Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 28, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TELETECH HOLDINGS INC | ||
Entity Central Index Key | 1013880 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $495,904,505 | ||
Entity Common Stock, Shares Outstanding | 48,307,893 | 48,732,502 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $77,316 | $158,017 |
Accounts receivable, net | 276,432 | 236,099 |
Prepaids and other current assets | 64,702 | 52,332 |
Deferred tax assets, net | 22,501 | 11,905 |
Income tax receivable | 4,532 | 11,198 |
Total current assets | 445,483 | 469,551 |
Long-term assets | ||
Property, plant and equipment, net | 150,212 | 126,719 |
Goodwill | 128,705 | 102,743 |
Deferred tax assets, net | 31,512 | 42,791 |
Other intangible assets, net | 59,905 | 54,812 |
Other long-term assets | 36,658 | 45,726 |
Total long-term assets | 406,992 | 372,791 |
Total assets | 852,475 | 842,342 |
Current liabilities | ||
Accounts payable | 37,019 | 32,031 |
Accrued employee compensation and benefits | 70,069 | 80,130 |
Other accrued expenses | 34,430 | 31,659 |
Income tax payable | 10,141 | 6,066 |
Deferred tax liabilities, net | 0 | 590 |
Deferred revenue | 29,887 | 28,799 |
Other current liabilities | 17,085 | 11,512 |
Total current liabilities | 198,631 | 190,787 |
Long-term liabilities | ||
Line of credit | 100,000 | 100,000 |
Deferred tax liabilities, net | 4,675 | 2,281 |
Deferred rent | 8,956 | 9,635 |
Other long-term liabilities | 74,149 | 63,648 |
Total long-term liabilities | 187,780 | 175,564 |
Total liabilities | 386,411 | 366,351 |
Commitments and contingencies (Note 15) | ||
Manditorily redeemable noncontrolling interest | 2,814 | 2,509 |
Stockholders' equity | ||
Preferred stock - $0.01 par value: 10,000,000 shares authorized; zero shares outstanding as of December 31, 2014 and December 31, 2013 | 0 | 0 |
Common stock - $0.01 par value; 150,000,000 shares authorized; 48,452,852 and 50,352,881 shares outstanding as of December 31, 2014 and December 31, 2013, respectively | 485 | 503 |
Additional paid-in capital | 356,792 | 356,381 |
Treasury stock at cost: 33,599,401 and 31,699,372 shares as of December 31, 2014 and December 31, 2013, respectively | -527,595 | -477,399 |
Accumulated other comprehensive income (loss) | -52,274 | -20,586 |
Retained earnings | 677,859 | 606,502 |
Noncontrolling interest | 7,983 | 8,081 |
Total stockholders' equity | 463,250 | 473,482 |
Total liabilities and stockholders' equity | $852,475 | $842,342 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 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 | 48,452,852 | 50,352,881 |
Treasury stock, shares | 33,599,401 | 31,699,372 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income (Loss) | |||
Revenue | $1,241,781 | $1,193,157 | $1,162,981 |
Operating expenses | |||
Cost of services | 886,492 | 846,631 | 834,803 |
Selling, general and administrative | 198,553 | 193,423 | 182,634 |
Depreciation and amortization | 56,538 | 46,064 | 41,166 |
Restructuring charges, net | 3,350 | 4,435 | 22,875 |
Impairment losses | 373 | 1,205 | 2,958 |
Total operating expenses | 1,145,306 | 1,091,758 | 1,084,436 |
Income from operations | 96,475 | 101,399 | 78,545 |
Other income (expense) | |||
Interest income | 1,769 | 2,560 | 2,978 |
Interest expense | -6,946 | -7,513 | -6,696 |
Loss on deconsolidation of subsidiary | 0 | -3,655 | 0 |
Other income (expense), net | 9,161 | -722 | -965 |
Total other income (expense) | 3,984 | -9,330 | -4,683 |
Income before income taxes | 100,459 | 92,069 | 73,862 |
(Provision for) benefit from income taxes | -23,042 | -20,598 | 61 |
Net income | 77,417 | 71,471 | 73,923 |
Net income attributable to noncontrolling interest | -5,124 | -4,083 | -3,908 |
Net income attributable to TeleTech stockholders | 72,293 | 67,388 | 70,015 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | -23,120 | -26,342 | 12,648 |
Derivative valuation, gross | -16,970 | -29,465 | 25,266 |
Derivative valuation, tax effect | 6,978 | 11,554 | -9,855 |
Other, net of tax | 1,076 | 598 | 527 |
Total other comprehensive income (loss) | -32,036 | -43,655 | 28,586 |
Total comprehensive income (loss) | 45,381 | 27,816 | 102,509 |
Less: Comprehensive income attributable to noncontrolling interest | 4,163 | 3,995 | 4,039 |
Comprehensive income (loss) attributable to TeleTech stockholders | $41,218 | $23,821 | $98,470 |
Weighted average shares outstanding | |||
Basic | 49,297 | 51,338 | 54,738 |
Diluted | 50,102 | 52,244 | 55,540 |
Net income per share attributable to TeleTech stockholders | |||
Basic | $1.47 | $1.31 | $1.28 |
Diluted | $1.44 | $1.29 | $1.26 |
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, 2011 | $470,247 | $0 | $566 | ($357,267) | $350,386 | ($5,474) | $470,776 | $11,260 |
Preferred stock beginning balance, share at Dec. 31, 2011 | 0 | 56,635 | ||||||
Net income | 73,923 | 70,015 | ||||||
Net income excluding mandatorily redeemable noncontrolling interest | 73,923 | 3,908 | ||||||
Acquisition of noncontrolling interest | 941 | 941 | ||||||
Dividends distributed to noncontrolling interest | -2,205 | -2,205 | ||||||
Transfer of noncontrolling interest to mandatorily redeemable noncontrolling interest | -1,067 | -1,067 | ||||||
Foreign currency translation adjustments | 12,648 | 12,517 | 131 | |||||
Derivatives valuation, net of tax | 15,411 | 15,411 | ||||||
Vesting of restricted stock units, share | 575 | |||||||
Vesting of restricted stock units, value | -4,580 | 5 | 8,041 | -12,626 | ||||
Exercise of stock options, share | 121 | |||||||
Exercise of stock options, value | 1,374 | 1 | 1,703 | -330 | ||||
Excess tax benefit from equity-based awards | -1 | -1 | ||||||
Equity-based compensation expense | 13,295 | 13,285 | 10 | |||||
Purchases of common stock, share | -5,043 | |||||||
Purchases of common stock, value | -81,243 | -50 | -81,193 | |||||
Other, net of tax | 527 | 527 | ||||||
Ending balance,value at Dec. 31, 2012 | 499,270 | 0 | 522 | -428,716 | 350,714 | 22,981 | 540,791 | 12,978 |
Preferred stock ending balance, share at Dec. 31, 2012 | 0 | |||||||
Common stock ending balance, share at Dec. 31, 2012 | 52,288 | |||||||
Net income | 71,471 | 67,388 | ||||||
Net income excluding mandatorily redeemable noncontrolling interest | 70,989 | 3,601 | ||||||
Dividends distributed to noncontrolling interest | -4,183 | -4,183 | ||||||
Purchases of outstanding noncontrolling interest | -425 | 3,715 | -4,140 | |||||
Adjustments to redemption value of mandatorily redeemable noncontrolling interest | -1,677 | -1,677 | ||||||
Deconsolidation of a subsidiary | -121 | -121 | ||||||
Foreign currency translation adjustments | -26,342 | -26,254 | -88 | |||||
Derivatives valuation, net of tax | -17,911 | -17,911 | ||||||
Vesting of restricted stock units, share | 455 | |||||||
Vesting of restricted stock units, value | -4,974 | 5 | 6,530 | -11,509 | ||||
Exercise of stock options, share | 91 | |||||||
Exercise of stock options, value | 862 | 1 | 1,294 | -433 | ||||
Excess tax benefit from equity-based awards | 787 | 787 | ||||||
Equity-based compensation expense | 13,141 | 13,107 | 34 | |||||
Purchases of common stock, share | -2,481 | |||||||
Purchases of common stock, value | -56,532 | -25 | -56,507 | |||||
Other, net of tax | 598 | 598 | ||||||
Ending balance,value at Dec. 31, 2013 | 473,482 | 0 | 503 | -477,399 | 356,381 | -20,586 | 606,502 | 8,081 |
Preferred stock ending balance, share at Dec. 31, 2013 | 0 | 0 | ||||||
Common stock ending balance, share at Dec. 31, 2013 | 50,352,881 | 50,353 | ||||||
Net income | 77,417 | 72,293 | ||||||
Net income excluding mandatorily redeemable noncontrolling interest | 76,805 | 4,512 | ||||||
Dividends distributed to noncontrolling interest | -4,275 | -4,275 | ||||||
Adjustments to redemption value of mandatorily redeemable noncontrolling interest | -936 | -936 | ||||||
Foreign currency translation adjustments | -23,120 | -22,771 | -349 | |||||
Derivatives valuation, net of tax | -9,993 | -9,993 | ||||||
Vesting of restricted stock units, share | 396 | |||||||
Vesting of restricted stock units, value | -5,379 | 4 | 5,979 | -11,362 | ||||
Exercise of stock options, share | -53,100 | 58 | ||||||
Exercise of stock options, value | 443 | 1 | 876 | -434 | ||||
Excess tax benefit from equity-based awards | 1,015 | 1,015 | ||||||
Equity-based compensation expense | 11,206 | 11,192 | 14 | |||||
Purchases of common stock, share | -2,354 | |||||||
Purchases of common stock, value | -57,074 | -23 | -57,051 | |||||
Other, net of tax | 1,076 | 1,076 | ||||||
Ending balance,value at Dec. 31, 2014 | $463,250 | $0 | $485 | ($527,595) | $356,792 | ($52,274) | $677,859 | $7,983 |
Preferred stock ending balance, share at Dec. 31, 2014 | 0 | 0 | ||||||
Common stock ending balance, share at Dec. 31, 2014 | 48,452,852 | 48,453 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income | $77,417 | $71,471 | $73,923 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 56,538 | 46,064 | 41,166 |
Amortization of contract acquisition costs | 856 | 1,160 | 1,017 |
Amortization of debt issuance costs | 705 | 659 | 808 |
Imputed interest expense and fair value adjustments to contingent consideration | -6,233 | 3,301 | 904 |
Provision for doubtful accounts | 633 | 695 | 368 |
Loss (gain) on disposal of assets | 141 | 0 | 305 |
Impairment losses | 373 | 1,205 | 2,958 |
Deferred income taxes | 9,514 | 6,892 | 2,354 |
Excess tax benefit from equity-based awards | -1,399 | -1,343 | -462 |
Equity-based compensation expense | 11,307 | 13,234 | 13,376 |
Loss on foreign currency derivatives | -1,548 | 234 | 414 |
Loss on deconsolidation of subsidiary, net of cash of zero, $897, and zero, respectively | 0 | 2,758 | 0 |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable | -41,005 | 7,291 | 400 |
Prepaids and other assets | -5,300 | -5,374 | -25,664 |
Accounts payable and accrued expenses | -8,115 | -2,549 | -16,301 |
Deferred revenue and other liabilities | 206 | -7,718 | 11,354 |
Net cash provided by operating activities | 94,090 | 137,979 | 106,920 |
Cash flows from investing activities | |||
Proceeds from grant for property, plant and equipment | 0 | 0 | 110 |
Proceeds from sale of long-lived assets | 135 | 0 | 450 |
Purchases of property, plant and equipment, net of acquisitions | -67,641 | -50,364 | -40,653 |
Acquisitions, net of cash acquired of $3,525, $6,423, and $3,744, respectively | -24,416 | -9,166 | -40,839 |
Net cash used in investing activities | -91,922 | -59,530 | -80,932 |
Cash flows from financing activities | |||
Proceeds from line of credit | 2,077,400 | 1,533,550 | 1,179,850 |
Payments on line of credit | -2,077,400 | -1,541,550 | -1,135,850 |
Proceeds from other debt | 3,709 | 8,014 | |
Payments on other debt | -4,504 | -5,789 | -4,900 |
Payment of contingent consideration related to acquisitions | -8,547 | ||
Dividends paid to noncontrolling interest | -5,962 | -4,455 | -2,205 |
Proceeds from exercise of stock options | 443 | 862 | 1,374 |
Excess tax benefit from equity-based awards | 1,399 | 1,343 | 462 |
Purchase of treasury stock | -57,074 | -56,532 | -81,243 |
Payments of debt issuance costs | 0 | -1,800 | -467 |
Net cash used in financing activities | -74,245 | -70,662 | -34,965 |
Effect of exchange rate changes on cash and cash equivalents | -8,624 | -14,255 | 17,091 |
(Decrease) increase in cash and cash equivalents | -80,701 | -6,468 | 8,114 |
Cash and cash equivalents, beginning of period | 158,017 | 164,485 | 156,371 |
Cash and cash equivalents, end of period | 77,316 | 158,017 | 164,485 |
Supplemental disclosures | |||
Cash paid for interest | 5,404 | 4,220 | 4,412 |
Cash paid for income taxes | 14,545 | 16,757 | 16,388 |
Non-cash investing and financing activities | |||
Purchases of equipment through financing arrangements | 696 | 0 | 6,100 |
Acquisition of equipment through increse in accounts payable | 4,170 | 2,762 | 0 |
Landlord incentives credited to deferred rent | 0 | 1,016 | 1,723 |
Contract acquisition costs credited to accounts receivable | $471 | $1,000 | $0 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from investing activities | |||
Acquisitions, net of cash acquired of $3,525, $6,423 and $3,744, respectively | $3,525 | $6,423 | $3,744 |
Loss on deconsolidation of subsidiary, net of cash of zero, $897, and zero, respectively | $897 |
OVERVIEW_AND_SUMMARY_OF_SIGNIF
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2014 | ||
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (1) OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Overview | ||
TeleTech Holdings, Inc. and its subsidiaries (“TeleTech” or the “Company”) is a customer engagement management services provider, delivering integrated consulting, technology, growth and customer care solutions on a global scale. Our suite of product and service capabilities allows us to design and deliver enhanced, value-driven customer experiences across numerous communication channels. TeleTech's 46,000 employees serve clients in the automotive, communication, financial services, government, healthcare, logistics, media and entertainment, retail, technology, transportation and travel industries via operations in the U.S., Australia, Belgium, Brazil, Bulgaria, Canada, Costa Rica, Germany, Ghana, Ireland, Israel, Lebanon, Macedonia, Mexico, New Zealand, the Philippines, Poland, Singapore, South Africa, Spain, Thailand, Turkey, the United Arab Emirates, and the United Kingdom. | ||
Basis of Presentation | ||
The Consolidated Financial Statements are comprised of the accounts of TeleTech, its wholly owned subsidiaries, its 55% 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 Note 2). All intercompany balances and transactions have been eliminated in consolidation. | ||
Certain amounts for 2013 have been reclassified in the Consolidated Financial Statements to conform to the 2014 presentation. | ||
Use of Estimates | ||
The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. (“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 the valuation allowance for deferred tax assets, self-insurance reserves, litigation reserves, restructuring reserves, allowance for doubtful accounts, contingent consideration, and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. In the year ended December 31, 2012, the Company recorded a change in estimate which resulted in a decrease of $4.6 million to employee related expenses in connection with an authoritative ruling in Spain related to the legally required cost of living adjustment for employees' salaries for the year 2010, 2011 and 2012. | ||
Concentration of Credit Risk | ||
The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across six well-capitalized, investment-grade financial institutions. | ||
Fair Value of Financial Instruments | ||
Fair values of cash equivalents and accounts receivable and payable approximate the carrying amounts because of their short-term nature. | ||
Cash and Cash Equivalents | ||
The Company considers all cash and highly liquid short-term investments with an original maturity of 90 days or less to be cash equivalents. The Company manages a centralized global treasury function in the United States with a focus on concentrating and safeguarding its global cash and cash equivalents. While the majority of the Company's cash is held outside the U.S., the Company prefers to hold U.S. Dollars in addition to the local currencies of the foreign subsidiaries. The Company believes that it has effectively mitigated and managed its risk relating to its global cash through its cash management practices, banking partners, and utilization of diversified, high quality investments. However, the Company can provide no assurances that it will not sustain losses. | ||
Accounts Receivable | ||
An allowance for doubtful accounts is determined based on the aging of the Company's accounts receivable, historical experience, client financial condition, and management judgment. The Company writes off accounts receivable against the allowance when the Company determines a balance is uncollectible. | ||
Derivatives | ||
The Company enters into foreign exchange forward and option contracts to reduce its exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. The Company also enters into interest rate derivatives which 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. The Company formally documents at the inception of the hedge all relationships between hedging instruments and hedged items as well as its risk management objective and strategy for undertaking various hedging activities. | ||
All derivative financial instruments are reported at fair value and recorded in Other assets and Other liabilities in the accompanying Consolidated Balance Sheets at fair value. Changes in fair value of derivative instruments designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss), a component of Stockholders' Equity, to the extent they are deemed effective. Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Based on the criteria established by current accounting standards, the Company's cash flow hedge contracts are deemed to be highly effective. Any realized gains or losses resulting from the foreign currency cash flow hedges are recognized together with the hedged transaction within Revenue. Any realized gains or losses from the interest rate swaps are recognized in interest income (expense). Gains and losses from the settlements of the Company's net investment hedges remain in Accumulated other comprehensive income (loss) until partial or complete liquidation of the applicable net investment. | ||
The Company also enters into fair value derivative contracts that hedge against foreign currency exchange gains and losses primarily associated with short-term payables and receivables. Changes in the fair value of derivative instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). | ||
In addition to hedging activities, the Company has embedded derivatives in certain foreign lease contracts. The Company bifurcates and calculates the fair values of the embedded derivative feature from the host contract with any changes in fair value of the embedded derivatives recognized in Cost of services. | ||
Property, Plant and Equipment | ||
Property, plant and equipment are stated at historical cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewals are expensed as incurred. | ||
Depreciation and amortization are computed on the straight-line method based on the following estimated useful lives: | ||
Building | 25 years | |
Computer equipment and software | 3 to 7 years | |
Telephone equipment | 4 to 7 years | |
Furniture and fixtures | 5 years | |
Leasehold improvements | Lesser of economic useful life (typically 10 years) | |
or original lease term | ||
Other | 3 to 7 years | |
The Company evaluates the carrying value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of forecasted future cash flows. | ||
Software Development Costs | ||
The Company capitalizes costs incurred to acquire or develop software for internal use. Capitalized software development costs are amortized using the straight-line method over the estimated useful life equal to the lesser of the license term or 4 years. The amortization expense is recorded in Depreciation and amortization in the accompanying Consolidated Statements of Comprehensive Income (Loss). | ||
Goodwill | ||
The Company evaluates goodwill for possible impairment at least annually on December 1, and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses a three step process to assess the realizability of goodwill. The first step, Step 0, is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, the Company analyzes changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. A qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. | ||
If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit's fair value has historically been closer to its carrying value, the Company will proceed to Step 1 testing where the Company calculates the fair value of a reporting unit. If Step 1 indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will proceed to Step 2 where the fair value of the reporting unit will be allocated to assets and liabilities as they would in a business combination. Impairment occurs when the carrying amount of goodwill exceeds its estimated fair value calculated in Step 2. | ||
Contract Acquisition Costs | ||
