staffing hours or the number of transactions processed by service advisors. Certain contracts may be based on a
fixed price. Revenue on fixed price contracts is recognized over time using an input measure or on a straight-line
basis over the term of the contract as the services are provided based on the nature of the contract. Client contract
terms can range from less than one year to more than five years.
Certain client contracts include incentive payments from the client upon achieving certain agreed-upon service
levels and performance metrics or service level agreements that could result in credits or refunds to the client.
Revenue relating to such arrangements is accounted for as variable consideration when the likely amount of
revenue to be recognized can be estimated to the extent that it is probable that a significant reversal of any
incremental revenue will not occur.
Cost of revenue
Recurring direct operating costs for services are recognized as incurred. Cost of services revenue consists
primarily of personnel costs and transition and initial set up costs.
Selling, general and administrative expenses
Selling, general and administrative expenses are charged to income as incurred. Expenses of promoting and
selling products and services are classified as selling expense and include such items as compensation, sales
commissions and travel. General and administrative expenses include such items as compensation, cost of delivery
centers, legal and professional costs, office supplies, non-income taxes, insurance and utility expenses. In addition,
selling, general and administrative expenses include other operating items such as allowances for credit losses,
depreciation and amortization of intangible assets.
Advertising
Costs related to advertising and service promotion expenditures are charged to “Selling, general and
administrative expenses” as incurred. To date, net costs related to advertising and promotion expenditures have not
been material.
Income taxes
The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets
and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of
assets and liabilities and their reported amounts in the financial statements using enacted tax rates and laws that will
be in effect when the difference is expected to reverse. Tax on global low-taxed intangible income is accounted for
as a current expense in the period in which the income is includable in a tax return using the “period cost” method.
Valuation allowances are provided against deferred tax assets that are not likely to be realized.
The Company recognizes tax benefits from uncertain tax positions only if that tax position is more likely than
not to be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax
benefits recognized in the financial statements from such positions are then measured based on the largest benefit
that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and
penalties related to unrecognized tax benefits in the provisions for income taxes.
Foreign currency translations
The functional currencies of the legal entities’ financial statements included in these consolidated financial
statements are the local currencies of the legal entities and are translated into U.S. dollars for consolidation as
follows: assets and liabilities at the exchange rate as of the balance sheet date, equity at the historical rates of
exchange, and income and expense amounts at the average exchange rate for the month. Translation adjustments
resulting from the translation of the legal entities’ accounts are included in “Accumulated other comprehensive
income (loss).” Transactions denominated in currencies other than the applicable functional currency are
converted to the functional currency at the exchange rate on the transaction date. At period end, monetary assets
and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date.
Non-monetary assets and liabilities are remeasured at historical exchange rates. Gains and losses resulting from
foreign currency transactions are included within “Other expense (income), net.”
Other comprehensive income
The primary components of other comprehensive income for the Company include foreign currency translation
adjustments arising from the Company’s foreign legal entities, unrealized gains and losses on qualifying hedges,
and changes in unrecognized pension and post-retirement benefits.
Share-based compensation
Share-based compensation cost for stock options, restricted stock awards and restricted stock units is
determined based on the fair value at the measurement date. The Company recognizes share-based compensation
cost as expense for these awards ratably on a straight-line basis over the requisite service period. Share-based
compensation for performance-based restricted stock units is measured based on fair value at the initial
measurement date and is adjusted each reporting period, as necessary, to reflect changes in management’s
assessment of the probability that performance conditions will be satisfied and, for certain awards, for changes in
the trading price of
the Company’s common stock. The Company recognizes share-based compensation cost associated with its
performance-based restricted stock units over the requisite service period if it is probable that the performance
conditions will be satisfied. The Company accounts for expense reductions that result from the forfeiture of
unvested awards in the period that the forfeitures occur.
Pension and post-retirement benefits
The funded status of the Company’s pension and other post-retirement benefit plans is recognized in the
consolidated balance sheets. The funded status is measured as the difference between the fair value of plan assets
and the benefit obligation at November 30, the measurement date. For defined benefit pension plans, the benefit
obligation is the projected benefit obligation (“PBO”) and, for the other post-retirement benefit plans, the benefit
obligation is the accumulated post-retirement benefit obligation (“APBO”). The PBO represents the actuarial
present value of benefits expected to be paid upon retirement. For active plans, the present value reflects estimated
future compensation levels. The APBO represents the actuarial present value of post-retirement benefits attributed
to employee services already rendered. The fair value of plan assets represents the current market value of assets
held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligation is
based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use
participant-specific information such as compensation, age and years of service, as well as certain key assumptions
that require significant judgment, including, but not limited to, estimates of discount rates, expected return on plan
assets, inflation, rate of compensation increases, interest crediting rates and mortality rates. The assumptions used
are reviewed on an annual basis.
Earnings per common share
Basic and diluted earnings per common share are calculated using the two-class method. The two-class method
is an earnings allocation proportional to the respective ownership among holders of common stock and participating
securities. The Company’s restricted stock awards and, effective in the fourth quarter of fiscal year 2023, restricted
stock units are considered participating securities. These restricted stock awards and units are considered
participating securities because holders have a non-forfeitable right to receive dividends. Basic earnings per
common share is computed by dividing net income attributable to the Company’s common stockholders by the
weighted-average common shares outstanding during the period. Diluted earnings per common share also
considers the dilutive effect of in-the-money stock options and non-participating securities, calculated using the
treasury stock method.
Treasury stock
Repurchases of shares of common stock are accounted for at cost and are included as a component of
stockholders’ equity in the consolidated balance sheets.
Accounting pronouncements recently adopted
In December 2019, the Financial Accounting Standards Board (the “FASB”) issued new guidance that
simplified the accounting for income taxes. The guidance was effective for annual reporting periods beginning after
December 15, 2020, and interim periods within those reporting periods. This standard became effective for the
Company in fiscal year 2022 and did not have a material impact on the consolidated financial statements.
In November 2023, the FASB issued accounting standards update (“ASU”) 2023-07, which enhances the
disclosures required for reportable segments in annual and interim consolidated financial statements. ASU 2023-
07 is effective for the Company for annual reporting periods beginning with the fiscal year ending November 30,
2025 and for interim reporting periods beginning in fiscal year 2026. Early adoption is permitted. The Company is
currently evaluating the impact that this update will have on its disclosures in the consolidated financial
statements.
In December 2023, the FASB issued ASU 2023-09, which requires enhanced income tax disclosures, including
disaggregation of information in the rate reconciliation table and disaggregated information related to income taxes
paid. The amendments in ASU 2023-09 are effective for the fiscal year ending November 30, 2026. The Company
is currently evaluating the impact that this update will have on its disclosures in the consolidated financial
statements.
No other new accounting pronouncements recently adopted or issued had or are expected to have a material
impact on the consolidated financial statements.
NOTE 3—ACQUISITIONS AND DIVESTITURES:
Webhelp Combination
Background
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”). 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, 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. Since the closing of the
Webhelp Combination, the Company has operated under the trade name “Concentrix + Webhelp” while it
transitions Webhelp operations and branding to the Concentrix name.
Preliminary purchase price consideration
The total preliminary purchase price consideration, net of cash and restricted cash acquired, for the acquisition
of Webhelp was $3,752.4 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, and cash on hand. See Note 9
—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:
Cash consideration for Shares (1) $ 529,160

Cash consideration for repayment of Webhelp debt and shareholder loan (2)
1,915,197
Total cash consideration 2,444,357
Equity consideration (3) 1,084,894
Earnout shares contingent consideration (4) 32,919
Sellers’ note consideration (5)
711,830
Total consideration transferred 4,274,000
Less: Cash and restricted cash acquired (6) 521,602
Total purchase price consideration $ 3,752,398
(1)
Represents the cash consideration paid, and to be paid, in the aggregate amount of €500,000, as adjusted in
accordance with the SPA.
(2)
Represents the cash consideration paid to repay Webhelp’s outstanding senior loan debt and shareholder loan.
(3)
Represents the issuance of 14,862 shares of common stock, par value $0.0001 per share, of Concentrix
Corporation (the “Concentrix common stock”).
(4)
Represents the contingent right for the Sellers to earn additional shares of Concentrix common stock (the
“Earnout Shares”). The estimated fair value of this contingent consideration was determined using a Monte-Carlo
simulation model. The inputs include the closing price of Concentrix common stock as of the Closing Date,
Concentrix-specific historical equity volatility, and the risk-free rate. See further details below.
(5)
Represents a promissory note issued by Concentrix Corporation in the aggregate principal amount of €700,000 to
certain Sellers. See Note 9—Borrowings for a further discussion of this promissory note.
(6)
Represents the Webhelp cash and restricted cash balance acquired at the Closing Date.
The Company granted Sellers the contingent right to earn an additional 750 shares of Concentrix common
stock if certain conditions set forth in the SPA occur, including the share price of Concentrix common stock
reaching
$170.00 per share within seven years from the closing of the Webhelp Combination (the “Closing Date”) (based
on daily volume weighted average prices measured over a specified period). Prior to the Closing Date, Concentrix
and certain Sellers entered into stock restriction agreements (the “Stock Restriction Agreements”), pursuant to
which such Sellers (the “Restricted Stock Participants”) agreed to contribute in kind to the Company, and the
Company agreed to receive, certain of the Restricted Stock Participants’ Shares in exchange for the issuance of
shares of Concentrix common stock with certain restrictions thereon (the “Restricted Shares”) in lieu of such
Sellers’ right to a portion of the Earnout Shares. On the Closing Date, the Company issued approximately 80
Restricted Shares in exchange for certain of the Restricted Stock Participants’ Shares. The Restricted Shares are
non-transferable and non-assignable and are not entitled to any dividends or distributions unless and until the
restrictions lapse, as set forth in the Stock Restriction Agreements. The Restricted Shares will be automatically
cancelled by the Company for no consideration in the event that the restrictions on the Restricted Shares do not
lapse. The Restricted Stock Participants have waived any and all rights as a holder of Restricted Shares to vote on
any matter submitted to the holders of Concentrix common stock.
Preliminary purchase price allocation
The acquisition was accounted for as a business combination in accordance with Accounting Standards
Codification (“ASC”) Topic 805, Business Combinations. The purchase price was allocated to the assets acquired
and liabilities assumed based on management’s estimate of the respective fair values at the date of acquisition.
Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents
the estimated future economic benefits arising from other assets acquired that could not be individually identified
and separately recognized. The factors contributing to the recognition of goodwill were the assembled workforce,
comprehensive service portfolio delivery capabilities and strategic benefits that are expected to be realized from the
acquisition. None of the goodwill is expected to be deductible for income tax purposes.
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed as of
the acquisition date:
As of
September 25, 2023
Assets acquired:
Cash and cash equivalents $ 332,749
Accounts receivable 457,264
Other current assets (1)
454,906
Property and equipment 325,753
Identifiable intangible assets 1,984,000
Goodwill 2,085,344
Deferred tax assets 17,680
Other assets 408,884
6,066,580
Liabilities assumed:
Accounts payable 68,132
Accrued compensation and benefits 268,213
Other accrued liabilities 563,738
Income taxes payable 72,052
Debt (current portion and long-term) 8,589
Deferred tax liabilities 410,918
Other long-term liabilities 400,938
Total liabilities assumed 1,792,580
Total consideration transferred $ 4,274,000
(1)
Includes restricted cash acquired of $188,853.
As of November 30, 2023, 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). 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. 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.
The preliminary purchase price allocation includes $1,984,000 of acquired identifiable intangible assets, all of
which have finite lives. The fair value of the identifiable intangible assets has been estimated by using the income
approach through a discounted cash flow analysis of certain cash flow projections. The cash flow projections are
based on forecasts used by the Company to price the Webhelp Combination, and the discount rates applied were
benchmarked by referencing the implied rate of return of the Company’s pricing model and the weighted average
cost of capital. The intangible assets are being amortized over their estimated useful lives on either a straight-line
basis or an accelerated method that reflects the economic benefit of the asset. The determination of the useful lives
is based upon various industry studies, historical acquisition experience, economic factors, and future forecasted
cash flows of the Company following the acquisition of Webhelp.
The preliminary amounts allocated to intangible assets are as follows:
Gross Carrying Weighted-Average Amortization

Amount Useful Life Method
Customer relationships $ 1,882,000 15 years Accelerated
Trade name 102,000 3 years Straight-line
Total $ 1,984,000
Supplemental Pro Forma Information (unaudited)
The supplemental pro forma financial information presented below is for illustrative purposes only, does not
include the pro forma adjustments that would be required under Regulation S-X for pro forma financial
information, is not necessarily indicative of the financial position or results of operations that would have been
realized if the combination with Webhelp had been completed on December 1, 2021, does not reflect synergies that
might have been achieved, nor is it indicative of future operating results or financial position. The pro forma
adjustments are based upon currently available information and certain assumptions that the Company believes are
reasonable under the circumstances.
The supplemental pro forma financial information reflects pro forma adjustments to present the combined pro
forma results of operations as if the combination with Webhelp had occurred on December 1, 2021 to give effect
to certain events that the Company believes to be directly attributable to the acquisition. These pro forma
adjustments primarily include:
• A net increase in amortization expense that would have been recognized due to acquired
identifiable intangible assets.
• A net increase to interest expense to reflect the additional borrowings of Concentrix incurred in
connection with the combination as previously described and the repayment of Webhelp’s historical
debt in conjunction with the combination.
• The related income tax effects of the adjustments noted above.
The supplemental pro forma financial information for the prior fiscal years ended November 30, 2023 and
2022 is as follows:

