Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 18, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SYKE | |
Entity Registrant Name | SYKES ENTERPRISES INC | |
Entity Central Index Key | 0001010612 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 0-28274 | |
Entity Tax Identification Number | 561383460 | |
Entity Address, Address Line One | 400 North Ashley Drive, Suite 2800 | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33602 | |
City Area Code | 813 | |
Local Phone Number | 274-1000 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 41,590,911 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 136,631 | $ 128,697 |
Receivables, net | 351,191 | 347,425 |
Prepaid expenses | 21,681 | 23,754 |
Other current assets | 20,222 | 16,761 |
Total current assets | 529,725 | 516,637 |
Property and equipment, net | 125,739 | 135,418 |
Operating lease right-of-use assets | 210,836 | |
Goodwill, net | 306,050 | 302,517 |
Intangibles, net | 165,509 | 174,031 |
Deferred charges and other assets | 47,982 | 43,364 |
Total assets | 1,385,841 | 1,171,967 |
Current liabilities: | ||
Accounts payable | 25,128 | 26,923 |
Accrued employee compensation and benefits | 104,174 | 95,813 |
Income taxes payable | 126 | 1,433 |
Deferred revenue and customer liabilities | 28,557 | 30,176 |
Operating lease liabilities | 48,864 | |
Other accrued expenses and current liabilities | 25,654 | 31,235 |
Total current liabilities | 232,503 | 185,580 |
Long-term debt | 92,000 | 102,000 |
Long-term income tax liabilities | 22,116 | 23,787 |
Long-term operating lease liabilities | 174,189 | |
Other long-term liabilities | 24,504 | 33,991 |
Total liabilities | 545,312 | 345,358 |
Commitments and loss contingency (Note 13) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value per share, 10,000 shares authorized; no shares issued and outstanding | ||
Common stock, $0.01 par value per share, 200,000 shares authorized; 42,091 and 42,778 shares issued, respectively | 421 | 428 |
Additional paid-in capital | 288,879 | 286,544 |
Retained earnings | 609,791 | 598,788 |
Accumulated other comprehensive income (loss) | (48,564) | (56,775) |
Treasury stock at cost: 408 and 126 shares, respectively | (9,998) | (2,376) |
Total shareholders' equity | 840,529 | 826,609 |
Total liabilities and shareholders' equity | $ 1,385,841 | $ 1,171,967 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 42,091,000 | 42,778,000 |
Treasury stock, shares | 408,000 | 126,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 389,006 | $ 396,785 | $ 791,931 | $ 811,156 |
Operating expenses: | ||||
Direct salaries and related costs | 252,161 | 264,924 | 513,889 | 539,996 |
General and administrative | 104,282 | 102,037 | 208,962 | 204,477 |
Depreciation, net | 13,052 | 14,560 | 26,949 | 29,396 |
Amortization of intangibles | 4,127 | 3,629 | 8,413 | 7,842 |
Impairment of long-lived assets | 129 | 5,175 | 1,711 | 8,701 |
Total operating expenses | 373,751 | 390,325 | 759,924 | 790,412 |
Income from operations | 15,255 | 6,460 | 32,007 | 20,744 |
Other income (expense): | ||||
Interest income | 192 | 175 | 377 | 346 |
Interest (expense) | (1,179) | (1,149) | (2,357) | (2,355) |
Other income (expense), net | (533) | (537) | 77 | (382) |
Total other income (expense), net | (1,520) | (1,511) | (1,903) | (2,391) |
Income before income taxes | 13,735 | 4,949 | 30,104 | 18,353 |
Income taxes | 2,466 | (2,229) | 7,148 | 227 |
Net income | $ 11,269 | $ 7,178 | $ 22,956 | $ 18,126 |
Net income per common share: | ||||
Basic | $ 0.27 | $ 0.17 | $ 0.55 | $ 0.43 |
Diluted | $ 0.27 | $ 0.17 | $ 0.54 | $ 0.43 |
Weighted average common shares outstanding: | ||||
Basic | 42,038 | 42,125 | 42,107 | 42,035 |
Diluted | 42,094 | 42,160 | 42,200 | 42,197 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 11,269 | $ 7,178 | $ 22,956 | $ 18,126 |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation adjustments, net of taxes | 2,339 | (13,597) | 3,701 | (13,306) |
Unrealized gain (loss) on cash flow hedging instruments, net of taxes | 2,828 | (481) | 4,500 | (3,374) |
Unrealized actuarial gain (loss) related to pension liability, net of taxes | 35 | (46) | 20 | (129) |
Unrealized gain (loss) on postretirement obligation, net of taxes | (5) | (10) | (10) | (20) |
Other comprehensive income (loss), net of taxes | 5,197 | (14,134) | 8,211 | (16,829) |
Comprehensive income (loss) | $ 16,466 | $ (6,956) | $ 31,167 | $ 1,297 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2017 | $ 796,479 | $ 429 | $ 282,385 | $ 546,843 | $ (31,104) | $ (2,074) |
Beginning Balance, shares at Dec. 31, 2017 | 42,899 | |||||
Stock-based compensation expense | 2,077 | 2,077 | ||||
Issuance of common stock under equity award plans, net of forfeitures | 59 | (59) | ||||
Issuance of common stock under equity award plans, net of forfeitures, Share | 18 | |||||
Shares repurchased for tax withholding on equity awards | (3,682) | $ (1) | (3,681) | |||
Shares repurchased for tax withholding on equity awards, Share | (118) | |||||
Comprehensive income (loss) | 8,253 | 10,948 | (2,695) | |||
Ending Balance at Mar. 31, 2018 | 806,146 | $ 428 | 280,840 | 560,810 | (33,799) | (2,133) |
Ending Balance, shares at Mar. 31, 2018 | 42,799 | |||||
Beginning Balance at Dec. 31, 2017 | 796,479 | $ 429 | 282,385 | 546,843 | (31,104) | (2,074) |
Beginning Balance, shares at Dec. 31, 2017 | 42,899 | |||||
Comprehensive income (loss) | 1,297 | |||||
Ending Balance at Jun. 30, 2018 | 800,863 | $ 428 | 282,622 | 567,988 | (47,933) | (2,242) |
Ending Balance, shares at Jun. 30, 2018 | 42,821 | |||||
Cumulative effect of accounting change | Accounting Standards Update 2014-09 [Member] | 3,019 | 3,019 | ||||
Beginning Balance at Mar. 31, 2018 | 806,146 | $ 428 | 280,840 | 560,810 | (33,799) | (2,133) |
Beginning Balance, shares at Mar. 31, 2018 | 42,799 | |||||
Stock-based compensation expense | 1,673 | 1,673 | ||||
Issuance of common stock under equity award plans, net of forfeitures | 109 | (109) | ||||
Issuance of common stock under equity award plans, net of forfeitures, Share | 22 | |||||
Comprehensive income (loss) | (6,956) | 7,178 | (14,134) | |||
Ending Balance at Jun. 30, 2018 | 800,863 | $ 428 | 282,622 | 567,988 | (47,933) | (2,242) |
Ending Balance, shares at Jun. 30, 2018 | 42,821 | |||||
Beginning Balance at Dec. 31, 2018 | 826,609 | $ 428 | 286,544 | 598,788 | (56,775) | (2,376) |
Beginning Balance, shares at Dec. 31, 2018 | 42,778 | |||||
Stock-based compensation expense | 1,890 | 1,890 | ||||
Issuance of common stock under equity award plans, net of forfeitures | $ (2) | 182 | (180) | |||
Issuance of common stock under equity award plans, net of forfeitures, Share | (168) | |||||
Shares repurchased for tax withholding on equity awards | (1,269) | (1,269) | ||||
Shares repurchased for tax withholding on equity awards, Share | (45) | |||||
Comprehensive income (loss) | 14,701 | 11,687 | 3,014 | |||
Ending Balance at Mar. 31, 2019 | 842,041 | $ 426 | 287,347 | 610,585 | (53,761) | (2,556) |
Ending Balance, shares at Mar. 31, 2019 | 42,565 | |||||
Beginning Balance at Dec. 31, 2018 | 826,609 | $ 428 | 286,544 | 598,788 | (56,775) | (2,376) |
Beginning Balance, shares at Dec. 31, 2018 | 42,778 | |||||
Repurchase of common stock | (20,178) | |||||
Comprehensive income (loss) | 31,167 | |||||
Ending Balance at Jun. 30, 2019 | 840,529 | $ 421 | 288,879 | 609,791 | (48,564) | (9,998) |
Ending Balance, shares at Jun. 30, 2019 | 42,091 | |||||
Cumulative effect of accounting change | Accounting Standards Update 2016-02 [Member] | 110 | 110 | ||||
Beginning Balance at Mar. 31, 2019 | 842,041 | $ 426 | 287,347 | 610,585 | (53,761) | (2,556) |
Beginning Balance, shares at Mar. 31, 2019 | 42,565 | |||||
Stock-based compensation expense | 2,200 | 2,200 | ||||
Issuance of common stock under equity award plans, net of forfeitures | 123 | (123) | ||||
Issuance of common stock under equity award plans, net of forfeitures, Share | 26 | |||||
Repurchase of common stock | (20,178) | (20,178) | ||||
Retirement of treasury stock | $ (5) | (791) | (12,063) | 12,859 | ||
Retirement of treasury stock, shares | (500) | |||||
Comprehensive income (loss) | 16,466 | 11,269 | 5,197 | |||
Ending Balance at Jun. 30, 2019 | $ 840,529 | $ 421 | $ 288,879 | $ 609,791 | $ (48,564) | $ (9,998) |
Ending Balance, shares at Jun. 30, 2019 | 42,091 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 22,956 | $ 18,126 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 27,066 | 29,651 |
Amortization of intangibles | 8,413 | 7,842 |
Amortization of deferred grants | (181) | (344) |
Impairment losses | 1,711 | 8,701 |
Unrealized foreign currency transaction (gains) losses, net | (603) | (370) |
Stock-based compensation expense | 4,090 | 3,750 |
Deferred income tax provision (benefit) | 325 | 1,070 |
Unrealized (gains) losses and premiums on financial instruments, net | (304) | 625 |
Amortization of deferred loan fees | 140 | 134 |
Other | 417 | (90) |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables, net | (1,214) | (8,370) |
Prepaid expenses | (1,122) | (1,611) |
Other current assets | (896) | (2,016) |
Deferred charges and other assets | (3,196) | (2,186) |
Accounts payable | (2,824) | (5,499) |
Income taxes receivable / payable | (5,225) | (6,526) |
Accrued employee compensation and benefits | 6,489 | (2,349) |
Other accrued expenses and current liabilities | 1,228 | 5,079 |
Deferred revenue and customer liabilities | (2,435) | (155) |
Other long-term liabilities | 1,086 | 1,922 |
Operating lease assets and liabilities | 415 | |
Net cash provided by operating activities | 56,336 | 47,384 |
Cash flows from investing activities: | ||
Capital expenditures | (16,390) | (26,232) |
Purchase of intangible assets | (7,606) | |
Other | 284 | 484 |
Net cash (used for) investing activities | (16,106) | (33,354) |
Cash flows from financing activities: | ||
Payments of long-term debt | (18,000) | (190,000) |
Proceeds from issuance of long-term debt | 8,000 | 5,000 |
Cash paid for repurchase of common stock | (20,178) | |
Shares repurchased for tax withholding on equity awards | (1,269) | (3,682) |
Cash paid for loan fees related to long-term debt | (1,098) | |
Other | (4) | 38 |
Net cash (used for) financing activities | (32,549) | (188,644) |
Effects of exchange rates on cash, cash equivalents and restricted cash | 655 | (6,748) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 8,336 | (181,362) |
Cash, cash equivalents and restricted cash – beginning | 130,231 | 344,805 |
Cash, cash equivalents and restricted cash – ending | 138,567 | 163,443 |
Supplemental disclosures of cash flow information: | ||
Cash paid during period for interest | 1,874 | 1,975 |
Cash paid during period for income taxes | 12,567 | 12,084 |
Non-cash transactions: | ||
Property and equipment additions in accounts payable | 2,663 | 2,637 |
Unrealized gain (loss) on postretirement obligation, net of taxes, in accumulated other comprehensive income (loss) | $ (10) | $ (20) |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation Business — Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a leading provider of multichannel demand generation and global customer engagement services. SYKES provides differentiated full lifecycle customer engagement solutions and services primarily to Global 2000 companies and their end customers, principally within the financial services, communications, technology, transportation & leisure, healthcare and other industries. SYKES primarily provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. SYKES also provides various enterprise support services in the United States that include services for its clients’ internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which include order processing, payment processing, inventory control, product delivery and product returns handling. Additionally, through the Company’s acquisition of robotic processing automation (“RPA”) provider Symphony Ventures Ltd (“Symphony”) coupled with its investment in artificial intelligence (“AI”) through XSell Technologies, Inc. (“XSell”) , the Company also provides a suite of solutions such as consulting, implementation, hosting and managed services that optimizes its differentiated full lifecycle management services platform. The Company has operations in two reportable segments entitled (1) the Americas, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim; and (2) EMEA, which includes Europe, the Middle East and Africa. U.S. 2017 Tax Reform Act On December 20, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was approved by Congress and received presidential approval on December 22, 2017. In general, the 2017 Tax Reform Act reduced the U.S. federal corporate tax rate from 35% to 21%, effective in 2018. The 2017 Tax Reform Act moved from a worldwide business taxation approach to a participation exemption regime. The 2017 Tax Reform Act also imposed base-erosion prevention measures on non-U.S. earnings of U.S. entities, as well as a one-time mandatory deemed repatriation tax on accumulated non-U.S. earnings. The impact of the 2017 Tax Reform Act on the Company’s consolidated financial results began with the fourth quarter of 2017, the period of enactment. See Note 11, Income Taxes, for further information. Acquisitions Symphony Acquisition On October 18, 2018, the Company, as guarantor, and its wholly-owned subsidiary, SEI International Services S.a.r.l, a Luxembourg company, entered into the Symphony Purchase Agreement with Pascal Baker, Ian Barkin, David Brain, David Poole, FIS Nominee Limited, Baronsmead Venture Trust plc and Baronsmead Second Venture Trust plc (together, the “Symphony Sellers”) to acquire all of the outstanding shares of Symphony. Symphony, headquartered in London, England, provides RPA services, offering RPA consulting, implementation, hosting and managed services for front, middle and back-office processes. Symphony serves numerous industries globally, including financial services, healthcare, business services, manufacturing, consumer products, communications, media and entertainment. The aggregate purchase price was GBP 52.5 million ($67.6 million), subject to a post-closing working capital adjustment, of which the Company paid GBP 44.6 million ($57.6 million) at the closing of the transaction on November 1, 2018 using cash on hand as well as $31.0 million of additional borrowings under the Company’s credit agreement. The acquisition date present value of the remaining GBP 7.9 million ($10.0 million) of purchase price has been deferred and will be paid in equal installments over three years, on or around November 1, 2019, 2020 and 2021. The Symphony Purchase Agreement also provides for a three-year, retention based earnout payable in restricted stock units (“RSUs”) with a value of GBP 3.0 million. Subsequent to the finalization of the working capital adjustments during the six months ended June 3 0 , 2019, the purchase price was adjusted to GBP 52.4 million ($ 67.5 million). The acquisition resulted in $ 26.1 million of intangible assets, primarily customer relationships and trade names, $ 2.2 million of fixed assets and $ million of goodwill. The Symphony Purchase Agreement contains customary representations and warranties, indemnification obligations and covenants. The Company accounted for the Symphony acquisition in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations , WhistleOut Acquisition On July 9, 2018, the Company, as guarantor, and its wholly-owned subsidiaries, Sykes Australia Pty Ltd, an Australian company, and Clear Link Technologies, LLC, a Delaware limited liability company, entered into and closed the WhistleOut Sale Agreement with WhistleOut Nominees Pty Ltd as trustee for the WhistleOut Holdings Unit Trust, CPC Investments USA Pty Ltd, JJZL Pty Ltd, Kenneth Wong as trustee for Wong Family Trust and C41 Pty Ltd as trustee for the Ottery Family Trust (together, the “WhistleOut Sellers”) to acquire all of the outstanding shares of WhistleOut. The aggregate purchase price of AUD 30.2 million ($22.4 million) was paid at the closing of the transaction on July 9, 2018. Subsequent to the finalization of the working capital adjustments during the six months ended June 30, 2019, the purchase price was adjusted to AUD 30.3 million ($22.5 million). The purchase price was funded through $22.0 million of additional borrowings under the Company’s credit agreement. The WhistleOut Sale Agreement provides for a three-year, retention based earnout of AUD 14.0 million. The WhistleOut Sale Agreement contained customary representations and warranties, indemnification obligations and covenants. The Company accounted for the WhistleOut acquisition in accordance with ASC 805 , Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2019. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission (“SEC”) on February 26, 2019. Principles of Consolidation — The condensed consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. Investments in less than majority-owned subsidiaries in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates — The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. There were no material subsequent events that required recognition or disclosure in the accompanying condensed consolidated financial statements. Cash, Cash Equivalents and Restricted Cash — Cash and cash equivalents consist of cash and highly liquid short-term investments, primarily held in non-interest-bearing investments which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets that sum to the amounts reported in the Condensed Consolidated Statements of Cash Flows (in thousands): June 30, 2019 December 31, 2018 June 30, 2018 December 31, 2017 Cash and cash equivalents $ 136,631 $ 128,697 $ 162,422 $ 343,734 Restricted cash included in "Other current assets" 566 149 153 154 Restricted cash included in "Deferred charges and other assets" 1,370 1,385 868 917 $ 138,567 $ 130,231 $ 163,443 $ 344,805 Investments in Equity Method Investees — In July 2017, the Company made a strategic investment of $10.0 million in XSell for 32.8% of XSell’s preferred stock. The Company is incorporating XSell’s machine learning and AI algorithms into its business. The Company believes this will increase the sales performance of its agents to drive revenue for its clients, improve the experience of the Company’s clients’ end customers and enhance brand loyalty, reduce the cost of customer care and leverage analytics and machine learning to source the best agents and improve their performance. The Company’s net investment in XSell of $8.9 million and $9.2 million was included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, respectively. The Company’s investment was paid in two installments of $5.0 million, one in July 2017 and one in August 2018. The Company’s proportionate share of XSell’s net (loss) of $(0.1) million and $(0.1) million for the three months ended June 30, 2019 and 2018, respectively, and $(0.3) million and $(0.3) million for the six months ended June 30, 2019 and 2018, respectively, was included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations. As of June 30, 2019 and December 31, 2018, the Company did not identify any instances where the carrying values of its equity method investments were not recoverable. Customer-Acquisition Advertising Costs — The Company’s advertising costs are expensed as incurred. Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Customer-acquisition advertising costs $ 10,036 $ 11,961 $ 22,140 $ 21,928 Reclassifications — Certain balances in the prior period have been reclassified to conform to current period presentation. New Accounting Standards Not Yet Adopted Fair Value Measurements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 201 8 -1 3 ”). These amendments remove, modify or add certain disclosure requirements for fair value measurements . These amendments are effective for fiscal years , and interim periods within those fiscal years, b eginning after December 15, 2019 . Certain of the amendments will be applied prospectively in the initial year of adoption while the remainder are required to be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company does not expect its adoption of ASU 2018-13 to have a material impact on its disclosures and does not expect to early adopt the standard . Retirement Benefits In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans - General (Subtopic 715-20) – Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). These amendments These amendments are effective for fiscal years ending after December 15, 2020, with early adoption permitted. The Company does not expect its adoption of ASU 2018-14 to have a material impact on its financial condition, results of operations, cash flows or disclosures and does not expect to early adopt the standard. Cloud Computing In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). These amendments These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect its adoption of ASU 2018-15 to have a material impact on its financial condition, results of operations, cash flows or disclosures and does not expect to early adopt the standard. Financial Instruments – Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). These amendments held. Entities are required to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Subsequently, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses in November 2018 and ASU 2019-05, Financial Instruments – Credit Losses (Topic 326) Targeted Transition Relief in May 2019 (together, “subsequent amendments”). ASU 2016-13 and the subsequent amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company’s implementation team has begun to assess its data and design its financial models to estimate expected credit losses and continues to evaluate the critical factors of ASU 2016-13 to determine its impact on the Company’s business processes, systems, and internal controls. The Company expects ASU 2016-13 to apply to its trade receivables but does not expect the adoption of the amendments to have a material impact on its financial condition, results of operations or cash flows because credit losses associated with trade receivables have historically been insignificant. The adoption of ASU 2016-13 will require expanded quantitative and qualitative disclosures about the Company’s expected credit losses. Additionally, the Company does not anticipate early adopting ASU 2016-13. Codification Improvements – Financial Instruments – Credit Losses, Derivatives and Hedging, and Financial Instruments In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). These amendments . The credit losses and hedging amendments have the same effective dates as the respective standards, unless an entity has already adopted the standards. The amendments related to recognizing and measuring financial instruments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2019-04 to have a material impact on its financial condition, results of operations, cash flows or disclosures. New Accounting Standards Recently Adopted Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases See Note 3, Leases, for further details as well as the Company’s significant accounting policy for leases. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedge Activities (“ASU 2017-12”). These amendments help simplify certain aspects of hedge accounting and better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update. The adoption of ASU 2017-12 on January 1, 2019 did not have a material impact on the financial condition, results of operations, cash flows or disclosures of the Company. No cumulative-effect adjustment was recorded to opening retained earnings on the date of adoption as there was no ineffectiveness previously recorded in retained earnings that would have been included in other comprehensive income if the new guidance had been applied since hedge inception. Upon adoption of ASU 2017-12, the Company elected the spot method for assessing the effectiveness of net investment hedges and will record the amortization of excluded components of net investment hedges in “Other income (expense), net” in its consolidated financial statements. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | Note 2. Revenues On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers Revenue from Contracts with Customers The Company recognizes revenues in accordance with ASC 606, whereby revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Customer Engagement Solutions and Services The Company provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. These services are delivered through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. Revenues for customer engagement solutions and services are recognized over time using output methods such as a per minute, per hour, per call, per transaction or per time and materials basis. Other Revenues In the Americas, the Company provides a range of enterprise support services including technical staffing services and outsourced corporate help desk services, primarily in the U.S. Revenues for enterprise support services are recognized over time using output methods such as number of positions filled. In EMEA, the Company offers fulfillment services that are integrated with its customer care and technical support services. The Company’s fulfillment solutions include order processing, payment processing, inventory control, product delivery and product returns handling. Sales are recognized upon shipment to the customer and satisfaction of all obligations. The Company also has miscellaneous other revenues in the Other segment. In total, other revenues are immaterial, representing 2.6% and 0.6% of the Company’s consolidated total revenues for the three months ended June 30, 2019 and 2018, respectively, and 2.2% and 0.6% for the six months ended June 30, 2019 and 2018, respectively. Disaggregated Revenues The Company disaggregates its revenues from contracts with customers by service type and geographic location (see Note 16, Segments and Geographic Information), for each of its reportable segments, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by economic factors. The following table represents revenues from contracts with customers disaggregated by service type and by the reportable segment for each category (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Americas: Customer engagement solutions and services $ 310,070 $ 326,766 $ 634,632 $ 667,188 Other revenues 237 275 452 574 Total Americas 310,307 327,041 635,084 667,762 EMEA: Customer engagement solutions and services 68,643 67,772 139,640 139,443 Other revenues 10,033 1,948 17,164 3,904 Total EMEA 78,676 69,720 156,804 143,347 Other: Other revenues 23 24 43 47 Total Other 23 24 43 47 $ 389,006 $ 396,785 $ 791,931 $ 811,156 Trade Accounts Receivable The Company’s trade accounts receivable, net, consists of the following (in thousands): June 30, 2019 December 31, 2018 Trade accounts receivable, net, current (1) $ 336,755 $ 335,377 Trade accounts receivable, net, noncurrent (2) 19,185 15,948 $ 355,940 $ 351,325 (1) Included in “Receivables, net” in the accompanying Condensed Consolidated Balance Sheets. (2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets. The Company’s noncurrent trade accounts receivable result from contracts with customers that include renewal provisions, as well as a contract with a customer under a multi-year arrangement. Deferred Revenue and Customer Liabilities Deferred revenue and customer liabilities consists of the following (in thousands): June 30, 2019 December 31, 2018 Deferred revenue $ 4,266 $ 3,655 Customer arrangements with termination rights 16,497 16,404 Estimated refund liabilities 7,794 10,117 $ 28,557 $ 30,176 Deferred Revenue The Company receives up-front fees in connection with certain contracts. In accordance with ASC 606, the up-front fees are recorded as a contract liability only to the extent a legally enforceable contract exists. Accordingly, the up-front fees allocated to a contract’s termination notification period, typically varying periods up to 180 days, are recorded as deferred revenue, while the fees that extend beyond the notification period are classified as customer arrangements with termination rights. Revenues of $0.3 million and $0.3 million were recognized during the three months ended June 30, 2019 and 2018, respectively, and revenues of $3.4 million and $4.2 million were recognized during the six months ended June 30, 2019 and 2018, respectively, from amounts included in deferred revenue at December 31, 2018 and January 1, 2018, respectively. The Company expects to recognize the majority of its deferred revenue as of June 30, 2019 over the next 180 days. Customer Liabilities – Customer Arrangements with Termination Rights The majority of the Company’s contracts include termination for convenience or without cause provisions allowing either party to cancel the contract without substantial cost or penalty within a defined notification period (“termination rights”). Customer arrangements with termination rights represent the amount of up-front fees received for unsatisfied performance obligations for periods that extend beyond the legally enforceable contract period. All customer arrangements with termination rights are classified as current as the customer can terminate the contracts and demand pro-rata refunds of the up-front fees over varying periods, typically up to 180 days. The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of contract terminations. Customer Liabilities – Estimated Refund Liabilities Estimated refund liabilities represent consideration received under the contract that the Company expects to ultimately refund to the customer and primarily relates to estimated penalties, holdbacks and chargebacks. Penalties and holdbacks result from the failure to meet specified minimum service levels in certain contracts and other performance-based contingencies. Chargebacks reflect the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred. Estimated refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 3. Leases Adoption of ASC 842, Leases On January 1, 2019, the Company adopted ASC 842, which includes ASU 2016-02 and all related amendments, using the modified retrospective method and recognized a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. Results for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting for leases under ASC 840. The adoption of ASC 842 on January 1, 2019 had a material impact on the Company’s Condensed Consolidated Balance Sheet, resulting in the recognition of $225.3 million of right-of-use ("ROU") assets, $239.3 million of operating lease liabilities, a $0.1 million increase to opening retained earnings, as well as $14.1 million primarily related to the derecognition of net straight-line lease liabilities. The retained earnings adjustment was due to the cumulative impact of adopting ASC 842, primarily resulting from the derecognition of embedded lease derivatives, the difference between deferred rent balances and the net of ROU assets and lease liabilities and the deferred tax impact. The impact of the adoption of ASC 842 to the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 was not material. The Company’s net cash provided by operating activities for the six months ended June 30, 2019 did not change due to the adoption of ASC 842. Practical Expedients The Company elected the following practical expedients: • The package of transitional practical expedients, consistently applied to all leases, that permits the Company to not reassess whether any expired or existing contracts are or contain leases, the historical lease classification for any expired or existing leases and initial direct costs for any expired or existing leases; and • The practical expedient that permits the Company to make an accounting policy election (by class of underlying asset) to account for each separate lease component of a contract and its associated non-lease components as a single lease component for all leases entered into or modified after the January 1, 2019 adoption date. Accounting Policy In determining whether a contract contains a lease, the Company assesses whether the arrangement meets all three of the following criteria: 1) there is an identified asset; 2) the Company has the right to obtain substantially all the economic benefits from use of the identified asset; and 3) the Company has the right to direct the use of the identified asset. This involves evaluating whether the Company has the right to operate the asset or to direct others to operate the asset in a manner that it determines without the supplier having the right to change those operating instructions, as well as evaluating the Company’s involvement in the design of the asset. The Company capitalizes operating lease obligations with terms in excess of twelve months as ROU assets with corresponding lease liabilities on its balance sheet. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Additionally, the ROU asset is adjusted for lease incentives, prepaid lease payments and initial direct costs. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, such as real estate taxes, insurance, common area maintenance and other operating costs. Lease and non-lease components Certain of the Company’s lease agreements include rental payments that adjust periodically based on an index or rate, generally the applicable Consumer Price Index (“CPI”). The operating lease liability is measured using the prevailing index or rate at the measurement date (i.e., the commencement date); however, the most recent CPI in effect as of January 1, 2019 was used to effectuate the adoption of ASC 842. Incremental payments due to c hanges to the index- and rate-based lease payments are treated as variable lease costs and expensed as incurred . For purposes of calculating operating lease liabilities, the lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The primary factors used to estimate whether an option to extend a lease term will be exercised or not generally include the extent of the Company’s capital investment, employee recruitment potential and operational cost and flexibility. In determining the present value of lease payments, the Company typically uses incremental borrowing rates based on information available at the lease commencement date. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s incremental borrowing rate is estimated using a synthetic credit rating model and forward currency exchange rates, as applicable. Payments on leases with an initial term of 12 months or less are recognized in the accompanying Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. The ROU asset is evaluated for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, Property, Plant and Equipment Leases The Company primarily leases facilities for its corporate headquarters, many of its customer engagement centers, several regional support offices and data centers. These leases are classified as operating leases and are included in “Operating lease right-of-use assets,” “Operating lease liabilities” and “Long-term operating lease liabilities” in the accompanying Condensed Consolidated Balance Sheet as of June 30, 2019. The Company has no finance leases. Lease terms for the Company’s leases are generally three to 20 years with renewal options typically ranging from one month to five years and largely require the Company to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. The Company's operating leases have remaining lease terms of one month to 13 years as of June 30, 2019. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. The Company subleases certain of its facilities that have been abandoned before the expiration of the lease term. Operating lease costs on abandoned facilities is reduced by sublease income and included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations. The Company’s sublease arrangements do not contain renewal options or restrictive covenants. The Company’s subleases have varying remaining lease terms extending through 2025, and future contractual sublease income is expected to be $13.9 million over the remaining lease terms. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows (in thousands): Statement of Operations Location Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost Direct salaries and related costs $ 58 $ 133 Operating lease cost General and administrative 15,008 29,815 Short-term lease cost General and administrative 390 813 Variable lease cost Direct salaries and related costs (3 ) (1 ) Variable lease cost General and administrative 1,273 2,310 Sublease income General and administrative (569 ) (997 ) $ 16,157 $ 32,073 Supplemental cash flow information related to leases was as follows (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities - operating cash flows $ 29,119 Right-of-use assets obtained in exchange for new operating lease liabilities 10,663 Additional supplemental information related to leases was as follows: June 30, 2019 Weighted average remaining lease term of operating leases 5.5 years Weighted average discount rate of operating leases 3.7 % Maturities of operating lease liabilities as of June 30, 2019 were as follows (in thousands): Amount 2019 (remainder of the year) $ 25,012 2020 56,277 2021 49,779 2022 38,193 2023 24,721 2024 and thereafter 54,329 Total future lease payments 248,311 Less: Imputed interest 25,258 Present value of future lease payments 223,053 Less: Operating lease liabilities 48,864 Long-term operating lease liabilities $ 174,189 As of June 30, 2019, the Company had additional operating leases for customer engagement centers that had not yet commenced with future lease payments of $2.9 million. These operating leases will commence during the third quarter of 2019 with lease terms between 2 and 8 years. Disclosures related to periods prior to adoption of ASC 842 Rental expense under operating leases, primarily included in “General and administrative” in the accompanying Condensed Consolidated Statement of Operations, for the three and six months ended June 30, 2018 was $18.6 million and $34.6 million, respectively. The following is a schedule of future minimum rental payments required under operating leases that had noncancelable lease terms as of December 31, 2018 under ASC 840 (in thousands): Amount 2019 $ 53,071 2020 48,770 2021 43,324 2022 34,063 2023 22,583 2024 and thereafter 51,456 $ 253,267 |
Costs Associated with Exit or D
Costs Associated with Exit or Disposal Activities | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Costs Associated with Exit or Disposal Activities | Note 4. Costs Associated with Exit or Disposal Activities During the first quarter of 2019, the Company initiated a restructuring plan to simplify and refine its operating model in the U.S. (the “Americas 2019 Exit Plan”), in part to improve agent attrition and absenteeism. The Americas 2019 Exit Plan includes, but is not limited to, closing customer contact management centers, consolidating leased space in various locations in the U.S. and management reorganization. The Company anticipates finalizing these actions by December 31, 2019. During the second quarter of 2018, the Company initiated a restructuring plan to manage and optimize capacity utilization, which included closing customer contact management centers and consolidating leased space in various locations in the U.S. and Canada (the “Americas 2018 Exit Plan”). The Company finalized the remainder of the site closures under the Americas 2018 Exit Plan as of December 2018, resulting in a reduction of 5,000 seats. The Company’s actions under both the Americas 2018 and 2019 Exit Plans are anticipated to result in general and administrative cost savings and lower depreciation expense. The cumulative costs expected and incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 Exit Plan and the Americas 2019 Exit Plan are outlined below as of June 30, 2019 (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan Lease obligations and facility exit costs (1) $ 7,073 $ 54 Severance and related costs (2) 3,426 191 Severance and related costs (1) 1,045 2,169 Non-cash impairment charges 5,875 1,582 Other non-cash charges — 244 $ 17,419 $ 4,240 (1) Included in “General and administrative” costs. (2) Included in “ Direct salaries and related costs. During the three months ended June 30, 2019, the Company incurred an additional $0.5 million above the amount previously expected under the Americas 2019 Exit Plan, primarily due to the refinement of previous estimates. The Company has paid a total of $11.0 million in cash through June 30, 2019, of which $10.2 million related to the Americas 2018 Exit Plan and $0.8 million related to the Americas 2019 Exit Plan. The following table summarizes the accrued liability and related charges for the three months ended June 30, 2019 (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan Lease Obligations and Facility Exit Costs Severance and Related Costs Total Lease Obligations and Facility Exit Costs Severance and Related Costs Total Balance at the beginning of the period $ 162 $ 495 $ 657 $ — $ 1,040 $ 1,040 Charges (reversals) included in "Direct salaries and related costs" — (3 ) (3 ) — 184 184 Charges (reversals) included in "General and administrative" — (9 ) (9 ) 54 1,079 1,133 Cash payments (33 ) (261 ) (294 ) — (742 ) (742 ) Balance at the end of the period $ 129 $ 222 $ 351 $ 54 $ 1,561 $ 1,615 The following table summarizes the accrued liability and related charges for the six months ended June 30, 2019 (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan Lease Obligations and Facility Exit Costs Severance and Related Costs Total Lease Obligations and Facility Exit Costs Severance and Related Costs Total Balance at the beginning of the period $ 1,769 $ 817 $ 2,586 $ — $ — $ — Charges (reversals) included in "Direct salaries and related costs" — (3 ) (3 ) — 191 191 Charges (reversals) included in "General and administrative" (4 ) 10 6 54 2,169 2,223 Cash payments (298 ) (602 ) (900 ) — (799 ) (799 ) Balance sheet reclassifications (1) (1,338 ) — (1,338 ) — — — Balance at the end of the period $ 129 $ 222 $ 351 $ 54 $ 1,561 $ 1,615 (1) Consists of the reclassification from the restructuring liability to “Operating lease liabilities” and “Long-term operating lease liabilities” upon adoption of ASC 842 on January 1, 2019. The following table summarizes the accrued liability and related charges for the three and six months ended June 30, 201 8 (in thousands): Americas 2018 Exit Plan Lease Obligations and Facility Exit Costs Severance and Related Costs Total Balance at the beginning of the period $ — $ — $ — Charges (reversals) included in "Direct salaries and related costs" — 402 402 Charges (reversals) included in "General and administrative" 3,028 219 3,247 Cash payments (429 ) (131 ) (560 ) Balance sheet reclassifications (1) 216 — 216 Balance at the end of the period $ 2,815 $ 490 $ 3,305 (1) Consists of the reclassification of deferred rent balances to the restructuring liability for locations subject to closure. Restructuring Liability Classification The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its Americas 2018 and 2019 Exit Plans (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan June 30, 2019 December 31, 2018 June 30, 2019 Lease obligations and facility exit costs: Included in "Accounts payable" $ — $ 100 $ 54 Included in "Other accrued expenses and current liabilities" 74 952 — Included in "Other long-term liabilities" 55 717 — 129 1,769 54 Severance and related costs: Included in "Accrued employee compensation and benefits" 222 793 1,553 Included in "Other accrued expenses and current liabilities" — 24 8 222 817 1,561 $ 351 $ 2,586 $ 1,615 The long-term accrued restructuring liability relates to variable costs associated with future rent obligations to be paid through the remainder of the lease terms, the last of which ends in June 2021. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 5. Fair Value ASC 820, Fair Value Measurements and Disclosures requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for how these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy: • Level 1 — Quoted prices for identical instruments in active markets. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable . Determination of Fair Value — The Company generally uses quoted market prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access to determine fair value and classifies such items in Level 1. Fair values determined by Level 2 inputs utilize inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, and inputs other than quoted market prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency exchange rates, etc. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. The following describes the valuation methodologies used by the Company to measure assets and liabilities at fair value on a recurring basis, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified, if applicable. Cash, Short-Term and Other Investments and Accounts Payable The carrying values for cash, short-term and other investments and accounts payable approximate their fair values. Long-Term Debt The carrying value of long-term debt approximates its estimated fair value as the debt bears interest based on variable market rates, as outlined in the debt agreement. Foreign Currency Contracts — The Company enters into foreign currency forward contracts and options over the counter and values such contracts, including premiums paid on options, at fair value using quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk. The key inputs include forward or option foreign currency exchange rates and interest rates. These items are classified in Level 2 of the fair value hierarchy. Embedded Derivatives — Prior to the adoption of ASC 842, the Company had embedded derivatives within certain hybrid lease agreements that were bifurcated from the host contract and valued such contracts at fair value using significant unobservable inputs, which are classified in Level 3 of the fair value hierarchy. These unobservable inputs included expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates, the results of which were adjusted for credit risk. These items were classified in Level 3 of the fair value hierarchy. See Note 3, Leases, and Note 7, Financial Derivatives, for further information. Investments Held in Rabbi Trust — The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 8, Investments Held in Rabbi Trust. The Company's assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following (in thousands): Fair Value Measurements Using: Balance at Quoted Prices in Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2019 Level 1 Level 2 Level 3 Assets: Foreign currency contracts (1) $ 3,265 $ — $ 3,265 $ — Equity investments held in rabbi trust for the Deferred Compensation Plan (2) 9,101 9,101 — — Debt investments held in rabbi trust for the Deferred Compensation Plan (2) 4,778 4,778 — — $ 17,144 $ 13,879 $ 3,265 $ — Liabilities: Foreign currency contracts (1) $ 172 $ — $ 172 $ — $ 172 $ — $ 172 $ — Fair Value Measurements Using: Balance at Quoted Prices in Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2018 Level 1 Level 2 Level 3 Assets: Foreign currency contracts (1) $ 1,068 $ — $ 1,068 $ — Embedded derivatives (1) 10 — — 10 Equity investments held in rabbi trust for the Deferred Compensation Plan (2) 8,075 8,075 — — Debt investments held in rabbi trust for the Deferred Compensation Plan (2) 3,367 3,367 — — $ 12,520 $ 11,442 $ 1,068 $ 10 Liabilities: Foreign currency contracts (1) $ 2,895 $ — $ 2,895 $ — Embedded derivatives (1) 369 — — 369 $ 3,264 $ — $ 2,895 $ 369 (1) See Note 7, Financial Derivatives, for the classification in the accompanying Condensed Consolidated Balance Sheets. (2) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. See Note 8, Investments Held in Rabbi Trust. Reconciliations of Fair Value Measurements Categorized within Level 3 of the Fair Value Hierarchy Embedded Derivatives in Lease Agreements A rollforward of the net asset (liability) activity in the Company’s fair value of the embedded derivatives is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balance at the beginning of the period $ — $ (409 ) $ (359 ) $ (527 ) Derecognition of embedded derivatives (1) — — 359 — Gains (losses) recognized in "Other income (expense), net" — (252 ) — (165 ) Settlements — 38 — 80 Effect of foreign currency — 25 — 14 Balance at the end of the period $ — $ (598 ) $ — $ (598 ) Change in unrealized gains (losses) included in "Other income (expense), net" related to embedded derivatives held at the end of the period $ — $ (253 ) $ — $ (171 ) (1) Derecognition upon adoption of ASC 842 on January 1, 2019. See Note 3, Leases, for more information. Non-Recurring Fair Value Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs, including goodwill, intangible assets, long-lived assets, ROU assets and equity method investments. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if these assets were determined to be impaired. The adjusted carrying values for assets measured at fair value on a nonrecurring basis (no liabilities) subject to the requirements of ASC 820 The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Americas: Property and equipment, net $ — $ (5,175 ) $ (343 ) $ (8,701 ) Operating lease right-of-use assets (129 ) — (1,368 ) — $ (129 ) $ (5,175 ) $ (1,711 ) $ (8,701 ) In connection with the closure of certain under-utilized customer contact management centers and the consolidation of leased space in the U.S. and Canada, the Company recorded impairment charges during the three and six months ended June 30, 2019 and 2018 related to the exit of leased facilities as well as leasehold improvements, equipment, furniture and fixtures which were not recoverable. See Note 4, Costs Associated with Exit and Disposal Activities, for further information. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Intangible Assets The following table presents the Company’s purchased intangible assets as of June 30, 2019 (in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Intangible assets subject to amortization: Customer relationships $ 190,290 $ (114,031 ) $ 76,259 10 Trade names and trademarks 19,219 (11,750 ) 7,469 8 Non-compete agreements 2,742 (2,022 ) 720 3 Content library 513 (513 ) — 2 Proprietary software 1,040 (795 ) 245 4 Intangible assets not subject to amortization: Domain names 80,816 — 80,816 N/A $ 294,620 $ (129,111 ) $ 165,509 5 The following table presents the Company’s purchased intangible assets as of December 31, 2018 (in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Intangible assets subject to amortization: Customer relationships $ 189,697 $ (106,502 ) $ 83,195 10 Trade names and trademarks 19,236 (10,594 ) 8,642 8 Non-compete agreements 2,746 (1,724 ) 1,022 3 Content library 517 (517 ) — 2 Proprietary software 1,040 (725 ) 315 4 Intangible assets not subject to amortization: Domain names 80,857 — 80,857 N/A $ 294,093 $ (120,062 ) $ 174,031 5 The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2019 is as follows (in thousands): Years Ending December 31, Amount 2019 (remainder of the year) 8,274 2020 14,011 2021 9,422 2022 8,121 2023 7,273 2024 7,027 2025 and thereafter 30,565 Goodwill Changes in goodwill for the six months ended June 30, 2019 consisted of the following (in thousands): January Acquisition- Related (1) Effect of Foreign Currency June 30, 2019 Americas $ 255,436 $ 1,202 $ 2,554 $ 259,192 EMEA 47,081 (124 ) (99 ) 46,858 $ 302,517 $ 1,078 $ 2,455 $ 306,050 Changes in goodwill for the year ended December 31, 2018 consisted of the following (in thousands): January Acquisition- Related (1) Effect of Foreign Currency December 31, 2018 Americas $ 258,496 $ 2,175 $ (5,235 ) $ 255,436 EMEA 10,769 36,361 (49 ) 47,081 $ 269,265 $ 38,536 $ (5,284 ) $ 302,517 (1) See Note 1, Overview and Basis of Presentation, for further information. The year ended December 31, 2018 includes the goodwill recorded upon acquisition, while the six months ended June 30, 2019 includes the impact of adjustments to acquired goodwill upon finalization of working capital adjustments and the tax analysis of WhistleOut’s assets acquired and liabilities assumed. The Company performs its annual goodwill impairment test during the third quarter, or more frequently if indicators of impairment exist. For the annual goodwill impairment test, the Company elected to forgo the option to first assess qualitative factors and performed its annual quantitative goodwill impairment test as of July 31, 2018. Under ASC 350, Intangibles – Goodwill and Other The quantitative assessment of goodwill includes comparing a reporting unit’s calculated fair value to its carrying value. The calculation of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth and determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. The process of evaluating the fair value of the reporting units is highly subjective and requires significant judgment and estimates as the reporting units operate in a number of markets and geographical regions. The Company considered the income and market approaches to determine its best estimates of fair value, which incorporated the following significant assumptions: • Revenue projections, including revenue growth during the forecast periods; • EBITDA margin projections over the forecast periods; • Estimated income tax rates; • Estimated capital expenditures; and • Discount rates based on various inputs, including the risks associated with the specific reporting units as well as their revenue growth and EBITDA margin assumptions. As of July 31, 2018, the Company concluded that goodwill was not impaired for all six of its reporting units with goodwill, . While the fair values of in excess of their carrying value, (“Qelp”) (“Clearlink”) reporting units’ . Qelp and Clearlink were acquired by the Company in 2015 and 2016, respectively. The Qelp and Clearlink reporting units are at risk of future impairment if projected operating results are not met or other inputs into the fair value measurement change. However, as of June 30, 2019, the Company believes there were no indicators of impairment related to Qelp’s $10.1 million of goodwill and Clearlink’s $72.3 million of goodwill. Additionally, as of June 30, 2019, the Company noted no indicators of impairment related to Symphony’s $36.7 million of goodwill, recorded as a result of the acquisition on November 1, 2018. |
Financial Derivatives
Financial Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Derivatives | Note 7. Financial Derivatives Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815, Derivatives and Hedging (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These foreign currency contracts are entered into to hedge the exposure to variability in the cash flows of a specific asset or liability, or of a forecasted transaction that is attributable to changes in exchange rates. The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands): June 30, 2019 December 31, 2018 Deferred gains (losses) in AOCI $ 2,733 $ (1,825 ) Tax on deferred gains (losses) in AOCI (97 ) (39 ) Deferred gains (losses) in AOCI, net of taxes $ 2,636 $ (1,864 ) Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months $ 2,733 Deferred gains (losses) and other future reclassifications from AOCI will fluctuate with movements in the underlying market price of the forward contracts and options as well as the related settlement of forecasted transactions. Non-Designated Hedges Foreign Currency Forward Contracts – The Company also periodically enters into foreign currency hedge contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against adverse foreign currency moves relating primarily to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies. Embedded Derivatives – The Company enters into c ertain lease agreements which require payments not denominated in the functional currency of any substantial party to the agreements. Prior to the adoption of ASC 842 on January 1, 2019, the foreign currency component of these contracts met the criteria under ASC 815 as embedded derivatives. The Company has determined that the embedded derivatives were not clearly and closely related to the economic characteristics and risks of the host contracts (lease agreements), and separate, stand-alone instruments with the same terms as the embedded derivative instruments would otherwise qualify as derivative instruments, thereby requiring separation from the lease agreements and recognition at fair value. Such instruments did not qualify for hedge accounting under ASC 815. The Company’s embedded derivatives were derecognized on January 1, 2019. The Company had the following outstanding foreign currency forward contracts and options, and embedded derivatives (in thousands): June 30, 2019 December 31, 2018 Contract Type Notional Amount in USD Settle Through Date Notional Amount in USD Settle Through Date Cash flow hedges: Options: US Dollars/Philippine Pesos $ 41,250 June 2020 $ 26,250 December 2019 Forwards: US Dollars/Philippine Pesos 6,000 September 2019 39,000 September 2019 US Dollars/Costa Rican Colones 42,000 June 2020 67,000 December 2019 Euros/Hungarian Forints 1,569 December 2019 — — Euros/Romanian Leis 8,427 December 2019 — — Non-designated hedges: Forwards 20,031 November 2021 19,261 November 2021 Embedded derivatives — — 14,069 April 2030 Master netting agreements exist with each respective counterparty to reduce credit risk by permitting net settlement of derivative positions. In the event of default by the Company or one of its counterparties, these agreements include a set-off clause that provides the non-defaulting party the right to net settle all derivative transactions, regardless of the currency and settlement date. The maximum amount of loss due to credit risk that, based on gross fair value, the Company would incur if parties to the derivative transactions that make up the concentration failed to perform according to the terms of the contracts was $ million and $ million as of June 3 0 , 201 9 and December 31, 201 8 , respectively. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions are asset positions of $ million and $ million as of June 3 0 , 201 9 and December 31, 201 8 , respectively, and liability positions of $ million and $ 2.9 million as of June 3 0 , 201 9 and December 31, 201 8 , respectively. Although legally enforceable master netting arrangements exist between the Company and each counterparty, the Company has elected to present the derivative assets and derivative liabilities on a gross basis in the accompanying Condensed Consolidated Balance Sheets. Additionally, the Company is not required to pledge, nor is it entitled to receive, cash collateral related to these derivative transactions. The following tables present the fair value of the Company’s derivative instruments included in the accompanying Condensed Consolidated Balance Sheets (in thousands) Derivative Assets Balance Sheet Location June 30, 2019 December 31, 2018 Derivatives designated as cash flow hedging instruments: Foreign currency contracts Other current assets $ 3,167 $ 1,038 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets 55 30 Foreign currency contracts Deferred charges and other assets 43 — Embedded derivatives Other current assets — 10 Total derivative assets $ 3,265 $ 1,078 Derivative Liabilities Balance Sheet Location June 30, 2019 December 31, 2018 Derivatives designated as cash flow hedging instruments: Foreign currency contracts Other accrued expenses and current liabilities $ 7 $ 2,604 Derivatives not designated as hedging instruments: Foreign currency contracts Other accrued expenses and current liabilities 165 247 Foreign currency contracts Other long-term liabilities — 44 Embedded derivatives Other accrued expenses and current liabilities — 8 Embedded derivatives Other long-term liabilities — 361 Total derivative liabilities $ 172 $ 3,264 The following table presents the effect of the Company’s derivative instruments included in the accompanying condensed consolidated financial statements (in thousands) Location of Gains Three Months Ended June 30, Six Months Ended June 30, (Losses) in Net Income 2019 2018 2019 2018 Revenues $ 389,006 $ 396,785 $ 791,931 $ 811,156 Derivatives designated as cash flow hedging instruments: Gains (losses) recognized in AOCI: Foreign currency contracts 3,586 (305 ) 4,769 (3,001 ) Gains (losses) reclassified from AOCI: Foreign currency contracts Revenues 631 193 130 436 Derivatives not designated as hedging instruments: Gains (losses) recognized from foreign currency contracts Other income (expense), net $ (432 ) $ (93 ) $ (465 ) $ (1,262 ) Gains (losses) recognized from embedded derivatives Other income (expense), net — (252 ) — (165 ) $ (432 ) $ (345 ) $ (465 ) $ (1,427 ) |
Investments Held in Rabbi Trust
Investments Held in Rabbi Trust | 6 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments Held in Rabbi Trust | Note 8. Investments Held in Rabbi Trust The Company’s investments held in rabbi trust, classified as trading securities and included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets, at fair value, consist of the following (in thousands): June 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Mutual funds $ 9,744 $ 13,879 $ 8,864 $ 11,442 The mutual funds held in rabbi trust were 66% equity-based and 34% debt-based as of June 30, 2019. Net investment gains (losses) included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net realized gains (losses) from sale of trading securities $ 5 $ 27 $ 66 $ 32 Dividend and interest income 53 43 82 68 Net unrealized holding gains (losses) 368 72 1,458 17 $ 426 $ 142 $ 1,606 $ 117 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 9. Borrowings On February 14, 2019, the Company entered into a $500 million senior revolving credit facility (the “2019 Credit Agreement”) with a group of lenders, KeyBank National Association, as Administrative Agent, Swing Line Lender and Issuing Lender (“KeyBank”), the lenders named therein, and KeyBanc Capital Markets Inc. as Lead Arranger and Sole Book Runner. The 2019 Credit Agreement replaced the Company’s previous $440 million revolving credit facility dated May 12, 2015 (the “2015 Credit Agreement”), which agreement was terminated simultaneous with entering into the 2019 Credit Agreement. The 2019 Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants. The 2019 Credit Agreement includes a $200 million alternate-currency sub-facility, a $15 million swingline sub-facility and a $15 million letter of credit sub-facility, and may be used for general corporate purposes including acquisitions, share repurchases, working capital support and letters of credit, subject to certain limitations. The Company is not currently aware of any inability of its lenders to provide access to the full commitment of funds that exist under the revolving credit facility, if necessary. However, there can be no assurance that such facility will be available to the Company, even though it is a binding commitment of the financial institutions. The 2019 Credit Agreement matures on February 1 4 , 202 4 , and had outstanding borrowings of $ million at June 3 0 , 2019 and the 2015 Credit Agreement had outstanding borrowings of $ million at December 31, 201 8 , included in “Long-term debt” in the accompanying Condensed Consolidated Balance Sheets. Borrowings under the 2019 Credit Agreement bear interest at the rates set forth in the 2019 Credit Agreement. In addition, the Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company’s leverage ratio and due quarterly in arrears as calculated on the average unused amount of the 2019 Credit Agreement. The 2019 Credit Agreement is guaranteed by all the Company’s existing and future direct and indirect material U.S. subsidiaries and secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all the direct foreign subsidiaries of the Company and those of the guarantors. In February 2019, the Company paid debt issuance costs of $1.1 million for the 2019 Credit Agreement, which is deferred and amortized over the term of the loan, along with the debt issuance costs of $0.3 million related to the 2015 Credit Agreement. The following table presents information related to our credit agreements (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average daily utilization $ 89,593 $ 100,110 $ 92,779 $ 110,691 Interest expense (1) $ 922 $ 915 $ 1,884 $ 1,916 Weighted average interest rate (1) 4.1 % 3.7 % 4.1 % 3.5 % (1) Excludes the amortization of deferred loan fees and includes the commitment fee. In January 2018, the Company repaid $175.0 million of long-term debt outstanding under its 2015 Credit Agreement, primarily using funds repatriated from its foreign subsidiaries. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 10. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) consist of the following (in thousands): Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Net Investment Hedge Unrealized Gain (Loss) on Cash Flow Hedging Instruments Unrealized Actuarial Gain (Loss) Related to Pension Liability Unrealized Gain (Loss) on Postretirement Obligation Total Balance at January 1, 2018 $ (36,315 ) $ 1,046 $ 2,471 $ 1,574 $ 120 $ (31,104 ) Pre-tax amount (22,158 ) — (4,287 ) 783 — (25,662 ) Tax (provision) benefit — — 84 47 — 131 Reclassification of (gain) loss to net income — — 6 (66 ) (80 ) (140 ) Foreign currency translation 220 — (138 ) (82 ) — — Balance at December 31, 2018 (58,253 ) 1,046 (1,864 ) 2,256 40 (56,775 ) Pre-tax amount 3,680 — 4,769 — — 8,449 Tax (provision) benefit — — (101 ) 6 — (95 ) Reclassification of (gain) loss to net income — — (85 ) (48 ) (10 ) (143 ) Foreign currency translation 21 — (83 ) 62 — — Balance at June 30, 2019 $ (54,552 ) $ 1,046 $ 2,636 $ 2,276 $ 30 $ (48,564 ) The following table summarizes the amounts reclassified to net income from accumulated other comprehensive income (loss) and the associated line item in the accompanying Condensed Consolidated Statements of Operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, Statements Operations 2019 2018 2019 2018 Location Gain (loss) on cash flow hedging instruments: (1) Pre-tax amount $ 631 $ 193 $ 130 $ 436 Revenues Tax (provision) benefit (35 ) 17 (45 ) 24 Income taxes Reclassification to net income 596 210 85 460 Actuarial gain (loss) related to pension liability: (2) Pre-tax amount 21 14 42 29 Other Tax (provision) benefit 3 3 6 6 Income taxes Reclassification to net income 24 17 48 35 Gain (loss) on postretirement obligation: (2),(3) Reclassification to net income 5 10 10 20 Other $ 625 $ 237 $ 143 $ 515 (1) See Note 7, Financial Derivatives, for further information. (2) See Note 14, Defined Benefit Pension Plan and Postretirement Benefits, for further information. (3) No related tax (provision) benefit. As discussed in Note 11, Income Taxes, for periods prior to December 31, 2017, any remaining outside basis differences associated with the Company’s investments in its foreign subsidiaries are considered to be indefinitely reinvested and no provision for income taxes on those earnings or translation adjustments has been provided. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The Company’s effective tax rates were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Effective tax rate 18.0 % -45.0 % 23.7 % 1.2 % The increase in the effective tax rate for the three months ended June 30, 2019 as compared to 2018 was primarily due to a $3.2 million decrease in benefit associated with the settlement of tax audits and ancillary issues recognized in the prior period. The increase was also affected by shifts in earnings among the various jurisdictions in which the Company operates. Several additional factors, none of which were individually material, also impacted the rate. The difference between the Company’s effective tax rate as compared to the U.S. statutory federal tax rate of 21.0% was primarily due to the aforementioned factors as well as the recognition of net tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions and tax credits, offset by the tax impact of permanent differences, state income and foreign withholding taxes. The increase in the effective tax rate for the six months ended June 30, 2019 as compared to 2018 was primarily due to a $3.4 million decrease in discrete tax benefit from the aforementioned settlement of tax audits and ancillary matters. The increase was also affected by shifts in earnings among the various jurisdictions in which the Company operates. Several additional factors, none of which were individually material, also impacted the rate. The difference between the Company’s effective tax rate as compared to the U.S. statutory federal tax rate of 21.0% was primarily due to the aforementioned factors as well as the recognition of net tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions and tax credits, offset by the tax impact of permanent differences, state income and foreign withholding taxes. The 2017 Tax Reform Act made significant changes to the Internal Revenue Code, including, but not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a participation exemption regime legislation was signed into law. The $ 32.7 million estimate include d the provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings of $ 32.7 million based on cumulative foreign earnings of $ 531.8 million and $ 1.0 million of foreign withholding taxes on certain anticipated distributions. The provisional tax expense was partially offset by a provisional benefit of $ 1.0 million related to the remeasurement of certain deferred tax assets and liabilities, based on the rates at which they are expected to reverse in the future. The Company finalized the computation during the fourth quarter of 2018 and recorded a $ million decrease during the year ended December 31, 2018 to th e original provisional amount recorded . Prior to December 31, 2017, no additional income taxes have been provided for any remaining outside basis differences inherent in the Company’s investments in its foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any remaining outside basis difference in these entities is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates. The Company received assessments for the Canadian 2003-2009 audit. Requests for Competent Authority Assistance were filed with both the Canadian Revenue Agency and the U.S. Internal Revenue Service and the Company paid mandatory security deposits to Canada as part of this process. As of June 30, 2017, the Company determined that all material aspects of the Canadian audit were effectively settled pursuant to ASC 740. As a result, the Company recognized an income tax benefit of $1.2 million, net of the U.S. tax impact, at that time and the deposits were applied against the anticipated liability. During the three months ended June 30, 2018, the Company finalized procedures ancillary to the Canadian audit and recognized an additional $2.7 million income tax benefit due to the elimination of certain assessed penalties, interest and withholding taxes. The Company has no significant tax jurisdictions under audit; however, the Company is currently under audit in several tax jurisdictions. The Company believes it is adequately reserved for the remaining audits and their resolution is not expected to have a material impact on its financial conditions and results of operations. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 12. Earnings Per Share Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method. The numbers of shares used in the earnings per share computation were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic: Weighted average common shares outstanding 42,038 42,125 42,107 42,035 Diluted: Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust 56 35 93 162 Total weighted average diluted shares outstanding 42,094 42,160 42,200 42,197 Anti-dilutive shares excluded from the diluted earnings per share calculation 207 31 164 6 On August 18, 2011, the Company’s Board of Directors (the “Board”) authorized the Company to purchase up to 5.0 million shares of its outstanding common stock (the “2011 Share Repurchase Program”). On March 16, 2016, the Board authorized an increase of 5.0 million shares to the 2011 Share Repurchase Program for a total of 10.0 million shares. A total of 6.0 million shares have been repurchased under the 2011 Share Repurchase Program since inception. The shares are purchased, from time to time, through open market purchases or in negotiated private transactions, and the purchases are based on factors, including but not limited to, the stock price, management discretion and general market conditions. The 2011 Share Repurchase Program has no expiration date. The shares repurchased under the Company’s 2011 Share Repurchase Program during the three and six months ended June 30, 2019 were as follows (none in 2018) (in thousands, except per share amounts): Total Number of Shares Range of Prices Paid Per Share Total Cost of Shares For the Three and Six Months Ended: Repurchased Low High Repurchased June 30, 2019 771 $ 24.72 $ 27.30 $ 20,178 |
Commitments and Loss Contingenc
Commitments and Loss Contingency | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Loss Contingency | Note 13. Commitments and Loss Contingency Purchase Commitments T he Company enters into various purchase commitment agreements with third-party vendors in the ordinary course of business whereby the Company commits to purchase goods and services used in its normal operations. These agreements generally are not cancelable, range from one to five-year periods and may contain fixed or minimum annual commitments. Certain of these agreements allow for renegotiation of the minimum annual commitments Loss Contingency Contingencies are recorded in the consolidated financial statements when it is probable that a liability will be incurred and the amount of the loss is reasonably estimable, or otherwise disclosed, in accordance with ASC 450, Contingencies (“ASC 450”). Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450. The Company received a state audit assessment and is currently rebutting the position. The Company has determined that the likelihood of a liability is reasonably possible and developed a range of possible loss up to $1.4 million, net of federal benefit. The Company, from time to time, is involved in legal actions arising in the ordinary course of business. With respect to any such other currently pending matters, management believes that the Company has adequate legal defenses and/or, when possible and appropriate, has provided adequate accruals related to those matters such that the ultimate outcome will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Defined Benefit Pension Plan an
Defined Benefit Pension Plan and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Pension Plan and Postretirement Benefits | Note 14. Defined Benefit Pension Plan and Postretirement Benefits Defined Benefit Pension Plans The following table provides information about the net periodic benefit cost for the Company’s pension plans (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Service cost $ 100 $ 109 $ 198 $ 223 Interest cost 62 48 124 98 Recognized actuarial (gains) (21 ) (14 ) (42 ) (29 ) $ 141 $ 143 $ 280 $ 292 The Company’s service cost for its qualified pension plans was included in “Direct salaries and related costs” and “General and administrative” costs in its Condensed Consolidated Statements of Operations for the three and six months ended June 30, 3019 and 2018. The remaining components of net periodic benefit cost were included in “Other income (expense), net” in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018. Employee Retirement Savings Plans The Company maintains a 401(k) plan covering defined employees who meet established eligibility requirements. Under the plan provisions, the Company matches 50% of participant contributions to a maximum matching amount of 2% of participant compensation. The Company’s contributions included in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 401(k) plan contributions $ 419 $ 344 $ 885 $ 803 Split-Dollar Life Insurance Arrangement In 1996, the Company entered into a split-dollar life insurance arrangement to benefit the former Chairman and Chief Executive Officer of the Company. Under the terms of the arrangement, the Company retained a collateral interest in the policy to the extent of the premiums paid by the Company. The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands): June 30, 2019 December 31, 2018 Postretirement benefit obligation $ 8 $ 12 Unrealized gains (losses) in AOCI (1) 30 40 (1) Unrealized gains (losses) are due to changes in discount rates related to the postretirement obligation. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 15. Stock-Based Compensation The Company’s Board of Directors adopted the Sykes Enterprises, Incorporated 2019 Equity Incentive Plan (the “2019 Plan”) on March 12, 2019. The 2019 Plan was approved by the shareholders at the May 2019 annual shareholder meeting. The 2019 Plan replaced and superseded the Company’s 2011 Equity Incentive Plan (the “2011 Plan”). The outstanding awards granted under the 2011 Plan will remain in effect until their exercise, expiration or termination. The 2019 Plan permits the grant of restricted stock, stock appreciation rights, stock options and other stock-based awards to certain employees of, and certain non-employees who provide services to, the Company in order to encourage them to remain in the employment of, or to faithfully provide services to, the Company and to increase their interest in the Company’s success. The Company’s stock-based compensation plans include the 2019 Plan for employees and certain non-employees, the Non-Employee Director Fee Plan for non-employee directors and the Deferred Compensation Plan for certain eligible employees. Stock-based awards under these plans may consist of common stock, stock options, cash-settled or stock-settled stock appreciation rights, restricted stock and other stock-based awards. The Company issues stock and uses treasury stock to satisfy stock option exercises or vesting stock awards. The methods and assumptions used in the determination of the fair value of stock-based awards are consistent with those described in the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The following table summarizes the stock-based compensation expense (primarily in the Americas) and income tax benefits related to the stock-based compensation, both plan and non-plan related (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock-based compensation (expense) (1) $ (2,200 ) $ (1,673 ) $ (4,090 ) $ (3,750 ) Income tax benefit (2) 528 402 982 900 (1) Included in "General and administrative" costs in the accompanying Condensed Consolidated Statements of Operations. (2) Included in "Income taxes" in the accompanying Condensed Consolidated Statements of Operations . During the six months ended June 30, 2019, the Company granted 338,732 performance-based restricted shares and 169,367 employment-based restricted stock units under the Company’s 2011 Plan, all at a weighted average grant-date fair value of $28.43 per share. |
Segments and Geographic Informa
Segments and Geographic Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | Note 16. Segments and Geographic Information The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers. The reportable segments consist of (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, and provides outsourced customer engagement solutions (with an emphasis on inbound technical support, digital support and demand generation, and customer service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer engagement solutions (with an emphasis on technical support and customer service) and fulfillment services. The sites within Latin America, Australia and the Asia Pacific Rim are included in the Americas segment given the nature of the business and client profile, which is primarily made up of U.S.-based companies that are using the Company’s services in these locations to support their customer engagement needs. Information about the Company’s reportable segments is as follows (in thousands): Americas EMEA Other (1) Consolidated Three Months Ended June 30, 2019: Revenues $ 310,307 $ 78,676 $ 23 $ 389,006 Percentage of revenues 79.8 % 20.2 % 0.0 % 100.0 % Depreciation, net $ 10,659 $ 1,628 $ 765 $ 13,052 Amortization of intangibles $ 3,288 $ 839 $ — $ 4,127 Income (loss) from operations $ 26,584 $ 4,661 $ (15,990 ) $ 15,255 Total other income (expense), net (1,520 ) (1,520 ) Income taxes (2,466 ) (2,466 ) Net income $ 11,269 Three Months Ended June 30, 2018: Revenues $ 327,041 $ 69,720 $ 24 $ 396,785 Percentage of revenues 82.4 % 17.6 % 0.0 % 100.0 % Depreciation, net $ 12,335 $ 1,476 $ 749 $ 14,560 Amortization of intangibles $ 3,415 $ 214 $ — $ 3,629 Income (loss) from operations $ 19,824 $ 2,220 $ (15,584 ) $ 6,460 Total other income (expense), net (1,511 ) (1,511 ) Income taxes 2,229 2,229 Net income $ 7,178 Six Months Ended June 30, 2019: Revenues $ 635,084 $ 156,804 $ 43 $ 791,931 Percentage of revenues 80.2 % 19.8 % 0.0 % 100.0 % Depreciation, net $ 22,166 $ 3,254 $ 1,529 $ 26,949 Amortization of intangibles $ 6,726 $ 1,687 $ — $ 8,413 Income (loss) from operations $ 56,652 $ 6,152 $ (30,797 ) $ 32,007 Total other income (expense), net (1,903 ) (1,903 ) Income taxes (7,148 ) (7,148 ) Net income $ 22,956 Six Months Ended June 30, 2018: Revenues $ 667,762 $ 143,347 $ 47 $ 811,156 Percentage of revenues 82.3 % 17.7 % 0.0 % 100.0 % Depreciation, net $ 25,018 $ 2,887 $ 1,491 $ 29,396 Amortization of intangibles $ 7,407 $ 435 $ — $ 7,842 Income (loss) from operations $ 45,688 $ 6,859 $ (31,803 ) $ 20,744 Total other income (expense), net (2,391 ) (2,391 ) Income taxes (227 ) (227 ) Net income $ 18,126 (1) Other items (including corporate and other costs, other income and expense, and income taxes) are included for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the periods shown. Inter-segment revenues are not material to the Americas and EMEA segment results. The Company’s reportable segments are evaluated regularly by its chief operating decision maker to decide how to allocate resources and assess performance. The chief operating decision maker evaluates performance based upon reportable segment revenue and income (loss) from operations. Because assets by segment are not reported to or used by the Company’s chief operating decision maker to allocate resources, or to assess performance, total assets by segment are not disclosed. The following table represents a disaggregation of revenue from contracts with customers by geographic location and by the reportable segment for each category (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Americas: United States $ 144,736 $ 165,648 $ 306,768 $ 337,094 The Philippines 58,793 56,571 114,871 116,657 Costa Rica 31,579 30,973 62,296 63,048 Canada 24,506 24,828 50,070 52,017 El Salvador 20,067 20,584 40,543 40,595 People's Republic of China 8,905 8,149 17,808 17,497 Australia 7,328 7,700 14,957 15,402 Mexico 7,075 5,632 13,632 11,950 Colombia 4,746 4,636 9,444 8,691 Other 2,572 2,320 4,695 4,811 Total Americas 310,307 327,041 635,084 667,762 EMEA: Germany 22,813 22,404 46,677 46,579 United Kingdom 17,733 11,960 34,618 25,307 Sweden 13,401 13,674 27,041 27,804 Romania 7,881 8,191 16,393 16,327 Other 16,848 13,491 32,075 27,330 Total EMEA 78,676 69,720 156,804 143,347 Total Other 23 24 43 47 $ 389,006 $ 396,785 $ 791,931 $ 811,156 Revenues are attributed to countries based on location of customer, except for revenues for The Philippines, Costa Rica, the People’s Republic of China and India, which are primarily comprised of customers located in the U.S. but serviced by centers in those respective geographic locations. |
Other Income (Expense)
Other Income (Expense) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Other Income (Expense) | Note 17. Other Income (Expense) Other income (expense), net consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Foreign currency transaction gains (losses) $ (361 ) $ 641 $ (537 ) $ 2,089 Gains (losses) on derivative instruments not designated as hedges (432 ) (345 ) (465 ) (1,427 ) Net investment gains (losses) on investments held in rabbi trust 426 142 1,606 117 Other miscellaneous income (expense) (166 ) (975 ) (527 ) (1,161 ) $ (533 ) $ (537 ) $ 77 $ (382 ) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 18. Related Party Transactions In January 2008, the Company entered into a lease for a customer engagement center located in Kingstree, South Carolina. The landlord, Kingstree Office One, LLC, is an entity controlled by John H. Sykes, the founder, former Chairman and former Chief Executive Officer of the Company and the father of Charles Sykes, President and Chief Executive Officer of the Company. The lease payments on the 20-year lease were negotiated at or below market rates, and the lease is cancellable at the option of the Company. The Company paid $0.1 million to the landlord during both the three months ended June 30, 2019 and 2018 and $0.2 million during both the six months ended June 30, 2019 and 2018 under the terms of the lease. The Company contracted to receive services from XSell, an equity method investee, for $0.1 million during the three months ended June 30, 2018 (none in 2019), and less than $0.1 million and $0.1 million during the six months ended June 30, 2019 and 2018, respectively. These related party transactions occurred in the normal course of business on terms and conditions that are similar to those of transactions with unrelated parties and, therefore, were measured at the exchange amount |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business | Business — Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a leading provider of multichannel demand generation and global customer engagement services. SYKES provides differentiated full lifecycle customer engagement solutions and services primarily to Global 2000 companies and their end customers, principally within the financial services, communications, technology, transportation & leisure, healthcare and other industries. SYKES primarily provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. SYKES also provides various enterprise support services in the United States that include services for its clients’ internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which include order processing, payment processing, inventory control, product delivery and product returns handling. Additionally, through the Company’s acquisition of robotic processing automation (“RPA”) provider Symphony Ventures Ltd (“Symphony”) coupled with its investment in artificial intelligence (“AI”) through XSell Technologies, Inc. (“XSell”) , the Company also provides a suite of solutions such as consulting, implementation, hosting and managed services that optimizes its differentiated full lifecycle management services platform. The Company has operations in two reportable segments entitled (1) the Americas, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim; and (2) EMEA, which includes Europe, the Middle East and Africa. U.S. 2017 Tax Reform Act On December 20, 2017, the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”) was approved by Congress and received presidential approval on December 22, 2017. In general, the 2017 Tax Reform Act reduced the U.S. federal corporate tax rate from 35% to 21%, effective in 2018. The 2017 Tax Reform Act moved from a worldwide business taxation approach to a participation exemption regime. The 2017 Tax Reform Act also imposed base-erosion prevention measures on non-U.S. earnings of U.S. entities, as well as a one-time mandatory deemed repatriation tax on accumulated non-U.S. earnings. The impact of the 2017 Tax Reform Act on the Company’s consolidated financial results began with the fourth quarter of 2017, the period of enactment. See Note 11, Income Taxes, for further information. Acquisitions Symphony Acquisition On October 18, 2018, the Company, as guarantor, and its wholly-owned subsidiary, SEI International Services S.a.r.l, a Luxembourg company, entered into the Symphony Purchase Agreement with Pascal Baker, Ian Barkin, David Brain, David Poole, FIS Nominee Limited, Baronsmead Venture Trust plc and Baronsmead Second Venture Trust plc (together, the “Symphony Sellers”) to acquire all of the outstanding shares of Symphony. Symphony, headquartered in London, England, provides RPA services, offering RPA consulting, implementation, hosting and managed services for front, middle and back-office processes. Symphony serves numerous industries globally, including financial services, healthcare, business services, manufacturing, consumer products, communications, media and entertainment. The aggregate purchase price was GBP 52.5 million ($67.6 million), subject to a post-closing working capital adjustment, of which the Company paid GBP 44.6 million ($57.6 million) at the closing of the transaction on November 1, 2018 using cash on hand as well as $31.0 million of additional borrowings under the Company’s credit agreement. The acquisition date present value of the remaining GBP 7.9 million ($10.0 million) of purchase price has been deferred and will be paid in equal installments over three years, on or around November 1, 2019, 2020 and 2021. The Symphony Purchase Agreement also provides for a three-year, retention based earnout payable in restricted stock units (“RSUs”) with a value of GBP 3.0 million. Subsequent to the finalization of the working capital adjustments during the six months ended June 3 0 , 2019, the purchase price was adjusted to GBP 52.4 million ($ 67.5 million). The acquisition resulted in $ 26.1 million of intangible assets, primarily customer relationships and trade names, $ 2.2 million of fixed assets and $ million of goodwill. The Symphony Purchase Agreement contains customary representations and warranties, indemnification obligations and covenants. The Company accounted for the Symphony acquisition in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations , WhistleOut Acquisition On July 9, 2018, the Company, as guarantor, and its wholly-owned subsidiaries, Sykes Australia Pty Ltd, an Australian company, and Clear Link Technologies, LLC, a Delaware limited liability company, entered into and closed the WhistleOut Sale Agreement with WhistleOut Nominees Pty Ltd as trustee for the WhistleOut Holdings Unit Trust, CPC Investments USA Pty Ltd, JJZL Pty Ltd, Kenneth Wong as trustee for Wong Family Trust and C41 Pty Ltd as trustee for the Ottery Family Trust (together, the “WhistleOut Sellers”) to acquire all of the outstanding shares of WhistleOut. The aggregate purchase price of AUD 30.2 million ($22.4 million) was paid at the closing of the transaction on July 9, 2018. Subsequent to the finalization of the working capital adjustments during the six months ended June 30, 2019, the purchase price was adjusted to AUD 30.3 million ($22.5 million). The purchase price was funded through $22.0 million of additional borrowings under the Company’s credit agreement. The WhistleOut Sale Agreement provides for a three-year, retention based earnout of AUD 14.0 million. The WhistleOut Sale Agreement contained customary representations and warranties, indemnification obligations and covenants. The Company accounted for the WhistleOut acquisition in accordance with ASC 805 , |
Basis of Presentation | Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2019. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission (“SEC”) on February 26, 2019. |
