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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________to________

Commission file number: 001-35418
https://cdn.kscope.io/c8c91136158076af37eaa4eb43a7a999-epam-20210331_g1.jpg
EPAM SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware22-3536104
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
41 University DriveSuite 20218940
NewtownPennsylvania
(Address of principal executive offices)(Zip code)
267-759-9000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol Name of Each Exchange on which Registered
Common Stock, par value $0.001 per shareEPAM New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Title of Each Class
Outstanding as of April 30, 2021
Common Stock, par value $0.001 per share
56,404,766 shares
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EPAM SYSTEMS, INC.

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Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except par value)
 As of
March 31,
2021
As of
December 31,
2020
Assets
Current assets
Cash and cash equivalents$1,372,829 $1,322,143 
Short-term investments 60,007 
Trade receivables and contract assets, net of allowance of $7,575 and $4,886, respectively
585,041 501,062 
Prepaid and other current assets46,848 29,570 
Total current assets2,004,718 1,912,782 
Property and equipment, net164,749 169,533 
Operating lease right-of-use assets, net207,350 228,672 
Intangible assets, net48,547 51,975 
Goodwill210,881 211,956 
Deferred tax assets90,188 92,454 
Other noncurrent assets54,108 53,960 
Total assets$2,780,541 $2,721,332 
Liabilities  
Current liabilities  
Accounts payable$7,168 $10,189 
Accrued compensation and benefits expenses315,991 294,709 
Accrued expenses and other current liabilities75,326 79,690 
Income taxes payable, current9,097 20,603 
Operating lease liabilities, current56,179 60,759 
Total current liabilities463,761 465,950 
Long-term debt25,032 25,038 
Income taxes payable, noncurrent43,925 43,448 
Operating lease liabilities, noncurrent162,005 180,604 
Other noncurrent liabilities21,879 23,274 
Total liabilities716,602 738,314 
Commitments and contingencies (Note 12)
Stockholders’ equity  
Common stock, $0.001 par value; 160,000 shares authorized; 56,401 and 56,128 shares issued, 56,381 and 56,108 shares outstanding at March 31, 2021 and December 31, 2020, respectively
56 56 
Additional paid-in capital647,884 660,771 
Retained earnings1,456,926 1,347,880 
Treasury stock(177)(177)
Accumulated other comprehensive loss(40,750)(25,512)
Total stockholders’ equity2,063,939 1,983,018 
Total liabilities and stockholders’ equity$2,780,541 $2,721,332 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
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EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
 Three Months Ended
March 31,
 20212020
Revenues$780,775 $651,359 
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization)
519,328 423,802 
Selling, general and administrative expenses136,389 125,108 
Depreciation and amortization expense17,807 14,940 
Income from operations107,251 87,509 
Interest and other income, net5,374 2,386 
Foreign exchange gain2,299 6,524 
Income before provision for income taxes114,924 96,419 
Provision for income taxes5,878 10,854 
Net income$109,046 $85,565 
Net income per share:
Basic$1.94 $1.55 
Diluted$1.86 $1.47 
Shares used in calculation of net income per share:
Basic56,170 55,287 
Diluted58,778 58,143 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

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EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In thousands)
 Three Months Ended
March 31,
 20212020
Net income$109,046 $85,565 
Other comprehensive loss:
Change in foreign currency translation adjustments, net of tax(10,531)(28,519)
Change in unrealized loss on hedging instruments, net of tax (4,081)(9,368)
Defined benefit pension plans - actuarial loss, net of tax(626) 
Other comprehensive loss(15,238)(37,887)
Comprehensive income$93,808 $47,678 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
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EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ EQUITY
(Unaudited)
(In thousands) 
 Common StockAdditional Paid-in CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal Stockholders’ Equity
SharesAmountSharesAmount
Balance, January 1, 2021
56,108 $56 $660,771 $1,347,880 20 $(177)$(25,512)$1,983,018 
Restricted stock units vested
248 — — — — — — — 
Restricted stock units withheld for employee taxes
(84)— (31,935)— — — — (31,935)
Stock-based compensation expense
— — 14,624 — — — — 14,624 
Proceeds from stock option exercises
109 — 4,424 — — — — 4,424 
Other comprehensive loss— — — — — — (15,238)(15,238)
Net income
— — — 109,046 — — — 109,046 
Balance, March 31, 2021
56,381 $56 $647,884 $1,456,926 $20 $(177)$(40,750)$2,063,939 