2023 2022
Revenue $ 9,485,600 $ 8,919,195
Net income 177,611 238,242
Results of acquired operations
The results of the acquired operations of Webhelp have been included in the consolidated financial statements
since the acquisition date. The following table provides the results of acquired operations included in the
consolidated statement of operations from the acquisition date through November 30, 2023:
Fiscal Year Ended

November 30, 2023
Revenue $ 574,351
Income before income taxes 1,302
PK Acquisition
Background
On December 27, 2021, the Company completed its acquisition of PK, a leading CX design engineering
company with more than 5,000 staff in four countries. PK creates pioneering experiences that accelerate digital
outcomes for their clients’ customers, partners and staff. The acquisition of PK expanded the Company’s scale in
the digital IT services market and supported the Company’s growth strategy of investing in digital transformation to
deliver exceptional customer experiences. The addition of the PK staff and technology to the Company’s team
further strengthened its capabilities in CX design and development, artificial intelligence (“AI”), intelligent
automation, and customer loyalty.
Purchase price consideration
The total purchase price consideration, net of cash and restricted cash acquired, for the acquisition of PK was
$1,573.3 million, which was funded by proceeds from the Company’s term loan under its prior credit agreement
dated as of October 16, 2020 (the “Prior Credit Facility”) and additional borrowings under its accounts receivable
securitization facility (the “Securitization Facility”). See Note 9—Borrowings for a further discussion of the
Company’s term loan, senior credit facility and the Securitization Facility.
The purchase price consideration to acquire PK consisted of the following:
Cash consideration for PK stock (1) $ 1,177,342

Cash consideration for PK vested equity awards (2)
246,229
Cash consideration for repayment of PK debt, including accrued interest (3)
148,492
Cash consideration for transaction expenses of PK (4) 22,842
Total cash consideration 1,594,905
Non-cash equity consideration for conversion of PK equity awards (5) 15,725
Total consideration transferred 1,610,630
Total purchase price consideration $ 1,573,320
(1)
Represents the cash consideration paid for the outstanding shares of PK common stock, which includes the final
settlement of the merger consideration adjustment paid pursuant to the merger agreement.
(2)
Represents the cash consideration paid for certain vested PK stock option awards and restricted stock unit awards.
(3)
Represents the cash consideration paid to retire PK’s outstanding third-party debt, including accrued interest.
(4)
Represents the cash consideration paid for expenses incurred by PK in connection with the merger and paid by
Concentrix pursuant to the merger agreement. These expenses primarily related to third-party consulting services.
(5)
Represents the issuance of vested Concentrix stock options that were issued in conversion of certain vested PK
stock options that were assumed by Concentrix pursuant to the merger agreement.
(6)
Represents the PK cash and restricted cash balance acquired at the acquisition.
Purchase price allocation
The acquisition was accounted for as a business combination in accordance with ASC Topic 805,
Business Combinations. The purchase price was allocated to the assets acquired, liabilities assumed and non-
controlling interest based on management’s estimate of the respective fair values at the date of acquisition.
Goodwill was
calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated
future economic benefits arising from other assets acquired that could not be individually identified and separately
recognized. The factors contributing to the recognition of goodwill were the assembled workforce, comprehensive
service portfolio delivery capabilities and strategic benefits that are expected to be realized from the acquisition.
None of the goodwill is deductible for income tax purposes.
The following table summarizes the final fair values of the assets acquired, liabilities assumed and non-
controlling interest as of the acquisition date:
As of
December 27, 2021
Assets acquired:
Operating lease right-of-use assets 12,288
Identifiable intangible assets 469,300
Goodwill 1,119,068
Other assets 26,449
Total assets acquired 1,754,428
Liabilities assumed and non-controlling interest:

Accounts payable and accrued liabilities 78,092
Operating lease liabilities 12,288
Deferred tax liabilities 51,418
Non-controlling interest 2,000
Total liabilities assumed and non-controlling interest 143,798
Total consideration transferred $ 1,610,630
The purchase price allocation includes $469,300 of acquired identifiable intangible assets, all of which have
finite lives. The fair value of the identifiable intangible assets has been estimated by using the income approach
through a discounted cash flow analysis of certain cash flow projections. The cash flow projections are based on
forecasts used by the Company to price the PK acquisition, and the discount rates applied were benchmarked by
referencing the implied rate of return of the Company’s pricing model and the weighted average cost of capital. The
intangible assets are being amortized over their estimated useful lives on either a straight-line basis or an
accelerated method that reflects the economic benefit of the asset. The determination of the useful lives is based
upon various industry studies, historical acquisition experience, economic factors, and future forecasted cash flows
of the Company following the acquisition of PK.
The amounts allocated to intangible assets are as follows:
Gross Carrying Weighted-Average Acceleration

Customer relationships $ 398,600 15 years Accelerated
Technology 63,500 5 years Straight-line
Non-compete agreements 2,200 3 years Straight-line
Total $ 469,300
ServiceSource Acquisition
Background
On July 20, 2022, the Company completed its acquisition of ServiceSource International, Inc.
(“ServiceSource”), a global outsourced go-to-market services provider, delivering business-to-business (“B2B”)
digital sales and customer success solutions that complemented Concentrix’ offerings in this area.
Purchase price consideration
The total purchase price consideration, net of cash acquired, for the acquisition of ServiceSource was
$141.5 million, which was primarily funded by cash on the Company’s balance sheet, as well as borrowings under
the Company’s Securitization Facility.
The purchase price consideration to acquire ServiceSource consisted of the following:
Cash consideration for ServiceSource stock (1) $ 150,392

Cash consideration for ServiceSource vested and unvested equity awards (2)
6,704
Cash consideration for repayment of ServiceSource debt, including accrued interest (3)
10,063
Total consideration transferred 167,159
Total purchase price consideration $ 141,507
(1)
Represents the cash consideration paid for the outstanding shares of ServiceSource common stock.
(2)
Represents the cash consideration paid or to be paid for vested and unvested ServiceSource stock option awards,
restricted stock units and performance stock units.
(3)
Represents the cash consideration paid to retire ServiceSource’s outstanding third-party debt, including accrued
interest.
(4)
Represents the ServiceSource cash and restricted cash balance acquired at the acquisition.
Purchase price allocation
The purchase price was allocated to the assets acquired and liabilities assumed based on management’s
estimate of the respective fair values at the date of acquisition. Goodwill was calculated as the excess of the
consideration transferred over the net assets recognized and represents the estimated future economic benefits
arising from other assets acquired that could not be individually identified and separately recognized. The factors
contributing to the recognition of goodwill were the assembled workforce, high-value service delivery capabilities
and strategic benefits that are expected to be realized from the acquisition. None of the goodwill is deductible for
income tax purposes.
The following table summarizes the final fair values of the assets acquired and liabilities assumed as of the
acquisition date:
As of
July 20, 2022
Assets acquired:
Operating lease right-of-use assets 29,487
Identifiable intangible assets 40,200
Goodwill 34,910
Net deferred tax assets 32,701
Other assets 19,649
Total assets acquired 229,511
Liabilities assumed:
Accounts payable and accrued liabilities 32,865
Operating lease liabilities 29,487
Total liabilities assumed 62,352
Total consideration transferred $ 167,159
The purchase price allocation includes $40,200 of acquired identifiable intangible assets, all of which have
finite lives. The fair value of the identifiable intangible assets has been estimated using the income approach
through a discounted cash flow analysis of certain cash flow projections. The intangible assets are being amortized
over their estimated useful lives on either a straight-line basis or an accelerated method that reflects the economic
benefit of the asset. The determination of the useful lives is based upon various industry studies, historical
acquisition experience, economic factors, and future forecasted cash flows of the Company following the
acquisition of ServiceSource. During the measurement period included in the fiscal year ended November 30, 2023,
measurement period adjustments were recorded to finalize net deferred tax assets at the acquired value as disclosed
in the table above, resulting in a corresponding decrease to goodwill. The purchase price allocation is now final.
The amounts allocated to intangible assets are as follows:
Gross Carrying Weighted-Average Acceleration

Customer relationships $ 31,370 15 years Accelerated
Technology 5,640 5 years Straight-line
Total $ 40,200
Acquisition-related and integration expenses
In connection with the acquisitions of PK and ServiceSource and the Webhelp Combination, the Company
incurred $71,336, $33,763, and $825 of acquisition-related and integration expenses for the fiscal years ended 2023,
2022 and 2021, 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. These
acquisition-related and integration expenses were recorded within selling, general and administrative expenses in
the consolidated statement of operations.
Divestitures
In July 2021, the Company completed the sales of its insurance third-party administration operations and
software platform, Concentrix Insurance Solutions (“CIS”), and another non-CX solutions business in separate
transactions for total cash consideration of approximately $73,708. The divestitures generated a pre-tax gain of
approximately $13,197, net of related transaction costs. The gain on divestitures and related transaction costs
were included in selling, general and administrative expenses in the consolidated statements of operations for the
fiscal year ended November 30, 2021.
NOTE 4—SHARE-BASED COMPENSATION:
In November 2020, in connection with the spin-off, TD SYNNEX, as sole stockholder of Concentrix, approved
the Concentrix Corporation 2020 Stock Incentive Plan (the “Concentrix Stock Incentive Plan”) and the Concentrix
Corporation 2020 Employee Stock Purchase Plan (the “Concentrix ESPP”), each to be effective upon completion of
the spin-off. 4,000 shares of Concentrix common stock were reserved for issuance under the Concentrix Stock
Incentive Plan, and 1,000 shares of Concentrix common stock were authorized for issuance under the Concentrix
ESPP. In December 2021 and 2022, respectively, 523 and 520 additional shares of Concentrix common stock were
reserved for issuance under the Concentrix Stock Incentive Plan resulting from an automatic annual increase
pursuant to the terms of the plan.
The Company recorded share-based compensation expense in the consolidated statements of operations for
fiscal years 2023, 2022 and 2021 as follows:

2023 2022 2021
Total share-based compensation $ 62,493 $ 47,516 $ 36,762
Tax benefit recorded in the provision for income taxes (15,623) (12,069) (9,234)
Effect on net income $ 46,870 $ 35,447 $ 27,528
Share-based compensation expense is included in selling, general and administrative expenses in the
consolidated statements of operations.
Employee Stock Options
The Company uses the Black-Scholes valuation model to estimate the fair value of stock options. The Black-
Scholes option-pricing model was developed for use in estimating the fair value of short-lived exchange traded
options that have no vesting restrictions and are fully transferable. In addition, option-pricing models require the
input of subjective assumptions, including the option’s expected life and the price volatility of the underlying stock.
The stock options have ten-year terms and vesting terms of five years.
A summary of the changes in the employee stock options during fiscal years 2021, 2022, and 2023 is presented
below:
Options Outstanding
Weighted-
Number of shares average exercise