Amounts paid to or on behalf of clients to obtain long-term contracts are capitalized and amortized in proportion to the initial expected future revenue from the contract, which in most cases results in straight-line amortization over the life of the contract. These costs are recorded as a reduction to Revenue. The Company evaluates the recoverability of these costs based on the individual underlying client contracts' forecasted future cash flows. | ||
Other Intangible Assets | ||
The Company has other intangible assets that include customer relationships (definite-lived) and trade names (indefinite-lived and definite-lived) and non-compete agreements (definite-lived). Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to 11 years. The Company evaluates the carrying value of its definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of its asset group are estimated to be less than its carrying value. | ||
The Company evaluates indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Similar to goodwill, the Company may first use a qualitative analysis to assess the realizability of its indefinite-lived intangible assets. The qualitative analysis will include a review of changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of an indefinite-lived intangible asset. If a quantitative analysis is completed, an indefinite-lived intangible asset (a trade name) is evaluated for possible impairment by comparing the fair value of the asset with its carrying value. Fair value is estimated as the discounted value of future revenues arising from a trade name using a royalty rate that a market participant would pay for use of that trade name. An impairment charge is recorded if the trade name's carrying value exceeds its estimated fair value. | ||
Self Insurance Liabilities | ||
The Company self-insures for certain levels of workers' compensation, employee health, property, errors and omissions, cyber risks, and general liability insurance. The Company records estimated liabilities for these insurance lines based upon analyses of historical claims experience. The most significant assumption the Company makes in estimating these liabilities is that future claims experience will emerge in a similar pattern with historical claims experience. The liabilities related to workers' compensation and employee health insurance are included in Accrued employee compensation and benefits in the accompanying Consolidated Balance Sheets. The liability for other general liability insurance is included in Other accrued expenses in the accompanying Consolidated Balance Sheets. | ||
Restructuring Liabilities | ||
The Company routinely assesses the profitability and utilization of its delivery centers and existing markets. In some cases, the Company has chosen to close under-performing delivery centers and complete reductions in workforce to enhance future profitability. Severance payments that occur from reductions in workforce are in accordance with the Company's postemployment plans and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and reasonably estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, rather than upon commitment to a plan. | ||
Grant Advances | ||
The Company receives grants from various government agencies as an incentive to locate delivery centers in their jurisdictions. The Company's policy is to account for grant monies received in advance as a liability and recognize to income as either a reduction to Cost of services or Depreciation expense over the term of the grant, when it is reasonably assured that the conditions of the grant have been or will be met. | ||
Income Taxes | ||
Accounting for income taxes 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 or tax returns. 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 enacted tax rates in effect for the year in which the differences are expected to reverse. Gross deferred tax assets may then be reduced by a valuation allowance for amounts that do not satisfy the realization criteria established by current accounting standards. | ||
The Company accounts for uncertain tax positions using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. The Company evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors including changes in facts or circumstances, changes in applicable tax law, and settlement of issues under audit. The Company recognizes interest and penalties related to uncertain tax positions as a part of the Provision for income taxes in the accompanying Consolidated Statements of Comprehensive Income (Loss). | ||
The Company provides for U.S. income tax expense on the earnings of foreign subsidiaries unless the subsidiaries' earnings are considered permanently reinvested outside the U.S. | ||
Equity-Based Compensation Expense | ||
Equity-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, which is typically the vesting term of the share-based payment award. The Company estimates the forfeiture rate annually based on its historical experience of forfeited awards. | ||
Foreign Currency Translation | ||
The assets and liabilities of the Company's foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated at the exchange rates in effect on the last day of the period and income and expenses are translated using the monthly average exchange rates in effect for the period in which the items occur. Foreign currency translation gains and losses are recorded in Accumulated other comprehensive income (loss) within Stockholders' Equity. Foreign currency transaction gains and losses are included in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). | ||
Revenue Recognition | ||
The Company recognizes revenue when evidence of an arrangement exists, the delivery of service has occurred, the fee is fixed or determinable and collection is reasonably assured. The BPO inbound and outbound service fees are based on either a per minute, per hour, per transaction or per call basis. Certain client programs provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based contingencies. Revenue recognition is limited to the amount that is not contingent upon delivery of future services or meeting other specified performance conditions. | ||
Revenue also consists of services for agent training, program launch, professional consulting, fully-hosted or managed technology and learning innovation services. These service offerings may contain multiple element arrangements whereby the Company determines if those service offerings represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value and delivery or performance of the undelivered items is considered probable and substantially within our control. If those deliverables are determined to be separate units of accounting, revenue is recognized as services are provided. If those deliverables are not determined to be separate units of accounting, revenue for the delivered services are bundled into one unit of accounting and recognized over the life of the arrangement or at the time all services and deliverables have been delivered and satisfied. The Company allocates revenue to each of the deliverables based on a selling price hierarchy of vendor specific objective evidence (“VSOE”), third-party evidence, and then estimated selling price. VSOE is based on the price charged when the deliverable is sold separately. Third-party evidence is based on largely interchangeable competitor services in standalone sales to similarly situated customers. Estimated selling price is based on the Company's best estimate of what the selling prices of deliverables would be if they were sold regularly on a standalone basis. Estimated selling price is established considering multiple factors including, but not limited to, pricing practices in different geographies, service offerings, and customer classifications. Once the Company allocates revenue to each deliverable, the Company recognizes revenue when all revenue recognition criteria are met. | ||
Deferred Revenue and Costs | ||
The Company records amounts billed and received, but not earned, as deferred revenue. These amounts are recorded in Deferred revenue or as a component of Other long-term liabilities in the accompanying Consolidated Balance Sheets based on the period over which the Company expects to render services. | ||
We defer revenue for initial training that occurs upon commencement of a new contract if that training is billed separately because the training is not considered to provide standalone value from other services. Accordingly, the corresponding training costs, consisting primarily of labor and related expenses, are also deferred. In these circumstances, both the training revenue and costs are amortized straight-line over the life of the contract as a component of Revenue and Cost of services, respectively. In situations where these initial training costs are not billed separately, but rather included in the hourly service rates paid by the client over the life of the contract, no deferral is necessary as the revenue is being recognized over the life of the contract and the associated training costs are expensed as incurred. | ||
Rent Expense | ||
The Company has negotiated certain rent holidays, landlord/tenant incentives and escalations in the base price of rent payments over the initial term of its operating leases. The initial term includes the “build-out” period of leases, where no rent payments are typically due. The Company recognizes rent holidays and rent escalations on a straight-line basis to rent expense over the lease term. The landlord/tenant incentives are recorded as an increase to deferred rent liabilities and amortized on a straight line basis to rent expense over the initial lease term. | ||
Asset Retirement Obligations | ||
Asset retirement obligations relate to legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets. | ||
The Company records all asset retirement obligations at estimated fair value. The Company's asset retirement obligations primarily relate to clauses in its delivery center operating leases which require the Company to return the leased premises to its original condition. The associated asset retirement obligations are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability, reported within Other long-term liabilities, is accreted through charges to operating expenses. If the asset retirement obligation is settled for an amount other than the carrying amount of the liability, the Company recognizes a gain or loss on settlement. | ||
Recently Issued Accounting Pronouncements | ||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 provides new guidance related to the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This new guidance is effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. Beginning in 2015, the Company will apply the new guidance, as applicable, to future disposals of components or classifications as held for sale, but the Company does not expect it to have a significant impact on its financial position, results of operation or related disclosures. | ||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 provides new guidance related to how an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 specifies new accounting for costs associated with obtaining or fulfilling contracts with customers and expands the required disclosures related to revenue and cash flows from contracts with customers. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption, with early application not permitted. The Company is currently determining its implementation approach and assessing the impact on the consolidated financial statements. | ||
In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and early adoption is permitted. Beginning in 2016, the Company will apply the new guidance as applicable and is currently assessing the impact on the consolidated financial statements. | ||
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern”, as a new Sub-topic, Accounting Standards Codification Sub-topic 205.40. The new going concern standard codifies in GAAP management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This ASU is effective for interim and annual periods beginning on or after December 15, 2016 and early adoption is permitted. The Company is evaluating when it will adopt the standard but does not expect it to have a significant impact on its financial position, results of operation or related disclosures. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | |||
Dec. 31, 2014 | ||||
ACQUISITIONS [ABSTRACT] | ||||
ACQUISITIONS | (2) ACQUISITIONS | |||
rogenSi | ||||
In the third quarter of 2014, as an addition to the Customer Strategy Services (“CSS”) segment, the Company acquired substantially all operating assets of rogenSi Worldwide PTY, Ltd., a global leadership, change management, sales, performance training and consulting company. | ||||
The total purchase price was $34.3 million, subject to certain working capital adjustments, and consists of $18.0 million in cash at closing and an estimated $14.5 million in three earn-out payments, contingent on the acquired companies and TeleTech's CSS segment achieving certain agreed earnings before interest, taxes, depreciation and amortization (“EBITDA”) targets, as defined in the sale and purchase agreement. Additionally, the estimated purchase price included a $1.8 million hold-back payment for contingencies as defined in the sale and purchase agreement which will be paid in the first quarter of 2016, if required. The total contingent consideration possible per the sale and purchase agreement ranges from zero to $17.6 million and the earn-out payments are payable in early 2015, 2016 and 2017, based on July 1, 2014 through December 31, 2014, and full year 2015 and 2016 performance, respectively. | ||||
The fair value of the contingent consideration was measured by applying a probability weighted discounted cash flow model based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 4.6% and expected future value of payments of $15.3 million. The $15.3 million of expected future payments was calculated using a probability weighted EBITDA assessment with the highest probability associated with rogenSi achieving the targeted EBITDA for each earn-out year. As of the acquisition date, the fair value of the contingent consideration was approximately $14.5 million. During the fourth quarter of 2014, the Company recorded a fair value adjustment of the contingent consideration of $0.5 million based on revised estimates noting higher probability of exceeding the EBITDA targets (see Note 10). As of December 31, 2014, the fair value of the contingent consideration was $15.2 million, of which $6.4 million and $8.8 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): | ||||
Preliminary Estimate of Acquisition Date Fair Value | ||||
Cash | $ | 2,670 | ||
Accounts receivable, net | 6,417 | |||
Other assets | 3,328 | |||
Property, plant and equipment | 578 | |||
Customer relationships | 9,314 | |||
Goodwill | 20,860 | |||
43,167 | ||||
Accounts payable | 708 | |||
Accrued employee compensation and benefits | 2,203 | |||
Accrued expenses | 1,146 | |||
Other | 4,845 | |||
8,902 | ||||
Total purchase price | $ | 34,265 | ||
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 above. | ||||
The rogenSi customer relationships have been estimated based on similar acquisitions and are amortized over an estimated useful life of five years. The goodwill recognized from the rogenSi acquisition is estimated to be attributable, but not limited to, the acquired workforce and expected synergies within CSS. None of the tax basis of the acquired intangibles and goodwill will be deductible for income tax purposes. The acquired goodwill and the operating results of rogenSi are reported, as its own reporting unit, within the CSS segment from the date of acquisition. | ||||
Sofica | ||||
In the first quarter of 2014, as an addition to the Customer Management Services (“CMS”) segment, the Company acquired a 100% interest in Sofica Group, a Bulgarian joint stock company (“Sofica”). Sofica provides customer lifecycle management and other business process services across multiple channels in multiple sites in over 18 languages. | ||||
The purchase price of $14.2 million included $9.4 million in cash consideration (including working capital adjustments) and an estimated $3.8 million in earn-out payments, payable in 2015 and 2016, contingent on Sofica achieving specified EBITDA targets, as defined by the stock purchase agreement. The total contingent consideration possible per the stock purchase agreement ranges from zero to $7.5 million. Additionally, the purchase price includes a $1.0 million hold-back payment for contingencies as defined in the stock purchase agreement which will be paid in the second quarter of 2016, if required. | ||||
The fair value of the contingent consideration was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 5.0% and expected future value of payments of $4.0 million. The $4.0 million of expected future payments was calculated using a 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 consideration was approximately $3.8 million. During the third and fourth quarters of 2014, the Company recorded fair value adjustments of the contingent consideration of $1.8 million and $0.6 million, respectively based on revised estimates noting higher probability of exceeding the EBITDA targets (see Note 10). As of December 31, 2014, the fair value of the contingent consideration was $6.3 million, of which $2.8 million and $3.5 million were included in Other accrued expenses and Other long-term liabilities in the accompanying Consolidated Balance Sheets, respectively. | ||||
The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): | ||||
Acquisition Date Fair Value | ||||
Cash | $ | 857 | ||
Accounts receivable, net | 3,175 | |||
Other assets | 378 | |||
Property, plant and equipment | 653 | |||
Customer relationships | 4,915 | |||
Goodwill | 6,358 | |||
16,336 | ||||
Accounts payable | 296 | |||
Accrued employee compensation and benefits | 697 | |||
Accrued expenses | 664 | |||
Other | 507 | |||
2,164 | ||||
Total purchase price | $ | 14,172 | ||
The Sofica customer relationships, trade name and non-compete agreements have an estimated useful life of six years, three years and five years, respectively. The goodwill recognized from the Sofica acquisition was attributable primarily to the acquired workforce of Sofica, expected synergies, and other factors. None of the tax basis of the acquired intangibles and goodwill will be deductible for income tax purposes. The acquired goodwill and the operating results of Sofica are reported within the CMS segment from the date of acquisition. | ||||
WebMetro | ||||
In the third quarter of 2013, as an addition to the Customer Growth Services (“CGS”) segment, 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 cash consideration (inclusive of working capital adjustments) and an estimated $2.5 million in earn-out payments, payable in 2014 and 2015, contingent on WebMetro achieving specified EBITDA targets, as defined by the stock purchase agreement. | ||||
The Company was also obligated to make earn-out payments over the next two years if WebMetro achieved 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. The first contingent payment of $1.0 million was completed in the second quarter of 2014. During the third quarter of 2014, the Company recorded a fair value adjustment to reduce the contingent consideration by $1.7 million based on revised estimates noting the achievement of the EBITDA target is remote (see Note 10). As of December 31, 2014, the fair value of the remaining contingent consideration was zero. | ||||
In the third quarter of 2014, the Company finalized its valuation of WebMetro for the acquisition date assets acquired and liabilities assumed. There were no material measurement period adjustments in 2014. | ||||
Other Acquisitions | ||||
iKnowtion | ||||
In the first quarter of 2012, as an addition to the CSS segment, the Company acquired an 80% interest in iKnowtion, LLC (“iKnowtion”). iKnowtion integrates proven marketing analytics methodologies and business consulting capabilities to help clients improve their return on marketing expenditures in such areas as demand generation, share of wallet, and channel mix optimization. | ||||
The total cash consideration paid was $1.2 million. | ||||