Principles of Consolidation | Principles of Consolidation — The condensed consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. Investments in less than majority-owned subsidiaries in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates — The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Subsequent Events | Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. There were no material subsequent events that required recognition or disclosure in the accompanying condensed consolidated financial statements. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash — Cash and cash equivalents consist of cash and highly liquid short-term investments, primarily held in non-interest-bearing investments which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets that sum to the amounts reported in the Condensed Consolidated Statements of Cash Flows (in thousands): June 30, 2019 December 31, 2018 June 30, 2018 December 31, 2017 Cash and cash equivalents $ 136,631 $ 128,697 $ 162,422 $ 343,734 Restricted cash included in "Other current assets" 566 149 153 154 Restricted cash included in "Deferred charges and other assets" 1,370 1,385 868 917 $ 138,567 $ 130,231 $ 163,443 $ 344,805 |
Investments in Equity Method Investees | Investments in Equity Method Investees — In July 2017, the Company made a strategic investment of $10.0 million in XSell for 32.8% of XSell’s preferred stock. The Company is incorporating XSell’s machine learning and AI algorithms into its business. The Company believes this will increase the sales performance of its agents to drive revenue for its clients, improve the experience of the Company’s clients’ end customers and enhance brand loyalty, reduce the cost of customer care and leverage analytics and machine learning to source the best agents and improve their performance. The Company’s net investment in XSell of $8.9 million and $9.2 million was included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, respectively. The Company’s investment was paid in two installments of $5.0 million, one in July 2017 and one in August 2018. The Company’s proportionate share of XSell’s net (loss) of $(0.1) million and $(0.1) million for the three months ended June 30, 2019 and 2018, respectively, and $(0.3) million and $(0.3) million for the six months ended June 30, 2019 and 2018, respectively, was included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations. As of June 30, 2019 and December 31, 2018, the Company did not identify any instances where the carrying values of its equity method investments were not recoverable. |
Customer-Acquisition Advertising Costs | Customer-Acquisition Advertising Costs — The Company’s advertising costs are expensed as incurred. Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Customer-acquisition advertising costs $ 10,036 $ 11,961 $ 22,140 $ 21,928 |
Reclassifications | Reclassifications — Certain balances in the prior period have been reclassified to conform to current period presentation. |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted Fair Value Measurements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 201 8 -1 3 ”). These amendments remove, modify or add certain disclosure requirements for fair value measurements . These amendments are effective for fiscal years , and interim periods within those fiscal years, b eginning after December 15, 2019 . Certain of the amendments will be applied prospectively in the initial year of adoption while the remainder are required to be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. The Company does not expect its adoption of ASU 2018-13 to have a material impact on its disclosures and does not expect to early adopt the standard . Retirement Benefits In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans - General (Subtopic 715-20) – Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). These amendments These amendments are effective for fiscal years ending after December 15, 2020, with early adoption permitted. The Company does not expect its adoption of ASU 2018-14 to have a material impact on its financial condition, results of operations, cash flows or disclosures and does not expect to early adopt the standard. Cloud Computing In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). These amendments These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect its adoption of ASU 2018-15 to have a material impact on its financial condition, results of operations, cash flows or disclosures and does not expect to early adopt the standard. Financial Instruments – Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). These amendments held. Entities are required to measure all expected credit losses for most financial assets held at the reporting date based on an expected loss model which includes historical experience, current conditions, and reasonable and supportable forecasts. Subsequently, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses in November 2018 and ASU 2019-05, Financial Instruments – Credit Losses (Topic 326) Targeted Transition Relief in May 2019 (together, “subsequent amendments”). ASU 2016-13 and the subsequent amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company’s implementation team has begun to assess its data and design its financial models to estimate expected credit losses and continues to evaluate the critical factors of ASU 2016-13 to determine its impact on the Company’s business processes, systems, and internal controls. The Company expects ASU 2016-13 to apply to its trade receivables but does not expect the adoption of the amendments to have a material impact on its financial condition, results of operations or cash flows because credit losses associated with trade receivables have historically been insignificant. The adoption of ASU 2016-13 will require expanded quantitative and qualitative disclosures about the Company’s expected credit losses. Additionally, the Company does not anticipate early adopting ASU 2016-13. Codification Improvements – Financial Instruments – Credit Losses, Derivatives and Hedging, and Financial Instruments In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). These amendments . The credit losses and hedging amendments have the same effective dates as the respective standards, unless an entity has already adopted the standards. The amendments related to recognizing and measuring financial instruments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2019-04 to have a material impact on its financial condition, results of operations, cash flows or disclosures. |
New Accounting Standards Recently Adopted | New Accounting Standards Recently Adopted Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases See Note 3, Leases, for further details as well as the Company’s significant accounting policy for leases. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedge Activities (“ASU 2017-12”). These amendments help simplify certain aspects of hedge accounting and better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update. The adoption of ASU 2017-12 on January 1, 2019 did not have a material impact on the financial condition, results of operations, cash flows or disclosures of the Company. No cumulative-effect adjustment was recorded to opening retained earnings on the date of adoption as there was no ineffectiveness previously recorded in retained earnings that would have been included in other comprehensive income if the new guidance had been applied since hedge inception. Upon adoption of ASU 2017-12, the Company elected the spot method for assessing the effectiveness of net investment hedges and will record the amortization of excluded components of net investment hedges in “Other income (expense), net” in its consolidated financial statements. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company recognizes revenues in accordance with ASC 606, whereby revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. Deferred Revenue The Company receives up-front fees in connection with certain contracts. In accordance with ASC 606, the up-front fees are recorded as a contract liability only to the extent a legally enforceable contract exists. Accordingly, the up-front fees allocated to a contract’s termination notification period, typically varying periods up to 180 days, are recorded as deferred revenue, while the fees that extend beyond the notification period are classified as customer arrangements with termination rights. Revenues of $0.3 million and $0.3 million were recognized during the three months ended June 30, 2019 and 2018, respectively, and revenues of $3.4 million and $4.2 million were recognized during the six months ended June 30, 2019 and 2018, respectively, from amounts included in deferred revenue at December 31, 2018 and January 1, 2018, respectively. The Company expects to recognize the majority of its deferred revenue as of June 30, 2019 over the next 180 days. Customer Liabilities – Customer Arrangements with Termination Rights The majority of the Company’s contracts include termination for convenience or without cause provisions allowing either party to cancel the contract without substantial cost or penalty within a defined notification period (“termination rights”). Customer arrangements with termination rights represent the amount of up-front fees received for unsatisfied performance obligations for periods that extend beyond the legally enforceable contract period. All customer arrangements with termination rights are classified as current as the customer can terminate the contracts and demand pro-rata refunds of the up-front fees over varying periods, typically up to 180 days. The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of contract terminations. Customer Liabilities – Estimated Refund Liabilities Estimated refund liabilities represent consideration received under the contract that the Company expects to ultimately refund to the customer and primarily relates to estimated penalties, holdbacks and chargebacks. Penalties and holdbacks result from the failure to meet specified minimum service levels in certain contracts and other performance-based contingencies. Chargebacks reflect the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred. Estimated refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency. |
Leases | Accounting Policy In determining whether a contract contains a lease, the Company assesses whether the arrangement meets all three of the following criteria: 1) there is an identified asset; 2) the Company has the right to obtain substantially all the economic benefits from use of the identified asset; and 3) the Company has the right to direct the use of the identified asset. This involves evaluating whether the Company has the right to operate the asset or to direct others to operate the asset in a manner that it determines without the supplier having the right to change those operating instructions, as well as evaluating the Company’s involvement in the design of the asset. The Company capitalizes operating lease obligations with terms in excess of twelve months as ROU assets with corresponding lease liabilities on its balance sheet. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Additionally, the ROU asset is adjusted for lease incentives, prepaid lease payments and initial direct costs. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, such as real estate taxes, insurance, common area maintenance and other operating costs. Lease and non-lease components Certain of the Company’s lease agreements include rental payments that adjust periodically based on an index or rate, generally the applicable Consumer Price Index (“CPI”). The operating lease liability is measured using the prevailing index or rate at the measurement date (i.e., the commencement date); however, the most recent CPI in effect as of January 1, 2019 was used to effectuate the adoption of ASC 842. Incremental payments due to c hanges to the index- and rate-based lease payments are treated as variable lease costs and expensed as incurred . For purposes of calculating operating lease liabilities, the lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The primary factors used to estimate whether an option to extend a lease term will be exercised or not generally include the extent of the Company’s capital investment, employee recruitment potential and operational cost and flexibility. In determining the present value of lease payments, the Company typically uses incremental borrowing rates based on information available at the lease commencement date. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s incremental borrowing rate is estimated using a synthetic credit rating model and forward currency exchange rates, as applicable. Payments on leases with an initial term of 12 months or less are recognized in the accompanying Condensed Consolidated Statements of Operations on a straight-line basis over the lease term. The ROU asset is evaluated for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, Property, Plant and Equipment |
Fair Value Measurements | ASC 820, Fair Value Measurements and Disclosures requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for how these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy: • Level 1 — Quoted prices for identical instruments in active markets. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable . |
Financial Instruments | Determination of Fair Value — The Company generally uses quoted market prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access to determine fair value and classifies such items in Level 1. Fair values determined by Level 2 inputs utilize inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, and inputs other than quoted market prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency exchange rates, etc. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable. The following describes the valuation methodologies used by the Company to measure assets and liabilities at fair value on a recurring basis, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified, if applicable. Cash, Short-Term and Other Investments and Accounts Payable The carrying values for cash, short-term and other investments and accounts payable approximate their fair values. Long-Term Debt The carrying value of long-term debt approximates its estimated fair value as the debt bears interest based on variable market rates, as outlined in the debt agreement. Foreign Currency Contracts — The Company enters into foreign currency forward contracts and options over the counter and values such contracts, including premiums paid on options, at fair value using quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk. The key inputs include forward or option foreign currency exchange rates and interest rates. These items are classified in Level 2 of the fair value hierarchy. Embedded Derivatives — Prior to the adoption of ASC 842, the Company had embedded derivatives within certain hybrid lease agreements that were bifurcated from the host contract and valued such contracts at fair value using significant unobservable inputs, which are classified in Level 3 of the fair value hierarchy. These unobservable inputs included expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates, the results of which were adjusted for credit risk. These items were classified in Level 3 of the fair value hierarchy. See Note 3, Leases, and Note 7, Financial Derivatives, for further information. Investments Held in Rabbi Trust — The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 8, Investments Held in Rabbi Trust. |
Foreign Currency and Derivative Instruments | Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815, Derivatives and Hedging (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These foreign currency contracts are entered into to hedge the exposure to variability in the cash flows of a specific asset or liability, or of a forecasted transaction that is attributable to changes in exchange rates. |
Earnings Per Share | Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method. |
Segments and Geographic Information | The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers. |
Overview and Basis of Present_3
Overview and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets that sum to the amounts reported in the Condensed Consolidated Statements of Cash Flows (in thousands): June 30, 2019 December 31, 2018 June 30, 2018 December 31, 2017 Cash and cash equivalents $ 136,631 $ 128,697 $ 162,422 $ 343,734 Restricted cash included in "Other current assets" 566 149 153 154 Restricted cash included in "Deferred charges and other assets" 1,370 1,385 868 917 $ 138,567 $ 130,231 $ 163,443 $ 344,805 |
Schedule of Customer-Acquisition Advertising Costs | Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Customer-acquisition advertising costs $ 10,036 $ 11,961 $ 22,140 $ 21,928 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenues from Contracts with Customers Disaggregated by Service Type | The following table represents revenues from contracts with customers disaggregated by service type and by the reportable segment for each category (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Americas: Customer engagement solutions and services $ 310,070 $ 326,766 $ 634,632 $ 667,188 Other revenues 237 275 452 574 Total Americas 310,307 327,041 635,084 667,762 EMEA: Customer engagement solutions and services 68,643 67,772 139,640 139,443 Other revenues 10,033 1,948 17,164 3,904 Total EMEA 78,676 69,720 156,804 143,347 Other: Other revenues 23 24 43 47 Total Other 23 24 43 47 $ 389,006 $ 396,785 $ 791,931 $ 811,156 |
Receivables, Net | The Company’s trade accounts receivable, net, consists of the following (in thousands): June 30, 2019 December 31, 2018 Trade accounts receivable, net, current (1) $ 336,755 $ 335,377 Trade accounts receivable, net, noncurrent (2) 19,185 15,948 $ 355,940 $ 351,325 (1) Included in “Receivables, net” in the accompanying Condensed Consolidated Balance Sheets. (2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets. |
Components of Deferred Revenue and Customer Liabilities | Deferred revenue and customer liabilities consists of the following (in thousands): June 30, 2019 December 31, 2018 Deferred revenue $ 4,266 $ 3,655 Customer arrangements with termination rights 16,497 16,404 Estimated refund liabilities 7,794 10,117 $ 28,557 $ 30,176 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease | Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense were as follows (in thousands): Statement of Operations Location Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost Direct salaries and related costs $ 58 $ 133 Operating lease cost General and administrative 15,008 29,815 Short-term lease cost General and administrative 390 813 Variable lease cost Direct salaries and related costs (3 ) (1 ) Variable lease cost General and administrative 1,273 2,310 Sublease income General and administrative (569 ) (997 ) $ 16,157 $ 32,073 Supplemental cash flow information related to leases was as follows (in thousands): Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities - operating cash flows $ 29,119 Right-of-use assets obtained in exchange for new operating lease liabilities 10,663 Additional supplemental information related to leases was as follows: June 30, 2019 Weighted average remaining lease term of operating leases 5.5 years Weighted average discount rate of operating leases 3.7 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of June 30, 2019 were as follows (in thousands): Amount 2019 (remainder of the year) $ 25,012 2020 56,277 2021 49,779 2022 38,193 2023 24,721 2024 and thereafter 54,329 Total future lease payments 248,311 Less: Imputed interest 25,258 Present value of future lease payments 223,053 Less: Operating lease liabilities 48,864 Long-term operating lease liabilities $ 174,189 |
Schedule of Future Minimum Rental Payments for Operating Leases under ASC 840 | The following is a schedule of future minimum rental payments required under operating leases that had noncancelable lease terms as of December 31, 2018 under ASC 840 (in thousands): Amount 2019 $ 53,071 2020 48,770 2021 43,324 2022 34,063 2023 22,583 2024 and thereafter 51,456 $ 253,267 |
Costs Associated with Exit or_2
Costs Associated with Exit or Disposal Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring And Related Activities [Abstract] | |
Cumulative Costs Expected and Incurred to Date Related to Cash and Non-Cash Expenditures Resulting from Exit Plan | The cumulative costs expected and incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 Exit Plan and the Americas 2019 Exit Plan are outlined below as of June 30, 2019 (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan Lease obligations and facility exit costs (1) $ 7,073 $ 54 Severance and related costs (2) 3,426 191 Severance and related costs (1) 1,045 2,169 Non-cash impairment charges 5,875 1,582 Other non-cash charges — 244 $ 17,419 $ 4,240 (1) Included in “General and administrative” costs. (2) Included in “ Direct salaries and related costs. |
Summary of Accrued Liability and Related Charges | The following table summarizes the accrued liability and related charges for the three months ended June 30, 2019 (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan Lease Obligations and Facility Exit Costs Severance and Related Costs Total Lease Obligations and Facility Exit Costs Severance and Related Costs Total Balance at the beginning of the period $ 162 $ 495 $ 657 $ — $ 1,040 $ 1,040 Charges (reversals) included in "Direct salaries and related costs" — (3 ) (3 ) — 184 184 Charges (reversals) included in "General and administrative" — (9 ) (9 ) 54 1,079 1,133 Cash payments (33 ) (261 ) (294 ) — (742 ) (742 ) Balance at the end of the period $ 129 $ 222 $ 351 $ 54 $ 1,561 $ 1,615 The following table summarizes the accrued liability and related charges for the six months ended June 30, 2019 (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan Lease Obligations and Facility Exit Costs Severance and Related Costs Total Lease Obligations and Facility Exit Costs Severance and Related Costs Total Balance at the beginning of the period $ 1,769 $ 817 $ 2,586 $ — $ — $ — Charges (reversals) included in "Direct salaries and related costs" — (3 ) (3 ) — 191 191 Charges (reversals) included in "General and administrative" (4 ) 10 6 54 2,169 2,223 Cash payments (298 ) (602 ) (900 ) — (799 ) (799 ) Balance sheet reclassifications (1) (1,338 ) — (1,338 ) — — — Balance at the end of the period $ 129 $ 222 $ 351 $ 54 $ 1,561 $ 1,615 (1) Consists of the reclassification from the restructuring liability to “Operating lease liabilities” and “Long-term operating lease liabilities” upon adoption of ASC 842 on January 1, 2019. The following table summarizes the accrued liability and related charges for the three and six months ended June 30, 201 8 (in thousands): Americas 2018 Exit Plan Lease Obligations and Facility Exit Costs Severance and Related Costs Total Balance at the beginning of the period $ — $ — $ — Charges (reversals) included in "Direct salaries and related costs" — 402 402 Charges (reversals) included in "General and administrative" 3,028 219 3,247 Cash payments (429 ) (131 ) (560 ) Balance sheet reclassifications (1) 216 — 216 Balance at the end of the period $ 2,815 $ 490 $ 3,305 (1) Consists of the reclassification of deferred rent balances to the restructuring liability for locations subject to closure. |
