Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Apr. 30, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'TELETECH HOLDINGS INC | ' | ' |
Entity Central Index Key | '0001013880 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
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 | ' | 49,433,810 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $120,377 | $158,017 |
Accounts receivable, net | 249,351 | 236,099 |
Prepaids and other current assets | 57,602 | 52,332 |
Deferred tax assets, net | 13,283 | 11,905 |
Income tax receivable | 8,748 | 11,198 |
Total current assets | 449,361 | 469,551 |
Long-term assets | ' | ' |
Property, plant and equipment, net | 132,789 | 126,719 |
Goodwill | 110,553 | 102,743 |
Contract acquisition costs, net | 1,327 | 1,642 |
Deferred tax assets, net | 40,069 | 42,791 |
Other intangible assets, net | 56,394 | 54,812 |
Other long-term assets | 41,447 | 44,084 |
Total long-term assets | 382,579 | 372,791 |
Total assets | 831,940 | 842,342 |
Current liabilities | ' | ' |
Accounts payable | 40,695 | 32,031 |
Accrued employee compensation and benefits | 63,698 | 80,130 |
Other accrued expenses | 40,216 | 31,659 |
Income taxes payable | 1,648 | 6,066 |
Deferred tax liabilities, net | 38 | 590 |
Deferred revenue | 27,985 | 28,799 |
Other current liabilities | 13,940 | 11,512 |
Total current liabilities | 188,220 | 190,787 |
Long-term liabilities | ' | ' |
Line of credit | 100,000 | 100,000 |
Deferred tax liabilities, net | 2,103 | 2,281 |
Deferred rent | 9,040 | 9,635 |
Other long-term liabilities | 60,799 | 63,648 |
Total long-term liabilities | 171,942 | 175,564 |
Total liabilities | 360,162 | 366,351 |
Commitments and contingencies (Note 10) | ' | ' |
Mandatorily redeemable noncontrolling interest | 2,462 | 2,509 |
Stockholders' equity | ' | ' |
Preferred stock - $0.01 par value: 10,000,000 shares authorized; zero shares outstanding as of March 31, 2014 and December 31, 2013 | 0 | 0 |
Common stock - $0.01 par value; 150,000,000 shares authorized; 49,714,740 and 50,352,881 shares outstanding as of March 31, 2014 and December 31, 2013, respectively | 497 | 503 |
Additional paid-in capital | 352,568 | 356,381 |
Treasury stock at cost: 32,513,513 and 31,699,372 shares as of March 31, 2014 and December 31, 2013, respectively | -494,133 | -477,399 |
Accumulated other comprehensive income | -24,602 | -20,586 |
Retained earnings | 626,895 | 606,502 |
Noncontrolling interest | 8,091 | 8,081 |
Total stockholders' equity | 469,316 | 473,482 |
Total liabilities and stockholders' equity | $831,940 | $842,342 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | 49,714,740 | 50,352,881 |
Treasury stock, shares | 32,337,513 | 31,699,372 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements of Comprehensive Income | ' | ' |
Revenue | $302,221 | $288,383 |
Operating expenses | ' | ' |
Cost of services (exclusive of depreciation and amortization presented separately below) | 213,787 | 208,232 |
Selling, general and administrative | 50,367 | 45,747 |
Depreciation and amortization | 13,170 | 10,555 |
Restructuring charges, net | 540 | 851 |
Total operating expenses | 277,864 | 265,385 |
Income from operations | 24,357 | 22,998 |
Other income (expense) | ' | ' |
Interest income | 511 | 669 |
Interest expense | -1,690 | -1,865 |
Other income (expense), net | 1,001 | -808 |
Total other income (expense) | -178 | -2,004 |
Income before income taxes | 24,179 | 20,994 |
Benefit from (provision for) income taxes | -2,876 | -2,391 |
Net income | 21,303 | 18,603 |
Net income attributable to noncontrolling interest | -1,085 | -642 |
Net income attributable to TeleTech stockholders | 20,218 | 17,961 |
Other comprehensive income (loss) | ' | ' |
Foreign currency translation adjustments | -1,723 | 3,134 |
Derivative valuation, gross | -3,917 | 3,390 |
Derivative valuation, tax effect | 1,382 | -1,210 |
Other, net of tax | 276 | 162 |
Total other comprehensive income | -3,982 | 5,476 |
Total comprehensive (loss) income | 17,321 | 24,079 |
Comprehensive income attributable to noncontrolling interest | -992 | -552 |
Comprehensive income attributable to TeleTech stockholders | $16,329 | $23,527 |
Weighted average shares outstanding | ' | ' |
Basic | 50,045 | 52,347 |
Diluted | 50,973 | 53,217 |
Net income per share attributable to TeleTech stockholders | ' | ' |
Basic | $0.40 | $0.34 |
Diluted | $0.40 | $0.34 |
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 (Loss) [Member] | Stockholders' Equity of the Company Retained Earnings [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data | ||||||||
Beginning balance,value at Dec. 31, 2013 | $473,482 | $0 | $503 | ($477,399) | $356,381 | ($20,586) | $606,502 | $8,081 |
Preferred stock beginning balance, share at Dec. 31, 2013 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Common stock beginning balance, share at Dec. 31, 2013 | 50,352,881 | ' | 50,353 | ' | ' | ' | ' | ' |
Net income | 21,303 | ' | ' | ' | ' | ' | 20,218 | ' |
Net income excluding mandatorily redeemable noncontrolling interest | 21,175 | ' | ' | ' | ' | ' | ' | 957 |
Dividends distributed to noncontrolling interest | -990 | ' | ' | ' | ' | ' | ' | -990 |
Adjustments to redemption value of mandatorily redeemable noncontrolling interest | 175 | ' | ' | ' | ' | ' | 175 | ' |
Foreign currency translation adjustments | -1,723 | ' | ' | ' | ' | -1,758 | ' | 35 |
Derivatives valuation, net of tax | -2,534 | ' | ' | ' | ' | -2,534 | ' | ' |
Vesting of restricted stock units, share | ' | ' | 246 | ' | ' | ' | ' | ' |
Vesting of restricted stock units, value | -3,753 | ' | 3 | 3,678 | -7,434 | ' | ' | ' |
Exercise of stock options, share | ' | ' | 3 | ' | ' | ' | ' | ' |
Exercise of stock options, value | 12 | ' | ' | 45 | ' | -33 | ' | ' |
Excess tax benefit from equity-based awards | 527 | ' | ' | ' | 527 | ' | ' | ' |
Equity-based compensation expense | 3,135 | ' | ' | ' | 3,127 | ' | ' | 8 |
Purchases of common stock, share | ' | ' | -887 | ' | ' | ' | ' | ' |
Purchases of common stock, value | -20,466 | ' | -9 | -20,457 | ' | ' | ' | ' |
Other | 276 | ' | ' | ' | ' | 276 | ' | ' |
Ending balance,value at Mar. 31, 2014 | $469,316 | $0 | $497 | ($494,133) | $352,568 | ($24,602) | $626,895 | $8,091 |
Preferred stock ending balance, share at Mar. 31, 2014 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Common stock ending balance, share at Mar. 31, 2014 | 49,714,740 | ' | 49,715 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $21,303 | $18,603 |
Adjustment to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 13,170 | 10,555 |
Amortization of contract acquisition costs | 358 | 255 |
Amortization of debt issuance costs | 170 | 175 |
Imputed interest expense and fair value adjustments to contingent consideration | 200 | 346 |
Provision for doubtful accounts | 113 | 76 |
Gain on disposal of assets | 0 | -107 |
Deferred income taxes | 990 | 3,975 |
Excess tax benefit from equity-based awards | -788 | -800 |
Equity-based compensation expense | 3,160 | 3,191 |
Gain on foreign currency derivatives | -634 | -433 |
Changes in assets and liabilities, net of acquisitions: | ' | ' |
Accounts receivable | -8,092 | 5,012 |
Prepaids and other assets | 1,618 | -7,630 |
Accounts payable and accrued expenses | -10,817 | -19,399 |
Deferred revenue and other liabilities | -7,214 | -7,325 |
Net cash provided by operating activities | 13,537 | 6,494 |
Cash flows from investing activities | ' | ' |
Proceeds from sale of property, plant and equipment | 135 | 0 |
Purchases of property, plant and equipment, net of acquisitions | -15,095 | -4,105 |
Acquisitions, net of cash acquired of $812 and zero, respectively | -8,160 | 0 |
Net cash used in investing activities | -23,120 | -4,105 |
Cash flows from financing activities | ' | ' |
Proceeds from line of credit | 632,900 | 366,950 |
Payments on line of credit | -632,900 | -359,950 |
Proceeds from other debt | 0 | 3,709 |
Payments on other debt | -1,525 | -1,338 |
Payments of purchase price payables | -2,189 | 0 |
Dividends distributed to noncontrolling interest | -990 | -1,109 |
Proceeds from exercise of stock options | 12 | 539 |
Excess tax benefit from equity-based awards | 788 | 800 |
Purchase of treasury stock | -20,466 | -9,850 |
Net cash used in financing activities | -24,370 | -249 |
Effect of exchange rate changes on cash and cash equivalents | -3,687 | 3,926 |
(Decrease) increase in cash and cash equivalents | -37,640 | 6,066 |
Cash and cash equivalents, beginning of period | 158,017 | 164,485 |
Cash and cash equivalents, end of period | 120,377 | 170,551 |
Supplemental disclosures | ' | ' |
Cash paid for interest | 982 | 1,048 |
Cash paid for income taxes | 2,834 | 1,751 |
Non-cash investing and financing activities | ' | ' |
Acquisition of equipment through increase in accounts payable | 941 | 0 |
Contract acquisition costs credited to accounts receivable | $1,000 | $0 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from investing activities | ' | ' |
Acquisitions, net of cash acquired of $812 and zero, respectively | $812 | $0 |
OVERVIEW_AND_BASIS_OF_PRESENTA
OVERVIEW AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | ' |
OVERVIEW AND BASIS OF PRESENTATION | ' |
(1) OVERVIEW AND BASIS OF PRESENTATION | |
Summary of Business | |
TeleTech Holdings, Inc. (“TeleTech” or “the Company”) is a leading provider of customer strategy, analytics-driven and technology-enabled customer engagement management solutions with 41,000 employees delivering services across 25 countries from 54 delivery centers on five continents. | |
We have deep industry expertise and serve more than 250 customer-focused industry leaders in the Global 1000. Our business is structured and reported in four segments: Customer Management Services (“CMS”), Customer Growth Services (“CGS”), Customer Technology Services (“CTS”), and Customer Strategy Services (“CSS”). | |
Basis of Presentation | |
The Consolidated Financial Statements are comprised of the accounts of TeleTech, its wholly owned subsidiaries, its 55% equity owned subsidiary Percepta, LLC, its 80% interest in iKnowtion, LLC, and its 80% interest in Peppers & Rogers Group through the third quarter of 2013 when the final 20% interest was repurchased (see additional information in Note 2). 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, 2014. | |
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, 2013. | |
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 on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including valuation allowances 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. | |
Recently Issued Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance that changes the criteria for reporting a discontinued operation. According to the new guidance, only disposals of a component that represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results is a discontinued operation. The new guidance also requires expanded disclosures about discontinued operations and disposals of a significant part of an entity that does not qualify for discontinued operations reporting. The new standard is effective beginning January 1, 2015 with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously-issued financial statements. The adoption of this guidance will be dependent on any future disposal transactions. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended | |||