The Company is also obligated to make earn-out payments over the next four years if iKnowtion achieves specified earnings before interest, taxes, depreciation and amortization (“EBITDA”) targets, as defined by the purchase and sale agreement. The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 21% and expected future value of payments of $4.3 million. The $4.3 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with iKnowtion achieving the maximum EBITDA targets. As of the acquisition date, the fair value of the contingent payments was approximately $2.9 million. The first contingent payment of $1.4 million was completed during the first quarter of 2014. As of December 31, 2014, the fair value of the remaining contingent consideration was $2.3 million, of which $1.8 million and $0.5 million were included in Other accrued expenses and Other long-term liabilities in the accompanying Consolidated Balance Sheets, respectively. | ||||
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. Refer to Note 17 for more information related to the mandatorily redeemable noncontrolling interest. | ||||
Guidon | ||||
In the fourth quarter of 2012, as an addition to the CSS segment, the Company acquired 100% of the stock of Guidon Performance Solutions' (“Guidon”) parent company. Guidon provides operational consulting services and designs solutions for operational and cultural transformation for global clients. | ||||
The total cash consideration paid was $5.7 million. | ||||
The Company was also obligated to make earn-out payments over the next two years if Guidon achieved specified EBITDA targets as defined in the stock purchase agreement. The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions included in the fair value calculation include a discount rate of 21% and expected future value of payments of $2.8 million. The $2.8 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with Guidon achieving the maximum EBITDA targets. As of the acquisition date, the fair value of the contingent payments was approximately $2.1 million. The first contingent payment of $1.4 million was completed during the first quarter of 2014. During the first quarter of 2014, an agreement was reached in which a fixed final payment was established of $1.0 million which will be paid in the first quarter of 2015. As of December 31, 2014, the $1.0 million accrual was included in Other accrued expenses and Other long-term liabilities in the accompanying Consolidated Balance Sheets. | ||||
TSG | ||||
In the fourth quarter of 2012, as an addition to the Customer Technology Services (“CTS”) segment, the Company acquired a 100% interest in Technology Solutions Group, Inc. (“TSG”). TSG designs and implements custom communications systems for a variety of business types and sizes. | ||||
The total purchase price was $44.5 million and the total up-front cash consideration paid was $33.3 million. | ||||
The Company is also obligated to make earn-out payments over three years if TSG achieves specified EBITDA targets, as defined by the stock purchase agreement. The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions included in the fair value calculation include a discount rate of 4.6% and expected future value of payments of $12.2 million. The $12.2 million of expected future payments was calculated using a bell curve probability weighted EBITDA assessment with the highest probability associated with TSG achieving the targeted EBITDA for each earn-out year. As of the acquisition date, the fair value of the contingent payments was approximately $11.1 million. The first contingent payment of $5.3 million was completed during the second quarter of 2014. During the second and fourth quarters of 2014, the Company recorded fair value adjustments of $4.0 million and $3.9 million, respectively, to reduce the contingent consideration based on revised estimates noting the achievement of the EBITDA targets for 2014 and 2015 are remote (see Note 10). As of December 31, 2014 the fair value of the contingent consideration was zero. | ||||
Globant | ||||
The Company signed an agreement effective January 31, 2014 to transfer its assets, operations and employees in Argentina to IAFH Global S.A., better known as Globant, a technology service provider based in Argentina. This action placed our assets and employees with a leader focused on developing innovative software products. As part of this agreement, Globant will provide services to TeleTech through their Development Center in Buenos Aires. | ||||
Financial Impact of Acquired Businesses | ||||
The acquired businesses purchased in 2014, 2013 and 2012 noted above contributed revenues of $91.9 million, $69.1 million and $8.9 million and income from operations of $7.7 million, $10.0 million and $1.4 million, inclusive of $6.3 million, $4.2 million and $0.4 million of acquired intangible amortization, to the Company for the years ended December 31, 2014, 2013 and 2012, respectively. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
SEGMENT INFORMATION [ABSTRACT] | ||||||||||||||||
SEGMENT INFORMATION | (3) SEGMENT INFORMATION | |||||||||||||||
The Company reports the following four segments: | ||||||||||||||||
the CMS 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 CGS 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 CTS 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 CSS 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 (in thousands): | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income from Operations | ||||||||||||
Customer Management Services | $ | 923,497 | $ | - | $ | 923,497 | $ | 40,577 | $ | 76,792 | ||||||
Customer Growth Services | 115,434 | - | 115,434 | 6,048 | 7,255 | |||||||||||
Customer Technology Services | 139,218 | -36 | 139,182 | 7,489 | 4,519 | |||||||||||
Customer Strategy Services | 63,668 | - | 63,668 | 2,424 | 7,909 | |||||||||||
Total | $ | 1,241,817 | $ | -36 | $ | 1,241,781 | $ | 56,538 | $ | 96,475 | ||||||
Year Ended December 31, 2013 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income from Operations | ||||||||||||
Customer Management Services | $ | 892,145 | $ | -1,262 | $ | 890,883 | $ | 33,884 | $ | 75,689 | ||||||
Customer Growth Services | 100,996 | - | 100,996 | 4,127 | 3,024 | |||||||||||
Customer Technology Services | 152,769 | -284 | 152,485 | 6,201 | 19,965 | |||||||||||
Customer Strategy Services | 49,643 | -850 | 48,793 | 1,852 | 2,721 | |||||||||||
Total | $ | 1,195,553 | $ | -2,396 | $ | 1,193,157 | $ | 46,064 | $ | 101,399 | ||||||
Year Ended December 31, 2012 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income from Operations | ||||||||||||
Customer Management Services | $ | 923,774 | $ | - | $ | 923,774 | $ | 32,714 | $ | 60,271 | ||||||
Customer Growth Services | 100,846 | -74 | 100,772 | 3,904 | 2,258 | |||||||||||
Customer Technology Services | 101,430 | -4,582 | 96,848 | 3,026 | 15,714 | |||||||||||
Customer Strategy Services | 43,358 | -1,771 | 41,587 | 1,522 | 302 | |||||||||||
Total | $ | 1,169,408 | $ | -6,427 | $ | 1,162,981 | $ | 41,166 | $ | 78,545 | ||||||
As of and for the Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Capital Expenditures | ||||||||||||||||
Customer Management Services | $ | 49,630 | $ | 40,007 | $ | 32,736 | ||||||||||
Customer Growth Services | 3,195 | 3,421 | 3,983 | |||||||||||||
Customer Technology Services | 14,423 | 6,450 | 3,390 | |||||||||||||
Customer Strategy Services | 393 | 486 | 544 | |||||||||||||
Total | $ | 67,641 | $ | 50,364 | $ | 40,653 | ||||||||||
Total Assets | ||||||||||||||||
Customer Management Services | $ | 514,957 | $ | 554,015 | $ | 588,627 | ||||||||||
Customer Growth Services | 88,394 | 86,416 | 54,164 | |||||||||||||
Customer Technology Services | 159,441 | 157,040 | 152,500 | |||||||||||||
Customer Strategy Services | 89,683 | 44,871 | 56,339 | |||||||||||||
Total | $ | 852,475 | $ | 842,342 | $ | 851,630 | ||||||||||
Goodwill | ||||||||||||||||
Customer Management Services | $ | 25,871 | $ | 19,819 | $ | 20,288 | ||||||||||
Customer Growth Services | 30,395 | 30,128 | 24,439 | |||||||||||||
Customer Technology Services | 42,709 | 42,709 | 42,153 | |||||||||||||
Customer Strategy Services | 29,730 | 10,087 | 11,361 | |||||||||||||
Total | $ | 128,705 | $ | 102,743 | $ | 98,241 | ||||||||||
The following tables present certain financial data based upon the geographic location where the services are provided (in thousands): | ||||||||||||||||
As of and for the | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Revenue | ||||||||||||||||
United States | $ | 603,297 | $ | 556,239 | $ | 474,236 | ||||||||||
Philippines | 348,339 | 354,942 | 334,541 | |||||||||||||
Latin America | 172,270 | 176,906 | 188,071 | |||||||||||||
Europe / Middle East / Africa | 83,944 | 72,644 | 111,304 | |||||||||||||
Asia Pacific | 28,294 | 18,489 | 17,652 | |||||||||||||
Canada | 5,637 | 13,937 | 37,177 | |||||||||||||
Total | $ | 1,241,781 | $ | 1,193,157 | $ | 1,162,981 | ||||||||||
Property, plant and equipment, gross | ||||||||||||||||
United States | $ | 382,508 | $ | 337,311 | $ | 311,904 | ||||||||||
Philippines | 119,482 | 101,123 | 107,676 | |||||||||||||
Latin America | 67,193 | 75,618 | 70,915 | |||||||||||||
Europe / Middle East / Africa | 13,367 | 12,311 | 8,767 | |||||||||||||
Asia Pacific | 26,502 | 28,195 | 29,884 | |||||||||||||
Canada | 19,299 | 20,941 | 25,908 | |||||||||||||
Total | $ | 628,351 | $ | 575,499 | $ | 555,054 | ||||||||||
Other long-term assets | ||||||||||||||||
United States | $ | 27,728 | $ | 34,891 | $ | 35,978 | ||||||||||
Philippines | 5,202 | 4,408 | 4,124 | |||||||||||||
Latin America | 1,456 | 5,299 | 4,696 | |||||||||||||
Europe / Middle East / Africa | 692 | 311 | 887 | |||||||||||||
Asia Pacific | 1,309 | 779 | 1,004 | |||||||||||||
Canada | 271 | 38 | 95 | |||||||||||||
Total | $ | 36,658 | $ | 45,726 | $ | 46,784 | ||||||||||
ACCOUNTS_RECEIVABLE_AND_SIGNIF
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |||||||||||||
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS | (4) ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS | ||||||||||||
Accounts receivable, net in the accompanying Consolidated Balance Sheets consists of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Accounts receivable | $ | 279,857 | $ | 239,914 | |||||||||
Less: Allowance for doubtful accounts | -3,425 | -3,815 | |||||||||||
Accounts receivable, net | $ | 276,432 | $ | 236,099 | |||||||||
Activity in the Company's Allowance for doubtful accounts consists of the following (in thousands): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 3,815 | $ | 3,635 | $ | 3,559 | |||||||
Provision for doubtful accounts | 633 | 695 | 368 | ||||||||||
Uncollectible receivables written-off | -681 | -315 | -209 | ||||||||||
Effect of foreign currency | -342 | -200 | -83 | ||||||||||
Balance, end of year | $ | 3,425 | $ | 3,815 | $ | 3,635 | |||||||
Significant Clients | |||||||||||||
The Company had one client that contributed in excess of 10% of total revenue in the years ended December 31, 2014, 2013 and 2012. This client operates in the communications industry and is included in the Customer Management Services segment. The revenue from this client as a percentage of total revenue was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Telecommunications client | 11% | 12% | 10% | ||||||||||
Accounts receivable from this client was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Telecommunications client | $ | 38,400 | $ | 24,120 | $ | 25,471 | |||||||
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 exists as of December 31, 2014. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY PLANT AND EQUIPMENT | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
PROPERTY PLANT AND EQUIPMENT [ABSTRACT] | |||||||
PROPERTY, PLANT AND EQUIPMENT | (5) PROPERTY, PLANT AND EQUIPMENT | ||||||
Property, plant and equipment consisted of the following (in thousands): | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Land and buildings | $ | 38,833 | $ | 38,833 | |||
Computer equipment and software | 334,127 | 297,567 | |||||
Telephone equipment | 38,925 | 39,238 | |||||
Furniture and fixtures | 57,411 | 50,638 | |||||
Leasehold improvements | 158,844 | 148,890 | |||||
Motor vehicles | 175 | 188 | |||||
Construction-in-progress and other | 36 | 145 | |||||
Property, plant and equipment, gross | 628,351 | 575,499 | |||||
Less: Accumulated depreciation and amortization | -478,139 | -448,780 | |||||
Property, plant and equipment, net | $ | 150,212 | $ | 126,719 | |||
Depreciation and amortization expense for property, plant and equipment was $46.9 million, $38.7 million and $37.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
GOODWILL
GOODWILL | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
GOODWILL [ABSTRACT] | |||||||||||||||||||
GOODWILL | (6) GOODWILL | ||||||||||||||||||
Goodwill consisted of the following (in thousands): | |||||||||||||||||||
31-Dec-13 | Acquisitions / Adjustments | Impairments | Deconsolidation of Subsidiary | Effect of Foreign Currency | 31-Dec-14 | ||||||||||||||
Customer Management Services | $ | 19,819 | $ | 6,358 | $ | - | $ | - | $ | -306 | $ | 25,871 | |||||||
Customer Growth Services | 30,128 | 267 | - | - | - | 30,395 | |||||||||||||
Customer Technology Services | 42,709 | - | - | - | - | 42,709 | |||||||||||||
Customer Strategy Services | 10,087 | 21,210 | - | - | -1,567 | 29,730 | |||||||||||||
Total | $ | 102,743 | $ | 27,835 | $ | - | $ | - | $ | -1,873 | $ | 128,705 | |||||||
31-Dec-12 | Acquisitions / Adjustments | Impairments | Deconsolidation of Subsidiary | Effect of Foreign Currency | 31-Dec-13 | ||||||||||||||
Customer Management Services | $ | 20,288 | $ | - | $ | - | $ | - | $ | -469 | $ | 19,819 | |||||||
Customer Growth Services | 24,439 | 5,689 | - | - | - | 30,128 | |||||||||||||
Customer Technology Services | 42,153 | 478 | - | - | 78 | 42,709 | |||||||||||||
Customer Strategy Services | 11,361 | - | - | -1,274 | - | 10,087 | |||||||||||||
Total | $ | 98,241 | $ | 6,167 | $ | - | $ | -1,274 | $ | -391 | $ | 102,743 | |||||||
Impairment | |||||||||||||||||||
The Company has eleven reporting units with goodwill and performs a goodwill impairment test on at least an annual basis. The Company conducts its annual goodwill impairment test during the fourth quarter, or more frequently, if indicators of impairment exist. During 2014, the Company identified indicators of impairment for the TSG reporting unit, including lower revenues and profits than had been anticipated at the time of the acquisition and the 2014 budget/forecast. Upon identification of the impairment indicators, we completed a quantitative assessment of goodwill (Step 1 of the goodwill impairment analysis). The carrying value of TSG was $34.1 million at December 1, 2014, including $23.0 million of goodwill. Based on our assessment, the estimated fair value of the TSG reporting unit exceeded its carrying value by approximately 19.0%. The estimate of fair value was based on generally accepted valuation techniques and information available at the date of the assessment, which incorporated management's assumptions about expected revenues and future cash flows and available market information for comparable companies. | |||||||||||||||||||
For the annual goodwill impairment analysis, the Company elected to perform a Step 1 evaluation for all of its reporting units, which includes comparing a reporting unit's estimated fair value to its carrying value. The determination of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term growth rates for the businesses, the useful lives over which the cash flows will occur and determination of appropriate discount rates (based in part on the Company's weighted average cost of capital). Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. As of December 1, 2014, the date of the annual impairment testing, the Company concluded that the fair values of all reporting units were in excess of their respective carrying values and the goodwill for those reporting units was not impaired. | |||||||||||||||||||
The process of evaluating the fair value of the reporting units is highly subjective and requires significant judgment and estimates as the reporting units operate in a number of markets and geographical regions. We used an income approach to determine our best estimates of fair value which incorporated the following significant assumptions: | |||||||||||||||||||
Revenue projections, including revenue growth during the forecast periods ranging from 3% to 20%; | |||||||||||||||||||
EBITDA margin projections held flat over the forecast periods ranging from 10% to 15%; | |||||||||||||||||||
Estimated income tax rates of 27% to 40%; | |||||||||||||||||||
Estimated capital expenditures ranging from $0.1 million to $24 million; and | |||||||||||||||||||
Discount rates ranging from 12% to 17% based on various inputs, including the risks associated with the specific reporting units as well as their revenue growth and EBITDA margin assumptions. | |||||||||||||||||||
As noted above, the Company has concluded that goodwill for all reporting units was not impaired at December 1, 2014. While no impairment indicators were identified, due to the small margin of fair value in excess of carrying value for two reporting units, Revana (approximately 6.0%) and WebMetro (approximately 11%) , these reporting units remain at considerable risk for future impairment if projected operating results are not met or other inputs into the fair value measurement change. | |||||||||||||||||||
If all assumptions are held constant, a 1% increase in the discount rate would result in approximately $4.5 million decrease in the estimated fair value of the Revana reporting unit. A 5% percentage annual decrease in the projected revenue over the forecast period would result in a $9.2 million decrease in the estimated fair value of the Revana reporting unit. Such a change in either of these assumptions individually would have resulted in the Revana reporting unit failing Step 1 of the goodwill impairment analysis at December 1, 2014. | |||||||||||||||||||
If all assumptions are held constant, a 1.5% point increase in the discount rate would result in approximately $2.8 million decrease in the estimated fair value of the WebMetro reporting unit. A 5% annual decrease in the projected revenue over the forecast period would result in a $3.3 million decrease in the estimated fair value of the WebMetro reporting unit. Such a change in either of these assumptions individually would have resulted in the WebMetro reporting unit failing Step 1 of the goodwill impairment analysis at December 1, 2014. |
CONTRACT_ACQUISITION_COSTS
CONTRACT ACQUISITION COSTS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
CONTRACT ACQUISITION COSTS [ABSTRACT] | |||||||
CONTRACT ACQUISITION COSTS | (7) CONTRACT ACQUISITION COSTS | ||||||
Contract acquisition costs, net, which are included in Other long-term assets in the accompanying Consolidated Balance Sheets, consisted of the following (in thousands): | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Contract acquisition costs, gross | $ | 2,415 | $ | 5,278 | |||
Less: Accumulated amortization | -1,187 | -3,636 | |||||
Contract acquisition costs, net | $ | 1,228 | $ | 1,642 | |||
Amortization of contract acquisition costs recorded as a reduction to Revenue was $0.9 million, $1.2 million and $1.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||
Expected future amortization of contract acquisition costs as of December 31, 2014 is as follows (in thousands): | |||||||
2015 | $ | 510 | |||||
2016 | 302 | ||||||
2017 | 301 | ||||||
2018 | 115 | ||||||
Total | $ | 1,228 | |||||
OTHER_INTANGIBLE_ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
OTHER INTANGIBLE ASSETS [Abstract] | ||||||||||||||||
OTHER INTANGIBLE ASSETS | (8) OTHER INTANGIBLE ASSETS | |||||||||||||||
Other intangible assets which are included in Other long-term assets in the accompanying Consolidated Balance Sheets consisted of the following (in thousands): | ||||||||||||||||
31-Dec-13 | Amortization and Impairment | Acquisitions | Effect of Foreign Currency | 31-Dec-14 | ||||||||||||
Customer relationships, gross | $ | 50,830 | $ | - | 14,115 | -1,031 | $ | 63,914 | ||||||||
Customer relationships - | ||||||||||||||||
accumulated amortization | -13,547 | -6,779 | - | - | -20,326 | |||||||||||
Other intangible assets, gross | 11,634 | - | 1,607 | -128 | 13,113 | |||||||||||
Other intangible assets - | ||||||||||||||||
accumulated amortization | -3,818 | -2,691 | - | - | -6,509 | |||||||||||
Trade name - indefinite life | 9,713 | - | - | - | 9,713 | |||||||||||
Other intangible assets, net | $ | 54,812 | $ | -9,470 | $ | 15,722 | $ | -1,159 | $ | 59,905 | ||||||
