Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 24, 2013 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TELETECH HOLDINGS INC | ||
Entity Central Index Key | 1013880 | ||
Document Type | 10-Q | ||
Document Period End Date | 30-Sep-13 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | Q3 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $451,226,304 | ||
Entity Common Stock, Shares Outstanding | 50,424,066 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $144,903 | $164,485 |
Accounts receivable, net | 245,080 | 251,206 |
Prepaids and other current assets | 58,987 | 58,702 |
Deferred tax assets, net | 8,672 | 14,169 |
Income tax receivable | 9,367 | 14,982 |
Total current assets | 467,009 | 503,544 |
Long-term assets | ||
Property, plant and equipment, net | 120,111 | 112,276 |
Goodwill | 98,695 | 94,679 |
Contract acquisition costs, net | 2,077 | 1,860 |
Deferred tax assets, net | 46,720 | 35,429 |
Other long-term assets | 103,757 | 99,385 |
Total long-term assets | 371,360 | 343,629 |
Total assets | 838,369 | 847,173 |
Current liabilities | ||
Accounts payable | 35,719 | 23,494 |
Accrued employee compensation and benefits | 67,982 | 71,621 |
Other accrued expenses | 26,365 | 29,056 |
Income taxes payable | 4,504 | 12,650 |
Deferred tax liabilities, net | 300 | 341 |
Deferred revenue | 33,609 | 26,892 |
Other current liabilities | 10,519 | 7,351 |
Total current liabilities | 178,998 | 171,405 |
Long-term liabilities | ||
Line of credit | 118,000 | 108,000 |
Deferred tax liabilities, net | 2,277 | 3,029 |
Deferred rent | 9,826 | 8,589 |
Other long-term liabilities | 57,897 | 55,813 |
Total long-term liabilities | 188,000 | 175,431 |
Total liabilities | 366,998 | 346,836 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity | ||
Preferred stock - $0.01 par value: 10,000,000 shares authorized; zero shares outstanding as of September 30, 2013 and December 31, 2012 | 0 | 0 |
Common stock - $0.01 par value; 150,000,000 shares authorized; 50,496,816 and 52,288,567 shares outstanding as of September 30, 2013 and December 31, 2012, respectively | 504 | 522 |
Additional paid-in capital | 354,501 | 350,714 |
Treasury stock at cost: 31,555,437 and 29,763,686 shares as of September 30, 2013 and December 31, 2012, respectively | -473,318 | -428,716 |
Accumulated other comprehensive income (loss) | -7,886 | 22,981 |
Retained earnings | 588,710 | 540,791 |
Noncontrolling interest | 8,860 | 14,045 |
Total stockholders' equity | 471,371 | 500,337 |
Total liabilities and stockholders' equity | $838,369 | $847,173 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Stockholders' equity | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares outstanding | 50,496,816 | 52,288,567 |
Treasury stock, shares | 31,555,437 | 29,763,686 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements of Comprehensive Income | ||||
Revenue | $296,995 | $286,268 | $875,070 | $867,720 |
Operating expenses | ||||
Cost of services (exclusive of depreciation and amortization presented separately below) | 208,648 | 201,766 | 625,689 | 622,782 |
Selling, general and administrative | 50,165 | 43,845 | 142,080 | 137,689 |
Depreciation and amortization | 11,463 | 10,695 | 33,281 | 31,040 |
Restructuring charges, net | 758 | 2,440 | 4,181 | 20,694 |
Impairment losses | 0 | 161 | 1,205 | 2,958 |
Total operating expenses | 271,034 | 258,907 | 806,436 | 815,163 |
Income from operations | 25,961 | 27,361 | 68,634 | 52,557 |
Other income (expense) | ||||
Interest income | 938 | 780 | 2,182 | 2,235 |
Interest expense | -1,799 | -2,129 | -5,567 | -4,810 |
Loss on deconsolidation of subsidiary | 0 | 0 | -3,655 | 0 |
Other income (expense), net | 427 | 97 | 1,503 | -227 |
Total other income (expense) | -434 | -1,252 | -5,537 | -2,802 |
Income before income taxes | 25,527 | 26,109 | 63,097 | 49,755 |
(Provision for) benefit from income taxes | -6,358 | 3,611 | -12,603 | 3,030 |
Net income | 19,169 | 29,720 | 50,494 | 52,785 |
Net income attributable to noncontrolling interest | -1,526 | -1,291 | -2,575 | -3,152 |
Net income attributable to TeleTech stockholders | 17,643 | 28,429 | 47,919 | 49,633 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | -1,708 | 7,358 | -18,191 | 10,607 |
Derivative valuation, gross | -1,440 | 7,260 | -21,851 | 21,650 |
Derivative valuation, tax effect | 412 | -2,906 | 8,620 | -8,480 |
Other, net of tax | 152 | 298 | 451 | 933 |
Total other comprehensive income (loss) | -2,584 | 12,010 | -30,971 | 24,710 |
Total comprehensive income | 16,585 | 41,730 | 19,523 | 77,495 |
Comprehensive income attributable to noncontrolling interest | -1,642 | -1,357 | -2,471 | -3,265 |
Comprehensive income attributable to TeleTech stockholders | $14,943 | $40,373 | $17,052 | $74,230 |
Weighted average shares outstanding | ||||
Basic | 50,732 | 54,093 | 51,643 | 55,233 |
Diluted | 51,678 | 54,905 | 52,499 | 55,991 |
Net income per share attributable to TeleTech stockholders | ||||
Basic | $0.35 | $0.53 | $0.93 | $0.90 |
Diluted | $0.34 | $0.52 | $0.91 | $0.89 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Stockholders' Equity of the Company Preferred Stock [Member] | Stockholders' Equity of the Company Common Stock [Member] | Stockholders' Equity of the Company Treasury Stock [Member] | Stockholders' Equity of the Company Additional Paid-in Capital [Member] | Stockholders' Equity of the Company Accumulated Other Comprehensive Income [Member] | Stockholders' Equity of the Company Retained Earnings [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data | ||||||||
Beginning balance,value at Dec. 31, 2012 | $500,337 | $0 | $522 | ($428,716) | $350,714 | $22,981 | $540,791 | $14,045 |
Preferred stock beginning balance, share at Dec. 31, 2012 | 0 | 0 | ||||||
Common stock beginning balance, share at Dec. 31, 2012 | 52,288,567 | 52,288,000 | ||||||
Net income | 50,494 | 47,919 | 2,575 | |||||
Dividends distributed to noncontrolling interest | -3,420 | -3,420 | ||||||
Purchases of outstanding noncontrolling interest | -425 | 3,715 | -4,140 | |||||
Deconsolidation of a subsidiary | -121 | -121 | ||||||
Foreign currency translation adjustments | -18,191 | -18,087 | -104 | |||||
Derivatives valuation, net of tax | -13,231 | -13,231 | ||||||
Vesting of restricted stock units, share | 400,000 | |||||||
Vesting of restricted stock units, value | -4,145 | 4 | 5,717 | -9,866 | ||||
Exercise of stock options, share | 90,000 | |||||||
Exercise of stock options, value | 856 | 1 | 1,285 | -430 | ||||
Excess tax benefit from equity-based awards | 644 | 644 | ||||||
Equity-based compensation expense | 9,749 | 9,724 | 25 | |||||
Purchases of common stock, share | -2,281,000 | |||||||
Purchases of common stock, value | -51,627 | -23 | -51,604 | |||||
Other | 451 | 451 | ||||||
Ending balance,value at Sep. 30, 2013 | $471,371 | $0 | $504 | ($473,318) | $354,501 | ($7,886) | $588,710 | $8,860 |
Preferred stock ending balance, share at Sep. 30, 2013 | 0 | 0 | ||||||
Common stock ending balance, share at Sep. 30, 2013 | 50,496,816 | 50,497,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ||
Net income | $50,494 | $52,785 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 33,281 | 31,040 |
Amortization of contract acquisition costs | 753 | 763 |
Amortization of debt issuance costs | 488 | 531 |
Imputed interest expense | 933 | 600 |
Provision for doubtful accounts | 412 | 490 |
(Gain) loss on disposal of assets | -94 | 180 |
Impairment losses | 1,205 | 2,958 |
Deferred income taxes | 5,467 | 2,134 |
Excess tax benefit from equity-based awards | -1,074 | -1,005 |
Equity-based compensation expense | 9,842 | 10,310 |
Gain on foreign currency derivatives | -75 | -574 |
Loss on deconsolidation of subsidiary, net of cash of $897 and zero, respectively | 2,758 | 0 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 709 | 1,091 |
Prepaids and other assets | -11,241 | -30,893 |
Accounts payable and accrued expenses | -14,020 | -15,696 |
Deferred revenue and other liabilities | -3,225 | 8,697 |
Net cash provided by operating activities | 76,613 | 63,411 |
Cash flows from investing activities | ||
Proceeds from grant for property, plant and equipment | 0 | 110 |
Proceeds from sale of long-lived assets | 0 | 450 |
Purchases of property, plant and equipment, net of acquisitions | -31,832 | -33,259 |
Acquisitions, net of cash acquired of $6,423 and $1,373, respectively | -8,956 | -4,809 |
Net cash used in investing activities | -40,788 | -37,508 |
Cash flows from financing activities | ||
Proceeds from line of credit | 1,114,050 | 857,650 |
Payments on line of credit | -1,104,050 | -833,650 |
Proceeds from other debt | 3,709 | 8,014 |
Payments on other debt | -4,293 | -2,783 |
Dividends distributed to noncontrolling interest | -3,420 | -1,440 |
Proceeds from exercise of stock options | 856 | 1,135 |
Excess tax benefit from equity-based awards | 1,074 | 1,005 |
Purchase of treasury stock | -51,627 | -55,211 |
Payments of debt issuance costs | -1,800 | -432 |
Net cash used in financing activities | -45,501 | -25,712 |
Effect of exchange rate changes on cash and cash equivalents | -9,906 | 13,815 |
(Decrease) increase in cash and cash equivalents | -19,582 | 14,006 |
Cash and cash equivalents, beginning of period | 164,485 | 156,371 |
Cash and cash equivalents, end of period | 144,903 | 170,377 |
Supplemental disclosures | ||
Cash paid for interest | 3,271 | 3,168 |
Cash paid for income taxes | 12,329 | 13,213 |
Non-cash investing and financing activities | ||
Purchases of equipment through financing arrangements | 0 | 6,100 |
Acquisition of equipment through increase in accounts payable | 3,803 | 396 |
Landlord incentives credited to deferred rent | 1,016 | 1,723 |
Contract acquisition costs credited to accounts receivable | $1,000 | $0 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from investing activities | ||
Acquisitions, net of cash acquired of $6,423 and $1,373, respectively | $6,423 | $1,373 |
Cash flows from operating activities | ||
Loss on deconsolidation of subsidiary, net of cash of $897 and zero, respectively | $897 | $0 |
OVERVIEW_AND_BASIS_OF_PRESENTA
OVERVIEW AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
OVERVIEW AND BASIS OF PRESENTATION | (1) OVERVIEW AND BASIS OF PRESENTATION |
Overview | |
TeleTech Holdings, Inc. and its subsidiaries (“TeleTech” or the “Company”) is a geographically diverse global provider of technology-enabled, fully-integrated customer experience management solutions for Global 1000 clients and their customers. A global provider of data-driven, technology-enabled business process outsourcing, technology integration, consulting and customer management, and hosted and managed technology services. TeleTech's 39,000 employees serve clients in the automotive, communication, financial services, government, healthcare, logistics, media and entertainment, retail, technology, transportation and travel industries via operations in the U.S., Argentina, Australia, Belgium, Brazil, Canada, China, Costa Rica, France, Germany, Ghana, Italy, Lebanon, Mexico, New Zealand, the Philippines, Singapore, South Africa, Spain, Thailand, Turkey, the United Arab Emirates, and the United Kingdom. | |
Basis of Presentation | |
The Consolidated Financial Statements are comprised of the accounts of TeleTech, its wholly owned subsidiaries, its 55% interest in Percepta, LLC, and its 80% interest in iKnowtion, LLC. All intercompany balances and transactions have been eliminated in consolidation. | |
The accompanying unaudited Consolidated Financial Statements do not include all of the disclosures required by accounting principles generally accepted in the U.S. (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company and the consolidated results of operations and comprehensive income (loss) and the consolidated cash flows of the Company. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | |
These unaudited Consolidated Financial Statements should be read in conjunction with the Company's audited Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. | |
Use of Estimates | |
The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, self-insurance reserves, litigation reserves, restructuring reserves, allowance for doubtful accounts and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. In the three months ended June 30, 2012, the Company recorded a change in estimate which resulted in a decrease of $4.6 million to employee related expenses in connection with an authoritative ruling in Spain related to the legally required cost of living adjustment for employees' salaries for the years 2010, 2011 and 2012. | |
Recently Issued Accounting Pronouncements | |
In February 2013, the FASB issued new accounting guidance that improves the reporting of reclassifications out of accumulated other comprehensive income. This new guidance requires entities to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income when applicable or to cross-reference the reclassifications with other disclosures that provide additional detail about the reclassifications made when the reclassifications are not made to net income. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2012. The Company's adoption of this guidance did not have a material impact on the Company's financial position, results of operations, or cash flows since it was an enhancement to current required disclosures. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
ACQUISITIONS [ABSTRACT] | |||||
ACQUISITIONS | (2) ACQUISITONS | ||||
Peppers & Rogers Group | |||||
On September 18, 2013, the Company acquired the remaining 20% interest in Peppers & Rogers Group (“PRG”) for $425 thousand. The buy-out accelerated TeleTech's rights pursuant to the sale and purchase agreement to acquire the remaining portion of the business in 2015. All future earn-out payment entitlements tied to the PRG's performance as a part of TeleTech's Customer Strategy Services segment have been extinguished with this transaction. | |||||
WebMetro | |||||
On August 9, 2013, the Company acquired 100% of the stock of WebMetro. WebMetro is a digital marketing agency that provides online direct marketing services. WebMetro has offices in San Dimas and Los Angeles, California and Modiin, Israel and has approximately 90 employees. | |||||
The expected total purchase price was $16.4 million, subject to an up and down dollar for dollar working capital adjustment equivalent to any acquired working capital from WebMetro against an agreed working capital level as defined in the stock purchase agreement. This adjustment will be determined during the fourth quarter of 2013. | |||||
The Company is also obligated to make earn-out payments over the next two years if WebMetro achieves specified earnings before interest, taxes, depreciation and amortization (“EBITDA”) targets, as defined by the stock purchase agreement. The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 5.3% and expected future value of payments of $1.4 million. The $1.4 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with WebMetro achieving the smaller EBITDA targets. As of the acquisition date, the fair value of the contingent payments was approximately $1.3 million. As of September 30, 2013, the fair value of the contingent consideration was $1.3 million, of which $0.2 million and $1.1 million were included in Other accrued expenses and Other long-term liabilities in the accompanying Consolidated Balance Sheets, respectively. | |||||
The following summarizes the preliminary estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands). The estimates of fair value of identifiable assets acquired and liabilities assumed, are preliminary, pending completion of a valuation, thus are subject to revisions that may result in adjustments to the values presented below: | |||||
Preliminary Estimate of Acquisition Date Fair Value | |||||
Cash | $ | 6,423 | |||
Accounts receivable, net | 3,692 | ||||
Other assets | 215 | ||||
Property, plant and equipment | 887 | ||||
Customer relationships | 6,120 | ||||
Software | 3,700 | ||||
Goodwill | 5,042 | ||||
26,079 | |||||
Accounts payable | 7,232 | ||||
Accrued expenses | 422 | ||||
Customer deposits | 1,316 | ||||
Capital lease obligation | 444 | ||||
Other | 274 | ||||
9,688 | |||||
Total purchase price | $ | 16,391 | |||
The WebMetro customer relationships and software have an estimated useful life of six years and four years, respectively. The goodwill recognized from the WebMetro acquisition was attributable primarily to the acquired workforce of WebMetro, expected synergies, and other factors. The tax basis of the acquired intangibles and goodwill are deductible for income tax purposes. The acquired goodwill and the operating results of WebMetro are reported within the Customer Growth Services segment from the date of acquisition. | |||||
OnState | |||||
On January 1, 2012, the Company entered into an asset purchase agreement with OnState Communications Corporation (“OnState”) to acquire 100% of its assets and assume certain of its liabilities for total cash consideration of $3.3 million. OnState provides hosted business process outsourcing solutions to a variety of small businesses. OnState was headquartered in Boston, MA with a minimal employee base. | |||||
As of September 30, 2013, the Company paid $3.1 million towards the purchase price. The remaining purchase price of $0.2 million will be paid out once the potential for covered losses has expired per the purchase agreement, which is expected to be in early 2014. The remaining purchase price of $0.2 million was included within Other accrued expenses in the accompanying Consolidated Balance Sheets as of September 30, 2013. The Company paid $0.1 million of acquisition related expenses as part of the OnState purchase. These costs were recorded in Selling, general and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income during the first quarter of 2012. | |||||
The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): | |||||