Mar. 31, 2014 | ||||
ACQUISITIONS [ABSTRACT] | ' | |||
ACQUISITIONS | ' | |||
(2) ACQUISITIONS | ||||
Sofica | ||||
In the first quarter of 2014, the Company acquired 100% interest in Sofica Group, a Bulgarian joint stock company (“Sofica”). Sofica provides customer lifecycle management and other business process outsourcing services across multiple channels in multiple sites in over 18 languages. | ||||
The total purchase price of $14.5 million, consisted of $9.0 million in up-front cash consideration (inclusive of a working capital adjustment) and earn-out payments payable in 2015 and 2016, if Sofica 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 22% and expected future value of payments of $4.0 million. The $4.0 million of expected future payments was calculated using a bell curve probability weighted EBITDA assessment with the highest probability associated with Sofica achieving the targeted EBITDA for each earn-out year. As of the acquisition date, the fair value of the contingent payments was approximately $3.4 million. As of March 31, 2014, the fair value of the contingent consideration was $3.4 million, of which $2.0 million and $1.4 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 | $ | 812 | ||
Accounts receivable | 3,267 | |||
Other assets | 599 | |||
Property, plant and equipment | 491 | |||
Customer relationships | 3,591 | |||
Goodwill | 7,329 | |||
16,089 | ||||
Accounts payable | 50 | |||
Accrued employee compensation and benefits | 630 | |||
Accrued expenses | 519 | |||
Other | 393 | |||
1,592 | ||||
Total purchase price | $ | 14,497 | ||
The Sofica customer relationships have an estimated useful life of five years. The goodwill recognized from the Sofica acquisition was attributable primarily to the acquired workforce of Sofica, expected synergies, and other factors. The tax basis of the acquired intangibles and goodwill are not deductible for income tax purposes. The acquired goodwill and the operating results of Sofica are reported within the Customer Management Services segment from the date of acquisition. | ||||
Other Acquisitions | ||||
WebMetro | ||||
In the third quarter of 2013, the Company acquired 100% of WebMetro, a California corporation (“WebMetro”), a digital marketing agency. | ||||
The total purchase price was $17.8 million, including $15.3 million in up-front cash consideration (inclusive of a working capital adjustment) and earn-out payments payable in 2014 and 2015, if WebMetro 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 include a discount rate of 5.3% and expected future value of payments of $2.6 million. The $2.6 million of expected future payments was calculated using a bell curve probability weighted EBITDA assessment with the highest probability associated with WebMetro achieving the targeted EBITDA for each earn-out year. As of the acquisition date, the fair value of the contingent payments was approximately $2.5 million. During the first quarter of 2014, the first earn-out payment was completed. As of March 31, 2014, the fair value of the contingent consideration was $1.7 million which was included in Other accrued expenses in the accompanying Consolidated Balance Sheets, respectively. The fair value is higher than the fair value recorded on the acquisition date because WebMetro exceeded expected earnings. | ||||
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. | ||||
Peppers & Rogers Group | ||||
In the third quarter of 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. | ||||
The acquired businesses noted above contributed revenues of $4.8 million and income from operations of $0.3 million, inclusive of $0.6 million of acquired intangible amortization, to the Company for the three months ended March 31, 2014. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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 provides technology-enabled sales and marketing solutions that support revenue generation across the customer lifecycle, including sales advisory, search engine optimization, digital demand generation, lead qualification, and acquisition sales, growth and retention services; | ||||||||||||||||
the Customer Technology Services segment includes operational and design consulting, systems integration, and cloud and on-premise managed services, the requirements needed to design, deliver and maintain best-in-class multichannel customer engagement platforms; and | ||||||||||||||||
the Customer Strategy Services segment provides professional services in customer experience strategy, customer intelligence analytics, system and operational process optimization, and culture development and knowledge management. | ||||||||||||||||
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): | ||||||||||||||||
Quarter Ended March 31, 2014 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 227,924 | $ | - | $ | 227,924 | $ | 9,465 | $ | 20,823 | ||||||
Customer Growth Services | 28,905 | - | 28,905 | 1,556 | 1,770 | |||||||||||
Customer Technology Services | 32,779 | -3 | 32,776 | 1,715 | 311 | |||||||||||
Customer Strategy Services | 12,616 | - | 12,616 | 434 | 1,453 | |||||||||||
Total | $ | 302,224 | $ | -3 | $ | 302,221 | $ | 13,170 | $ | 24,357 | ||||||
Quarter Ended March 31, 2013 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 222,889 | $ | -307 | $ | 222,582 | $ | 7,862 | $ | 20,731 | ||||||
Customer Growth Services | 22,856 | - | 22,856 | 697 | 1,276 | |||||||||||
Customer Technology Services | 33,646 | -84 | 33,562 | 1,516 | 2,898 | |||||||||||
Customer Strategy Services | 9,930 | -547 | 9,383 | 480 | -1,907 | |||||||||||
Total | $ | 289,321 | $ | -938 | $ | 288,383 | $ | 10,555 | $ | 22,998 | ||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Capital Expenditures | ||||||||||||||||
Customer Management Services | $ | 9,912 | $ | 2,286 | ||||||||||||
Customer Growth Services | 380 | 316 | ||||||||||||||
Customer Technology Services | 4,631 | 1,328 | ||||||||||||||
Customer Strategy Services | 172 | 175 | ||||||||||||||
Total | $ | 15,095 | $ | 4,105 | ||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Total Assets | ||||||||||||||||
Customer Management Services | $ | 546,007 | $ | 554,015 | ||||||||||||
Customer Growth Services | 87,897 | 86,416 | ||||||||||||||
Customer Technology Services | 152,103 | 157,040 | ||||||||||||||
Customer Strategy Services | 45,933 | 44,871 | ||||||||||||||
Total | $ | 831,940 | $ | 842,342 | ||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Goodwill | ||||||||||||||||
Customer Management Services | $ | 27,279 | $ | 19,819 | ||||||||||||
Customer Growth Services | 30,128 | 30,128 | ||||||||||||||
Customer Technology Services | 42,709 | 42,709 | ||||||||||||||
Customer Strategy Services | 10,437 | 10,087 | ||||||||||||||
Total | $ | 110,553 | $ | 102,743 | ||||||||||||
The following table presents revenue based upon the geographic location where the services are provided (amounts in thousands): | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Revenue | ||||||||||||||||
United States | $ | 146,469 | $ | 131,747 | ||||||||||||
Philippines | 86,666 | 86,108 | ||||||||||||||
Latin America | 42,046 | 45,028 | ||||||||||||||
Europe / Middle East / Africa | 19,217 | 16,984 | ||||||||||||||
Asia Pacific | 6,400 | 4,226 | ||||||||||||||
Canada | 1,423 | 4,290 | ||||||||||||||
Total | $ | 302,221 | $ | 288,383 | ||||||||||||
SIGNIFICANT_CLIENTS_AND_OTHER_
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS | 3 Months Ended |
Mar. 31, 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 months ended March 31, 2014. This client operates in the communications industry and is included in the Customer Management Services segment. This client contributed 11.6% and 11.9% of total revenue for the three months ended March 31, 2014 and 2013. This client had an outstanding receivable balance of $30.4 million and $25.0 million as of March 31, 2014 and 2013. | |
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 March 31, 2014. |
GOODWILL
GOODWILL | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
GOODWILL [ABSTRACT] | ' | |||||||||||||||
GOODWILL | ' | |||||||||||||||
(5) GOODWILL | ||||||||||||||||
Goodwill consisted of the following (amounts in thousands): | ||||||||||||||||
31-Dec-13 | Acquisitions/ Adjustments | Impairments | Effect of Foreign Currency | 31-Mar-14 | ||||||||||||
Customer Management Services | $ | 19,819 | $ | 7,329 | $ | - | $ | 131 | $ | 27,279 | ||||||
Customer Growth Services | 30,128 | - | - | - | 30,128 | |||||||||||
Customer Technology Services | 42,709 | - | - | - | 42,709 | |||||||||||
Customer Strategy Services | 10,087 | 350 | - | - | 10,437 | |||||||||||
Total | $ | 102,743 | $ | 7,679 | $ | - | $ | 131 | $ | 110,553 | ||||||
The Company performs a goodwill impairment assessment 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. During the quarter ended March 31, 2014, the Company assessed whether any such indicators of impairment existed and concluded there were none. |
DERIVATIVES
DERIVATIVES | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
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 considers, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company's creditworthiness. As of March 31, 2014, 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 months ended March 31, 2014 and 2013 (amounts in thousands and net of tax): | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Aggregate unrealized net gain/(loss) at beginning of year | $ | -8,352 | $ | 9,559 | |||||||||||||||
Add: Net gain/(loss) from change in fair value of cash flow hedges | -3,649 | 4,099 | |||||||||||||||||
Less: Net (gain)/loss reclassified to earnings from effective hedges | 1,115 | -1,919 | |||||||||||||||||
Aggregate unrealized net gain/(loss) at end of period | $ | -10,886 | $ | 11,739 | |||||||||||||||
The Company's foreign exchange cash flow hedging instruments as of March 31, 2014 and December 31, 2013 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts unless noted otherwise. | |||||||||||||||||||
As of March 31, 2014 | Local Currency Notional Amount | U.S. Dollar Notional Amount | % Maturing in the Next 12 Months | Contracts Maturing Through | |||||||||||||||
Canadian Dollar | 6,000 | $ | 5,857 | 87.5 | % | Jun-15 | |||||||||||||
Philippine Peso | 16,416,000 | 382,668 | (1) | 37.7 | % | Dec-18 | |||||||||||||
Mexican Peso | 2,356,500 | 168,458 | 29.9 | % | Dec-18 | ||||||||||||||
British Pound Sterling | 600 | 926 | 100 | % | Jun-14 | ||||||||||||||
$ | 557,909 | ||||||||||||||||||
As of December 31, 2013 | Local Currency Notional Amount | U.S. Dollar Notional Amount | |||||||||||||||||
