Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 15, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SYKE | |
Entity Registrant Name | Sykes Enterprises, Incorporated | |
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 | 56-1383460 | |
Entity Address, Address Line One | 400 North Ashley Drive | |
Entity Address, Address Line Two | 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 | 39,565,511 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | FL | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 116,348 | $ 127,246 |
Receivables, net of allowance of $4.4 million and $3.5 million, respectively | 396,357 | 390,147 |
Prepaid expenses | 19,652 | 20,868 |
Other current assets | 19,153 | 20,525 |
Total current assets | 551,510 | 558,786 |
Property and equipment, net | 119,661 | 125,990 |
Operating lease right-of-use assets | 164,075 | 205,112 |
Goodwill, net | 287,465 | 311,247 |
Intangibles, net | 146,496 | 158,420 |
Deferred charges and other assets | 56,923 | 55,945 |
Total assets | 1,326,130 | 1,415,500 |
Current liabilities: | ||
Accounts payable | 28,879 | 33,591 |
Accrued employee compensation and benefits | 130,011 | 109,591 |
Income taxes payable | 1,698 | 3,637 |
Deferred revenue and customer liabilities | 30,007 | 26,621 |
Operating lease liabilities | 54,718 | 50,863 |
Other accrued expenses and current liabilities | 34,714 | 29,330 |
Total current liabilities | 280,027 | 253,633 |
Long-term debt | 7,000 | 73,000 |
Long-term income tax liabilities | 20,564 | 22,286 |
Long-term operating lease liabilities | 130,430 | 166,810 |
Other long-term liabilities | 34,331 | 25,296 |
Total liabilities | 472,352 | 541,025 |
Commitments and loss contingencies (Note 12) | ||
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; 39,566 and 41,549 shares issued, respectively | 396 | 416 |
Additional paid-in capital | 295,907 | 288,935 |
Retained earnings | 613,625 | 634,668 |
Accumulated other comprehensive income (loss) | (53,377) | (47,001) |
Treasury stock at cost: 135 and 128 shares, respectively | (2,773) | (2,543) |
Total shareholders' equity | 853,778 | 874,475 |
Total liabilities and shareholders' equity | $ 1,326,130 | $ 1,415,500 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 4.4 | $ 3.5 |
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 | 39,566,000 | 41,549,000 |
Treasury stock, shares | 135,000 | 128,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 431,727 | $ 397,547 | $ 1,259,726 | $ 1,189,478 |
Operating expenses: | ||||
Direct salaries and related costs | 275,206 | 253,669 | 810,584 | 767,558 |
General and administrative | 107,053 | 102,620 | 312,964 | 311,582 |
Depreciation, net | 12,681 | 12,449 | 37,772 | 39,398 |
Amortization of intangibles | 3,366 | 4,103 | 11,578 | 12,516 |
Impairment of goodwill | 21,792 | 21,792 | ||
Impairment of long-lived assets | 13,729 | 15,529 | 1,711 | |
Total operating expenses | 433,827 | 372,841 | 1,210,219 | 1,132,765 |
Income (loss) from operations | (2,100) | 24,706 | 49,507 | 56,713 |
Other income (expense): | ||||
Interest income | 137 | 234 | 565 | 611 |
Interest (expense) | (355) | (1,091) | (1,635) | (3,448) |
Other income (expense), net | 1,903 | (55) | (1,093) | 22 |
Total other income (expense), net | 1,685 | (912) | (2,163) | (2,815) |
Income (loss) before income taxes | (415) | 23,794 | 47,344 | 53,898 |
Income taxes | 4,676 | 5,689 | 16,287 | 12,837 |
Net income (loss) | $ (5,091) | $ 18,105 | $ 31,057 | $ 41,061 |
Net income (loss) per common share: | ||||
Basic | $ (0.13) | $ 0.44 | $ 0.77 | $ 0.98 |
Diluted | $ (0.13) | $ 0.44 | $ 0.76 | $ 0.98 |
Weighted average common shares outstanding: | ||||
Basic | 39,994 | 41,190 | 40,482 | 41,808 |
Diluted | 39,994 | 41,307 | 40,613 | 41,908 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (5,091) | $ 18,105 | $ 31,057 | $ 41,061 |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation adjustments | 10,177 | (10,693) | (2,862) | (6,992) |
Unrealized gain (loss) on cash flow hedging instruments, net of taxes | (1,893) | (1,130) | (3,488) | 3,370 |
Unrealized actuarial gain (loss) related to pension liability, net of taxes | 41 | (46) | 40 | (26) |
Unrealized gain (loss) on postretirement obligation, net of taxes | (22) | (5) | (66) | (15) |
Other comprehensive income (loss), net of taxes | 8,303 | (11,874) | (6,376) | (3,663) |
Comprehensive income (loss) | $ 3,212 | $ 6,231 | $ 24,681 | $ 37,398 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
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 | |||||||
Cumulative effect of accounting change at Dec. 31, 2018 | $ 110 | $ 110 | ||||||
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 | |||||||
Cumulative effect of accounting change at Dec. 31, 2018 | $ 110 | $ 110 | ||||||
Repurchase of common stock | (30,281) | |||||||
Comprehensive income (loss) | 37,398 | |||||||
Ending Balance at Sep. 30, 2019 | 838,151 | $ 414 | 289,110 | 611,648 | (60,438) | (2,583) | ||
Ending Balance, shares at Sep. 30, 2019 | 41,434 | |||||||
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 | |||||||
Stock-based compensation expense | 1,504 | 1,504 | ||||||
Issuance of common stock under equity award plans, net of forfeitures | $ (1) | (95) | 96 | |||||
Issuance of common stock under equity award plans, net of forfeitures, Share | (16) | |||||||
Shares repurchased for tax withholding on equity awards | (10) | (10) | ||||||
Shares repurchased for tax withholding on equity awards, Share | (1) | |||||||
Repurchase of common stock | (10,103) | (10,103) | ||||||
Retirement of treasury stock | $ (6) | (1,168) | (16,248) | 17,422 | ||||
Retirement of treasury stock, shares | (640) | |||||||
Comprehensive income (loss) | 6,231 | 18,105 | (11,874) | |||||
Ending Balance at Sep. 30, 2019 | 838,151 | $ 414 | 289,110 | 611,648 | (60,438) | (2,583) | ||
Ending Balance, shares at Sep. 30, 2019 | 41,434 | |||||||
Beginning Balance at Dec. 31, 2019 | 874,475 | $ 416 | 288,935 | 634,668 | (47,001) | (2,543) | ||
Beginning Balance, shares at Dec. 31, 2019 | 41,549 | |||||||
Stock-based compensation expense | 1,860 | 1,860 | ||||||
Issuance of common stock under equity award plans, net of forfeitures | $ (2) | 69 | (67) | |||||
Issuance of common stock under equity award plans, net of forfeitures, Share | (146) | |||||||
Shares repurchased for tax withholding on equity awards | (1,009) | (1,009) | ||||||
Shares repurchased for tax withholding on equity awards, Share | (39) | |||||||
Repurchase of common stock | (22,909) | (22,909) | ||||||
Retirement of treasury stock | $ (9) | (26) | (22,874) | 22,909 | ||||
Retirement of treasury stock, shares | (860) | |||||||
Comprehensive income (loss) | (8,813) | 13,918 | (22,731) | |||||
Ending Balance at Mar. 31, 2020 | 843,604 | $ 405 | 289,829 | 625,712 | (69,732) | (2,610) | ||
Ending Balance, shares at Mar. 31, 2020 | 40,504 | |||||||
Beginning Balance at Dec. 31, 2019 | 874,475 | $ 416 | 288,935 | 634,668 | (47,001) | (2,543) | ||
Beginning Balance, shares at Dec. 31, 2019 | 41,549 | |||||||
Repurchase of common stock | (52,176) | |||||||
Comprehensive income (loss) | 24,681 | |||||||
Ending Balance at Sep. 30, 2020 | 853,778 | $ 396 | 295,907 | 613,625 | (53,377) | (2,773) | ||
Ending Balance, shares at Sep. 30, 2020 | 39,566 | |||||||
Beginning Balance at Mar. 31, 2020 | 843,604 | $ 405 | 289,829 | 625,712 | (69,732) | (2,610) | ||
Beginning Balance, shares at Mar. 31, 2020 | 40,504 | |||||||
Stock-based compensation expense | 2,042 | 2,042 | ||||||
Issuance of common stock under equity award plans, net of forfeitures | $ 1 | 82 | (83) | |||||
Issuance of common stock under equity award plans, net of forfeitures, Share | 57 | |||||||
Shares repurchased for tax withholding on equity awards | (124) | (124) | ||||||
Shares repurchased for tax withholding on equity awards, Share | (6) | |||||||
Repurchase of common stock | (13,019) | (13,019) | ||||||
Retirement of treasury stock | $ (5) | (15) | (12,999) | 13,019 | ||||
Retirement of treasury stock, shares | (500) | |||||||
Comprehensive income (loss) | 30,282 | 22,230 | 8,052 | |||||
Ending Balance at Jun. 30, 2020 | 862,785 | $ 401 | 291,814 | 634,943 | (61,680) | (2,693) | ||
Ending Balance, shares at Jun. 30, 2020 | 40,055 | |||||||
Stock-based compensation expense | 4,029 | 4,029 | ||||||
Issuance of common stock under equity award plans, net of forfeitures | 80 | (80) | ||||||
Issuance of common stock under equity award plans, net of forfeitures, Share | 11 | |||||||
Repurchase of common stock | (16,248) | (16,248) | ||||||
Retirement of treasury stock | $ (5) | (16) | (16,227) | 16,248 | ||||
Retirement of treasury stock, shares | (500) | |||||||
Comprehensive income (loss) | 3,212 | (5,091) | 8,303 | |||||
Ending Balance at Sep. 30, 2020 | $ 853,778 | $ 396 | $ 295,907 | $ 613,625 | $ (53,377) | $ (2,773) | ||
Ending Balance, shares at Sep. 30, 2020 | 39,566 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 31,057 | $ 41,061 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 38,360 | 39,574 |
Amortization of intangibles | 11,578 | 12,516 |
Amortization of deferred grants | (674) | (266) |
Impairment losses | 37,321 | 1,711 |
Unrealized foreign currency transaction (gains) losses, net | 1,933 | (2,391) |
Stock-based compensation expense | 7,931 | 5,594 |
Deferred income tax provision (benefit) | (4,108) | (1,703) |
Bad debt expense (reversals) | 1,225 | 344 |
Unrealized (gains) losses and premiums on financial instruments, net | 843 | (545) |
(Earnings) losses from equity method investees | 342 | 318 |
(Gain) on dilution of investment in equity method investees | (1,357) | |
Other | (41) | 301 |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables, net | (4,677) | (10,067) |
Prepaid expenses | 1,215 | (277) |
Other current assets | (465) | 23 |
Deferred charges and other assets | 1,162 | (3,413) |
Accounts payable | (5,323) | (2,704) |
Income taxes receivable / payable | (4,107) | (2,124) |
Accrued employee compensation and benefits | 18,200 | 15,985 |
Other accrued expenses and current liabilities | 1,574 | 3,055 |
Deferred revenue and customer liabilities | 578 | (1,848) |
Other long-term liabilities | 12,802 | 1,666 |
Operating lease assets and liabilities | (2,447) | 776 |
Net cash provided by operating activities | 142,922 | 97,586 |
Cash flows from investing activities: | ||
Capital expenditures | (35,694) | (24,491) |
Other | 645 | 306 |
Net cash (used for) investing activities | (35,049) | (24,185) |
Cash flows from financing activities: | ||
Payments of long-term debt | (94,000) | (37,000) |
Proceeds from issuance of long-term debt | 28,000 | 12,000 |
Cash paid for repurchase of common stock | (52,176) | (30,281) |
Shares repurchased for tax withholding on equity awards | (1,133) | (1,279) |
Cash paid for loan fees related to long-term debt | (1,098) | |
Net cash (used for) financing activities | (119,309) | (57,658) |
Effects of exchange rates on cash, cash equivalents and restricted cash | 293 | (1,407) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (11,143) | 14,336 |
Cash, cash equivalents and restricted cash – beginning | 129,185 | 130,231 |
Cash, cash equivalents and restricted cash – ending | 118,042 | 144,567 |
Supplemental disclosures of cash flow information: | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 47,584 | 43,387 |
Cash paid during period for interest | 1,252 | 2,798 |
Cash paid during period for income taxes | 25,030 | 18,185 |
Non-cash transactions: | ||
Net right-of-use assets arising from new or remeasured operating lease liabilities | 8,088 | 18,447 |
Capital expenditures incurred but not yet paid | 9,601 | 5,104 |
Unrealized gain (loss) on postretirement obligation, net of taxes | (66) | $ (15) |
Property and equipment acquired under grant agreement | $ 416 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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 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. 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 nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2020. 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, 2019 , as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020. 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 U.S. GAAP 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. Due to the novel coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. Other than where noted, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date and time of issuance of the condensed consolidated financial statements. These estimates may change, as new events occur, and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. On October 13, 2020, the Company experienced a cyber incident that affected specific systems. See Note 18, Subsequent Event, for further information. There were no other 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): September 30, 2020 December 31, 2019 September 30, 2019 December 31, 2018 Cash and cash equivalents $ 116,348 $ 127,246 $ 142,572 $ 128,697 Restricted cash included in "Other current assets" 340 568 563 149 Restricted cash included in "Deferred charges and other assets" 1,354 1,371 1,432 1,385 $ 118,042 $ 129,185 $ 144,567 $ 130,231 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Customer-acquisition advertising costs $ 9,705 $ 11,188 $ 29,713 $ 33,328 Investments in Equity Method Investees — In July 2017, the Company made a strategic investment of $10.0 million in XSell Technologies, Inc. (“XSell”) for 32.8% of XSell’s preferred stock. As a result of XSell’s equity issuance during the three months ended September 30, 2020, the Company’s investment was diluted to 26.5% of XSell’s preferred stock. The Company recognized a non-cash gain of $1.4 million on the dilution of its investment, which is included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020. New Accounting Standards Not Yet Adopted Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes 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. New Accounting Standards Recently Adopted 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 was permitted. The Company adopted ASU 2016-13 on January 1, 2020, using the modified retrospective transition method, which resulted in no cumulative-effect adjustment to be recognized to the opening balance of retained earnings. The prior period was not restated. The Company’s adoption of ASU 2016-13 did not have a material impact on its financial condition, results of operations or cash flows as the credit losses associated with the Company’s trade receivables have historically been insignificant. See the description of the Company’s “Allowance for Doubtful Accounts” accounting policy in the “Significant Accounting Policies” section below. 