Acquisition Date Fair Value | |||||
Cash | $ | 36 | |||
Accounts Receivable | 68 | ||||
Property, plant and equipment | 33 | ||||
Software | 2,100 | ||||
Goodwill | 1,132 | ||||
3,369 | |||||
Accounts payable | 93 | ||||
Total purchase price | $ | 3,276 | |||
The software acquired will be amortized over four years once it is placed into service. The goodwill recognized from the OnState acquisition is primarily attributable to the synergies resulting from incorporating the acquired software into the Company's current technology platforms in addition to the acquisition of the employees who developed the acquired software. Since this acquisition is an asset acquisition for tax purposes, the goodwill and software are deductible over their respective tax lives. The acquired goodwill of OnState is reported within the Customer Technology Services segment from the date of acquisition. | |||||
iKnowtion | |||||
On February 27, 2012, the Company acquired an 80% interest in iKnowtion, LLC (“iKnowtion”). iKnowtion integrates proven marketing analytics methodologies and business consulting capabilities to help clients improve their return on marketing expenditures in such areas as demand generation, share of wallet, and channel mix optimization. iKnowtion is located in Boston, MA and has approximately 40 employees. | |||||
The up-front cash consideration paid was $1.0 million. The Company was also obligated to pay a working capital adjustment equivalent to any acquired working capital from iKnowtion in excess of a working capital floor as defined in the purchase and sale agreement. The working capital adjustment was $0.2 million and was paid during the second quarter of 2012. | |||||
The Company is also obligated to make earn-out payments over the next four years if iKnowtion achieves specified earnings before interest, taxes, depreciation and amortization (“EBITDA”) targets, as defined by the purchase and sale agreement. The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 21% and expected future value of payments of $4.3 million. The $4.3 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with iKnowtion achieving the maximum EBITDA targets. As of the acquisition date, the fair value of the contingent payments was approximately $2.9 million. As of September 30, 2013, $1.1 million of contingent consideration has been paid and the fair value of the remaining contingent consideration was $3.0 million, of which $1.1 million and $1.9 million were included in Other accrued expenses and Other long-term liabilities in the accompanying Consolidated Balance Sheets, respectively. | |||||
The fair value of the 20% noncontrolling interest in iKnowtion at the date of acquisition was $0.9 million and was estimated based on a 20% interest of the fair value of a 100% interest in iKnowtion and was discounted for a lack of control at a rate of 23.1%. | |||||
In the event iKnowtion meets certain EBITDA targets for calendar year 2015, the purchase and sale agreement requires TeleTech to purchase the remaining 20% interest in iKnowtion in 2016 for an amount equal to a multiple of iKnowtions's 2015 EBITDA as defined in the purchase and sale agreement. These terms represent a contingent redemption feature. The fair value of the redemption feature is based on a comparison of EBITDA multiples and the EBITDA multiple to purchase the remaining 20% of iKnowtion approximates EBITDA multiples in the market for similar acquisitions. | |||||
The Company paid $0.1 million of acquisition related expenses as part of the iKnowtion purchase. These costs were recorded in Selling, general and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income during the months ended June 30, 2012. | |||||
The following summarizes the fair values of the identifiable assets acquired and liabilities and noncontrolling interest assumed as of the acquisition date (in thousands). | |||||
Acquisition Date Fair Value | |||||
Cash | $ | 1,337 | |||
Accounts Receivable | 1,792 | ||||
Property, plant and equipment | 161 | ||||
Other assets | 90 | ||||
Customer relationships | 1,400 | ||||
Goodwill | 447 | ||||
5,227 | |||||
Accounts payable | 18 | ||||
Accrued expenses | 19 | ||||
Other | 164 | ||||
201 | |||||
Noncontrolling interest | 941 | ||||
Total purchase price | $ | 4,085 | |||
The iKnowtion customer relationships have an estimated useful life of five years. The goodwill recognized from the iKnowtion acquisition was attributable primarily to the acquired workforce of iKnowtion, expected synergies, and other factors. The tax basis of the acquired intangibles and goodwill are deductible for income tax purposes. The acquired goodwill and the operating results of iKnowtion are reported within the Customer Strategy Services segment from the date of acquisition. | |||||
Guidon | |||||
On October 4, 2012, the Company acquired 100% of the stock of Guidon Performance Solutions' (“Guidon”) parent company. Guidon provides operational consulting services and designs solutions for operational and cultural transformation for global clients. Guidon is located in Mesa, AZ and has approximately 25 employees. | |||||
The up-front cash consideration paid was $5.6 million. The Company was also obligated to pay a working capital adjustment equivalent to any acquired working capital from Guidon in excess of a working capital floor defined in the stock purchase agreement. The working capital payment was less than $0.1 million and was paid during the fourth quarter of 2012. | |||||
The Company is also obligated to make earn-out payments over the next two years if Guidon achieves specified EBITDA targets as defined in the stock purchase agreement. The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions included in the fair value calculation include a discount rate of 21% and expected future value of payments of $2.8 million. The $2.8 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with Guidon achieving the maximum EBITDA targets. As of the acquisition date, the fair value of the contingent payments was approximately $2.1 million. As of September 30, 2013, the fair value of the contingent consideration was $2.5 million, of which $1.4 million and $1.1 million were included in Other accrued expenses and Other long-term liabilities in the accompanying Consolidated Balance Sheets, respectively. | |||||
The Company paid $0.1 million of acquisition related expenses as part of the Guidon purchase. These costs were recorded in Selling, general and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income for the year ended December 31, 2012. | |||||
The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): | |||||
Acquisition Date Fair Value | |||||
Cash | $ | 376 | |||
Accounts Receivable | 1,375 | ||||
Property, plant and equipment | 49 | ||||
Other assets | 228 | ||||
Customer relationships | 2,490 | ||||
Goodwill | 3,619 | ||||
8,137 | |||||
Accounts payable | 202 | ||||
Accrued expenses | 122 | ||||
Other | 65 | ||||
389 | |||||
Total purchase price | $ | 7,748 | |||
The Guidon customer relationships have an estimated useful life of five years. The goodwill recognized from the Guidon acquisition was attributable primarily to the acquired workforce of Guidon, expected synergies, and other factors. The tax basis of the acquired intangibles and goodwill are deductible for income tax purposes. The acquired goodwill and the operating results of Guidon are reported within the Customer Strategy Services segment from the date of acquisition. | |||||
TSG | |||||
On December 31, 2012, the Company acquired a 100% interest in Technology Solutions Group, Inc. (“TSG”). TSG designs and implements custom communications systems for a variety of business types and sizes. TSG is located in Aurora, IL and has approximately 90 employees. | |||||
The up-front cash consideration paid was $32.7 million. The Company was also obligated to pay a working capital adjustment equivalent to any acquired working capital from TSG in excess of a working capital floor as defined in the stock purchase agreement. The working capital adjustment was $0.6 million and was paid during the second quarter of 2013. | |||||
The Company is also obligated to make earn-out payments over three years if TSG achieves specified EBITDA targets, as defined by the stock purchase agreement. The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions included in the fair value calculation include a discount rate of 4.6% and expected future value of payments of $7.3 million. The $7.3 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with TSG achieving the maximum EBITDA targets. As of the acquisition date, the fair value of the contingent payments was approximately $6.7 million. As of September 30, 2013 the fair value of the contingent consideration was $6.9 million of which $2.4 million and $4.5 million were included in Other accrued expenses and Other long-term liabilities in the accompanying Consolidated Balance Sheets, respectively. | |||||
The Company paid $0.1 million of acquisition related expenses as part of the TSG purchase. These costs were recorded in Selling, general and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income during the year ended December 31, 2012. | |||||
The following summarizes the preliminary estimated fair values of the identifiable assets acquired and liabilities and noncontrolling interest assumed as of the acquisition date (in thousands). The estimates of fair value of identifiable assets acquired and liabilities assumed, are preliminary, pending completion of a valuation, thus are subject to revisions that may result in adjustments to the values presented below: | |||||
Preliminary Estimate of Acquisition Date Fair Value | |||||
Cash | $ | 1,995 | |||
Accounts receivable | 4,871 | ||||
Prepaid assets - cost deferrals | 3,665 | ||||
Property, plant and equipment | 583 | ||||
Other assets | 1,886 | ||||
Customer relationships | 15,300 | ||||
Noncompete agreements | 2,300 | ||||
Trade name | 1,100 | ||||
Consulting services backlog | 800 | ||||
Goodwill | 19,421 | ||||
51,921 | |||||
Accounts payable | 3,091 | ||||
Accrued expenses | 1,539 | ||||
Deferred revenue | 7,295 | ||||
11,925 | |||||
Total purchase price | $ | 39,996 | |||
The TSG customer relationships have an estimated useful life of 10 years. The goodwill recognized from the TSG acquisition was attributable primarily to the acquired workforce of TSG, expected synergies, and other factors. The tax basis of the acquired intangibles and goodwill are deductible for income tax purposes. The acquired goodwill and the operating results of TSG are reported within the Customer Technology Services segment from the date of acquisition. | |||||
The acquired businesses noted above contributed revenues of $19.4 million and $47.1 million and income from operations of $2.7 million and $4.9 million, inclusive of $1.2 million and $2.9 million of acquired intangible amortization, to the Company for the three and nine months ended September 30, 2013, respectively. The acquired businesses noted above contributed revenues of $2.2 million and $4.9 million and income from operations of $0.4 million and $0.8 million, inclusive of $0.1 million and $0.2 million of acquired intangible amortization, to the Company for the three and nine months ended September 30, 2012, respectively. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
SEGMENT INFORMATION [ABSTRACT] | ||||||||||||||||
SEGMENT INFORMATION | (3) SEGMENT INFORMATION | |||||||||||||||
The Company reports the following four segments: | ||||||||||||||||
the Customer Management Services segment includes the customer experience delivery solutions which integrate innovative technology with highly-trained customer experience professionals to optimize the customer experience across all channels and all stages of the customer lifecycle from an onshore, offshore or work-from-home environment; | ||||||||||||||||
the Customer Growth Services segment includes the technology-enabled sales and marketing business, including certain acquired assets of the digital marketing business of WebMetro; | ||||||||||||||||
the Customer Technology Services segment includes the system integration and hosted and managed technology offerings, including certain acquired assets of TSG; and | ||||||||||||||||
the Customer Strategy Services segment includes the customer experience strategy and data analytics offerings. | ||||||||||||||||
The Company allocates to each segment its portion of corporate operating expenses. All intercompany transactions between the reported segments for the periods presented have been eliminated. | ||||||||||||||||
The following tables present certain financial data by segment (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 217,347 | $ | -312 | $ | 217,035 | $ | 8,322 | $ | 17,944 | ||||||
Customer Growth Services | 25,893 | - | 25,893 | 1,148 | 588 | |||||||||||
Customer Technology Services | 40,712 | -63 | 40,649 | 1,538 | 5,165 | |||||||||||
Customer Strategy Services | 13,418 | - | 13,418 | 455 | 2,264 | |||||||||||
Total | $ | 297,370 | $ | -375 | $ | 296,995 | $ | 11,463 | $ | 25,961 | ||||||
Three Months Ended September 30, 2012 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 224,041 | $ | - | $ | 224,041 | $ | 8,349 | $ | 21,001 | ||||||
Customer Growth Services | 28,200 | - | 28,200 | 1,201 | 2,487 | |||||||||||
Customer Technology Services | 25,219 | -2,876 | 22,343 | 794 | 3,054 | |||||||||||
Customer Strategy Services | 11,913 | -229 | 11,684 | 351 | 819 | |||||||||||
Total | $ | 289,373 | $ | -3,105 | $ | 286,268 | $ | 10,695 | $ | 27,361 | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 661,201 | $ | -943 | $ | 660,258 | $ | 24,716 | $ | 55,140 | ||||||
Customer Growth Services | 71,148 | - | 71,148 | 2,622 | 1,244 | |||||||||||
Customer Technology Services | 111,075 | -220 | 110,855 | 4,543 | 13,882 | |||||||||||
Customer Strategy Services | 33,604 | -795 | 32,809 | 1,400 | -1,632 | |||||||||||
Total | $ | 877,028 | $ | -1,958 | $ | 875,070 | $ | 33,281 | $ | 68,634 | ||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 688,318 | $ | - | $ | 688,318 | $ | 24,811 | $ | 38,438 | ||||||
Customer Growth Services | 75,373 | - | 75,373 | 2,899 | 1,409 | |||||||||||
Customer Technology Services | 76,570 | -3,719 | 72,851 | 2,286 | 11,089 | |||||||||||
Customer Strategy Services | 32,623 | -1,445 | 31,178 | 1,044 | 1,621 | |||||||||||
Total | $ | 872,884 | $ | -5,164 | $ | 867,720 | $ | 31,040 | $ | 52,557 | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Capital Expenditures | ||||||||||||||||
Customer Management Services | $ | 15,108 | $ | 11,752 | $ | 25,504 | $ | 27,171 | ||||||||
Customer Growth Services | 1,274 | 2,385 | 2,025 | 3,428 | ||||||||||||
Customer Technology Services | 1,642 | 1,346 | 3,930 | 2,216 | ||||||||||||
Customer Strategy Services | 148 | 298 | 373 | 444 | ||||||||||||
Total | $ | 18,172 | $ | 15,781 | $ | 31,832 | $ | 33,259 | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Total Assets | ||||||||||||||||
Customer Management Services | $ | 547,320 | $ | 588,627 | ||||||||||||
Customer Growth Services | 85,924 | 54,164 | ||||||||||||||
Customer Technology Services | 155,466 | 148,043 | ||||||||||||||
Customer Strategy Services | 49,659 | 56,339 | ||||||||||||||
Total | $ | 838,369 | $ | 847,173 | ||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Goodwill | ||||||||||||||||
Customer Management Services | $ | 19,981 | $ | 20,288 | ||||||||||||
Customer Growth Services | 29,481 | 24,439 | ||||||||||||||
Customer Technology Services | 39,146 | 38,591 | ||||||||||||||
Customer Strategy Services | 10,087 | 11,361 | ||||||||||||||
Total | $ | 98,695 | $ | 94,679 | ||||||||||||
The following table presents revenue based upon the geographic location where the services are provided (amounts in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | ||||||||||||||||
United States | $ | 137,205 | $ | 119,572 | $ | 401,294 | $ | 342,005 | ||||||||
Philippines | 89,206 | 83,299 | 263,365 | 245,301 | ||||||||||||
Latin America | 43,343 | 47,914 | 132,673 | 142,069 | ||||||||||||
Europe / Middle East / Africa | 18,929 | 22,164 | 52,551 | 93,614 | ||||||||||||
Asia Pacific | 4,504 | 4,955 | 13,087 | 13,126 | ||||||||||||
Canada | 3,808 | 8,364 | 12,100 | 31,605 | ||||||||||||
Total | $ | 296,995 | $ | 286,268 | $ | 875,070 | $ | 867,720 | ||||||||
SIGNIFICANT_CLIENTS_AND_OTHER_
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS | 9 Months Ended |
Sep. 30, 2013 | |
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS [Abstract] | |
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS | (4) SIGNIFICANT CLIENTS and other concentrations |
The Company had one client that contributed in excess of 10% of total revenue for the three and nine months ended September 30, 2013. This client contributed 11.5% and 9.8% of total revenue for the three months ended September 30, 2013 and 2012. This client contributed 11.7% and 9.7% for the nine months ended September 30, 2013 and 2012. This client had an outstanding receivable balance of $29.3 million and $25.8 million as of September 30, 2013 and 2012. | |
The loss of one or more of its significant clients could have a material adverse effect on the Company's business, operating results, or financial condition. The Company does not require collateral from its clients. To limit the Company's credit risk, management performs periodic credit evaluations of its clients and maintains allowances for uncollectible accounts and may require pre-payment for services. Although the Company is impacted by economic conditions in various industry segments, management does not believe significant credit risk existed as of September 30, 2013. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [ABSTRACT] | |||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | (5) GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||
Goodwill consisted of the following (amounts in thousands): | |||||||||||||||||||