(in thousands) price per share
Balance as of December 1, 2020 (converted from former parent stock options in

connection with the spin-off) (1) 684 $ 45.84
Options granted 26 119.72
Options exercised (269) 43.34
Balance as of November 30, 2021 441 51.75
Options granted — —
Options issued in conversion of certain vested PK stock options (2) 119 45.81
Balance as of November 30, 2022 395 52.60
Options granted — —
Options cancelled (1) 30.70
Balance as of November 30, 2023 294 $ 54.45
(1) Amounts represent Concentrix awards, including those held by TD SYNNEX employees.
(2) Amounts represent the issuance of vested Concentrix stock options that were issued in conversion of certain vested PK stock options
that were assumed by Concentrix pursuant to the merger agreement with PK.
As of November 30, 2023, 294 options were outstanding with a weighted-average life of 4.85 years and an
aggregate pre-tax intrinsic value of $12,326. As of November 30, 2023, 262 options were vested and exercisable
with a weighted-average life of 4.68 years, a weighted-average exercise price of $51.87 per share, and an
aggregate pre-tax intrinsic value of $11,431.
As of November 30, 2023, the unamortized share-based compensation expense related to unvested stock
options under the Concentrix Stock Incentive Plan was $538, which will be recognized over an estimated weighted-
average amortization period of 1.54 years.
Restricted Stock Awards, Restricted Stock Units and Performance-Based Restricted Stock Units
The fair value of restricted stock awards and restricted stock units granted under the Concentrix Stock
Incentive Plan in fiscal year 2023 were determined based on the trading price of the Company’s common stock on
the date of grant. The awards are expensed on a straight line basis over the vesting term, typically three or four
years. The holders of restricted stock awards are entitled to the same voting, dividend and other rights as the
Company’s common stockholders.
In fiscal years 2023 and 2022, the Company granted performance-based restricted stock units to the Company’s
senior executive team. The performance-based restricted stock units will vest, if at all, upon the achievement of
certain annual financial targets during the three-year periods ending November 30, 2025 and November 30, 2024,
respectively.
The Company granted performance-based restricted stock units in fiscal year 2021. These performance-based
restricted stock units vested during fiscal year 2023 upon achievement of certain annual financial targets during
the three-year period ending November 30, 2023.
A summary of the changes in the non-vested restricted stock awards, restricted stock units, and performance-
based stock units during fiscal years 2021, 2022, and 2023, including the conversion of former parent awards and
stock units previously discussed, is presented below:
Weighted-average,
Number of shares grant-date
(in thousands)
fair value per
share
Balance as of December 1, 2020 (converted from former parent awards and

units in connection with the spin-off) (1) 827 $ 51.53
Awards granted 495 134.65
Units granted (2) 226 154.53
Awards and units vested (504) 61.95
Awards and units cancelled/forfeited (64) 84.20
Non-vested as of November 30, 2021 980 109.92
Units granted (2) 294 130.98
Non-vested as of November 30, 2022 1,395 124.69
Units granted (2) 1,828 74.64
Performance-based units vested in excess of target (3) 17 159.97
Non-vested as of November 30, 2023 2,673 $ 92.80
(1) Amounts represent Concentrix awards, including those held by TD SYNNEX employees.
(2) For performance-based restricted stock units, the target number of shares that can be awarded upon full vesting of the grants is included.
(3) Amounts represent performance-based awards that vested in excess of the target number of shares for the fiscal year 2021
performance- based grants.
As of November 30, 2023, there was $211,603 of total unamortized share-based compensation expense
related to non-vested restricted stock awards, restricted stock units and performance-based restricted stock units
granted under the Concentrix Stock Incentive Plan. That cost is expected to be recognized over an estimated
weighted- average amortization period of 2.65 years.
NOTE 5—BALANCE SHEET COMPONENTS:
Cash, cash equivalents and restricted cash:
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:
As of November 30,
2023 2022
Cash and cash equivalents $ 295,336 $ 145,382
Restricted cash included in other current assets 221,151 12,081
Cash, cash equivalents and restricted cash $ 516,487 $ 157,463
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 $218,228 and $9,679 as of November 30, 2023 and 2022,
respectively.
Accounts receivable, net:
Accounts receivable, net is comprised of the following as of November 30, 2023 and 2022:
As of November 30,
2023 2022
Billed accounts receivable $ 1,082,469 $ 782,049
Unbilled accounts receivable 818,954 613,222
Less: Allowance for doubtful accounts (12,533) (4,797)
Accounts receivable, net $ 1,888,890 $ 1,390,474
Allowance for doubtful trade receivables:
Presented below is a progression of the allowance for doubtful trade receivables:
2023 2022 2021

Balance at beginning of period $ 4,797 $ 5,421 $ 8,963
Net additions (reductions) 10,236 3,329 (202)
Write-offs and reclassifications (2,500) (3,953) (3,340)
Balance at end of period $ 12,533 $ 4,797 $ 5,421
Property and equipment, net:
The following table summarizes the carrying amounts and related accumulated depreciation for property and
equipment as of November 30, 2023 and 2022:
As of November 30,
2023 2022
Land $ 28,039 $ 27,336
Equipment, computers and software 762,961 542,209
Furniture and fixtures 157,425 89,167
Buildings, building improvements and leasehold improvements 566,384 362,218
Construction-in-progress 35,175 14,975
Total property and equipment, gross $ 1,549,984 $ 1,035,905
Less: Accumulated depreciation (801,293) (632,076)
Property and equipment, net $ 748,691 $ 403,829
Shown below are the countries where 10% or more and other significant concentrations of the Company’s
property and equipment, net are located as of November 30, 2023 and 2022:
As of November 30,
2023 2022
Property and equipment, net:
United States $ 123,335 $ 123,184
Philippines 75,943 76,361
France 65,599 284
India 51,248 42,698
Others 432,566 161,302
Total $ 748,691 $ 403,829
Accumulated other comprehensive income (loss):
The components of accumulated other comprehensive income (loss) (“AOCI”), net of taxes, were as follows:
Unrecognized Unrealized gains Foreign currency
gains (losses) on (losses) translation
defined benefit on adjustment and
plan, net hedges, net of other,
of taxes taxes net of taxes Total
Balance, November 30, 2021 $ (22,745) $ (1,403) $ (46,378) $ (70,526)
Other comprehensive income (loss)
before reclassification 14,274 (45,464) (240,986) (272,176)
Reclassification of (gains) losses from other
comprehensive income (loss) — 26,953 — 26,953
Balance, November 30, 2022 $ (8,471) $ (19,914) $ (287,364) $ (315,749)
Other comprehensive income (loss)
before reclassification (2,800) 10,610 102,419 110,229
Reclassification of gains from
other comprehensive income (loss) — 13,793 — 13,793
Balance, November 30, 2023 $ (11,271) $ 4,489 $ (184,945) $ (191,727)
Refer to Note 7—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. Reclassifications of
amortization of actuarial (gains) losses of defined benefit plans is recorded in “Other expense (income), net” in the
consolidated statement of operations.
NOTE 6—GOODWILL AND INTANGIBLE ASSETS:
Goodwill
The Company tests goodwill for impairment annually as of the fourth quarter of its fiscal year and at other
times if events have occurred or circumstances exist that indicate the carrying value of goodwill may no longer be
recoverable. Goodwill impairment testing is performed at the reporting unit level. Based on the current year
assessment, the Company concluded that no impairment charges were necessary for the Company’s reporting unit.
The Company has not recorded any impairment charges related to goodwill during the three-year period ended
November 30, 2023.
Below is a progression of goodwill for fiscal years 2023 and 2022:

2023 2022
Balance, beginning of year $ 2,904,402 $ 1,813,502
Acquisitions 2,085,344 1,165,072
Acquisition measurement period adjustments (10,592) —
Foreign currency translation 99,514 (74,172)
Balance, end of year $ 5,078,668 $ 2,904,402
Other Intangible Assets
The Company’s other intangible assets, primarily acquired through business combinations, are subject to
amortization and are evaluated periodically if events or circumstances indicate a possible inability to recover their
carrying amounts. No impairment charges were recognized in any period presented. As of November 30, 2023 and
2022, the Company’s other intangible assets consisted of the following:
As of November 30, 2023 As of November 30, 2022
Gross Accumulated Net Gross Accumulated Net

amounts amortization amounts amounts amortization amounts
Customer relationships $ 3,670,246 $(1,011,201) $ 2,659,045 $ 1,731,610 $ (811,727) $ 919,883

Technology 79,739 (36,174) 43,565 79,728 (21,820) 57,908
Trade names 118,823 (17,255) 101,568 14,552 (8,291) 6,261
Non-compete agreements 2,200 (1,413) 787 2,200 (680) 1,520
$ 3,871,008 $(1,066,043) $ 2,804,965 $ 1,828,090 $ (842,518) $ 985,572
Amortization expense for intangible assets was $214,832, $162,673, and $136,939 for the fiscal years ended
November 30, 2023, 2022 and 2021, respectively, and the related estimated expense for the five subsequent fiscal
years and thereafter is as follows:
Amortization
Fiscal Years Ending November 30, Expense
2024 $ 462,969
2025 430,917
2026 383,247
2027 289,852
2028 245,713
Thereafter 992,267
Total $ 2,804,965
The remaining weighted average amortization period for customer relationships and other intangible assets is
approximately 14 years.
NOTE 7—DERIVATIVE INSTRUMENTS:
In the ordinary course of business, the Company is exposed to foreign currency risk and credit risk. The
Company enters into transactions, and owns monetary assets and liabilities, that are denominated in currencies other
than the legal entity’s functional currency. The Company may enter into forward contracts, option contracts, or
other derivative instruments to offset a portion of the risk on expected future cash flows, earnings, net investments
in certain non-U.S. legal entities and certain existing assets and liabilities. However, the Company may choose not
to hedge certain exposures for a variety of reasons including, but not limited to, accounting considerations and the
economic cost of hedging particular exposures. There can be no assurance the hedges will offset more than a
portion of the financial impact resulting from movements in foreign currency exchange or interest rates. Generally,
the Company does not use derivative instruments to cover equity risk and credit risk. The Company’s hedging
program is not used for trading or speculative purposes.
All derivatives are recognized on the consolidated balance sheets at their fair values. Changes in the fair value
of derivatives are recorded in the consolidated statements of operations, or as a component of AOCI in the
consolidated balance sheets, as discussed below.
Cash Flow Hedges
To protect gross margins from fluctuations in foreign currency exchange rates, certain of the Company’s legal
entities with functional currencies that are not U.S. dollars may hedge a portion of forecasted revenue or costs not
denominated in the entities’ functional currencies. These instruments mature at various dates through November
2025. Gains and losses on cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings.
Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a
component of “Revenue” in the same period as the related revenue is recognized, and deferred gains and losses
related to cash flow hedges of foreign currency costs are recognized as a component of “Cost of revenue” or
“Selling, general and administrative expenses” in the same period as the related costs are recognized. Derivative
instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted
hedged transaction will not occur in the initially identified time period or within a subsequent two-month time
period. Deferred gains and losses in AOCI associated with such derivative instruments are reclassified into
earnings in the period of de-designation. Any subsequent changes in fair value of such derivative instruments are
recorded in earnings unless they are re-designated as hedges of other transactions.
Non-Designated Derivatives
The Company uses short-term forward contracts to offset the foreign exchange risk of assets and liabilities
denominated in currencies other than the functional currencies of the Company’s legal entities that own the assets
or liabilities. These contracts, which are not designated as hedging instruments, mature or settle within twelve
months. Derivatives that are not designated as hedging instruments are adjusted to fair value through earnings in the
financial statement line item to which the derivative relates.
During the second quarter of 2023, the Company entered into short-term foreign exchange forward call option
contracts to offset the foreign exchange risk associated with the cash payment required to be made in euros upon the
closing of the Webhelp Combination. These derivatives were not designated as hedging instruments and were
adjusted to fair value through earnings and included in other expense (income), net in the consolidated statement of
operations. These derivatives were settled subsequent to the Webhelp Combination.
Cross-currency interest rate swaps
In connection with the closing of the Webhelp Combination, the Company entered into cross-currency swap
arrangements with certain financial institutions for a total notional amount of $500,000 of the Company’s senior
notes. In addition to aligning the currency of a portion of the Company’s interest payments to the Company’s euro-
denominated cash flows, the arrangements, together with intercompany loans and additional intercompany cross-
currency interest rate swap arrangements described below, effectively converted $250,000 aggregate principal
amount of the Company’s 6.650% Senior Notes due 2026 and $250,000 aggregate principal amount of the
Company’s 6.660% Senior Notes due 2028 into synthetic fixed euro-based debt at weighted average interest rates
of 5.12% and 5.18%, respectively.
Concurrent with entering into the cross-currency interest rate swaps with certain financial institutions, Marnix
SAS, a wholly owned subsidiary of Concentrix, entered into corresponding U.S. dollar denominated intercompany
loan agreements with certain other subsidiaries of Concentrix with identical terms and notional amounts as the
underlying $500,000 U.S. dollar denominated senior notes, with reciprocal cross currency interest rate swaps.
The cross-currency interest rate swaps are designated as fair value hedges.
Fair Values of Derivative Instruments in the Consolidated Balance Sheets
The fair values of the Company’s derivative instruments are disclosed in Note 8—Fair Value Measurements
and summarized in the table below:
Value as of
November 30, November 30,
Balance Sheet Line Item 2023 2022
Derivative instruments not designated as hedging instruments:
Foreign exchange forward contracts (notional value) $ 2,173,330 $ 1,465,853
Other current assets 16,078 22,839
Other accrued liabilities 20,856 14,934
Derivative instruments designated as fair value hedges:
Cross-currency interest rate swaps (notional value) $ 471,604 $ —
Other long-term liabilities 17,219 —
Derivative instruments designated as cash flow hedges:
Foreign exchange forward contracts (notional value) $ 996,667 $ 963,844
Other current assets and other assets 14,330 6,389
Other accrued liabilities and other long-term liabilities 2,724 32,935
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 Canadian dollar, the
Japanese yen and the Australian dollar, 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. The Company’s exposure to credit loss and market
risk will vary over time as currency exchange rates change.
The Effect of Derivative Instruments on AOCI and the Consolidated Statements of Operations
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:

Location of gain (loss) in
statement of operations 2023 2022 2021
Derivative instruments designated as
cash flow and fair value hedges:
(Losses) gains recognized in OCI:
Foreign exchange forward contracts $ 19,199 $ (60,891) $ (11,105)
Cross-currency interest rate swaps (3,651) — —
$ 15,548 $ (60,891) $ (11,105)
Gains (losses) reclassified from