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, Topic 815, 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 was permitted. The Company’s adoption of ASU 2019-04 on January 1, 2020 did not have a material impact on its financial condition, results of operations, cash flows or disclosures. 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 2018-13”). These amendments These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning 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 was permitted. The Company’s adoption of ASU 2018-03 on January 1, 2020 did not have a material impact on its disclosures. 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’s adoption of ASU 2018-15 on January 1, 2020 on a prospective basis did not have a material impact on its financial condition, results of operations, cash flows or disclosures. Significant Accounting Policies With the exception of the change for the accounting of credit losses as a result of the adoption of ASU 2016-13, there have been no new or material changes to the significant accounting policies disclosed in Note 1, Overview and Summary of Significant Accounting Policies, in the “Notes to the Consolidated Financial Statements” section in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts on trade accounts receivables for estimated losses arising from the inability of its clients to make contractual payments, applying a probability of default method. The Company’s estimate is based on qualitative and quantitative analyses, applying credit risk measurement tools and methodologies using publicly available credit and capital market information, a review of the current status of the Company’s trade accounts receivable and its historical experience. It is reasonably possible that the Company’s estimate of the allowance for credit losses will increase if the financial condition of the Company’s clients were to deteriorate, resulting in a reduced ability to make payments. During the nine months ended September 30, 2020, the Company recorded a $1.2 million increase to the allowance for credit losses related to its short-term trade receivables primarily as a result of deterioration in certain clients’ credit ratings reflecting current and expected economic conditions, and wrote off $0.3 million of the allowance for credit losses related to certain short-term trade receivables deemed to be uncollectible. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | Note 2. Revenues Revenues from Contracts with Customers 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. Disaggregated Revenues The Company disaggregates its revenues from contracts with customers by service type and delivery location (see Note 15, 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 for the periods indicated (in thousands): Three Months Ended September 30, 2020 2019 Amount % of Revenue Amount % of Revenue Americas: Customer engagement solutions and services $ 348,763 80.8% $ 317,806 79.9% Other revenues 300 0.1% 291 0.1% Total Americas 349,063 80.9% 318,097 80.0% EMEA: Customer engagement solutions and services 77,809 18.0% 69,329 17.5% Other revenues 4,855 1.1% 10,098 2.5% Total EMEA 82,664 19.1% 79,427 20.0% Other: Other revenues — 0.0% 23 0.0% Total Other — 0.0% 23 0.0% $ 431,727 100.0% $ 397,547 100.0% The following table represents revenues from contracts with customers disaggregated by service type and by the reportable segment for each category for the periods indicated (in thousands): Nine Months Ended September 30, 2020 2019 Amount % of Revenue Amount % of Revenue Americas: Customer engagement solutions and services $ 1,020,340 81.0% $ 952,438 80.0% Other revenues 921 0.1% 743 0.1% Total Americas 1,021,261 81.1% 953,181 80.1% EMEA: Customer engagement solutions and services 223,727 17.8% 208,969 17.6% Other revenues 14,731 1.1% 27,262 2.3% Total EMEA 238,458 18.9% 236,231 19.9% Other: Other revenues 7 0.0% 66 0.0% Total Other 7 0.0% 66 0.0% $ 1,259,726 100.0% $ 1,189,478 100.0% Trade Accounts Receivable The Company’s noncurrent trade accounts receivable result from contracts with customers that include renewal provisions, and contracts with customers under multi-year arrangements. The Company’s trade accounts receivable, net, consisted of the following (in thousands): September 30, 2020 December 31, 2019 Trade accounts receivable, net, current (1) $ 380,080 $ 375,136 Trade accounts receivable, net, noncurrent (2) 26,069 26,496 $ 406,149 $ 401,632 (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. Deferred Revenue and Customer Liabilities Deferred revenue and customer liabilities consisted of the following (in thousands): September 30, 2020 December 31, 2019 Deferred revenue $ 3,317 $ 3,012 Customer arrangements with termination rights 18,130 15,024 Estimated refund liabilities 8,560 8,585 $ 30,007 $ 26,621 The Company expects to recognize the majority of its deferred revenue as of September 30, 2020 over the next 180 days. Revenues of $0.1 million and $0.2 million were recognized during the three months ended September 30, 2020 and 2019, respectively, and revenues of $3.0 million and $3.6 million were recognized during the nine months ended September 30, 2020 and 2019, respectively, from amounts included in deferred revenue at December 31, 2019 and 2018, respectively. 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. Estimated refund liabilities are generally resolved within 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 3. Leases Adoption of ASC 842, Leases On January 1, 2019, the Company adopted ASU 2016-02, Leases The adoption of ASC 842 on January 1, 2019 required the gross up of historical deferred rent which resulted 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 nine months ended September 30, 2019 was not material. The Company’s net cash provided by operating activities for the nine months ended September 30, 2019 did not change due to the adoption of ASC 842. Leases The Company 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 September 30, 2020. The Company has no finance leases. Lease costs, net of sublease income, of $15.9 million and $15.9 million for the three months ended September 30, 2020 and 2019, respectively, and $47.4 million and $48.0 million for the nine months ended September 30, 2020 and 2019, respectively, were primarily included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations. Additional supplemental information related to leases was as follows: September 30, 2020 December 31, 2019 Weighted average remaining lease term of operating leases 4.4 years 5.1 years Weighted average discount rate of operating leases 3.4 % 3.7 % Maturities of operating lease liabilities as of September 30, 2020 were as follows (in thousands): Amount 2020 (remainder of the year) $ 13,072 2021 59,421 2022 44,772 2023 30,085 2024 21,623 2025 and thereafter 31,702 Total future lease payments 200,675 Less: Imputed interest 15,527 Present value of future lease payments 185,148 Less: Operating lease liabilities 54,718 Long-term operating lease liabilities $ 130,430 Exit of Leased Space The Company is reevaluating its real estate footprint in connection with a transition of a portion of its workforce to a permanent remote working environment in both the Americas and EMEA. The Company decided to terminate, sublease or abandon leases prior to the end of their lease terms at certain of its sites during the nine months ended September 30, 2020 and recorded impairments of ROU assets as a result. See Note 5, Fair Value, for further information. |
Costs Associated with Exit or D
Costs Associated with Exit or Disposal Activities | 9 Months Ended |
Sep. 30, 2020 | |
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 included closing customer engagement centers, consolidating leased space in various locations in the U.S. and management reorganization. The Company finalized these actions as of September 30, 2019. During the second quarter of 2018, the Company initiated a restructuring plan to manage and optimize capacity utilization, which included closing customer engagement centers and consolidating leased space in various locations in the U.S. and Canada (the “Americas 2018 Exit Plan”). The Company finalized 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 resulted in general and administrative cost savings and lower depreciation expense. The cumulative costs incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 and 2019 Exit Plans are outlined below as of September 30, 2020 (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan Lease obligations and facility exit costs (1) $ 7,073 $ — Severance and related costs (2) 3,426 191 Severance and related costs (1) 1,037 2,153 Non-cash impairment charges 5,875 1,582 Other non-cash charges — 244 $ 17,411 $ 4,170 (1) Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations. (2) Included in “ Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations. The Company has paid a total of $12.8 million in cash through September 30, 2020, of which $10.5 million related to the Americas 2018 Exit Plan and $2.3 million related to the Americas 2019 Exit Plan. The Americas 2018 and 2019 Exit Plan activity during the three and nine months ended September 30, 2020 consisted of cash payments due under the respective plans. The following table summarizes the accrued liability and related activity for the three months ended September 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 $ 129 $ 222 $ 351 $ 54 $ 1,561 $ 1,615 Charges (reversals) included in "General and administrative" — 8 8 — (8 ) (8 ) Cash payments (33 ) (129 ) (162 ) — (649 ) (649 ) Balance at the end of the period $ 96 $ 101 $ 197 $ 54 $ 904 $ 958 The following table summarizes the accrued liability and related activity for the nine months ended September 3 0 , 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 ) 18 14 54 2,161 2,215 Cash payments (331 ) (731 ) (1,062 ) — (1,448 ) (1,448 ) Balance sheet reclassifications (1) (1,338 ) — (1,338 ) — — — Balance at the end of the period $ 96 $ 101 $ 197 $ 54 $ 904 $ 958 (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. 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 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Lease obligations and facility exit costs: Included in "Other accrued expenses and current liabilities" $ 51 $ 54 $ — $ — Included in "Other long-term liabilities" — 27 — — 51 81 — — Severance and related costs: Included in "Accrued employee compensation and benefits" — 6 — 479 Included in "Other accrued expenses and current liabilities" — — — 2 — 6 — 481 $ 51 $ 87 $ — $ 481 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2020 | |
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. 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 consisted 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 September 30, 2020 Level 1 Level 2 Level 3 Assets: Foreign currency contracts (1) $ 1,345 $ — $ 1,345 $ — Equity investments held in rabbi trust for the Deferred Compensation Plan (2) 9,716 9,716 — — Debt investments held in rabbi trust for the Deferred Compensation Plan (2) 5,372 5,372 — — $ 16,433 $ 15,088 $ 1,345 $ — Liabilities: Foreign currency contracts (1) $ 2,195 $ — $ 2,195 $ — $ 2,195 $ — $ 2,195 $ — Fair Value Measurements Using: Balance at Quoted Prices in Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 Level 1 Level 2 Level 3 Assets: Foreign currency contracts (1) $ 3,607 $ — $ 3,607 $ — Equity investments held in rabbi trust for the Deferred Compensation Plan (2) 9,125 9,125 — — Debt investments held in rabbi trust for the Deferred Compensation Plan (2) 4,802 4,802 — — $ 17,534 $ 13,927 $ 3,607 $ — Liabilities: Foreign currency contracts (1) $ 251 $ — $ 251 $ — $ 251 $ — $ 251 $ — (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. Non-Recurring Fair Value Certain assets are not required to be measured at fair value on a recurring basis and are reported at their carrying values, including goodwill, other intangible assets, other long-lived assets, ROU assets and equity method investments. The carrying value of these assets is evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable (and at least annually for goodwill and indefinite-lived intangible assets), and if applicable, written down to fair value. The following table summarizes the total impairment losses in the accompanying Condensed Consolidated Statements of Operations related to nonrecurring fair value measurements of certain assets (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas: Property and equipment, net $ 5,225 $ — $ 5,985 $ 343 Operating lease right-of-use assets 7,538 — 8,578 1,368 12,763 — 14,563 1,711 EMEA: Goodwill (1) 21,792 — 21,792 — Property and equipment, net 346 — 346 — Operating lease right-of-use assets 620 — 620 — 22,758 — 22,758 — $ 35,521 $ — $ 37,321 $ 1,711 (1) See Note 6, Goodwill and Intangible Assets, for additional information. The Company is reevaluating its real estate footprint in connection with a shift of a portion of its workforce to a permanent remote working environment in both the Americas and EMEA and transitioned approximately 2,800 seats from brick and mortar to at home agents equipment reduced the carrying amount of the applicable assets to their fair value of $ 0.6 million , which was estimated using Level 2 inputs such as appraisals , market prices of comparable assets , or independent third party offers. In connection with the closure of certain under-utilized customer engagement centers and the consolidation of leased space in the U.S. and Canada, the Company recorded impairment charges during the nine months ended September 30, 2019 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 or Disposal Activities, for further information. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 (in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Intangible assets subject to amortization: Customer relationships $ 190,280 $ (130,307 ) $ 59,973 10 Trade names and trademarks 19,285 (14,512 ) 4,773 8 Non-compete agreements 957 (601 ) 356 3 Content library 529 (529 ) — 2 Proprietary software 870 (800 ) 70 5 211,921 (146,749 ) 65,172 10 Intangible assets not subject to amortization: Domain names 81,324 — 81,324 N/A $ 293,245 $ (146,749 ) $ 146,496 The following table presents the Company’s purchased intangible assets as of December 31, 2019 (in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Intangible assets subject to amortization: Customer relationships $ 191,171 $ (121,074 ) $ 70,097 10 Trade names and trademarks 19,380 (12,929 ) 6,451 8 Non-compete agreements 2,769 (2,181 ) 588 3 Content library 506 (506 ) — 2 Proprietary software 870 (695 ) 175 5 214,696 (137,385 ) 77,311 10 Intangible assets not subject to amortization: Domain names 81,109 — 81,109 N/A $ 295,805 $ (137,385 ) $ 158,420 The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to September 30, 2020 is as follows (in thousands): Amount 2020 (remainder of the year) $ 2,475 2021 9,469 2022 8,161 2023 7,308 2024 7,062 2025 6,937 2026 and thereafter 23,760 Goodwill Changes in goodwill for the nine months ended September 30, 2020 consisted of the following (in thousands): January Acquisition- Related Impairment (1) Effect of Foreign Currency September 30, 2020 Americas $ 259,953 $ — $ — $ (1,392 ) $ 258,561 EMEA 51,294 — (21,792 ) (598 ) 28,904 $ 311,247 $ — $ (21,792 ) $ (1,990 ) $ 287,465 (1) Reflects the impairment of the Symphony reporting unit’s goodwill. Changes in goodwill for the year ended December 31, 2019 consisted of the following (in thousands): January Acquisition- Related (2) Impairment Effect of Foreign Currency December 31, 2019 Americas $ 255,436 $ 1,202 $ — $ 3,315 $ 259,953 EMEA 47,081 2,421 — 1,792 51,294 $ 302,517 $ 3,623 $ — $ 5,107 $ 311,247 (2) Reflects the impact of adjustments to acquired goodwill upon finalization of working capital adjustments and the tax analysis of WhistleOut’s and Symphony’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, 2020. 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 projected long-term growth rate and determination of the Company’s weighted average cost of capital (“WACC”), which are classified as Level 3 inputs. 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, 2020, the Company had eight reporting units, seven of which have goodwill. The Company concluded that goodwill was not impaired for six of its seven of its reporting units with goodwill, . The fair values of in excess of their carrying value. As part of this analysis, the Company considered the ongoing deterioration in general economic and market conditions due to the pandemic and its impact on each of the Company’s reporting units’ performance. T he fair value exceeded their respective carrying values, although the fair value cushion was not substantial prior year was primarily attributable to a decrease in its WACC driven by a decrease in the risk - free rate . The increase in the cushion from the prior year for the Qelp reporting unit was primarily attributable to an increase in growth and profitability expectations using the market valuation approach . The de crease in the cushion from the prior year for the Latin America reporting unit was primarily attributable to an increase in its WACC driven by an increase in the country risk premium, market risk premium and country default spread . The Clearlink , Latin America and Qelp reporting units are at risk of future impairment if projected operating results are not met or other inputs into the fair value measurement model change . The Symphony reporting unit’s carrying value exceeded its fair value as of the July 31, 2020 annual impairment analysis, which resulted in a non-cash goodwill impairment of $21.8 million. Symphony’s on-site consulting model has been negatively impacted by travel and shelter-in-place restrictions imposed by governments, as well as the shift by businesses to work from home in an attempt to reduce the spread of COVID-19. These restrictions continued longer than initially anticipated and have resulted in further declines in the cash flow projections at Symphony for the remainder of 2020 as well as the Company’s projections for 2021. There is significant uncertainty regarding the length of time these restrictions will remain in place. An additional impairment charge may arise in the future if Symphony’s operations experience a protracted delay in the resumption of its operations or a significant shift in client demand results from the economic downturn. As of September 30, 2020, the Company believes there was no impairment related to Symphony’s remaining $18.7 million of goodwill. As of September 30, 2020, the Company believes there were no indicators of impairment related to Clearlink’s $74.2 million of goodwill, Latin America’s $18.3 million of goodwill and Qelp’s $10.2 million of goodwill. It is possible that future changes in circumstances, including a more prolonged and/or severe pandemic, or future changes in the variable associated with the judgments, assumptions and estimates used in assessing the fair value of the reporting units, would require the Company to record additional non-cash impairment charges. |
Financial Derivatives
Financial Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
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): September 30, 2020 December 31, 2019 Deferred gains (losses) in AOCI $ (1,156 ) $ 2,221 Tax on deferred gains (losses) in AOCI (42 ) 69 Deferred gains (losses) in AOCI, net of taxes $ (1,198 ) $ 2,290 Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months $ (1,121 ) 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. The Company had the following outstanding foreign currency forward contracts and options (in thousands): September 30, 2020 December 31, 2019 Contract Type Notional Amount in USD Settle Through Date Notional Amount in USD Settle Through Date Cash flow hedges: Options: US Dollars/Philippine Pesos $ 18,000 December 2020 $ 74,000 December 2020 Forwards: US Dollars/Costa Rican Colones 51,000 December 2021 42,000 December 2020 Euros/Hungarian Forints 914 December 2020 — — Euros/Romanian Leis 4,019 December 2020 — — Non-designated hedges: Forwards 18,472 November 2021 19,295 November 2021 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 $1.3 million and $3.6 million as of September 30, 2020 and December 31, 2019, 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 $1.2 million and $3.4 million as of September 30, 2020 and December 31, 2019, respectively, as of September 30, 2020 and December 31, 2019, 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 September 30, 2020 December 31, 2019 Derivatives designated as cash flow hedging instruments: Foreign currency contracts Other current assets $ 1,147 $ 3,051 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets 139 322 Foreign currency contracts Deferred charges and other assets 59 234 Total derivative assets $ 1,345 $ 3,607 Derivative Liabilities Balance Sheet Location September 30, 2020 December 31, 2019 Derivatives designated as cash flow hedging instruments: Foreign currency contracts Other accrued expenses and current liabilities $ 2,104 $ 138 Foreign currency contracts Other long-term liabilities 32 — 2,136 138 Derivatives not designated as hedging instruments: Foreign currency contracts Other accrued expenses and current liabilities 59 113 Total derivative liabilities $ 2,195 $ 251 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 September 30, Nine Months Ended September 30, (Losses) in Net Income 2020 2019 2020 2019 Revenues $ 431,727 $ 397,547 $ 1,259,726 $ 1,189,478 Derivatives designated as cash flow hedging instruments: Gains (losses) recognized in AOCI: Foreign currency contracts (1,084 ) (36 ) (216 ) 4,733 Gains (losses) reclassified from AOCI: Foreign currency contracts Revenues 818 1,134 3,182 1,264 Derivatives not designated as hedging instruments: Gains (losses) recognized from foreign currency contracts Other income (expense), net $ (115 ) $ (363 ) $ (525 ) $ (828 ) |
Investments Held in Rabbi Trust
Investments Held in Rabbi Trust | 9 Months Ended |
Sep. 30, 2020 | |
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): September 30, 2020 December 31, 2019 Cost Fair Value Cost Fair Value Mutual funds $ 10,169 $ 15,088 $ 9,777 $ 13,927 The mutual funds held in rabbi trust were 64% equity-based and 36% debt-based as of September 30, 2020. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net realized gains (losses) from sale of trading securities $ 42 $ 62 $ 104 $ 128 Dividend and interest income 35 35 116 117 Net unrealized holding gains (losses) 764 (56 ) 380 1,402 $ 841 $ 41 $ 600 $ 1,647 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 9. 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, 2019 $ (58,253 ) $ 1,046 $ (1,864 ) $ 2,256 $ 40 $ (56,775 ) Pre-tax amount 5,462 — 6,978 108 — 12,548 Tax (provision) benefit — — 20 (23 ) — (3 ) Reclassification of (gain) loss to net income — — (2,719 ) (100 ) 48 (2,771 ) Foreign currency translation 42 — (125 ) 83 — — Balance at December 31, 2019 (52,749 ) 1,046 2,290 2,324 88 (47,001 ) Pre-tax amount (2,727 ) — (216 ) — — (2,943 ) Tax (provision) benefit — — (238 ) 12 — (226 ) Reclassification of (gain) loss to net income — — (3,058 ) (83 ) (66 ) (3,207 ) Foreign currency translation (135 ) — 24 111 — — Balance at September 30, 2020 $ (55,611 ) $ 1,046 $ (1,198 ) $ 2,364 $ 22 $ (53,377 ) 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 September 30, Nine Months Ended September 30, Statements Operations 2020 2019 2020 2019 Location Gain (loss) on cash flow hedging instruments: (1) Pre-tax amount $ 818 $ 1,134 $ 3,182 $ 1,264 Revenues Tax (provision) benefit (54 ) (33 ) (124 ) (78 ) Income taxes Reclassification to net income 764 1,101 3,058 1,186 Actuarial gain (loss) related to pension liability: (2) Pre-tax amount 25 21 71 63 Other Tax (provision) benefit 5 3 12 9 Income taxes Reclassification to net income 30 24 83 72 Gain (loss) on postretirement obligation: (2)(3) Reclassification to net income 22 5 66 15 Other $ 816 $ 1,130 $ 3,207 $ 1,273 (1) See Note 7, Financial Derivatives, for further information. (2) See Note 13, Defined Benefit Pension Plan and Postretirement Benefits, for further information. (3) No related tax (provision) benefit. As discussed in Note 10, Income Taxes, for periods prior to December 31, 2017, any remaining reinvested earnings and 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 | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The Company’s effective tax rates were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Effective tax rate -1,126.7 % 23.9 % 34.4 % 23.8 % The decrease in the effective tax rate for the three months ended September 30, 2020 as compared to 2019 was primarily due to the non-deductible goodwill impairment during the three months ended September 30, 2020. The decrease 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 tax impact of permanent differences, state income and foreign withholding taxes, partially offset by the recognition of net tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions and tax credits. The increase in the effective tax rate for the nine months ended September 30, 2020 as compared to 2019 was primarily due to the aforementioned non-deductible goodwill impairment, partially offset 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 tax impact of permanent differences, state income and foreign withholding taxes, partially offset by the recognition of net tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions and tax credits. Prior to December 31, 2017, no additional income taxes have been provided for any reinvested earnings and 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 is currently under audit in several tax jurisdictions. The Company believes it has adequate reserves related to all matters pertaining to these audits. Should the Company experience unfavorable outcomes from these audits, such outcomes could have a significant impact on its financial condition, results of operations and cash flows. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic: Weighted average common shares outstanding 39,994 41,190 40,482 41,808 Diluted: Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust — 117 131 100 Total weighted average diluted shares outstanding 39,994 41,307 40,613 41,908 Anti-dilutive shares excluded from the diluted earnings per share calculation 441 52 8 174 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 8.3 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 were as follows (in thousands, except per share amounts): Total Number of Total Cost of Shares Range of Prices Paid Per Share Shares Repurchased Low High Repurchased Three Months Ended: September 30, 2020 500 $ 31.49 $ 33.21 $ 16,248 September 30, 2019 369 $ 26.81 $ 28.00 $ 10,103 Nine Months Ended: September 30, 2020 1,860 $ 23.33 $ 33.21 $ 52,176 September 30, 2019 1,140 $ 24.72 $ 28.00 $ 30,281 |
Commitments and Loss Contingenc