31-Dec-12 | Amortization and Impairment | Acquisitions | Effect of Foreign Currency | 31-Dec-13 | ||||||||||||
Customer relationships, gross | $ | 46,171 | $ | - | $ | 5,920 | $ | -1,261 | $ | 50,830 | ||||||
Customer relationships - | ||||||||||||||||
accumulated amortization | -8,588 | -5,343 | - | 384 | -13,547 | |||||||||||
Other intangible assets, gross | 8,021 | - | 3,600 | 13 | 11,634 | |||||||||||
Other intangible assets - | ||||||||||||||||
accumulated amortization | -1,943 | -1,875 | - | - | -3,818 | |||||||||||
Trade name - indefinite life | 10,800 | -1,087 | - | - | 9,713 | |||||||||||
Other intangible assets, net | $ | 54,461 | $ | -8,305 | $ | 9,520 | $ | -864 | $ | 54,812 | ||||||
Customer relationships are being amortized over the remaining weighted average useful life of 8.4 years and other intangible assets are being amortized over the remaining weighted average useful life of 3.7 years. Amortization expense related to intangible assets was $9.6 million, $7.2 million and $3.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Expected future amortization of other intangible assets as of December 31, 2014 is as follows (in thousands): | ||||||||||||||||
2015 | $ | 10,768 | ||||||||||||||
2016 | 10,403 | |||||||||||||||
2017 | 9,075 | |||||||||||||||
2018 | 7,203 | |||||||||||||||
2019 | 6,027 | |||||||||||||||
Thereafter | 7,434 | |||||||||||||||
Total | $ | 50,910 | ||||||||||||||
In connection with the reorganization of the CSS segment an interim impairment analysis was completed during the second quarter of 2013. The indefinite-lived intangible asset evaluated for impairment consisted of the PRG trade name. The Company calculated the fair value of the trade name using a relief from royalty method based on forecasted revenues sold under the trade name using significant inputs not observable in the market (Level 3 inputs). The valuation assumptions included an estimated royalty rate of 6.0%, a discount rate specific to the trade name of 38.0% and a perpetuity growth rate of 7.0%. Based on the calculated fair value of $5.3 million, the Company recorded impairment expense of $1.1 million in the three months ended June 30, 2013. The Company reevaluated the PRG trade name for impairment as of December 31, 2013. The Company used the same method to fair value the PRG trade name and similar inputs described above. The forecasted revenues used to fair value the PRG trade name changed resulting in a fair value of $5.7 million. This fair value was approximately 7% higher than the book value of $5.3 million. As a result, the Company continues to evaluate the PRG trade name for impairment. | ||||||||||||||||
Definite-lived long-lived assets consisted of fixed assets and an intangible asset related to the PRG customer relationships. The Company determined that the undiscounted future cash flows would be sufficient to cover the net book value of all definite-lived long-lived assets upon reorganization of the Customer Strategy Services segment and as of December 31, 2013. |
DERIVATIVES
DERIVATIVES | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
DERIVATIVES [ABSTRACT] | |||||||||||||||||||
DERIVATIVES | (9) DERIVATIVES | ||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||
The Company enters into foreign exchange and interest rate related derivatives. Foreign exchange derivatives entered into consist of forward and option contracts to reduce the Company's exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Interest rate derivatives consist of interest rate swaps to reduce the Company's exposure to interest rate fluctuations associated with its variable rate debt. Upon proper qualification, these contracts are designated as cash flow hedges. It is the Company's policy to only enter into derivative contracts with investment grade counterparty financial institutions, and correspondingly, the fair value of derivative assets consider, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company's creditworthiness. As of December 31, 2014, the Company had not experienced, nor did 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 years ended December 31, 2014, 2013 and 2012 (in thousands and net of tax): | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Aggregate unrealized net gain/(loss) at beginning of year | $ | -8,352 | $ | 9,559 | $ | -5,852 | |||||||||||||
Add: Net gain/(loss) from change in fair value of cash flow hedges | -12,121 | -13,721 | 17,748 | ||||||||||||||||
Less: Net (gain)/loss reclassified to earnings from effective hedges | 2,128 | -4,190 | -2,337 | ||||||||||||||||
Aggregate unrealized net gain/(loss) at end of year | $ | -18,345 | $ | -8,352 | $ | 9,559 | |||||||||||||
The Company's foreign exchange cash flow hedging instruments as of December 31, 2014 and 2013 are summarized as follows (in thousands). All hedging instruments are forward contracts. | |||||||||||||||||||
As of December 31, 2014 | Local Currency Notional Amount | U.S. Dollar Notional Amount | % Maturing in 2015 | Contracts Maturing Through | |||||||||||||||
Canadian Dollar | 1,500 | $ | 1,441 | 100.00% | Jun-15 | ||||||||||||||
Philippine Peso | 17,428,000 | 398,046 | (1) | 40.00% | Aug-19 | ||||||||||||||
Mexican Peso | 2,532,000 | 179,089 | 29.70% | Sep-19 | |||||||||||||||
New Zealand Dollar | 490 | 381 | 100.00% | Jul-15 | |||||||||||||||
$ | 578,957 | ||||||||||||||||||
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 Dollars | 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 December 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 December 31, 2014 and 2013 were as follows: | |||||||||||||||||||
Notional Amount | Variable Rate Received | Fixed Rate Paid | Contract Commencement Date | Contract Maturity Date | |||||||||||||||
As of December 31, 2014 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | ||||||||||||
and 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 December 31, 2014 and 2013, the total notional amount of the Company's forward contracts used as fair value hedges was $242.5 million and $204.5 million, respectively. | |||||||||||||||||||
Derivative Valuation and Settlements | |||||||||||||||||||
The Company's derivatives as of December 31, 2014 and 2013 were as follows (in thousands): | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
Designation: | Designated as Hedging Instruments | Not Designated as Hedging Instruments | |||||||||||||||||
Derivative contract type: | 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 | $ | 192 | $ | - | $ | 797 | $ | - | |||||||||||
Other long-term assets | 389 | - | - | - | |||||||||||||||
Other current liabilities | -12,680 | -988 | -5 | - | |||||||||||||||
Other long-term liabilities | -17,070 | -452 | - | - | |||||||||||||||
Total fair value of derivatives, net | $ | -29,169 | $ | -1,440 | $ | 792 | $ | - | |||||||||||
31-Dec-13 | |||||||||||||||||||
Designation: | Designated as Hedging Instruments | Not Designated as Hedging Instruments | |||||||||||||||||
Derivative contract type: | 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 effect of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2014 and 2013 were as follows (in thousands): | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Designation: | Designated as Hedging Instruments | Designated as Hedging Instruments | |||||||||||||||||
Derivative contract type: | 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 | $ | -11,926 | $ | -195 | $ | -13,530 | $ | -191 | |||||||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||||||
from accumulated OCI to income - effective portion: | |||||||||||||||||||
Revenue | $ | -2,429 | $ | - | $ | 7,973 | $ | - | |||||||||||
Interest expense | - | -1,060 | - | -1,047 | |||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Designation: | Not Designated as Hedging Instruments | Not Designated as Hedging Instruments | |||||||||||||||||
Derivative contract type: | Foreign Exchange | Leases | Foreign Exchange | Leases | |||||||||||||||
Derivative classification: | Option and Forward Contracts | Fair Value | Embedded Derivative | Option and Forward Contracts | Fair Value | Embedded Derivative | |||||||||||||
Amount and location of net gain | |||||||||||||||||||
or (loss) recognized in the | |||||||||||||||||||
Consolidated Statement of | |||||||||||||||||||
Comprehensive Income (Loss): | |||||||||||||||||||
Cost of services | $ | - | $ | - | $ | -116 | $ | - | $ | - | $ | 162 | |||||||
Other income (expense), net | - | -386 | - | - | -6,360 | - | |||||||||||||
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
FAIR VALUE [Abstract] | |||||||||||||||
FAIR VALUE | (10) 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 December 31, 2014 and 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 December 31, 2014 and 2013, the Company had $100.0 million and $100.0 million, respectively, of borrowings outstanding under the Credit Agreement. During 2014 and 2013, borrowings accrued interest at an average rate of 1.2% and 1.4% per annum, respectively, excluding unused commitment fees. The amounts recorded in the accompanying Balance Sheets approximate fair value due to the variable nature of the debt. | |||||||||||||||
Derivatives - Net derivative assets (liabilities) are measured at fair value on a recurring basis. The portfolio is valued using models based on market observable inputs, including both forward and spot foreign exchange rates, interest rates, implied volatility, and counterparty credit risk, including the ability of each party to execute its obligations under the contract. As of December 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 December 31, 2014 and 2013 (in thousands): | |||||||||||||||
As of December 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 | $ | - | $ | -29,169 | $ | - | $ | -29,169 | |||||||
Interest rate swaps | - | -1,440 | - | -1,440 | |||||||||||
Fair value hedges | - | 792 | - | 792 | |||||||||||
Embedded derivatives | - | - | - | - | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -29,817 | $ | - | $ | -29,817 | |||||||
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 December 31, 2014 and 2013 (in thousands): | |||||||||||||||
As of December 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 | $ | - | $ | - | $ | - | |||||||||
Derivative instruments, net | - | - | - | ||||||||||||
Total assets | $ | - | $ | - | $ | - | |||||||||
Liabilities | |||||||||||||||
Deferred compensation plan liability | $ | - | $ | -8,478 | $ | - | |||||||||
Derivative instruments, net | - | -29,817 | - | ||||||||||||
Contingent consideration | - | - | -24,744 | ||||||||||||
Total liabilities | $ | - | $ | -38,295 | $ | -24,744 | |||||||||
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 | - | ||||||||||||
Contingent consideration | - | - | -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”). As of December 31, 2013, the money market funds permitted 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. | |||||||||||||||
Contingent Consideration — The Company recorded contingent consideration related to the acquisitions of iKnowtion, Guidon, TSG, WebMetro, Sofica and rogenSi. These contingent 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%, 5.0%, or 4.6%, respectively. The discount rates vary dependent on the specific risks of each acquisition including the country of operation, the nature of services and complexity of the acquired business, and other factors. These measurements were based on significant inputs not observable in the market. The Company will accrete interest expense each period using the effective interest method until the future value of these contingent payables reaches their expected future value of $25.7 million. Interest expense related to all recorded contingent payables is included in Interest expense in the Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||
During the second and fourth quarters of 2014, the Company recorded fair value adjustments of the contingent consideration associated with the TSG reporting unit within the CTS segment based on revised estimates noting achievement of the targeted 2014 and 2015 EBITDA was remote. Accordingly, a $4.0 million and $3.9 million, respectively, reductions in the payable were recorded as of June 30, 2014 and December 31, 2014 and were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||
During the third and fourth quarters of 2014, the Company recorded fair value adjustments of the contingent consideration associated with the Sofica reporting unit within the CMS segment of $1.8 million and $0.6 million, respectively, as the Company's revised estimates reflected Sofica exceeding its EBITDA targets for both 2014 and 2015. Accordingly, the $1.8 million and $0.6 million increases in the payable were recorded as of September 30, 2014 and December 31, 2014 and were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||
During the third quarter of 2014, the Company recorded a fair value adjustment of the contingent consideration associated with the WebMetro reporting unit within the CGS segment based on revised estimates noting achievement of the targeted 2014 EBITDA was remote. Accordingly, a $1.7 million reduction in the payable was recorded as of September 30, 2014 and was included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||
During the fourth quarter of 2014, the Company recorded a fair value adjustment of the contingent consideration associated with the rogenSi reporting unit within the CSS segment based on revised estimates reflecting rogenSi exceeding its EBITDA targets for 2014. Accordingly a $0.5 million increase in the payable was recorded as of December 31, 2014 and was included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||
A rollforward of the activity in the Company's fair value of the contingent consideration is as follows (in thousands): | |||||||||||||||
31-Dec-13 | Acquisitions | Payments | Imputed Interest / Adjustments | 31-Dec-14 | |||||||||||
iKnowtion | $ | 3,470 | $ | - | $ | -1,400 | $ | 195 | $ | 2,265 | |||||
Guidon | 2,637 | - | -1,426 | -211 | 1,000 | ||||||||||
TSG | 12,933 | - | -5,292 | -7,641 | - | ||||||||||
WebMetro | 2,708 | - | -1,026 | -1,682 | - | ||||||||||
Sofica | - | 3,830 | - | 2,487 | 6,317 | ||||||||||
rogenSi | - | 14,543 | - | 619 | 15,162 | ||||||||||
Total | $ | 21,748 | $ | 18,373 | $ | -9,144 | $ | -6,233 | $ | 24,744 | |||||
31-Dec-12 | Acquisitions | Payments | Imputed Interest / Adjustments | 31-Dec-13 | |||||||||||
iKnowtion | $ | 3,633 | $ | - | $ | -1,100 | $ | 937 | $ | 3,470 | |||||
Guidon | 2,200 | - | - | 437 | 2,637 | ||||||||||
TSG | 11,157 | - | - | 1,776 | 12,933 | ||||||||||
WebMetro | - | 2,557 | - | 151 | 2,708 | ||||||||||
Total | $ | 16,990 | $ | 2,557 | $ | -1,100 | $ | 3,301 | $ | 21,748 | |||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES [ABSTRACT] | |||||||||||
INCOME TAXES | (11) INCOME TAXES | ||||||||||
The sources of pre-tax operating income (loss) are as follows (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | 20,569 | $ | 10,816 | $ | -8,336 | |||||
Foreign | 79,890 | 81,253 | 82,198 | ||||||||
Total | $ | 100,459 | $ | 92,069 | $ | 73,862 | |||||
The components of the Company's Provision for (benefit from) income taxes are as follows (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current provision for (benefit from) | |||||||||||
Federal | $ | -699 | $ | -320 | $ | -2,211 | |||||
State | 270 | 150 | -1,013 | ||||||||
Foreign | 13,957 | 13,876 | 809 | ||||||||
Total current provision for (benefit from) | 13,528 | 13,706 | -2,415 | ||||||||
Deferred provision for (benefit from) | |||||||||||
Federal | 10,148 | 4,674 | 1,215 | ||||||||
State | 423 | 195 | 64 | ||||||||
Foreign | -1,057 | 2,023 | 1,075 | ||||||||
Total deferred provision for (benefit from) | 9,514 | 6,892 | 2,354 | ||||||||
Total provision for (benefit from) income taxes | $ | 23,042 | $ | 20,598 | $ | -61 | |||||
The following reconciles the Company's effective tax rate to the federal statutory rate (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Income tax per U.S. federal statutory rate (35%) | $ | 35,161 | $ | 32,224 | $ | 25,852 | |||||
State income taxes, net of federal deduction | 1,525 | 210 | -345 | ||||||||
Change in valuation allowances | 256 | 3,266 | -315 | ||||||||
Foreign income taxes at different rates than the U.S. | -17,824 | -20,529 | -24,507 | ||||||||
Foreign withholding taxes | 257 | 2,504 | 2,876 | ||||||||
Losses in international markets without tax benefits | 1,649 | 779 | 4,329 | ||||||||
Nondeductible compensation under Section 162(m) | 817 | 1,847 | 1,451 | ||||||||
Liabilities for uncertain tax positions | 1,435 | 77 | -2,988 | ||||||||
Permanent difference related to foreign exchange gains | -11 | -122 | -13 | ||||||||
(Income) losses of foreign branch operations | 225 | 1,447 | -4,263 | ||||||||
Non-taxable earnings of minority interest | -1,141 | -1,172 | -213 | ||||||||
Foreign dividend less foreign tax credits | -1,428 | -2,587 | -2,935 | ||||||||
Increase in deferred tax liability - branch losses in UK | -75 | -954 | -1,012 | ||||||||
Decrease (increase) to deferred tax asset - change in tax rate | -443 | -68 | 946 | ||||||||
State income tax credits and net operating losses | -142 | 615 | 709 | ||||||||
Foreign earnings taxed currently in U.S. | 2,696 | 2,907 | - | ||||||||
Other | 85 | 154 | 367 | ||||||||
Income tax per effective tax rate | $ | 23,042 | $ | 20,598 | $ | -61 | |||||
The Company's deferred income tax assets and liabilities are summarized as follows (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets, gross | |||||||||||
Accrued workers compensation, deferred compensation | |||||||||||
and employee benefits | $ | 17,030 | $ | 7,866 | |||||||
Allowance for doubtful accounts, insurance and other accruals | 4,554 | 4,037 | |||||||||
Amortization of deferred rent liabilities | 2,201 | 1,903 | |||||||||
Net operating losses | 11,296 | 11,023 | |||||||||
Equity compensation | 2,997 | 6,566 | |||||||||
Customer acquisition and deferred revenue accruals | 16,241 | 15,228 | |||||||||
Federal and state tax credits, net | 10,621 | 15,886 | |||||||||
Unrealized losses on derivatives | 11,686 | 4,446 | |||||||||
Other | 12,749 | 9,467 | |||||||||
Total deferred tax assets, gross | 89,375 | 76,422 | |||||||||
Valuation allowances | -10,721 | -10,792 | |||||||||
Total deferred tax assets, net | 78,654 | 65,630 | |||||||||
Deferred tax liabilities | |||||||||||
Long-term lease obligations | - | -12 | |||||||||
Depreciation and amortization | -7,035 | 1,067 | |||||||||
Contract acquisition costs | -11,768 | -11,653 | |||||||||
Future losses in UK | -2,530 | -2,606 | |||||||||
Intangible assets | -7,628 | - | |||||||||
Other | -355 | -600 | |||||||||
Total deferred tax liabilities | -29,316 | -13,804 | |||||||||
Net deferred tax assets | $ | 49,338 | $ | 51,826 | |||||||
Quarterly, the Company assesses the likelihood by jurisdiction that its net deferred tax assets will be recovered. Based on the weight of all available evidence, both positive and negative, the Company records a valuation allowance against deferred tax assets when it is more-likely-than-not that a future tax benefit will not be realized. | |||||||||||
As of December 31, 2014 the Company had approximately $32.3 million of net deferred tax assets in the U.S. and $17.0 million of net deferred tax assets related to certain international locations whose recoverability is dependent upon their future profitability. As of December 31, 2014 the deferred tax valuation allowance was $10.7 million and related primarily to tax losses in foreign jurisdictions and U.S. federal and state tax credits which do not meet the “more-likely-than-not” standard under current accounting guidance. The utilization of these federal and state tax credits are subject to numerous factors including various expiration dates, generation of future taxable income over extended periods of time and state income tax apportionment factors which are subject to change. | |||||||||||
When there is a change in judgment concerning the recovery of deferred tax assets in future periods, a valuation allowance is recorded into earnings during the quarter in which the change in judgment occurred. In 2014, the Company made adjustments to its deferred tax assets and corresponding valuation allowances. The net reduction to the valuation allowance of $0.1 million was due to a $0.5 million increase in certain state credits and NOLs that do not meet the “more-likely-than-not” standard, a $0.4 million increase in valuation allowance in Argentina and Ghana for deferred tax assets that do not meet the “more-likely-than-not” standard, a $0.7 million release of valuation allowance in the Philippines for deferred tax assets, and a $0.3 million release of valuation allowance in various other jurisdictions for deferred tax assets. | |||||||||||