Summary of Company's Short-term and Long-term Accrued Liability with Exit Plan | The following table summarizes the Company’s short-term and long-term accrued liabilities associated with its Americas 2018 and 2019 Exit Plans (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan June 30, 2019 December 31, 2018 June 30, 2019 Lease obligations and facility exit costs: Included in "Accounts payable" $ — $ 100 $ 54 Included in "Other accrued expenses and current liabilities" 74 952 — Included in "Other long-term liabilities" 55 717 — 129 1,769 54 Severance and related costs: Included in "Accrued employee compensation and benefits" 222 793 1,553 Included in "Other accrued expenses and current liabilities" — 24 8 222 817 1,561 $ 351 $ 2,586 $ 1,615 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company's assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following (in thousands): Fair Value Measurements Using: Balance at Quoted Prices in Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2019 Level 1 Level 2 Level 3 Assets: Foreign currency contracts (1) $ 3,265 $ — $ 3,265 $ — Equity investments held in rabbi trust for the Deferred Compensation Plan (2) 9,101 9,101 — — Debt investments held in rabbi trust for the Deferred Compensation Plan (2) 4,778 4,778 — — $ 17,144 $ 13,879 $ 3,265 $ — Liabilities: Foreign currency contracts (1) $ 172 $ — $ 172 $ — $ 172 $ — $ 172 $ — Fair Value Measurements Using: Balance at Quoted Prices in Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2018 Level 1 Level 2 Level 3 Assets: Foreign currency contracts (1) $ 1,068 $ — $ 1,068 $ — Embedded derivatives (1) 10 — — 10 Equity investments held in rabbi trust for the Deferred Compensation Plan (2) 8,075 8,075 — — Debt investments held in rabbi trust for the Deferred Compensation Plan (2) 3,367 3,367 — — $ 12,520 $ 11,442 $ 1,068 $ 10 Liabilities: Foreign currency contracts (1) $ 2,895 $ — $ 2,895 $ — Embedded derivatives (1) 369 — — 369 $ 3,264 $ — $ 2,895 $ 369 (1) See Note 7, Financial Derivatives, for the classification in the accompanying Condensed Consolidated Balance Sheets. (2) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. See Note 8, Investments Held in Rabbi Trust. |
Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives | A rollforward of the net asset (liability) activity in the Company’s fair value of the embedded derivatives is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balance at the beginning of the period $ — $ (409 ) $ (359 ) $ (527 ) Derecognition of embedded derivatives (1) — — 359 — Gains (losses) recognized in "Other income (expense), net" — (252 ) — (165 ) Settlements — 38 — 80 Effect of foreign currency — 25 — 14 Balance at the end of the period $ — $ (598 ) $ — $ (598 ) Change in unrealized gains (losses) included in "Other income (expense), net" related to embedded derivatives held at the end of the period $ — $ (253 ) $ — $ (171 ) (1) Derecognition upon adoption of ASC 842 on January 1, 2019. See Note 3, Leases, for more information. |
Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets | The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Americas: Property and equipment, net $ — $ (5,175 ) $ (343 ) $ (8,701 ) Operating lease right-of-use assets (129 ) — (1,368 ) — $ (129 ) $ (5,175 ) $ (1,711 ) $ (8,701 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Company's Purchased Intangible Assets | The following table presents the Company’s purchased intangible assets as of June 30, 2019 (in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Intangible assets subject to amortization: Customer relationships $ 190,290 $ (114,031 ) $ 76,259 10 Trade names and trademarks 19,219 (11,750 ) 7,469 8 Non-compete agreements 2,742 (2,022 ) 720 3 Content library 513 (513 ) — 2 Proprietary software 1,040 (795 ) 245 4 Intangible assets not subject to amortization: Domain names 80,816 — 80,816 N/A $ 294,620 $ (129,111 ) $ 165,509 5 The following table presents the Company’s purchased intangible assets as of December 31, 2018 (in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Intangible assets subject to amortization: Customer relationships $ 189,697 $ (106,502 ) $ 83,195 10 Trade names and trademarks 19,236 (10,594 ) 8,642 8 Non-compete agreements 2,746 (1,724 ) 1,022 3 Content library 517 (517 ) — 2 Proprietary software 1,040 (725 ) 315 4 Intangible assets not subject to amortization: Domain names 80,857 — 80,857 N/A $ 294,093 $ (120,062 ) $ 174,031 5 |
Estimated Future Amortization Expense | The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2019 is as follows (in thousands): Years Ending December 31, Amount 2019 (remainder of the year) 8,274 2020 14,011 2021 9,422 2022 8,121 2023 7,273 2024 7,027 2025 and thereafter 30,565 |
Changes in Goodwill | Changes in goodwill for the six months ended June 30, 2019 consisted of the following (in thousands): January Acquisition- Related (1) Effect of Foreign Currency June 30, 2019 Americas $ 255,436 $ 1,202 $ 2,554 $ 259,192 EMEA 47,081 (124 ) (99 ) 46,858 $ 302,517 $ 1,078 $ 2,455 $ 306,050 Changes in goodwill for the year ended December 31, 2018 consisted of the following (in thousands): January Acquisition- Related (1) Effect of Foreign Currency December 31, 2018 Americas $ 258,496 $ 2,175 $ (5,235 ) $ 255,436 EMEA 10,769 36,361 (49 ) 47,081 $ 269,265 $ 38,536 $ (5,284 ) $ 302,517 (1) See Note 1, Overview and Basis of Presentation, for further information. The year ended December 31, 2018 includes the goodwill recorded upon acquisition, while the six months ended June 30, 2019 includes the impact of adjustments to acquired goodwill upon finalization of working capital adjustments and the tax analysis of WhistleOut’s assets acquired and liabilities assumed. |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges | The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands): June 30, 2019 December 31, 2018 Deferred gains (losses) in AOCI $ 2,733 $ (1,825 ) Tax on deferred gains (losses) in AOCI (97 ) (39 ) Deferred gains (losses) in AOCI, net of taxes $ 2,636 $ (1,864 ) Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months $ 2,733 |
Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives | The Company had the following outstanding foreign currency forward contracts and options, and embedded derivatives (in thousands): June 30, 2019 December 31, 2018 Contract Type Notional Amount in USD Settle Through Date Notional Amount in USD Settle Through Date Cash flow hedges: Options: US Dollars/Philippine Pesos $ 41,250 June 2020 $ 26,250 December 2019 Forwards: US Dollars/Philippine Pesos 6,000 September 2019 39,000 September 2019 US Dollars/Costa Rican Colones 42,000 June 2020 67,000 December 2019 Euros/Hungarian Forints 1,569 December 2019 — — Euros/Romanian Leis 8,427 December 2019 — — Non-designated hedges: Forwards 20,031 November 2021 19,261 November 2021 Embedded derivatives — — 14,069 April 2030 |
Derivative Instruments Fair Value | The following tables present the fair value of the Company’s derivative instruments included in the accompanying Condensed Consolidated Balance Sheets (in thousands) Derivative Assets Balance Sheet Location June 30, 2019 December 31, 2018 Derivatives designated as cash flow hedging instruments: Foreign currency contracts Other current assets $ 3,167 $ 1,038 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets 55 30 Foreign currency contracts Deferred charges and other assets 43 — Embedded derivatives Other current assets — 10 Total derivative assets $ 3,265 $ 1,078 Derivative Liabilities Balance Sheet Location June 30, 2019 December 31, 2018 Derivatives designated as cash flow hedging instruments: Foreign currency contracts Other accrued expenses and current liabilities $ 7 $ 2,604 Derivatives not designated as hedging instruments: Foreign currency contracts Other accrued expenses and current liabilities 165 247 Foreign currency contracts Other long-term liabilities — 44 Embedded derivatives Other accrued expenses and current liabilities — 8 Embedded derivatives Other long-term liabilities — 361 Total derivative liabilities $ 172 $ 3,264 |
Effect of the Company's Derivative Instruments | The following table presents the effect of the Company’s derivative instruments included in the accompanying condensed consolidated financial statements (in thousands) Location of Gains Three Months Ended June 30, Six Months Ended June 30, (Losses) in Net Income 2019 2018 2019 2018 Revenues $ 389,006 $ 396,785 $ 791,931 $ 811,156 Derivatives designated as cash flow hedging instruments: Gains (losses) recognized in AOCI: Foreign currency contracts 3,586 (305 ) 4,769 (3,001 ) Gains (losses) reclassified from AOCI: Foreign currency contracts Revenues 631 193 130 436 Derivatives not designated as hedging instruments: Gains (losses) recognized from foreign currency contracts Other income (expense), net $ (432 ) $ (93 ) $ (465 ) $ (1,262 ) Gains (losses) recognized from embedded derivatives Other income (expense), net — (252 ) — (165 ) $ (432 ) $ (345 ) $ (465 ) $ (1,427 ) |
Investments Held in Rabbi Tru_2
Investments Held in Rabbi Trust (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments Held in Rabbi Trust, Classified as Trading | The Company’s investments held in rabbi trust, classified as trading securities and included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets, at fair value, consist of the following (in thousands): June 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Mutual funds $ 9,744 $ 13,879 $ 8,864 $ 11,442 |
Components of Investment Income (Losses), Included in Other Income (Expense), Net in Accompanying Consolidated Statements of Operations | The mutual funds held in rabbi trust were 66% equity-based and 34% debt-based as of June 30, 2019. Net investment gains (losses) included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net realized gains (losses) from sale of trading securities $ 5 $ 27 $ 66 $ 32 Dividend and interest income 53 43 82 68 Net unrealized holding gains (losses) 368 72 1,458 17 $ 426 $ 142 $ 1,606 $ 117 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Information Related to Credit Agreements | The following table presents information related to our credit agreements (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average daily utilization $ 89,593 $ 100,110 $ 92,779 $ 110,691 Interest expense (1) $ 922 $ 915 $ 1,884 $ 1,916 Weighted average interest rate (1) 4.1 % 3.7 % 4.1 % 3.5 % (1) Excludes the amortization of deferred loan fees and includes the commitment fee. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) consist of the following (in thousands): Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Net Investment Hedge Unrealized Gain (Loss) on Cash Flow Hedging Instruments Unrealized Actuarial Gain (Loss) Related to Pension Liability Unrealized Gain (Loss) on Postretirement Obligation Total Balance at January 1, 2018 $ (36,315 ) $ 1,046 $ 2,471 $ 1,574 $ 120 $ (31,104 ) Pre-tax amount (22,158 ) — (4,287 ) 783 — (25,662 ) Tax (provision) benefit — — 84 47 — 131 Reclassification of (gain) loss to net income — — 6 (66 ) (80 ) (140 ) Foreign currency translation 220 — (138 ) (82 ) — — Balance at December 31, 2018 (58,253 ) 1,046 (1,864 ) 2,256 40 (56,775 ) Pre-tax amount 3,680 — 4,769 — — 8,449 Tax (provision) benefit — — (101 ) 6 — (95 ) Reclassification of (gain) loss to net income — — (85 ) (48 ) (10 ) (143 ) Foreign currency translation 21 — (83 ) 62 — — Balance at June 30, 2019 $ (54,552 ) $ 1,046 $ 2,636 $ 2,276 $ 30 $ (48,564 ) |
Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) | The following table summarizes the amounts reclassified to net income from accumulated other comprehensive income (loss) and the associated line item in the accompanying Condensed Consolidated Statements of Operations (in thousands): Three Months Ended June 30, Six Months Ended June 30, Statements Operations 2019 2018 2019 2018 Location Gain (loss) on cash flow hedging instruments: (1) Pre-tax amount $ 631 $ 193 $ 130 $ 436 Revenues Tax (provision) benefit (35 ) 17 (45 ) 24 Income taxes Reclassification to net income 596 210 85 460 Actuarial gain (loss) related to pension liability: (2) Pre-tax amount 21 14 42 29 Other Tax (provision) benefit 3 3 6 6 Income taxes Reclassification to net income 24 17 48 35 Gain (loss) on postretirement obligation: (2),(3) Reclassification to net income 5 10 10 20 Other $ 625 $ 237 $ 143 $ 515 (1) See Note 7, Financial Derivatives, for further information. (2) See Note 14, Defined Benefit Pension Plan and Postretirement Benefits, for further information. (3) No related tax (provision) benefit. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Tax Rates | The Company’s effective tax rates were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Effective tax rate 18.0 % -45.0 % 23.7 % 1.2 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Numbers of Shares Used in Earnings Per Share Computation | The numbers of shares used in the earnings per share computation were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic: Weighted average common shares outstanding 42,038 42,125 42,107 42,035 Diluted: Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust 56 35 93 162 Total weighted average diluted shares outstanding 42,094 42,160 42,200 42,197 Anti-dilutive shares excluded from the diluted earnings per share calculation 207 31 164 6 |
Shares Repurchased | The shares repurchased under the Company’s 2011 Share Repurchase Program during the three and six months ended June 30, 2019 were as follows (none in 2018) (in thousands, except per share amounts): Total Number of Shares Range of Prices Paid Per Share Total Cost of Shares For the Three and Six Months Ended: Repurchased Low High Repurchased June 30, 2019 771 $ 24.72 $ 27.30 $ 20,178 |
Defined Benefit Pension Plan _2
Defined Benefit Pension Plan and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Periodic Benefit Cost and Other Accumulated Comprehensive Income for Pension Plans | The following table provides information about the net periodic benefit cost for the Company’s pension plans (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Service cost $ 100 $ 109 $ 198 $ 223 Interest cost 62 48 124 98 Recognized actuarial (gains) (21 ) (14 ) (42 ) (29 ) $ 141 $ 143 $ 280 $ 292 |
Company's Contributions to Employee Retirement Savings Plans | The Company’s contributions included in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 401(k) plan contributions $ 419 $ 344 $ 885 $ 803 |
Post-Retirement Benefit Obligation and Unrealized Gain (Losses) | The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands): June 30, 2019 December 31, 2018 Postretirement benefit obligation $ 8 $ 12 Unrealized gains (losses) in AOCI (1) 30 40 (1) Unrealized gains (losses) are due to changes in discount rates related to the postretirement obligation. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company Both Plan and Non-Plan | The following table summarizes the stock-based compensation expense (primarily in the Americas) and income tax benefits related to the stock-based compensation, both plan and non-plan related (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock-based compensation (expense) (1) $ (2,200 ) $ (1,673 ) $ (4,090 ) $ (3,750 ) Income tax benefit (2) 528 402 982 900 (1) Included in "General and administrative" costs in the accompanying Condensed Consolidated Statements of Operations. (2) Included in "Income taxes" in the accompanying Condensed Consolidated Statements of Operations . |
Segments and Geographic Infor_2
Segments and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Company's Reportable Segments | Information about the Company’s reportable segments is as follows (in thousands): Americas EMEA Other (1) Consolidated Three Months Ended June 30, 2019: Revenues $ 310,307 $ 78,676 $ 23 $ 389,006 Percentage of revenues 79.8 % 20.2 % 0.0 % 100.0 % Depreciation, net $ 10,659 $ 1,628 $ 765 $ 13,052 Amortization of intangibles $ 3,288 $ 839 $ — $ 4,127 Income (loss) from operations $ 26,584 $ 4,661 $ (15,990 ) $ 15,255 Total other income (expense), net (1,520 ) (1,520 ) Income taxes (2,466 ) (2,466 ) Net income $ 11,269 Three Months Ended June 30, 2018: Revenues $ 327,041 $ 69,720 $ 24 $ 396,785 Percentage of revenues 82.4 % 17.6 % 0.0 % 100.0 % Depreciation, net $ 12,335 $ 1,476 $ 749 $ 14,560 Amortization of intangibles $ 3,415 $ 214 $ — $ 3,629 Income (loss) from operations $ 19,824 $ 2,220 $ (15,584 ) $ 6,460 Total other income (expense), net (1,511 ) (1,511 ) Income taxes 2,229 2,229 Net income $ 7,178 Six Months Ended June 30, 2019: Revenues $ 635,084 $ 156,804 $ 43 $ 791,931 Percentage of revenues 80.2 % 19.8 % 0.0 % 100.0 % Depreciation, net $ 22,166 $ 3,254 $ 1,529 $ 26,949 Amortization of intangibles $ 6,726 $ 1,687 $ — $ 8,413 Income (loss) from operations $ 56,652 $ 6,152 $ (30,797 ) $ 32,007 Total other income (expense), net (1,903 ) (1,903 ) Income taxes (7,148 ) (7,148 ) Net income $ 22,956 Six Months Ended June 30, 2018: Revenues $ 667,762 $ 143,347 $ 47 $ 811,156 Percentage of revenues 82.3 % 17.7 % 0.0 % 100.0 % Depreciation, net $ 25,018 $ 2,887 $ 1,491 $ 29,396 Amortization of intangibles $ 7,407 $ 435 $ — $ 7,842 Income (loss) from operations $ 45,688 $ 6,859 $ (31,803 ) $ 20,744 Total other income (expense), net (2,391 ) (2,391 ) Income taxes (227 ) (227 ) Net income $ 18,126 (1) Other items (including corporate and other costs, other income and expense, and income taxes) are included for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the periods shown. Inter-segment revenues are not material to the Americas and EMEA segment results. |
Operations by Geographic Location | The following table represents a disaggregation of revenue from contracts with customers by geographic location and by the reportable segment for each category (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Americas: United States $ 144,736 $ 165,648 $ 306,768 $ 337,094 The Philippines 58,793 56,571 114,871 116,657 Costa Rica 31,579 30,973 62,296 63,048 Canada 24,506 24,828 50,070 52,017 El Salvador 20,067 20,584 40,543 40,595 People's Republic of China 8,905 8,149 17,808 17,497 Australia 7,328 7,700 14,957 15,402 Mexico 7,075 5,632 13,632 11,950 Colombia 4,746 4,636 9,444 8,691 Other 2,572 2,320 4,695 4,811 Total Americas 310,307 327,041 635,084 667,762 EMEA: Germany 22,813 22,404 46,677 46,579 United Kingdom 17,733 11,960 34,618 25,307 Sweden 13,401 13,674 27,041 27,804 Romania 7,881 8,191 16,393 16,327 Other 16,848 13,491 32,075 27,330 Total EMEA 78,676 69,720 156,804 143,347 Total Other 23 24 43 47 $ 389,006 $ 396,785 $ 791,931 $ 811,156 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Income And Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Foreign currency transaction gains (losses) $ (361 ) $ 641 $ (537 ) $ 2,089 Gains (losses) on derivative instruments not designated as hedges (432 ) (345 ) (465 ) (1,427 ) Net investment gains (losses) on investments held in rabbi trust 426 142 1,606 117 Other miscellaneous income (expense) (166 ) (975 ) (527 ) (1,161 ) $ (533 ) $ (537 ) $ 77 $ (382 ) |
Overview and Basis of Present_4
Overview and Basis of Presentation - Additional Information (Detail) $ in Thousands, £ in Millions, $ in Millions | Nov. 01, 2018USD ($) | Nov. 01, 2018GBP (£) | Oct. 18, 2018 | Jul. 09, 2018USD ($) | Jul. 09, 2018AUD ($) | Aug. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Segment | Jun. 30, 2019GBP (£)Segment | Jun. 30, 2019AUD ($)Segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Number of reportable segments | Segment | 2 | 2 | 2 | ||||||||||||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 35.00% | ||||||||||
Proceeds from issuance of long-term debt | $ 8,000 | $ 5,000 | |||||||||||||
Goodwill, net | $ 306,050 | 306,050 | $ 302,517 | $ 269,265 | |||||||||||
XSell Technologies Inc [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Equity method investment, ownership percentage | 32.80% | ||||||||||||||
Equity method investment payment | $ 5,000 | $ 5,000 | |||||||||||||
XSell Technologies Inc [Member] | Other Income (Expense), Net [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Net (loss) from equity method investments | (100) | $ (100) | (300) | $ (300) | |||||||||||
Deferred Charges and Other Assets [Member] | XSell Technologies Inc [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Equity method investment | $ 10,000 | 8,900 | 8,900 | $ 9,200 | |||||||||||
Symphony [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Date of Acquisition agreement | Oct. 18, 2018 | ||||||||||||||
Purchase price | $ 67,600 | £ 52.5 | $ 67,500 | £ 52.4 | |||||||||||
Payments to acquire businesses, gross | $ 57,600 | £ 44.6 | |||||||||||||
Effective date of acquisition | Nov. 1, 2018 | Nov. 1, 2018 | |||||||||||||
Deferred purchase price | $ 10,000 | £ 7.9 | |||||||||||||
Business combination consideration transferred liabilities incurred payment terms | equal installments over three years, on or around November 1, 2019, 2020 and 2021 | equal installments over three years, on or around November 1, 2019, 2020 and 2021 | equal installments over three years, on or around November 1, 2019, 2020 and 2021 | ||||||||||||
Earnout period | 3 years | 3 years | |||||||||||||
Earnout payable in RSUs | £ | £ 3 | ||||||||||||||
Property and equipment acquired | $ 2,200 | ||||||||||||||
Goodwill, net | 36,200 | $ 36,200 | |||||||||||||
Goodwill, net | $ 36,700 | 36,700 | |||||||||||||
Symphony [Member] | Customer Relationships and Trade Names [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Business combination intangible assets, primarily indefinite-lived domain names acquired | 26,100 | ||||||||||||||
Symphony [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Proceeds from issuance of long-term debt | $ 31,000 | ||||||||||||||
WhistleOut [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Purchase price | $ 22,400 | $ 30.2 | $ 22,500 | $ 30.3 | |||||||||||
Effective date of acquisition | Jul. 9, 2018 | Jul. 9, 2018 | |||||||||||||
Earnout period | 3 years | 3 years | |||||||||||||
Business combination intangible assets, primarily indefinite-lived domain names acquired | $ 16,500 | ||||||||||||||
Property and equipment acquired | 2,400 | ||||||||||||||
Earnout | $ 14 | ||||||||||||||
Goodwill, net | 3,300 | ||||||||||||||
WhistleOut [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Proceeds from issuance of long-term debt | $ 22,000 | ||||||||||||||
US Federal Rate Prior To The 2017 Tax Reform Act [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Statutory federal income tax rate | 35.00% | ||||||||||||||