Commitments and Loss Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Loss Contingencies | Note 12. Commitments and Loss Contingencies 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 Loss Contingencies 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 $2.0 million, net of federal benefit, as of September 30, 2020. 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 | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Benefit Pension Plan and Postretirement Benefits | Note 13. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Service cost $ 118 $ 98 $ 331 $ 296 Interest cost 56 62 159 186 Recognized actuarial (gains) (25 ) (21 ) (71 ) (63 ) $ 149 $ 139 $ 419 $ 419 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 nine months ended September 30, 3020 and 2019. 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 nine months ended September 3 0 , 20 20 and 201 9 . Employee Retirement Savings Plans The Company maintains a 401(k) plan covering defined employees who meet established eligibility requirements, which were last modified on September 30, 2019, effective for contributions made beginning January 1, 2020. Under the current plan provisions, the Company matches 100% of the first 3% and 50% of the next 2% of participant contributions to a maximum matching amount of 4% of participant compensation for most of the Company’s employees. Additionally, participants whose salaries are above a certain threshold are eligible for a Company match of 50% of the first 4% for those participants’ 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 401(k) plan contributions $ 719 $ 410 $ 2,210 $ 1,295 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 14. Stock-Based Compensation 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock-based compensation (expense) (1) $ (4,029 ) $ (1,504 ) $ (7,931 ) $ (5,594 ) Income tax benefit (2) 967 361 1,903 1,343 (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 nine months ended September 30, 2020, the Company granted 0.4 million performance-based restricted shares/restricted stock units and 0.2 million service-based restricted shares/restricted stock units under the Company’s 2019 Plan, all at a weighted average grant-date fair value of $25.60 per share. |
Segments and Geographic Informa
Segments and Geographic Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | Note 15. 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 September 30, 2020: Revenues $ 349,063 $ 82,664 $ — $ 431,727 Percentage of revenues 80.9 % 19.1 % 0.0 % 100.0 % Depreciation, net $ 9,943 $ 2,006 $ 732 $ 12,681 Amortization of intangibles $ 2,522 $ 844 $ — $ 3,366 Income (loss) from operations $ 32,558 $ (14,311 ) $ (20,347 ) $ (2,100 ) Total other income (expense), net 1,685 1,685 Income taxes (4,676 ) (4,676 ) Net income (loss) $ (5,091 ) Three Months Ended September 30, 2019: Revenues $ 318,097 $ 79,427 $ 23 $ 397,547 Percentage of revenues 80.0 % 20.0 % 0.0 % 100.0 % Depreciation, net $ 10,086 $ 1,611 $ 752 $ 12,449 Amortization of intangibles $ 3,289 $ 814 $ — $ 4,103 Income (loss) from operations $ 34,516 $ 5,688 $ (15,498 ) $ 24,706 Total other income (expense), net (912 ) (912 ) Income taxes (5,689 ) (5,689 ) Net income $ 18,105 Nine Months Ended September 30, 2020: Revenues $ 1,021,261 $ 238,458 $ 7 $ 1,259,726 Percentage of revenues 81.1 % 18.9 % 0.0 % 100.0 % Depreciation, net $ 30,064 $ 5,529 $ 2,179 $ 37,772 Amortization of intangibles $ 9,089 $ 2,489 $ — $ 11,578 Income (loss) from operations $ 108,816 $ (7,053 ) $ (52,256 ) $ 49,507 Total other income (expense), net (2,163 ) (2,163 ) Income taxes (16,287 ) (16,287 ) Net income $ 31,057 Nine Months Ended September 30, 2019: Revenues $ 953,181 $ 236,231 $ 66 $ 1,189,478 Percentage of revenues 80.1 % 19.9 % 0.0 % 100.0 % Depreciation, net $ 32,252 $ 4,865 $ 2,281 $ 39,398 Amortization of intangibles $ 10,015 $ 2,501 $ — $ 12,516 Income (loss) from operations $ 91,168 $ 11,840 $ (46,295 ) $ 56,713 Total other income (expense), net (2,815 ) (2,815 ) Income taxes (12,837 ) (12,837 ) Net income $ 41,061 (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 delivery location and by the reportable segment (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas: United States $ 160,158 $ 144,698 $ 482,595 $ 451,466 The Philippines 69,382 65,560 196,388 180,431 Costa Rica 38,716 31,228 112,847 93,524 Canada 26,469 24,815 74,665 74,885 El Salvador 18,079 20,904 53,701 61,447 Other 36,259 30,892 101,065 91,428 Total Americas 349,063 318,097 1,021,261 953,181 EMEA: Germany 25,573 23,471 74,340 70,148 Other 57,091 55,956 164,118 166,083 Total EMEA 82,664 79,427 238,458 236,231 Total Other — 23 7 66 $ 431,727 $ 397,547 $ 1,259,726 $ 1,189,478 |
Other Income (Expense)
Other Income (Expense) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Other Income (Expense) | Note 16. Other Income (Expense) Other income (expense), net consists of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Foreign currency transaction gains (losses) $ (323 ) $ 430 $ (1,881 ) $ (107 ) Gains (losses) on derivative instruments not designated as hedges (115 ) (363 ) (525 ) (828 ) Net investment gains (losses) on investments held in rabbi trust 841 41 600 1,647 Other miscellaneous income (expense) 1,500 (163 ) 713 (690 ) $ 1,903 $ (55 ) $ (1,093 ) $ 22 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17. 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 a lease termination penalty of $0.1 million during the three months ended September 30, 2020 and will vacate the space as of March 31, 2021. In addition to the termination penalty, the Company paid $0.1 million to the landlord during both the three months ended September 30, 2020 and 2019, and $0.4 million during both the nine months ended September 30, 2020 and 2019, under the terms of the lease. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 18. Subsequent Event On October 13, 2020, the Company experienced a cyber incident affecting some of the Company’s systems (the “October 2020 Cyber Incident”). The Company believes it has identified the specific systems that were impacted and that it has generally restored operations with no material day-to-day impact to its ability to provide normal service to its clients. The Company’s investigation of the incident is ongoing with assistance from third-party experts. The Company has notified law enforcement officials and will cooperate in any criminal investigation of this matter. The Company maintains a cyber and privacy insurance policy and expects to recover business interruption and other losses related to the incident, subject to the Company’s deductible, which is not material. |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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 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. |
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 nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2020. 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, 2019 , as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020. |
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 U.S. GAAP 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. Due to the novel coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. Other than where noted, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date and time of issuance of the condensed consolidated financial statements. These estimates may change, as new events occur, and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. |
Subsequent Events | Subsequent Events — Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. On October 13, 2020, the Company experienced a cyber incident that affected specific systems. See Note 18, Subsequent Event, for further information. There were no other 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): September 30, 2020 December 31, 2019 September 30, 2019 December 31, 2018 Cash and cash equivalents $ 116,348 $ 127,246 $ 142,572 $ 128,697 Restricted cash included in "Other current assets" 340 568 563 149 Restricted cash included in "Deferred charges and other assets" 1,354 1,371 1,432 1,385 $ 118,042 $ 129,185 $ 144,567 $ 130,231 |
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Customer-acquisition advertising costs $ 9,705 $ 11,188 $ 29,713 $ 33,328 |
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 Technologies, Inc. (“XSell”) for 32.8% of XSell’s preferred stock. As a result of XSell’s equity issuance during the three months ended September 30, 2020, the Company’s investment was diluted to 26.5% of XSell’s preferred stock. The Company recognized a non-cash gain of $1.4 million on the dilution of its investment, which is included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020. |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes 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. |
New Accounting Standards Recently Adopted | New Accounting Standards Recently Adopted 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 was permitted. The Company adopted ASU 2016-13 on January 1, 2020, using the modified retrospective transition method, which resulted in no cumulative-effect adjustment to be recognized to the opening balance of retained earnings. The prior period was not restated. The Company’s adoption of ASU 2016-13 did not have a material impact on its financial condition, results of operations or cash flows as the credit losses associated with the Company’s trade receivables have historically been insignificant. See the description of the Company’s “Allowance for Doubtful Accounts” accounting policy in the “Significant Accounting Policies” section below. 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, Topic 815, 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 was permitted. The Company’s adoption of ASU 2019-04 on January 1, 2020 did not have a material impact on its financial condition, results of operations, cash flows or disclosures. 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 2018-13”). These amendments These amendments are effective for fiscal years, and interim periods within those fiscal years, beginning 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 was permitted. The Company’s adoption of ASU 2018-03 on January 1, 2020 did not have a material impact on its disclosures. 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’s adoption of ASU 2018-15 on January 1, 2020 on a prospective basis did not have a material impact on its financial condition, results of operations, cash flows or disclosures. Significant Accounting Policies With the exception of the change for the accounting of credit losses as a result of the adoption of ASU 2016-13, there have been no new or material changes to the significant accounting policies disclosed in Note 1, Overview and Summary of Significant Accounting Policies, in the “Notes to the Consolidated Financial Statements” section in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts on trade accounts receivables for estimated losses arising from the inability of its clients to make contractual payments, applying a probability of default method. The Company’s estimate is based on qualitative and quantitative analyses, applying credit risk measurement tools and methodologies using publicly available credit and capital market information, a review of the current status of the Company’s trade accounts receivable and its historical experience. It is reasonably possible that the Company’s estimate of the allowance for credit losses will increase if the financial condition of the Company’s clients were to deteriorate, resulting in a reduced ability to make payments. During the nine months ended September 30, 2020, the Company recorded a $1.2 million increase to the allowance for credit losses related to its short-term trade receivables primarily as a result of deterioration in certain clients’ credit ratings reflecting current and expected economic conditions, and wrote off $0.3 million of the allowance for credit losses related to certain short-term trade receivables deemed to be uncollectible. |
Revenue from Contracts with Customers | Revenues from Contracts with Customers 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. The Company expects to recognize the majority of its deferred revenue as of September 30, 2020 over the next 180 days. Revenues of $0.1 million and $0.2 million were recognized during the three months ended September 30, 2020 and 2019, respectively, and revenues of $3.0 million and $3.6 million were recognized during the nine months ended September 30, 2020 and 2019, respectively, from amounts included in deferred revenue at December 31, 2019 and 2018, respectively. 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. Estimated refund liabilities are generally resolved within 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency. |
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. 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) | 9 Months Ended |
Sep. 30, 2020 | |
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): September 30, 2020 December 31, 2019 September 30, 2019 December 31, 2018 Cash and cash equivalents $ 116,348 $ 127,246 $ 142,572 $ 128,697 Restricted cash included in "Other current assets" 340 568 563 149 Restricted cash included in "Deferred charges and other assets" 1,354 1,371 1,432 1,385 $ 118,042 $ 129,185 $ 144,567 $ 130,231 |