31-Dec-12 | Acquisitions | Impairments | Deconsolidation of Subsidiary | Effect of Foreign Currency | 30-Sep-13 | ||||||||||||||
Customer Management Services | $ | 20,288 | $ | - | $ | - | $ | - | $ | -307 | $ | 19,981 | |||||||
Customer Growth Services | 24,439 | 5,042 | - | - | - | 29,481 | |||||||||||||
Customer Technology Services | 38,591 | 478 | - | - | 77 | 39,146 | |||||||||||||
Customer Strategy Services | 11,361 | - | - | -1,274 | - | 10,087 | |||||||||||||
Total | $ | 94,679 | $ | 5,520 | $ | - | $ | -1,274 | $ | -230 | $ | 98,695 | |||||||
The Company performs a goodwill impairment test on at least an annual basis. The Company conducts its annual goodwill impairment assessment during the fourth quarter, or more frequently, if indicators of impairment exist. | |||||||||||||||||||
As of December 2012 and March 31, 2013, the Company had one reporting unit with goodwill of $7.3 million and a calculated fair value which exceeded its carrying value by 4%. | |||||||||||||||||||
During the three months ended June 30, 2013, the Company reorganized the reporting structure of the Customer Strategy Services segment, which is included in the above reporting unit, which necessitated an interim impairment analysis. Therefore, the Company tested the following assets of this reporting unit for impairment: indefinite-lived intangible assets, definite-lived long-lived assets and goodwill. There were no other indicators of impairment in any of the remaining reporting units as of June 30, 2013. | |||||||||||||||||||
The indefinite-lived intangible asset evaluated for impairment consisted of the PRG trade name. The Company calculated the fair value of the trade name using a relief from royalty method based on forecasted revenues sold under the trade name using significant inputs not observable in the market (Level 3 inputs). The valuation assumptions included an estimated royalty rate of 6.0%, a discount rate specific to the trade name of 38.0% and a perpetuity growth rate of 7.0%. Based on the calculated fair value of $5.3 million, the Company recorded impairment expense of $1.1 million in the three months ended June 30, 2013. Changes in the outcome of some or all of these assumptions may impact the calculated fair value of the trade name resulting in a different amount of impairment. | |||||||||||||||||||
Definite-lived long-lived assets consisted of fixed assets and an intangible asset related to the PRG customer relationships. The Company determined that the undiscounted future cash flows would be sufficient to cover the net book value all definite-lived long-lived assets. | |||||||||||||||||||
For the goodwill impairment analysis, the Company calculated the fair value of the PRG reporting unit and compared that to the updated carrying value after the above impairments were recorded and determined that the fair value was not in excess of its carrying value. Key assumptions used in the fair value calculation for goodwill impairment testing include, but were not limited to, a perpetuity growth rate of 7.0% based on the then current inflation rate combined with the GDP growth rate for the reporting unit's geographical region and a discount rate of 26.0%, which is equal to the reporting unit's equity risk premium adjusted for its size and company specific risk factors. Estimated future cash flows under the income approach were based on the Company's internal business plan excluding the results of the deconsolidated subsidiary and adjusted as appropriate for the Company's view of market participant assumptions. The current business plan assumes the occurrence of certain events, such as continued realignment of operations and reduction of general and administrative costs. Significant differences in the outcome of some or all of these assumptions could impact the calculated fair value of this reporting until resulting in a different outcome to goodwill impairment in a future period. | |||||||||||||||||||
Since the fair value of the reporting unit was not in excess of its carrying value, the Company calculated the implied fair value of goodwill and compared that value to the carrying value of goodwill. Implied fair value of goodwill is equal to the fair value of the reporting unit less the recorded value of any net assets and the fair value of intangible assets. Upon completing this assessment, the Company determined that the implied fair value of goodwill significantly exceeded the carrying value of goodwill by over 50%; therefore, there was no impairment of goodwill as of June 30, 2013. | |||||||||||||||||||
During the quarter ended September 30, 2013, the Company assessed whether any indicators of impairment existed for any of the reporting units and concluded there were none. |
DERIVATIVES
DERIVATIVES | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
DERIVATIVES [ABSTRACT] | |||||||||||||||
DERIVATIVES | (6) DERIVATIVES | ||||||||||||||
Cash Flow Hedges | |||||||||||||||
The Company enters into foreign exchange and interest rate related derivatives. Foreign exchange derivatives entered into consist of forward and option contracts to reduce the Company's exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Interest rate derivatives consist of interest rate swaps to reduce the Company's exposure to interest rate fluctuations associated with its variable rate debt. Upon proper qualification, these contracts are designated as cash flow hedges. It is the Company's policy to only enter into derivative contracts with investment grade counterparty financial institutions, and correspondingly, the fair value of derivative assets consider, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company's creditworthiness. As of September 30, 2013, the Company has not experienced, nor does it anticipate, any issues related to derivative counterparty defaults. The following table summarizes the aggregate unrealized net gain or loss in Accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2013 and 2012 (amounts in thousands and net of tax): | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Aggregate unrealized net gain (loss) at beginning of period | $ | -2,644 | $ | 2,964 | $ | 9,559 | $ | -5,852 | |||||||
Add: Net gain/(loss) from change in fair value of cash flow hedges | -630 | 4,945 | -9,332 | 14,040 | |||||||||||
Less: Net (gain)/loss reclassified to earnings from effective hedges | -398 | -591 | -3,899 | -870 | |||||||||||
Aggregate unrealized net gain (loss) at end of period | $ | -3,672 | $ | 7,318 | $ | -3,672 | $ | 7,318 | |||||||
The Company's foreign exchange cash flow hedging instruments as of September 30, 2013 and December 31, 2012 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts unless noted otherwise. | |||||||||||||||
As of September 30, 2013 | Local Currency Notional Amount | U.S. Dollar Notional Amount | % Maturing in the Next 12 Months | Contracts Maturing Through | |||||||||||
Canadian Dollar | 12,750 | $ | 12,415 | 70.6 | % | Jun-15 | |||||||||
Philippine Peso | 15,835,000 | 372,909 | (1) | 37.8 | % | Dec-17 | |||||||||
Mexican Peso | 2,056,000 | 147,144 | 34.5 | % | Dec-17 | ||||||||||
British Pound Sterling | 2,508 | 4,217 | (2) | 100 | % | Jun-14 | |||||||||
New Zealand Dollar | 300 | 235 | 100 | % | Mar-14 | ||||||||||
$ | 536,920 | ||||||||||||||
As of December 31, 2012 | Local Currency Notional Amount | U.S. Dollar Notional Amount | |||||||||||||
Canadian Dollar | 7,750 | $ | 7,407 | ||||||||||||
Philippine Peso | 11,710,000 | 271,970 | (1) | ||||||||||||
Mexican Peso | 1,320,500 | 94,530 | |||||||||||||
British Pound Sterling | 3,518 | 5,575 | (2) | ||||||||||||
New Zealand Dollar | 398 | 300 | |||||||||||||
$ | 379,782 | ||||||||||||||
(1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on September 30, 2013 and December 31, 2012. | |||||||||||||||
(2) Includes contracts to purchase British pound sterling in exchange for Euros, which are translated into equivalent U.S. dollars on September 30, 2013 and December 31, 2012. | |||||||||||||||
The Company's interest rate swap arrangements as of September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||
Notional Amount | Variable Rate Received | Fixed Rate Paid | Contract Commencement Date | Contract Maturity Date | |||||||||||
As of September 30, 2013 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | ||||||||
15 million | 1 - month LIBOR | 3.14 | % | May-12 | May-17 | ||||||||||
$ | 40 million | ||||||||||||||
As of December 31, 2012 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | ||||||||
15 million | 1 - month LIBOR | 3.14 | % | May-12 | May-17 | ||||||||||
$ | 40 million | ||||||||||||||
Fair Value Hedges | |||||||||||||||
The Company enters into foreign exchange forward contracts to economically hedge against foreign currency exchange gains and losses on certain receivables and payables of the Company's foreign operations. Changes in the fair value of derivative instruments designated as fair value hedges are recognized in earnings in Other income (expense), net. As of September 30, 2013 and December 31, 2012 the total notional amount of the Company's forward contracts used as fair value hedges were $247.2 million and $189.3 million, respectively. | |||||||||||||||
Embedded Derivatives | |||||||||||||||
In addition to hedging activities, the Company's foreign subsidiary in Argentina was party to U.S. dollar denominated lease contracts which the Company determined contain embedded derivatives. As such, the Company bifurcated the embedded derivative features of the lease contracts and valued these features as foreign currency derivatives. As of September 30, 2013 and December 31, 2012, the fair value of the embedded derivative was $0.1 million and $0.3 million, respectively, and was included in Other current liabilities and Other long-term liabilities in the accompanying Consolidated Balance Sheets as shown in the table below. | |||||||||||||||
Derivative Valuation and Settlements | |||||||||||||||
The Company's derivatives as of September 30, 2013 and December 31, 2012 were as follows (amounts in thousands): | |||||||||||||||
30-Sep-13 | |||||||||||||||
Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Interest Rate | Foreign Exchange | Leases | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Fair Value | Embedded Derivative | |||||||||||
Fair value and location of derivative in the | |||||||||||||||
Consolidated Balance Sheet: | |||||||||||||||
Prepaids and other current assets | $ | 4,607 | $ | - | $ | 20 | $ | - | |||||||
Other long-term assets | 2,971 | - | - | - | |||||||||||
Other current liabilities | -3,155 | -1,029 | -430 | -147 | |||||||||||
Other long-term liabilities | -8,159 | -1,258 | - | - | |||||||||||
Total fair value of derivatives, net | $ | -3,736 | $ | -2,287 | $ | -410 | $ | -147 | |||||||
31-Dec-12 | |||||||||||||||
Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Interest Rate | Foreign Exchange | Leases | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Fair Value | Embedded Derivative | |||||||||||
Fair value and location of derivative in | |||||||||||||||
the Consolidated Balance Sheet: | |||||||||||||||
Prepaids and other current assets | $ | 11,421 | $ | - | $ | 11 | $ | - | |||||||
Other long-term assets | 7,619 | - | - | - | |||||||||||
Other current liabilities | -157 | -1,032 | -476 | -59 | |||||||||||
Other long-term liabilities | -65 | -1,955 | - | -219 | |||||||||||
Total fair value of derivatives, net | $ | 18,818 | $ | -2,987 | $ | -465 | $ | -278 | |||||||
The effects of derivative instruments on the Consolidated Statements of Comprehensive Income for the three months ended September 30, 2013 and 2012 were as follows (amounts in thousands): | |||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Designated as Hedging Instruments | Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Interest Rate | Foreign Exchange | Interest Rate | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Cash Flow | Cash Flow | |||||||||||
Amount of gain or (loss) recognized in other comprehensive | |||||||||||||||
income (loss) - effective portion, net of tax | $ | -476 | $ | -154 | $ | 5,331 | $ | -386 | |||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||
from accumulated OCI to income - effective portion: | |||||||||||||||
Revenue | $ | 917 | $ | - | $ | 1,367 | $ | - | |||||||
Interest Expense | - | -264 | - | -381 | |||||||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||
from accumulated OCI to income - ineffective portion | |||||||||||||||
and amount excluded from effectiveness testing: | |||||||||||||||
Other income (expense), net | $ | - | $ | - | $ | - | $ | - | |||||||
Three Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Not Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Leases | Foreign Exchange | Leases | |||||||||||
Derivative classification: | Option and Forward Contracts | Fair Value | Embedded Derivative | Option and Forward Contracts | Fair Value | Embedded Derivative | |||||||||
Amount and location of net gain or (loss) | |||||||||||||||
recognized in the Consolidated Statement | |||||||||||||||
of Comprehensive Income (Loss): | |||||||||||||||
Costs of services | $ | - | $ | - | $ | 18 | $ | - | $ | - | $ | 7 | |||
Other income (expense), net | $ | - | $ | -2,373 | $ | - | $ | - | $ | 544 | $ | - | |||
The effects of derivative instruments on the Consolidated Statements of Comprehensive Income for the nine months ended September 30, 2013 and 2012 were as follows (amounts in thousands): | |||||||||||||||
Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Designated as Hedging Instruments | Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Interest Rate | Foreign Exchange | Interest Rate | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Cash Flow | Cash Flow | |||||||||||
Amount of gain or (loss) recognized in other comprehensive | |||||||||||||||
income (loss) - effective portion, net of tax | $ | -9,254 | $ | -78 | $ | 14,902 | $ | -862 | |||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||
from accumulated OCI to income - effective portion: | |||||||||||||||
Revenue | $ | 7,227 | $ | - | $ | 2,016 | $ | - | |||||||
Interest Expense | - | -778 | - | -564 | |||||||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||
from accumulated OCI to income - ineffective portion | |||||||||||||||
and amount excluded from effectiveness testing: | |||||||||||||||
Other income (expense), net | $ | - | $ | - | $ | - | $ | - | |||||||
Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Not Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Leases | Foreign Exchange | Leases | |||||||||||
Derivative classification: | Option and Forward Contracts | Fair Value | Embedded Derivative | Option and Forward Contracts | Fair Value | Embedded Derivative | |||||||||
Amount and location of net gain or (loss) | |||||||||||||||
recognized in the Consolidated Statement | |||||||||||||||
of Comprehensive Income (Loss): | |||||||||||||||
Costs of services | $ | - | $ | - | $ | 131 | $ | - | $ | - | $ | 259 | |||
Other income (expense), net | $ | - | $ | -3,620 | $ | - | $ | - | $ | 4,399 | $ | - | |||
FAIR_VALUE
FAIR VALUE | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FAIR VALUE [Abstract] | ||||||||||||||
FAIR VALUE | (7) FAIR VALUE | |||||||||||||
The authoritative guidance for fair value measurements establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | ||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. | ||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | ||||||||||||||
The following presents information as of September 30, 2013 and December 31, 2012 for the Company's assets and liabilities required to be measured at fair value on a recurring basis, as well as the fair value hierarchy used to determine their fair value. | ||||||||||||||
Accounts Receivable and Payable - The amounts recorded in the accompanying balance sheets approximate fair value because of their short-term nature. | ||||||||||||||
Debt - The Company's debt consists primarily of the Company's Credit Agreement, which permits floating-rate borrowings based upon the current Prime Rate or LIBOR plus a credit spread as determined by the Company's leverage ratio calculation (as defined in the Credit Agreement). As of September 30, 2013 and December 31, 2012, the Company had $118.0 million and $108.0 million, respectively, of borrowings outstanding under the Credit Agreement. During the three and nine months ended September 30, 2013 outstanding borrowings accrued interest at an average rate of 1.4% and 1.5% per annum, respectively, excluding unused commitment fees. The amounts recorded in the accompanying balance sheets approximate fair value due to the variable nature of the debt. | ||||||||||||||
Derivatives - Net derivative assets (liabilities) are measured at fair value on a recurring basis. The portfolio is valued using models based on market observable inputs, including both forward and spot foreign exchange rates, interest rates, implied volatility, and counterparty credit risk, including the ability of each party to execute its obligations under the contract. As of September 30, 2013, credit risk did not materially change the fair value of the Company's derivative contracts. | ||||||||||||||
The following is a summary of the Company's fair value measurements for its net derivative assets (liabilities) as of September 30, 2013 and December 31, 2012 (amounts in thousands): | ||||||||||||||
As of September 30, 2013 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | At Fair Value | |||||||||||
Cash flow hedges | $ | - | $ | -3,736 | $ | - | $ | -3,736 | ||||||
Interest rate swaps | - | -2,287 | - | -2,287 | ||||||||||
Embedded derivatives | - | -147 | - | -147 | ||||||||||
Fair value hedges | - | -410 | - | -410 | ||||||||||
Total net derivative asset (liability) | $ | - | $ | -6,580 | $ | - | $ | -6,580 | ||||||
As of December 31, 2012 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | At Fair Value | |||||||||||