Activity in the Company's valuation allowance accounts consists of the following (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Beginning balance | $ | 10,792 | $ | 20,909 | $ | 16,555 | |||||
Additions of deferred income tax expense | 946 | 4,218 | 5,560 | ||||||||
Reductions of deferred income tax expense | -1,017 | -14,335 | -1,206 | ||||||||
Ending balance | $ | 10,721 | $ | 10,792 | $ | 20,909 | |||||
As of December 31, 2014, after consideration of all tax loss and tax credit carry back opportunities, the Company had net tax loss carry forwards worldwide expiring as follows (in thousands): | |||||||||||
2015 | $ | - | |||||||||
2016 | 1,325 | ||||||||||
2017 | 1,079 | ||||||||||
2018 | - | ||||||||||
After 2018 | 4,442 | ||||||||||
No expiration | 3,102 | ||||||||||
Total | $ | 9,948 | |||||||||
As of December 31, 2014, domestically, the Company had federal tax credit carry forwards in the amount of $3.5 million that if unused will expire in 2020, $3.7 million that if unused will expire in 2021, $2.2 million that if unused will expire in 2022 and $2.3 million that if unused will expire in 2023 and $0.9 million that if unused will expire in 2024. The Company also had state tax credit carry-forwards of $1.8 million that if unused will expire between 2014 and 2023. | |||||||||||
As of December 31, 2014 the cumulative amount of foreign earnings considered permanently invested outside the U.S. was $445.0 million. Those earnings do not include earnings from certain subsidiaries which the Company intends to repatriate to the U.S. or are otherwise considered available for distribution to the U.S. Accordingly, no provision for U.S. federal or state income taxes or foreign withholding taxes has been provided on these undistributed earnings. If these earnings become taxable in the U.S, the Company would be subject to incremental tax expense, after any applicable foreign tax credit, and foreign withholding tax expense. It is not practicable to estimate the additional taxes that may become payable upon the eventual remittance of these foreign earnings. | |||||||||||
The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Costa Rica. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements with an initial period of four years and additional periods for varying years, expiring at various times between 2011 and 2020. The aggregate effect on income tax expense for the years ended December 31, 2014, 2013 and 2012 was approximately $20.2 million, $14.6 million and $20.1 million, respectively, which had a favorable impact on diluted net income per share of $0.27, $0.28 and $0.36, respectively. | |||||||||||
Accounting for Uncertainty in Income Taxes | |||||||||||
In accordance with ASC 740, the Company has recorded a reserve for uncertain tax positions. The total amount of interest and penalties recognized in the accompanying Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss) as of December 31, 2014, 2013 and 2012 was approximately $132 thousand, $77 thousand and $40 thousand, respectively. | |||||||||||
The Company had a reserve for uncertain tax benefits, on a net basis, of $1.9 million and $0.5 million for the years ended December 31, 2014 and 2013, respectively. The liability for uncertain tax positions was not changed in 2014 for tax positions that were resolved favorably or expired. | |||||||||||
The tabular reconciliation of the reserve for uncertain tax benefits on a gross basis without interest for the three years ended December 31, 2014 is presented below (in thousands): | |||||||||||
Balance as of December 31, 2011 | $ | 2,735 | |||||||||
Additions for current year tax positions | 369 | ||||||||||
Reductions in prior year tax positions | -2,746 | ||||||||||
Balance as of December 31, 2012 | 358 | ||||||||||
Additions for current year tax positions | - | ||||||||||
Reductions in prior year tax positions | - | ||||||||||
Balance as of December 31, 2013 | 358 | ||||||||||
Additions for current year tax positions | 1,303 | ||||||||||
Reductions in prior year tax positions | - | ||||||||||
Balance as of December 31, 2014 | $ | 1,661 | |||||||||
At December 31, 2014, the amount of uncertain tax benefits that, if recognized, would reduce tax expense was $1.9 million. Within the next 12 months, it is not expected that unrecognized tax benefits will change as the result of the expiration of various statutes of limitation. | |||||||||||
The Company and its domestic and foreign subsidiaries (including Percepta LLC and its domestic and foreign subsidiaries) file income tax returns as required in the U.S. federal jurisdiction and various state and foreign jurisdictions. The following table presents the major tax jurisdictions and tax years that are open as of December 31, 2014 and subject to examination by the respective tax authorities: | |||||||||||
Tax Jurisdiction | Tax Year Ended | ||||||||||
United States | 2011 to present | ||||||||||
Argentina | 2009 to present | ||||||||||
Australia | 2010 to present | ||||||||||
Brazil | 2009 to present | ||||||||||
Canada | 2006 to present | ||||||||||
Mexico | 2009 to present | ||||||||||
Philippines | 2012 to present | ||||||||||
Spain | 2010 to present | ||||||||||
During the first quarter of 2014, a benefit of $1.2 million was recorded due to the closing of statutes of limitations in Canada. | |||||||||||
During the third quarter of 2014, the Company settled an audit with the taxing authorities in the Netherlands for tax years 2010 and 2011. An expense of $1.3 million was recorded in the quarter as a result of that settlement and the related impact through 2014. | |||||||||||
The Company's U.S. income tax returns filed for the tax years ending December 31, 2011 to present, remain open tax years. The IRS has concluded its audit in the United States for tax years 2009, 2011 and 2012 resulting in no changes to the Company's financial statements or tax liabilities as previously reported. | |||||||||||
The Company has been notified of the intent to audit, or is currently under audit of incomes taxes in the U.S., specifically for the acquired entity Technology Solutions Group (“TSG”), for the tax year 2012 (prior to acquisition) and Canada for tax years 2009 and 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 | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | |||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (12) RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | ||||||||||
Restructuring Charges | |||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company undertook a number of 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. | |||||||||||
During the second quarter of 2012, the Company made the decision to cease operations in Spain and terminated the contracts with its clients. The Company notified the employees and commenced severance procedures as required under Spanish law. The Company recorded $14.7 million of severance expense and $0.4 million of center closure expenses for the year ended December 31, 2012 of which all has been paid as of December 31, 2014. | |||||||||||
A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, 2013 and 2012, respectively, is as follows (in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Reduction in force | |||||||||||
Customer Management Services | $ | 2,182 | $ | 3,832 | $ | 22,371 | |||||
Customer Growth Services | 56 | 43 | 201 | ||||||||
Customer Technology Services | 709 | 73 | 60 | ||||||||
Customer Strategy Services | 389 | 189 | - | ||||||||
Total | $ | 3,336 | $ | 4,137 | $ | 22,632 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Facility exit charges | |||||||||||
Customer Management Services | $ | 14 | $ | 298 | $ | 243 | |||||
Customer Growth Services | - | - | - | ||||||||
Customer Technology Services | - | - | - | ||||||||
Customer Strategy Services | - | - | - | ||||||||
Total | $ | 14 | $ | 298 | $ | 243 | |||||
A rollforward of the activity in the Company's restructuring accruals for the years ended December 31, 2014 and 2013, respectively, is as follows (in thousands): | |||||||||||
Closure of Delivery Centers | Reduction in Force | Total | |||||||||
Balance as of December 31, 2012 | $ | - | $ | 4,079 | $ | 4,079 | |||||
Expense | 298 | 4,352 | 4,650 | ||||||||
Payments | -298 | -6,863 | -7,161 | ||||||||
Changes in estimates | - | -215 | -215 | ||||||||
Balance as of December 31, 2013 | - | 1,353 | 1,353 | ||||||||
Expense | 14 | 3,442 | 3,456 | ||||||||
Payments | -14 | -2,618 | -2,632 | ||||||||
Changes in estimates | - | -106 | -106 | ||||||||
Balance as of December 31, 2014 | $ | - | $ | 2,071 | $ | 2,071 | |||||
The remaining restructuring accruals are expected to be paid or extinguished during 2015 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 2014, 2013 and 2012, the Company recognized impairment losses related to leasehold improvement assets of $0.4 million, $0.1 million, and $1.2 million, respectively, in its Customer Management Services segment. | |||||||||||
During the second quarter of 2013, the Company recorded an impairment charge of $1.1 million related to the PRG trade name intangible asset within the CSS segment. See Note 8 for further information. This expense was included in the Impairment losses in the Consolidated Statements of Comprehensive Income (Loss). | |||||||||||
During the first quarter of 2012, the Company rebranded its Direct Alliance Corporation (“DAC”) subsidiary to RevanaTM, thus the $1.8 million DAC trade name was impaired as of March 31, 2012. This expense was included in the Impairment losses in the Consolidated Statements of Comprehensive Income (Loss). |
INDEBTEDNESS
INDEBTEDNESS | 12 Months Ended |
Dec. 31, 2014 | |
INDEBTEDNESS [ABSTRACT] | |
INDEBTEDNESS | (13) INDEBTEDNESS |
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 December 31, 2014, and 2013, the Company had borrowings of $100.0 million and $100.0 million, respectively, under its Credit Agreement, and its average daily utilization was $285.9 million and $238.1 million for the years ended December 31, 2014 and 2013, respectively. After consideration for issued letters of credit under the Credit Agreement, totaling $3.2 million, the Company's remaining borrowing capacity was $596.8 million as of December 31, 2014. As of December 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 December 31, 2014 and 2013, no foreign loans were outstanding. |
DEFERRED_REVENUE_AND_COSTS
DEFERRED REVENUE AND COSTS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
DEFERRED REVENUE AND COSTS [ABSTRACT] | |||||||
DEFERRED REVENUE AND COSTS | (14) DEFERRED REVENUE AND COSTS | ||||||
Deferred revenue in the accompanying Consolidated Balance Sheets consist of the following (in thousands): | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Deferred Revenue - Current | $ | 29,887 | $ | 28,799 | |||
Deferred Revenue - Long-term | 18,771 | 9,978 | |||||
Total Deferred Revenue | $ | 48,658 | $ | 38,777 | |||
Deferred costs in the accompanying Consolidated Balance Sheets consist of the following (in thousands): | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Deferred Costs - Current | $ | 16,845 | $ | 15,953 | |||
Deferred Costs - Long-term | 12,213 | 13,202 | |||||
Total Deferred Costs | $ | 29,059 | $ | 29,155 | |||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (15) COMMITMENTS AND CONTINGENCIES |
Letters of Credit | |
As of December 31, 2014, outstanding letters of credit under the Credit Agreement totaled $3.2 million and primarily guaranteed workers' compensation and other insurance related obligations. As of December 31, 2014, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $1.3 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. | |
Based on currently available information and advice received from counsel, the Company believes that the disposition or ultimate resolution of any current 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. |
LEASES
LEASES | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
LEASES [ABSTRACT] | |||||||||||||||
LEASES | (16) LEASES | ||||||||||||||
The Company has various operating leases primarily for equipment, delivery centers and office space, which generally contain renewal options. Rent expense under operating leases was approximately $33.2 million, $33.3 million and $33.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||
In 2008, the Company sub-leased one of its delivery centers to a third party for the remaining term of the original lease. The sub-lease began on January 1, 2009 and rental income is recognized on a straight-line basis over the term of the sub-lease through 2021. Future minimum sub-lease rental receipts are shown in the table below. | |||||||||||||||
The future minimum rental payments and receipts required under non-cancelable operating leases as of December 31, 2014 are as follows (in thousands): | |||||||||||||||
Operating Leases | Sub-Lease Income | ||||||||||||||
2015 | $ | 43,411 | $ | -2,234 | |||||||||||
2016 | 34,248 | -2,234 | |||||||||||||
2017 | 26,505 | -2,234 | |||||||||||||
2018 | 18,582 | -2,470 | |||||||||||||
2019 | 9,665 | -2,470 | |||||||||||||
Thereafter | 3,826 | -2,675 | |||||||||||||
Total | $ | 136,237 | $ | -14,317 | |||||||||||
The Company records operating lease expense on a straight-line basis over the life of the lease as described in Note 1. The deferred lease liability as of December 31, 2014 and 2013 was $9.0 million and $9.6 million, respectively. | |||||||||||||||
Asset Retirement Obligations | |||||||||||||||
The Company records asset retirement obligations (“ARO”) for its delivery center leases. Capitalized costs related to ARO's are included in Other long-term assets in the accompanying Consolidated Balance Sheets while the ARO liability is included in Other long-term liabilities in the accompanying Consolidated Balance Sheets. Following is a summary of the amounts recorded (in thousands): | |||||||||||||||
Balance at December 31, 2013 | Additions and Modifications | Accretion | Settlements | Balance at December 31, 2014 | |||||||||||
ARO liability total | $ | 1,888 | $ | 39 | $ | 14 | $ | - | $ | 1,941 | |||||
Balance at December 31, 2012 | Additions and Modifications | Accretion | Settlements | Balance at December 31, 2013 | |||||||||||
ARO liability total | $ | 2,061 | $ | - | $ | 42 | $ | -215 | $ | 1,888 | |||||
Increases to ARO result from a new lease agreement or modifications on an ARO from a preexisting lease agreement. Modifications to ARO liabilities and accumulated accretion occur when lease agreements are amended or when assumptions change, such as the rate of inflation. Modifications are accounted for prospectively as changes in estimates. Settlements occur when leased premises are vacated and the actual cost of restoration is paid. Differences between the actual costs of restoration and the balance recorded as ARO liabilities are recognized as gains or losses in the accompanying Consolidated Statements of Comprehensive Income (Loss). |
MANDATORILY_REDEEMABLE_NONCONT
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Mandatorily Redeemable Noncontrolling Interest [Abstract] | |||||||
Mandatorily Redeemable Noncontrolling Interest | (17) 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 as follows (in thousands): | |||||||
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Mandatorily redeemable noncontrolling interest, January 1 | $ | 2,509 | $ | 1,067 | |||
Net income attributable to mandatorily redeemable noncontrolling interest | 613 | 482 | |||||
Working capital distributed to mandatorily redeemable noncontrolling interest | -1,244 | -717 | |||||
Change in redemption value | 936 | 1,677 | |||||
Mandatorily redeemable noncontrolling interest, December 31 | $ | 2,814 | $ | 2,509 | |||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | (18) 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) (in thousands): | ||||||||||||||
Foreign Currency Translation Adjustment | Derivative Valuation, Net of Tax | Other, Net of Tax | Totals | |||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2011 | $ | 3,156 | $ | -5,852 | $ | -2,778 | $ | -5,474 | ||||||
Other comprehensive income (loss) before reclassifications | 12,517 | 17,748 | -302 | 29,963 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | -2,337 | 829 | -1,508 | ||||||||||
Net current period other comprehensive income (loss) | 12,517 | 15,411 | 527 | 28,455 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 30, 2012 | $ | 15,673 | $ | 9,559 | $ | -2,251 | $ | 22,981 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2012 | $ | 15,673 | $ | 9,559 | $ | -2,251 | $ | 22,981 | ||||||
Other comprehensive income (loss) before reclassifications | -26,254 | -13,721 | 29 | -39,946 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | -4,190 | 569 | -3,621 | ||||||||||
Net current period other comprehensive income (loss) | -26,254 | -17,911 | 598 | -43,567 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 30, 2013 | $ | -10,581 | $ | -8,352 | $ | -1,653 | $ | -20,586 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2013 | $ | -10,581 | $ | -8,352 | $ | -1,653 | $ | -20,586 | ||||||
Other comprehensive income (loss) before reclassifications | -22,771 | -12,121 | 44 | -34,848 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | 2,128 | 1,032 | 3,160 | ||||||||||
Net current period other comprehensive income (loss) | -22,771 | -9,993 | 1,076 | -31,688 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 30, 2014 | $ | -33,352 | $ | -18,345 | $ | -577 | $ | -52,274 | ||||||
The following table presents the classification of the amount reclassified from accumulated other comprehensive income (loss) to the statement of comprehensive income (loss) (in thousands): | ||||||||||||||
For the Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | Statement of Comprehensive Income (Loss) Classification | |||||||||||
Derivative valuation | ||||||||||||||
Gain (loss) on foreign currency forward | ||||||||||||||
exchange contracts | $ | -2,429 | $ | 7,973 | $ | 4,638 | Revenue | |||||||
Loss on interest rate swaps | -1,060 | -1,047 | -741 | Interest expense | ||||||||||
Tax effect | 1,361 | -2,736 | -1,560 | Provision for income taxes | ||||||||||
$ | -2,128 | $ | 4,190 | $ | 2,337 | Net income (loss) | ||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -1,098 | $ | -605 | $ | -882 | Cost of services | |||||||
Tax effect | 66 | 36 | 53 | Provision for income taxes | ||||||||||
$ | -1,032 | $ | -569 | $ | -829 | Net income (loss) | ||||||||
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
NET INCOME PER SHARE [Abstract] | |||||||||
NET INCOME PER SHARE | (19) NET INCOME PER SHARE | ||||||||
The following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Shares used in basic earnings per share calculation | 49,297 | 51,338 | 54,738 | ||||||
Effect of dilutive securities: | |||||||||
Stock options | 413 | 417 | 378 | ||||||
Restricted stock units | 392 | 489 | 424 | ||||||
Performance-based restricted stock units | - | - | - | ||||||
Total effects of dilutive securities | 805 | 906 | 802 | ||||||
Shares used in dilutive earnings per share calculation | 50,102 | 52,244 | 55,540 | ||||||
For the years ended December 31, 2014, 2013 and 2012, 0.1 million, 0.1 million and 0.1 million, respectively, of options to purchase shares of common stock 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 years ended December 31, 2014, 2013 and 2012, restricted stock units of 0.2 million, 0.2 million, and 0.8 million, respectively, were outstanding but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the years ended December 31, 2014, 2013 and 2012, there were no performance-based restricted stock units outstanding but not included in the computation of diluted net income per share. For the years ended December 31, 2014, 2013 and 2012, restricted stock units that vest based on the Company achieving specified operating income performance targets of 0.1 million, 0.1 million and 0.1 million, respectively, were outstanding but not included in the computation of diluted net income per share because they were determined not to be contingently issuable. |
EMPLOYEE_COMPENSATION_PLANS
EMPLOYEE COMPENSATION PLANS | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