Canadian Dollar | 7,500 | $ | 7,336 | ||||||||||||||||
Philippine Peso | 17,355,000 | 404,638 | (1) | ||||||||||||||||
Mexican Peso | 2,305,500 | 166,132 | |||||||||||||||||
British Pound Sterling | 1,200 | 1,853 | (2) | ||||||||||||||||
New Zealand Dollar | 150 | 117 | |||||||||||||||||
$ | 580,076 | ||||||||||||||||||
(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 March 31, 2014 and December 31, 2013. | |||||||||||||||||||
(2) Includes contracts to purchase British pound sterling in exchange for Euros, which are translated into equivalent U.S. dollars on December 31, 2013. | |||||||||||||||||||
The Company's interest rate swap arrangements as of March 31, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||
Notional Amount | Variable Rate Received | Fixed Rate Paid | Contract Commencement Date | Contract Maturity Date | |||||||||||||||
As of March 31, 2014 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | ||||||||||||
and December 31, 2013 | 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 March 31, 2014 and December 31, 2013 the total notional amount of the Company's forward contracts used as fair value hedges were $229.5 million and $204.5 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 December 31, 2013, the fair value of the embedded derivative was $0.1 million and was included in Other current liabilities in the accompanying Consolidated Balance Sheets as shown in the table below. As of March 31, 2014, the lease had expired and thus the embedded derivative value was reduced to zero. | |||||||||||||||||||
Derivative Valuation and Settlements | |||||||||||||||||||
The Company's derivatives as of March 31, 2014 and December 31, 2013 were as follows (amounts in thousands): | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
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 | $ | 2,368 | $ | - | $ | 142 | $ | - | |||||||||||
Other long-term assets | 2,529 | - | - | - | |||||||||||||||
Other current liabilities | -8,346 | -1,045 | -319 | - | |||||||||||||||
Other long-term liabilities | -12,069 | -943 | - | - | |||||||||||||||
Total fair value of derivatives, net | $ | -15,518 | $ | -1,988 | $ | -177 | $ | - | |||||||||||
31-Dec-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 | $ | 3,379 | $ | - | $ | 97 | $ | - | |||||||||||
Other long-term assets | 1,439 | - | - | - | |||||||||||||||
Other current liabilities | -4,595 | -1,028 | -815 | -116 | |||||||||||||||
Other long-term liabilities | -11,708 | -1,124 | - | - | |||||||||||||||
Total fair value of derivatives, net | $ | -11,485 | $ | -2,152 | $ | -718 | $ | -116 | |||||||||||
The effects of derivative instruments on the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013 were as follows (amounts in thousands): | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
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: | $ | -3,592 | $ | -57 | $ | 4,178 | $ | -79 | |||||||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||||||
from accumulated OCI to income - effective portion: | |||||||||||||||||||
Revenue | $ | -1,570 | $ | - | $ | 3,460 | $ | - | |||||||||||
Interest Expense | - | -258 | - | -257 | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
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: | |||||||||||||||||||
Costs of services | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -69 | |||||||
Other income (expense), net | $ | - | $ | 619 | $ | - | $ | - | $ | 1,438 | $ | - | |||||||
FAIR_VALUE
FAIR VALUE | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
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 March 31, 2014 and December 31, 2013 of 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 March 31, 2014 and December 31, 2013, the Company had $100.0 million and $100.0 million, respectively, of borrowings outstanding under the Credit Agreement. During the first quarter of 2014 outstanding borrowings accrued interest at an average rate of 1.2% per annum, 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 March 31, 2014, 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 March 31, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||||
As of March 31, 2014 | |||||||||||||||
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 | $ | - | $ | -15,518 | $ | - | $ | -15,518 | |||||||
Interest rate swaps | - | -1,988 | - | -1,988 | |||||||||||
Fair value hedges | - | -177 | - | -177 | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -17,683 | $ | - | $ | -17,683 | |||||||
As of December 31, 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 | $ | - | $ | -11,485 | $ | - | $ | -11,485 | |||||||
Interest rate swaps | - | -2,152 | - | -2,152 | |||||||||||
Fair value hedges | - | -718 | - | -718 | |||||||||||
Embedded derivatives | - | -116 | - | -116 | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -14,471 | $ | - | $ | -14,471 | |||||||
The following is a summary of the Company's fair value measurements as of March 31, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||||
As of March 31, 2014 | |||||||||||||||
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 | $ | - | $ | -7,650 | $ | - | |||||||||
Derivative instruments, net | -17,683 | ||||||||||||||
Purchase price payable | - | - | -22,509 | ||||||||||||
Total liabilities | $ | - | $ | -25,333 | $ | -22,509 | |||||||||
As of December 31, 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 | $ | - | $ | -6,829 | $ | - | |||||||||
Derivative instruments, net | - | -14,471 | - | ||||||||||||
Purchase price payable | - | - | -21,748 | ||||||||||||
Total liabilities | $ | - | $ | -21,300 | $ | -21,748 | |||||||||
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, WebMetro and Sofica. 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%, 5.3% or 22.0%, respectively. The discount rates vary dependant on the specific risks of each acquisition including the country of operation, the nature of services and complexity of the acquired business, and other similar factors. 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 $23.9 million. Interest expense related to all recorded purchase price payables is included in Interest expense in the Consolidated Statements of Comprehensive Income. | |||||||||||||||
A rollforward of the activity in the Company's fair value of the purchase price payable is as follows (amounts in thousands): | |||||||||||||||
31-Dec-13 | Acquisitions | Payments | Imputed Interest / Adjustments | 31-Mar-14 | |||||||||||
iKnowtion | $ | 3,470 | $ | - | $ | -1,400 | $ | 69 | $ | 2,139 | |||||
Guidon | 2,637 | - | -1,426 | 39 | 1,250 | ||||||||||
TSG | 12,933 | - | - | 79 | 13,012 | ||||||||||
WebMetro | 2,708 | - | - | -35 | 2,673 | ||||||||||
Sofica | - | 3,435 | - | - | 3,435 | ||||||||||
Total | $ | 21,748 | $ | 3,435 | $ | -2,826 | $ | 152 | $ | 22,509 | |||||
Subsequent to March 31, 2014, an additional $6.3 million of payments were completed in accordance with the acquisition agreements. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2014 | |
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. | |
During the first quarter of 2014, a benefit of $1.2 million was recorded due to the closing of statutes of limitations in Canada. | |
As of March 31, 2014, the Company had $53.3 million of gross deferred tax assets (after a $9.9 million valuation allowance) and net deferred tax assets (after deferred tax liabilities) of $51.2 million related to the U.S. and international tax jurisdictions whose recoverability is dependent upon future profitability. | |
The effective tax rate for the three months ended March 31, 2014 and 2013 was 11.9% and 11.4%, respectively. | |
The Company's U.S. income tax returns filed for the tax years ending December 31, 2009 to present remain open tax years. The Company has been notified of the intent to audit, or is currently under audit, of income taxes in the U.S. for tax years 2009, 2011 and 2012, Canada for tax years 2009 and 2010 and the Netherlands for tax year 2010. 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 | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | ' | |||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | ' | |||||||||
(9) RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | ||||||||||
Restructuring Charges | ||||||||||
During the three months ended March 31, 2014 and 2013, the Company undertook restructuring activities primarily associated with reductions in the Company's capacity and workforce in several of its segments to better align the capacity and workforce with current business needs. | ||||||||||
A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Comprehensive Income for the three months ended March 31, 2014 and 2013, respectively, is as follows (amounts in thousands): | ||||||||||
Three Months Ended March 31, | ||||||||||
2014 | 2013 | |||||||||
Reduction in force | ||||||||||
Customer Management Services | $ | 511 | $ | 694 | ||||||
Customer Growth Services | 29 | - | ||||||||
Customer Technology Services | - | - | ||||||||
Customer Strategy Services | - | 157 | ||||||||
Total | $ | 540 | $ | 851 | ||||||
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, 2013 | $ | - | $ | 1,353 | $ | 1,353 | ||||
Expense | - | 540 | 540 | |||||||
Payments | - | -628 | -628 | |||||||
Changes in estimates | - | - | - | |||||||
Balance as of March 31, 2014 | $ | - | $ | 1,265 | $ | 1,265 | ||||
The remaining restructuring accruals are expected to be paid or extinguished during 2014 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 its 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 months ended March 31, 2014 and 2013, the Company recognized no losses related to leasehold improvement assets. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
(10) COMMITMENTS AND CONTINGENCIES | |
Credit Facility | |
In the second quarter of 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. | |
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 March 31, 2014 and December 31, 2013, the Company had borrowings of $100.0 million and $100.0 million, respectively, under its Credit Agreement, and its average daily utilization was $270.9 million and $219.6 million for the three months ended March 31, 2014 and 2013, respectively. After consideration for issued letters of credit under the Credit Agreement, totaling $3.5 million, the Company's remaining borrowing capacity was $596.5 million as of March 31, 2014. As of March 31, 2014, the Company was in compliance with all covenants and conditions under its Credit Agreement. | |
From time-to-time, the Company has unsecured, uncommitted lines of credit to support working capital for a few foreign subsidiaries. As of March 31, 2014 and 2013, no foreign loans were outstanding. | |
Letters of Credit | |