Cash flow hedges | $ | - | $ | 18,818 | $ | - | $ | 18,818 | ||||||
Interest rate swaps | - | -2,987 | - | -2,987 | ||||||||||
Fair value hedges | - | -465 | - | -465 | ||||||||||
Embedded derivatives | - | -278 | - | -278 | ||||||||||
Total net derivative asset (liability) | $ | - | $ | 15,088 | $ | - | $ | 15,088 | ||||||
The following is a summary of the Company's fair value measurements as of September 30, 2013 and December 31, 2012 (amounts in thousands): | ||||||||||||||
As of September 30, 2013 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
Money market investments | $ | - | $ | 240 | $ | - | ||||||||
Derivative instruments, net | - | - | - | |||||||||||
Total assets | $ | - | $ | 240 | $ | - | ||||||||
Liabilities | ||||||||||||||
Deferred compensation plan liability | $ | - | $ | -6,191 | $ | - | ||||||||
Derivative instruments, net | - | -6,580 | - | |||||||||||
Purchase price payable | - | - | -13,779 | |||||||||||
Total liabilities | $ | - | $ | -12,771 | $ | -13,779 | ||||||||
As of December 31, 2012 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
Money market investments | $ | - | $ | 350 | $ | - | ||||||||
Derivative instruments, net | - | 15,088 | - | |||||||||||
Total assets | $ | - | $ | 15,438 | $ | - | ||||||||
Liabilities | ||||||||||||||
Deferred compensation plan liability | $ | - | $ | -5,305 | $ | - | ||||||||
Purchase price payable | - | - | -12,533 | |||||||||||
Total liabilities | $ | - | $ | -5,305 | $ | -12,533 | ||||||||
Money Market Investments — The Company invests in various well-diversified money market funds which are managed by financial institutions. These money market funds are not publicly traded, but have historically been highly liquid. The value of the money market funds are determined by the banks based upon the funds' net asset values (“NAV”). All of the money market funds currently permit daily investments and redemptions at a $1.00 NAV. | ||||||||||||||
Deferred Compensation Plan — The Company maintains a non-qualified deferred compensation plan structured as a Rabbi trust for certain eligible employees. Participants in the deferred compensation plan select from a menu of phantom investment options for their deferral dollars offered by the Company each year, which are based upon changes in value of complementary, defined market investments. The deferred compensation liability represents the combined values of market investments against which participant accounts are tracked. | ||||||||||||||
Purchase Price Payable — The Company recorded purchase price payables related to the acquisitions of iKnowtion, Guidon, TSG and WebMetro. These purchase price payables were recognized at fair value using a discounted cash flow approach and a discount rate of 21.0%, 21.0%, 4.6%, or 5.3%, respectively. These measurements were based on significant inputs not observable in the market. The Company will record interest expense each period using the effective interest method until the future value of these purchase price payables reaches their expected future value of $14.8 million. Interest expense related to all recorded purchase price payables is included in Interest expense in the Consolidated Statements of Comprehensive Income. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2013 | |
INCOME TAXES [ABSTRACT] | |
INCOME TAXES | (8) INCOME TAXES |
The Company accounts for income taxes in accordance with the accounting literature for income taxes, which requires recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the Consolidated Financial Statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using tax rates in effect for the year in which the differences are expected to reverse. Quarterly, the Company assesses the likelihood that its net deferred tax assets will be recovered. Based on the weight of all available evidence, both positive and negative, the Company records a valuation allowance against deferred tax assets when it is more-likely-than-not that a future tax benefit will not be realized. | |
As of September 30, 2013, the Company had $55.3 million of gross deferred tax assets (after a $21.3 million valuation allowance) and net deferred tax assets (after deferred tax liabilities) of $52.8 million related to the U.S. and international tax jurisdictions whose recoverability is dependent upon future profitability which the Company believes is more-likely-than-not to occur. | |
The effective tax rate for the three and nine months ended September 30, 2013 was 24.9% and 20.0%, respectively. The effective tax rate during these periods in 2013 was influenced by the distribution of earnings in international jurisdictions currently under an income tax holiday and the $5.4 million and $1.8 million, respectively, in restructuring and impairment expenses and the income tax benefit related to these incremental expenses. The effective tax rate for the three and nine months ended September 30, 2012 was (13.8)% and (6.1)%, respectively. The effective tax rate during these periods in 2012 was influenced by the distribution of earnings in international jurisdictions currently under an income tax holiday, the $2.6 million and $23.7 million in restructuring and impairment expenses and their related income tax benefit, the benefit related to Australia transfer pricing and the release of an uncertain tax position. | |
The Company's U.S. income tax returns filed for the tax years ending December 31, 2010 to present, remain open tax years subject to IRS audit. The Company is currently under audit of income taxes in Canada. Although the outcome of examinations by taxing authorities are always uncertain, it is the opinion of management that the resolution of these audits will not have a material effect on the Company's Consolidated Financial Statements. |
RESTRUCTURING_CHARGES_AND_IMPA
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | ||||||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (9) RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | |||||||||||||
Restructuring Charges | ||||||||||||||
During the three and nine months ended September 30, 2013 and 2012, the Company undertook a number of restructuring activities primarily associated with reductions in the Company's capacity and workforce in its Customer Management Services, Customer Technology Services and Customer Strategy Services segments to better align the capacity and workforce with current business needs. | ||||||||||||||
During the second quarter of 2012, the Company made the decision to cease operations in Spain and terminated the contracts with its clients. The Company notified the employees and commenced severance procedures as required under Spanish law. The Company recorded $14.7 million of severance and $0.4 million of center closure expenses for the year ended December 31, 2012. As of the third quarter of 2013, $14.9 million was paid and the remaining $0.2 million was included in Other accrued expenses in the Consolidated Balance Sheets as of September 30, 2013. | ||||||||||||||
A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2013 and 2012, respectively, is as follows (amounts in thousands): | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Reduction in force | ||||||||||||||
Customer Management Services | $ | 628 | $ | 2,678 | $ | 3,614 | $ | 20,642 | ||||||
Customer Growth Services | 7 | 62 | 7 | 198 | ||||||||||
Customer Technology Services | 73 | 5 | 73 | 60 | ||||||||||
Customer Strategy Services | - | - | 189 | - | ||||||||||
Total | $ | 708 | $ | 2,745 | $ | 3,883 | $ | 20,900 | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Facility exit charges | ||||||||||||||
Customer Management Services | $ | 50 | $ | -305 | $ | 298 | $ | -206 | ||||||
Customer Growth Services | - | - | - | - | ||||||||||
Customer Technology Services | - | - | - | - | ||||||||||
Customer Strategy Services | - | - | - | - | ||||||||||
Total | $ | 50 | $ | -305 | $ | 298 | $ | -206 | ||||||
A rollforward of the activity in the Company's restructuring accruals is as follows (amounts in thousands): | ||||||||||||||
Closure of Delivery Centers | Reduction in Force | Total | ||||||||||||
Balance as of December 31, 2012 | $ | - | $ | 4,079 | $ | 4,079 | ||||||||
Expense | 298 | 4,098 | 4,396 | |||||||||||
Payments | -298 | -5,762 | -6,060 | |||||||||||
Change in estimates | - | -215 | -215 | |||||||||||
Balance as of September 30, 2013 | $ | - | $ | 2,200 | $ | 2,200 | ||||||||
The remaining restructuring accruals are expected to be paid during 2013 and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheets. | ||||||||||||||
Impairment Losses | ||||||||||||||
During each of the periods presented, the Company evaluated the recoverability of its leasehold improvement assets at certain delivery centers. An asset is considered to be impaired when the anticipated undiscounted future cash flows of an asset group are estimated to be less than the asset group's carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During the three and nine months ended September 30, 2013, the Company recognized zero and $0.1 million, respectively, of losses related to leasehold improvement assets in the Customer Management Services segment. During the three and nine months ended September 30, 2012, the Company recognized $0.2 million and $1.2 million, respectively of losses related to leasehold improvement assets in the Customer Management Services segment. | ||||||||||||||
During the second quarter of 2013, the Company recorded an impairment charge of $1.1 million related to the PRG trade name intangible asset within the Customer Strategy Services segment. See Note 5 for further information. This expense was included in the Impairment losses in the Consolidated Statements of Comprehensive Income. | ||||||||||||||
During the first quarter of 2012, the Company rebranded its Direct Alliance Corporation (“DAC”) subsidiary to RevanaTM, thus the $1.8 million DAC trade name was impaired as of March 31, 2012. This expense was included in the Impairment losses in the Consolidated Statements of Comprehensive Income. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (10) COMMITMENTS AND CONTINGENCIES |
Credit Facility | |
On June 3, 2013, the Company entered into a $700.0 million, five-year, multi-currency revolving credit facility (the “Credit Agreement”) with a syndicate of lenders which includes an accordion feature that permits the Company to request an increase in total commitments up to $1.0 billion, under certain conditions. Wells Fargo Securities, LLC, KeyBank National Association, Bank of America Merrill Lynch, BBVA Compass and HSBC Bank USA, National Association served as Joint Lead Arrangers. The Credit Agreement amends and restates in its entirety the Company's prior credit facility entered into during 2010 and amended in 2012. | |
The Credit Agreement provides for a secured revolving credit facility that matures on June 3, 2018 with an initial maximum aggregate commitment of $700.0 million. At the Company's discretion, direct borrowing options under the Credit Agreement include (i) Eurodollar loans with one, two, three, and six month terms, and/or (ii) overnight base rate loans. The Credit Agreement also provides for a sub-limit for loans or letters of credit in both U.S. dollars and certain foreign currencies, with direct foreign subsidiary borrowing capabilities up to 50% of the total commitment amount. The Company may increase the maximum aggregate commitment under the Credit Agreement to $1.0 billion if certain conditions are satisfied, including that the Company is not in default under the Credit Agreement at the time of the increase and that the Company obtains the commitment of the lenders participating in the increase. | |
Base rate loans bear interest at a rate equal to the greatest of (i) Wells Fargo's prime rate, (ii) one half of 1% in excess of the federal funds effective rate, and (iii) 1.25% in excess of the one month London Interbank Offered Rate (“LIBOR”), in each case adding a margin based upon the Company's leverage ratio. Eurodollar loans bear interest based upon LIBOR, plus a margin based upon the Company's leverage ratio. Alternate loans bear interest at rates applicable to their respective currencies. Letter of credit fees are one eighth of 1% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for Eurodollar loans. Commitment fees are payable to the Lenders in an amount equal to the unused portion of the credit facility and are based upon the Company's leverage ratio. | |
Indebtedness under the Credit Agreement is guaranteed by certain of the Company's present and future domestic subsidiaries. Indebtedness under the Credit Agreement and the related guarantees are secured by security interests (subject to permitted liens) in the U.S. accounts receivable and cash of the Company and certain of its domestic subsidiaries and may be secured by tangible assets of the Company and such domestic subsidiaries if borrowings by foreign subsidiaries exceed $100.0 million and the leverage ratio is greater than 3.00 to 1.00. The Company also pledged 65% of the voting stock and 100% of the non-voting stock of certain of the Company's material foreign subsidiaries and may pledge 65% of the voting stock and 100% of the non-voting stock of the Company's other foreign subsidiaries. | |
The Credit Agreement, which includes customary financial covenants, may be used for general corporate purposes, including working capital, purchases of treasury stock and acquisition financing. As of September 30, 2013, the Company was in compliance with all financial covenants. | |
The Company primarily utilizes its Credit Agreement to fund working capital, general operations, stock repurchases and other strategic activities, such as the acquisitions described in Note 2. As of September 30, 2013 and December 31, 2012, the Company had borrowings of $118.0 million and $108.0 million, respectively, under its credit facilities, and its average daily utilization was $240.9 million and $144.4 million for the nine months ended September 30, 2013 and 2012, respectively. After consideration for issued letters of credit under the Credit Agreement, totaling $3.5 million, the Company's remaining borrowing capacity was $578.5 million as of September 30, 2013. | |
Letters of Credit | |
As of September 30, 2013, outstanding letters of credit under the Credit Agreement totaled $3.5 million and primarily guaranteed workers' compensation and other insurance related obligations. As of September 30, 2013, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $0.6 million. | |
Guarantees | |
Indebtedness under the Credit Agreement is guaranteed by certain of the Company's present and future domestic subsidiaries. | |
Legal Proceedings | |
From time to time, the Company has been involved in legal actions, both as plaintiff and defendant, which arise in the ordinary course of business. Accruals for legal actions have been provided for to the extent that losses are deemed both probable and estimable. Although the ultimate outcome of these claims or lawsuits cannot be ascertained, on the basis of currently available information and advice received from counsel, as appropriate, the Company believes that the disposition or ultimate resolution of such legal actions will not have a material adverse effect on its financial position, cash flows or results of operations. During the quarter ended September 30, 2013, there were no material changes to the legal proceedings described in our Annual Report on Form 10-K for the year ended December 31, 2012. |
NONCONTROLLING_INTEREST
NONCONTROLLING INTEREST | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
NONCONTROLLING INTEREST [Abstract] | |||||||
NONCONTROLLING INTEREST | (11) NONCONTROLLING INTEREST | ||||||
The following table reconciles equity attributable to noncontrolling interest (amounts in thousands): | |||||||
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Noncontrolling interest, January 1 | $ | 14,045 | $ | 11,260 | |||
Acquisition of noncontrolling interest | - | 941 | |||||
Net income attributable to noncontrolling interest | 2,575 | 3,152 | |||||
Dividends distributed to noncontrolling interest | -3,420 | -1,440 | |||||
Deconsolidation of a subsidiary | -121 | - | |||||
Purchase of remaining interest in subsidiary | -4,140 | - | |||||
Foreign currency translation adjustments | -104 | 113 | |||||
Equity-based compensation expense | 25 | - | |||||
Noncontrolling interest, September 30 | $ | 8,860 | $ | 14,026 | |||
On September 18, 2013, the Company acquired the remaining 20% interest in Peppers & Rogers Group for $425 thousand. In connection with this transaction the remaining Noncontrolling interest balance of $4.1 million was reclassified to Additional paid-in-capital in the Consolidated Balance Sheet as of September 30, 2013. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | (12) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||
In 2013, the Company adopted new accounting guidance that requires an entity to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The following table presents changes in the accumulated balance for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) (amounts in thousands): | ||||||||||||||
Foreign Currency Translation Adjustment | Derivative Valuation, Net of Tax | Other, Net of Tax | Totals | |||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2012 | $ | 15,673 | $ | 9,559 | $ | -2,251 | $ | 22,981 | ||||||
Other comprehensive income before reclassifications | -18,087 | -9,332 | 4 | -27,415 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | -3,899 | 447 | -3,452 | ||||||||||
Net current period other comprehensive income (loss) | -18,087 | -13,231 | 451 | -30,867 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at September 30, 2013 | $ | -2,414 | $ | -3,672 | $ | -1,800 | $ | -7,886 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2011 | $ | 3,156 | $ | -5,852 | $ | -2,778 | $ | -5,474 | ||||||