Schedule of 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Customer-acquisition advertising costs $ 9,705 $ 11,188 $ 29,713 $ 33,328 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 for the periods indicated (in thousands): Three Months Ended September 30, 2020 2019 Amount % of Revenue Amount % of Revenue Americas: Customer engagement solutions and services $ 348,763 80.8% $ 317,806 79.9% Other revenues 300 0.1% 291 0.1% Total Americas 349,063 80.9% 318,097 80.0% EMEA: Customer engagement solutions and services 77,809 18.0% 69,329 17.5% Other revenues 4,855 1.1% 10,098 2.5% Total EMEA 82,664 19.1% 79,427 20.0% Other: Other revenues — 0.0% 23 0.0% Total Other — 0.0% 23 0.0% $ 431,727 100.0% $ 397,547 100.0% The following table represents revenues from contracts with customers disaggregated by service type and by the reportable segment for each category for the periods indicated (in thousands): Nine Months Ended September 30, 2020 2019 Amount % of Revenue Amount % of Revenue Americas: Customer engagement solutions and services $ 1,020,340 81.0% $ 952,438 80.0% Other revenues 921 0.1% 743 0.1% Total Americas 1,021,261 81.1% 953,181 80.1% EMEA: Customer engagement solutions and services 223,727 17.8% 208,969 17.6% Other revenues 14,731 1.1% 27,262 2.3% Total EMEA 238,458 18.9% 236,231 19.9% Other: Other revenues 7 0.0% 66 0.0% Total Other 7 0.0% 66 0.0% $ 1,259,726 100.0% $ 1,189,478 100.0% |
Receivables, Net | The Company’s noncurrent trade accounts receivable result from contracts with customers that include renewal provisions, and contracts with customers under multi-year arrangements. The Company’s trade accounts receivable, net, consisted of the following (in thousands): September 30, 2020 December 31, 2019 Trade accounts receivable, net, current (1) $ 380,080 $ 375,136 Trade accounts receivable, net, noncurrent (2) 26,069 26,496 $ 406,149 $ 401,632 (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 consisted of the following (in thousands): September 30, 2020 December 31, 2019 Deferred revenue $ 3,317 $ 3,012 Customer arrangements with termination rights 18,130 15,024 Estimated refund liabilities 8,560 8,585 $ 30,007 $ 26,621 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease | Additional supplemental information related to leases was as follows: September 30, 2020 December 31, 2019 Weighted average remaining lease term of operating leases 4.4 years 5.1 years Weighted average discount rate of operating leases 3.4 % 3.7 % |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of September 30, 2020 were as follows (in thousands): Amount 2020 (remainder of the year) $ 13,072 2021 59,421 2022 44,772 2023 30,085 2024 21,623 2025 and thereafter 31,702 Total future lease payments 200,675 Less: Imputed interest 15,527 Present value of future lease payments 185,148 Less: Operating lease liabilities 54,718 Long-term operating lease liabilities $ 130,430 |
Costs Associated with Exit or_2
Costs Associated with Exit or Disposal Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Cumulative Total Costs Expected and Incurred to Date Related to Cash and Non-Cash Expenditures Resulting from Exit Plan | The cumulative costs incurred to date related to cash and non-cash expenditures resulting from the Americas 2018 and 2019 Exit Plans are outlined below as of September 30, 2020 (in thousands): Americas 2018 Exit Plan Americas 2019 Exit Plan Lease obligations and facility exit costs (1) $ 7,073 $ — Severance and related costs (2) 3,426 191 Severance and related costs (1) 1,037 2,153 Non-cash impairment charges 5,875 1,582 Other non-cash charges — 244 $ 17,411 $ 4,170 (1) Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations. (2) Included in “ Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations. |
Summary of Accrued Liability and Related Activity | The following table summarizes the accrued liability and related activity for the three months ended September 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 $ 129 $ 222 $ 351 $ 54 $ 1,561 $ 1,615 Charges (reversals) included in "General and administrative" — 8 8 — (8 ) (8 ) Cash payments (33 ) (129 ) (162 ) — (649 ) (649 ) Balance at the end of the period $ 96 $ 101 $ 197 $ 54 $ 904 $ 958 The following table summarizes the accrued liability and related activity for the nine months ended September 3 0 , 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 ) 18 14 54 2,161 2,215 Cash payments (331 ) (731 ) (1,062 ) — (1,448 ) (1,448 ) Balance sheet reclassifications (1) (1,338 ) — (1,338 ) — — — Balance at the end of the period $ 96 $ 101 $ 197 $ 54 $ 904 $ 958 (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. |
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 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Lease obligations and facility exit costs: Included in "Other accrued expenses and current liabilities" $ 51 $ 54 $ — $ — Included in "Other long-term liabilities" — 27 — — 51 81 — — Severance and related costs: Included in "Accrued employee compensation and benefits" — 6 — 479 Included in "Other accrued expenses and current liabilities" — — — 2 — 6 — 481 $ 51 $ 87 $ — $ 481 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 consisted 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 September 30, 2020 Level 1 Level 2 Level 3 Assets: Foreign currency contracts (1) $ 1,345 $ — $ 1,345 $ — Equity investments held in rabbi trust for the Deferred Compensation Plan (2) 9,716 9,716 — — Debt investments held in rabbi trust for the Deferred Compensation Plan (2) 5,372 5,372 — — $ 16,433 $ 15,088 $ 1,345 $ — Liabilities: Foreign currency contracts (1) $ 2,195 $ — $ 2,195 $ — $ 2,195 $ — $ 2,195 $ — Fair Value Measurements Using: Balance at Quoted Prices in Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 Level 1 Level 2 Level 3 Assets: Foreign currency contracts (1) $ 3,607 $ — $ 3,607 $ — Equity investments held in rabbi trust for the Deferred Compensation Plan (2) 9,125 9,125 — — Debt investments held in rabbi trust for the Deferred Compensation Plan (2) 4,802 4,802 — — $ 17,534 $ 13,927 $ 3,607 $ — Liabilities: Foreign currency contracts (1) $ 251 $ — $ 251 $ — $ 251 $ — $ 251 $ — (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. |
Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets | The following table summarizes the total impairment losses in the accompanying Condensed Consolidated Statements of Operations related to nonrecurring fair value measurements of certain assets (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas: Property and equipment, net $ 5,225 $ — $ 5,985 $ 343 Operating lease right-of-use assets 7,538 — 8,578 1,368 12,763 — 14,563 1,711 EMEA: Goodwill (1) 21,792 — 21,792 — Property and equipment, net 346 — 346 — Operating lease right-of-use assets 620 — 620 — 22,758 — 22,758 — $ 35,521 $ — $ 37,321 $ 1,711 (1) See Note 6, Goodwill and Intangible Assets, for additional information. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Company's Purchased Intangible Assets | The following table presents the Company’s purchased intangible assets as of September 30, 2020 (in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Intangible assets subject to amortization: Customer relationships $ 190,280 $ (130,307 ) $ 59,973 10 Trade names and trademarks 19,285 (14,512 ) 4,773 8 Non-compete agreements 957 (601 ) 356 3 Content library 529 (529 ) — 2 Proprietary software 870 (800 ) 70 5 211,921 (146,749 ) 65,172 10 Intangible assets not subject to amortization: Domain names 81,324 — 81,324 N/A $ 293,245 $ (146,749 ) $ 146,496 The following table presents the Company’s purchased intangible assets as of December 31, 2019 (in thousands): Gross Intangibles Accumulated Amortization Net Intangibles Weighted Average Amortization Period (years) Intangible assets subject to amortization: Customer relationships $ 191,171 $ (121,074 ) $ 70,097 10 Trade names and trademarks 19,380 (12,929 ) 6,451 8 Non-compete agreements 2,769 (2,181 ) 588 3 Content library 506 (506 ) — 2 Proprietary software 870 (695 ) 175 5 214,696 (137,385 ) 77,311 10 Intangible assets not subject to amortization: Domain names 81,109 — 81,109 N/A $ 295,805 $ (137,385 ) $ 158,420 |
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 September 30, 2020 is as follows (in thousands): Amount 2020 (remainder of the year) $ 2,475 2021 9,469 2022 8,161 2023 7,308 2024 7,062 2025 6,937 2026 and thereafter 23,760 |
Changes in Goodwill | Changes in goodwill for the nine months ended September 30, 2020 consisted of the following (in thousands): January Acquisition- Related Impairment (1) Effect of Foreign Currency September 30, 2020 Americas $ 259,953 $ — $ — $ (1,392 ) $ 258,561 EMEA 51,294 — (21,792 ) (598 ) 28,904 $ 311,247 $ — $ (21,792 ) $ (1,990 ) $ 287,465 (1) Reflects the impairment of the Symphony reporting unit’s goodwill. Changes in goodwill for the year ended December 31, 2019 consisted of the following (in thousands): January Acquisition- Related (2) Impairment Effect of Foreign Currency December 31, 2019 Americas $ 255,436 $ 1,202 $ — $ 3,315 $ 259,953 EMEA 47,081 2,421 — 1,792 51,294 $ 302,517 $ 3,623 $ — $ 5,107 $ 311,247 (2) Reflects the impact of adjustments to acquired goodwill upon finalization of working capital adjustments and the tax analysis of WhistleOut’s and Symphony’s assets acquired and liabilities assumed. |
Financial Derivatives (Tables)
Financial Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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): September 30, 2020 December 31, 2019 Deferred gains (losses) in AOCI $ (1,156 ) $ 2,221 Tax on deferred gains (losses) in AOCI (42 ) 69 Deferred gains (losses) in AOCI, net of taxes $ (1,198 ) $ 2,290 Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months $ (1,121 ) |
Outstanding Foreign Currency Forward Contracts and Options | The Company had the following outstanding foreign currency forward contracts and options (in thousands): September 30, 2020 December 31, 2019 Contract Type Notional Amount in USD Settle Through Date Notional Amount in USD Settle Through Date Cash flow hedges: Options: US Dollars/Philippine Pesos $ 18,000 December 2020 $ 74,000 December 2020 Forwards: US Dollars/Costa Rican Colones 51,000 December 2021 42,000 December 2020 Euros/Hungarian Forints 914 December 2020 — — Euros/Romanian Leis 4,019 December 2020 — — Non-designated hedges: Forwards 18,472 November 2021 19,295 November 2021 |
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 September 30, 2020 December 31, 2019 Derivatives designated as cash flow hedging instruments: Foreign currency contracts Other current assets $ 1,147 $ 3,051 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets 139 322 Foreign currency contracts Deferred charges and other assets 59 234 Total derivative assets $ 1,345 $ 3,607 Derivative Liabilities Balance Sheet Location September 30, 2020 December 31, 2019 Derivatives designated as cash flow hedging instruments: Foreign currency contracts Other accrued expenses and current liabilities $ 2,104 $ 138 Foreign currency contracts Other long-term liabilities 32 — 2,136 138 Derivatives not designated as hedging instruments: Foreign currency contracts Other accrued expenses and current liabilities 59 113 Total derivative liabilities $ 2,195 $ 251 |
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 September 30, Nine Months Ended September 30, (Losses) in Net Income 2020 2019 2020 2019 Revenues $ 431,727 $ 397,547 $ 1,259,726 $ 1,189,478 Derivatives designated as cash flow hedging instruments: Gains (losses) recognized in AOCI: Foreign currency contracts (1,084 ) (36 ) (216 ) 4,733 Gains (losses) reclassified from AOCI: Foreign currency contracts Revenues 818 1,134 3,182 1,264 Derivatives not designated as hedging instruments: Gains (losses) recognized from foreign currency contracts Other income (expense), net $ (115 ) $ (363 ) $ (525 ) $ (828 ) |
Investments Held in Rabbi Tru_2
Investments Held in Rabbi Trust (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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): September 30, 2020 December 31, 2019 Cost Fair Value Cost Fair Value Mutual funds $ 10,169 $ 15,088 $ 9,777 $ 13,927 |
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 64% equity-based and 36% debt-based as of September 30, 2020. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net realized gains (losses) from sale of trading securities $ 42 $ 62 $ 104 $ 128 Dividend and interest income 35 35 116 117 Net unrealized holding gains (losses) 764 (56 ) 380 1,402 $ 841 $ 41 $ 600 $ 1,647 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 $ (58,253 ) $ 1,046 $ (1,864 ) $ 2,256 $ 40 $ (56,775 ) Pre-tax amount 5,462 — 6,978 108 — 12,548 Tax (provision) benefit — — 20 (23 ) — (3 ) Reclassification of (gain) loss to net income — — (2,719 ) (100 ) 48 (2,771 ) Foreign currency translation 42 — (125 ) 83 — — Balance at December 31, 2019 (52,749 ) 1,046 2,290 2,324 88 (47,001 ) Pre-tax amount (2,727 ) — (216 ) — — (2,943 ) Tax (provision) benefit — — (238 ) 12 — (226 ) Reclassification of (gain) loss to net income — — (3,058 ) (83 ) (66 ) (3,207 ) Foreign currency translation (135 ) — 24 111 — — Balance at September 30, 2020 $ (55,611 ) $ 1,046 $ (1,198 ) $ 2,364 $ 22 $ (53,377 ) |
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 September 30, Nine Months Ended September 30, Statements Operations 2020 2019 2020 2019 Location Gain (loss) on cash flow hedging instruments: (1) Pre-tax amount $ 818 $ 1,134 $ 3,182 $ 1,264 Revenues Tax (provision) benefit (54 ) (33 ) (124 ) (78 ) Income taxes Reclassification to net income 764 1,101 3,058 1,186 Actuarial gain (loss) related to pension liability: (2) Pre-tax amount 25 21 71 63 Other Tax (provision) benefit 5 3 12 9 Income taxes Reclassification to net income 30 24 83 72 Gain (loss) on postretirement obligation: (2)(3) Reclassification to net income 22 5 66 15 Other $ 816 $ 1,130 $ 3,207 $ 1,273 (1) See Note 7, Financial Derivatives, for further information. (2) See Note 13, Defined Benefit Pension Plan and Postretirement Benefits, for further information. (3) No related tax (provision) benefit. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Tax Rates | The Company’s effective tax rates were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Effective tax rate -1,126.7 % 23.9 % 34.4 % 23.8 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic: Weighted average common shares outstanding 39,994 41,190 40,482 41,808 Diluted: Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust — 117 131 100 Total weighted average diluted shares outstanding 39,994 41,307 40,613 41,908 Anti-dilutive shares excluded from the diluted earnings per share calculation 441 52 8 174 |