As of March 31, 2014, outstanding letters of credit under the Credit Agreement totaled $3.5 million and primarily guaranteed workers' compensation and other insurance related obligations. As of March 31, 2014, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $0.9 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. The Company accrues for exposures associated with such legal actions to the extent that losses are deemed both probable and estimable. To the extent specific reserves have not been made for certain legal proceedings, their ultimate outcome, and consequently, an estimate of possible loss, if any, cannot reasonably be determined at this time. | |
In the fourth quarter of 2012, a class action complaint was filed in the State of California against a TeleTech subsidiary and Google Inc. (“Google”), as co-defendants. Pursuant to its contractual commitments, the Company has agreed to indemnify Google for costs and expenses related to the complaint. The Company settled the matter for an immaterial amount during the first quarter of 2014. | |
Based on currently available information and advice received from counsel, the Company believes that the disposition or ultimate resolution of its legal proceedings, except as otherwise specifically reserved for in its financial statements, will not have a material adverse effect on the Company's financial position, cash flows or results of operations. |
NONCONTROLLING_INTEREST
NONCONTROLLING INTEREST | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
NONCONTROLLING INTEREST [Abstract] | ' | ||||||
NONCONTROLLING INTEREST | ' | ||||||
(11) NONCONTROLLING INTEREST | |||||||
The following table reconciles equity attributable to noncontrolling interest (amounts in thousands): | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Noncontrolling interest, January 1 | $ | 8,081 | $ | 14,045 | |||
Net income attributable to noncontrolling interest | 957 | 642 | |||||
Dividends distributed to noncontrolling interest | -990 | -1,109 | |||||
Foreign currency translation adjustments | 35 | -90 | |||||
Equity based compensation expense | 8 | 8 | |||||
Noncontrolling interest, March 31 | $ | 8,091 | $ | 13,496 | |||
MANDATORILY_REDEEMABLE_NONCONT
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Mandatorily Redeemable Noncontrolling Interest [Abstract] | ' | ||||||
Mandatorily Redeemable Noncontrolling Interest | ' | ||||||
(12) MANDATORILY REDEEMABLE NONCONTROLLING INTEREST | |||||||
The Company holds an 80% interest in iKnowtion. 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 iKnowtion's 2015 EBITDA as defined in the purchase and sale agreement. These terms represent a contingent redemption feature which the Company determined is probable of being achieved. | |||||||
The Company has recorded the mandatorily redeemable noncontrolling interest at the redemption value based on the corresponding EBITDA multiples as prescribed in the purchase and sale agreement at the end of each reporting period. At the end of each reporting period the changes in the redemption value are recorded in retained earnings. Since the EBITDA multiples as defined in the purchase and sale agreement are below the current market multiple, the Company has determined that there is no preferential treatment to the noncontrolling interest shareholders resulting in no impact to earnings per share. | |||||||
A rollforward of the mandatorily redeemable noncontrolling interest is included in the table below. | |||||||
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Mandatorily redeemable noncontrolling interest, January 1 | $ | 2,509 | $ | 1,067 | |||
Net income attributable to mandatorily redeemable noncontrolling | - | ||||||
interest | 128 | 41 | |||||
Dividends distributed to mandatorily redeemable noncontrolling | |||||||
interest | - | - | |||||
Change in redemption value | -175 | - | |||||
Mandatorily redeemable noncontrolling interest, March 31 | $ | 2,462 | $ | 1,108 | |||
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Mandatorily redeemable noncontrolling interest, January 1 | $ | 2,509 | $ | 1,067 | |||
Net income attributable to mandatorily redeemable noncontrolling | - | ||||||
interest | 128 | 41 | |||||
Dividends distributed to mandatorily redeemable noncontrolling | |||||||
interest | - | - | |||||
Change in redemption value | -175 | - | |||||
Mandatorily redeemable noncontrolling interest, March 31 | $ | 2,462 | $ | 1,108 | |||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | ' | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
(13) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||
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, 2013 | $ | -10,581 | $ | -8,352 | $ | -1,653 | $ | -20,586 | ||||||
Other comprehensive (loss) income before reclassifications | -1,758 | -3,649 | 187 | -5,220 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income | - | 1,115 | 89 | 1,204 | ||||||||||
Net current period other comprehensive income | -1,758 | -2,534 | 276 | -4,016 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at March 31, 2014 | $ | -12,339 | $ | -10,886 | $ | -1,377 | $ | -24,602 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2012 | $ | 15,673 | $ | 9,559 | $ | -2,251 | $ | 22,981 | ||||||
Other comprehensive income before reclassifications | 3,224 | 4,099 | 14 | 7,337 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income | - | -1,919 | 148 | -1,771 | ||||||||||
Net current period other comprehensive income | 3,224 | 2,180 | 162 | 5,566 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at March 31, 2013 | $ | 18,897 | $ | 11,739 | $ | -2,089 | $ | 28,547 | ||||||
The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income to the statement of comprehensive income (in thousands): | ||||||||||||||
For the Three Months Ended | ||||||||||||||
31-Mar-14 | 31-Mar-13 | Statement of Comprehensive Income Classification | ||||||||||||
Derivative valuation | ||||||||||||||
Gain (loss) on foreign currency forward | ||||||||||||||
exchange contracts | $ | -1,570 | $ | 3,460 | Revenue | |||||||||
Loss on interest rate swaps | -258 | -257 | Interest expense | |||||||||||
Tax effect | 713 | -1,284 | Provision for income taxes | |||||||||||
$ | -1,115 | $ | 1,919 | Net income | ||||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -95 | $ | -157 | Cost of services | |||||||||
Tax effect | 6 | 9 | Provision for income taxes | |||||||||||
$ | -89 | $ | -148 | Net (loss) | ||||||||||
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
NET INCOME PER SHARE [Abstract] | ' | |||||||
NET INCOME PER SHARE | ' | |||||||
(14) 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 March 31, | ||||||||
2014 | 2013 | |||||||
Shares used in basic earnings per share calculation | 50,045 | 52,347 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 411 | 391 | ||||||
Restricted stock units | 517 | 479 | ||||||
Performance-based restricted stock units | - | - | ||||||
Total effects of dilutive securities | 928 | 870 | ||||||
Shares used in dilutive earnings per share calculation | 50,973 | 53,217 | ||||||
For the three months ended March 31, 2014 and 2013, 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 three months ended March 31, 2014 and 2013, restricted stock units (“RSUs”) of 0.3 million and 0.4 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 | 3 Months Ended |
Mar. 31, 2014 | |
EQUITY-BASED COMPENSATION PLANS [Abstract] | ' |
EQUITY-BASED COMPENSATION PLANS | ' |
(15) 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 months ended March 31, 2014 and 2013, the Company recognized total compensation expense of $3.2 million and $3.2 million, respectively. Of the total compensation expense, $0.6 million and $0.5 million was recognized in Cost of services and $2.6 million and $2.7 million was recognized in Selling, general and administrative. | |
Stock Options | |
As of March 31, 2014, there was approximately $0.2 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 March 31, 2014 and 2013, respectively. | |
Restricted Stock Unit Grants | |
During the three months ended March 31, 2014 and 2013, the Company granted 164,000 and 122,000 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 $3.0 million and $3.1 million for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, there was approximately $25.3 million of total unrecognized compensation cost (including the impact of expected forfeitures) related to RSUs granted under the Company's equity plans. | |
As of March 31, 2014 and 2013, 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 months ended March 31, 2014 or 2013. |
DECONSOLIDATION_OF_SUBSIDIARY
DECONSOLIDATION OF SUBSIDIARY | 3 Months Ended |
Mar. 31, 2014 | |
DECONSOLIDATION OF SUBSIDIARY [ABSTRACT] | ' |
DECONSOLIDATION OF SUBSIDIARY | ' |
(16) 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 CSS 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 during the second quarter of 2013. During the first quarter of 2014, the Company entered into an agreement with PRG Kuwait's other shareholders to sell its 48% interest in the company for $175 thousand, payable at closing which is expected during the second quarter of 2014. |
OVERVIEW_AND_BASIS_OF_PRESENTA1
OVERVIEW AND BASIS OF PRESENTATION (POLICIES) | 3 Months Ended |
Mar. 31, 2014 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | ' |
Overview | ' |
Summary of Business | |
TeleTech Holdings, Inc. (“TeleTech” or “the Company”) is a leading provider of customer strategy, analytics-driven and technology-enabled customer engagement management solutions with 41,000 employees delivering services across 25 countries from 54 delivery centers on five continents. | |
We have deep industry expertise and serve more than 250 customer-focused industry leaders in the Global 1000. Our business is structured and reported in four segments: Customer Management Services (“CMS”), Customer Growth Services (“CGS”), Customer Technology Services (“CTS”), and Customer Strategy Services (“CSS”). | |
Basis Of Presentation | ' |
Basis of Presentation | |
The Consolidated Financial Statements are comprised of the accounts of TeleTech, its wholly owned subsidiaries, its 55% equity owned subsidiary Percepta, LLC, its 80% interest in iKnowtion, LLC, and its 80% interest in Peppers & Rogers Group through the third quarter of 2013 when the final 20% interest was repurchased (see additional information in Note 2). 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, 2014. | |
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, 2013. | |
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 on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including valuation allowances 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. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance that changes the criteria for reporting a discontinued operation. According to the new guidance, only disposals of a component that represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results is a discontinued operation. The new guidance also requires expanded disclosures about discontinued operations and disposals of a significant part of an entity that does not qualify for discontinued operations reporting. The new standard is effective beginning January 1, 2015 with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in previously-issued financial statements. The adoption of this guidance will be dependent on any future disposal transactions. |