Other comprehensive income (loss) before reclassifications | 10,494 | 14,040 | 277 | 24,811 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | -870 | 656 | -214 | ||||||||||
Net current period other comprehensive income (loss) | 10,494 | 13,170 | 933 | 24,597 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at September 30, 2012 | $ | 13,650 | $ | 7,318 | $ | -1,845 | $ | 19,123 | ||||||
The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the statement of comprehensive income (loss) (in thousands): | ||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | Statement of Comprehensive Income (Loss) Classification | ||||||||||||
Derivative valuation | ||||||||||||||
Gain on foreign currency forward | ||||||||||||||
exchange contracts | $ | 917 | $ | 1,367 | Revenue | |||||||||
Loss on interest rate swaps | -264 | -380 | Interest expense | |||||||||||
Tax effect | -255 | -396 | Provision for income taxes | |||||||||||
$ | 398 | $ | 591 | Net income (loss) | ||||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -156 | $ | -235 | Cost of services | |||||||||
Tax effect | 9 | 13 | Provision for income taxes | |||||||||||
$ | -147 | $ | -222 | Net income (loss) | ||||||||||
For the Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | Statement of Comprehensive Income (Loss) Classification | ||||||||||||
Derivative valuation | ||||||||||||||
Gain (loss) on foreign currency forward | ||||||||||||||
exchange contracts | $ | 7,227 | $ | 2,016 | Revenue | |||||||||
Loss on interest rate swaps | -778 | -564 | Interest expense | |||||||||||
Tax effect | -2,550 | -582 | Provision for income taxes | |||||||||||
$ | 3,899 | $ | 870 | Net income (loss) | ||||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -473 | $ | -695 | Cost of services | |||||||||
Tax effect | 26 | 39 | Provision for income taxes | |||||||||||
$ | -447 | $ | -656 | Net income (loss) | ||||||||||
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
NET INCOME PER SHARE [Abstract] | |||||||||||
NET INCOME PER SHARE | (13) NET INCOME PER SHARE | ||||||||||
The following table sets forth the computation of basic and diluted shares for the periods indicated (amounts in thousands): | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Shares used in basic earnings per share calculation | 50,732 | 54,093 | 51,643 | 55,233 | |||||||
Effect of dilutive securities: | |||||||||||
Stock options | 425 | 377 | 412 | 378 | |||||||
Restricted stock units | 521 | 435 | 444 | 380 | |||||||
Performance-based restricted stock units | - | - | - | - | |||||||
Total effects of dilutive securities | 946 | 812 | 856 | 758 | |||||||
Shares used in dilutive earnings per share calculation | 51,678 | 54,905 | 52,499 | 55,991 | |||||||
For the three months ended September 30, 2013 and 2012, options to purchase 0.1 million and 0.1 million shares of common stock, respectively, were outstanding, but not included in the computation of diluted net income per share because the exercise price exceeded the value of the shares and the effect would have been anti–dilutive. For the nine months ended September 30, 2013 and 2012, options to purchase 0.1 million and 0.1 million shares of common stock, respectively, were outstanding, but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the three months ended September 30, 2013 and 2012, restricted stock units (“RSUs”) of 0.2 million and 0.7 million, respectively, were outstanding, but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the nine months ended September 30, 2013 and 2012, RSUs of 0.2 million and 0.8 million, respectively, were outstanding, but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. |
EQUITYBASED_COMPENSATION_PLANS
EQUITY-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2013 | |
EQUITY-BASED COMPENSATION PLANS [Abstract] | |
EQUITY-BASED COMPENSATION PLANS | (14) EQUITY-BASED COMPENSATION PLANS |
All equity–based awards to employees are recognized in the Consolidated Statements of Comprehensive Income at the fair value of the award on the grant date. During the three and nine months ended September 30, 2013 and 2012, the Company recognized total compensation expense of $3.3 million and $9.8 million and $3.4 million and $10.3 million, respectively. Of the total compensation expense, $0.6 million and $1.6 million was recognized in Cost of services and $2.7 million and $8.3 million was recognized in Selling, general and administrative during the three and nine months ended September 30, 2013. During the three and nine months ended September 30, 2012, the Company recognized total compensation expense of $0.5 million and $1.5 million in Cost of services and $2.9 million and $8.8 million was recognized in Selling, general and administrative. | |
Stock Options | |
As of September 30, 2013, there was approximately $0.4 million of total unrecognized compensation cost (including the impact of expected forfeitures) related to unvested option arrangements granted under the Company's equity plans. The Company recognizes compensation expense straight–line over the vesting term of the option grant. The Company recognized compensation expense related to stock options of approximately $0.1 million and $0.1 million for the three months ended September 30, 2013 and 2012, respectively. The Company recognized compensation expense related to stock options of approximately $0.3 million and $0.4 million for the nine months ended September 30, 2013 and 2012, respectively. | |
Restricted Stock Unit Grants | |
During the nine months ended September 30, 2013 and 2012, the Company granted 755,835 and 637,042 RSUs, respectively, to new and existing employees, which vest in equal installments over four or five years. The Company recognized compensation expense related to RSUs of $3.1 million and $9.4 million for the three and nine months ended September 30, 2013, respectively. The Company recognized compensation expense related to RSUs of $3.3 million and $9.9 million for the three and nine months ended September 30, 2012, respectively. As of September 30, 2013, there was approximately $28.6 million of total unrecognized compensation cost (including the impact of expected forfeitures) related to RSUs granted under the Company's equity plans. | |
As of September 30, 2013 and 2012, the Company had performance-based RSUs outstanding that vest based on the Company achieving specified revenue and operating income performance targets. The Company determined that it was not probable these performance targets would be met; therefore, no expense was recognized for the three and nine months ended September 30, 2013 or 2012. |
DECONSOLIDATION_OF_SUBSIDIARY
DECONSOLIDATION OF SUBSIDIARY | 9 Months Ended |
Sep. 30, 2013 | |
DECONSOLIDATION OF SUBSIDIARY [Abstract] | |
DECONSOLIDATION OF SUBSIDIARY | (15) DECONSOLIDATION OF SUBSIDIARY |
During the second quarter of 2013, the Company concluded that it no longer had controlling influence over Peppers & Rogers Gulf WLL (“PRG Kuwait”), a once consolidated subsidiary in the Customer Strategy Services segment, because the Company was no longer confident that it could exercise its beneficial ownership rights. Upon deconsolidation of PRG Kuwait, the Company wrote off all PRG Kuwait assets and liabilities resulting in a loss of $3.7 million which was recorded in Loss on deconsolidation of subsidiary in the Consolidated Statements of Comprehensive Income. The $3.7 million loss included $1.3 million of goodwill allocated to PRG Kuwait immediately prior to deconsolidation based on PRG Kuwait's relative fair value of the Customer Strategy Services segment. The retained noncontrolling interest was recorded at fair value which was determined to be zero as the Company does not believe it will recognize any financial benefit from this interest. |
OVERVIEW_AND_BASIS_OF_PRESENTA1
OVERVIEW AND BASIS OF PRESENTATION (POLICIES) | 9 Months Ended |
Sep. 30, 2013 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
Overview | Overview |
TeleTech Holdings, Inc. and its subsidiaries (“TeleTech” or the “Company”) is a geographically diverse global provider of technology-enabled, fully-integrated customer experience management solutions for Global 1000 clients and their customers. A global provider of data-driven, technology-enabled business process outsourcing, technology integration, consulting and customer management, and hosted and managed technology services. TeleTech's 39,000 employees serve clients in the automotive, communication, financial services, government, healthcare, logistics, media and entertainment, retail, technology, transportation and travel industries via operations in the U.S., Argentina, Australia, Belgium, Brazil, Canada, China, Costa Rica, France, Germany, Ghana, Italy, Lebanon, Mexico, New Zealand, the Philippines, Singapore, South Africa, Spain, Thailand, Turkey, the United Arab Emirates, and the United Kingdom. | |
Basis Of Presentation | Basis of Presentation |
The Consolidated Financial Statements are comprised of the accounts of TeleTech, its wholly owned subsidiaries, its 55% interest in Percepta, LLC, and its 80% interest in iKnowtion, LLC. All intercompany balances and transactions have been eliminated in consolidation. | |
The accompanying unaudited Consolidated Financial Statements do not include all of the disclosures required by accounting principles generally accepted in the U.S. (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company and the consolidated results of operations and comprehensive income (loss) and the consolidated cash flows of the Company. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | |
These unaudited Consolidated Financial Statements should be read in conjunction with the Company's audited Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. | |
Use of Estimates | Use of Estimates |
The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, self-insurance reserves, litigation reserves, restructuring reserves, allowance for doubtful accounts and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. In the three months ended June 30, 2012, the Company recorded a change in estimate which resulted in a decrease of $4.6 million to employee related expenses in connection with an authoritative ruling in Spain related to the legally required cost of living adjustment for employees' salaries for the years 2010, 2011 and 2012. | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
In February 2013, the FASB issued new accounting guidance that improves the reporting of reclassifications out of accumulated other comprehensive income. This new guidance requires entities to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income when applicable or to cross-reference the reclassifications with other disclosures that provide additional detail about the reclassifications made when the reclassifications are not made to net income. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2012. The Company's adoption of this guidance did not have a material impact on the Company's financial position, results of operations, or cash flows since it was an enhancement to current required disclosures. |
ACQUISITIONS_TABLES
ACQUISITIONS (TABLES) | 0 Months Ended | 2 Months Ended | 12 Months Ended | 9 Months Ended | 7 Months Ended | ||||||||||||||||||
Jan. 02, 2012 | Feb. 27, 2012 | Dec. 31, 2012 | Oct. 04, 2012 | Aug. 09, 2013 | |||||||||||||||||||
Onstate [Member] | Iknowtion [Member] | Technology Solutions Group [Member] | Guidon [Member] | WebMetro [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Schedule of Assets Acquired and Liabilities Assumed | Acquisition Date Fair Value | Acquisition Date Fair Value | Preliminary Estimate of Acquisition Date Fair Value | Acquisition Date Fair Value | Preliminary Estimate of Acquisition Date Fair Value | ||||||||||||||||||
Cash | $ | 36 | Cash | $ | 1,337 | Cash | $ | 1,995 | Cash | $ | 376 | Cash | $ | 6,423 | |||||||||
Accounts Receivable | 68 | Accounts Receivable | 1,792 | Accounts receivable | 4,871 | Accounts Receivable | 1,375 | Accounts receivable, net | 3,692 | ||||||||||||||
Property, plant and equipment | 33 | Property, plant and equipment | 161 | Prepaid assets - cost deferrals | 3,665 | Property, plant and equipment | 49 | Other assets | 215 | ||||||||||||||
Software | 2,100 | Other assets | 90 | Property, plant and equipment | 583 | Other assets | 228 | Property, plant and equipment | 887 | ||||||||||||||
Goodwill | 1,132 | Customer relationships | 1,400 | Other assets | 1,886 | Customer relationships | 2,490 | Customer relationships | 6,120 | ||||||||||||||
3,369 | Goodwill | 447 | Customer relationships | 15,300 | Goodwill | 3,619 | Software | 3,700 | |||||||||||||||
5,227 | Noncompete agreements | 2,300 | 8,137 | Goodwill | 5,042 | ||||||||||||||||||
Accounts payable | 93 | Trade name | 1,100 | 26,079 | |||||||||||||||||||
Accounts payable | 18 | Consulting services backlog | 800 | Accounts payable | 202 | ||||||||||||||||||
Total purchase price | $ | 3,276 | Accrued expenses | 19 | Goodwill | 19,421 | Accrued expenses | 122 | Accounts payable | 7,232 | |||||||||||||
Other | 164 | 51,921 | Other | 65 | Accrued expenses | 422 | |||||||||||||||||
201 | 389 | Customer deposits | 1,316 | ||||||||||||||||||||
Accounts payable | 3,091 | Capital lease obligation | 444 | ||||||||||||||||||||
Noncontrolling interest | 941 | Accrued expenses | 1,539 | Total purchase price | $ | 7,748 | Other | 274 | |||||||||||||||
Deferred revenue | 7,295 | 9,688 | |||||||||||||||||||||
Total purchase price | $ | 4,085 | 11,925 | ||||||||||||||||||||
Total purchase price | $ | 16,391 | |||||||||||||||||||||
Total purchase price | $ | 39,996 | |||||||||||||||||||||
SEGMENT_INFORMATION_TABLES
SEGMENT INFORMATION (TABLES) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
SEGMENT INFORMATION [ABSTRACT] | ||||||||||||||||
Schedule of Segment Selected Financial Data | Three Months Ended September 30, 2013 | |||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 217,347 | $ | -312 | $ | 217,035 | $ | 8,322 | $ | 17,944 | ||||||
Customer Growth Services | 25,893 | - | 25,893 | 1,148 | 588 | |||||||||||
Customer Technology Services | 40,712 | -63 | 40,649 | 1,538 | 5,165 | |||||||||||
Customer Strategy Services | 13,418 | - | 13,418 | 455 | 2,264 | |||||||||||
Total | $ | 297,370 | $ | -375 | $ | 296,995 | $ | 11,463 | $ | 25,961 | ||||||
Three Months Ended September 30, 2012 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 224,041 | $ | - | $ | 224,041 | $ | 8,349 | $ | 21,001 | ||||||
Customer Growth Services | 28,200 | - | 28,200 | 1,201 | 2,487 | |||||||||||
Customer Technology Services | 25,219 | -2,876 | 22,343 | 794 | 3,054 | |||||||||||
Customer Strategy Services | 11,913 | -229 | 11,684 | 351 | 819 | |||||||||||
Total | $ | 289,373 | $ | -3,105 | $ | 286,268 | $ | 10,695 | $ | 27,361 | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 661,201 | $ | -943 | $ | 660,258 | $ | 24,716 | $ | 55,140 | ||||||
Customer Growth Services | 71,148 | - | 71,148 | 2,622 | 1,244 | |||||||||||
Customer Technology Services | 111,075 | -220 | 110,855 | 4,543 | 13,882 | |||||||||||
Customer Strategy Services | 33,604 | -795 | 32,809 | 1,400 | -1,632 | |||||||||||
Total | $ | 877,028 | $ | -1,958 | $ | 875,070 | $ | 33,281 | $ | 68,634 | ||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 688,318 | $ | - | $ | 688,318 | $ | 24,811 | $ | 38,438 | ||||||
Customer Growth Services | 75,373 | - | 75,373 | 2,899 | 1,409 | |||||||||||
Customer Technology Services | 76,570 | -3,719 | 72,851 | 2,286 | 11,089 | |||||||||||
Customer Strategy Services | 32,623 | -1,445 | 31,178 | 1,044 | 1,621 | |||||||||||
Total | $ | 872,884 | $ | -5,164 | $ | 867,720 | $ | 31,040 | $ | 52,557 | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Capital Expenditures | ||||||||||||||||
Customer Management Services | $ | 15,108 | $ | 11,752 | $ | 25,504 | $ | 27,171 | ||||||||
Customer Growth Services | 1,274 | 2,385 | 2,025 | 3,428 | ||||||||||||
Customer Technology Services | 1,642 | 1,346 | 3,930 | 2,216 | ||||||||||||
Customer Strategy Services | 148 | 298 | 373 | 444 | ||||||||||||
Total | $ | 18,172 | $ | 15,781 | $ | 31,832 | $ | 33,259 | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Total Assets | ||||||||||||||||
Customer Management Services | $ | 547,320 | $ | 588,627 | ||||||||||||
Customer Growth Services | 85,924 | 54,164 | ||||||||||||||
Customer Technology Services | 155,466 | 148,043 | ||||||||||||||
Customer Strategy Services | 49,659 | 56,339 | ||||||||||||||
Total | $ | 838,369 | $ | 847,173 | ||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Goodwill | ||||||||||||||||
Customer Management Services | $ | 19,981 | $ | 20,288 | ||||||||||||
Customer Growth Services | 29,481 | 24,439 | ||||||||||||||
Customer Technology Services | 39,146 | 38,591 | ||||||||||||||
Customer Strategy Services | 10,087 | 11,361 | ||||||||||||||
Total | $ | 98,695 | $ | 94,679 | ||||||||||||
Schedule of Revenue by Geographic Area | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | ||||||||||||||||
United States | $ | 137,205 | $ | 119,572 | $ | 401,294 | $ | 342,005 | ||||||||
Philippines | 89,206 | 83,299 | 263,365 | 245,301 | ||||||||||||
Latin America | 43,343 | 47,914 | 132,673 | 142,069 | ||||||||||||
Europe / Middle East / Africa | 18,929 | 22,164 | 52,551 | 93,614 | ||||||||||||
Asia Pacific | 4,504 | 4,955 | 13,087 | 13,126 | ||||||||||||
Canada | 3,808 | 8,364 | 12,100 | 31,605 | ||||||||||||
Total | $ | 296,995 | $ | 286,268 | $ | 875,070 | $ | 867,720 | ||||||||
GOODWILL_TABLES
GOODWILL (TABLES) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [ABSTRACT] | |||||||||||||||||||
Schedule of Goodwill Rollforward | 31-Dec-12 | Acquisitions | Impairments | Deconsolidation of Subsidiary | Effect of Foreign Currency | 30-Sep-13 | |||||||||||||
Customer Management Services | $ | 20,288 | $ | - | $ | - | $ | - | $ | -307 | $ | 19,981 | |||||||
Customer Growth Services | 24,439 | 5,042 | - | - | - | 29,481 | |||||||||||||
Customer Technology Services | 38,591 | 478 | - | - | 77 | 39,146 | |||||||||||||