AOCI into income:
Foreign exchange forward contracts
Gain reclassified from AOCI
into income Revenue for services $ 222 $ — $ —
(Loss) gain reclassified from AOCI Cost of revenue for
into income services (13,864) (28,108) 21,138
(Loss) gain reclassified from AOCI Selling, general and
into income administrative expenses (4,745) (8,121) 8,606
Total $ (18,387) $ (36,229) $ 29,744
Derivative instruments not designated

as hedging instruments:
Loss recognized from foreign Other expense (income),
exchange forward contracts, net(1) net $ (13,007) $ (57,983) $ (2,880)
Loss recognized from foreign Other expense (income),
exchange call options contracts, net net (14,629) — —
Total $ (27,636) $ (57,983) $ (2,880)
(1) The gains and losses largely offset the currency gains and losses that resulted from changes in the assets and liabilities
denominated in nonfunctional currencies.
There were no material gain or loss amounts excluded from the assessment of effectiveness. 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 $9,209.
Offsetting of Derivatives
In the consolidated balance sheets, the Company does not offset derivative assets against liabilities in master
netting arrangements.
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.
NOTE 8—FAIR VALUE MEASUREMENTS:
The Company’s fair value measurements are classified and disclosed in one of the following three categories:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical,
unrestricted assets or liabilities;
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or
indirectly, for substantially the full term of the asset or liability; and
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value
measurement and unobservable (i.e., supported by little or no market activity).
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 November 30, 2023 As of November 30, 2022
Fair value measurement category Fair value measurement category
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3

Assets measured at fair
value:
Cash equivalents $ 52,847 $ 52,847 $ — $ — $89,932 $89,932 $ — $ —
Foreign government bond 1,853 1,853 — — 1,529 1,529 — —
Forward foreign currency
exchange contracts 30,408 — 30,408 — 29,228 — 29,228 —
Liabilities measured at fair
value:
Forward foreign currency
exchange contracts 23,580 — 23,580 — 47,869 — 47,869 —
Cross-currency interest rate
swaps 17,219 — 17,219 — — — — —
Acquisition contingent
consideration 48,600 — 48,600 — — — — —
Liabilities measured at other
than fair value:
Long term debt (senior notes)
Fair value 2,146,554 — 2,146,554 — — — — —
Carrying amount 2,131,870 — — — — — — —
The Company’s cash equivalents consist primarily of highly liquid investments in money market funds and
term deposits with maturity periods of three months or less. The carrying values of cash equivalents approximate
fair value since they are near their maturity. Investment in foreign government bond classified as an available-for-
sale debt security is recorded at fair value based on quoted market prices. The fair values of forward exchange
contracts are measured based on the foreign currency spot and forward rates. Fair values of long-term foreign
currency exchange contracts are measured using valuations based upon quoted prices for similar assets and
liabilities in active markets and are valued by reference to similar financial instruments, adjusted for terms specific
to the contracts. The fair values of the cross-currency interest rate swaps are determined using a market approach
that is based on observable inputs other than quoted market prices, including contract terms, interest rates, currency
rates, and other market factors. The estimated fair value of the acquisition contingent consideration was determined
using a Monte- Carlo simulation model. 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
November 30, 2023 and 2022.
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. The carrying
values of the outstanding balance on the term loan under the Company’s senior credit facility and the outstanding
balance on the Securitization Facility approximate their fair values since they bear interest rates that are similar to
existing market rates. The fair values of the 2026 Notes, 2028 Notes, and 2033 Notes (as defined in Note 9) were
based on quoted prices in active markets and are classified within Level 2 of the fair value hierarchy. The Company
does not adjust the quoted market prices for such financial instruments.
During fiscal years 2023, 2022 and 2021, there were no transfers between the fair value measurement category
levels.
NOTE 9—BORROWINGS:
Borrowings consist of the following:
As of November 30,
2023 2022
Other loans $ 2,313 $ —
Current portion of long-term debt $ 2,313 $ —
6.650% Senior Notes due 2026 $ 800,000 $ —

6.600% Senior Notes due 2028 800,000 —
6.850% Senior Notes due 2033 550,000 —
Credit Facility - Term Loan component 1,950,000 1,875,000
Securitization Facility 128,500 356,500
Sellers' Note 762,286 —
Other loans 5,301 —
Long-term debt, before unamortized debt discount and issuance costs 4,996,087 2,231,500
Less: unamortized debt discount and issuance costs (56,375) (7,212)
Long-term debt, net $ 4,939,712 $ 2,224,288
Senior Notes
On August 2, 2023, the Company issued and sold (i) $800,000 aggregate principal amount of 6.650% Senior
Notes due 2026 (the “2026 Notes”), (ii) $800,000 aggregate principal amount of 6.600% Senior Notes due 2028
(the “2028 Notes”) and (iii) $550,000 aggregate principal amount of 6.850% Senior Notes due 2033 (the “2033
Notes” and, together with the 2026 Notes and 2028 Notes, the “Senior Notes”). The Senior Notes were sold in a
registered public offering pursuant to the Company’s Registration Statement on Form S-3, which became effective
upon filing, and a Prospectus Supplement dated July 19, 2023, to a Prospectus dated July 17, 2023.
The Senior Notes were issued pursuant to, and are governed by, an indenture, dated as of August 2, 2023 (the
“Base Indenture”), between Concentrix and U.S. Bank Trust Company, National Association, as trustee (the
“Trustee”), as supplemented by a first supplemental indenture dated as of August 2, 2023 between Concentrix and
the Trustee relating to the 2026 Notes, a second supplemental indenture dated as of August 2, 2023 between
Concentrix and the Trustee relating to the 2028 Notes, and a third supplemental indenture dated as of August 2,
2023 between Concentrix and the Trustee relating to the 2033 Notes (such supplemental indentures, together with
the Base Indenture, the “Indenture”). The Indenture contains customary covenants and restrictions, including
covenants that limit Concentrix Corporation’s and certain of its subsidiaries’ ability to create or incur liens on shares
of stock of certain subsidiaries or on principal properties, engage in sale/leaseback transactions or, with respect to
Concentrix Corporation, consolidate or merge with, or sell or lease substantially all its assets to, another person.
The Indenture also provides for customary events of default.
The Company used the net proceeds of the offering and sale of the Senior Notes, together with approximately
$294,702 of delayed draw borrowings under its $2,144,700 senior unsecured term loan facility and cash on hand, to
pay the cash portion of the Webhelp Combination consideration, repay approximately $1,915,197 of existing
indebtedness of Webhelp Parent and its subsidiaries, and pay related fees and expenses in connection with the
Webhelp Combination. The remaining proceeds were used for general corporate purposes of the Company.
The Company incurred debt discount and issuance costs of approximately $19,300 associated with the Senior
Notes during the fiscal year ended November 30, 2023, which are being amortized over the applicable maturity
dates.
Bridge Facility and Restated Credit Facility
To provide the debt financing required by the Company to consummate the Webhelp Combination, the
Company entered into a commitment letter dated March 29, 2023 (the “Bridge Commitment Letter,” and the
commitments pursuant to the Bridge Commitment Letter, the “Bridge Facility”), under which certain financing
institutions committed to provide a 364-day bridge loan facility in an aggregate principal amount of $5,290,000
consisting of (i) a $1,850,000 tranche of term bridge loans (the “Term Loan Amendment Tranche”), (ii) a
$1,000,000 tranche of revolving commitments (the “Revolver Amendment Tranche”) and (iii) a $2,440,000 tranche
of term bridge loans (the “Acquisition Tranche”), each subject to the satisfaction of certain customary closing
conditions, including the consummation of the Webhelp Combination.
The incurrence of the acquisition-related indebtedness that would be funded by the Acquisition Tranche of the
Bridge Facility (or permanent financing in lieu thereof) and by the Sellers’ Note was not permitted under the Prior
Credit Facility. Therefore, on April 21, 2023, the Company entered into an Amendment and Restatement
Agreement (the “Amendment Agreement”) with the lenders party thereto, JPMorgan Chase Bank, N.A. and Bank
of America,
N.A. to amend and restate the Prior Credit Facility (as amended and restated, the “Restated Credit Facility”). As a
result of having entered into the Amendment Agreement, among other things, the Company obtained requisite
lender consent to incur acquisition-related indebtedness, and pursuant to the terms of the Bridge Commitment
Letter, the commitments with respect to the Term Loan Amendment Tranche and the Revolver Amendment
Tranche of the Bridge Facility were each reduced to zero, and the Acquisition Tranche was reduced by
approximately $294,702. On August 2, 2023, the remaining outstanding commitment of approximately $2,145,298
under the Bridge Commitment Letter was reduced to zero in connection with the issuance of the Senior Notes.
The Restated Credit Facility provides for the extension of a senior unsecured revolving credit facility not to
exceed an aggregate principal amount of $1,042,500. The Restated Credit Facility also provides for a senior
unsecured term loan facility in an aggregate principal amount not to exceed approximately $2,144,700 (the “Term
Loan”), of which $1,850,000 was incurred upon the amendment and approximately $294,702 was drawn on a
delayed draw basis on the Closing Date (the “Delayed Draw Term Loans”). Aggregate borrowing capacity under
the Restated Credit Facility may be increased by up to an additional $500,000 by increasing the amount of the
revolving credit facility or by incurring additional term loans, in each case subject to the satisfaction of certain
conditions set forth in the Restated Credit Facility, including the receipt of additional commitments for such
increase. During the fiscal year ended November 30, 2023, the Company voluntarily prepaid $194,702 of the
principal balance on the Term Loan, without penalty, resulting in an outstanding balance at November 30, 2023 of
approximately
$1,950,000.
The maturity date of the Restated Credit Facility remains 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. Due to the voluntary prepayments previously described, no
principal payment on the term loans is due until fiscal year 2026 with the remaining outstanding principal amount
due in full on the maturity date.
Borrowings under the Restated Credit Facility bear interest, in the case of SOFR rate loans, at a per annum rate
equal to the applicable SOFR rate (but not less than 0.0%), plus an applicable margin, which ranges from 1.125% to
2.000%, based on the credit ratings of the Company’s senior unsecured non-credit enhanced long-term indebtedness
for borrowed money plus a credit spread adjustment to the SOFR rate of 0.10%. Borrowings under the Restated
Credit Facility that are base rate loans bear interest at a per annum rate (but not less than 1.0%) equal to (i) the
greatest of (A) the Prime Rate (as defined in the Restated Credit Facility) in effect on such day, (B) the NYFRB
Rate (as defined in the Restated Credit Facility) in effect on such day plus ½ of 1.0%, and (C) the adjusted one-
month term SOFR rate plus 1.0% per annum, plus (ii) an applicable margin, which ranges from 0.125% to 1.000%,
based on the credit ratings of the Company’s senior unsecured non-credit enhanced long-term indebtedness for
borrowed money.
The Restated Credit Facility contains certain loan covenants that are customary for credit facilities of this type
and that restrict the ability of Concentrix Corporation and its subsidiaries to take certain actions, including the
creation of liens, mergers or consolidations, changes to the nature of their business, and, solely with respect to
subsidiaries of Concentrix Corporation, incurrence of indebtedness. In addition, the Restated Credit Facility
contains financial covenants that require the Company to maintain at the end of each fiscal quarter, (i) a
consolidated leverage ratio (as defined in the Restated Credit Facility) not to exceed 3.75 to 1.0 (or for certain
periods following certain qualified acquisitions, including the Webhelp Combination, 4.25 to 1.0) and (ii) a
consolidated interest coverage ratio (as defined in the Restated Credit Facility) equal to or greater than 3.00 to 1.0.
The Restated Credit Facility also contains various customary events of default, including payment defaults, defaults
under certain other indebtedness, and a change of control of Concentrix Corporation.
None of Concentrix’ subsidiaries guarantees the obligations under the Restated Credit Facility.
Prior to entering into the Amendment Agreement, obligations under the Company’s Prior Credit Facility were
secured by substantially all of the assets of Concentrix Corporation and certain of its U.S. subsidiaries and were
guaranteed by certain of its U.S. subsidiaries. Borrowings under the Prior Credit Facility bore interest, in the case of
term or daily SOFR loans, at a per annum rate equal to the applicable SOFR rate (but not less than 0.0%), plus an
adjustment of between 0.10% and 0.25% depending on the interest period of each SOFR loan, plus an applicable
margin, which ranged from 1.25% to 2.00%, based on the Company’s consolidated leverage ratio. Borrowings
under the Prior Credit Facility that were base rate loans bore interest at a per annum rate equal to (i) the greatest of
(a) the Federal Funds Rate in effect on such day plus ½ of 1.00%, (b) the rate of interest last publicly announced by
Bank of America as its “prime rate” and (c) the term SOFR rate plus 1.00%, plus (ii) an applicable margin, which
ranged
from 0.25% to 1.00%, based on the Company’s consolidated leverage ratio. 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 November 30, 2023 and 2022, no amounts were outstanding under the Company’s revolving credit facility.
During the fiscal year ended November 30, 2023, the Company voluntarily prepaid $25,000 of the principal
balance on the term loans under the Prior Credit Facility, without penalty.
The Company paid and expensed a total of $21,617 in Bridge Facility financing fees during the fiscal year
ended November 30, 2023. During the fiscal year ended November 30, 2023, the Company paid $3,369 in debt
amendment fees related to the Restated Credit Facility. The debt amendment fees that were capitalized are being
amortized over the remaining life of the Restated Credit Facility.
Securitization Facility
On July 6, 2022, the Company entered into an amendment to the Securitization Facility, which was initially
entered into on October 30, 2020, to (i) increase the commitment of the lenders to provide available borrowings
from up to $350,000 to up to $500,000, (ii) extend the termination date of the Securitization Facility from October
28, 2022 to July 5, 2024, and (iii) replace LIBOR with SOFR as one of the reference rates used to calculate interest
on borrowings under the Securitization Facility. In addition, the interest rate margins were amended, such that
borrowings under the Securitization Facility that are funded through the issuance of commercial paper bear interest
at the applicable commercial paper rate plus a spread of 0.70% and, otherwise, at a per annum rate equal to the
applicable SOFR rate (which includes a credit spread adjustment to the SOFR rate of 0.10%), plus a spread of
0.80%. Amounts drawn under this Securitization Facility have been classified as long-term debt within the
consolidated balance sheet based on the Company’s ability and intent to refinance on a long-term basis as of
November 30, 2023.
Under the Securitization Facility, Concentrix Corporation and certain of its subsidiaries (the “Originators”) sell
or otherwise transfer all of their accounts receivable to a special purpose bankruptcy-remote subsidiary of the
Company (the “Borrower”) that grants a security interest in the receivables to the lenders in exchange for available
borrowings of up to $500,000. The amount received under the Securitization Facility is recorded as debt on the
Company’s consolidated balance sheets. Borrowing availability under the Securitization Facility may be limited by
the Company’s accounts receivable balances, changes in the credit ratings of the clients comprising the receivables,
client concentration levels in the receivables, and certain characteristics of the accounts receivable being transferred
(including factors tracking performance of the accounts receivable over time).
The Securitization Facility contains various affirmative and negative covenants, including a consolidated
leverage ratio covenant that is consistent with the Restated Credit Facility and customary events of default,
including payment defaults, defaults under certain other indebtedness, a change in control of Concentrix
Corporation, and certain events negatively affecting the overall credit quality of the transferred accounts receivable.
The Borrower’s sole business consists of the purchase or acceptance through capital contributions of the
receivables and related security from the Originators and the subsequent retransfer of or granting of a security
interest in such receivables and related security to the administrative agent under the Securitization Facility for the
benefit of the lenders. The Borrower is a separate legal entity with its own separate creditors who will be entitled,
upon its liquidation, to be satisfied out of the Borrower’s assets prior to any assets or value in the Borrower
becoming available to the Borrower’s equity holders, and the assets of the Borrower are not available to pay
creditors of the Company and its subsidiaries.
Sellers’ Note
On September 25, 2023, as part of the consideration for the Webhelp Combination, Concentrix Corporation
issued the Sellers’ Note in the aggregate principal amount of €700,000 to certain Sellers (the “Noteholders”). The
stated rate of interest associated with the Sellers’ Note is two percent (2%) per annum, which is below the
Company’s expected borrowing rate. As a result, the Company discounted the Sellers’ Note by €31,500 using an
approximate 4.36% imputed annual interest rate. This discounting resulted in an initial value of €668,500 or
$711,830. The discount value is being amortized into interest expense over the two-year term. All stated principal
and accrued interest will be due and payable on September 25, 2025.
Covenant compliance
As of November 30, 2023, Concentrix was in compliance with all covenants for the above arrangements.
Future principal payments
As of November 30, 2023, future principal payments under the above loans for the subsequent fiscal years are
as follows:
Amount
Fiscal Years Ending November 30,
2024 $ 130,813
2025 767,587
2026 819,768
2027 1,930,232
2028 800,000
Thereafter 550,000
Total $ 4,998,400
NOTE 10—REVENUE:
Disaggregated revenue
In the following tables, the Company’s revenue is disaggregated by primary industry verticals and geographic
locations:

2023 2022 2021
Industry vertical:
Technology and consumer electronics $ 2,205,834 $ 1,980,666 $ 1,759,203
Retail, travel and ecommerce 1,448,666 1,184,086 985,550
Communications and media 1,117,694 1,076,289 1,005,283
Banking, financial services and insurance 1,091,853 967,810 862,033
Healthcare 696,266 608,169 489,855
Other 554,393 507,453 485,091
Total $ 7,114,706 $ 6,324,473 $ 5,587,015
The following table presents revenue by geographical locations where the Company’s services are delivered.
Shown below are the countries that account for the Company’s revenue for the periods presented:

2023 2022 2021
Revenue by geography:
Philippines $ 1,585,878 $ 1,476,706 $ 1,335,326
United States 1,304,797 1,388,514 884,777
India 898,250 811,492 723,495
Canada 317,410 326,162 338,255
Germany 232,729 232,282 233,001
Great Britain 205,437 211,219 307,109
Others 2,570,205 1,878,098 1,765,052
Total $ 7,114,706 $ 6,324,473 $ 5,587,015
Deferred revenue contract liabilities and deferred costs to obtain or fulfill a contract are not material.
NOTE 11—PENSION AND EMPLOYEE BENEFITS PLANS:
The Company has a 401(k) plan in the United States under which eligible employees may contribute up to the
maximum amount as provided by law. Employees become eligible to participate in the 401(k) plan on the first day
of the month after their employment date. The Company may make discretionary contributions under the plan.
Employees in most of the Company’s non-U.S. legal entities are covered by government mandated defined
contribution plans. During fiscal years 2023, 2022 and 2021, the Company contributed $89,767, $83,792
and
$72,561, respectively, to defined contribution plans.
Defined Benefit Plans
For eligible employees in the United States, the Company maintains a frozen defined benefit pension plan (“the
cash balance plan”), which includes both a qualified and non-qualified portion. The pension benefit formula for the
cash balance plan is determined by a combination of compensation, age-based credits and annual guaranteed
interest credits. The qualified portion of the cash balance plan has been funded through contributions made to a trust
fund.
The Company maintains funded or unfunded defined benefit pension or retirement plans for certain eligible
employees in the Philippines, Malaysia, India, and France. 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.
The Company’s measurement date for all defined benefit plans and other post-retirement benefits is November
30. The plan assumptions for both the U.S. and non-U.S. defined benefit pension plans are evaluated annually and
are updated as deemed necessary. Net benefit costs related to defined benefit plans were $11,328, $9,437 and
$13,427, during fiscal years 2023, 2022 and 2021, respectively.
Components of pension cost for the Company’s defined benefit plans are as follows:

2023 2022 2021
Service costs $ 6,937 $ 7,031 $ 8,148
Interest costs on projected benefit obligation 10,306 6,828 6,284
Expected return on plan assets (6,208) (6,562) (6,032)
Amortization and deferrals, net 98 1,540 4,542
Settlement charges 195 600 485
Total pension costs $ 11,328 $ 9,437 $ 13,427
Service costs are recorded in cost of services and selling, general and administrative expenses while the
remaining components of total pension costs are recorded within other expense (income), net in the consolidated
statements of operations.
The status of the Company’s defined benefit plans is summarized below:

2023 2022
Change in Benefit Obligation:
Benefit obligation at beginning of year $ 209,166 $ 266,620
Service costs 6,937 7,031
Interest costs 10,306 6,828
Actuarial gains (1) (1,942) (43,290)
Benefits paid (13,761) (16,899)
Acquisitions 12,499 —
Settlements (14,771) (4,676)
Foreign currency adjustments 131 (6,448)
Projected obligation at end of year $ 208,565 $ 209,166
Change in Plan Assets:

Fair value of plan assets at beginning of year $ 137,351 $ 161,931
Actual return on assets 2,358 (20,648)
Settlements (14,771) (5,195)
Employer contributions 12,143 12,776
Benefits paid (10,119) (10,754)
Foreign currency adjustments (210) (759)
Fair value of plan assets at end of year $ 126,752 $ 137,351
Funded Status of Plans:

Unfunded status $ 81,813 $ 71,815
(1) The actuarial gains in fiscal year 2022 were primarily due to an increase in the discount rate for the Company’s cash balance plan as of the
November 30, 2022 measurement date.
Amounts recognized in the consolidated balance sheet and recorded within other accrued liabilities and
other long-term liabilities as of November 30, 2023 and 2022 consist of the following:
As of November 30,
2023 2022
Current liability $ 16,946 $ 14,913
Non-current liability 64,867 56,902
Total $ 81,813 $ 71,815
The accumulated benefit obligation for all defined benefit pension plans was $188,058 and $200,198 at
November 30, 2023 and 2022, respectively.
The following weighted-average rates were used in determining the benefit obligations as of November 30,
2023 and 2022:
As of November 30,
2023 2022
Discount rate 3.6% - 7.1% 4.0% - 7.5%
Interest crediting rate for cash balance plan 4.0 % 4.0 %
Expected rate of future compensation growth 1.8% - 8.0% 1.8% - 8.8%
The following weighted-average rates were used in determining the pension costs for the fiscal years ended
November 30, 2023 and 2022:

2023 2022
Discount rate 4.0% - 7.5% 1.2% - 5.3%
Interest crediting rate for cash balance plan 4.0 % 4.0 %
Expected return on plan assets 1.0% - 7.0% 1.0% - 7.0%
Expected rate of future compensation growth 1.8% - 8.8% 1.8% - 10.0%
For the cash balance plan, the discount rate reflects the rate at which benefits could effectively be settled and is
based on current investment yields of high-quality corporate bonds. The Company uses an actuarially-developed
yield curve approach to match the timing of cash flows of expected future benefit payments by applying specific
spot rates along the yield curve to determine the assumed discount rate.
The range of discount rates utilized in determining the pension cost and projected benefit obligation of the
Company’s defined benefit plans reflects a lower prevalent rate applicable to the frozen cash balance plan for
eligible employees in U.S. and a higher applicable rate for the unfunded defined benefit plan for certain eligible
employees in the Philippines, France and Malaysia. The plans outside the U.S. represented approximately 39% and
28% of the Company’s total projected benefit obligation for all defined benefit plans as of November 30, 2023 and
2022, respectively.
Plan Assets
As of November 30, 2023 and 2022, plan assets for the cash balance plan consisted of common/collective trusts
(of which approximately 49% are invested in equity backed funds and approximately 51% are invested in funds in
fixed income instruments) and a private equity fund. The Company’s targeted allocation was 50% equity and 50%
fixed income. The investment objectives for the plan assets are to generate returns that will enable the plan to meet
its future obligations. The Company’s expected long-term rate of return was determined based on the asset mix of
the plan, projected returns, past performance and other factors. The following table sets forth by level within the fair
value hierarchy, total plan assets at fair value as of November 30, 2023 and 2022, including the cash balance plan
and other funded benefit plans:
As of Quoted Prices in As of
Active Markets for Significant
As of Other As of
November 30, Identical Assets Observable Unobservable
Significant
Investments 2023 (Level 1) Inputs (Level 2) Inputs (Level 3)
Cash and cash equivalents $ 3,951 $ 3,951 $ — $ —
Common/collective trusts:
Fixed income 55,550 — 55,550 —
U.S. large cap 24,816 — 24,816 —
U.S. small cap 6,641 — 6,641 —
International equity 25,556 — 25,556 —
Governmental bonds 6,245 — 6,245 —
Corporate bonds 3,955 — 3,955 —
Investment funds — — — —
Limited partnership 38 — — 38
Total investments $ 126,752 $ 3,951 $ 122,763 $ 38
As of Quoted Prices in As of
Active Markets for Significant
As of Other As of
November 30, Identical Assets Observable Unobservable
Significant
Investments 2022 (Level 1) Inputs (Level 2) Inputs (Level 3)
Cash and cash equivalents $ 4,034 $ 4,034 $ — $ —
Common/collective trusts:
Fixed income 47,439 — 47,439 —
U.S. large cap 31,352 — 31,352 —
U.S. small cap 8,567 — 8,567 —
International equity 36,773 — 36,773 —
Governmental bonds 6,073 — 6,073 —
Corporate bonds 2,998 — 2,998 —
Investment funds — — — —
Limited partnership 115 — — 115
Total investments $ 137,351 $ 4,034 $ 133,202 $ 115
The Company’s cash balance plan holds level 2 investments in common/collective trust funds that are public
investment vehicles valued using a net asset value (“NAV”) provided by the manager of each fund. The NAV is
based on the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV’s
unit price is quoted on a private market that may not be active. However, the NAV is based on the fair value of the
underlying securities within the fund, which are traded on an active market, and valued at the closing price reported
on the active market on which those individual securities are traded. The significant investment strategies of the
funds are as described in the financial statements provided by each fund. There are no restrictions on redemptions
from these funds. Level 3 investments are equity based funds that primarily invest in domestic early stage capital
funds.
Benefit Payments
The following table details expected benefit payments for the cash balance plan and other defined benefit plans:

2024 $ 31,972
2025 27,109
2026 24,723
2027 23,079
2028 21,847
Thereafter 95,187
Total $ 223,917
The Company expects to make approximately $4,522 in contributions during fiscal year 2024.
NOTE 12—LEASES:
The Company leases certain of its facilities and equipment under operating lease agreements, which expire in
various periods through 2037. The Company’s finance leases are not material.
The following table presents the various components of operating lease costs:

2023 2022 2021
Operating lease cost $ 216,774 $ 199,609 $ 203,508
Short-term lease cost 21,802 20,451 15,767
Variable lease cost 58,283 45,997 40,215
Sublease income (5,394) (3,226) (1,738)
Total operating lease cost $ 291,465 $ 262,831 $ 257,752
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 November 30, 2023:

2024 $ 277,969
2025 227,589
2026 161,175
2027 108,655
2028 74,024
Thereafter 151,430
Total payments 1,000,842
Less: imputed interest* 148,542
Total present value of lease payments $ 852,300
*Imputed interest represents the difference between undiscounted cash flows and discounted cash flows.
The following amounts were recorded in the consolidated balance sheet as of November 30, 2023 and 2022
related to the Company’s operating leases:
As of November 30,
Operating leases Balance sheet location 2023 2022
Operating lease ROU assets Other assets, net $ 813,590 $ 473,039
Current operating lease liabilities Other accrued liabilities 229,010 158,801
Non-current operating lease liabilities Other long-term liabilities 623,290 340,673
The following table presents supplemental cash flow information related to the Company’s operating leases.
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:

Cash flow information 2023 2022 2021
Cash paid for amounts included in the measurement of lease liabilities $ 225,142 $ 196,168 $ 200,096
Non-cash ROU assets obtained in exchange for lease liabilities 152,071 191,055 156,406
The weighted-average remaining lease term and discount rate as of November 30, 2023 and 2022, respectively,
were as follows:
As of November 30,
Operating lease term and discount rate 2023 2022
Weighted-average remaining lease term (years) 4.88 3.72
Weighted-average discount rate 6.41 % 5.24 %

NOTE 13—INCOME TAXES:
The sources of income before the provision for income taxes are as follows:

2023 2022 2021
United States $ (51,820) $ 7,883 $ 66,274
Foreign 460,048 597,120 489,422
Total income before income taxes $ 408,228 $ 605,003 $ 555,696
Provision for income taxes consists of the following:

2023 2022 2021
Current tax provision (benefit):
Federal $ 78,961 $ 65,423 $ 54,809
State 11,064 5,151 8,058
Foreign 126,072 129,613 112,981
$ 216,097 $ 200,187 $ 175,848
Deferred tax provision (benefit):
Federal $ (97,371) $ (19,596) $ (19,119)
State (12,850) (12,303) (2,798)
Foreign (11,490) 1,075 (3,812)
(121,711) (30,824) (25,729)
Total income tax provision $ 94,386 $ 169,363 $ 150,119
The following presents the breakdown of net deferred tax liabilities after netting by taxing jurisdiction:
As of November 30,
2023 2022
Deferred tax assets $ 72,333 $ 48,541
Deferred tax liabilities 414,246 105,458
Total net deferred tax liabilities $ 341,913 $ 56,917
Net deferred tax liabilities consist of the following:
As of November 30,
2023 2022
Assets:
Net operating losses $ 138,930 $ 143,593
Accruals and other reserves 55,528 41,119
Depreciation and amortization 73,234 13,319
U.S. interest limitation carry forward 33,318 4,026
Share-based compensation expense 7,867 7,505
Deferred revenue 5,429 4,335
Tax credits 5,082 8,415
Foreign tax credit 915 1,373
Operating lease liabilities 190,348 95,935
Intercompany loans payable 81,654 62,544
Other 37,713 17,616
Gross deferred tax assets 630,018 399,780
Valuation allowance (117,679) (103,169)
Liabilities:
Intangible assets $ 636,194 $ 232,930
Unremitted non-US earnings 45,250 31,223
Operating lease right-of-use assets 172,808 89,375
Total deferred tax liabilities 854,252 353,528
Net deferred tax liabilities $ 341,913 $ 56,917
The valuation allowance relates primarily to certain state and foreign net operating loss carry forwards, foreign
deferred items and state credits. The Company’s assessment is that it is not more likely than not that these deferred
tax assets will be realized.
A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate is as
follows:
2023 2022 2021
Federal statutory income tax rate 21.0 % 21.0 % 21.0 %
State taxes, net of federal income tax benefit (1.0)% (1.4)% 0.6 %
International rate difference (2.3)% (2.7)% (1.0)%
Withholding taxes 2.5 % 1.1 % 0.4 %
Uncertain tax benefits 1.3 % (0.3)% 0.3 %
Changes in valuation allowance 1.7 % 1.3 % (1.6)%
Impact of inclusion of foreign income (1) (4.7)% 9.2 % 2.8 %
Other (2) 4.6 % (0.2)% 4.5 %
Effective income tax rate 23.1 % 28.0 % 27.0 %
(1) Represents Subpart F income, Base Erosion and Anti-Abuse Tax (BEAT), and Global Intangible Low-Taxed Income (GILTI) (less Section
250 deduction), net of associated foreign tax credits.
(2) Includes tax costs related to future legal entity restructuring for the fiscal year ended November 30, 2023. Includes additional tax gain on
the sale of Concentrix Insurance Solutions for the fiscal year ended November 30, 2021.
The Company’s U.S. business has sufficient cash flow and liquidity to fund its operating requirements and the
Company expects and intends that profits earned outside the United States will be fully utilized and reinvested
outside of the United States with the exception of earnings of certain acquired non-U.S. entities. The Company has
recorded deferred tax liabilities related to non-U.S. withholding taxes on the earnings of its non-U.S. subsidiaries
likely to be repatriated in the future.
As of November 30, 2023, the Company had approximately $2,078,260 of undistributed earnings of its non-
U.S. subsidiaries for which it has not provided for non-U.S. withholding taxes and state taxes because such earnings
are intended to be reinvested indefinitely in international operations. It is not practicable to determine the amount of
applicable taxes that would be due if such earnings were distributed. Accordingly, the Company has not
provisioned
U.S. state taxes and non-U.S. withholding taxes on the non-U.S. legal entities for which the earnings are
permanently reinvested.
As of November 30, 2023, the Company had net operating loss carry forwards of approximately $310,536 and
$40,792 for federal and state purposes, respectively. The federal net operating loss carry forward and the state net
operating loss carry forwards will begin to expire in the fiscal year ending November 30, 2024. The Company also
had approximately $179,929 of foreign net operating loss carry forwards that will also begin to expire in fiscal year
ending November 30, 2024 if not used. In addition, the Company has approximately $6,384 of various federal and
state income tax credit carry forwards that, if not used, will begin to expire in the fiscal year ending November 30,
2024. Utilization of the acquired loss carry forwards may be limited pursuant to Section 382 of the Internal
Revenue Code of 1986.
The Company enjoys tax holidays in certain jurisdictions, primarily Algeria, China, Colombia, Costa Rica,
Dominican Republic, El Salvador, Estonia, Guatemala, Honduras, India, Jordan, Latvia, Madagascar, Nicaragua,
the Philippines and Turkey. The tax holidays provide for lower or zero rates of taxation and require various
thresholds of investment and business activities in those jurisdictions. The estimated tax benefits from the above tax
holidays for fiscal years 2023, 2022, and 2021 were approximately $7,961, $10,315, and $9,160, respectively.
The aggregate changes in the balances of gross unrecognized tax benefits, excluding accrued interest and
penalties, during fiscal years 2023, 2022, and 2021 were as follows:
Balance as of November 30, 2020 $ 47,913

Additions based on tax positions related to the current year 3,602
Reductions for tax positions of prior years (1,638)
Settlements (2,108)
Lapse of statute of limitations (426)
Changes due to translation of foreign currencies 104
Balance as of November 30, 2021 47,447
Settlements (4,882)
Lapse of statute of limitations (14,351)
Balance as of November 30, 2022 70,963
Additions based on tax positions related to the prior year / acquisition 6,071
Lapse of statute of limitations (4,938)
Changes due to translation of foreign currencies 1,407
Balance as of November 30, 2023 $ 79,322
The Company conducts business globally and files income tax returns in various U.S. and non-U.S.
jurisdictions. The Company is subject to continuous examination and audits by various tax authorities. Significant
audits are underway in the United States and India. The Company is not aware of any material exposures arising
from these tax audits or in other jurisdictions not already provided for.
Although timing of the resolution of audits and/or appeals is highly uncertain, the Company believes it is
reasonably possible that the total amount of unrecognized tax benefits as of November 30, 2023 could decrease
between $34,854 and $37,817 in the next twelve months. The Company is no longer subject to U.S. federal income
tax audit for returns covering years through fiscal year 2017. The Company is no longer subject to non-U.S. or U.S.
state income tax audits for returns covering years through fiscal year 2012 and fiscal year 2014, respectively.
The liability for unrecognized tax benefits was $87,939 and $78,501 at November 30, 2023 and November 30,
2022, respectively, and is included in other long-term liabilities in the consolidated balance sheets. As of
November 30, 2023 and 2022, $52,779 and $40,793 of the total unrecognized tax benefits, net of federal benefit,
would affect the effective tax rate, if realized. The Company’s policy is to include interest and penalties related to
income taxes, including unrecognized tax benefits, within the provision for income taxes. As of November 30,
2023 and 2022, the Company had accrued $8,617 and $7,538, respectively, in income taxes payable related to
accrued interest and penalties.
NOTE 14—COMMITMENTS AND CONTINGENCIES:
From time to time, the Company receives notices from third parties, including customers and suppliers, seeking
indemnification, payment of money or other actions in connection with claims made against them. Also, from time
to time, the Company has been involved in various bankruptcy preference actions where the Company was a
supplier to the companies now in bankruptcy. In addition, the Company is subject to various other claims, both
asserted and unasserted, that arise in the ordinary course of business. The Company evaluates these claims and
records the related liabilities. It is possible that the liabilities ultimately incurred by the Company could differ from
the amounts recorded.
The Company does not believe that the above commitments and contingencies will have a material adverse
effect on the Company’s results of operations, financial position or cash flows.
NOTE 15—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.

2023 2022 2021
Basic earnings per common share:
Net income $ 313,842 $ 435,049 $ 405,577
Less: net income allocated to participating securities(1) (6,001) (6,631) (5,785)
Net income attributable to common stockholders $ 307,841 $ 428,418 $ 399,792
Weighted average common shares - basic 53,801 51,353 51,355
Basic earnings per common share $ 5.72 $ 8.34 $ 7.78
Diluted earnings per common share:

Net income $ 313,842 $ 435,049 $ 405,577
Less: net income allocated to participating securities(1) (5,978) (6,583) (5,724)
Net income attributable to common stockholders $ 307,864 $ 428,466 $ 399,853
Weighted-average number of common shares - basic 53,801 51,353 51,355