US 2017 Tax Reform Act [Member] | |||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||||
Statutory federal income tax rate | 21.00% |
Overview and Basis of Present_5
Overview and Basis of Presentation - Summary of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 136,631 | $ 128,697 | $ 162,422 | $ 343,734 |
Cash and Cash Equivalents and Restricted Cash | 138,567 | 130,231 | 163,443 | 344,805 |
Other Current Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash included in "Other current assets" | 566 | 149 | 153 | 154 |
Deferred Charges and Other Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash included in "Deferred charges and other assets" | $ 1,370 | $ 1,385 | $ 868 | $ 917 |
Overview and Basis of Present_6
Overview and Basis of Presentation - Schedule of Total Advertising Costs Included in Direct Salaries and Related Costs in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Direct Salaries and Related Costs [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Customer-acquisition advertising costs | $ 10,036 | $ 11,961 | $ 22,140 | $ 21,928 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% | ||
Deferred revenue recognized in the period | $ 300 | $ 300 | $ 3,400 | $ 4,200 | ||
Revenue remaining performance obligation expected timing of satisfaction explanation | The Company expects to recognize the majority of its deferred revenue as of June 30, 2019 over the next 180 days | |||||
Estimated refund liabilities timing of resolution explanation | Estimated refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency. | |||||
Customer Engagement Solutions and Services [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Revenue, performance obligation satisfied over time, method used, description | Revenues for customer engagement solutions and services are recognized over time using output methods such as a per minute, per hour, per call, per transaction or per time and materials basis | |||||
Other Revenues [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Percentage of revenue | 2.60% | 0.60% | 2.20% | 0.60% | ||
Accounting Standards Update 2014-09 [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | $ 3,019 | |||||
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | $ 3,019 | $ 3,000 |
Revenues - Revenues from Contra
Revenues - Revenues from Contracts with Customers Disaggregated by Service Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 389,006 | $ 396,785 | $ 791,931 | $ 811,156 |
Americas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 310,307 | 327,041 | 635,084 | 667,762 |
Americas [Member] | Customer Engagement Solutions and Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 310,070 | 326,766 | 634,632 | 667,188 |
Americas [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 237 | 275 | 452 | 574 |
EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 78,676 | 69,720 | 156,804 | 143,347 |
EMEA [Member] | Customer Engagement Solutions and Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68,643 | 67,772 | 139,640 | 139,443 |
EMEA [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,033 | 1,948 | 17,164 | 3,904 |
Other Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23 | 24 | 43 | 47 |
Other Segment [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 23 | $ 24 | $ 43 | $ 47 |
Revenues - Summary of Trade Acc
Revenues - Summary of Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable, net | $ 355,940 | $ 351,325 |
Receivables Net, Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable, net, current | 336,755 | 335,377 |
Deferred Charges and Other Assets [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable, net, noncurrent | $ 19,185 | $ 15,948 |
Revenues - Components of Deferr
Revenues - Components of Deferred Revenue and Customer Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Deferred Revenue and Customer Liabilities [Line Items] | ||
Deferred revenue and customer liabilities | $ 28,557 | $ 30,176 |
Deferred Revenue and Customer Liabilities [Member] | ||
Schedule of Deferred Revenue and Customer Liabilities [Line Items] | ||
Deferred revenue | 4,266 | 3,655 |
Customer arrangements with termination rights | 16,497 | 16,404 |
Estimated refund liabilities | $ 7,794 | $ 10,117 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Jan. 01, 2019 | |
Lessee Lease Description [Line Items] | |||||
Operating lease right-of-use assets | $ 210,836 | ||||
Operating lease, liability | 223,053 | ||||
Finance lease | 0 | ||||
Expected contractual sublease income | 13,900 | ||||
Rental expense | $ 18,600 | $ 34,600 | |||
Customer Engagement Centers [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease not yet commenced with future lease payments | $ 2,900 | ||||
Operating lease not yet commenced description | As of June 30, 2019, the Company had additional operating leases for customer engagement centers that had not yet commenced with future lease payments of $2.9 million. These operating leases will commence during the third quarter of 2019 with lease terms between 2 and 8 years. | ||||
Minimum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease term of contract | 3 years | ||||
Operating lease renewal term | 1 month | ||||
Operating lease remaining lease term | 1 month | ||||
Lease terms | 2 years | ||||
Maximum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease term of contract | 20 years | ||||
Operating lease renewal term | 5 years | ||||
Operating lease remaining lease term | 13 years | ||||
Lease terms | 8 years | ||||
Accounting Standards Update 2016-02 [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease right-of-use assets | $ 225,300 | ||||
Operating lease, liability | 239,300 | ||||
Cumulative effect of accounting change | $ 110 | ||||
Derecognition of straight line lease liabilities net | 14,100 | ||||
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Cumulative effect of accounting change | $ 110 | $ 100 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lessee Lease Description [Line Items] | ||
Lease, Cost | $ 16,157 | $ 32,073 |
Direct Salaries And Related Costs [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | 58 | 133 |
Variable lease cost | (3) | (1) |
General and Administrative [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | 15,008 | 29,815 |
Short-term lease cost | 390 | 813 |
Variable lease cost | 1,273 | 2,310 |
Sublease income | $ (569) | $ (997) |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities - operating cash flows | $ 29,119 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 10,663 |
Leases - Schedule of Additional
Leases - Schedule of Additional Supplemental Information Related to Leases (Detail) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term of operating leases | 5 years 6 months |
Weighted average discount rate of operating leases | 3.70% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 (remainder of the year) | $ 25,012 |
2020 | 56,277 |
2021 | 49,779 |
2022 | 38,193 |
2023 | 24,721 |
2024 and thereafter | 54,329 |
Total future lease payments | 248,311 |
Less: Imputed interest | 25,258 |
Present value of future lease payments | 223,053 |
Less: Operating lease liabilities | 48,864 |
Long-term operating lease liabilities | $ 174,189 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments under Operating Leases under ASC 840 (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 53,071 |
2020 | 48,770 |
2021 | 43,324 |
2022 | 34,063 |
2023 | 22,583 |
2024 and thereafter | 51,456 |
Total minimum payments required | $ 253,267 |
Costs Associated with Exit or_3
Costs Associated with Exit or Disposal Activities - Additional Information (Detail) - Americas [Member] $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018Seat | |
Restructuring Cost And Reserve [Line Items] | |||
Total cash payment related to restructuring | $ 11 | $ 11 | |
2018 Exit Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Reduction in number of seats | Seat | 5,000 | ||
Total cash payment related to restructuring | 10.2 | $ 10.2 | |
Lease termination date | Jun. 30, 2021 | ||
2019 Exit Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Increase (decrease) restructuring and related cost expected cost | 0.5 | ||
Total cash payment related to restructuring | $ 0.8 | $ 0.8 |
Costs Associated with Exit or_4
Costs Associated with Exit or Disposal Activities - Cumulative Total Costs Expected and Incurred to Date Related to Cash and Non-Cash Expenditures Resulting from Exit Plan (Detail) - Americas [Member] $ in Thousands | Jun. 30, 2019USD ($) |
2018 Exit Plan [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | $ 17,419 |
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | 7,073 |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | 1,045 |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | 3,426 |
2018 Exit Plan [Member] | Non-Cash Impairment Charges [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | 5,875 |
2019 Exit Plan [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | 4,240 |
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | 54 |
2019 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | 2,169 |
2019 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | 191 |
2019 Exit Plan [Member] | Non-Cash Impairment Charges [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | 1,582 |
2019 Exit Plan [Member] | Other Non-Cash Charges [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | $ 244 |
Costs Associated with Exit or_5
Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability and Related Charges (Detail) - Americas [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
2018 Exit Plan [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at the beginning of the period | $ 657 | $ 0 | $ 2,586 | $ 0 |
Cash payments | (294) | (560) | (900) | (560) |
Balance sheet reclassifications | 216 | (1,338) | 216 | |
Balance at the end of the period | 351 | 3,305 | 351 | 3,305 |
2018 Exit Plan [Member] | Direct Salaries and Related Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | (3) | 402 | (3) | 402 |
2018 Exit Plan [Member] | General and Administrative [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | (9) | 3,247 | 6 | 3,247 |
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at the beginning of the period | 162 | 0 | 1,769 | 0 |
Cash payments | (33) | (429) | (298) | (429) |
Balance sheet reclassifications | 216 | (1,338) | 216 | |
Balance at the end of the period | 129 | 2,815 | 129 | 2,815 |
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | 3,028 | (4) | 3,028 | |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at the beginning of the period | 495 | 0 | 817 | 0 |
Cash payments | (261) | (131) | (602) | (131) |
Balance at the end of the period | 222 | 490 | 222 | 490 |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | (3) | 402 | (3) | 402 |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | (9) | $ 219 | 10 | $ 219 |
2019 Exit Plan [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at the beginning of the period | 1,040 | 0 | ||
Cash payments | (742) | (799) | ||
Balance at the end of the period | 1,615 | 1,615 | ||
2019 Exit Plan [Member] | Direct Salaries and Related Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | 184 | 191 | ||
2019 Exit Plan [Member] | General and Administrative [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | 1,133 | 2,223 | ||
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at the beginning of the period | 0 | 0 | ||
Balance at the end of the period | 54 | 54 | ||
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | 54 | 54 | ||
2019 Exit Plan [Member] | Severance and Related Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at the beginning of the period | 1,040 | 0 | ||
Cash payments | (742) | (799) | ||
Balance at the end of the period | 1,561 | 1,561 | ||
2019 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | 184 | 191 | ||
2019 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges (reversals) | $ 1,079 | $ 2,169 |
Costs Associated with Exit or_6
Costs Associated with Exit or Disposal Activities - Summary of Company's Short-term and Long-term Accrued Liability with Exit Plan (Detail) - Americas [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
2018 Exit Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve | $ 351 | $ 657 | $ 2,586 | $ 3,305 | $ 0 | $ 0 |
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve | 129 | 162 | 1,769 | 2,815 | 0 | 0 |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve | 222 | 495 | 817 | $ 490 | $ 0 | $ 0 |
2018 Exit Plan [Member] | Accounts Payable [Member] | Lease Obligations and Facility Exit Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Short-term accrued restructuring liability | 100 | |||||
2018 Exit Plan [Member] | Other Accrued Expenses and Current Liabilities [Member] | Lease Obligations and Facility Exit Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Short-term accrued restructuring liability | 74 | 952 | ||||
2018 Exit Plan [Member] | Other Accrued Expenses and Current Liabilities [Member] | Severance and Related Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Short-term accrued restructuring liability | 24 | |||||
2018 Exit Plan [Member] | Other Long-Term Liabilities [Member] | Lease Obligations and Facility Exit Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Long-term accrued restructuring liability | 55 | 717 | ||||
2018 Exit Plan [Member] | Accrued Employee Compensation and Benefits [Member] | Severance and Related Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Short-term accrued restructuring liability | 222 | 793 | ||||
2019 Exit Plan [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve | 1,615 | 1,040 | 0 | |||
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve | 54 | 0 | 0 | |||
2019 Exit Plan [Member] | Severance and Related Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve | 1,561 | $ 1,040 | $ 0 | |||
2019 Exit Plan [Member] | Accounts Payable [Member] | Lease Obligations and Facility Exit Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Short-term accrued restructuring liability | 54 | |||||
2019 Exit Plan [Member] | Other Accrued Expenses and Current Liabilities [Member] | Severance and Related Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Short-term accrued restructuring liability | 8 | |||||
2019 Exit Plan [Member] | Accrued Employee Compensation and Benefits [Member] | Severance and Related Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Short-term accrued restructuring liability | $ 1,553 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Derivative Assets | $ 3,265 | $ 1,078 |
Total assets | 17,144 | 12,520 |
Liabilities: | ||
Derivative Liabilities | 172 | 3,264 |
Total liabilities | 172 | 3,264 |
Foreign Currency Contracts [Member] | ||
Assets: | ||
Derivative Assets | 3,265 | 1,068 |
Foreign Currency Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member] | ||
Liabilities: | ||
Derivative Liabilities | 172 | 2,895 |
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 9,101 | 8,075 |
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 4,778 | 3,367 |
Embedded Derivatives [Member] | ||
Assets: | ||
Derivative Assets | 10 | |
Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member] | ||
Liabilities: | ||
Derivative Liabilities | 369 | |
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | ||
Assets: | ||
Total assets | 13,879 | 11,442 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Foreign Currency Contracts [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Foreign Currency Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member] | ||
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 9,101 | 8,075 |
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 4,778 | 3,367 |
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Embedded Derivatives [Member] | ||
Assets: | ||
Derivative Assets | 0 | |
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member] | ||
Liabilities: | ||
Derivative Liabilities | 0 | |
Significant Other Observable Inputs Level 2 [Member] | ||
Assets: | ||
Total assets | 3,265 | 1,068 |
Liabilities: | ||
Total liabilities | 172 | 2,895 |
Significant Other Observable Inputs Level 2 [Member] | Foreign Currency Contracts [Member] | ||
Assets: | ||
Derivative Assets | 3,265 | 1,068 |
Significant Other Observable Inputs Level 2 [Member] | Foreign Currency Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member] | ||
Liabilities: | ||
Derivative Liabilities | 172 | 2,895 |
Significant Other Observable Inputs Level 2 [Member] | Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 0 | 0 |
Significant Other Observable Inputs Level 2 [Member] | Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 0 | 0 |
Significant Other Observable Inputs Level 2 [Member] | Embedded Derivatives [Member] | ||
Assets: | ||
Derivative Assets | 0 | |
Significant Other Observable Inputs Level 2 [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member] | ||
Liabilities: | ||
Derivative Liabilities | 0 | |
Significant Unobservable Inputs Level 3 [Member] | ||
Assets: | ||
Total assets | 0 | 10 |
Liabilities: | ||
Total liabilities | 0 | 369 |
Significant Unobservable Inputs Level 3 [Member] | Foreign Currency Contracts [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Foreign Currency Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member] | ||
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | $ 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Embedded Derivatives [Member] | ||
Assets: | ||
Derivative Assets | 10 | |
Significant Unobservable Inputs Level 3 [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member] | ||
Liabilities: | ||
Derivative Liabilities | $ 369 |
Fair Value - Rollforward of Net
Fair Value - Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives (Detail) - Embedded Derivatives [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at the beginning of the period | $ (409) | $ (359) | $ (527) |
Settlements | 38 | 80 | |
Effect of foreign currency | 25 | 14 | |
Balance at the end of the period | (598) | (598) | |
Accounting Standards Update 2016-02 [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Derecognition of embedded derivatives | $ 359 | ||
Other Income (Expense), Net [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Gains (losses) recognized in "Other income (expense), net" | (252) | (165) | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | |||
Change in unrealized gains (losses) included in "Other income (expense), net" related to embedded derivatives held at the end of the period | $ (253) | $ (171) |
Fair Value - Summary of Total I
Fair Value - Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||
Impairment of long-lived assets | $ (129) | $ (5,175) | $ (1,711) | $ (8,701) |
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Americas [Member] | ||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||
Operating lease right-of-use assets | $ (129) | (1,368) | ||
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Property and Equipment [Member] | Americas [Member] | ||||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||||
Impairment of long-lived assets | $ (5,175) | $ (343) | $ (8,701) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 294,620 | $ 294,093 |
Accumulated Amortization | (129,111) | (120,062) |
Net Intangibles | $ 165,509 | $ 174,031 |
Weighted Average Amortization Period (years) | 5 years | 5 years |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 190,290 | $ 189,697 |
Accumulated Amortization | (114,031) | (106,502) |
Net Intangibles | $ 76,259 | $ 83,195 |
Weighted Average Amortization Period (years) | 10 years | 10 years |
Trade Name and Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 19,219 | $ 19,236 |
Accumulated Amortization | (11,750) | (10,594) |
Net Intangibles | $ 7,469 | $ 8,642 |
Weighted Average Amortization Period (years) | 8 years | 8 years |
Non-Compete Agreements [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 2,742 | $ 2,746 |
Accumulated Amortization | (2,022) | (1,724) |
Net Intangibles | $ 720 | $ 1,022 |
Weighted Average Amortization Period (years) | 3 years | 3 years |
Content Library [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 513 | $ 517 |
Accumulated Amortization | $ (513) | $ (517) |
Weighted Average Amortization Period (years) | 2 years | 2 years |
Proprietary Software [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 1,040 | $ 1,040 |
Accumulated Amortization | (795) | (725) |
Net Intangibles | $ 245 | $ 315 |
Weighted Average Amortization Period (years) | 4 years | 4 years |
Domain Names Not Subject To Amortization [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangibles | $ 80,816 | $ 80,857 |
Net Intangibles | $ 80,816 | $ 80,857 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2019 (remainder of the year) | $ 8,274 |
2020 | 14,011 |
2021 | 9,422 |
2022 | 8,121 |
2023 | 7,273 |
2024 | 7,027 |
2025 and thereafter | $ 30,565 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Beginning Balance, Goodwill Net | $ 302,517 | $ 269,265 |
Acquisition-Related | 1,078 | |
Acquisition-Related | 38,536 | |
Effect of Foreign Currency | 2,455 | (5,284) |
Ending Balance, Goodwill Net | 306,050 | 302,517 |
Americas [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance, Goodwill Net | 255,436 | 258,496 |
Acquisition-Related | 1,202 | |
Acquisition-Related | 2,175 | |
Effect of Foreign Currency | 2,554 | (5,235) |
Ending Balance, Goodwill Net | 259,192 | 255,436 |
EMEA [Member] | ||
Goodwill [Line Items] | ||
Beginning Balance, Goodwill Net | 47,081 | 10,769 |
Acquisition-Related | (124) | |
Acquisition-Related | 36,361 | |
Effect of Foreign Currency | (99) | (49) |
Ending Balance, Goodwill Net | $ 46,858 | $ 47,081 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Detail) | 6 Months Ended | ||
Jun. 30, 2019USD ($)Reporting_Unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Goodwill [Line Items] | |||
Number of reporting units | Reporting_Unit | 6 | ||
Number of reporting units, fair value in excess of carrying value | Reporting_Unit | 4 | ||
Goodwill | $ 306,050,000 | $ 302,517,000 | $ 269,265,000 |
Qelp [Member] | |||
Goodwill [Line Items] | |||
Goodwill Impairment Loss | 0 | ||
Goodwill | 10,100,000 | ||
Clearlink [Member] | |||
Goodwill [Line Items] | |||
Goodwill Impairment Loss | 0 | ||
Goodwill | 72,300,000 | ||
Symphony [Member] | |||
Goodwill [Line Items] | |||
Goodwill Impairment Loss | 0 | ||
Goodwill | $ 36,700,000 |
Financial Derivatives - Deferre
Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Deferred gains (losses) in AOCI | $ 2,733 | $ (1,825) |
Tax on deferred gains (losses) in AOCI | (97) | (39) |
Deferred gains (losses) in AOCI, net of taxes | 2,636 | $ (1,864) |
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months | $ 2,733 |
Financial Derivatives - Outstan
Financial Derivatives - Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Option Contracts [Member] | US Dollars/Philippine Pesos [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 41,250 | $ 26,250 |