ACQUISITIONS_TABLES
ACQUISITIONS (TABLES) (Sofica [Member]) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Sofica [Member] | ' | |||
Business Acquisition [Line Items] | ' | |||
Schedule of Assets Acquired and Liabilities Assumed | ' | |||
Preliminary Estimate of Acquisition Date Fair Value | ||||
Cash | $ | 812 | ||
Accounts receivable | 3,267 | |||
Other assets | 599 | |||
Property, plant and equipment | 491 | |||
Customer relationships | 3,591 | |||
Goodwill | 7,329 | |||
16,089 | ||||
Accounts payable | 50 | |||
Accrued employee compensation and benefits | 630 | |||
Accrued expenses | 519 | |||
Other | 393 | |||
1,592 | ||||
Total purchase price | $ | 14,497 | ||
SEGMENT_INFORMATION_TABLES
SEGMENT INFORMATION (TABLES) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
SEGMENT INFORMATION [ABSTRACT] | ' | |||||||||||||||
Schedule of Segment Selected Financial Data | ' | |||||||||||||||
Quarter Ended March 31, 2014 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 227,924 | $ | - | $ | 227,924 | $ | 9,465 | $ | 20,823 | ||||||
Customer Growth Services | 28,905 | - | 28,905 | 1,556 | 1,770 | |||||||||||
Customer Technology Services | 32,779 | -3 | 32,776 | 1,715 | 311 | |||||||||||
Customer Strategy Services | 12,616 | - | 12,616 | 434 | 1,453 | |||||||||||
Total | $ | 302,224 | $ | -3 | $ | 302,221 | $ | 13,170 | $ | 24,357 | ||||||
Quarter Ended March 31, 2013 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 222,889 | $ | -307 | $ | 222,582 | $ | 7,862 | $ | 20,731 | ||||||
Customer Growth Services | 22,856 | - | 22,856 | 697 | 1,276 | |||||||||||
Customer Technology Services | 33,646 | -84 | 33,562 | 1,516 | 2,898 | |||||||||||
Customer Strategy Services | 9,930 | -547 | 9,383 | 480 | -1,907 | |||||||||||
Total | $ | 289,321 | $ | -938 | $ | 288,383 | $ | 10,555 | $ | 22,998 | ||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Capital Expenditures | ||||||||||||||||
Customer Management Services | $ | 9,912 | $ | 2,286 | ||||||||||||
Customer Growth Services | 380 | 316 | ||||||||||||||
Customer Technology Services | 4,631 | 1,328 | ||||||||||||||
Customer Strategy Services | 172 | 175 | ||||||||||||||
Total | $ | 15,095 | $ | 4,105 | ||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Total Assets | ||||||||||||||||
Customer Management Services | $ | 546,007 | $ | 554,015 | ||||||||||||
Customer Growth Services | 87,897 | 86,416 | ||||||||||||||
Customer Technology Services | 152,103 | 157,040 | ||||||||||||||
Customer Strategy Services | 45,933 | 44,871 | ||||||||||||||
Total | $ | 831,940 | $ | 842,342 | ||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Goodwill | ||||||||||||||||
Customer Management Services | $ | 27,279 | $ | 19,819 | ||||||||||||
Customer Growth Services | 30,128 | 30,128 | ||||||||||||||
Customer Technology Services | 42,709 | 42,709 | ||||||||||||||
Customer Strategy Services | 10,437 | 10,087 | ||||||||||||||
Total | $ | 110,553 | $ | 102,743 | ||||||||||||
Schedule of Revenue by Geographic Area | ' | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Revenue | ||||||||||||||||
United States | $ | 146,469 | $ | 131,747 | ||||||||||||
Philippines | 86,666 | 86,108 | ||||||||||||||
Latin America | 42,046 | 45,028 | ||||||||||||||
Europe / Middle East / Africa | 19,217 | 16,984 | ||||||||||||||
Asia Pacific | 6,400 | 4,226 | ||||||||||||||
Canada | 1,423 | 4,290 | ||||||||||||||
Total | $ | 302,221 | $ | 288,383 | ||||||||||||
GOODWILL_TABLES
GOODWILL (TABLES) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
GOODWILL [ABSTRACT] | ' | |||||||||||||||
Schedule of Goodwill Rollforward | ' | |||||||||||||||
31-Dec-13 | Acquisitions/ Adjustments | Impairments | Effect of Foreign Currency | 31-Mar-14 | ||||||||||||
Customer Management Services | $ | 19,819 | $ | 7,329 | $ | - | $ | 131 | $ | 27,279 | ||||||
Customer Growth Services | 30,128 | - | - | - | 30,128 | |||||||||||
Customer Technology Services | 42,709 | - | - | - | 42,709 | |||||||||||
Customer Strategy Services | 10,087 | 350 | - | - | 10,437 | |||||||||||
Total | $ | 102,743 | $ | 7,679 | $ | - | $ | 131 | $ | 110,553 | ||||||
DERIVATIVES_TABLES
DERIVATIVES (TABLES) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
DERIVATIVES [ABSTRACT] | ' | ||||||||||||||||||
Schedule of Cash Flow Hedges OCI Rollforward | ' | ||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Aggregate unrealized net gain/(loss) at beginning of year | $ | -8,352 | $ | 9,559 | |||||||||||||||
Add: Net gain/(loss) from change in fair value of cash flow hedges | -3,649 | 4,099 | |||||||||||||||||
Less: Net (gain)/loss reclassified to earnings from effective hedges | 1,115 | -1,919 | |||||||||||||||||
Aggregate unrealized net gain/(loss) at end of period | $ | -10,886 | $ | 11,739 | |||||||||||||||
Schedule of Notional Amounts of Outstanding Cash Flow Hedges | ' | ||||||||||||||||||
As of March 31, 2014 | Local Currency Notional Amount | U.S. Dollar Notional Amount | % Maturing in the Next 12 Months | Contracts Maturing Through | |||||||||||||||
Canadian Dollar | 6,000 | $ | 5,857 | 87.5 | % | Jun-15 | |||||||||||||
Philippine Peso | 16,416,000 | 382,668 | (1) | 37.7 | % | Dec-18 | |||||||||||||
Mexican Peso | 2,356,500 | 168,458 | 29.9 | % | Dec-18 | ||||||||||||||
British Pound Sterling | 600 | 926 | 100 | % | Jun-14 | ||||||||||||||
$ | 557,909 | ||||||||||||||||||
As of December 31, 2013 | Local Currency Notional Amount | U.S. Dollar Notional Amount | |||||||||||||||||
Canadian Dollar | 7,500 | $ | 7,336 | ||||||||||||||||
Philippine Peso | 17,355,000 | 404,638 | (1) | ||||||||||||||||
Mexican Peso | 2,305,500 | 166,132 | |||||||||||||||||
British Pound Sterling | 1,200 | 1,853 | (2) | ||||||||||||||||
New Zealand Dollar | 150 | 117 | |||||||||||||||||
$ | 580,076 | ||||||||||||||||||
(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 March 31, 2014 and December 31, 2013. | |||||||||||||||||||
(2) Includes contracts to purchase British pound sterling in exchange for Euros, which are translated into equivalent U.S. dollars on December 31, 2013. | |||||||||||||||||||
Schedule of Interest Rate Swaps | ' | ||||||||||||||||||
Notional Amount | Variable Rate Received | Fixed Rate Paid | Contract Commencement Date | Contract Maturity Date | |||||||||||||||
As of March 31, 2014 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | ||||||||||||
and December 31, 2013 | 15 million | 1 - month LIBOR | 3.14 | % | May-12 | May-17 | |||||||||||||
$ | 40 million | ||||||||||||||||||
Schedule of Derivatives Instruments on Balance Sheet | ' | ||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
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 | $ | 2,368 | $ | - | $ | 142 | $ | - | |||||||||||
Other long-term assets | 2,529 | - | - | - | |||||||||||||||
Other current liabilities | -8,346 | -1,045 | -319 | - | |||||||||||||||
Other long-term liabilities | -12,069 | -943 | - | - | |||||||||||||||
Total fair value of derivatives, net | $ | -15,518 | $ | -1,988 | $ | -177 | $ | - | |||||||||||
31-Dec-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 | $ | 3,379 | $ | - | $ | 97 | $ | - | |||||||||||
Other long-term assets | 1,439 | - | - | - | |||||||||||||||
Other current liabilities | -4,595 | -1,028 | -815 | -116 | |||||||||||||||
Other long-term liabilities | -11,708 | -1,124 | - | - | |||||||||||||||
Total fair value of derivatives, net | $ | -11,485 | $ | -2,152 | $ | -718 | $ | -116 | |||||||||||
Schedule of Derivative Impact on Statement of Comprehensive Income | ' | ||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
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: | $ | -3,592 | $ | -57 | $ | 4,178 | $ | -79 | |||||||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||||||
from accumulated OCI to income - effective portion: | |||||||||||||||||||
Revenue | $ | -1,570 | $ | - | $ | 3,460 | $ | - | |||||||||||
Interest Expense | - | -258 | - | -257 | |||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
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: | |||||||||||||||||||
Costs of services | $ | - | $ | - | $ | - | $ | - | $ | - | $ | -69 | |||||||
Other income (expense), net | $ | - | $ | 619 | $ | - | $ | - | $ | 1,438 | $ | - | |||||||
FAIR_VALUE_TABLES
FAIR VALUE (TABLES) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
FAIR VALUE [Abstract] | ' | ||||||||||||||
Schedule of Fair Value Derivative Assets and Liabilities | ' | ||||||||||||||
As of March 31, 2014 | |||||||||||||||
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 | $ | - | $ | -15,518 | $ | - | $ | -15,518 | |||||||
Interest rate swaps | - | -1,988 | - | -1,988 | |||||||||||
Fair value hedges | - | -177 | - | -177 | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -17,683 | $ | - | $ | -17,683 | |||||||
As of December 31, 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 | $ | - | $ | -11,485 | $ | - | $ | -11,485 | |||||||
Interest rate swaps | - | -2,152 | - | -2,152 | |||||||||||
Fair value hedges | - | -718 | - | -718 | |||||||||||
Embedded derivatives | - | -116 | - | -116 | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -14,471 | $ | - | $ | -14,471 | |||||||
Schedule of Fair Value Assets and Liabilities | ' | ||||||||||||||
As of March 31, 2014 | |||||||||||||||
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 | $ | - | $ | -7,650 | $ | - | |||||||||
Derivative instruments, net | -17,683 | ||||||||||||||
Purchase price payable | - | - | -22,509 | ||||||||||||
Total liabilities | $ | - | $ | -25,333 | $ | -22,509 | |||||||||
As of December 31, 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 | $ | - | $ | -6,829 | $ | - | |||||||||
Derivative instruments, net | - | -14,471 | - | ||||||||||||
Purchase price payable | - | - | -21,748 | ||||||||||||
Total liabilities | $ | - | $ | -21,300 | $ | -21,748 | |||||||||
Schedule of Business Acquistions by Acquisition Contingent Consideration | ' | ||||||||||||||
31-Dec-13 | Acquisitions | Payments | Imputed Interest / Adjustments | 31-Mar-14 | |||||||||||
iKnowtion | $ | 3,470 | $ | - | $ | -1,400 | $ | 69 | $ | 2,139 | |||||
Guidon | 2,637 | - | -1,426 | 39 | 1,250 | ||||||||||
TSG | 12,933 | - | - | 79 | 13,012 | ||||||||||
WebMetro | 2,708 | - | - | -35 | 2,673 | ||||||||||
Sofica | - | 3,435 | - | - | 3,435 | ||||||||||
Total | $ | 21,748 | $ | 3,435 | $ | -2,826 | $ | 152 | $ | 22,509 | |||||
RESTRUCTURING_CHARGES_AND_IMPA1
RESTRUCTURING CHARGES AND IMPAIRMENT (TABLES) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | ' | |||||||||
Schedule of Restructuring Liabilities | ' | |||||||||
Three Months Ended March 31, | ||||||||||
2014 | 2013 | |||||||||
Reduction in force | ||||||||||
Customer Management Services | $ | 511 | $ | 694 | ||||||
Customer Growth Services | 29 | - | ||||||||
Customer Technology Services | - | - | ||||||||
Customer Strategy Services | - | 157 | ||||||||
Total | $ | 540 | $ | 851 | ||||||