Effect of dilutive securities:
Stock options and restricted stock units 209 387 559
Weighted-average number of common shares - diluted 54,010 51,740 51,914
Diluted earnings per common share $ 5.70 $ 8.28 $ 7.70
(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.
NOTE 16—STOCKHOLDERS’ EQUITY:
Share repurchase program
In September 2021, the Company’s board of directors authorized the repurchase of up to $500,000 of the
Company’s outstanding shares of common stock from time to time as market and business conditions warrant,
including through open market purchases or Rule 10b5-1 trading plans. The repurchase program has no termination
date and may be suspended or discontinued at any time. During the fiscal years ended November 30, 2023 and
2022, the Company repurchased 709 and 842 shares, respectively, of its common stock for an aggregate purchase
price of
$63,958 and $120,819, 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 November 30, 2023,
approximately $290,127 remained available for share repurchases under the existing authorization from the
Company’s board of directors.
During December 2023, the Company repurchased 66 shares of its common stock for an aggregate purchase
price of $6,347.
Dividends
During fiscal years 2023 and 2022, the Company paid the following dividends per share approved by the
Company’s board of directors:
Announcement Date Record Date Per Share Dividend Amount Payment Date
January 18, 2022 January 28, 2022 $0.25 February 8, 2022
March 29, 2022 April 29, 2022 $0.25 May 10, 2022
June 27, 2022 July 29, 2022 $0.25 August 9, 2022
September 28, 2022 October 28, 2022 $0.275 November 8, 2022
January 19, 2023 January 30, 2023 $0.275 February 10, 2023
March 29, 2023 April 28, 2023 $0.275 May 9, 2023
June 28, 2023 July 28, 2023 $0.275 August 8, 2023
September 27, 2023 October 27, 2023 $0.3025 November 7, 2023
On January 24, 2024, the Company announced a cash dividend of $0.3025 per share to stockholders of record
as of February 5, 2024, payable on February 15, 2024.
OBSERVATIONS ON FS
STATEMENT OF FINANCIAL POSITION
The consolidated balance sheets of Concentrix Corporation provide insight into the
company's assets, liabilities, and equity, which are crucial for assessing its financial stability
and operational efficiency.
Beginning with the assets, the company has experienced a significant increase in total assets,
increasing from $6,669,768 in 2022 to $12,491,827 in 2023. This growth is primarily
attributed to a rise in current assets, particularly cash and cash equivalents, which increased
from $145,382 to $295,336. Moreover, accounts receivable and other current assets have also
seen considerable growth, reflecting improved liquidity and operational performance. The
goodwill and intangible assets transaction suggests that company may have made some
acquisitions, which can enhance its market position but requires careful monitoring to ensure
these assets are not overvalued.
On the liabilities side, total liabilities went up from $3,973,864 in 2022 to $8,348,533 in
2023. This increase can be seen in both current and non-current liabilities. Current liabilities,
like accounts payable accrued compensation, have gone up a lot indicating that the company
is managing its cash flow more closely or is growing its business. To ensure the company
maintains a good balance between debt and equity and doesn’t take on too much debt, it’s
important to consider the increase in debts alongside the growth in assets.
Meanwhile, the equity part of the balance sheet shows a significant increase in stockholders'
equity, going from $2,695,904 in 2022 to $4,143,294 in 2023. This growth is mainly because
of retained earnings, which have risen a lot, indicating that the company has been making
money. Issuing common stock also contributed to this increase, suggesting that the company
might be raising funds to help with its growth or to buy other companies. It is vital to have a
strong equity position for attracting investors and protecting against potential financial
problems.
The changes in both assets and liabilities need a careful examination of the transactions and
accounting methods involved. The value of goodwill and intangible assets should be verified
to ensure they aren’t overvalued and that impairment tests are conducted regularly. Moreover,
the increase in current liabilities should be looked at closely to make sure the company can
pay its immediate obligations without putting its operations at risk.
In summary, the consolidated balance sheets of company show’s a period of significant
growth and expansion. While the increased in assets and equity is a positive sign, the increase
in liabilities requires careful attention. This analysis helps in understanding the company's
current financial state and provides insights into its future plans and potential risks.
STATEMENT OF COMPREHENSIVE INCOME
The consolidated statements of comprehensive income for Concentrix Corporation provide
valuable information about the company's financial performance for the fiscal years ending
on November 30, 2023, 2022, and 2021. This income statement shows not only the net
income but also includes other comprehensive income (OCI) items that can significantly
impact the company's equity.
In the fiscal year 2023, the company reported a net income before non-controlling interest of
$313,842, down from $435,640 in 2022. This decline raises questions about what led to the
lower profits, such as increased operational costs or changes in revenue generation. Auditors
will need to investigate the reasons behind this drop, including a close look at how revenue is
recognized and how expenses are managed. Understanding these factors is crucial to ensure
that the financial statements accurately reflect the company's performance.
The other comprehensive income section indicates significant changes in unrealized gains
and losses, particularly related to defined benefit plans and hedges. Furthermore, in 2023,
there were unrealized losses on hedges amounting to $10,610, which is a sharp decline from
the gains seen in previous years. This kind of volatility can affect the company's financial
stability, so auditors may need to assess how effective the hedging strategies are. The
reclassification of net gains and losses on hedges to net income indicates that the company is
actively managing its financial instruments, which requires a careful review of its accounting
practices.
Foreign currency translation adjustments also play’s a significant. In 2023, the company
reported a gain of $102,419 from these adjustments, marking a substantial recovery from
losses in 2022. This emphasizes the importance of understanding how currency fluctuations
impact the finances of the company. Auditors should ensure that the translation methods used
comply with accounting standards to prevent mistakes in the financial statements.
The total comprehensive income of the company in 2023 was $437,864, which is a notable
increase from $190,417 in 2022. Despite a decrease in net income, this growth underscores
the significance of other comprehensive income in understanding the company's financial
performance.
Finally, the statements of comprehensive income of the company offers important insights
into its financial situation and the factors that influence it. The connection between net
income and other comprehensive income emphasizes the need for thorough auditing to ensure
accuracy and adherence to accounting standards. This analysis highlights how comprehensive
income is essential for evaluating a company's overall financial health and effectiveness.
STATEMENT OF SHAREHOLDER’S EQUITY
The Concentrix Corporation's Consolidated Statements of Stockholders' Equity reveal
that the company use fiscal year in reporting their financial statement. It ends in November
30. Its statement indicates important changes in Concentrix equity structure during 2021 up to
2023. The central changes are the issuance of common stock related to acquisitions and the
strategic repurchase of shares. In 2023, the statement revealed that Concentrix issued
additional shares as part of its acquisition activities which resulted in an increase in their
additional paid-in capital to $3.58 billion. At the same time, the company continued to
repurchase shares which resulted to buying back $63.9 million worth of stock. This method
shows not only the commitment of the company to managing shareholder value but also
signals their confidence in its future prospects.
Retained earnings also increased significantly throughout this time, reaching $1.02
billion by the end of 2023. This rise was mostly due to the company's net income of $313.8
million. However, Concentrix paid out $63.5 million in dividends, reducing retained earnings
marginally. The company's ability to maintain large dividend payments while increasing
retained earnings demonstrates its high profitability and commitment to rewarding
shareholders. Despite these distributions, Concentrix effectively increased its equity,
demonstrating the appropriate utilization of operational income.
Lastly, the reversal of other comprehensive income, from a loss of $245.2 million in
2022 to a gain of $124 million in 2023, is an important factor in the 2023 equity statement.
This improvement was the result from the favorable changes in foreign currency translation
and other comprehensive income components. This significantly boosted the company's
overall equity resulting to an increase of total equity from $2.69 billion in 2022 to $4.14
billion in 2023. Through the combination of Concentrix's strategic acquisitions, share
repurchases, and solid retained earnings, the equity is consistently growing which sets it well
for continued expansion and financial stability.
STATEMENT OF CASH FLOWS
The Concentrix Corporation's Consolidated Statements of Cash Flows from 2021 to
2023 shows how excellent is the cash generating capabilities of the company even in the face
of substantial investments and financing efforts. The statement also reveals that the
company's operating revenue increased from $600.7 million in 2022 to $678 million in 2023
which highlights the company's strong success. This growth was due to the strong net income
of $313.8 million, as well as considerable non-cash charges such as $173.5 million in
depreciation and $214.8 million in amortization. Furthermore, the favorable working capital
adjustments led to the company's strong cash flow which demonstrated the good resource
management.
In terms of investment, the corporation reported large cash outflows of $2.1 billion in
2023. This outflow was mostly caused by business acquisitions, with Concentrix investing
$1.91 billion to grow its operations. The capital expenditures also climbed to $180.5 million
from $140 million in 2022 which indicates that the company continued to invest in its
infrastructure and technologies. Although these costs are short-term financial drains, they are
part of a broader plan aiming for long-term growth and positioning the organization for future
success.
Concentrix also reported solid financing activities in 2023, with a net cash inflow of
$1.8 billion. This was primarily driven by the issuance of Senior Notes, which raised $2.13
billion. The revenues were utilized to repay borrowing facilities and fund the company's
acquisition strategy. Despite spending $63.9 million on share repurchases and $63.5 million
on dividend payments, Concentrix completed the year with an improved cash position of
$516.5 million, up from $157.5 million in 2022. This increased liquidity, together with strong
finance and operational cash flow management, positions the firm well for future
development and stability, even in the middle of large investment initiatives.
NOTES TO FINANCIAL STATEMENT
Notes explain the accounting principles and policies used in preparing the financial
statements, helping stakeholders understand how financial data is measured and presented.
Concentrix prepared financial statement in accordance with General Accepted Accounting
Principle in the United States of America. They offer insights into significant events,
transactions, and changes in the company's financial condition, providing context that is
crucial for proper analysis. Concentrix Corporation, like many publicly traded companies in
the United States, adapts Generally Accepted Accounting Principles (GAAP) for several key
reasons:
1. Revenue Recognition:
The Concentrix Corporation generates revenue mainly from technological services.
Revenues reported net of taxes collected from customers and remitted it to the government.
The company billed the clients after services are performed. Services are often billed in a
fixed priced per transactions. Certain contracts may include incentives, with revenue from
this arrangement treated as consideration when estimable and unlikely to reverse and the
duration may vary, usually from less than 1 year to over 5 years. These contracts are
recognized over time using a straight-line basis over the term of the contract. (PFRS 15)
2. Goodwill and Intangible Assets:
The Concentrix conducts an annual impairment test on goodwill during the fourth quarter
of its fiscal year and at other times when there are indicators that the carrying amount of
goodwill may not be recoverable. The testing for impairment of goodwill is conducted at the
level of the reporting unit. After assessing the current year, the Company determined that
there was no need for impairment charges for the Company's reporting unit. There was no
impairment charges related to goodwill recorded by the Company in the three-year period
ending on November 30, 2023. (Note 6.)
3. Leases:
Under PFRS 16, company showed a full disclosure of company’s leases of facilities and
equipment under their operation. When the Company is the lessee, all leases with a term of
more than 12 months are recognized as right-of-use (“ROU”) assets and associated lease
liabilities in the consolidated balance sheet. Lease liabilities are measured at the lease
commencement date and determined using the present value of the lease payments not yet
paid, at the Company’s incremental borrowing rate. The operation payment is presented in
Cash Flow Statement under the Operating Activities.
4. Borrowings:
On August 2, 2023, the Company released three sets of Senior Notes: 800,000 of 6.650%
notes expiring in 2026, 800,000 of 6.600% notes expiring in 2028, and 550,000 of 6.850%
notes expiring in 2033, for a total of 2.15 billion. These notes were distributed in a public
offering approved by a registration statement that was already valid. An agreement with
standard clauses governs’ their actions, prohibiting Concentrix Corporation and its
subsidiaries from taking certain actions such as incurring liens and selling assets. The funds
from the Senior Notes, along with 294,702 from a term loan and cash reserves, were utilized
to finance the Webhelp Combination, pay off current liabilities, and handle associated
expenses. The company will spread out about 19,300 in debt discounts and issuance costs for
these notes over the period of their maturities.
Concentrix established a 364-day Bridge Facility for the merger of Webhelp. Due to
constraints in its prior credit arrangement, the company amended it on April 21, 2023, to
allow for debt linked to acquisitions. The updated Credit Agreement extends a senior
unsecured revolving credit line of up to 1,042,500 and a term loan of approximately
2,144,700, with a balance of about 1,950,000 as of November 30, 2023.The date of maturity
is December 27, 2026. Interest on loans is based on SOFR or benchmark rates, and changes
are influenced by credit scores. The company implements standard contracts, like leverage
and interest coverage ratios. In the 2023 fiscal year, the Company spent 25,000 on financing
fees and 21,617 on amendment fees.
Concentrix amended to its Securitization Facility on July 6, 2022, raising the borrowing
limit to 500,000 and pushing the termination date to July 5, 2024. Interest rates were
changed, with commercial paper loans costing an additional 0.70% and other loans at SOFR
plus a 0.80% premium. The Securitization Facility enables Concentrix and specific
subsidiaries to transfer accounts receivable to a bankruptcy-remote subsidiary to secure loans
of up to 500,000. The Borrower, as a distinct legal entity, bears full responsibility for the
receivables and its assets cannot be accessed by the Company's creditors. They presented the
Financial Statement for November 30, 2023 as it’s full disclosure and computation in
conformity and compliance with PAS 23 including interest and expenses in various projects
of Company. (Note 9)
5. Income Taxes:
As of November 30, 2023, the Company’s U.S. operations have adequate cash flow and
liquidity to meet their needs. Profits from international operations will be reinvested outside
the U.S., except for certain acquired entities. The Company has 2,078,260 in undistributed
earnings from non-U.S. subsidiary, for which withholding taxes have not been reported
because of plans for perpetual reinvestment. In addition, it has 179,929 in overseas losses and
net operating loss carry forwards of $310,536 in federal and 40,792 in state funds, all of
which are scheduled to expire in 2024. Furthermore, any tax credits amounting to $6,384 that
are not utilized by 2024 will lapse.
Concentrix Corporation files tax returns in various locations and undergoes frequent
audits, particularly in the United States. The company anticipated a potential decrease in
unrecognized tax benefits over the twelve-month period ending on November 30, 2023. The
Company is not subject to federal income tax audits for returns through fiscal year 2017 or
for non-U.S. and state income tax audits for returns through fiscal years 2012 and 2014. The
liability for unrecognized tax benefits was $87,939 as of November 30, 2023, compared to
$78,501 the previous year. Notes 13 of Financial Statement showing PAS 12 the
representation of income tax through the fiscal year.
6. Contingencies and Commitments:
Occasionally, the Company is notified by third parties, such as customers and suppliers,
who are requesting indemnification, payment, or other actions related to claims brought
against them. Additionally, on occasion, the Company has participated in several bankruptcy
preference cases as a supplier to companies currently in bankruptcy. Additionally, the
Company encounters many other claims, both acknowledged and unacknowledged, that arise
during normal business activities. The Company reviews the claims and documents the
related responsibilities. It is possible (in conformity of IAS 37) that the Company's debts may
differ from the amounts documented. (Note 14)
And in accordance with PAS 1 to disclose any information required by IFRSs that is not
presented elsewhere in the financial statements and provide additional information that is not
presented elsewhere in the financial statements but is relevant to an understanding of any of
them. The Company describes the background and basis of presentation by presenting the
service that they offer and their description of the company. And they also included the latest
big transition, such as their separation from Synnex Corporation, which can help users. The
following are the summary of significant accounting policies including their purpose that are
not included above:
1. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenue and expense during the reporting period. The Company
evaluates these estimates on a regular basis and bases them on historical experience and on
various assumptions that the Company believes are reasonable. Actual results could differ
from the estimates.
2. Segment Reporting
The Company operates in a single segment, based on how the chief operating decision
maker “CODM” views and evaluates the Company’s operations in making operational and
strategic decisions and assessments of financial performance. The Company’s President and
Chief Executive Officer has been identified as the CODM. (PFRS 8)
3. Cash Equivalents
The Company considers all highly liquid debt instruments purchased with an original
maturity or remaining maturity at the date of purchase of three months or less to be cash
equivalents. Cash equivalents consist principally of money market deposit accounts that are
stated at cost, which approximates fair value. (PAS 7)
4. Accounts Receivables and Allowance for Doubtful Accounts
Accounts receivables are comprised primarily of amounts owed to the Company by
clients and are presented net of an allowance for doubtful accounts. (PAS 1) The company
assesses the collectability of accounts by considering factors such as the overall quality, aging
method, and credit valuation, resulting in an allowance for doubtful accounts. (PAS 37)
5. Unbilled Receivables
For the majority of service contracts, the Company performs the services prior to billing
the client, and this amount is captured as an unbilled receivable included in accounts
receivable, net on the consolidated balance sheet. Billing usually occurs in the month after the
Company performs the services or in accordance with the specific contractual provisions.
(PFRS 15)
6. Accounts Receivable Factoring
Accounts receivable factoring is an agreement which the company continued after the
business combination to sell accounts receivable to certain clients under non-recourse
agreements for cash proceeds.
7. Derivative Financial Instruments
Derivative financial instruments uses’ the standard to account for the derivative statement as
either assets or liabilities and carries them at fair value. (PFRS 9)
8. Software Cost
Software cost by capitalizing the costs incurred to develop software subsequent to
application development stage and capitalizing the costs of extending the life of an existing
software. (PAS 38)
9. Property and Equipment
Property and equipment are stated at cost, less the depreciation and amortization using the
straight-line method and the maintenance and repairs are charged to expense as incurred and
improvements as capitalized. (PAS 16)
10. Business Combination
The allocation of the purchase price for a business combination is determined by the fair
values of the acquired assets, assumed liabilities, and non-controlling interests in the acquired
entity, as of the acquisition date. Goodwill is recorded when the fair value of the purchase
consideration exceeds the fair value of the acquired assets, assumed liabilities, and non-
controlling interests. Charges related to acquisitions are accounted for separately from the
business combination and expensed as they are incurred. These charges primarily include
direct third-party professional and legal fees and integration-related costs. (PFRS 3)
11. Impairment of Long-Lived Assets
The Company reviews the recoverability of its long-lived assets, such as intangible assets
subject to amortization, property and equipment and certain other assets, including lease
right-of-use assets, when events or changes in circumstances occur that indicate the carrying
value of the asset or asset group may not be recoverable. (PAS 36)
12. Concentration of Credit Risk
Financial instruments that potentially subject the Company to significant concentration of
credit risk consist principally of cash and cash equivalents, accounts receivable and derivative
instruments. The Company performs ongoing credit evaluations of its clients’ financial
condition and limits the amount of credit extended when deemed necessary, but generally
requires no collateral. The Company also maintains allowances for potential credit losses.
(PAS 37)
13. Cost of Revenue
Recurring direct operating costs for services are recognized as incurred. Cost of services
revenue consists primarily of personnel costs and transition and initial set up costs. (PFRS
15)
14. Selling, General and Administrative Expenses
Selling, general and administrative expenses are charged to income as incurred. Expenses
of promoting and selling products and services are classified as selling expense and include
such items as compensation, sales commissions and travel. (PAS 38) (PAS 1)
15. Advertising
Costs related to advertising and service promotion expenditures are charged to “Selling,
general and administrative expenses” as incurred. (PAS 38)
16. Foreign Currency Translation
The functional currencies of the legal entities’ financial statements included in these
consolidated financial statements are the local currencies of the legal entities and are
translated into U.S. dollars for consolidation as follows: assets and liabilities at the exchange
rate as of the balance sheet date, equity at the historical rates of exchange, and income and
expense amounts at the average exchange rate for the month. At period end, monetary assets
and liabilities are remeasured to the functional currency using exchange rates in effect at the
balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange
rates. Gains and losses resulting from foreign currency transactions are included within
“Other expense (income), net.” (PAS 21)
17. Other Comprehensive Income
The primary components of other comprehensive income for the Company include
foreign currency translation adjustments arising from the Company’s foreign legal entities,
unrealized gains and losses on qualifying hedges, and changes in unrecognized pension and
post-retirement benefits. (PAS 1)
18. Share-based Compensation
Share-based compensation cost for stock options, restricted stock awards and restricted
stock units is determined based on the fair value at the measurement date. The Company
recognizes share-based compensation cost as expense for these awards ratably on a straight-
line basis over the requisite service period. (PFRS 2)
19. Pension and Post-Retirement Benefits
The funded status of the Company’s pension and other post-retirement benefit plans is
recognized in the consolidated balance sheets. The fair value of plan assets represents the
current market value of assets held by an irrevocable trust fund for the sole benefit of
participants. The measurement of the benefit obligation is based on the Company’s estimates
and actuarial valuations. These valuations reflect the terms of the plans and use participant-
specific information such as compensation, age and years of service, as well as certain key
assumptions that require significant judgment, including, but not limited to, estimates of
discount rates, expected return on plan assets, inflation, rate of compensation increases,
interest crediting rates and mortality rates. The assumptions used are reviewed on an annual
basis. (PAS 19)
20. Earnings per Share
Basic and diluted earnings per common share are calculated using the two-class method.
The two-class method is an earnings allocation proportional to the respective ownership
among holders of common stock and participating securities. (PAS 33)
21. Treasury Stock
Repurchases of shares of common stock are accounted for at cost and are included as a
component of stockholders’ equity in the consolidated balance sheets. (PAS 1)
22. Accounting Pronouncements Recently Adopted
In December 2019, the Financial Accounting Standards Board (the “FASB”) issued new
guidance that simplified the accounting for income taxes. In November 2023, the FASB
issued accounting standards update (“ASU”) 2023-07, which enhances the disclosures
required for reportable segments in annual and interim consolidated financial statements. In
December 2023, the FASB issued ASU 2023-09, which requires enhanced income tax
disclosures, including disaggregation of information in the rate reconciliation table and
disaggregated information related to income taxes paid. No other new accounting
pronouncements recently adopted or issued had or are expected to have a material impact on
the consolidated financial statements.
They are included since they are the measurement basis used in preparing the financial
statement and the other accounting policies that are used are relevant in understanding of the
financial statement, which is in accordance with the accounting and reporting standard. And
the notes are presented in a systematic manner. And in later notes will be cross-referenced
from the financial statements.
AUDIT REPORT
Here are five observations based on the audit report:
1. Effective Internal Control: The consolidated financial statements were found to present the
Company's financial position fairly, indicating effective internal control over financial
reporting, excluding Webhelp.
2. Risk of Material Misstatement: The audit identified risks related to material misstatements
due to error or fraud, necessitating a thorough examination of amounts and disclosures.
3. Critical Audit Matters: Evaluating the acquisition-date fair value of the customer
relationships intangible asset was highlighted as a critical audit matter due to its complexity
and subjective nature.
4. Specialized Skills Required: The audit required specialized knowledge to assess internal
controls related to the valuation process, indicating the complexity involved in this area.
5. Revenue Evaluation: The audit recognized the need for sufficient evidence regarding
revenue, which totalled $7,115 million, primarily from Customer Experience solutions and
technology.
REFERENCES
IFRS 15: Revenue from Contracts with Customers
International Auditing Standards (ISA)
AICPA Code of Professional Conduct
Connext-BPO-and-the-Philippines-1.pdf
Punongbayan & Araullo. (2014). Doing business in the Philippines for Business Process
Outsourcing (BPO) companies (2014th ed.).
https://www.grantthornton.com.ph/globalassets/publications/doing-business/doing-business-
in-the-philippines-for-bpos_2014_edition.pdf
MODULE 2 - Audit of the BPO Industry. (2024, April 17). Course Sidekick; Capiz State
University - Roxas City Main Campus. https://www.coursesidekick.com/information-
systems/17049538
https://www.cgsinc.com/blog/the-evolution-of-business-process-outsourcing
https://asia.nikkei.com/Business/Companies/Outsourcing-shares-fall-after-accounting-
irregularities-found
https://www.reuters.com/markets/asia-pacific/outsourcing-inc-discloses-accounting-issues-
after-internal-probe-2022-02-08/
https://www.outsourcing.co.jp/en/company/philosophy
https://www.lawinsider.com/dictionary/premature-revenue-recognition#:~:text=Premature
%20revenue%20recognition%20means%20recording,.%2C%20California%20Micro
%20Devices).
https://www.yeoandyeo.com/resource/early-revenue-recognition-not-just-bad-accounting-
butfraud#:~:text=Early%20revenue%20recognition%2C%20which%20distorts,such
%20activities%20on%20your%20watch.
https://fastercapital.com/content/Channel-stuffing--The-Art-of-Inflating-Sales-through-
Aggressive-Accounting.html#Introduction-to-Channel-Stuffing-in-Accounting
https://www.icaew.com/technical/corporate-reporting/ifrs/ifrs-standards
https://news.outsourceaccelerator.com/outsourcing-inc-private-fraud-investigations/
https://news.outsourceaccelerator.com/outsourcing-inc-internal-fraud-probe/
https://news.outsourceaccelerator.com/outsourcing-inc-delays-q2-report/?utm_source=
%28referral%29&utm_medium=news+article&utm_campaign=NPR+Referral
https://news.outsourceaccelerator.com/outsourcing-inc-internal-fraud-probe/
https://news.outsourceaccelerator.com/outsourcing-inc-private-fraud-investigations/
https://www.jpx.co.jp/english/news/1023/20220224-11.html
https://cbos.com.ph/legal-requirements-for-business-process-outsourcing-bpo-companies/
https://www.linkedin.com/pulse/evolution-bpo-historical-perspective-sourceover-tmb5f
https://ir.concentrix.com/financials/annual-reports
https://corporatefinanceinstitute.com/resources/management/business-process-outsourcing-
bpo/
https://www.linkedin.com/pulse/legal-framework-regulations-bpos-philippines-
bpophilippines-4wmbc
https://www.linkedin.com/pulse/outsourcing-laws-philippines-tony-fawaz
GROUP MEMBERS AND CONTRIBUTIONS
Overview- Bermisa, Ann-Jelyne S.
Pua, Nouella Mae
History/Background- Abuan, Alyana Francheska N.
Bautista, Cherrielyn P.
Audit&Tax Consideration- Corpuz, Arabella Grace G.
Escario, Elaiza P.
FS Standards, Framework and Laws- Miguel, Eulyzza T.
Gallena, Christine Joy L.
Audit Risks- Cuaresma, Mary Kathrine M.
De Leon, Michaela Justine D.
State Compliances- Dasalla, John Denver C.
Yuson, Mitch Yvan M.
Case Study- Farnacio, Rochelle A.
Ferrer, Rose Dianne E.
Financial Position and Financial Performance- Nunez, Kimberly P.
Changes in equity and Cash Flow- Agbayani,
Notes to Financial Statement- Paul and Karl De Asis, Paul M.
Audit report- Domingo, John Fred Lester R.