Settle Through Date | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | US Dollars/Philippine Pesos [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 6,000 | $ 39,000 |
Settle Through Date | Sep. 30, 2019 | Sep. 30, 2019 |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | US Dollars/Costa Rican Colones [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 42,000 | $ 67,000 |
Settle Through Date | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Hungarian Forints [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,569 | |
Settle Through Date | Dec. 31, 2019 | |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Romanian Leis [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 8,427 | |
Settle Through Date | Dec. 31, 2019 | |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Forwards [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 20,031 | $ 19,261 |
Settle Through Date | Nov. 30, 2021 | Nov. 30, 2021 |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 14,069 | |
Settle Through Date | Apr. 30, 2030 |
Financial Derivatives - Additio
Financial Derivatives - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Maximum amount of loss due to credit risk | $ 3,300,000 | $ 1,100,000 |
Total net settlement amount asset positions | 3,300,000 | 1,100,000 |
Total net settlement amount liability positions | $ 200,000 | $ 2,900,000 |
Financial Derivatives - Derivat
Financial Derivatives - Derivative Instruments Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 3,265 | $ 1,078 |
Derivative Liabilities | 172 | 3,264 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 55 | 30 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Deferred Charges and Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 43 | |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 165 | 247 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 44 | |
Derivatives Not Designated as Hedging Instruments [Member] | Embedded Derivatives [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 10 | |
Derivatives Not Designated as Hedging Instruments [Member] | Embedded Derivatives [Member] | Other Accrued Expenses and Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 8 | |
Derivatives Not Designated as Hedging Instruments [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 361 | |
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 3,167 | 1,038 |
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 7 | $ 2,604 |
Financial Derivatives - Effect
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Revenues | $ 389,006 | $ 396,785 | $ 791,931 | $ 811,156 |
Gains (losses) recognized from derivatives | (432) | (345) | (465) | (1,427) |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in AOCI: | 3,586 | (305) | 4,769 | (3,001) |
Revenues [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Foreign Currency Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified from AOCI: | 631 | 193 | 130 | 436 |
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized from derivatives | $ (432) | (93) | $ (465) | (1,262) |
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized from derivatives | $ (252) | $ (165) |
Investments Held in Rabbi Tru_3
Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) - Mutual Funds [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Mutual funds, Cost | $ 9,744 | $ 8,864 |
Other Current Assets [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Mutual funds, Fair Value | $ 13,879 | $ 11,442 |
Investments Held in Rabbi Tru_4
Investments Held in Rabbi Trust - Additional Information (Detail) | Jun. 30, 2019 |
Equity-Based Securities [Member] | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Mutual funds held in rabbi trust | 66.00% |
Debt-Based Securities [Member] | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Mutual funds held in rabbi trust | 34.00% |
Investments Held in Rabbi Tru_5
Investments Held in Rabbi Trust - Components of Investment Income (Losses), Included in Other Income (Expense), Net in Accompanying Consolidated Statements of Operations (Detail) - Other Income (Expense), Net [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Net realized gains (losses) from sale of trading securities | $ 5 | $ 27 | $ 66 | $ 32 |
Dividend and interest income | 53 | 43 | 82 | 68 |
Net unrealized holding gains (losses) | 368 | 72 | 1,458 | 17 |
Net investment income (losses) | $ 426 | $ 142 | $ 1,606 | $ 117 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
Jan. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Feb. 14, 2019 | Dec. 31, 2018 | May 12, 2015 | |
Line of Credit Facility [Line Items] | ||||||
Outstanding borrowings | $ 92,000,000 | $ 102,000,000 | ||||
Debt issuance costs paid | 1,098,000 | |||||
Long-term debt repaid | $ 18,000,000 | $ 190,000,000 | ||||
Revolving Credit Facility [Member] | 2019 Credit Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 500,000,000 | |||||
Line of credit facility, expiration date | Feb. 14, 2024 | |||||
Outstanding borrowings | $ 92,000,000 | |||||
Credit agreement customary fees description | the Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company’s leverage ratio and due quarterly in arrears as calculated on the average unused amount of the 2019 Credit Agreement. | |||||
Debt issuance costs paid | $ 1,100,000 | |||||
Revolving Credit Facility [Member] | 2019 Credit Agreement [Member] | Non-Voting Capital Stock Direct Foreign Subsidiaries [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Percentage of capital stock pledged under credit agreement | 100.00% | |||||
Revolving Credit Facility [Member] | 2019 Credit Agreement [Member] | Voting Capital Stock Direct Foreign Subsidiaries [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Percentage of capital stock pledged under credit agreement | 65.00% | |||||
Revolving Credit Facility [Member] | 2015 Credit Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 440,000,000 | |||||
Outstanding borrowings | $ 102,000,000 | |||||
Debt issuance costs, net | 300,000 | |||||
Long-term debt repaid | $ 175,000,000 | |||||
Alternate-Currency Sub-Facility [Member] | 2019 Credit Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 200,000,000 | |||||
Swingline Sub-Facility [Member] | 2019 Credit Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 15,000,000 | |||||
Letter of Credit [Member] | 2019 Credit Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 15,000,000 |
Borrowings - Information Relate
Borrowings - Information Related to Credit Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Line Of Credit Facility [Abstract] | ||||
Average daily utilization | $ 89,593 | $ 100,110 | $ 92,779 | $ 110,691 |
Interest expense | $ 922 | $ 915 | $ 1,884 | $ 1,916 |
Weighted average interest rate | 4.10% | 3.70% | 4.10% | 3.50% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 826,609 | $ 796,479 |
Ending Balance | 840,529 | 826,609 |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (58,253) | (36,315) |
Pre-tax amount | 3,680 | (22,158) |
Foreign currency translation | 21 | 220 |
Ending Balance | (54,552) | (58,253) |
Unrealized Gain (Loss) on Net Investment Hedge [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 1,046 | 1,046 |
Ending Balance | 1,046 | 1,046 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1,864) | 2,471 |
Pre-tax amount | 4,769 | (4,287) |
Tax (provision) benefit | (101) | 84 |
Reclassification of (gain) loss to net income | (85) | 6 |
Foreign currency translation | (83) | (138) |
Ending Balance | 2,636 | (1,864) |
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 2,256 | 1,574 |
Pre-tax amount | 783 | |
Tax (provision) benefit | 6 | 47 |
Reclassification of (gain) loss to net income | (48) | (66) |
Foreign currency translation | 62 | (82) |
Ending Balance | 2,276 | 2,256 |
Unrealized Gain (Loss) on Postretirement Obligation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 40 | 120 |
Reclassification of (gain) loss to net income | (10) | (80) |
Ending Balance | 30 | 40 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (56,775) | (31,104) |
Pre-tax amount | 8,449 | (25,662) |
Tax (provision) benefit | (95) | 131 |
Reclassification of (gain) loss to net income | (143) | (140) |
Ending Balance | $ (48,564) | $ (56,775) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pre-tax amount | $ 13,735 | $ 4,949 | $ 30,104 | $ 18,353 |
Tax (provision) benefit | 2,466 | (2,229) | 7,148 | 227 |
Reclassification of gain (loss) to net income | 11,269 | 7,178 | 22,956 | 18,126 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification of gain (loss) to net income | 625 | 237 | 143 | 515 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Cash Flow Hedging Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax (provision) benefit | (35) | 17 | (45) | 24 |
Reclassification of gain (loss) to net income | 596 | 210 | 85 | 460 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Actuarial Gain (Loss) Related to Pension Liability [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax (provision) benefit | 3 | 3 | 6 | 6 |
Reclassification of gain (loss) to net income | 24 | 17 | 48 | 35 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Revenues [Member] | Gain (Loss) on Cash Flow Hedging Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pre-tax amount | 631 | 193 | 130 | 436 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Income (Expense), Net [Member] | Actuarial Gain (Loss) Related to Pension Liability [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pre-tax amount | 21 | 14 | 42 | 29 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Income (Expense), Net [Member] | Gain (Loss) on Postretirement Obligation [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification of gain (loss) to net income | $ 5 | $ 10 | $ 10 | $ 20 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Tax Rates (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 18.00% | (45.00%) | 23.70% | 1.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | |||||||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% | ||||
Decrease in benefit associated with settlement of tax audits and ancillary issues | $ 3.2 | $ 3.4 | |||||
Undistributed earnings of foreign subsidiaries | $ 531.8 | $ 531.8 | |||||
Canada Revenue Agency [Member] | |||||||
Income Tax [Line Items] | |||||||
Income tax benefit recognized on settlement of Canadian audit | $ (2.7) | $ (1.2) | |||||
US 2017 Tax Reform Act [Member] | |||||||
Income Tax [Line Items] | |||||||
Statutory federal income tax rate | 21.00% | ||||||
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act | 32.7 | $ (0.2) | 32.7 | ||||
US 2017 Tax Reform Act [Member] | One-Time Transition Tax on Mandatory Deemed Repatriation of Foreign Earnings [Member] | |||||||
Income Tax [Line Items] | |||||||
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act | 32.7 | 32.7 | |||||
US 2017 Tax Reform Act [Member] | Foreign Withholding Taxes on Certain Anticipated Distributions [Member] | |||||||
Income Tax [Line Items] | |||||||
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act | 1 | 1 | |||||
US 2017 Tax Reform Act [Member] | Remeasurement of Certain Deferred Tax Assets and Liabilities [Member] | |||||||
Income Tax [Line Items] | |||||||
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act | $ (1) | $ (1) |
Earnings Per Share - Numbers of
Earnings Per Share - Numbers of Shares Used in Earnings Per Share Computation (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic: | ||||
Weighted average common shares outstanding | 42,038 | 42,125 | 42,107 | 42,035 |
Diluted: | ||||
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust | 56 | 35 | 93 | 162 |
Total weighted average diluted shares outstanding | 42,094 | 42,160 | 42,200 | 42,197 |
Anti-dilutive shares excluded from the diluted earnings per share calculation | 207 | 31 | 164 | 6 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - 2011 Share Repurchase Program [Member] - shares | 3 Months Ended | 6 Months Ended | 94 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Mar. 16, 2016 | Aug. 18, 2011 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Maximum amount of shares authorized for repurchase | 10,000,000 | 5,000,000 | |||
Total Number of Shares Repurchased | 771,000 | 771,000 | 6,000,000 | ||
Increase in shares authorized for repurchase | 5,000,000 |
Earnings Per Share - Shares Rep
Earnings Per Share - Shares Repurchased (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 94 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | |
Schedule Of Shares Repurchased [Line Items] | |||
Total Cost of Shares Repurchased | $ 20,178 | $ 20,178 | |
Minimum [Member] | |||
Schedule Of Shares Repurchased [Line Items] | |||
Range of Prices Paid Per Share | $ 24.72 | $ 24.72 | |
Maximum [Member] | |||
Schedule Of Shares Repurchased [Line Items] | |||
Range of Prices Paid Per Share | $ 27.30 | $ 27.30 | |
2011 Share Repurchase Program [Member] | |||
Schedule Of Shares Repurchased [Line Items] | |||
Total Number of Shares Repurchased | 771 | 771 | 6,000 |
Commitments and Loss Continge_2
Commitments and Loss Contingency - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Minimum [Member] | |
Long-term Purchase Commitment [Line Items] | |
Term of agreements with third party vendors | 1 year |
Maximum [Member] | |
Long-term Purchase Commitment [Line Items] | |
Term of agreements with third party vendors | 5 years |
Loss Contingency, net of federal benefit | $ 1,400,000 |
Defined Benefit Pension Plan _3
Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost for Pension Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $ 100 | $ 109 | $ 198 | $ 223 |
Interest cost | 62 | 48 | 124 | 98 |
Recognized actuarial (gains) | (21) | (14) | (42) | (29) |
Net periodic benefit cost | $ 141 | $ 143 | $ 280 | $ 292 |
Defined Benefit Pension Plan _4
Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Percentage of employer's contribution based on participants contribution | 50.00% |
Maximum [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Percentage of employer's contribution based on participants compensation | 2.00% |
Defined Benefit Pension Plan _5
Defined Benefit Pension Plan and Postretirement Benefits - Company's Contributions to Employee Retirement Savings Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||||
401(k) plan contributions | $ 419 | $ 344 | $ 885 | $ 803 |
Defined Benefit Pension Plan _6
Defined Benefit Pension Plan and Postretirement Benefits - Post-Retirement Benefit Obligation and Unrealized Gain (Losses) (Detail) - Split-Dollar Life Insurance Arrangement [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Postretirement benefit obligation | $ 8 | $ 12 |
Unrealized gains (losses) in AOCI | $ 30 | $ 40 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company Both Plan and Non-Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation (expense) | $ (2,200) | $ (1,673) | $ (4,090) | $ (3,750) |
Income Taxes [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Income tax benefit | $ 528 | $ 402 | $ 982 | $ 900 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - 2011 Equity Incentive Plan [Member] | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Performance-Based Restricted Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted | shares | 338,732 |
Weighted average grant-date fair value | $ / shares | $ 28.43 |
Employment-Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted | shares | 169,367 |
Weighted average grant-date fair value | $ / shares | $ 28.43 |
Segments and Geographic Infor_3
Segments and Geographic Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019SegmentRegion | |
Segment Reporting [Abstract] | |
Number of operating regions | Region | 2 |
Number of reportable segments | Segment | 2 |
Segments and Geographic Infor_4
Segments and Geographic Information - Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 389,006 | $ 396,785 | $ 791,931 | $ 811,156 |
Percentage of revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Depreciation, net | $ 13,052 | $ 14,560 | $ 26,949 | $ 29,396 |
Amortization of intangibles | 4,127 | 3,629 | 8,413 | 7,842 |
Income (loss) from operations | 15,255 | 6,460 | 32,007 | 20,744 |
Total other income (expense), net | (1,520) | (1,511) | (1,903) | (2,391) |
Income taxes | (2,466) | 2,229 | (7,148) | (227) |
Net income | 11,269 | 7,178 | 22,956 | 18,126 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 310,307 | 327,041 | 635,084 | 667,762 |
Americas [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 310,307 | $ 327,041 | $ 635,084 | $ 667,762 |
Percentage of revenues | 79.80% | 82.40% | 80.20% | 82.30% |
Depreciation, net | $ 10,659 | $ 12,335 | $ 22,166 | $ 25,018 |
Amortization of intangibles | 3,288 | 3,415 | 6,726 | 7,407 |
Income (loss) from operations | 26,584 | 19,824 | 56,652 | 45,688 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 78,676 | 69,720 | 156,804 | 143,347 |
EMEA [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 78,676 | $ 69,720 | $ 156,804 | $ 143,347 |
Percentage of revenues | 20.20% | 17.60% | 19.80% | 17.70% |
Depreciation, net | $ 1,628 | $ 1,476 | $ 3,254 | $ 2,887 |
Amortization of intangibles | 839 | 214 | 1,687 | 435 |
Income (loss) from operations | 4,661 | 2,220 | 6,152 | 6,859 |
Other Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 23 | $ 24 | $ 43 | $ 47 |
Percentage of revenues | 0.00% | 0.00% | 0.00% | 0.00% |
Depreciation, net | $ 765 | $ 749 | $ 1,529 | $ 1,491 |
Income (loss) from operations | (15,990) | (15,584) | (30,797) | (31,803) |
Total other income (expense), net | (1,520) | (1,511) | (1,903) | (2,391) |
Income taxes | $ (2,466) | $ 2,229 | $ (7,148) | $ (227) |
Segments and Geographic Infor_5
Segments and Geographic Information - Operation by Geographic Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 389,006 | $ 396,785 | $ 791,931 | $ 811,156 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 310,307 | 327,041 | 635,084 | 667,762 |
Americas [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 310,307 | 327,041 | 635,084 | 667,762 |
Americas [Member] | Operating Segments [Member] | United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 144,736 | 165,648 | 306,768 | 337,094 |
Americas [Member] | Operating Segments [Member] | The Philippines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 58,793 | 56,571 | 114,871 | 116,657 |
Americas [Member] | Operating Segments [Member] | Costa Rica [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 31,579 | 30,973 | 62,296 | 63,048 |
Americas [Member] | Operating Segments [Member] | Canada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 24,506 | 24,828 | 50,070 | 52,017 |
Americas [Member] | Operating Segments [Member] | El Salvador [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 20,067 | 20,584 | 40,543 | 40,595 |
Americas [Member] | Operating Segments [Member] | China [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,905 | 8,149 | 17,808 | 17,497 |
Americas [Member] | Operating Segments [Member] | Australia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,328 | 7,700 | 14,957 | 15,402 |
Americas [Member] | Operating Segments [Member] | Mexico [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,075 | 5,632 | 13,632 | 11,950 |
Americas [Member] | Operating Segments [Member] | Colombia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,746 | 4,636 | 9,444 | 8,691 |
Americas [Member] | Operating Segments [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,572 | 2,320 | 4,695 | 4,811 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 78,676 | 69,720 | 156,804 | 143,347 |
EMEA [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 78,676 | 69,720 | 156,804 | 143,347 |
EMEA [Member] | Operating Segments [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 16,848 | 13,491 | 32,075 | 27,330 |
EMEA [Member] | Operating Segments [Member] | Germany [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 22,813 | 22,404 | 46,677 | 46,579 |
EMEA [Member] | Operating Segments [Member] | Sweden [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 13,401 | 13,674 | 27,041 | 27,804 |
EMEA [Member] | Operating Segments [Member] | United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 17,733 | 11,960 | 34,618 | 25,307 |
EMEA [Member] | Operating Segments [Member] | Romania [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,881 | 8,191 | 16,393 | 16,327 |
Other Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 23 | $ 24 | $ 43 | $ 47 |
Other Income (Expense) - Other
Other Income (Expense) - Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Nonoperating Income Expense [Abstract] | ||||
Foreign currency transaction gains (losses) | $ (361) | $ 641 | $ (537) | $ 2,089 |
Gains (losses) on derivative instruments not designated as hedges | (432) | (345) | (465) | (1,427) |
Other miscellaneous income (expense) | (166) | (975) | (527) | (1,161) |
Other income (expense) | (533) | (537) | 77 | (382) |
Other Income (Expense), Net [Member] | ||||
Other Nonoperating Income Expense [Abstract] | ||||
Net investment gains (losses) on investments held in rabbi trust | $ 426 | $ 142 | $ 1,606 | $ 117 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2008 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Other Related Party Transactions [Line Items] | |||||
Duration of lease | 20 years | ||||
John H. Sykes [Member] | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Payment to landlord under the lease terms | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 | |
Related party transaction, description | In January 2008, the Company entered into a lease for a customer engagement center located in Kingstree, South Carolina. The landlord, Kingstree Office One, LLC, is an entity controlled by John H. Sykes, the founder, former Chairman and former Chief Executive Officer of the Company and the father of Charles Sykes, President and Chief Executive Officer of the Company. The lease payments on the 20-year lease were negotiated at or below market rates, and the lease is cancellable at the option of the Company. | ||||
Equity Method Investee [Member] | XSell Technologies Inc [Member] | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Related party transaction, description | The Company contracted to receive services from XSell, an equity method investee, for $0.1 million during the three months ended June 30, 2018 (none in 2019), and less than $0.1 million and $0.1 million during the six months ended June 30, 2019 and 2018, respectively. These related party transactions occurred in the normal course of business on terms and conditions that are similar to those of transactions with unrelated parties and, therefore, were measured at the exchange amount. | ||||
Related party transaction with equity method investee | $ 0 | $ 100,000 | $ 100,000 | ||
Equity Method Investee [Member] | XSell Technologies Inc [Member] | Maximum [Member] | |||||
Schedule of Other Related Party Transactions [Line Items] | |||||
Related party transaction with equity method investee | $ 100,000 |