EMPLOYEE COMPENSATION PLANS [Abstract] | |||||||||||
EMPLOYEE COMPENSATION PLANS | (20) EMPLOYEE COMPENSATION PLANS | ||||||||||
Employee Benefit Plan | |||||||||||
The Company currently has one 401(k) profit-sharing plan that allows participation by U.S. employees who have completed six months of service, as defined, and are 21 years of age or older. Participants may defer up to 75% of their gross pay, up to a maximum limit determined by U.S. federal law. Participants are also eligible for a matching contribution. The Company may from time to time, at its discretion, make a “matching contribution” based on the amount and rate of the elective deferrals. The Company determines how much, if any, it will contribute for each dollar of elective deferrals. Participants vest in matching contributions over a three-year period. Company matching contributions to the 401(k) plan(s) totaled $4.8 million, $4.2 million and $3.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
Equity Compensation Plans | |||||||||||
In February 1999, the Company adopted the TeleTech Holdings, Inc. 1999 Stock Option and Incentive Plan (the “1999 Plan”). The purpose of the 1999 Plan was to enable the Company to continue to (a) attract and retain high quality directors, officers, employees, consultants and independent contractors; (b) motivate such persons to promote the long-term success of the Company and its subsidiaries; and (c) induce employees of companies that are acquired by TeleTech to accept employment with TeleTech following such an acquisition. An aggregate of 14.0 million shares of common stock were reserved for issuance under the 1999 Plan, which permitted the award of incentive stock options, non-qualified stock options, stock appreciation rights, shares of restricted common stock and restricted stock units (“RSUs”). The 1999 Plan also provided for annual equity-based compensation grants to members of the Company's Board of Directors. Options granted to employees generally vested over four to five years and had a contractual life of ten years. Options issued to Directors vested immediately and had a contractual life of ten years. In May 2009, the Company adopted a policy to issue RSUs to Directors, which generally vest over one year. | |||||||||||
In May 2010, the Company adopted the 2010 Equity Incentive Plan (the “2010 Plan”). Upon adoption of the 2010 Plan, all authorized and unissued equity in the 1999 Plan was cancelled. An aggregate of 4.0 million shares of common stock has been reserved for issuance under the 2010 Plan, which permits the award of incentive stock options, non-qualified stock options, stock appreciation rights, shares of restricted common stock and RSUs. As of December 31, 2014, a total of 4.0 million shares were authorized and 1.2 million shares were available for issuance under the 2010 Plan. | |||||||||||
For the years ended December 31, 2014, 2013, and 2012, the Company recorded total equity-based compensation expense under all equity-based arrangements (stock options and RSUs) of $11.3 million, $13.3 million and $13.4 million, respectively. For 2014, 2013 and 2012, of the total compensation expense, $2.3 million, $2.2 million and $1.9 million was recognized in Cost of services and $9.0 million, $11.1 million and $11.5 million, was recognized in Selling, general and administrative in the Consolidated Statements of Comprehensive Income (Loss), respectively. For the years ended December 31, 2014, 2013, and 2012, the Company recognized a tax benefit under all equity-based arrangements (stock options and RSUs) of $6.3 million, $5.8 million and $5.7 million, respectively. | |||||||||||
Restricted Stock Units | |||||||||||
2012, 2013 and 2014 RSU Awards: The Company granted RSUs in 2012, 2013 and 2014 to new and existing employees that vest over four or five years. The Company also granted RSUs in 2012, 2013 and 2014 to members of the Board of Directors that vest over one year. | |||||||||||
During 2011, the Company granted 100,000 performance-based RSUs to a key employee that vest based on the Company achieving specified revenue and operating income performance in 2014. The Company determined the performance targets were not met; and therefore these RSU's did not vest and were forfeited. During 2014, the Company granted to a different key employee RSU's based on revenue and operating income performance for a reporting segment of the Company; these performance conditions were partially met and therefore 8,394 RSU's were issued. | |||||||||||
Summary of RSUs: Settlement of the RSUs shall be made in shares of the Company's common stock by delivery of one share of common stock for each RSU then being settled. The Company calculates the fair value for RSUs based on the closing price of the Company's stock on the date of grant and records compensation expense over the vesting period using a straight-line method. The Company factors an estimated forfeiture rate in calculating compensation expense on RSUs and adjusts for actual forfeitures upon the vesting of each tranche of RSUs. | |||||||||||
The weighted average grant-date fair value of RSUs, including performance-based RSUs, granted during the years ended December 31, 2014, 2013, and 2012 was $26.92, $21.66, and $15.91, respectively. The total intrinsic value and fair value of RSUs vested during the years ended December 31, 2014, 2013, and 2012 was $12.4 million, $12.3 million, and $15.5 million, respectively. | |||||||||||
A summary of the status of the Company's non-vested RSUs and performance-based RSUs and activity for the year ended December 31, 2014 is as follows: | |||||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Unvested as of December 31, 2013 | 1,973,575 | $ | 20.39 | ||||||||
Granted | 666,656 | $ | 26.92 | ||||||||
Vested | -626,070 | $ | 19.85 | ||||||||
Cancellations/expirations | -191,083 | $ | 19.62 | ||||||||
Unvested as of December 31, 2014 | 1,823,078 | $ | 23.02 | ||||||||
All RSU's vested during the year ended December 31, 2014 were issued out of treasury stock. As of December 31, 2014, there was approximately $27.6 million of total unrecognized compensation expense and approximately $42.4 million in total intrinsic value related to non-vested RSU grants. The unrecognized compensation expense will be recognized over the remaining weighted-average vesting period of 1.5 years using the straight-line method. | |||||||||||
Stock Options | |||||||||||
During the year ended December 31, 2011, the Company granted 150,000 stock options to a key employee. The stock option award is made up of four separate tranches. Each tranche will vest based on certain stock price targets (market conditions). The grant date fair values of each tranche were calculated using a Monte Carlo simulation model in addition to a time-based binomial lattice model. The following table provides the assumptions used in the time-based binomial lattice model for each tranche granted: | |||||||||||
Year Ended December 31, | |||||||||||
2011 | |||||||||||
Risk-free interest rate | 2.10% | ||||||||||
Expected life in years | 1.3 - 2.7 | ||||||||||
Expected volatility | 54.40% | ||||||||||
Dividend yield | 0.00% | ||||||||||
Weighted-average volatility | 54.40% | ||||||||||
The Company estimated the expected term based on historical averages of option exercises and expirations. The calculation of expected volatility is based on the historical volatility of the Company's common stock over the expected term. The risk-free interest rate is based on the yield on the grant measurement date of a traded zero-coupon U.S. Treasury bond, as reported by the U.S. Federal Reserve, with a term equal to the expected term of the stock option granted. The Company factored an estimated forfeiture rate and adjusted for actual forfeitures upon the vesting of each tranche of options. | |||||||||||
A summary of stock option activity for the year ended December 31, 2014 is as follows: | |||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contract Term in Years | Aggregate Intrinsic Value (000's) | ||||||||
Outstanding as of December 31, 2013 | 1,220,474 | $ | 13.43 | ||||||||
Exercises | -53,100 | $ | 9.6 | ||||||||
Post-vest cancellations/expirations | -15,375 | $ | 8.9 | ||||||||
Outstanding as of December 31, 2014 | 1,151,999 | $ | 13.67 | 1.9 | $ | 11,540 | |||||
Vested and exercisable as of | |||||||||||
31-Dec-14 | 1,001,999 | $ | 13.12 | 1.2 | $ | 10,584 | |||||
There were no stock options granted during 2012, 2013 or 2014. The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $0.8 million, $1.0 million and $0.6 million, respectively. The total fair value of shares vested during the years ended December 31, 2014, 2013 and 2012 was zero, respectively. | |||||||||||
As of December 31, 2014, there was approximately $20 thousand of unrecognized compensation expense related to non-vested stock options. The unrecognized compensation expense will be recognized over the remaining weighted-average derived service period of 2.1 years using the straight-line method. | |||||||||||
Cash received from option exercises under the Plans for the years ended December 31, 2014, 2013 and 2012 was $0.4 million, $0.9 million and $1.4 million, respectively. The recognized tax benefit from option exercises for the years ended December 31, 2014, 2013 and 2012 was $0.3 million, $0.4 million and $0.2 million, respectively. Shares issued for options exercised during the year ended December 31, 2014 were issued out of treasury stock. |
STOCK_REPURCHASE_PROGRAM
STOCK REPURCHASE PROGRAM | 12 Months Ended |
Dec. 31, 2014 | |
STOCK REPURCHASE PROGRAM [ABSTRACT] | |
STOCK REPURCHASE PROGRAM | (21) STOCK REPURCHASE PROGRAM |
Stock Repurchase Program | |
The Company has a stock repurchase program, which was initially authorized by the Company's Board of Directors in November 2001. As of December 31, 2014, the cumulative authorized repurchase allowance was $637.3 million. During the year ended December 31, 2014, the Company purchased 2.4 million shares for $57.1 million. Since inception of the program, the Company has purchased 42.1 million shares for $625.5 million. As of December 31, 2014, the remaining allowance under the program was approximately $11.8 million. For the period from January 1, 2015 through February 28, 2015, the Company purchased 212,100 additional shares at a cost of $4.7 million. The stock repurchase program does not have an expiration date. Effective February 28, 2015, the Board of Directors authorized an additional $25 million for stock repurchases. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
RELATED PARTY TRANSACTIONS [ABSTRACT] | |
RELATED PARTY TRANSACTIONS | (22) RELATED PARTY TRANSACTIONS |
The Company has entered into an agreement under which Avion, LLC (“Avion”) provides certain aviation flight services as requested by the Company. Such services include the use of an aircraft and flight crew. Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company, has a direct 100% beneficial ownership interest in Avion. During 2014, 2013 and 2012, the Company paid $1.0 million, $0.6 million and $0.9 million, respectively, to Avion for services provided to the Company. There was $30 thousand outstanding to Avion as of December 31, 2014. | |
During 2014, the Company entered into a vendor contract with Conversent to provide learning management and web and telephony based global helpline solutions. The majority owner of Conversent is a company which is owned and controlled by Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company. During 2014, the Company paid $20 thousand to Conversent and is expecting to spend another $100 thousand during 2015 and 2016. | |
The Audit Committee of the Board of Directors reviews the related party transactions quarterly and has determined that the fees charged by these related parties are at fair market value. |
OTHER_FINANCIAL_INFORMATION
OTHER FINANCIAL INFORMATION | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
OTHER FINANCIAL INFORMATION [ABSTRACT] | |||||||
OTHER FINANCIAL INFORMATION | (23) OTHER FINANCIAL INFORMATION | ||||||
Self-insurance liabilities of the Company which are included in Accrued employee compensation and benefits and Other accrued expenses in the accompanying Consolidated Balance Sheets were as follows (in thousands): | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Worker's compensation | $ | 2,007 | $ | 1,649 | |||
Employee health and dental insurance | 4,769 | 3,633 | |||||
Other insurance | 1,068 | 631 | |||||
Total self-insurance liabilities | $ | 7,844 | $ | 5,913 | |||
DECONSOLIDATION_OF_A_SUBSIDIAR
DECONSOLIDATION OF A SUBSIDIARY | 12 Months Ended |
Dec. 31, 2014 | |
DECONSOLIDATION OF SUBSIDIARY [ABSTRACT] | |
DECONSOLIDATION OF SUBSIDIARY | (24) DECONSOLIDATION OF A 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 in Loss on deconsolidation of subsidiary in the Consolidated Statements of Comprehensive Income (Loss). The $3.7 million loss included $1.3 million of goodwill allocated to PRG Kuwait immediately prior to deconsolidation based on PRG Kuwait's relative fair value of the CSS segment. Effective April 2014, the Company entered into a stock and membership interest purchase agreement with PRG Kuwait's other shareholder to sell its 48% interest in the Company for $175 thousand. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS [ABSTRACT] | |
SUBSEQUENT EVENTS | (25) SUBSEQUENT EVENTS |
On February 24, 2015, our Board of Directors adopted a dividend policy, with the intent to distribute a periodic cash dividend to stockholders of our common stock, after consideration of, among other things, TeleTech's performance, cash flows, capital needs and liquidity factors. Given our cash flow generation and balance sheet strength, we believe cash dividends and early returns to shareholders through share repurchases, in balance with our investments in innovation and strategic acquisitions, align shareholder interests with the needs of the Company. The initial dividend of $0.18 per common share will be paid on March 16, 2015 to shareholders of record as of March 6, 2015. |
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) [ABSTRACT] | |||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | (26) QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
The following tables present certain quarterly financial data for the year ended December 31, 2014 (in thousands except per share amounts). | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenue | $ | 302,221 | $ | 295,490 | $ | 305,900 | $ | 338,170 | |||||||
Cost of services | 213,787 | 212,315 | 220,244 | 240,146 | |||||||||||
Selling, general and administrative | 50,367 | 47,802 | 49,847 | 50,537 | |||||||||||
Depreciation and amortization | 13,170 | 14,089 | 13,893 | 15,386 | |||||||||||
Restructuring charges, net | 540 | 617 | 593 | 1,600 | |||||||||||
Impairment losses | - | - | - | 373 | |||||||||||
Income from operations | 24,357 | 20,667 | 21,323 | 30,128 | |||||||||||
Other income (expense) | -178 | 2,880 | -856 | 2,138 | |||||||||||
Provision for income taxes | -2,876 | -5,417 | -5,778 | -8,971 | |||||||||||
Non-controlling interest | -1,085 | -1,268 | -1,442 | -1,329 | |||||||||||
Net income attributable to TeleTech stockholders | $ | 20,218 | $ | 16,862 | $ | 13,247 | $ | 21,966 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 50,045 | 49,351 | 49,093 | 48,714 | |||||||||||
Diluted | 50,973 | 50,111 | 49,940 | 49,514 | |||||||||||
Net income per share attributable to TeleTech stockholders | |||||||||||||||
Basic | $ | 0.4 | $ | 0.34 | $ | 0.27 | $ | 0.45 | |||||||
Diluted | $ | 0.4 | $ | 0.34 | $ | 0.27 | $ | 0.44 | |||||||
Included in Other income (expense) in the second and the fourth quarters are a $4.0 million benefit and a net $2.7 million benefit related to fair value adjustments to the contingent consideration related to revised estimates of the performance against the targets for four of the Company's acquisitions. | |||||||||||||||
Included in the Provision for Income Taxes is a $0.2 million benefit in the first quarter, a $0.2 million benefit in the second quarter, a $0.2 million benefit in the third quarter and a $0.6 million benefit in the fourth quarter related to restructuring charges. Also included are a $0.6 million of benefit in the first quarter and $0.2 million of expense in the third quarter related to changes in valuation allowances. Additionally, in the second quarter there was $1.6 million of expense, $0.7 million of expense in the third quarter and $1.6 million of expense in the fourth quarter related to changes in the value of future contingent payments. Finally, there was $1.2 million of benefit in the first quarter related to the closing of a statute of limitations and $1.3 million of expense in the third quarter related to the Netherlands audit. | |||||||||||||||
The following tables present certain quarterly financial data for the year ended December 31, 2013 (in thousands except per share amounts). | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenue | $ | 288,383 | $ | 289,692 | $ | 296,995 | $ | 318,087 | |||||||
Cost of services | 208,232 | 208,809 | 208,648 | 220,942 | |||||||||||
Selling, general and administrative | 45,747 | 46,168 | 50,165 | 51,343 | |||||||||||
Depreciation and amortization | 10,555 | 11,263 | 11,463 | 12,783 | |||||||||||
Restructuring charges, net | 851 | 2,572 | 758 | 254 | |||||||||||
Impairment losses | - | 1,205 | - | - | |||||||||||
Income from operations | 22,998 | 19,675 | 25,961 | 32,765 | |||||||||||
Other income (expense) | -2,004 | -3,099 | -434 | -3,793 | |||||||||||
(Provision for) benefit from income taxes | -2,391 | -3,854 | -6,358 | -7,995 | |||||||||||
Non-controlling interest | -642 | -407 | -1,526 | -1,508 | |||||||||||
Net income attributable to TeleTech stockholders | $ | 17,961 | $ | 12,315 | $ | 17,643 | $ | 19,469 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 52,347 | 51,861 | 50,732 | 50,439 | |||||||||||
Diluted | 53,217 | 52,628 | 51,678 | 51,465 | |||||||||||
Net income per share attributable to TeleTech stockholders | |||||||||||||||
Basic | $ | 0.34 | $ | 0.24 | $ | 0.35 | $ | 0.39 | |||||||
Diluted | $ | 0.34 | $ | 0.23 | $ | 0.34 | $ | 0.38 | |||||||
Included in Other income (expense) in the second quarter is a $3.7 million charge related to the deconsolidation of our subsidiary in Kuwait, and in the fourth quarter is a $1.9 million charge related to a fair value adjustment to the contingent consideration for three of the Company's acquisitions. | |||||||||||||||
Included in the (Provision) benefit for Income Taxes is a $0.2 million benefit in the first quarter, a $1.2 million benefit in the second quarter, a $0.3 million benefit in the third quarter and a $0.1 million benefit in the fourth quarter related to restructuring charges. Also included are a $0.9 million of benefit in the first quarter, $0.3 million of expense in the second quarter, $0.4 million of expense in the third quarter and a $2.0 million of expense in the fourth quarter related to changes in valuation allowances. Additionally, there was a $0.6 million benefit in the first quarter, $0.5 million of benefit in the second quarter, $0.3 million of expense in the third quarter, and a $0.7 million of benefit in the fourth quarter related to return to provision adjustments. |
OVERVIEW_AND_SUMMARY_OF_SIGNIF1
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES) | 12 Months Ended | |
Dec. 31, 2014 | ||
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Overview | Overview | |
TeleTech Holdings, Inc. and its subsidiaries (“TeleTech” or the “Company”) is a customer engagement management services provider, delivering integrated consulting, technology, growth and customer care solutions on a global scale. Our suite of product and service capabilities allows us to design and deliver enhanced, value-driven customer experiences across numerous communication channels. TeleTech's 46,000 employees serve clients in the automotive, communication, financial services, government, healthcare, logistics, media and entertainment, retail, technology, transportation and travel industries via operations in the U.S., Australia, Belgium, Brazil, Bulgaria, Canada, Costa Rica, Germany, Ghana, Ireland, Israel, Lebanon, Macedonia, Mexico, New Zealand, the Philippines, Poland, Singapore, South Africa, Spain, Thailand, Turkey, the United Arab Emirates, and the United Kingdom. | ||
Basis Of Presentation | Basis of Presentation | |