Schedule of Restructuring Liability Rollforward | ' | |||||||||
Closure of Delivery Centers | Reduction in Force | Total | ||||||||
Balance as of December 31, 2013 | $ | - | $ | 1,353 | $ | 1,353 | ||||
Expense | - | 540 | 540 | |||||||
Payments | - | -628 | -628 | |||||||
Changes in estimates | - | - | - | |||||||
Balance as of March 31, 2014 | $ | - | $ | 1,265 | $ | 1,265 | ||||
NONCONTROLLING_INTEREST_TABLES
NONCONTROLLING INTEREST (TABLES) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
NONCONTROLLING INTEREST [Abstract] | ' | ||||||
Noncontrolling Interest Rollforward | ' | ||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Noncontrolling interest, January 1 | $ | 8,081 | $ | 14,045 | |||
Net income attributable to noncontrolling interest | 957 | 642 | |||||
Dividends distributed to noncontrolling interest | -990 | -1,109 | |||||
Foreign currency translation adjustments | 35 | -90 | |||||
Equity based compensation expense | 8 | 8 | |||||
Noncontrolling interest, March 31 | $ | 8,091 | $ | 13,496 | |||
MANDATORILY_REDEEMABLE_NONCONT1
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (TABLES) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Mandatorily Redeemable Noncontrolling Interest [Abstract] | ' | ||||||
Mandatorily Redeemable Noncontrolling Interest | ' | ||||||
(12) MANDATORILY REDEEMABLE NONCONTROLLING INTEREST | |||||||
The Company holds an 80% interest in iKnowtion. 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 iKnowtion's 2015 EBITDA as defined in the purchase and sale agreement. These terms represent a contingent redemption feature which the Company determined is probable of being achieved. | |||||||
The Company has recorded the mandatorily redeemable noncontrolling interest at the redemption value based on the corresponding EBITDA multiples as prescribed in the purchase and sale agreement at the end of each reporting period. At the end of each reporting period the changes in the redemption value are recorded in retained earnings. Since the EBITDA multiples as defined in the purchase and sale agreement are below the current market multiple, the Company has determined that there is no preferential treatment to the noncontrolling interest shareholders resulting in no impact to earnings per share. | |||||||
A rollforward of the mandatorily redeemable noncontrolling interest is included in the table below. | |||||||
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Mandatorily redeemable noncontrolling interest, January 1 | $ | 2,509 | $ | 1,067 | |||
Net income attributable to mandatorily redeemable noncontrolling | - | ||||||
interest | 128 | 41 | |||||
Dividends distributed to mandatorily redeemable noncontrolling | |||||||
interest | - | - | |||||
Change in redemption value | -175 | - | |||||
Mandatorily redeemable noncontrolling interest, March 31 | $ | 2,462 | $ | 1,108 | |||
Three months ended March 31, | |||||||
2014 | 2013 | ||||||
Mandatorily redeemable noncontrolling interest, January 1 | $ | 2,509 | $ | 1,067 | |||
Net income attributable to mandatorily redeemable noncontrolling | - | ||||||
interest | 128 | 41 | |||||
Dividends distributed to mandatorily redeemable noncontrolling | |||||||
interest | - | - | |||||
Change in redemption value | -175 | - | |||||
Mandatorily redeemable noncontrolling interest, March 31 | $ | 2,462 | $ | 1,108 | |||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (TABLES) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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, 2013 | $ | -10,581 | $ | -8,352 | $ | -1,653 | $ | -20,586 | ||||||
Other comprehensive (loss) income before reclassifications | -1,758 | -3,649 | 187 | -5,220 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income | - | 1,115 | 89 | 1,204 | ||||||||||
Net current period other comprehensive income | -1,758 | -2,534 | 276 | -4,016 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at March 31, 2014 | $ | -12,339 | $ | -10,886 | $ | -1,377 | $ | -24,602 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2012 | $ | 15,673 | $ | 9,559 | $ | -2,251 | $ | 22,981 | ||||||
Other comprehensive income before reclassifications | 3,224 | 4,099 | 14 | 7,337 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income | - | -1,919 | 148 | -1,771 | ||||||||||
Net current period other comprehensive income | 3,224 | 2,180 | 162 | 5,566 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at March 31, 2013 | $ | 18,897 | $ | 11,739 | $ | -2,089 | $ | 28,547 | ||||||
Income Statement Location of Adjustments Reclassified from Accumulated Other Comprehensive Income to Income | ' | |||||||||||||
For the Three Months Ended | ||||||||||||||
31-Mar-14 | 31-Mar-13 | Statement of Comprehensive Income Classification | ||||||||||||
Derivative valuation | ||||||||||||||
Gain (loss) on foreign currency forward | ||||||||||||||
exchange contracts | $ | -1,570 | $ | 3,460 | Revenue | |||||||||
Loss on interest rate swaps | -258 | -257 | Interest expense | |||||||||||
Tax effect | 713 | -1,284 | Provision for income taxes | |||||||||||
$ | -1,115 | $ | 1,919 | Net income | ||||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -95 | $ | -157 | Cost of services | |||||||||
Tax effect | 6 | 9 | Provision for income taxes | |||||||||||
$ | -89 | $ | -148 | Net (loss) | ||||||||||
NET_INCOME_PER_SHARE_TABLES
NET INCOME PER SHARE (TABLES) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
NET INCOME PER SHARE [Abstract] | ' | |||||||
Schedule of Diluted Shares Calculation | ' | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Shares used in basic earnings per share calculation | 50,045 | 52,347 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 411 | 391 | ||||||
Restricted stock units | 517 | 479 | ||||||
Performance-based restricted stock units | - | - | ||||||
Total effects of dilutive securities | 928 | 870 | ||||||
Shares used in dilutive earnings per share calculation | 50,973 | 53,217 | ||||||
ACQUISITIONS_ASSETS_ACQUIRED_T
ACQUISITIONS (ASSETS ACQUIRED TABLE) (DETAILS) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 25, 2014 | Aug. 09, 2013 |
In Thousands, unless otherwise specified | Sofica [Member] | Sofica [Member] | Sofica [Member] | WebMetro [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $812 | ' | ' |
Accounts receivable | ' | ' | ' | 3,267 | ' | ' |
Property, plant and equipment | ' | ' | ' | 491 | ' | ' |
Other assets | ' | ' | ' | 599 | ' | ' |
Customer relationships | ' | ' | ' | 3,591 | ' | ' |
Goodwill | 110,553 | 102,743 | ' | 7,329 | ' | ' |
Total assets acquired | ' | ' | ' | 16,089 | ' | ' |
Accounts payable | ' | ' | ' | 50 | ' | ' |
Accrued employee compensation and benefits | 63,698 | 80,130 | 630 | ' | ' | ' |
Accrued expenses | ' | ' | ' | 519 | ' | ' |
Other | ' | ' | ' | 393 | ' | ' |
Total liabilities assumed | ' | ' | ' | 1,592 | ' | ' |
Total purcahse price | ' | ' | ' | $14,497 | $14,500 | $17,800 |
ACQUISITIONS_NARRATIVE_DETAILS
ACQUISITIONS (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 3 Months Ended | 7 Months Ended | 2 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Aug. 09, 2013 | Mar. 31, 2014 | Feb. 25, 2014 | Mar. 31, 2014 | |
Iknowtion [Member] | WebMetro [Member] | WebMetro [Member] | Sofica [Member] | Sofica [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Percentage of Voting Interests Acquired | ' | ' | ' | 100.00% | ' | 100.00% | ' |
Description of Acquired Entity | ' | ' | ' | 'WebMetro, a California corporation (“WebMetro”), a digital marketing agency. | ' | 'Sofica provides customer lifecycle management and other business process outsourcing services across multiple channels in multiple sites in over 18 languages. | ' |
Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net | ' | ' | ' | $17,800,000 | ' | $14,500,000 | $14,497,000 |
Cost of Acquired Entity, Up Front Cash Consideration | ' | ' | ' | 15,300,000 | ' | 9,000,000 | ' |
Weighted Average Useful Life of Acquired Intangible Assets | ' | ' | ' | ' | ' | '5 years 0 months 0 days | ' |
Future Value of Liabilities Incurred From Business Acquisitions | 23,900,000 | ' | ' | 2,600,000 | ' | 4,000,000 | ' |
Valuation Technique on Contingent Consideration | ' | ' | 'The Company holds an 80% interest in iKnowtion. 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 iKnowtion’s 2015 EBITDA as defined in 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 5.3% and expected future value of payments of $2.6 million. The $2.6 million of expected future payments was calculated using a bell curve probability weighted EBITDA assessment with the highest probability associated with WebMetro achieving the targeted EBITDA for each earn-out year. | ' | '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 22% and expected future value of payments of $4.0 million. The $4.0 million of expected future payments was calculated using a bell curve probability weighted EBITDA assessment with the highest probability associated with Sofica achieving the targeted EBITDA for each earn-out year. | ' |
Contingent Consideration, at fair value | 22,509,000 | 21,748,000 | ' | 2,500,000 | 1,700,000 | ' | 3,400,000 |
Contingent Consideration, at Fair Value, Current Portion | ' | ' | ' | ' | ' | ' | 2,000,000 |
Contingent Consideration, at Fair Value, Noncurrent Portion | ' | ' | ' | ' | ' | ' | 1,400,000 |
Revenue of Acquirees since Acquisition Date, Actual | 4,800,000 | ' | ' | ' | ' | ' | ' |
Income (loss) from operations of Acquirees since Acquisition Date, Actual | 300,000 | ' | ' | ' | ' | ' | ' |
Business Combination Pro Forma Information Amortization Expense of Acquirees Since Acquisition | $600,000 | ' | ' | ' | ' | ' | ' |
SEGMENT_INFORMATION_SEGMENT_FI
SEGMENT INFORMATION (SEGMENT FINANCIALS) (DETAILS) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Gross Revenue | $302,224 | $289,321 | ' |
Intersegment Sales | -3 | -938 | ' |
Net Revenue | 302,221 | 288,383 | ' |
Depreciation and amortization | 13,170 | 10,555 | ' |
Income (Loss) from Operations | 24,357 | 22,998 | ' |
Capital Expenditures | 15,095 | 4,105 | ' |
Total Assets | 831,940 | ' | 842,342 |
Goodwill | 110,553 | ' | 102,743 |
Customer Management Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Gross Revenue | 227,924 | 222,889 | ' |
Intersegment Sales | ' | -307 | ' |
Net Revenue | 227,924 | 222,582 | ' |
Depreciation and amortization | 9,465 | 7,862 | ' |
Income (Loss) from Operations | 20,823 | 20,731 | ' |
Capital Expenditures | 9,912 | 2,286 | ' |
Total Assets | 546,007 | ' | 554,015 |
Goodwill | 27,279 | ' | 19,819 |
Customer Growth Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Gross Revenue | 28,905 | 22,856 | ' |
Net Revenue | 28,905 | 22,856 | ' |
Depreciation and amortization | 1,556 | 697 | ' |
Income (Loss) from Operations | 1,770 | 1,276 | ' |
Capital Expenditures | 380 | 316 | ' |
Total Assets | 87,897 | ' | 86,416 |
Goodwill | 30,128 | ' | 30,128 |
Customer Technology Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Gross Revenue | 32,779 | 33,646 | ' |