Customer Strategy Services | 11,361 | - | - | -1,274 | - | 10,087 | |||||||||||||
Total | $ | 94,679 | $ | 5,520 | $ | - | $ | -1,274 | $ | -230 | $ | 98,695 | |||||||
DERIVATIVES_TABLES
DERIVATIVES (TABLES) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
DERIVATIVES [ABSTRACT] | |||||||||||||||
Schedule of Cash Flow Hedges OCI Rollforward | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Aggregate unrealized net gain (loss) at beginning of period | $ | -2,644 | $ | 2,964 | $ | 9,559 | $ | -5,852 | |||||||
Add: Net gain/(loss) from change in fair value of cash flow hedges | -630 | 4,945 | -9,332 | 14,040 | |||||||||||
Less: Net (gain)/loss reclassified to earnings from effective hedges | -398 | -591 | -3,899 | -870 | |||||||||||
Aggregate unrealized net gain (loss) at end of period | $ | -3,672 | $ | 7,318 | $ | -3,672 | $ | 7,318 | |||||||
Schedule of Notional Amounts of Outstanding Cash Flow Hedges | As of September 30, 2013 | Local Currency Notional Amount | U.S. Dollar Notional Amount | % Maturing in the Next 12 Months | Contracts Maturing Through | ||||||||||
Canadian Dollar | 12,750 | $ | 12,415 | 70.6 | % | Jun-15 | |||||||||
Philippine Peso | 15,835,000 | 372,909 | (1) | 37.8 | % | Dec-17 | |||||||||
Mexican Peso | 2,056,000 | 147,144 | 34.5 | % | Dec-17 | ||||||||||
British Pound Sterling | 2,508 | 4,217 | (2) | 100 | % | Jun-14 | |||||||||
New Zealand Dollar | 300 | 235 | 100 | % | Mar-14 | ||||||||||
$ | 536,920 | ||||||||||||||
As of December 31, 2012 | Local Currency Notional Amount | U.S. Dollar Notional Amount | |||||||||||||
Canadian Dollar | 7,750 | $ | 7,407 | ||||||||||||
Philippine Peso | 11,710,000 | 271,970 | (1) | ||||||||||||
Mexican Peso | 1,320,500 | 94,530 | |||||||||||||
British Pound Sterling | 3,518 | 5,575 | (2) | ||||||||||||
New Zealand Dollar | 398 | 300 | |||||||||||||
$ | 379,782 | ||||||||||||||
(1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on September 30, 2013 and December 31, 2012. | |||||||||||||||
(2) Includes contracts to purchase British pound sterling in exchange for Euros, which are translated into equivalent U.S. dollars on September 30, 2013 and December 31, 2012. | |||||||||||||||
Schedule of Interest Rate Swaps | Notional Amount | Variable Rate Received | Fixed Rate Paid | Contract Commencement Date | Contract Maturity Date | ||||||||||
As of September 30, 2013 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | ||||||||
15 million | 1 - month LIBOR | 3.14 | % | May-12 | May-17 | ||||||||||
$ | 40 million | ||||||||||||||
As of December 31, 2012 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | ||||||||
15 million | 1 - month LIBOR | 3.14 | % | May-12 | May-17 | ||||||||||
$ | 40 million | ||||||||||||||
Schedule of Derivatives Instruments on Balance Sheet | 30-Sep-13 | ||||||||||||||
Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Interest Rate | Foreign Exchange | Leases | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Fair Value | Embedded Derivative | |||||||||||
Fair value and location of derivative in the | |||||||||||||||
Consolidated Balance Sheet: | |||||||||||||||
Prepaids and other current assets | $ | 4,607 | $ | - | $ | 20 | $ | - | |||||||
Other long-term assets | 2,971 | - | - | - | |||||||||||
Other current liabilities | -3,155 | -1,029 | -430 | -147 | |||||||||||
Other long-term liabilities | -8,159 | -1,258 | - | - | |||||||||||
Total fair value of derivatives, net | $ | -3,736 | $ | -2,287 | $ | -410 | $ | -147 | |||||||
31-Dec-12 | |||||||||||||||
Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Interest Rate | Foreign Exchange | Leases | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Fair Value | Embedded Derivative | |||||||||||
Fair value and location of derivative in | |||||||||||||||
the Consolidated Balance Sheet: | |||||||||||||||
Prepaids and other current assets | $ | 11,421 | $ | - | $ | 11 | $ | - | |||||||
Other long-term assets | 7,619 | - | - | - | |||||||||||
Other current liabilities | -157 | -1,032 | -476 | -59 | |||||||||||
Other long-term liabilities | -65 | -1,955 | - | -219 | |||||||||||
Total fair value of derivatives, net | $ | 18,818 | $ | -2,987 | $ | -465 | $ | -278 | |||||||
Schedule of Derivative Impact on Statement of Comprehensive Income | Three Months Ended September 30, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Designated as Hedging Instruments | Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Interest Rate | Foreign Exchange | Interest Rate | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Cash Flow | Cash Flow | |||||||||||
Amount of gain or (loss) recognized in other comprehensive | |||||||||||||||
income (loss) - effective portion, net of tax | $ | -476 | $ | -154 | $ | 5,331 | $ | -386 | |||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||
from accumulated OCI to income - effective portion: | |||||||||||||||
Revenue | $ | 917 | $ | - | $ | 1,367 | $ | - | |||||||
Interest Expense | - | -264 | - | -381 | |||||||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||
from accumulated OCI to income - ineffective portion | |||||||||||||||
and amount excluded from effectiveness testing: | |||||||||||||||
Other income (expense), net | $ | - | $ | - | $ | - | $ | - | |||||||
Three Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Not Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Leases | Foreign Exchange | Leases | |||||||||||
Derivative classification: | Option and Forward Contracts | Fair Value | Embedded Derivative | Option and Forward Contracts | Fair Value | Embedded Derivative | |||||||||
Amount and location of net gain or (loss) | |||||||||||||||
recognized in the Consolidated Statement | |||||||||||||||
of Comprehensive Income (Loss): | |||||||||||||||
Costs of services | $ | - | $ | - | $ | 18 | $ | - | $ | - | $ | 7 | |||
Other income (expense), net | $ | - | $ | -2,373 | $ | - | $ | - | $ | 544 | $ | - | |||
Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Designated as Hedging Instruments | Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Interest Rate | Foreign Exchange | Interest Rate | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Cash Flow | Cash Flow | |||||||||||
Amount of gain or (loss) recognized in other comprehensive | |||||||||||||||
income (loss) - effective portion, net of tax | $ | -9,254 | $ | -78 | $ | 14,902 | $ | -862 | |||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||
from accumulated OCI to income - effective portion: | |||||||||||||||
Revenue | $ | 7,227 | $ | - | $ | 2,016 | $ | - | |||||||
Interest Expense | - | -778 | - | -564 | |||||||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||
from accumulated OCI to income - ineffective portion | |||||||||||||||
and amount excluded from effectiveness testing: | |||||||||||||||
Other income (expense), net | $ | - | $ | - | $ | - | $ | - | |||||||
Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Not Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||||
Derivative contracts: | Foreign Exchange | Leases | Foreign Exchange | Leases | |||||||||||
Derivative classification: | Option and Forward Contracts | Fair Value | Embedded Derivative | Option and Forward Contracts | Fair Value | Embedded Derivative | |||||||||
Amount and location of net gain or (loss) | |||||||||||||||
recognized in the Consolidated Statement | |||||||||||||||
of Comprehensive Income (Loss): | |||||||||||||||
Costs of services | $ | - | $ | - | $ | 131 | $ | - | $ | - | $ | 259 | |||
Other income (expense), net | $ | - | $ | -3,620 | $ | - | $ | - | $ | 4,399 | $ | - | |||
FAIR_VALUE_TABLES
FAIR VALUE (TABLES) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
FAIR VALUE [Abstract] | ||||||||||||||
Schedule of Fair Value Derivative Assets and Liabilities | As of September 30, 2013 | |||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | At Fair Value | |||||||||||
Cash flow hedges | $ | - | $ | -3,736 | $ | - | $ | -3,736 | ||||||
Interest rate swaps | - | -2,287 | - | -2,287 | ||||||||||
Embedded derivatives | - | -147 | - | -147 | ||||||||||
Fair value hedges | - | -410 | - | -410 | ||||||||||
Total net derivative asset (liability) | $ | - | $ | -6,580 | $ | - | $ | -6,580 | ||||||
As of December 31, 2012 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | At Fair Value | |||||||||||
Cash flow hedges | $ | - | $ | 18,818 | $ | - | $ | 18,818 | ||||||
Interest rate swaps | - | -2,987 | - | -2,987 | ||||||||||
Fair value hedges | - | -465 | - | -465 | ||||||||||
Embedded derivatives | - | -278 | - | -278 | ||||||||||
Total net derivative asset (liability) | $ | - | $ | 15,088 | $ | - | $ | 15,088 | ||||||
Schedule of Fair Value Assets and Liabilities | As of September 30, 2013 | |||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
Money market investments | $ | - | $ | 240 | $ | - | ||||||||
Derivative instruments, net | - | - | - | |||||||||||
Total assets | $ | - | $ | 240 | $ | - | ||||||||
Liabilities | ||||||||||||||
Deferred compensation plan liability | $ | - | $ | -6,191 | $ | - | ||||||||
Derivative instruments, net | - | -6,580 | - | |||||||||||
Purchase price payable | - | - | -13,779 | |||||||||||
Total liabilities | $ | - | $ | -12,771 | $ | -13,779 | ||||||||
As of December 31, 2012 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||
Money market investments | $ | - | $ | 350 | $ | - | ||||||||
Derivative instruments, net | - | 15,088 | - | |||||||||||
Total assets | $ | - | $ | 15,438 | $ | - | ||||||||
Liabilities | ||||||||||||||
Deferred compensation plan liability | $ | - | $ | -5,305 | $ | - | ||||||||
Purchase price payable | - | - | -12,533 | |||||||||||
Total liabilities | $ | - | $ | -5,305 | $ | -12,533 | ||||||||
RESTRUCTURING_CHARGES_AND_IMPA1
RESTRUCTURING CHARGES AND IMPAIRMENT (TABLES) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | ||||||||||||||
Schedule of Restructuring Liabilities | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Reduction in force | ||||||||||||||
Customer Management Services | $ | 628 | $ | 2,678 | $ | 3,614 | $ | 20,642 | ||||||
Customer Growth Services | 7 | 62 | 7 | 198 | ||||||||||
Customer Technology Services | 73 | 5 | 73 | 60 | ||||||||||
Customer Strategy Services | - | - | 189 | - | ||||||||||
Total | $ | 708 | $ | 2,745 | $ | 3,883 | $ | 20,900 | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Facility exit charges | ||||||||||||||
Customer Management Services | $ | 50 | $ | -305 | $ | 298 | $ | -206 | ||||||
Customer Growth Services | - | - | - | - | ||||||||||
Customer Technology Services | - | - | - | - | ||||||||||
Customer Strategy Services | - | - | - | - | ||||||||||
Total | $ | 50 | $ | -305 | $ | 298 | $ | -206 | ||||||
Schedule of Restructuring Liability Rollforward | Closure of Delivery Centers | Reduction in Force | Total | |||||||||||
Balance as of December 31, 2012 | $ | - | $ | 4,079 | $ | 4,079 | ||||||||
Expense | 298 | 4,098 | 4,396 | |||||||||||
Payments | -298 | -5,762 | -6,060 | |||||||||||
Change in estimates | - | -215 | -215 | |||||||||||
Balance as of September 30, 2013 | $ | - | $ | 2,200 | $ | 2,200 | ||||||||
NONCONTROLLING_INTEREST_TABLES
NONCONTROLLING INTEREST (TABLES) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
NONCONTROLLING INTEREST [Abstract] | |||||||
Noncontrolling Interest Rollforward | Nine Months Ended September 30, | ||||||
2013 | 2012 | ||||||
Noncontrolling interest, January 1 | $ | 14,045 | $ | 11,260 | |||
Acquisition of noncontrolling interest | - | 941 | |||||
Net income attributable to noncontrolling interest | 2,575 | 3,152 | |||||
Dividends distributed to noncontrolling interest | -3,420 | -1,440 | |||||
Deconsolidation of a subsidiary | -121 | - | |||||
Purchase of remaining interest in subsidiary | -4,140 | - | |||||
Foreign currency translation adjustments | -104 | 113 | |||||
Equity-based compensation expense | 25 | - | |||||
Noncontrolling interest, September 30 | $ | 8,860 | $ | 14,026 | |||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (TABLES) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | ||||||||||||||
Other Comprehensive Income Attributable to TeleTech Shareholders Table | Foreign Currency Translation Adjustment | Derivative Valuation, Net of Tax | Other, Net of Tax | Totals | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2012 | $ | 15,673 | $ | 9,559 | $ | -2,251 | $ | 22,981 | ||||||
Other comprehensive income before reclassifications | -18,087 | -9,332 | 4 | -27,415 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | -3,899 | 447 | -3,452 | ||||||||||
Net current period other comprehensive income (loss) | -18,087 | -13,231 | 451 | -30,867 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at September 30, 2013 | $ | -2,414 | $ | -3,672 | $ | -1,800 | $ | -7,886 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2011 | $ | 3,156 | $ | -5,852 | $ | -2,778 | $ | -5,474 | ||||||
Other comprehensive income (loss) before reclassifications | 10,494 | 14,040 | 277 | 24,811 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | -870 | 656 | -214 | ||||||||||
Net current period other comprehensive income (loss) | 10,494 | 13,170 | 933 | 24,597 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at September 30, 2012 | $ | 13,650 | $ | 7,318 | $ | -1,845 | $ | 19,123 | ||||||
Income Statement Location of Adjustments Reclassified from Accumulated Other Comprehensive Income to Income | For the Three Months Ended September 30, | |||||||||||||
2013 | 2012 | Statement of Comprehensive Income (Loss) Classification | ||||||||||||
Derivative valuation | ||||||||||||||
Gain on foreign currency forward | ||||||||||||||
exchange contracts | $ | 917 | $ | 1,367 | Revenue | |||||||||
Loss on interest rate swaps | -264 | -380 | Interest expense | |||||||||||
Tax effect | -255 | -396 | Provision for income taxes | |||||||||||
$ | 398 | $ | 591 | Net income (loss) | ||||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -156 | $ | -235 | Cost of services | |||||||||
Tax effect | 9 | 13 | Provision for income taxes | |||||||||||
$ | -147 | $ | -222 | Net income (loss) | ||||||||||
For the Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | Statement of Comprehensive Income (Loss) Classification | ||||||||||||
Derivative valuation | ||||||||||||||
Gain (loss) on foreign currency forward | ||||||||||||||
exchange contracts | $ | 7,227 | $ | 2,016 | Revenue | |||||||||
Loss on interest rate swaps | -778 | -564 | Interest expense | |||||||||||
Tax effect | -2,550 | -582 | Provision for income taxes | |||||||||||
$ | 3,899 | $ | 870 | Net income (loss) | ||||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -473 | $ | -695 | Cost of services | |||||||||
Tax effect | 26 | 39 | Provision for income taxes | |||||||||||
$ | -447 | $ | -656 | Net income (loss) | ||||||||||
NET_INCOME_PER_SHARE_TABLES
NET INCOME PER SHARE (TABLES) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
NET INCOME PER SHARE [Abstract] | |||||||||||
Schedule of Diluted Shares Calculation | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
Shares used in basic earnings per share calculation | 50,732 | 54,093 | 51,643 | 55,233 | |||||||
Effect of dilutive securities: | |||||||||||
Stock options | 425 | 377 | 412 | 378 | |||||||
Restricted stock units | 521 | 435 | 444 | 380 | |||||||
Performance-based restricted stock units | - | - | - | - | |||||||
Total effects of dilutive securities | 946 | 812 | 856 | 758 | |||||||
Shares used in dilutive earnings per share calculation | 51,678 | 54,905 | 52,499 | 55,991 | |||||||
ACQUISITIONS_ASSETS_ACQUIRED_T
ACQUISITIONS (ASSETS ACQUIRED TABLE) (DETAILS) (USD $) | Aug. 09, 2013 | Jan. 02, 2012 | Feb. 27, 2012 | Oct. 04, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | WebMetro [Member] | Onstate [Member] | Iknowtion [Member] | Guidon [Member] | Technology Solutions Group [Member] |
Business Acquisition [Line Items] | |||||
Cash | $6,423 | $36 | $1,337 | $376 | $1,995 |
Accounts receivable | 3,692 | 68 | 1,792 | 1,375 | 4,871 |
Prepaid assets - cost deferrals | 3,665 | ||||
Property, plant and equipment | 887 | 33 | 161 | 49 | 583 |
Other assets | 215 | 90 | 228 | 1,886 | |
Customer relationships | 6,120 | 1,400 | 2,490 | 15,300 | |
Software | 3,700 | 2,100 | |||
Noncompete agreements | 2,300 | ||||
Trade name | 1,100 | ||||
Consulting services backlog | 800 | ||||
Goodwill | 5,042 | 1,132 | 447 | 3,619 | 19,421 |
Total assets acquired | 26,079 | 3,369 | 5,227 | 8,137 | 51,921 |
Accounts payable | 7,232 | 93 | 18 | 202 | 3,091 |
Accrued expenses | 422 | 19 | 122 | 1,539 | |
Customer deposits | 1,316 | ||||
Capital lease obligation | 444 | ||||
Deferred revenue | 7,295 | ||||
Other | 274 | 164 | 65 | ||
Total liabilities assumed | 9,688 | 201 | 389 | 11,925 | |
Noncontrolling interest | 941 | ||||
Total purcahse price | $16,391 | $3,276 | $4,085 | $7,748 | $39,996 |
ACQUISITIONS_NARRATIVE_DETAILS
ACQUISITIONS (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 2 Months Ended | 2 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 7 Months Ended | 7 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 02, 2012 | Jan. 02, 2012 | Feb. 27, 2012 | Sep. 30, 2013 | Feb. 27, 2012 | Oct. 04, 2012 | Sep. 30, 2013 | Oct. 04, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 09, 2013 | Sep. 30, 2013 | Aug. 09, 2013 | Aug. 09, 2013 | |
Onstate [Member] | Onstate [Member] | Iknowtion [Member] | Iknowtion [Member] | Iknowtion [Member] | Guidon [Member] | Guidon [Member] | Guidon [Member] | Technology Solutions Group [Member] | Technology Solutions Group [Member] | Technology Solutions Group [Member] | WebMetro [Member] | WebMetro [Member] | WebMetro [Member] | WebMetro [Member] | |||||
Computer Software, Intangible Asset [Member] | Customer relationships, gross [Member] | Customer relationships, gross [Member] | Customer relationships, gross [Member] | Customer relationships, gross [Member] | Computer Software, Intangible Asset [Member] | ||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Date of Acquisition | 1-Jan-12 | 27-Feb-12 | 4-Oct-12 | 31-Dec-12 | 9-Aug-13 | ||||||||||||||