Bpo Report

Uploaded by

Copyright:

Available Formats

Bpo Report

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bpo Report

Uploaded by

Copyright:

Available Formats

OVERVIEW

2. Philippine Accounting Standards (PAS):

To the Stockholders and Board of Directors

Basis for Opinions

Definition and Limitations of Internal Control Over Financial Reporting

Critical Audit Matters

Fair value of acquired intangible assets

Sufficiency of audit evidence over revenue

/s/ KPMG LLP

We have served as the Company’s auditor since

2019. Cincinnati, Ohio

November 30, 2023 November 30, 2022

LIABILITIES AND EQUITY

Fiscal Years Ended November 30,

Earnings per common share:

Fiscal Years Ended November 30,

Concentrix Corporation Stockholders’ Equity

Common Stock Treasury stock

non- Additional parent other

Fiscal Years Ended November 30,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTE 1—BACKGROUND AND BASIS OF PRESENTATION:

Basis of presentation (including principles of consolidation)

NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Accounts receivable and allowance for doubtful accounts

Accounts receivable factoring

Derivative financial instruments

Property and equipment

Equipment and furniture 3 - 10 years

Goodwill and intangible assets

Customer relationships 10 - 15 years

Impairment of long-lived assets

Concentration of credit risk

Selling, general and administrative expenses

Foreign currency translations

Pension and post-retirement benefits

Earnings per common share

NOTE 3—ACQUISITIONS AND DIVESTITURES:

Preliminary purchase price consideration

Cash consideration for Shares (1) $ 529,160

Total consideration transferred $ 4,274,000

The preliminary amounts allocated to intangible assets are as follows:

Gross Carrying Weighted-Average Amortization

Supplemental Pro Forma Information (unaudited)

Fiscal Years Ended November 30,

Fiscal Year Ended

Purchase price consideration

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

Cash consideration for PK stock (1) $ 1,177,342

Purchase price allocation

Liabilities assumed and non-controlling interest:

Total consideration transferred $ 1,610,630

Gross Carrying Weighted-Average Acceleration

Purchase price consideration

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

Cash consideration for ServiceSource stock (1) $ 150,392

Purchase price allocation

Total consideration transferred $ 167,159