Intersegment Sales | -3 | -84 | ' |
Net Revenue | 32,776 | 33,562 | ' |
Depreciation and amortization | 1,715 | 1,516 | ' |
Income (Loss) from Operations | 311 | 2,898 | ' |
Capital Expenditures | 4,631 | 1,328 | ' |
Total Assets | 152,103 | ' | 157,040 |
Goodwill | 42,709 | ' | 42,709 |
Customer Strategy Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Gross Revenue | 12,616 | 9,930 | ' |
Intersegment Sales | ' | -547 | ' |
Net Revenue | 12,616 | 9,383 | ' |
Depreciation and amortization | 434 | 480 | ' |
Income (Loss) from Operations | 1,453 | -1,907 | ' |
Capital Expenditures | 172 | 175 | ' |
Total Assets | 45,933 | ' | 44,871 |
Goodwill | $10,437 | ' | $10,087 |
SEGMENT_INFORMATION_REVENUE_GE
SEGMENT INFORMATION (REVENUE GEOGRAPHY) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | $302,221 | $288,383 |
United States [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | 146,469 | 131,747 |
Philippines [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | 86,666 | 86,108 |
Latin America [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | 42,046 | 45,028 |
Europe Middle East Africa [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | 19,217 | 16,984 |
Canada [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | 1,423 | 4,290 |
Asia Pacific[ Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | $6,400 | $4,226 |
SIGNIFICANT_CLIENTSNARRATIVE_D
SIGNIFICANT CLIENTS(NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Entity Wide Revenue Major Customer Line Items | ' | ' |
Revenue from major customer as a percentage of total revenue | 11.60% | 11.90% |
Accounts receivable amount from major customer | $30.40 | $25 |
GOODWILL_GOODWILL_ROLLFORWARD_
GOODWILL (GOODWILL ROLLFORWARD) (DETAILS) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Goodwill [Line Items] | ' |
Beginning balance, goodwill | $102,743 |
Acquisitions | 7,679 |
Impairments | 0 |
Effect of Foreign Currency | 131 |
Ending balance, goodwill | 110,553 |
Customer Management Services [Member] | ' |
Goodwill [Line Items] | ' |
Beginning balance, goodwill | 19,819 |
Acquisitions | 7,329 |
Impairments | 0 |
Effect of Foreign Currency | 131 |
Ending balance, goodwill | 27,279 |
Customer Growth Services [Member] | ' |
Goodwill [Line Items] | ' |
Beginning balance, goodwill | 30,128 |
Acquisitions | 0 |
Impairments | 0 |
Effect of Foreign Currency | 0 |
Ending balance, goodwill | 30,128 |
Customer Technology Services [Member] | ' |
Goodwill [Line Items] | ' |
Beginning balance, goodwill | 42,709 |
Acquisitions | 0 |
Impairments | 0 |
Effect of Foreign Currency | 0 |
Ending balance, goodwill | 42,709 |
Customer Strategy Services [Member] | ' |
Goodwill [Line Items] | ' |
Beginning balance, goodwill | 10,087 |
Acquisitions | 350 |
Impairments | 0 |
Effect of Foreign Currency | 0 |
Ending balance, goodwill | $10,437 |
DERIVATIVES_OCI_ROLLFORWARD_DE
DERIVATIVES (OCI ROLLFORWARD) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
DERIVATIVES [ABSTRACT] | ' | ' |
Aggregate unrealized net gain/(loss) at beginning of year | ($8,352) | $9,559 |
Add: Net gain/(loss) from change in fair value of cash flow hedges | -3,649 | 4,099 |
Less: Net (gain)/loss reclassified to earnings from effective hedges | -1,115 | 1,919 |
Aggregate unrealized net gain/(loss) at end of period | ($10,886) | $11,739 |
DERIVATIVES_NOTIONAL_TABLE_DET
DERIVATIVES (NOTIONAL TABLE) (DETAILS) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards |
USD ($) | USD ($) | CAD | CAD | CAD | CAD | PHP | PHP | PHP | PHP | MXN | MXN | MXN | MXN | GBP | GBP | GBP | GBP | NZD | NZD | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | ||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | $229,500 | $204,500 | $557,909 | $580,076 | $5,857 | 6,000 | $7,336 | 7,500 | $382,668 | 16,416,000 | $404,638 | 17,355,000 | $168,458 | 2,356,500 | $166,132 | 2,305,500 | $926 | £ 600 | $1,853 | £ 1,200 | $117 | 150 |
% Maturing in the Next 12 Months | ' | ' | ' | ' | 87.50% | 87.50% | ' | ' | 37.70% | 37.70% | ' | ' | 29.90% | 29.90% | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' |
Contracts Maturing Through | ' | ' | ' | ' | '1 year 3 months 0 days | '1 year 3 months 0 days | ' | ' | '4 years 9 months 0 days | '4 years 9 months 0 days | ' | ' | '4 years 9 months 0 days | '4 years 9 months 0 days | ' | ' | '0 years 6 months 0 days | '0 years 6 months 0 days | ' | ' | ' | ' |
DERIVATIVES_INTEREST_RATE_SWAP
DERIVATIVES (INTEREST RATE SWAPS) (DETAILS) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Interest Rate Swap One [Member] | Interest Rate Swap Two [Member] | Total Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ' | ' | ' | ' | ' |
Notional Amount | $229,500 | $204,500 | $25,000 | $15,000 | $40,000 |
Variable Rate Received | ' | ' | '1 - month LIBOR | '1 - month LIBOR | ' |
Fixed Rate Paid | ' | ' | 2.55% | 3.14% | ' |
Contract Commencement Date | ' | ' | 1-Apr-12 | 1-May-12 | ' |
Contract Maturity Date | ' | ' | 1-Apr-16 | 1-May-17 | ' |
DERIVATIVES_BALANCE_SHEET_CLAS
DERIVATIVES (BALANCE SHEET CLASSIFICATION) (DETAILS) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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) | ($15,518) | ($11,485) |
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) | 2,368 | 3,379 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total net derivative asset (liability) | 2,529 | 1,439 |
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) | -8,346 | -4,595 |
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) | -12,069 | -11,708 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total net derivative asset (liability) | -1,988 | -2,152 |
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) | -1,045 | -1,028 |
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) | -943 | -1,124 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total net derivative asset (liability) | -177 | -718 |
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) | 142 | 97 |
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) | -319 | -815 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Total net derivative asset (liability) | 0 | -116 |
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) | ' | ($116) |
DERIVATIVES_INCOME_STATEMENT_C
DERIVATIVES (INCOME STATEMENT CLASSIFICATION) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Interest expense | $1,690 | $1,865 |
Other income (expense), net | 1,001 | -808 |
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 (loss) - effective portion, net of tax: | -3,592 | 4,178 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Amount and Location of Net Gain or Loss Reclassified From Accumulated Other Comprehensive Income to Income [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Revenues | -1,570 | 3,460 |
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 (loss) - effective portion, net of tax: | -57 | -79 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | Amount and Location of Net Gain or Loss Reclassified From Accumulated Other Comprehensive Income to Income [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Interest expense | -258 | -257 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Amount and Location of Net Gain or Loss Recognized in Income Nondesignated Hedging Instruments [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Other income (expense), net | 619 | 1,438 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | Amount and Location of Net Gain or Loss Recognized in Income Nondesignated Hedging Instruments [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Cost of services | ' | ($69) |
DERIVATIVES_NARRATIVE_DETAILS
DERIVATIVES (NARRATIVE) (DETAILS) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
DERIVATIVES [ABSTRACT] | ' | ' |
Notional Amount | $229.50 | $204.50 |
FAIR_VALUE_DERIVATIVES_TABLE_D
FAIR VALUE (DERIVATIVES TABLE) (DETAILS) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
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 | ($15,518) | ($11,485) |
Interest rate swaps | -1,988 | -2,152 |
Fair value hedges | -177 | -718 |
Embedded derivatives | ' | -116 |
Total net derivative asset (liability) | -17,683 | -14,471 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash flow hedges | -15,518 | -11,485 |
Interest rate swaps | -1,988 | -2,152 |
Fair value hedges | -177 | -718 |
Embedded derivatives | ' | -116 |
Total net derivative asset (liability) | ($17,683) | ($14,471) |
FAIR_VALUE_FAIR_VALUE_ASSETS_A
FAIR VALUE (FAIR VALUE ASSETS AND LIABILITIES) (DETAILS) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities [Abstract] | ' | ' |
Purchase price payable | ($22,509) | ($21,748) |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Money market investments | 240 | 240 |
Total assets | 240 | 240 |
Liabilities [Abstract] | ' | ' |
Deferred compensation plan liability | 7,650 | 6,829 |
Derivative instruments, net | 17,683 | 14,471 |
Total liabilities | -25,333 | -21,300 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Purchase price payable | 22,509 | 21,748 |
Total liabilities | ($22,509) | ($21,748) |
FAIR_VALUE_PURCHASE_PRICE_PAYA
FAIR VALUE (PURCHASE PRICE PAYABLE TABLE) (DETAILS) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Business acquisitions, Contingent Consideration [Line Items] | ' | ' |
Beginning balance, purchase price payable | $22,509 | $21,748 |
Acquisitions | 3,435 | ' |
Payments | -2,826 | ' |
Imputed Interest/ Adjustments | 152 | ' |
Ending balance, purchase price payable | 22,509 | 21,748 |
Iknowtion [Member] | ' | ' |
Business acquisitions, Contingent Consideration [Line Items] | ' | ' |
Beginning balance, purchase price payable | 2,139 | 3,470 |
Payments | -1,400 | ' |
Imputed Interest/ Adjustments | 69 | ' |
Ending balance, purchase price payable | 2,139 | 3,470 |
Guidon [Member] | ' | ' |
Business acquisitions, Contingent Consideration [Line Items] | ' | ' |
Beginning balance, purchase price payable | 1,250 | 2,637 |
Payments | -1,426 | ' |
Imputed Interest/ Adjustments | 39 | ' |
Ending balance, purchase price payable | 1,250 | 2,637 |
Technology Solutions Group [Member] | ' | ' |
Business acquisitions, Contingent Consideration [Line Items] | ' | ' |
Beginning balance, purchase price payable | 13,012 | 12,933 |
Imputed Interest/ Adjustments | 79 | ' |
Ending balance, purchase price payable | 13,012 | 12,933 |
WebMetro [Member] | ' | ' |
Business acquisitions, Contingent Consideration [Line Items] | ' | ' |
Beginning balance, purchase price payable | 2,673 | 2,708 |
Imputed Interest/ Adjustments | -35 | ' |
Ending balance, purchase price payable | 2,673 | 2,708 |
Sofica [Member] | ' | ' |
Business acquisitions, Contingent Consideration [Line Items] | ' | ' |
Beginning balance, purchase price payable | 3,435 | 0 |
Acquisitions | 3,435 | ' |
Ending balance, purchase price payable | $3,435 | $0 |
FAIR_VALUE_NARRATIVE_DETAILS
FAIR VALUE (NARRATIVE) (DETAILS) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
FAIR VALUE [Abstract] | ' | ' | ' |
Future Value of Liabilities Incurred From Business Acquisitions | ' | $23,900,000 | ' |