 Common StockAdditional Paid-in CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive LossTotal Stockholders’ Equity
SharesAmountSharesAmount
Balance, January 1, 2020
55,188 $55 $607,051 $1,020,590 20 $(177)$(31,374)$1,596,145 
Cumulative effect of adoption of ASU 2016-13— — — 130 — — — 130 
Adjusted Balance, January 1, 2020
55,188 $55 $607,051 $1,020,720 20 $(177)$(31,374)$1,596,275 
Restricted stock units vested
274 — — — — — — — 
Restricted stock units withheld for employee taxes
(90)— (15,822)— — — — (15,822)
Stock-based compensation expense
— — 12,210 — — — — 12,210 
Proceeds from stock option exercises
217 1 7,140 — — — — 7,141 
Other comprehensive loss— — — — — — (37,887)(37,887)
Net income
— — — 85,565 — — — 85,565 
Balance, March 31, 2020
55,589 $56 $610,579 $1,106,285 20 $(177)$(69,261)$1,647,482 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
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EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
                                               Three Months Ended March 31,
 20212020
Cash flows from operating activities:
Net income$109,046 $85,565 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense17,807 14,940 
Operating lease right-of-use assets amortization expense15,676 16,816 
Bad debt expense2,925 2,719 
Deferred taxes6,692 8,288 
Stock-based compensation expense24,553 11,881 
Other(4,926)5,893 
Changes in assets and liabilities:  
Trade receivables and contract assets(89,395)(51,423)
Prepaid and other assets(8,581)(9,746)
Accounts payable(3,166)(2,407)
Accrued expenses and other liabilities(15,830)5,437 
Operating lease liabilities(16,065)(15,646)
Income taxes payable(25,909)(9,062)
Net cash provided by operating activities12,827 63,255 
Cash flows from investing activities:  
Purchases of property and equipment(11,186)(29,075)
Proceeds from short-term investments60,000  
Acquisition of business, net of cash acquired (Note 2) (10,339)
Purchases of non-marketable securities(1,044)(20,000)
Other investing activities, net691 (71)
Net cash provided by/(used in) investing activities48,461 (59,485)
Cash flows from financing activities:  
Proceeds from stock option exercises4,373 6,850 
Payments of withholding taxes related to net share settlements of restricted stock units(3,304)(1,018)
Payment of contingent consideration for previously acquired business (7,869)
Other financing activities, net260 (9)
Net cash provided by/(used in) financing activities1,329 (2,046)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(11,856)(22,009)
Net increase/(decrease) in cash, cash equivalents and restricted cash50,761 (20,285)
Cash, cash equivalents and restricted cash, beginning of period1,323,533 937,688 
Cash, cash equivalents and restricted cash, end of period$1,374,294 $917,403 


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EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
(Continued)
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets:
                                               As of
March 31,
2021
As of
December 31,
2020
Balance sheet classification
    Cash and cash equivalents$1,372,829 $1,322,143 
Restricted cash in Prepaid and other current assets103 106 
  Restricted cash in Other noncurrent assets1,362 1,284 
    Total restricted cash1,465 1,390 
        Total cash, cash equivalents and restricted cash$1,374,294 $1,323,533 

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(In thousands, except per share data and as otherwise disclosed) 
 
1.BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES    
EPAM Systems, Inc. (the “Company” or “EPAM”) is a leading global provider of digital platform engineering and software development services to customers located around the world, primarily in North America, Europe, Asia and Australia. The Company’s industry expertise includes financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, as well as other emerging industries. The Company is incorporated in Delaware with headquarters in Newtown, Pennsylvania.
Basis of Presentation — The accompanying unaudited condensed consolidated financial statements of EPAM have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP” or “U.S. GAAP”) and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended. The unaudited condensed consolidated financial statements include the financial statements of EPAM Systems, Inc. and its subsidiaries with all intercompany balances and transactions eliminated.
These unaudited condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020 included in its Annual Report on Form 10-K. The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements. Operating results for the interim periods are not necessarily indicative of results that may be expected to occur for the entire year. In management’s opinion, all adjustments considered necessary for a fair presentation of the accompanying unaudited condensed consolidated financial statements have been included, and all adjustments are of a normal and recurring nature.
Adoption of New Accounting Standards
The adoption of new accounting standards did not have a material impact on the Company’s consolidated financial position, results of operations, changes in stockholders’ equity and cash flows.
Pending Accounting Standards
From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that the Company will adopt according to the various timetables the FASB specifies. The Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption.