Shares Repurchased | The shares repurchased under the Company’s 2011 Share Repurchase Program were as follows (in thousands, except per share amounts): Total Number of Total Cost of Shares Range of Prices Paid Per Share Shares Repurchased Low High Repurchased Three Months Ended: September 30, 2020 500 $ 31.49 $ 33.21 $ 16,248 September 30, 2019 369 $ 26.81 $ 28.00 $ 10,103 Nine Months Ended: September 30, 2020 1,860 $ 23.33 $ 33.21 $ 52,176 September 30, 2019 1,140 $ 24.72 $ 28.00 $ 30,281 |
Defined Benefit Pension Plan _2
Defined Benefit Pension Plan and Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Service cost $ 118 $ 98 $ 331 $ 296 Interest cost 56 62 159 186 Recognized actuarial (gains) (25 ) (21 ) (71 ) (63 ) $ 149 $ 139 $ 419 $ 419 |
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 401(k) plan contributions $ 719 $ 410 $ 2,210 $ 1,295 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock-based compensation (expense) (1) $ (4,029 ) $ (1,504 ) $ (7,931 ) $ (5,594 ) Income tax benefit (2) 967 361 1,903 1,343 (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) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020: Revenues $ 349,063 $ 82,664 $ — $ 431,727 Percentage of revenues 80.9 % 19.1 % 0.0 % 100.0 % Depreciation, net $ 9,943 $ 2,006 $ 732 $ 12,681 Amortization of intangibles $ 2,522 $ 844 $ — $ 3,366 Income (loss) from operations $ 32,558 $ (14,311 ) $ (20,347 ) $ (2,100 ) Total other income (expense), net 1,685 1,685 Income taxes (4,676 ) (4,676 ) Net income (loss) $ (5,091 ) Three Months Ended September 30, 2019: Revenues $ 318,097 $ 79,427 $ 23 $ 397,547 Percentage of revenues 80.0 % 20.0 % 0.0 % 100.0 % Depreciation, net $ 10,086 $ 1,611 $ 752 $ 12,449 Amortization of intangibles $ 3,289 $ 814 $ — $ 4,103 Income (loss) from operations $ 34,516 $ 5,688 $ (15,498 ) $ 24,706 Total other income (expense), net (912 ) (912 ) Income taxes (5,689 ) (5,689 ) Net income $ 18,105 Nine Months Ended September 30, 2020: Revenues $ 1,021,261 $ 238,458 $ 7 $ 1,259,726 Percentage of revenues 81.1 % 18.9 % 0.0 % 100.0 % Depreciation, net $ 30,064 $ 5,529 $ 2,179 $ 37,772 Amortization of intangibles $ 9,089 $ 2,489 $ — $ 11,578 Income (loss) from operations $ 108,816 $ (7,053 ) $ (52,256 ) $ 49,507 Total other income (expense), net (2,163 ) (2,163 ) Income taxes (16,287 ) (16,287 ) Net income $ 31,057 Nine Months Ended September 30, 2019: Revenues $ 953,181 $ 236,231 $ 66 $ 1,189,478 Percentage of revenues 80.1 % 19.9 % 0.0 % 100.0 % Depreciation, net $ 32,252 $ 4,865 $ 2,281 $ 39,398 Amortization of intangibles $ 10,015 $ 2,501 $ — $ 12,516 Income (loss) from operations $ 91,168 $ 11,840 $ (46,295 ) $ 56,713 Total other income (expense), net (2,815 ) (2,815 ) Income taxes (12,837 ) (12,837 ) Net income $ 41,061 (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 Delivery Location | The following table represents a disaggregation of revenue from contracts with customers by delivery location and by the reportable segment (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas: United States $ 160,158 $ 144,698 $ 482,595 $ 451,466 The Philippines 69,382 65,560 196,388 180,431 Costa Rica 38,716 31,228 112,847 93,524 Canada 26,469 24,815 74,665 74,885 El Salvador 18,079 20,904 53,701 61,447 Other 36,259 30,892 101,065 91,428 Total Americas 349,063 318,097 1,021,261 953,181 EMEA: Germany 25,573 23,471 74,340 70,148 Other 57,091 55,956 164,118 166,083 Total EMEA 82,664 79,427 238,458 236,231 Total Other — 23 7 66 $ 431,727 $ 397,547 $ 1,259,726 $ 1,189,478 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net consists of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Foreign currency transaction gains (losses) $ (323 ) $ 430 $ (1,881 ) $ (107 ) Gains (losses) on derivative instruments not designated as hedges (115 ) (363 ) (525 ) (828 ) Net investment gains (losses) on investments held in rabbi trust 841 41 600 1,647 Other miscellaneous income (expense) 1,500 (163 ) 713 (690 ) $ 1,903 $ (55 ) $ (1,093 ) $ 22 |
Overview and Basis of Present_4
Overview and Basis of Presentation - Additional Information (Detail) $ in Thousands | Jan. 01, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($)Segment | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2017USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of reportable segments | Segment | 2 | |||||
Gain on dilution of equity method investment | $ 1,357 | |||||
Accounts Receivable, Credit Loss Expense (Reversal) | 1,225 | $ 344 | ||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ 300 | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Cumulative effect of accounting change | $ 110 | |||||
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Cumulative effect of accounting change | $ 110 | |||||
Accounting Standards Update 2016-13 [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
ASU adoption status | true | |||||
ASU adoption approach | syke:AccountingStandardsUpdate201613ModifiedRetrospectiveMember | |||||
Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Cumulative effect of accounting change | $ 0 | |||||
Accounting Standards Update 2019-04 [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
ASU adoption status | true | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
ASU adoption date | Jan. 1, 2020 | |||||
Accounting Standards Update 2018-13 [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
ASU adoption status | true | true | ||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||||
ASU adoption date | Jan. 1, 2020 | Jan. 1, 2020 | ||||
Accounting Standards Update 2018-15 [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
ASU adoption status | true | true | ||||
ASU adoption approach | us-gaap:AccountingStandardsUpdate201815ProspectiveMember | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||||
ASU adoption date | Jan. 1, 2020 | Jan. 1, 2020 | ||||
X Sell Technologies Inc [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Equity method investment | $ 10,000 | |||||
Equity method investment, ownership percentage | 26.50% | 26.50% | 32.80% | |||
Gain on dilution of equity method investment | $ 1,400 | $ 1,400 |
Overview and Basis of Present_5
Overview and Basis of Presentation - Summary of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 116,348 | $ 127,246 | $ 142,572 | $ 128,697 |
Cash and Cash Equivalents and Restricted Cash | 118,042 | 129,185 | 144,567 | 130,231 |
Other Current Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash included in "Other current assets" | 340 | 568 | 563 | 149 |
Deferred Charges and Other Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash included in "Deferred charges and other assets" | $ 1,354 | $ 1,371 | $ 1,432 | $ 1,385 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Advertising Cost, Expense Method [Fixed List] | Expensed as incurred | Expensed as incurred | Expensed as incurred | Expensed as incurred |
Direct Salaries and Related Costs [Member] | ||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Customer-acquisition advertising costs | $ 9,705 | $ 11,188 | $ 29,713 | $ 33,328 |
Revenues - Revenues from Contra
Revenues - Revenues from Contracts with Customers Disaggregated by Service Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 431,727 | $ 397,547 | $ 1,259,726 | $ 1,189,478 |
% of Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Americas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 349,063 | $ 318,097 | $ 1,021,261 | $ 953,181 |
% of Revenues | 80.90% | 80.00% | 81.10% | 80.10% |
Americas [Member] | Customer Engagement Solutions and Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 348,763 | $ 317,806 | $ 1,020,340 | $ 952,438 |
% of Revenues | 80.80% | 79.90% | 81.00% | 80.00% |
Americas [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 300 | $ 291 | $ 921 | $ 743 |
% of Revenues | 0.10% | 0.10% | 0.10% | 0.10% |
EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 82,664 | $ 79,427 | $ 238,458 | $ 236,231 |
% of Revenues | 19.10% | 20.00% | 18.90% | 19.90% |
EMEA [Member] | Customer Engagement Solutions and Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 77,809 | $ 69,329 | $ 223,727 | $ 208,969 |
% of Revenues | 18.00% | 17.50% | 17.80% | 17.60% |
EMEA [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 4,855 | $ 10,098 | $ 14,731 | $ 27,262 |
% of Revenues | 1.10% | 2.50% | 1.10% | 2.30% |
Other Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 23 | $ 7 | $ 66 | |
% of Revenues | 0.00% | 0.00% | 0.00% | 0.00% |
Other Segment [Member] | Other Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 23 | $ 7 | $ 66 | |
% of Revenues | 0.00% | 0.00% | 0.00% | 0.00% |
Revenues - Summary of Trade Acc
Revenues - Summary of Trade Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable, net | $ 406,149 | $ 401,632 |
Receivables, Net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable, net, current | 380,080 | 375,136 |
Deferred Charges and Other Assets [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable, net, noncurrent | $ 26,069 | $ 26,496 |
Revenues - Components of Deferr
Revenues - Components of Deferred Revenue and Customer Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Deferred Revenue and Customer Liabilities [Line Items] | ||
Deferred revenue and customer liabilities | $ 30,007 | $ 26,621 |
Deferred Revenue and Customer Liabilities [Member] | ||
Schedule of Deferred Revenue and Customer Liabilities [Line Items] | ||
Deferred revenue | 3,317 | 3,012 |
Customer arrangements with termination rights | 18,130 | 15,024 |
Estimated refund liabilities | $ 8,560 | $ 8,585 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | ||||
Deferred revenue recognized in the period | $ 0.1 | $ 0.2 | $ 3 | $ 3.6 |
Revenue remaining performance obligation expected timing of satisfaction explanation | The Company expects to recognize the majority of its deferred revenue as of September 30, 2020 over the next 180 days. | |||
Estimated refund liabilities timing of resolution explanation | Estimated refund liabilities are generally resolved within 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency. |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | |||||||
Operating lease right-of-use assets | $ 164,075,000 | $ 164,075,000 | $ 205,112,000 | ||||
Operating lease, liability | 185,148,000 | 185,148,000 | |||||
Finance lease | 0 | 0 | |||||
General and Administrative [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Lease costs, net | $ 15,900,000 | $ 15,900,000 | $ 47,400,000 | $ 48,000,000 | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Cumulative effect of accounting change | $ 110,000 | ||||||
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Cumulative effect of accounting change | 110,000 | ||||||
Accounting Standards Update 2016-02 [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
ASU adoption status | true | true | |||||
ASU adoption date | Jan. 1, 2019 | Jan. 1, 2019 | |||||
ASU adoption approach | us-gaap:AccountingStandardsUpdate201602CumulativeEffectPeriodOfAdoptionMember | ||||||
Operating lease right-of-use assets | $ 225,300,000 | ||||||
Operating lease, liability | 239,300,000 | ||||||
Derecognition of straight line lease liabilities net | $ 14,100,000 | ||||||
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Lessee Lease Description [Line Items] | |||||||
Cumulative effect of accounting change | $ 100,000 |
Leases - Schedule of Additional
Leases - Schedule of Additional Supplemental Information Related to Leases (Detail) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term of operating leases | 4 years 4 months 24 days | 5 years 1 month 6 days |
Weighted average discount rate of operating leases | 3.40% | 3.70% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2020 (remainder of the year) | $ 13,072 | |
2021 | 59,421 | |
2022 | 44,772 | |
2023 | 30,085 | |
2024 | 21,623 | |
2025 and thereafter | 31,702 | |
Total future lease payments | 200,675 | |
Less: Imputed interest | 15,527 | |
Present value of future lease payments | 185,148 | |
Less: Operating lease liabilities | 54,718 | $ 50,863 |
Long-term operating lease liabilities | $ 130,430 | $ 166,810 |
Costs Associated with Exit or_3
Costs Associated with Exit or Disposal Activities - Additional Information (Detail) - Americas [Member] $ in Millions | Sep. 30, 2020USD ($) | Dec. 31, 2018Seat |
Restructuring Cost And Reserve [Line Items] | ||
Total cash payment related to restructuring | $ 12.8 | |
2018 Exit Plan [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Reduction in number of seats | Seat | 5,000 | |
Total cash payment related to restructuring | 10.5 | |
2019 Exit Plan [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Total cash payment related to restructuring | $ 2.3 |
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 | Sep. 30, 2020USD ($) |
2018 Exit Plan [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Cumulative Costs Expected and Incurred to Date | $ 17,411 |
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 | 1,037 |
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 | 4,170 |
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 | 2,153 |
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 Activity (Detail) - Americas [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
2018 Exit Plan [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at the beginning of the period | $ 351 | $ 2,586 |
Cash payments | (162) | (1,062) |
Balance at the end of the period | 197 | 197 |
Balance sheet reclassifications | (1,338) | |
2018 Exit Plan [Member] | General and Administrative [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges (reversals) | 8 | 14 |
2018 Exit Plan [Member] | Direct Salaries and Related Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges (reversals) | (3) | |