Percentage of Voting Interests Acquired | 100.00% | 80.00% | 100.00% | 100.00% | 100.00% | ||||||||||||||
Description of Acquired Entity | OnState provides hosted business process outsourcing solutions to a variety of small businesses. OnState was headquartered in Boston, MA with a minimal employee base. | iKnowtion integrates proven marketing analytics methodologies and business consulting capabilities to help clients improve their return on marketing expenditures in such areas as demand generation, share of wallet, and channel mix optimization. iKnowtion is located in Boston, MA and has approximately 40 employees. | Guidon provides operational consulting services and designs solutions for operational and cultural transformation for global clients. Guidon is located in Mesa, AZ and has approximately 25 employees. | ”). TSG designs and implements custom communications systems for a variety of business types and sizes. TSG is located in Aurora, IL and has approximately 90 employees. | WebMetro is a digital marketing agency that provides online direct marketing services. WebMetro has offices in San Dimas and Los Angeles, California and Modiin, Israel and has approximately 90 employees. | ||||||||||||||
Purchase Price of Acquired Entity | $3,300,000 | $16,400,000 | |||||||||||||||||
Cost of Acquired Entity, Cash Paid | 3,100,000 | ||||||||||||||||||
Cost of Acquired Entity, Up Front Cash Consideration | 1,000,000 | 5,600,000 | 32,700,000 | ||||||||||||||||
Cost of Acquired Entity, Working Capital Adjustment Paid | 200,000 | 100,000 | 600,000 | ||||||||||||||||
Cost of Acquired Entity, Transaction Costs | 100,000 | 100,000 | 100,000 | 100,000 | |||||||||||||||
Weighted Average Useful Life of Acquired Intangible Assets | 4 years 0 months 0 days | 5 years 0 months 0 days | 5 years 0 months 0 days | 10 years 0 months 0 days | 6 years 0 months 0 days | 4 years 0 months 0 days | |||||||||||||
Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount | 1,100,000 | 400,000 | 3,600,000 | 19,400,000 | 5,000,000 | ||||||||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 14,800,000 | 14,800,000 | 4,300,000 | 2,800,000 | 7,300,000 | 1,400,000 | |||||||||||||
Valuation Technique on Contingent Consideration | The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 21% and expected future value of payments of $4.3 million. The $4.3 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with iKnowtion achieving the maximum EBITDA targets. These purchase price payables were recognized at fair value using a discounted cash flow approach and a discount rate of 21.0%, 21.0%, 4.6%, or 5.3%, respectively. These measurements were based on significant inputs not observable in the market. The Company will record interest expense each period using the effective interest method until the future value of these purchase price payables reaches their expected future value of $14.8 million. | The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 5.3% and expected future value of payments of $1.4 million. The $1.4 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with WebMetro achieving the smaller EBITDA targets. | |||||||||||||||||
Contingent Consideration Arrangements, Basis for Amount | In the event iKnowtion meets certain EBITDA targets for calendar year 2015, the purchase and sale agreement requires TeleTech to purchase the remaining 20% interest in iKnowtion in 2016 for an amount equal to a multiple of iKnowtions’s 2015 EBITDA as defined in the purchase and sale agreement. These terms represent a contingent redemption feature. The fair value of the redemption feature is based on a comparison of EBITDA multiples and the EBITDA multiple to purchase the remaining 20% of iKnowtion approximates EBITDA multiples in the market for similar acquisitions. | The Company is also obligated to make earn-out payments over the next two years if Guidon achieves specified EBITDA targets as defined in the stock purchase agreement. The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions included in the fair value calculation include a discount rate of 21% and expected future value of payments of $2.8 million. The $2.8 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with Guidon achieving the maximum EBITDA targets. | The Company is also obligated to make earn-out payments over three years if TSG achieves specified EBITDA targets, as defined by the stock purchase agreement. The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions included in the fair value calculation include a discount rate of 4.6% and expected future value of payments of $7.3 million. The $7.3 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with TSG achieving the maximum EBITDA targets. | ||||||||||||||||
Contingent Consideration, at fair value | 2,900,000 | 3,000,000 | 2,100,000 | 2,500,000 | 6,700,000 | 6,900,000 | 1,300,000 | 1,300,000 | |||||||||||
Contingent consideration, fair value, current portion | 1,100,000 | 1,400,000 | 2,400,000 | 200,000 | |||||||||||||||
Contingent consideration, fair value, noncurrent portion | 1,900,000 | 1,100,000 | 4,500,000 | 1,100,000 | |||||||||||||||
Acquisition of Less than 100 Percent, Noncontrolling Interest, Valuation Technique | The fair value of the 20% noncontrolling interest in iKnowtion at the date of acquisition was $0.9 million and was estimated based on a 20% interest of the fair value of a 100% interest in iKnowtion and was discounted for a lack of control at a rate of 23.1%. | ||||||||||||||||||
Revenue of Acquirees since Acquisition Date, Actual | 19,400,000 | 2,200,000 | 47,100,000 | 4,900,000 | |||||||||||||||
Income (loss) from operations of Acquirees since Acquisition Date, Actual | 2,700,000 | 400,000 | 4,900,000 | 800,000 | |||||||||||||||
Business Combination Pro Forma Information Amortization Expense of Acquirees Since Acquisition | $1,200,000 | $100,000 | $2,900,000 | $200,000 |
SEGMENT_INFORMATION_SEGMENT_FI
SEGMENT INFORMATION (SEGMENT FINANCIALS) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||
Gross Revenue | $297,370 | $289,373 | $877,028 | $872,884 | |
Intersegment Sales | -375 | -3,105 | -1,958 | -5,164 | |
Net Revenue | 296,995 | 286,268 | 875,070 | 867,720 | |
Depreciation and amortization | 11,463 | 10,695 | 33,281 | 31,040 | |
Income (Loss) from Operations | 25,961 | 27,361 | 68,634 | 52,557 | |
Capital Expenditures | 18,172 | 15,781 | 31,832 | 33,259 | |
Total Assets | 838,369 | 838,369 | 847,173 | ||
Goodwill | 98,695 | 98,695 | 94,679 | ||
Customer Management Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 217,347 | 224,041 | 661,201 | 688,318 | |
Intersegment Sales | -312 | 0 | -943 | 0 | |
Net Revenue | 217,035 | 224,041 | 660,258 | 688,318 | |
Depreciation and amortization | 8,322 | 8,349 | 24,716 | 24,811 | |
Income (Loss) from Operations | 17,944 | 21,001 | 55,140 | 38,438 | |
Capital Expenditures | 15,108 | 11,752 | 25,504 | 27,171 | |
Total Assets | 547,320 | 547,320 | 588,627 | ||
Goodwill | 19,981 | 19,981 | 20,288 | ||
Customer Growth Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 25,893 | 28,200 | 71,148 | 75,373 | |
Intersegment Sales | 0 | 0 | 0 | 0 | |
Net Revenue | 25,893 | 28,200 | 71,148 | 75,373 | |
Depreciation and amortization | 1,148 | 1,201 | 2,622 | 2,899 | |
Income (Loss) from Operations | 588 | 2,487 | 1,244 | 1,409 | |
Capital Expenditures | 1,274 | 2,385 | 2,025 | 3,428 | |
Total Assets | 85,924 | 85,924 | 54,164 | ||
Goodwill | 29,481 | 29,481 | 24,439 | ||
Customer Technology Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 40,712 | 25,219 | 111,075 | 76,570 | |
Intersegment Sales | -63 | -2,876 | -220 | -3,719 | |
Net Revenue | 40,649 | 22,343 | 110,855 | 72,851 | |
Depreciation and amortization | 1,538 | 794 | 4,543 | 2,286 | |
Income (Loss) from Operations | 5,165 | 3,054 | 13,882 | 11,089 | |
Capital Expenditures | 1,642 | 1,346 | 3,930 | 2,216 | |
Total Assets | 155,466 | 155,466 | 148,043 | ||
Goodwill | 39,146 | 39,146 | 38,591 | ||
Customer Strategy Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 13,418 | 11,913 | 33,604 | 32,623 | |
Intersegment Sales | 0 | -229 | -795 | -1,445 | |
Net Revenue | 13,418 | 11,684 | 32,809 | 31,178 | |
Depreciation and amortization | 455 | 351 | 1,400 | 1,044 | |
Income (Loss) from Operations | 2,264 | 819 | -1,632 | 1,621 | |
Capital Expenditures | 148 | 298 | 373 | 444 | |
Total Assets | 49,659 | 49,659 | 56,339 | ||
Goodwill | $10,087 | $10,087 | $11,361 |
SEGMENT_INFORMATION_REVENUE_GE
SEGMENT INFORMATION (REVENUE GEOGRAPHY) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $296,995 | $286,268 | $875,070 | $867,720 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 137,205 | 119,572 | 401,294 | 342,005 |
Philippines [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 89,206 | 83,299 | 263,365 | 245,301 |
Latin America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 43,343 | 47,914 | 132,673 | 142,069 |
Europe Middle East Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 18,929 | 22,164 | 52,551 | 93,614 |
Asia Pacific[ Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 4,504 | 4,955 | 13,087 | 13,126 |
Canada [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $3,808 | $8,364 | $12,100 | $31,605 |
SIGNIFICANT_CLIENTS_NARRATIVE_
SIGNIFICANT CLIENTS (NARRATIVE) (DETAILS) (Client A [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Client A [Member] | ||||
Entity Wide Revenue Major Customer Line Items | ||||
Revenue from major customer as a percentage of total revenue | 11.50% | 9.80% | 11.70% | 9.70% |
Accounts receivable amount from major customer | $29.30 | $25.80 | $29.30 | $25.80 |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (GOODWILL ROLLFORWARD) (DETAILS) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Line Items] | |
Beginning balance, goodwill | $94,679 |
Acquisitions | 5,520 |
Impairments | 0 |
Deconsolidation of subsidiary | 1,274 |
Effect of Foreign Currency | -230 |
Ending balance, goodwill | 98,695 |
Customer Management Services [Member] | |
Goodwill [Line Items] | |
Beginning balance, goodwill | 20,288 |
Acquisitions | 0 |
Impairments | 0 |
Deconsolidation of subsidiary | 0 |
Effect of Foreign Currency | -307 |
Ending balance, goodwill | 19,981 |
Customer Growth Services [Member] | |
Goodwill [Line Items] | |
Beginning balance, goodwill | 24,439 |
Acquisitions | 5,042 |
Impairments | 0 |
Deconsolidation of subsidiary | 0 |
Effect of Foreign Currency | 0 |
Ending balance, goodwill | 29,481 |
Customer Technology Services [Member] | |
Goodwill [Line Items] | |
Beginning balance, goodwill | 38,591 |
Acquisitions | 478 |
Impairments | 0 |
Deconsolidation of subsidiary | 0 |
Effect of Foreign Currency | 77 |
Ending balance, goodwill | 39,146 |
Customer Strategy Services [Member] | |
Goodwill [Line Items] | |
Beginning balance, goodwill | 11,361 |
Acquisitions | 0 |
Impairments | 0 |
Deconsolidation of subsidiary | 1,274 |
Effect of Foreign Currency | 0 |
Ending balance, goodwill | $10,087 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | |
Tradename | Customer Strategy Services [Member] | |||||||
Tradename | ||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [ABSTRACT] | ||||||||
Method used to calculate fair value of reporting unit that has goodwill at risk | For the goodwill impairment analysis, the Company calculated the fair value of the PRG reporting unit and compared that to the updated carrying value after the above impairments were recorded and determined that the fair value was not in excess of its carrying value. Key assumptions used in the fair value calculation for goodwill impairment testing include, but were not limited to, a perpetuity growth rate of 7.0% based on the then current inflation rate combined with the GDP growth rate for the reporting unit’s geographical region and a discount rate of 26.0%, which is equal to the reporting unit’s equity risk premium adjusted for its size and company specific risk factors. Estimated future cash flows under the income approach were based on the Company’s internal business plan excluding the results of the deconsolidated subsidiary and adjusted as appropriate for the Company’s view of market participant assumptions. The current business plan assumes the occurrence of certain events, such as continued realignment of operations and reduction of general and administrative costs. Significant differences in the outcome of some or all of these assumptions could impact the calculated fair value of this reporting until resulting in a different outcome to goodwill impairment in a future period. | |||||||
Goodwill amount of reporting units where fair value is not substantially in excess of carrying value | $7,300,000 | $7,300,000 | ||||||
Fair value of a reporting unit in excess of carrying value expressed as a percentage | 4.00% | 4.00% | ||||||
Asset Impairment [Line Items] | ||||||||
Impairment losses | $0 | $161,000 | $1,205,000 | $2,958,000 | $1,100,000 | |||
Fair Value Determination Intangible Assets | The Company calculated the fair value of the trade name using a relief from royalty method based on forecasted revenues sold under the trade name using significant inputs not observable in the market (Level 3 inputs). The valuation assumptions included an estimated royalty rate of 6.0%, a discount rate specific to the trade name of 38.0% and a perpetuity growth rate of 7.0%. |
DERIVATIVES_OCI_ROLLFORWARD_DE
DERIVATIVES (OCI ROLLFORWARD) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
DERIVATIVES [ABSTRACT] | ||||
Aggregate unrealized net gain/(loss) at beginning of year | ($2,644) | $2,964 | $9,559 | ($5,852) |
Add: Net gain/(loss) from change in fair value of cash flow hedges | -630 | 4,945 | -9,332 | 14,040 |
Less: Net (gain)/loss reclassified to earnings from effective hedges | -398 | -591 | -3,899 | -870 |
Aggregate unrealized net gain/(loss) at end of period | ($3,672) | $7,318 | ($3,672) | $7,318 |
DERIVATIVES_NOTIONAL_TABLE_DET
DERIVATIVES (NOTIONAL TABLE) (DETAILS) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | CAD | CAD | PHP | PHP | MXN | MXN | GBP | GBP | NZD | NZD | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards |
USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | CAD | CAD | PHP | PHP | MXN | MXN | GBP | GBP | NZD | NZD | |||||||
USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | |||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Local Currency Notional Amount | 12,750 | 15,835,000 | 2,056,000 | £ 2,508 | 300 | 7,750 | 11,710,000 | 1,320,500 | £ 3,518 | 398 | ||||||||||||
U.S. Dollar Notional Amount | $536,920 | $379,782 | $12,415 | $372,909 | $147,144 | $4,217 | $235 | $7,407 | $271,970 | $94,530 | $5,575 | $300 | ||||||||||
% Maturing in the Next 12 Months | 70.60% | 70.60% | 37.80% | 37.80% | 34.50% | 34.50% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||||
Contracts Maturing Through | Jun-15 | Jun-15 | Dec-17 | Dec-17 | Dec-17 | Dec-17 | Jun-14 | Jun-14 | Mar-14 | Mar-14 |
DERIVATIVES_INTEREST_RATE_SWAP
DERIVATIVES (INTEREST RATE SWAPS) (DETAILS) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | ||
Notional Amount | $40 | $40 |
Interest Rate Swap One [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 25 | 25 |
Variable Rate Received | 1 - month LIBOR | 1 - month LIBOR |
Fixed Rate Paid | 2.55% | 2.55% |
Contract Commencement Date | 1-Apr-12 | 1-Apr-12 |
Contract Maturity Date | 1-Apr-16 | 1-Apr-16 |
Interest Rate Swap Two [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $15 | $15 |
Variable Rate Received | 1 - month LIBOR | 1 - month LIBOR |
Fixed Rate Paid | 3.14% | 3.14% |
Contract Commencement Date | 1-May-12 | 1-May-12 |
Contract Maturity Date | 1-May-17 | 1-May-17 |
DERIVATIVES_BALANCE_SHEET_CLAS
DERIVATIVES (BALANCE SHEET CLASSIFICATION) (DETAILS) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | ($3,736) | $18,818 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 4,607 | 11,421 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 2,971 | 7,619 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -3,155 | -157 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -8,159 | -65 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -2,287 | -2,987 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 0 | 0 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 0 | 0 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -1,029 | -1,032 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -1,258 | -1,955 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -410 | -465 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 20 | 11 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 0 | 0 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -430 | -476 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 0 | 0 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -147 | -278 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 0 | 0 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 0 | 0 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -147 | -59 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $0 | ($219) |
DERIVATIVES_INCOME_STATEMENT_C
DERIVATIVES (INCOME STATEMENT CLASSIFICATION) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | ($476) | $5,331 | ($9,254) | $14,902 |
Amount and location of net gain or (loss) reclassified from accumulated OCI to income - effective portion: Revenue | 917 | 1,367 | 7,227 | 2,016 |
Amount and location of net gain or (loss) reclassified from accumulated OCI to income - effective portion: Interest expense | 0 | 0 | 0 | 0 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Other income (expense), net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount and location of net gain or (loss) reclassified from accumulated OCI to income - ineffective portion and amount excluded from effectiveness testing: Other income (expense), net | 0 | 0 | 0 | 0 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | -154 | -386 | -78 | -862 |