2.ACQUISITIONS
2020 Acquisitions — During the year ended December 31, 2020, the Company completed two acquisitions with an aggregate purchase price of $22.5 million including contingent consideration with an acquisition-date fair value of $5.3 million. The Company committed to making contingent consideration payments with a maximum amount payable of $18.6 million subject to attainment of specified performance targets in the first and second calendar years after the respective acquisition dates. These acquisitions increased EPAM’s software and service capabilities and expanded EPAM’s offerings in financial services as well as added $7.3 million of intangible assets, consisting mainly of customer relationships. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s condensed consolidated financial statements was not material individually or in the aggregate.
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3.GOODWILL
Goodwill by reportable segment was as follows:
North AmericaEuropeRussiaTotal
Balance as of January 1, 2021
$121,132 $90,106 $718 $211,956 
2020 acquisitions purchase accounting adjustments (24) (24)
Effect of net foreign currency exchange rate changes(353)(692)(6)(1,051)
Balance as of March 31, 2021
$120,779 $89,390 $712 $210,881 
There were no accumulated impairment losses in the North America or Europe reportable segments as of March 31, 2021 or December 31, 2020. The Russia segment had accumulated goodwill impairment losses of $2.2 million as of March 31, 2021 and December 31, 2020.

4.FAIR VALUE MEASUREMENTS
The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following tables present the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020:
As of March 31, 2021
BalanceLevel 1Level 2Level 3
Foreign exchange derivative assets$1,543 $ $1,543 $ 
Total assets measured at fair value on a recurring basis$1,543 $ $1,543 $ 
Foreign exchange derivative liabilities$2,111 $ $2,111 $ 
Contingent consideration2,526   2,526 
Total liabilities measured at fair value on a recurring basis
$4,637 $ $2,111 $2,526 
As of December 31, 2020
BalanceLevel 1Level 2Level 3
Foreign exchange derivative assets$4,955 $ $4,955 $ 
Total assets measured at fair value on a recurring basis$4,955 $ $4,955 $ 
Foreign exchange derivative liabilities$243 $ $243 $ 
Contingent consideration7,470   7,470 
Total liabilities measured at fair value on a recurring basis
$7,713 $ $243 $7,470 
The foreign exchange derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange data at the measurement date. See Note 5 “Derivative Financial Instruments” in the condensed consolidated interim financial statements for additional information regarding derivative financial instruments.

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The fair value of the contingent consideration was determined using a probability-weighted expected return method and is based on the expected future payments to be made to the sellers of the acquired businesses in accordance with the provisions outlined in the respective purchase agreements. Although there is significant judgment involved, the Company believes its estimates and assumptions are reasonable. In determining fair value, the Company considered a variety of factors, including future performance of the acquired businesses using financial projections developed by the Company and market risk assumptions that were derived for revenue growth and earnings before interest and taxes. The Company estimated future payments using the earnout formula and performance targets specified in the purchase agreements and adjusted those estimates to reflect the probability of their achievement. Those weighted-average estimated future payments were then discounted to present value using a rate based on the weighted-average cost of capital of guideline companies. The discount rates used to determine the fair value of contingent consideration for the 2020 Acquisitions ranged from a minimum of 15.5% to a maximum of 17.5%. Changes in financial projections, market risk assumptions, discount rates or probability assumptions related to achieving the various earnout criteria would result in a change in the fair value of the recorded contingent liabilities. Such changes, if any, are recorded within Interest and other income, net in the Company’s condensed consolidated statement of income.
A reconciliation of the beginning and ending balances of Level 3 acquisition-related contingent consideration using significant unobservable inputs for the three months ended March 31, 2021 is as follows:
Amount
Contingent consideration liabilities as of January 1, 2021
$7,470 
Changes in fair value of contingent consideration included in Interest and other income, net (4,944)
Contingent consideration liabilities as of March 31, 2021
$2,526 

Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis
Estimates of fair value of financial instruments not carried at fair value on a recurring basis on the Company’s consolidated balance sheets are generally subjective in nature and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The generally short maturities of certain assets and liabilities result in a number of assets and liabilities for which fair value equals or closely approximates the amount recorded on the Company’s condensed consolidated balance sheets. The following tables present the estimated fair values of the Company’s financial assets and liabilities not measured at fair value on a recurring basis as of the dates indicated:
Fair Value Hierarchy
BalanceEstimated Fair ValueLevel 1Level 2Level 3
March 31, 2021
Financial Assets:
Cash equivalents:
Money market funds$135,706 $135,706 $135,706 $ $ 
Total cash equivalents$135,706 $135,706 $135,706 $ $ 
Restricted cash$1,465 $1,465 $1,465 $ $ 
Employee loans$692 $692 $ $ $692 
Financial Liabilities:
Borrowings under the 2017 Credit Facility$25,008 $25,008 $ $25,008 $ 
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Fair Value Hierarchy
BalanceEstimated Fair ValueLevel 1Level 2Level 3
December 31, 2020
Financial Assets:
Cash equivalents:
Money market funds$153,783 $153,783 $153,783 $ $ 
Total cash equivalents$153,783 $153,783 $153,783 $ $ 
Restricted cash$1,390 $1,390 $1,390 $ $ 
Time deposits included in Short-term investments$60,007 $60,007 $ $60,007 $ 
Employee loans$794 $794 $ $ $794 
Financial Liabilities:
Borrowings under the 2017 Credit Facility$25,007 $25,007 $ $25,007 $ 

Non-Marketable Securities Without Readily Determinable Fair Values
The Company holds investments in equity securities that do not have readily determinable fair values. These investments are recorded at cost and are remeasured to fair value based on certain observable price changes or impairment events as they occur. The carrying amount of these investments was $26.0 million and $25.0 million as of March 31, 2021 and December 31, 2020, respectively and is classified as Other noncurrent assets in the Company’s condensed consolidated balance sheets.


5.DERIVATIVE FINANCIAL INSTRUMENTS
In the normal course of business, the Company uses derivative financial instruments to manage the risk of fluctuations in foreign currency exchange rates. The Company has a hedging program whereby it enters into a series of foreign exchange forward contracts with durations of twelve months or less that are designated as cash flow hedges of forecasted Russian ruble, Polish zloty and Indian rupee transactions. As of March 31, 2021, all of the Company’s foreign exchange forward contracts were designated as hedges and there is no financial collateral (including cash collateral) required to be posted by the Company related to the foreign exchange forward contracts.
The fair value of derivative instruments on the Company’s consolidated balance sheets as of March 31, 2021 and December 31, 2020 were as follows:
As of March 31, 2021As of December 31, 2020
Balance Sheet ClassificationAsset DerivativesLiability DerivativesAsset DerivativesLiability Derivatives
Foreign exchange forward contracts -
Designated as hedging instruments
Prepaid expenses and other current assets$1,543 $4,955 
Accrued expenses and other current liabilities$2,111 $243 


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6.LEASES
The Company leases office space, corporate apartments, office equipment, and vehicles. Many of the Company’s leases contain variable payments including changes in base rent and charges for common area maintenance or other miscellaneous expenses. Due to this variability, the cash flows associated with these variable payments are not included in the minimum lease payments used in determining the right-of-use assets and associated lease liabilities and are recognized in the period in which the obligation for such payments is incurred. The Company’s leases have remaining lease terms ranging from 0.1 to 10.1 years. Certain lease agreements, mainly for office space, include options to extend or terminate the lease before the expiration date. The Company considers such options when determining the lease term when it is reasonably certain that the Company will exercise that option. The Company leases and subleases a portion of its office space to third parties. Lease income and sublease income were immaterial for the three months ended March 31, 2021 and 2020.

During the three months ended March 31, 2021 and 2020, the components of lease expense were as follows:
 Three Months Ended
March 31,
Income Statement Classification20212020
Operating lease costSelling, general and administrative expenses$17,256 $18,863 
Variable lease costSelling, general and administrative expenses2,260 2,635 
Short-term lease costSelling, general and administrative expenses178 540 
Total lease cost$19,694 $22,038 

Supplemental cash flow information related to leases for the three months ended March 31, 2021 and 2020 was as follows:
Three Months Ended
March 31,
 20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases$17,645 $16,891 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$38 $31,252 
Non-cash net (decrease)/ increase due to lease modifications:
Operating lease right-of-use assets$(1,066)$4,584 
Operating lease liabilities$(1,066)$4,573 

Weighted average remaining lease term and discount rate as of March 31, 2021 and 2020 were as follows:
 As of March 31, 2021As of March 31, 2020
Weighted average remaining lease term, in years:
Operating leases5.86.0
Weighted average discount rate:
Operating leases3.0 %3.3 %