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at the beginning of the period | 129 | 1,769 |
Cash payments | (33) | (331) |
Balance at the end of the period | 96 | 96 |
Balance sheet reclassifications | (1,338) | |
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | General and Administrative [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges (reversals) | (4) | |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at the beginning of the period | 222 | 817 |
Cash payments | (129) | (731) |
Balance at the end of the period | 101 | 101 |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges (reversals) | 8 | 18 |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges (reversals) | (3) | |
2019 Exit Plan [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at the beginning of the period | 1,615 | 0 |
Cash payments | (649) | (1,448) |
Balance at the end of the period | 958 | 958 |
2019 Exit Plan [Member] | General and Administrative [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges (reversals) | (8) | 2,215 |
2019 Exit Plan [Member] | Direct Salaries and Related Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges (reversals) | 191 | |
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at the beginning of the period | 54 | 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 | |
2019 Exit Plan [Member] | Severance and Related Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at the beginning of the period | 1,561 | 0 |
Cash payments | (649) | (1,448) |
Balance at the end of the period | 904 | 904 |
2019 Exit Plan [Member] | Severance and Related Costs [Member] | General and Administrative [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges (reversals) | $ (8) | 2,161 |
2019 Exit Plan [Member] | Severance and Related Costs [Member] | Direct Salaries and Related Costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges (reversals) | $ 191 |
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 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
2018 Exit Plan [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring reserve | $ 51 | $ 87 | $ 197 | $ 351 | $ 2,586 |
2018 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring reserve | 51 | 81 | 96 | 129 | 1,769 |
2018 Exit Plan [Member] | Severance and Related Costs [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring reserve | 6 | 101 | 222 | 817 | |
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 | $ 51 | 54 | |||
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 | 27 | ||||
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 | 6 | ||||
2019 Exit Plan [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring reserve | 481 | 958 | 1,615 | 0 | |
2019 Exit Plan [Member] | Lease Obligations and Facility Exit Costs [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring reserve | 54 | 54 | 0 | ||
2019 Exit Plan [Member] | Severance and Related Costs [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring reserve | 481 | $ 904 | $ 1,561 | $ 0 | |
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 | 2 | ||||
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 | $ 479 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Derivative Assets | $ 1,345 | $ 3,607 |
Total assets | 16,433 | 17,534 |
Liabilities: | ||
Derivative Liabilities | 2,195 | 251 |
Total liabilities | 2,195 | 251 |
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | ||
Assets: | ||
Total assets | 15,088 | 13,927 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Significant Other Observable Inputs Level 2 [Member] | ||
Assets: | ||
Total assets | 1,345 | 3,607 |
Liabilities: | ||
Total liabilities | 2,195 | 251 |
Significant Unobservable Inputs Level 3 [Member] | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
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 | 9,716 | 9,125 |
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 9,716 | 9,125 |
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 0 | 0 |
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 0 | 0 |
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 | 5,372 | 4,802 |
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 5,372 | 4,802 |
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 0 | 0 |
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Assets: | ||
Investments held in rabbi trust for the Deferred Compensation Plan | 0 | 0 |
Foreign Currency Contracts [Member] | ||
Assets: | ||
Derivative Assets | 1,345 | 3,607 |
Liabilities: | ||
Derivative Liabilities | 2,195 | 251 |
Foreign Currency Contracts [Member] | Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Foreign Currency Contracts [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
Assets: | ||
Derivative Assets | 1,345 | 3,607 |
Liabilities: | ||
Derivative Liabilities | 2,195 | 251 |
Foreign Currency Contracts [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
Assets: | ||
Derivative Assets | 0 | 0 |
Liabilities: | ||
Derivative Liabilities | $ 0 | $ 0 |
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 | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Impairment of long-lived assets | $ 35,521 | $ 37,321 | $ 1,711 |
Impairment of goodwill | 21,792 | 21,792 | |
Americas [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Impairment of long-lived assets | 12,763 | 14,563 | 1,711 |
Impairment of goodwill | 0 | ||
EMEA [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Impairment of long-lived assets | 22,758 | 22,758 | |
Impairment of goodwill | 21,792 | ||
Significant Other Observable Inputs Level 2 [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 | 7,538 | 8,578 | 1,368 |
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | EMEA [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Operating lease right-of-use assets | 620 | 620 | |
Significant Other Observable Inputs Level 2 [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 | 5,225 | 5,985 | $ 343 |
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Property and Equipment [Member] | EMEA [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Impairment of long-lived assets | 346 | 346 | |
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | EMEA [Member] | |||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |||
Impairment of goodwill | $ 21,792 | $ 21,792 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) $ in Millions | Sep. 30, 2020USD ($)Seat |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Number of seats transitioned to at home | Seat | 2,800 |
Significant Other Observable Inputs Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of ROU assets | $ 9.3 |
Fair value of property and equipment | $ 0.6 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Intangibles | $ 211,921 | $ 214,696 |
Intangible assets subject to amortization, Accumulated Amortization | (146,749) | (137,385) |
Intangible assets subject to amortization, Net Intangibles | $ 65,172 | $ 77,311 |
Intangible assets subject to amortization, Weighted Average Amortization Period (years) | 10 years | 10 years |
Gross Intangibles, Total | $ 293,245 | $ 295,805 |
Net Intangibles, Total | 146,496 | 158,420 |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Intangibles | 190,280 | 191,171 |
Intangible assets subject to amortization, Accumulated Amortization | (130,307) | (121,074) |
Intangible assets subject to amortization, Net Intangibles | $ 59,973 | $ 70,097 |
Intangible assets subject to amortization, Weighted Average Amortization Period (years) | 10 years | 10 years |
Trade Name and Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Intangibles | $ 19,285 | $ 19,380 |
Intangible assets subject to amortization, Accumulated Amortization | (14,512) | (12,929) |
Intangible assets subject to amortization, Net Intangibles | $ 4,773 | $ 6,451 |
Intangible assets subject to amortization, Weighted Average Amortization Period (years) | 8 years | 8 years |
Non-Compete Agreements [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Intangibles | $ 957 | $ 2,769 |
Intangible assets subject to amortization, Accumulated Amortization | (601) | (2,181) |
Intangible assets subject to amortization, Net Intangibles | $ 356 | $ 588 |
Intangible assets subject to amortization, Weighted Average Amortization Period (years) | 3 years | 3 years |
Content Library [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Intangibles | $ 529 | $ 506 |
Intangible assets subject to amortization, Accumulated Amortization | $ (529) | $ (506) |
Intangible assets subject to amortization, Weighted Average Amortization Period (years) | 2 years | 2 years |
Proprietary Software [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, Gross Intangibles | $ 870 | $ 870 |
Intangible assets subject to amortization, Accumulated Amortization | (800) | (695) |
Intangible assets subject to amortization, Net Intangibles | $ 70 | $ 175 |
Intangible assets subject to amortization, Weighted Average Amortization Period (years) | 5 years | 5 years |
Domain Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization, Gross Intangibles | $ 81,324 | $ 81,109 |
Intangible assets not subject to amortization, Net Intangibles | $ 81,324 | $ 81,109 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2020 (remainder of the year) | $ 2,475 |
2021 | 9,469 |
2022 | 8,161 |
2023 | 7,308 |
2024 | 7,062 |
2025 | 6,937 |
2026 and thereafter | $ 23,760 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Beginning Balance, Goodwill Net | $ 311,247 | $ 302,517 | |
Acquisition-Related | 0 | 3,623 | |
Impairment | $ (21,792) | (21,792) | |
Effect of Foreign Currency | (1,990) | 5,107 | |
Ending Balance, Goodwill Net | 287,465 | 287,465 | 311,247 |
Americas [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance, Goodwill Net | 259,953 | 255,436 | |
Acquisition-Related | 0 | 1,202 | |
Impairment | 0 | ||
Effect of Foreign Currency | (1,392) | 3,315 | |
Ending Balance, Goodwill Net | 258,561 | 258,561 | 259,953 |
EMEA [Member] | |||
Goodwill [Line Items] | |||
Beginning Balance, Goodwill Net | 51,294 | 47,081 | |
Acquisition-Related | 0 | 2,421 | |
Impairment | (21,792) | ||
Effect of Foreign Currency | (598) | 1,792 | |
Ending Balance, Goodwill Net | $ 28,904 | $ 28,904 | $ 51,294 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)Reporting_Unit | Sep. 30, 2020USD ($)Reporting_Unit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | ||||
Number of reporting units | Reporting_Unit | 8 | |||
Number of reporting units including goodwill | Reporting_Unit | 7 | |||
Number of reporting units, fair value in excess of carrying value | Reporting_Unit | 3 | 3 | ||
Goodwill Impairment Loss | $ 21,792,000 | $ 21,792,000 | ||
Goodwill | 287,465,000 | 287,465,000 | $ 311,247,000 | $ 302,517,000 |
Clearlink [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill Impairment Loss | 0 | |||
Goodwill | 74,200,000 | 74,200,000 | ||
Symphony [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill Impairment Loss | 21,800,000 | 21,800,000 | ||
Goodwill | 18,700,000 | 18,700,000 | ||
Latin America [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill Impairment Loss | 0 | |||
Goodwill | 18,300,000 | 18,300,000 | ||
Qelp [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill Impairment Loss | 0 | |||
Goodwill | $ 10,200,000 | $ 10,200,000 |
Financial Derivatives - Deferre
Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Deferred gains (losses) in AOCI | $ (1,156) | $ 2,221 |
Tax on deferred gains (losses) in AOCI | (42) | 69 |
Deferred gains (losses) in AOCI, net of taxes | (1,198) | $ 2,290 |
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months | $ (1,121) |
Financial Derivatives - Outstan
Financial Derivatives - Outstanding Foreign Currency Forward Contracts and Options (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
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 | $ 18,000 | $ 74,000 |
Settle Through Date | Dec. 31, 2020 | Dec. 31, 2020 |
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 | $ 51,000 | $ 42,000 |
Settle Through Date | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Hungarian Forints [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 914 | |
Settle Through Date | Dec. 31, 2020 | |
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Romanian Leis [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 4,019 | |
Settle Through Date | Dec. 31, 2020 | |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Forwards [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 18,472 | $ 19,295 |
Settle Through Date | Nov. 30, 2021 | Nov. 30, 2021 |
Financial Derivatives - Additio
Financial Derivatives - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Maximum amount of loss due to credit risk | $ 1,300,000 | $ 3,600,000 |
Total net settlement amount asset positions | 1,200,000 | 3,400,000 |
Total net settlement amount liability positions | $ 2,100,000 | $ 0 |
Financial Derivatives - Derivat
Financial Derivatives - Derivative Instruments Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 1,345 | $ 3,607 |
Derivative Liabilities | 2,195 | 251 |
Foreign Currency Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,345 | 3,607 |
Derivative Liabilities | 2,195 | 251 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 139 | 322 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Deferred Charges and Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 59 | 234 |
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 | 59 | 113 |
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 2,136 | 138 |
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 | 1,147 | 3,051 |
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Long Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 32 | |
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 | $ 2,104 | $ 138 |
Financial Derivatives - Effect
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Revenues | $ 431,727 | $ 397,547 | $ 1,259,726 | $ 1,189,478 |
Gains (losses) recognized from derivatives | (115) | (363) | (525) | (828) |