Amount and location of net gain or (loss) reclassified from accumulated OCI to income - effective portion: Revenue | 0 | 0 | 0 | |
Amount and location of net gain or (loss) reclassified from accumulated OCI to income - effective portion: Interest expense | -264 | -381 | -778 | -564 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | Other income (expense), net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount and location of net gain or (loss) reclassified from accumulated OCI to income - ineffective portion and amount excluded from effectiveness testing: Other income (expense), net | 0 | 0 | 0 | 0 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Cost of Services [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | 0 | 0 | 0 | 0 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Other income (expense), net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | 0 | 0 | 0 | 0 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Cost of Services [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | 0 | 0 | 0 | 0 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Other income (expense), net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | -2,373 | 544 | -3,620 | 4,399 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | Cost of Services [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | 18 | 7 | 131 | 259 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | Other income (expense), net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | $0 | $0 | $0 | $0 |
DERIVATIVES_NARRATIVE_DETAILS
DERIVATIVES (NARRATIVE) (DETAILS) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
DERIVATIVES [ABSTRACT] | ||
Notional amount of fair value hedges | $247.20 | $189.30 |
FAIR_VALUE_DERIVATIVES_TABLE_D
FAIR VALUE (DERIVATIVES TABLE) (DETAILS) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | $0 | $0 |
Interest rate swaps | 0 | 0 |
Embedded derivatives | 0 | 0 |
Fair value hedges | 0 | 0 |
Total net derivative asset (liability) | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | -3,736 | 18,818 |
Interest rate swaps | -2,287 | -2,987 |
Embedded derivatives | -147 | -278 |
Fair value hedges | -410 | -465 |
Total net derivative asset (liability) | -6,580 | 15,088 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | 0 | 0 |
Interest rate swaps | 0 | 0 |
Embedded derivatives | 0 | 0 |
Fair value hedges | 0 | 0 |
Total net derivative asset (liability) | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | -3,736 | 18,818 |
Interest rate swaps | -2,287 | -2,987 |
Embedded derivatives | -147 | -278 |
Fair value hedges | -410 | -465 |
Total net derivative asset (liability) | ($6,580) | $15,088 |
FAIR_VALUE_FAIR_VALUE_ASSETS_A
FAIR VALUE (FAIR VALUE ASSETS AND LIABILITIES) (DETAILS) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Money market investments | $0 | $0 |
Derivative instruments, net | 0 | 0 |
Total assets | 0 | 0 |
Liabilities [Abstract] | ||
Deferred compensation plan liability | 0 | 0 |
Derivative instruments, net | 0 | |
Purcahse price payable | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Money market investments | 240 | 350 |
Derivative instruments, net | 0 | 15,088 |
Total assets | 240 | 15,438 |
Liabilities [Abstract] | ||
Deferred compensation plan liability | 6,191 | 5,305 |
Derivative instruments, net | 6,580 | |
Purcahse price payable | 0 | 0 |
Total liabilities | 12,771 | 5,305 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Money market investments | 0 | 0 |
Derivative instruments, net | 0 | 0 |
Total assets | 0 | 0 |
Liabilities [Abstract] | ||
Deferred compensation plan liability | 0 | 0 |
Derivative instruments, net | 0 | |
Purcahse price payable | 13,779 | 12,533 |
Total liabilities | $13,779 | $12,533 |
FAIR_VALUE_NARRATIVE_DETAILS
FAIR VALUE (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
FAIR VALUE [Abstract] | ||
Average interest rate on annual borrowings | 1.40% | 1.50% |
Future Value of Liabilities Incurred From Business Acquisitions | $14.80 | $14.80 |
INCOME_TAXES_NARRATIVE_DETAILS
INCOME TAXES (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
INCOME TAXES [ABSTRACT] | ||||
Total deferred tax assets, net of valuation allowance | $55.30 | $55.30 | ||
Valuation allowance on deferred tax assets | 21.3 | 21.3 | ||
Deferred tax assets, net of valuation allowance and deferred tax liabilities | $52.80 | $52.80 | ||
Effective income tax rate | 24.90% | -13.80% | 20.00% | -6.10% |
United States [Member] | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Years under Audit | 2010 |
RESTRUCTURING_CHARGES_AND_IMPA2
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABILITY CLASSIFICATION TABLE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | $708 | $2,745 | $3,883 | $20,900 |
Restructuring charges, net | 758 | 2,440 | 4,181 | 20,694 |
Closure of Delivery Centers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Facility exit charges | 50 | -305 | 298 | -206 |
Customer Management Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | 628 | 2,678 | 3,614 | 20,642 |
Customer Management Services [Member] | Closure of Delivery Centers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Facility exit charges | 50 | -305 | 298 | -206 |
Customer Growth Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | 7 | 62 | 7 | 198 |
Customer Growth Services [Member] | Closure of Delivery Centers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Facility exit charges | 0 | 0 | 0 | 0 |
Customer Technology Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | 73 | 5 | 73 | 60 |
Customer Technology Services [Member] | Closure of Delivery Centers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Facility exit charges | 0 | 0 | 0 | 0 |
Customer Strategy Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | 0 | 0 | 189 | 0 |
Customer Strategy Services [Member] | Closure of Delivery Centers [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Facility exit charges | $0 | $0 | $0 | $0 |
RESTRUCTURING_CHARGES_AND_IMPA3
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABLITY ROLLFORWARD TABLE) (DETAILS) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance, restructuring reserve | $4,079 |
Expense | 4,396 |
Payments | -6,060 |
Reversals | -215 |
Ending balance, restructuring reserve | 2,200 |
Closure of Delivery Centers [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance, restructuring reserve | 0 |
Expense | 298 |
Payments | -298 |
Reversals | 0 |
Ending balance, restructuring reserve | 0 |
Reduction in Force [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance, restructuring reserve | 4,079 |
Expense | 4,098 |
Payments | -5,762 |
Reversals | -215 |
Ending balance, restructuring reserve | $2,200 |
RESTRUCTURING_CHARGES_AND_IMPA4
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (NARRATIVE) (DETAILS) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | |
Spain [Member] | Spain [Member] | Spain [Member] | Customer Management Services [Member] | Customer Management Services [Member] | Customer Management Services [Member] | Customer Management Services [Member] | Customer Growth Services [Member] | Customer Strategy Services [Member] | |||
Closure of Delivery Centers [Member] | Reduction in Force [Member] | ||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | |||||||||||
Description of assets subject to impairment | During each of the periods presented, the Company evaluated the recoverability of its leasehold improvement assets at certain delivery centers. | ||||||||||
Method used to determine fair value of assets subject to impairment | To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. | ||||||||||
Asset Impairment [Line Items] | |||||||||||
Impairment of leasehold | $0 | $200,000 | $100,000 | $1,200,000 | |||||||
Impairment of intangible assets | 1,800,000 | 1,100,000 | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Reserve | 2,200,000 | 4,079,000 | 200,000 | 400,000 | 14,700,000 | ||||||
Payments | ($6,060,000) | $14,900,000 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (DETAILS) (NARRATIVE) (USD $) | 5 Months Ended | 9 Months Ended | ||
Jun. 03, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||
Initiation date of current line of credit agreement | 3-Jun-13 | |||
Line of Credit Facility, Rationale for Classification as Long-Term Debt | 5 Year Term | |||
Initial Borrowing Capacity | $700,000,000 | |||
Maximum Borrowing Capacity | 1,000,000,000 | |||
Description of line of credit agreement | The Credit Agreement provides for a secured revolving credit facility that matures on June 3, 2018 with an initial maximum aggregate commitment of $700.0 million. At the Company’s discretion, direct borrowing options under the Credit Agreement include (i) Eurodollar loans with one, two, three, and six month terms, and/or (ii) overnight base rate loans. The Credit Agreement also provides for a sub-limit for loans or letters of credit in both U.S. dollars and certain foreign currencies, with direct foreign subsidiary borrowing capabilities up to 50% of the total commitment amount. The Company may increase the maximum aggregate commitment under the Credit Agreement to $1.0 billion if certain conditions are satisfied, including that the Company is not in default under the Credit Agreement at the time of the increase and that the Company obtains the commitment of the lenders participating in the increase. Base rate loans bear interest at a rate equal to the greatest of (i) Wells Fargo’s prime rate, (ii) one half of 1% in excess of the federal funds effective rate, and (iii) 1.25% in excess of the one month London Interbank Offered Rate (“LIBOR”), in each case adding a margin based upon the Company’s leverage ratio. Eurodollar loans bear interest based upon LIBOR, plus a margin based upon the Company’s leverage ratio. Alternate loans bear interest at rates applicable to their respective currencies. Letter of credit fees are one eighth of 1% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for Eurodollar loans. Commitment fees are payable to the Lenders in an amount equal to the unused portion of the credit facility and are based upon the Company’s leverage ratio. Indebtedness under the Credit Agreement is guaranteed by certain of the Company’s present and future domestic subsidiaries. Indebtedness under the Credit Agreement and the related guarantees are secured by security interests (subject to permitted liens) in the U.S. accounts receivable and cash of the Company and certain of its domestic subsidiaries and may be secured by tangible assets of the Company and such domestic subsidiaries if borrowings by foreign subsidiaries exceed $100.0 million and the leverage ratio is greater than 3.00 to 1.00. The Company also pledged 65% of the voting stock and 100% of the non-voting stock of certain of the Company’s material foreign subsidiaries and may pledge 65% of the voting stock and 100% of the non-voting stock of the Company’s other foreign subsidiaries. | |||
Borrowings outstanding on credit facility | 118,000,000 | 108,000,000 | ||
Average daily utilization under credit facility | 240,900,000 | 144,400,000 | ||
Letters of credit issued under credit facility | 3,500,000 | |||
Remaining borrowing capacity under credit facility | 578,500,000 | |||
Letters of credit issued outside credit facility | $600,000 |
NONCONTROLLING_INTERES_NONCONT
NONCONTROLLING INTERES (NONCONTROLLING INTEREST ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stockholders' Equity Attributable to Noncontrolling Interest | ||||
Noncontrolling interest, beginning balance | $14,045 | $11,260 | ||
Acquisition of noncontrolling interest | 941 | |||
Net income attributable to noncontrolling interest | 1,526 | 1,291 | 2,575 | 3,152 |
Dividends distributed to noncontrolling interest | -3,420 | -1,440 | ||
Deconsolidation of a subsidiary | -121 | 0 | ||
Purchase of remaining interest in subsidiary | -4,140 | 0 | ||
Foreign currency translation adjustments | -104 | 113 | ||
Equity based compensation expense | 25 | 0 | ||
Noncontrolling interest, ending balance | $8,860 | $14,026 | $8,860 | $14,026 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign Currency Translation Adjustment [Abstract] | ||||
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, beginning balance | $15,673 | $3,156 | ||
Other comprehensive income before reclassifications - foreign currency translation adjustment | -18,087 | 10,494 | ||
Amounts reclassified from accumulated other comprehensive income - foreign currency translation adjustment | 0 | 0 | ||
Net current period other comprehensive income - foreign currency translation adjustment | -18,087 | 10,494 | ||
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, ending balance | -2,414 | 13,650 | -2,414 | 13,650 |
Derivative Valuation, Net of Tax | ||||
Aggregate unrealized net gain/(loss) at beginning of year | -2,644 | 2,964 | 9,559 | -5,852 |
Other comprehensive income before reclassifications - derivative valuation, net of tax | -630 | 4,945 | -9,332 | 14,040 |
Amounts reclassified from accumulated other comprehensive income - derivative valuation, net of tax | 398 | 591 | 3,899 | 870 |
Net current period other comprehensive income - derivative valuation, net of tax | -13,231 | 13,170 | ||
Aggregate unrealized net gain/(loss) at end of period | -3,672 | 7,318 | -3,672 | 7,318 |
Other, Net of Tax | ||||
Accumulated other comprehensive income (loss) - Other, net of tax | -2,251 | -2,778 | ||
Other comprehensive income before reclassifications - other, net of tax | 4 | 277 | ||
Amounts reclassified from accumulated other comprehensive income - other, net of tax | 447 | 656 | ||
Net current period other comprehensive income - other, net of tax | 451 | 933 | ||
Accumulated other comprehensive income (loss) - Other, net of tax | -1,800 | -1,845 | -1,800 | -1,845 |
Totals | ||||
Accumulated other comprehensive income (loss), beginning balance | 22,981 | -5,474 | ||
Other comprehensive income before reclassifications - Totals | -27,415 | 24,811 | ||
Amounts reclassified from accumulated other comprehensive income - Totals | -3,452 | -214 | ||
Other comprehensive income (loss), net of tax | -30,867 | 24,597 | ||
Accumulated other comprehensive income (loss), ending balance | ($7,886) | $19,123 | ($7,886) | $19,123 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (INCOME STATEMENT CLASSIFICATION TABLE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | ($3,452) | ($214) | ||
Net Income (Loss) [Member] | Derivative Valuation [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | 398 | 591 | 3,899 | 870 |
Net Income (Loss) [Member] | Other Accumulated Other Comprehensive Income Loss [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | -147 | -222 | -447 | -656 |
Gain Loss on Foreign Currency Forward Contracts [Member] | Revenue [Member] | Derivative Valuation [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | 917 | 1,367 | 7,227 | 2,016 |
Loss on Interest Rate Swaps [Member] | Interest Expenses [Member] | Derivative Valuation [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | -264 | -380 | -778 | -564 |
Tax Effect [Member] | Provision for Income Taxes [Member] | Derivative Valuation [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | -255 | -396 | -2,550 | -582 |
Tax Effect [Member] | Provision for Income Taxes [Member] | Other Accumulated Other Comprehensive Income Loss [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | 9 | 13 | 26 | 39 |
Actuarial Loss on Defined Benefit Plan [Member] | Cost of Services [Member] | Other Accumulated Other Comprehensive Income Loss [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | ($156) | ($235) | ($473) | ($695) |
NET_INCOME_PER_SHARE_DILUTED_S
NET INCOME PER SHARE (DILUTED SHARES TABLE) (DETAILS) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Shares used in basic earnings per share calculation | 50,732 | 54,093 | 51,643 | 55,233 |
Effect of dilutive securities: | ||||
Stock options | 425 | 377 | 412 | 378 |
Restricted stock units | 521 | 435 | 444 | 380 |
Performance-based restricted stock units | 0 | 0 | 0 | 0 |
Total effects of dilutive securities | 946 | 812 | 856 | 758 |
Shares used in dilutive earnings per share calculation | 51,678 | 54,905 | 52,499 | 55,991 |
NET_INCOME_PER_SHARE_NARRATIVE
NET INCOME PER SHARE (NARRATIVE) (DETAILS) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Options [Member] | ||||
Anti-dilutive options to purchase common stock [Line Items] | ||||
Anti-dilutive securities | 0.1 | 0.1 | 0.1 | 0.1 |
Restricted Stock Units (RSUs) [Member] | ||||
Anti-dilutive options to purchase common stock [Line Items] | ||||
Anti-dilutive securities | 0.2 | 0.7 | 0.2 | 0.8 |
EQUITYBASED_COMPENSATION_PLANS1
EQUITY-BASED COMPENSATION PLANS (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $3,300,000 | $3,400,000 | $9,842,000 | $10,310,000 |
Non-option Equity Awards Granted | 755,835 | 637,042 | ||
Stock Options [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 100,000 | 100,000 | 300,000 | 400,000 |
Unrecognized Compensation Expense | 400,000 | 400,000 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 3,100,000 | 3,300,000 | 9,400,000 | 9,900,000 |
Unrecognized Compensation Expense | 28,600,000 | 28,600,000 | ||
Cost of Services [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 600,000 | 500,000 | 1,600,000 | 1,500,000 |
Selling General And Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $2,700,000 | $2,900,000 | $8,300,000 | $8,800,000 |
DECONSOLIDATION_OF_SUBSIDIARY_
DECONSOLIDATION OF SUBSIDIARY (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
DECONSOLIDATION OF SUBSIDIARY [Abstract] | ||||
Description of Loss of Control in Noncontrolling Interest | During the second quarter of 2013, the Company concluded that it no longer had controlling influence over Peppers & Rogers Gulf WLL (“PRG Kuwait”), a once consolidated subsidiary in the Customer Strategy Services segment, because the Company was no longer confident that it could exercise its beneficial ownership rights. | |||
Loss on deconsolidation of subsidiary | $0 | $0 | ($3,655) | $0 |