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As of March 31, 2021, operating lease liabilities will mature as follows:
Year ending December 31,Lease Payments
2021 (excluding three months ended March 31, 2021)
$47,591 
202248,143 
202336,318 
202431,510 
202522,110 
Thereafter50,842 
Total lease payments236,514 
Less: imputed interest(18,330)
Total$218,184 
The Company had committed to payments of $1.2 million related to operating lease agreements that had not yet commenced as of March 31, 2021. These operating leases will commence on various dates during 2021 with lease terms ranging from 0.6 to 5.0 years. The Company did not have any material finance lease agreements that had not yet commenced.
7.LONG-TERM DEBT
Revolving Line of Credit — On May 24, 2017, the Company entered into an unsecured credit facility (the “2017 Credit Facility”), as may be amended from time to time, with PNC Bank, National Association; PNC Capital Markets LLC; Citibank N.A.; Wells Fargo Bank, National Association; Fifth Third Bank and Santander Bank, N.A. (collectively the “Lenders”). The 2017 Credit Facility provides for a borrowing capacity of $300.0 million, with potential to increase the borrowing capacity up to $400.0 million if certain conditions are met. The 2017 Credit Facility matures on May 24, 2022.
Borrowings under the 2017 Credit Facility may be denominated in U.S. dollars or up to a maximum of $100.0 million equivalent in British pounds sterling, Canadian dollars, euros or Swiss francs and other currencies as may be approved by the administrative agent and the Lenders. Borrowings under the 2017 Credit Facility bear interest at either a base rate or Euro-rate plus a margin based on the Company’s leverage ratio. The base rate is equal to the highest of (a) the Overnight Bank Funding Rate, plus 0.5%, (b) the Prime Rate, and (c) the Daily LIBOR Rate, plus 1.0%. As of March 31, 2021, the Company’s outstanding borrowings are subject to a LIBOR-based interest rate which resets regularly at issuance, based on lending terms.
The 2017 Credit Facility includes customary business and financial covenants that may restrict the Company’s ability to make or pay dividends (other than certain intercompany dividends) if a potential or an actual event of default has occurred or would be triggered. As of March 31, 2021, the Company was in compliance with all covenants contained in the 2017 Credit Facility.
The following table presents the outstanding debt and borrowing capacity of the Company under the 2017 Credit Facility:
 As of
March 31,
2021
As of
December 31,
2020
Outstanding debt$25,000 $25,000 
Interest rate1.1 %1.2 %
Available borrowing capacity$275,000 $275,000 
Current maximum borrowing capacity$300,000 $300,000 

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8.REVENUES
Disaggregation of Revenues
The following tables present the disaggregation of the Company’s revenues by customer location, including a reconciliation of the disaggregated revenues with the reportable segments (Note 13 “Segment Information”) for the periods indicated:
Three Months Ended March 31, 2021
Reportable Segments
North AmericaEuropeRussiaConsolidated Revenues
Customer Locations
North America$454,767 $14,663 $891 $470,321 
Europe17,755 241,554 63 259,372 
CIS1,856 14 28,264 30,134 
APAC475 20,473  20,948 
        Revenues$474,853 $276,704 $29,218 $780,775 

Three Months Ended March 31, 2020
Reportable Segments
North AmericaEuropeRussiaConsolidated Revenues
Customer Locations
North America$377,784 $10,419 $1,627 $389,830 
Europe10,332 212,722 3 223,057 
CIS2,554 12 22,294 24,860 
APAC432 13,180  13,612 
        Revenues$391,102 $236,333 $23,924 $651,359 
The following tables present the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the reportable segments (Note 13 “Segment Information”) for the periods indicated:
Three Months Ended March 31, 2021
Reportable Segments
North AmericaEuropeRussiaConsolidated Revenues
Industry Verticals
Financial Services$69,740 $78,040 $21,078 $168,858 
Business Information & Media87,205 60,157 387 147,749 
Software & Hi-Tech125,586 20,973 505 147,064 
Travel & Consumer69,429 64,624 4,958 139,011 
Life Sciences & Healthcare75,589 15,351 175 91,115 
Emerging Verticals47,304 37,559 2,115 86,978 
        Revenues$474,853 $276,704 $29,218 $780,775 



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Three Months Ended March 31, 2020
Reportable Segments
North AmericaEuropeRussiaConsolidated Revenues
Industry Verticals
Financial Services$47,868 $