The Consolidated Financial Statements are comprised of the accounts of TeleTech, its wholly owned subsidiaries, its 55% 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 Note 2). All intercompany balances and transactions have been eliminated in consolidation. | ||
Certain amounts for 2013 have been reclassified in the Consolidated Financial Statements to conform to the 2014 presentation. | ||
Use of Estimates | Use of Estimates | |
The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. (“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 the valuation allowance for deferred tax assets, self-insurance reserves, litigation reserves, restructuring reserves, allowance for doubtful accounts, contingent consideration, and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. In the year ended December 31, 2012, the Company recorded a change in estimate which resulted in a decrease of $4.6 million to employee related expenses in connection with an authoritative ruling in Spain related to the legally required cost of living adjustment for employees' salaries for the year 2010, 2011 and 2012. | ||
Concentration of Credit Risk | Concentration of Credit Risk | |
The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across six well-capitalized, investment-grade financial institutions. | ||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |
Fair values of cash equivalents and accounts receivable and payable approximate the carrying amounts because of their short-term nature. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
The Company considers all cash and highly liquid short-term investments with an original maturity of 90 days or less to be cash equivalents. The Company manages a centralized global treasury function in the United States with a focus on concentrating and safeguarding its global cash and cash equivalents. While the majority of the Company's cash is held outside the U.S., the Company prefers to hold U.S. Dollars in addition to the local currencies of the foreign subsidiaries. The Company believes that it has effectively mitigated and managed its risk relating to its global cash through its cash management practices, banking partners, and utilization of diversified, high quality investments. However, the Company can provide no assurances that it will not sustain losses. | ||
Accounts Receivable | Accounts Receivable | |
An allowance for doubtful accounts is determined based on the aging of the Company's accounts receivable, historical experience, client financial condition, and management judgment. The Company writes off accounts receivable against the allowance when the Company determines a balance is uncollectible. | ||
Derivatives | Derivatives | |
The Company enters into foreign exchange forward and option contracts to reduce its exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. The Company also enters into interest rate derivatives which 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. The Company formally documents at the inception of the hedge all relationships between hedging instruments and hedged items as well as its risk management objective and strategy for undertaking various hedging activities. | ||
All derivative financial instruments are reported at fair value and recorded in Other assets and Other liabilities in the accompanying Consolidated Balance Sheets at fair value. Changes in fair value of derivative instruments designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss), a component of Stockholders' Equity, to the extent they are deemed effective. Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Based on the criteria established by current accounting standards, the Company's cash flow hedge contracts are deemed to be highly effective. Any realized gains or losses resulting from the foreign currency cash flow hedges are recognized together with the hedged transaction within Revenue. Any realized gains or losses from the interest rate swaps are recognized in interest income (expense). Gains and losses from the settlements of the Company's net investment hedges remain in Accumulated other comprehensive income (loss) until partial or complete liquidation of the applicable net investment. | ||
The Company also enters into fair value derivative contracts that hedge against foreign currency exchange gains and losses primarily associated with short-term payables and receivables. Changes in the fair value of derivative instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). | ||
In addition to hedging activities, the Company has embedded derivatives in certain foreign lease contracts. The Company bifurcates and calculates the fair values of the embedded derivative feature from the host contract with any changes in fair value of the embedded derivatives recognized in Cost of services. | ||
Property, Plant and Equipment | Property, Plant and Equipment | |
Property, plant and equipment are stated at historical cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewals are expensed as incurred. | ||
Depreciation and amortization are computed on the straight-line method based on the following estimated useful lives: | ||
Building | 25 years | |
Computer equipment and software | 3 to 7 years | |
Telephone equipment | 4 to 7 years | |
Furniture and fixtures | 5 years | |
Leasehold improvements | Lesser of economic useful life (typically 10 years) | |
or original lease term | ||
Other | 3 to 7 years | |
The Company evaluates the carrying value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of forecasted future cash flows. | ||
Software Development Costs | Software Development Costs | |
The Company capitalizes costs incurred to acquire or develop software for internal use. Capitalized software development costs are amortized using the straight-line method over the estimated useful life equal to the lesser of the license term or 4 years. The amortization expense is recorded in Depreciation and amortization in the accompanying Consolidated Statements of Comprehensive Income (Loss). | ||
Goodwill | Goodwill | |
The Company evaluates goodwill for possible impairment at least annually on December 1, and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company uses a three step process to assess the realizability of goodwill. The first step, Step 0, is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, the Company analyzes changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a particular reporting unit. A qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years. If the qualitative assessment indicates a stable or improved fair value, no further testing is required. | ||
If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit's fair value has historically been closer to its carrying value, the Company will proceed to Step 1 testing where the Company calculates the fair value of a reporting unit. If Step 1 indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will proceed to Step 2 where the fair value of the reporting unit will be allocated to assets and liabilities as they would in a business combination. Impairment occurs when the carrying amount of goodwill exceeds its estimated fair value calculated in Step 2. | ||
Contract Acquisition Costs | Contract Acquisition Costs | |
Amounts paid to or on behalf of clients to obtain long-term contracts are capitalized and amortized in proportion to the initial expected future revenue from the contract, which in most cases results in straight-line amortization over the life of the contract. These costs are recorded as a reduction to Revenue. The Company evaluates the recoverability of these costs based on the individual underlying client contracts' forecasted future cash flows. | ||
Other Intangible Assets | Other Intangible Assets | |
The Company has other intangible assets that include customer relationships (definite-lived) and trade names (indefinite-lived and definite-lived) and non-compete agreements (definite-lived). Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from four to 11 years. The Company evaluates the carrying value of its definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of its asset group are estimated to be less than its carrying value. | ||
The Company evaluates indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Similar to goodwill, the Company may first use a qualitative analysis to assess the realizability of its indefinite-lived intangible assets. The qualitative analysis will include a review of changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of an indefinite-lived intangible asset. If a quantitative analysis is completed, an indefinite-lived intangible asset (a trade name) is evaluated for possible impairment by comparing the fair value of the asset with its carrying value. Fair value is estimated as the discounted value of future revenues arising from a trade name using a royalty rate that a market participant would pay for use of that trade name. An impairment charge is recorded if the trade name's carrying value exceeds its estimated fair value. | ||
Self Insurance Liabilities | Self Insurance Liabilities | |
The Company self-insures for certain levels of workers' compensation, employee health, property, errors and omissions, cyber risks, and general liability insurance. The Company records estimated liabilities for these insurance lines based upon analyses of historical claims experience. The most significant assumption the Company makes in estimating these liabilities is that future claims experience will emerge in a similar pattern with historical claims experience. The liabilities related to workers' compensation and employee health insurance are included in Accrued employee compensation and benefits in the accompanying Consolidated Balance Sheets. The liability for other general liability insurance is included in Other accrued expenses in the accompanying Consolidated Balance Sheets. | ||
Restructuring Liabilities | Restructuring Liabilities | |
The Company routinely assesses the profitability and utilization of its delivery centers and existing markets. In some cases, the Company has chosen to close under-performing delivery centers and complete reductions in workforce to enhance future profitability. Severance payments that occur from reductions in workforce are in accordance with the Company's postemployment plans and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and reasonably estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, rather than upon commitment to a plan. | ||
Grant Advances | Grant Advances | |
The Company receives grants from various government agencies as an incentive to locate delivery centers in their jurisdictions. The Company's policy is to account for grant monies received in advance as a liability and recognize to income as either a reduction to Cost of services or Depreciation expense over the term of the grant, when it is reasonably assured that the conditions of the grant have been or will be met. | ||
Income Taxes | Income Taxes | |
Accounting for income taxes 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 or tax returns. 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 enacted tax rates in effect for the year in which the differences are expected to reverse. Gross deferred tax assets may then be reduced by a valuation allowance for amounts that do not satisfy the realization criteria established by current accounting standards. | ||
The Company accounts for uncertain tax positions using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. The Company evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors including changes in facts or circumstances, changes in applicable tax law, and settlement of issues under audit. The Company recognizes interest and penalties related to uncertain tax positions as a part of the Provision for income taxes in the accompanying Consolidated Statements of Comprehensive Income (Loss). | ||
The Company provides for U.S. income tax expense on the earnings of foreign subsidiaries unless the subsidiaries' earnings are considered permanently reinvested outside the U.S. | ||
Equity-Based Compensation Expense | Equity-Based Compensation Expense | |
Equity-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, which is typically the vesting term of the share-based payment award. The Company estimates the forfeiture rate annually based on its historical experience of forfeited awards. | ||
Foreign Currency Translation | Foreign Currency Translation | |
The assets and liabilities of the Company's foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated at the exchange rates in effect on the last day of the period and income and expenses are translated using the monthly average exchange rates in effect for the period in which the items occur. Foreign currency translation gains and losses are recorded in Accumulated other comprehensive income (loss) within Stockholders' Equity. Foreign currency transaction gains and losses are included in Other income (expense), net in the accompanying Consolidated Statements of Comprehensive Income (Loss). | ||
Revenue Recognition | Revenue Recognition | |
The Company recognizes revenue when evidence of an arrangement exists, the delivery of service has occurred, the fee is fixed or determinable and collection is reasonably assured. The BPO inbound and outbound service fees are based on either a per minute, per hour, per transaction or per call basis. Certain client programs provide for adjustments to monthly billings based upon whether the Company achieves, exceeds or fails certain performance criteria. Adjustments to monthly billings consist of contractual bonuses/penalties, holdbacks and other performance based contingencies. Revenue recognition is limited to the amount that is not contingent upon delivery of future services or meeting other specified performance conditions. | ||
Revenue also consists of services for agent training, program launch, professional consulting, fully-hosted or managed technology and learning innovation services. These service offerings may contain multiple element arrangements whereby the Company determines if those service offerings represent separate units of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value and delivery or performance of the undelivered items is considered probable and substantially within our control. If those deliverables are determined to be separate units of accounting, revenue is recognized as services are provided. If those deliverables are not determined to be separate units of accounting, revenue for the delivered services are bundled into one unit of accounting and recognized over the life of the arrangement or at the time all services and deliverables have been delivered and satisfied. The Company allocates revenue to each of the deliverables based on a selling price hierarchy of vendor specific objective evidence (“VSOE”), third-party evidence, and then estimated selling price. VSOE is based on the price charged when the deliverable is sold separately. Third-party evidence is based on largely interchangeable competitor services in standalone sales to similarly situated customers. Estimated selling price is based on the Company's best estimate of what the selling prices of deliverables would be if they were sold regularly on a standalone basis. Estimated selling price is established considering multiple factors including, but not limited to, pricing practices in different geographies, service offerings, and customer classifications. Once the Company allocates revenue to each deliverable, the Company recognizes revenue when all revenue recognition criteria are met. | ||
Deferred Revenue and Costs | Deferred Revenue and Costs | |
The Company records amounts billed and received, but not earned, as deferred revenue. These amounts are recorded in Deferred revenue or as a component of Other long-term liabilities in the accompanying Consolidated Balance Sheets based on the period over which the Company expects to render services. | ||
We defer revenue for initial training that occurs upon commencement of a new contract if that training is billed separately because the training is not considered to provide standalone value from other services. Accordingly, the corresponding training costs, consisting primarily of labor and related expenses, are also deferred. In these circumstances, both the training revenue and costs are amortized straight-line over the life of the contract as a component of Revenue and Cost of services, respectively. In situations where these initial training costs are not billed separately, but rather included in the hourly service rates paid by the client over the life of the contract, no deferral is necessary as the revenue is being recognized over the life of the contract and the associated training costs are expensed as incurred. | ||
Rent Expense | Rent Expense | |
The Company has negotiated certain rent holidays, landlord/tenant incentives and escalations in the base price of rent payments over the initial term of its operating leases. The initial term includes the “build-out” period of leases, where no rent payments are typically due. The Company recognizes rent holidays and rent escalations on a straight-line basis to rent expense over the lease term. The landlord/tenant incentives are recorded as an increase to deferred rent liabilities and amortized on a straight line basis to rent expense over the initial lease term. | ||
Asset Retirement Obligations | Asset Retirement Obligations | |
Asset retirement obligations relate to legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets. | ||
The Company records all asset retirement obligations at estimated fair value. The Company's asset retirement obligations primarily relate to clauses in its delivery center operating leases which require the Company to return the leased premises to its original condition. The associated asset retirement obligations are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability, reported within Other long-term liabilities, is accreted through charges to operating expenses. If the asset retirement obligation is settled for an amount other than the carrying amount of the liability, the Company recognizes a gain or loss on settlement. | ||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 provides new guidance related to the definition of a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This new guidance is effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. Beginning in 2015, the Company will apply the new guidance, as applicable, to future disposals of components or classifications as held for sale, but the Company does not expect it to have a significant impact on its financial position, results of operation or related disclosures. | ||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 provides new guidance related to how an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 specifies new accounting for costs associated with obtaining or fulfilling contracts with customers and expands the required disclosures related to revenue and cash flows from contracts with customers. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption, with early application not permitted. The Company is currently determining its implementation approach and assessing the impact on the consolidated financial statements. | ||
In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and early adoption is permitted. Beginning in 2016, the Company will apply the new guidance as applicable and is currently assessing the impact on the consolidated financial statements. | ||
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern”, as a new Sub-topic, Accounting Standards Codification Sub-topic 205.40. The new going concern standard codifies in GAAP management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This ASU is effective for interim and annual periods beginning on or after December 15, 2016 and early adoption is permitted. The Company is evaluating when it will adopt the standard but does not expect it to have a significant impact on its financial position, results of operation or related disclosures. |
ACQUISITIONS_TABLES
ACQUISITIONS (TABLES) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Sofica [Member] | ||||
Business Acquisition [Line Items] | ||||
Schedule of Assets Acquired and Liabilities Assumed | Acquisition Date Fair Value | |||
Cash | $ | 857 | ||
Accounts receivable, net | 3,175 | |||
Other assets | 378 | |||
Property, plant and equipment | 653 | |||