Contingent Consideration, at fair value | ' | 22,509,000 | 21,748,000 |
Contingent Consideration Cash Payment | $6,300,000 | ' | ' |
INCOME_TAXES_NARRATIVE_DETAILS
INCOME TAXES (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
INCOME TAXES [ABSTRACT] | ' | ' |
Total deferred tax assets, net of valuation allowance | $53.30 | ' |
Valuation allowance on deferred tax assets | 9.9 | ' |
Deferred tax assets, net of valuation allowance and deferred tax liabilities | 51.2 | ' |
Effective income tax rate | 11.90% | 11.40% |
Canada [Member] | ' | ' |
Significant Change in Unrecognized Tax Benefits Is Reasonably Possible [LineItems] | ' | ' |
Significant Change in Unrecognized Tax Benefits, Nature of Event | 'During the first quarter of 2014, a benefit of $1.2 million was recorded due to the closing of statutes of limitations in Canada. | ' |
Tax Adjustments, Settlements, and Unusual Provisions | $1.20 | ' |
Income Tax Examination [Line Items] | ' | ' |
Income Tax Years under Audit | '2009 and 2010 | ' |
United States [Member] | ' | ' |
Income Tax Examination [Line Items] | ' | ' |
Income Tax Years under Audit | '2009, 2011 and 2012 | ' |
Netherlands [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 | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring charges, net | $540 | $851 |
Customer Management Services [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Reduction in force | 511 | 694 |
Customer Growth Services [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Reduction in force | 29 | ' |
Customer Strategy Services [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Reduction in force | ' | $157 |
RESTRUCTURING_CHARGES_AND_IMPA3
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABLITY ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning balance, restructuring reserve | $1,353 |
Expense | 540 |
Payments | -628 |
Ending balance, restructuring reserve | 1,265 |
Reduction in Force [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning balance, restructuring reserve | 1,353 |
Expense | 540 |
Payments | -628 |
Ending balance, restructuring reserve | $1,265 |
RESTRUCTURING_CHARGES_AND_IMPA4
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring Reserve | $1,265 | $1,353 |
Payments | ($628) | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jun. 03, 2013 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ' | ' | ' |
Increase in Borrowing Capacity | ' | ' | ' | $1,000,000,000 |
Maximum Borrowing Capacity | ' | ' | ' | 700,000,000 |
Borrowings outstanding on credit facility | 100,000,000 | ' | 100,000,000 | ' |
Average daily utilization under credit facility | 270,900,000 | 219,600,000 | ' | ' |
Letters of credit issued under credit facility | 3,500,000 | ' | ' | ' |
Remaining borrowing capacity under credit facility | 569,500,000 | ' | ' | ' |
Letters of credit issued outside credit facility | $900,000 | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Loss Contingency, Management's Assessment and Process | 'The Company settled the matter for an immaterial amount during the first quarter of 2014. | ' | ' | ' |
Google [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Loss Contingency, Actions Taken by Plaintiff | 'In the fourth quarter of 2012, a class action complaint was filed in the State of California against a TeleTech subsidiary and Google Inc. (“Google”), as co-defendants. Pursuant to its contractual commitments, the Company has agreed to indemnify Google for costs and expenses related to the complaint. | ' | ' | ' |
NONCONTROLLING_INTERES_NONCONT
NONCONTROLLING INTERES (NONCONTROLLING INTEREST ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stockholders' Equity Attributable to Noncontrolling Interest | ' | ' |
Noncontrolling interest, January 1 | $8,081 | $14,045 |
Net income attributable to noncontrolling interest | 957 | 642 |
Dividends distributed to noncontrolling interest | -990 | -1,109 |
Foreign currency translation adjustments | 35 | -90 |
Equity based compensation expense | 8 | 8 |
Noncontrolling interest, March 31 | $8,091 | $13,496 |
MANDATORILY_REDEEMABLE_NONCONT2
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Mandatorily redeemable noncontrolling interest [Line Items] | ' | ' |
Mandatorily redeemable noncontrolling interest, January 1 | $2,509 | ' |
Net income attributable to mandatorily redeemable noncontrolling interest | 21,303 | 18,603 |
Change in redemption value | 175 | ' |
Mandatorily redeemable noncontrolling interest, March 31 | 2,462 | ' |
Iknowtion [Member] | ' | ' |
Mandatorily redeemable noncontrolling interest [Line Items] | ' | ' |
Mandatorily redeemable noncontrolling interest, January 1 | 2,509 | 1,067 |
Net income attributable to mandatorily redeemable noncontrolling interest | 128 | 41 |
Change in redemption value | -175 | ' |
Mandatorily redeemable noncontrolling interest, March 31 | $2,462 | $1,108 |
MANDATORILY_REDEEMABLE_NONCONT3
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (NARRATIVE) (DETAILS) | 3 Months Ended |
Mar. 31, 2014 | |
Mandatorily Redeemable Noncontrolling Interest [Abstract] | ' |
Description of mandatorily redeemable noncontrolling interest | 'The Company has recorded the mandatorily redeemable noncontrolling interest at the redemption value based on the corresponding EBITDA multiples as prescribed in the purchase and sale agreement at the end of each reporting period. At the end of each reporting period the changes in the redemption value are recorded in retained earnings. Since the EBITDA multiples as defined in the purchase and sale agreement are below the current market multiple, the Company has determined that there is no preferential treatment to the noncontrolling interest shareholders resulting in no impact to earnings per share. |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Foreign Currency Translation Adjustment [Abstract] | ' | ' |
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, beginning balance | ($10,581) | $15,673 |
Other comprehensive income before reclassifications - foreign currency translation adjustment | -1,758 | 3,224 |
Net current period other comprehensive income - foreign currency translation adjustment | -1,758 | 3,224 |
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, ending balance | -12,339 | 18,897 |
Derivative Valuation, Net of Tax | ' | ' |
Aggregate unrealized net gain/(loss) at beginning of year | -8,352 | 9,559 |
Other comprehensive income before reclassifications - derivative valuation, net of tax | -3,649 | 4,099 |
Amounts reclassified from accumulated other comprehensive income - derivative valuation, net of tax | 1,115 | -1,919 |
Net current period other comprehensive income - derivative valuation, net of tax | -2,534 | 2,180 |
Aggregate unrealized net gain/(loss) at end of period | -10,886 | 11,739 |
Other, Net of Tax | ' | ' |
Accumulated other comprehensive income (loss) - Other, net of tax | -1,653 | -2,251 |
Other comprehensive income before reclassifications - other, net of tax | 187 | 14 |
Amounts reclassified from accumulated other comprehensive income - other, net of tax | 89 | 148 |
Net current period other comprehensive income - other, net of tax | 276 | 162 |
Accumulated other comprehensive income (loss) - Other, net of tax at end of period | -1,377 | -2,089 |
Totals | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | -20,586 | 22,981 |
Other comprehensive income before reclassifications - Totals | -5,220 | 7,337 |
Amounts reclassified from accumulated other comprehensive income - Totals | 1,204 | -1,771 |
Other comprehensive income (loss), net of tax | -4,016 | 5,566 |
Accumulated other comprehensive income (loss), ending balance | ($24,602) | $28,547 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (INCOME STATEMENT CLASSIFICATION TABLE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Presentation of Income Statement Reclassifications [Line Items] | ' | ' |
Other Comprehensive Income Loss Reclassified to Income | $1,204 | ($1,771) |
Other Accumulated Other Comprehensive Income Loss [Member] | ' | ' |
Presentation of Income Statement Reclassifications [Line Items] | ' | ' |
Other Comprehensive Income Loss Reclassified to Income | -89 | -148 |
Net Income (Loss) [Member] | Derivative Valuation [Member] | ' | ' |
Presentation of Income Statement Reclassifications [Line Items] | ' | ' |
Other Comprehensive Income Loss Reclassified to Income | -1,115 | 1,919 |
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 | -1,570 | 3,460 |
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 | -258 | -257 |
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 | 713 | -1,284 |
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 | 6 | 9 |
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 | ($95) | ($157) |
NET_INCOME_PER_SHARE_DILUTED_S
NET INCOME PER SHARE (DILUTED SHARES TABLE) (DETAILS) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ' | ' |
Shares used in basic earnings per share calculation | 50,045 | 52,347 |
Effect of dilutive securities: | ' | ' |
Stock options | 411 | 391 |
Restricted stock units | 517 | 479 |
Total effects of dilutive securities | 928 | 870 |
Shares used in dilutive earnings per share calculation | 50,973 | 53,217 |
NET_INCOME_PER_SHARE_NARRATIVE
NET INCOME PER SHARE (NARRATIVE) (DETAILS) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock Options [Member] | ' | ' |
Anti-dilutive options to purchase common stock [Line Items] | ' | ' |
Anti-dilutive securities | 0.1 | 0.1 |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Anti-dilutive options to purchase common stock [Line Items] | ' | ' |
Anti-dilutive securities | 0.3 | 0.4 |
EQUITYBASED_COMPENSATION_PLANS1
EQUITY-BASED COMPENSATION PLANS (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Equity-based compensation expense | $3,160,000 | $3,191,000 |
Stock Options [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Equity-based compensation expense | 100,000 | 100,000 |
Unrecognized Compensation Expense | 200,000 | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Equity-based compensation expense | 3,000,000 | 3,100,000 |
Unrecognized Compensation Expense | 25,300,000 | ' |
Non-option Equity Awards Granted | 164,000 | 122,000 |
Cost of Services [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Equity-based compensation expense | 600,000 | 500,000 |
Selling General And Administrative Expenses [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Equity-based compensation expense | $2,600,000 | $2,700,000 |
DECONSOLIDATION_OF_SUBSIDIARY_
DECONSOLIDATION OF SUBSIDIARY (NARRATIVE) (DETAILS) | 3 Months Ended |
Mar. 31, 2014 | |
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 CSS 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 during the second quarter of 2013. During the first quarter of 2014, the Company entered into an agreement with PRG Kuwait’s other shareholders to sell its 48% interest in the company for $175 thousand, payable at closing which is expected during the second quarter of 2014. |