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: | (1,084) | (36) | (216) | 4,733 |
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: | 818 | 1,134 | 3,182 | 1,264 |
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized from derivatives | $ (115) | $ (363) | $ (525) | $ (828) |
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 | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Mutual funds, Cost | $ 10,169 | $ 9,777 |
Other Current Assets [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Mutual funds, Fair Value | $ 15,088 | $ 13,927 |
Investments Held in Rabbi Tru_4
Investments Held in Rabbi Trust - Additional Information (Detail) | Sep. 30, 2020 |
Equity-Based Securities [Member] | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Mutual funds held in rabbi trust | 64.00% |
Debt-Based Securities [Member] | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |
Mutual funds held in rabbi trust | 36.00% |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Net realized gains (losses) from sale of trading securities | $ 42 | $ 62 | $ 104 | $ 128 |
Dividend and interest income | 35 | 35 | 116 | 117 |
Net unrealized holding gains (losses) | 764 | (56) | 380 | 1,402 |
Net investment income (losses) | $ 841 | $ 41 | $ 600 | $ 1,647 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 874,475 | $ 826,609 |
Pre-tax amount | (2,943) | 12,548 |
Tax (provision) benefit | (226) | (3) |
Reclassification of (gain) loss to net income | (3,207) | (2,771) |
Ending Balance | 853,778 | 874,475 |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (52,749) | (58,253) |
Pre-tax amount | (2,727) | 5,462 |
Foreign currency translation | (135) | 42 |
Ending Balance | (55,611) | (52,749) |
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 | 2,290 | (1,864) |
Pre-tax amount | (216) | 6,978 |
Tax (provision) benefit | (238) | 20 |
Reclassification of (gain) loss to net income | (3,058) | (2,719) |
Foreign currency translation | 24 | (125) |
Ending Balance | (1,198) | 2,290 |
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 2,324 | 2,256 |
Pre-tax amount | 108 | |
Tax (provision) benefit | 12 | (23) |
Reclassification of (gain) loss to net income | (83) | (100) |
Foreign currency translation | 111 | 83 |
Ending Balance | 2,364 | 2,324 |
Unrealized Gain (Loss) on Postretirement Obligation [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 88 | 40 |
Reclassification of (gain) loss to net income | (66) | 48 |
Ending Balance | 22 | 88 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (47,001) | (56,775) |
Ending Balance | $ (53,377) | $ (47,001) |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pre-tax amount | $ (415) | $ 23,794 | $ 47,344 | $ 53,898 |
Tax (provision) benefit | 4,676 | 5,689 | 16,287 | 12,837 |
Reclassification of gain (loss) to net income | (5,091) | 18,105 | 31,057 | 41,061 |
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 | 816 | 1,130 | 3,207 | 1,273 |
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 | (54) | (33) | (124) | (78) |
Reclassification of gain (loss) to net income | 764 | 1,101 | 3,058 | 1,186 |
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 | 5 | 3 | 12 | 9 |
Reclassification of gain (loss) to net income | 30 | 24 | 83 | 72 |
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 | 818 | 1,134 | 3,182 | 1,264 |
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 | 25 | 21 | 71 | 63 |
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 | $ 22 | $ 5 | $ 66 | $ 15 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Tax Rates (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | (1126.70%) | 23.90% | 34.40% | 23.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 21.00% | 21.00% |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic: | ||||
Weighted average common shares outstanding | 39,994 | 41,190 | 40,482 | 41,808 |
Diluted: | ||||
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust | 117 | 131 | 100 | |
Total weighted average diluted shares outstanding | 39,994 | 41,307 | 40,613 | 41,908 |
Anti-dilutive shares excluded from the diluted earnings per share calculation | 441 | 52 | 8 | 174 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - 2011 Share Repurchase Program [Member] - shares | 3 Months Ended | 9 Months Ended | 106 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | 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 | 500,000 | 369,000 | 1,860,000 | 1,140,000 | 8,300,000 | ||
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 | 9 Months Ended | 106 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | |
Schedule Of Shares Repurchased [Line Items] | ||||||||
Total Cost of Shares Repurchased | $ 16,248 | $ 13,019 | $ 22,909 | $ 10,103 | $ 20,178 | $ 52,176 | $ 30,281 | |
Minimum [Member] | ||||||||
Schedule Of Shares Repurchased [Line Items] | ||||||||
Range of Prices Paid Per Share | $ 31.49 | $ 26.81 | $ 23.33 | $ 24.72 | ||||
Maximum [Member] | ||||||||
Schedule Of Shares Repurchased [Line Items] | ||||||||
Range of Prices Paid Per Share | $ 33.21 | $ 28 | $ 33.21 | $ 28 | ||||
2011 Share Repurchase Program [Member] | ||||||||
Schedule Of Shares Repurchased [Line Items] | ||||||||
Total Number of Shares Repurchased | 500 | 369 | 1,860 | 1,140 | 8,300 |
Commitments and Loss Continge_2
Commitments and Loss Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
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 | $ 2,000,000 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $ 118 | $ 98 | $ 331 | $ 296 |
Interest cost | 56 | 62 | 159 | 186 |
Recognized actuarial (gains) | (25) | (21) | (71) | (63) |
Net periodic benefit cost | $ 149 | $ 139 | $ 419 | $ 419 |
Defined Benefit Pension Plan _4
Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Most Employees 401(k) Plan [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
401(k) plan, most employees, maximum employer matching contribution, percent of employee's gross pay | 4.00% |
Most Employees 401(k) Plan [Member] | Next Eligible Compensation | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
401(k) plan, most employees, employer matching contribution, percent of match | 50.00% |
401(k) plan, most employees, employer matching contribution, percent of employees' gross pay | 2.00% |
Most Employees 401(k) Plan [Member] | First Eligible Compensation | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
401(k) plan, most employees, employer matching contribution, percent of match | 100.00% |
401(k) plan, most employees, employer matching contribution, percent of employees' gross pay | 3.00% |
Highly Compensated Employees 401(k) Plan [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
401(k) plan, most employees, employer matching contribution, percent of match | 50.00% |
401(k) plan, most employees, employer matching contribution, percent of employees' gross pay | 4.00% |
401(k) plan, most employees, maximum employer matching contribution, percent of employee's gross pay | 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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||||
401(k) plan contributions | $ 719 | $ 410 | $ 2,210 | $ 1,295 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation (expense) | $ (4,029) | $ (1,504) | $ (7,931) | $ (5,594) |
Income Taxes [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Income tax benefit | $ 967 | $ 361 | $ 1,903 | $ 1,343 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - Equity Incentive Plan [Member] shares in Millions | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Performance-Based Restricted Shares/Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted | shares | 0.4 |
Weighted average grant-date fair value | $ / shares | $ 25.60 |
Employment-Based Restricted Shares/Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted | shares | 0.2 |
Weighted average grant-date fair value | $ / shares | $ 25.60 |
Segments and Geographic Infor_3
Segments and Geographic Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020SegmentRegion | |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 431,727 | $ 397,547 | $ 1,259,726 | $ 1,189,478 |
Percentage of revenues | 100.00% | 100.00% | 100.00% | 100.00% |
Depreciation, net | $ 12,681 | $ 12,449 | $ 37,772 | $ 39,398 |
Amortization of intangibles | 3,366 | 4,103 | 11,578 | 12,516 |
Income (loss) from operations | (2,100) | 24,706 | 49,507 | 56,713 |
Total other income (expense), net | 1,685 | (912) | (2,163) | (2,815) |
Income taxes | (4,676) | (5,689) | (16,287) | (12,837) |
Net income (loss) | (5,091) | 18,105 | 31,057 | 41,061 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 349,063 | $ 318,097 | $ 1,021,261 | $ 953,181 |
Percentage of revenues | 80.90% | 80.00% | 81.10% | 80.10% |
Americas [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 349,063 | $ 318,097 | $ 1,021,261 | $ 953,181 |
Percentage of revenues | 80.90% | 80.00% | 81.10% | 80.10% |
Depreciation, net | $ 9,943 | $ 10,086 | $ 30,064 | $ 32,252 |
Amortization of intangibles | 2,522 | 3,289 | 9,089 | 10,015 |
Income (loss) from operations | 32,558 | 34,516 | 108,816 | 91,168 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 82,664 | $ 79,427 | $ 238,458 | $ 236,231 |
Percentage of revenues | 19.10% | 20.00% | 18.90% | 19.90% |
EMEA [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 82,664 | $ 79,427 | $ 238,458 | $ 236,231 |
Percentage of revenues | 19.10% | 20.00% | 18.90% | 19.90% |
Depreciation, net | $ 2,006 | $ 1,611 | $ 5,529 | $ 4,865 |
Amortization of intangibles | 844 | 814 | 2,489 | 2,501 |
Income (loss) from operations | $ (14,311) | 5,688 | (7,053) | 11,840 |
Other Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 23 | $ 7 | $ 66 | |
Percentage of revenues | 0.00% | 0.00% | 0.00% | 0.00% |
Depreciation, net | $ 732 | $ 752 | $ 2,179 | $ 2,281 |
Income (loss) from operations | (20,347) | (15,498) | (52,256) | (46,295) |
Total other income (expense), net | 1,685 | (912) | (2,163) | (2,815) |
Income taxes | $ (4,676) | $ (5,689) | $ (16,287) | $ (12,837) |
Segments and Geographic Infor_5
Segments and Geographic Information - Operation by Delivery Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 431,727 | $ 397,547 | $ 1,259,726 | $ 1,189,478 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 349,063 | 318,097 | 1,021,261 | 953,181 |
Americas [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 349,063 | 318,097 | 1,021,261 | 953,181 |
Americas [Member] | Operating Segments [Member] | United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 160,158 | 144,698 | 482,595 | 451,466 |
Americas [Member] | Operating Segments [Member] | The Philippines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 69,382 | 65,560 | 196,388 | 180,431 |
Americas [Member] | Operating Segments [Member] | Costa Rica [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 38,716 | 31,228 | 112,847 | 93,524 |
Americas [Member] | Operating Segments [Member] | Canada [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 26,469 | 24,815 | 74,665 | 74,885 |
Americas [Member] | Operating Segments [Member] | El Salvador [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 18,079 | 20,904 | 53,701 | 61,447 |
Americas [Member] | Operating Segments [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 36,259 | 30,892 | 101,065 | 91,428 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 82,664 | 79,427 | 238,458 | 236,231 |
EMEA [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 82,664 | 79,427 | 238,458 | 236,231 |
EMEA [Member] | Operating Segments [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 57,091 | 55,956 | 164,118 | 166,083 |
EMEA [Member] | Operating Segments [Member] | Germany [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 25,573 | 23,471 | 74,340 | 70,148 |
Other Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 23 | $ 7 | $ 66 |
Other Income (Expense) - Other
Other Income (Expense) - Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Nonoperating Income Expense [Abstract] | ||||
Foreign currency transaction gains (losses) | $ (323) | $ 430 | $ (1,881) | $ (107) |
Gains (losses) on derivative instruments not designated as hedges | (115) | (363) | (525) | (828) |
Other miscellaneous income (expense) | 1,500 | (163) | 713 | (690) |
Other income (expense) | 1,903 | (55) | (1,093) | 22 |
Other Income (Expense), Net [Member] | ||||
Other Nonoperating Income Expense [Abstract] | ||||
Net investment gains (losses) on investments held in rabbi trust | $ 841 | $ 41 | $ 600 | $ 1,647 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - John H. Sykes [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2008 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Other Related Party Transactions [Line Items] | |||||
Duration of lease | 20 years | ||||
Lease termination penalty | $ 0.1 | ||||
Early termination date | Mar. 31, 2021 | ||||
Payment to landlord under the lease terms | $ 0.1 | $ 0.1 | $ 0.4 | $ 0.4 | |
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. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] | Oct. 13, 2020 |
Subsequent Event [Line Items] | |
Subsequent event, description | On October 13, 2020, the Company experienced a cyber incident affecting some of the Company’s systems (the “October 2020 Cyber Incident”). The Company believes it has identified the specific systems that were impacted and that it has generally restored operations with no material day-to-day impact to its ability to provide normal service to its clients. The Company’s investigation of the incident is ongoing with assistance from third-party experts. The Company has notified law enforcement officials and will cooperate in any criminal investigation of this matter. The Company maintains a cyber and privacy insurance policy and expects to recover business interruption and other losses related to the incident, subject to the Company’s deductible, which is not material. |
Subsequent event, date | Oct. 13, 2020 |