Customer relationships | 4,915 | |||
Goodwill | 6,358 | |||
16,336 | ||||
Accounts payable | 296 | |||
Accrued employee compensation and benefits | 697 | |||
Accrued expenses | 664 | |||
Other | 507 | |||
2,164 | ||||
Total purchase price | $ | 14,172 | ||
rogenSi [Member] | ||||
Business Acquisition [Line Items] | ||||
Schedule of Assets Acquired and Liabilities Assumed | Preliminary Estimate of Acquisition Date Fair Value | |||
Cash | $ | 2,670 | ||
Accounts receivable, net | 6,417 | |||
Other assets | 3,328 | |||
Property, plant and equipment | 578 | |||
Customer relationships | 9,314 | |||
Goodwill | 20,860 | |||
43,167 | ||||
Accounts payable | 708 | |||
Accrued employee compensation and benefits | 2,203 | |||
Accrued expenses | 1,146 | |||
Other | 4,845 | |||
8,902 | ||||
Total purchase price | $ | 34,265 | ||
SEGMENT_INFORMATION_TABLES
SEGMENT INFORMATION (TABLES) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
SEGMENT INFORMATION [ABSTRACT] | ||||||||||||||||
Schedule of Segment Selected Financial Data | Year Ended December 31, 2014 | |||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income from Operations | ||||||||||||
Customer Management Services | $ | 923,497 | $ | - | $ | 923,497 | $ | 40,577 | $ | 76,792 | ||||||
Customer Growth Services | 115,434 | - | 115,434 | 6,048 | 7,255 | |||||||||||
Customer Technology Services | 139,218 | -36 | 139,182 | 7,489 | 4,519 | |||||||||||
Customer Strategy Services | 63,668 | - | 63,668 | 2,424 | 7,909 | |||||||||||
Total | $ | 1,241,817 | $ | -36 | $ | 1,241,781 | $ | 56,538 | $ | 96,475 | ||||||
Year Ended December 31, 2013 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income from Operations | ||||||||||||
Customer Management Services | $ | 892,145 | $ | -1,262 | $ | 890,883 | $ | 33,884 | $ | 75,689 | ||||||
Customer Growth Services | 100,996 | - | 100,996 | 4,127 | 3,024 | |||||||||||
Customer Technology Services | 152,769 | -284 | 152,485 | 6,201 | 19,965 | |||||||||||
Customer Strategy Services | 49,643 | -850 | 48,793 | 1,852 | 2,721 | |||||||||||
Total | $ | 1,195,553 | $ | -2,396 | $ | 1,193,157 | $ | 46,064 | $ | 101,399 | ||||||
Year Ended December 31, 2012 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income from Operations | ||||||||||||
Customer Management Services | $ | 923,774 | $ | - | $ | 923,774 | $ | 32,714 | $ | 60,271 | ||||||
Customer Growth Services | 100,846 | -74 | 100,772 | 3,904 | 2,258 | |||||||||||
Customer Technology Services | 101,430 | -4,582 | 96,848 | 3,026 | 15,714 | |||||||||||
Customer Strategy Services | 43,358 | -1,771 | 41,587 | 1,522 | 302 | |||||||||||
Total | $ | 1,169,408 | $ | -6,427 | $ | 1,162,981 | $ | 41,166 | $ | 78,545 | ||||||
As of and for the Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Capital Expenditures | ||||||||||||||||
Customer Management Services | $ | 49,630 | $ | 40,007 | $ | 32,736 | ||||||||||
Customer Growth Services | 3,195 | 3,421 | 3,983 | |||||||||||||
Customer Technology Services | 14,423 | 6,450 | 3,390 | |||||||||||||
Customer Strategy Services | 393 | 486 | 544 | |||||||||||||
Total | $ | 67,641 | $ | 50,364 | $ | 40,653 | ||||||||||
Total Assets | ||||||||||||||||
Customer Management Services | $ | 514,957 | $ | 554,015 | $ | 588,627 | ||||||||||
Customer Growth Services | 88,394 | 86,416 | 54,164 | |||||||||||||
Customer Technology Services | 159,441 | 157,040 | 152,500 | |||||||||||||
Customer Strategy Services | 89,683 | 44,871 | 56,339 | |||||||||||||
Total | $ | 852,475 | $ | 842,342 | $ | 851,630 | ||||||||||
Goodwill | ||||||||||||||||
Customer Management Services | $ | 25,871 | $ | 19,819 | $ | 20,288 | ||||||||||
Customer Growth Services | 30,395 | 30,128 | 24,439 | |||||||||||||
Customer Technology Services | 42,709 | 42,709 | 42,153 | |||||||||||||
Customer Strategy Services | 29,730 | 10,087 | 11,361 | |||||||||||||
Total | $ | 128,705 | $ | 102,743 | $ | 98,241 | ||||||||||
Schedule of Revenue by Geographic Area | As of and for the | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Revenue | ||||||||||||||||
United States | $ | 603,297 | $ | 556,239 | $ | 474,236 | ||||||||||
Philippines | 348,339 | 354,942 | 334,541 | |||||||||||||
Latin America | 172,270 | 176,906 | 188,071 | |||||||||||||
Europe / Middle East / Africa | 83,944 | 72,644 | 111,304 | |||||||||||||
Asia Pacific | 28,294 | 18,489 | 17,652 | |||||||||||||
Canada | 5,637 | 13,937 | 37,177 | |||||||||||||
Total | $ | 1,241,781 | $ | 1,193,157 | $ | 1,162,981 | ||||||||||
Property, plant and equipment, gross | ||||||||||||||||
United States | $ | 382,508 | $ | 337,311 | $ | 311,904 | ||||||||||
Philippines | 119,482 | 101,123 | 107,676 | |||||||||||||
Latin America | 67,193 | 75,618 | 70,915 | |||||||||||||
Europe / Middle East / Africa | 13,367 | 12,311 | 8,767 | |||||||||||||
Asia Pacific | 26,502 | 28,195 | 29,884 | |||||||||||||
Canada | 19,299 | 20,941 | 25,908 | |||||||||||||
Total | $ | 628,351 | $ | 575,499 | $ | 555,054 | ||||||||||
Other long-term assets | ||||||||||||||||
United States | $ | 27,728 | $ | 34,891 | $ | 35,978 | ||||||||||
Philippines | 5,202 | 4,408 | 4,124 | |||||||||||||
Latin America | 1,456 | 5,299 | 4,696 | |||||||||||||
Europe / Middle East / Africa | 692 | 311 | 887 | |||||||||||||
Asia Pacific | 1,309 | 779 | 1,004 | |||||||||||||
Canada | 271 | 38 | 95 | |||||||||||||
Total | $ | 36,658 | $ | 45,726 | $ | 46,784 | ||||||||||
ACCOUNTS_RECEIVABLE_AND_SIGNIF1
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS (TABLES) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |||||||||||||
Schedule of Accounts Receivable | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Accounts receivable | $ | 279,857 | $ | 239,914 | |||||||||
Less: Allowance for doubtful accounts | -3,425 | -3,815 | |||||||||||
Accounts receivable, net | $ | 276,432 | $ | 236,099 | |||||||||
Schedule of Change in Allowance for Doubtful Accounts | December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance, beginning of year | $ | 3,815 | $ | 3,635 | $ | 3,559 | |||||||
Provision for doubtful accounts | 633 | 695 | 368 | ||||||||||
Uncollectible receivables written-off | -681 | -315 | -209 | ||||||||||
Effect of foreign currency | -342 | -200 | -83 | ||||||||||
Balance, end of year | $ | 3,425 | $ | 3,815 | $ | 3,635 | |||||||
Schedule of Revenue from Significant Clients | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Telecommunications client | 11% | 12% | 10% | ||||||||||
Schedule of Accounts Receivable Outstanding from Significant Clients | Accounts receivable from this client was as follows (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Telecommunications client | $ | 38,400 | $ | 24,120 | $ | 25,471 | |||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY PLANT AND EQUIPMENT (TABLES) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
PROPERTY PLANT AND EQUIPMENT [ABSTRACT] | |||||||
Schedule of Property, Plant and Equipment | December 31, | ||||||
2014 | 2013 | ||||||
Land and buildings | $ | 38,833 | $ | 38,833 | |||
Computer equipment and software | 334,127 | 297,567 | |||||
Telephone equipment | 38,925 | 39,238 | |||||
Furniture and fixtures | 57,411 | 50,638 | |||||
Leasehold improvements | 158,844 | 148,890 | |||||
Motor vehicles | 175 | 188 | |||||
Construction-in-progress and other | 36 | 145 | |||||
Property, plant and equipment, gross | 628,351 | 575,499 | |||||
Less: Accumulated depreciation and amortization | -478,139 | -448,780 | |||||
Property, plant and equipment, net | $ | 150,212 | $ | 126,719 | |||
GOODWILL_TABLES
GOODWILL (TABLES) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
GOODWILL [ABSTRACT] | |||||||||||||||||||
Schedule of Goodwill Rollforward | 31-Dec-13 | Acquisitions / Adjustments | Impairments | Deconsolidation of Subsidiary | Effect of Foreign Currency | 31-Dec-14 | |||||||||||||
Customer Management Services | $ | 19,819 | $ | 6,358 | $ | - | $ | - | $ | -306 | $ | 25,871 | |||||||
Customer Growth Services | 30,128 | 267 | - | - | - | 30,395 | |||||||||||||
Customer Technology Services | 42,709 | - | - | - | - | 42,709 | |||||||||||||
Customer Strategy Services | 10,087 | 21,210 | - | - | -1,567 | 29,730 | |||||||||||||
Total | $ | 102,743 | $ | 27,835 | $ | - | $ | - | $ | -1,873 | $ | 128,705 | |||||||
31-Dec-12 | Acquisitions / Adjustments | Impairments | Deconsolidation of Subsidiary | Effect of Foreign Currency | 31-Dec-13 | ||||||||||||||
Customer Management Services | $ | 20,288 | $ | - | $ | - | $ | - | $ | -469 | $ | 19,819 | |||||||
Customer Growth Services | 24,439 | 5,689 | - | - | - | 30,128 | |||||||||||||
Customer Technology Services | 42,153 | 478 | - | - | 78 | 42,709 | |||||||||||||
Customer Strategy Services | 11,361 | - | - | -1,274 | - | 10,087 | |||||||||||||
Total | $ | 98,241 | $ | 6,167 | $ | - | $ | -1,274 | $ | -391 | $ | 102,743 | |||||||
CONTRACT_ACQUISITION_COSTS_TAB
CONTRACT ACQUISITION COSTS (TABLES) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
CONTRACT ACQUISITION COSTS [ABSTRACT] | |||||||
Schedule of Contract Acquisition Costs | December 31, | ||||||
2014 | 2013 | ||||||
Contract acquisition costs, gross | $ | 2,415 | $ | 5,278 | |||
Less: Accumulated amortization | -1,187 | -3,636 | |||||
Contract acquisition costs, net | $ | 1,228 | $ | 1,642 | |||
Future Amortization of Contract Acquisition Costs | 2015 | $ | 510 | ||||
2016 | 302 | ||||||
2017 | 301 | ||||||
2018 | 115 | ||||||
Total | $ | 1,228 | |||||
OTHER_INTANGIBLE_ASSETS_TABLES
OTHER INTANGIBLE ASSETS (TABLES) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
OTHER INTANGIBLE ASSETS [Abstract] | ||||||||||||||||
Schedule of Intangible Assets (Excluding Goodwill) | 31-Dec-13 | Amortization and Impairment | Acquisitions | Effect of Foreign Currency | 31-Dec-14 | |||||||||||
Customer relationships, gross | $ | 50,830 | $ | - | 14,115 | -1,031 | $ | 63,914 | ||||||||
Customer relationships - | ||||||||||||||||
accumulated amortization | -13,547 | -6,779 | - | - | -20,326 | |||||||||||
Other intangible assets, gross | 11,634 | - | 1,607 | -128 | 13,113 | |||||||||||
Other intangible assets - | ||||||||||||||||
accumulated amortization | -3,818 | -2,691 | - | - | -6,509 | |||||||||||
Trade name - indefinite life | 9,713 | - | - | - | 9,713 | |||||||||||
Other intangible assets, net | $ | 54,812 | $ | -9,470 | $ | 15,722 | $ | -1,159 | $ | 59,905 | ||||||
31-Dec-12 | Amortization and Impairment | Acquisitions | Effect of Foreign Currency | 31-Dec-13 | ||||||||||||
Customer relationships, gross | $ | 46,171 | $ | - | $ | 5,920 | $ | -1,261 | $ | 50,830 | ||||||
Customer relationships - | ||||||||||||||||
accumulated amortization | -8,588 | -5,343 | - | 384 | -13,547 | |||||||||||
Other intangible assets, gross | 8,021 | - | 3,600 | 13 | 11,634 | |||||||||||
Other intangible assets - | ||||||||||||||||
accumulated amortization | -1,943 | -1,875 | - | - | -3,818 | |||||||||||
Trade name - indefinite life | 10,800 | -1,087 | - | - | 9,713 | |||||||||||
Other intangible assets, net | $ | 54,461 | $ | -8,305 | $ | 9,520 | $ | -864 | $ | 54,812 | ||||||
Future Amortization Expense of Finite Lived Intangible Assets | 2015 | $ | 10,768 | |||||||||||||
2016 | 10,403 | |||||||||||||||
2017 | 9,075 | |||||||||||||||
2018 | 7,203 | |||||||||||||||
2019 | 6,027 | |||||||||||||||
Thereafter | 7,434 | |||||||||||||||
Total | $ | 50,910 | ||||||||||||||
DERIVATIVES_TABLES
DERIVATIVES (TABLES) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
DERIVATIVES [ABSTRACT] | |||||||||||||||||||
Schedule of Cash Flow Hedges OCI Rollforward | Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Aggregate unrealized net gain/(loss) at beginning of year | $ | -8,352 | $ | 9,559 | $ | -5,852 | |||||||||||||
Add: Net gain/(loss) from change in fair value of cash flow hedges | -12,121 | -13,721 | 17,748 | ||||||||||||||||
Less: Net (gain)/loss reclassified to earnings from effective hedges | 2,128 | -4,190 | -2,337 | ||||||||||||||||
Aggregate unrealized net gain/(loss) at end of year | $ | -18,345 | $ | -8,352 | $ | 9,559 | |||||||||||||
Schedule of Notional Amounts of Outstanding Cash Flow Hedges | As of December 31, 2014 | Local Currency Notional Amount | U.S. Dollar Notional Amount | % Maturing in 2015 | Contracts Maturing Through | ||||||||||||||
Canadian Dollar | 1,500 | $ | 1,441 | 100.00% | Jun-15 | ||||||||||||||
Philippine Peso | 17,428,000 | 398,046 | (1) | 40.00% | Aug-19 | ||||||||||||||
Mexican Peso | 2,532,000 | 179,089 | 29.70% | Sep-19 | |||||||||||||||
New Zealand Dollar | 490 | 381 | 100.00% | Jul-15 | |||||||||||||||
$ | 578,957 | ||||||||||||||||||
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 Dollars | 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 December 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 December 31, 2014 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | ||||||||||||
and 2013 | 15 million | 1 - month LIBOR | 3.14 | % | May-12 | May-17 | |||||||||||||
$ | 40 million | ||||||||||||||||||
Schedule of Derivatives Instruments on Balance Sheet | 31-Dec-14 | ||||||||||||||||||
Designation: | Designated as Hedging Instruments | Not Designated as Hedging Instruments | |||||||||||||||||
Derivative contract type: | 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 | $ | 192 | $ | - | $ | 797 | $ | - | |||||||||||
Other long-term assets | 389 | - | - | - | |||||||||||||||
Other current liabilities | -12,680 | -988 | -5 | - | |||||||||||||||
Other long-term liabilities | -17,070 | -452 | - | - | |||||||||||||||
Total fair value of derivatives, net | $ | -29,169 | $ | -1,440 | $ | 792 | $ | - | |||||||||||
31-Dec-13 | |||||||||||||||||||
Designation: | Designated as Hedging Instruments | Not Designated as Hedging Instruments | |||||||||||||||||
Derivative contract type: | 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 | Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Designation: | Designated as Hedging Instruments | Designated as Hedging Instruments | |||||||||||||||||
Derivative contract type: | 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 | $ | -11,926 | $ | -195 | $ | -13,530 | $ | -191 | |||||||||||
Amount and location of net gain or (loss) reclassified | |||||||||||||||||||
from accumulated OCI to income - effective portion: | |||||||||||||||||||
Revenue | $ | -2,429 | $ | - | $ | 7,973 | $ | - | |||||||||||
Interest expense | - | -1,060 | - | -1,047 | |||||||||||||||
Year Ended December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Designation: | Not Designated as Hedging Instruments | Not Designated as Hedging Instruments | |||||||||||||||||
Derivative contract type: | Foreign Exchange | Leases | Foreign Exchange | Leases | |||||||||||||||
Derivative classification: | Option and Forward Contracts | Fair Value | Embedded Derivative | Option and Forward Contracts | Fair Value | Embedded Derivative | |||||||||||||
Amount and location of net gain | |||||||||||||||||||
or (loss) recognized in the | |||||||||||||||||||
Consolidated Statement of | |||||||||||||||||||
Comprehensive Income (Loss): | |||||||||||||||||||
Cost of services | $ | - | $ | - | $ | -116 | $ | - | $ | - | $ | 162 | |||||||
Other income (expense), net | - | -386 | - | - | -6,360 | - | |||||||||||||
FAIR_VALUE_TABLES
FAIR VALUE (TABLES) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
FAIR VALUE [Abstract] | |||||||||||||||
Schedule of Fair Value Derivative Assets and Liabilities | As of December 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 | $ | - | $ | -29,169 | $ | - | $ | -29,169 | |||||||
Interest rate swaps | - | -1,440 | - | -1,440 | |||||||||||
Fair value hedges | - | 792 | - | 792 | |||||||||||
Embedded derivatives | - | - | - | - | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -29,817 | $ | - | $ | -29,817 | |||||||
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 December 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 | $ | - | $ | - | $ | - | |||||||||
Derivative instruments, net | - | - | - | ||||||||||||
Total assets | $ | - | $ | - | $ | - | |||||||||
Liabilities | |||||||||||||||
Deferred compensation plan liability | $ | - | $ | -8,478 | $ | - | |||||||||
Derivative instruments, net | - | -29,817 | - | ||||||||||||
Contingent consideration | - | - | -24,744 | ||||||||||||
Total liabilities | $ | - | $ | -38,295 | $ | -24,744 | |||||||||
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 | - | ||||||||||||
Contingent consideration | - | - | -21,748 | ||||||||||||
Total liabilities | $ | - | $ | -21,300 | $ | -21,748 | |||||||||
Schedule of Business Acquisitions by Acquisition Contingent Consideration | 31-Dec-13 | Acquisitions | Payments | Imputed Interest / Adjustments | 31-Dec-14 | ||||||||||
iKnowtion | $ | 3,470 | $ | - | $ | -1,400 | $ | 195 | $ | 2,265 | |||||
Guidon | 2,637 | - | -1,426 | -211 | 1,000 | ||||||||||
TSG | 12,933 | - | -5,292 | -7,641 | - | ||||||||||
WebMetro | 2,708 | - | -1,026 | -1,682 | - | ||||||||||
Sofica | - | 3,830 | - | 2,487 | 6,317 | ||||||||||
rogenSi | - | 14,543 | - | 619 | 15,162 | ||||||||||
Total | $ | 21,748 | $ | 18,373 | $ | -9,144 | $ | -6,233 | $ | 24,744 | |||||
31-Dec-12 | Acquisitions | Payments | Imputed Interest / Adjustments | 31-Dec-13 | |||||||||||
iKnowtion | $ | 3,633 | $ | - | $ | -1,100 | $ | 937 | $ | 3,470 | |||||
Guidon | 2,200 | - | - | 437 | 2,637 | ||||||||||
TSG | 11,157 | - | - | 1,776 | 12,933 | ||||||||||
WebMetro | - | 2,557 | - | 151 | 2,708 | ||||||||||
Total | $ | 16,990 | $ | 2,557 | $ | -1,100 | $ | 3,301 | $ | 21,748 | |||||
INCOME_TAXES_TABLES
INCOME TAXES (TABLES) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES [ABSTRACT] | |||||||||||
Sources of Pre-Tax Accounting Income | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | 20,569 | $ | 10,816 | $ | -8,336 | |||||
Foreign | 79,890 | 81,253 | 82,198 | ||||||||
Total | $ | 100,459 | $ | 92,069 | $ | 73,862 | |||||
Components of Income Tax Expense (Benefit) | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
Current provision for (benefit from) | |||||||||||
Federal | $ | -699 | $ | -320 | $ | -2,211 | |||||
State | 270 | 150 | -1,013 | ||||||||
Foreign | 13,957 | 13,876 | 809 | ||||||||
Total current provision for (benefit from) | 13,528 | 13,706 | -2,415 | ||||||||
Deferred provision for (benefit from) | |||||||||||
Federal | 10,148 | 4,674 | 1,215 | ||||||||
State | 423 | 195 | 64 | ||||||||
Foreign | -1,057 | 2,023 | 1,075 | ||||||||
Total deferred provision for (benefit from) | 9,514 | 6,892 | 2,354 | ||||||||
Total provision for (benefit from) income taxes | $ | 23,042 | $ | 20,598 | $ | -61 | |||||
Effective Income Tax Rate Reconciliation Table | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
Income tax per U.S. federal statutory rate (35%) | $ | 35,161 | $ | 32,224 | $ | 25,852 | |||||
State income taxes, net of federal deduction | 1,525 | 210 | -345 | ||||||||
Change in valuation allowances | 256 | 3,266 | -315 | ||||||||
Foreign income taxes at different rates than the U.S. | -17,824 | -20,529 | -24,507 | ||||||||
Foreign withholding taxes | 257 | 2,504 | 2,876 | ||||||||
Losses in international markets without tax benefits | 1,649 | 779 | 4,329 | ||||||||
Nondeductible compensation under Section 162(m) | 817 | 1,847 | 1,451 | ||||||||
Liabilities for uncertain tax positions | 1,435 | 77 | -2,988 | ||||||||
Permanent difference related to foreign exchange gains | -11 | -122 | -13 | ||||||||
(Income) losses of foreign branch operations | 225 | 1,447 | -4,263 | ||||||||
Non-taxable earnings of minority interest | -1,141 | -1,172 | -213 | ||||||||
Foreign dividend less foreign tax credits | -1,428 | -2,587 | -2,935 | ||||||||
Increase in deferred tax liability - branch losses in UK | -75 | -954 | -1,012 | ||||||||
Decrease (increase) to deferred tax asset - change in tax rate | -443 | -68 | 946 | ||||||||
State income tax credits and net operating losses | -142 | 615 | 709 | ||||||||
Foreign earnings taxed currently in U.S. | 2,696 | 2,907 | - | ||||||||
Other | 85 | 154 | 367 | ||||||||
Income tax per effective tax rate | $ | 23,042 | $ | 20,598 | $ | -61 | |||||
Schedule of Deferred Tax Assets and Liabilities | Year Ended December 31, | ||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets, gross | |||||||||||
Accrued workers compensation, deferred compensation | |||||||||||
and employee benefits | $ | 17,030 | $ | 7,866 | |||||||
Allowance for doubtful accounts, insurance and other accruals | 4,554 | 4,037 | |||||||||
Amortization of deferred rent liabilities | 2,201 | 1,903 | |||||||||
Net operating losses | 11,296 | 11,023 | |||||||||
Equity compensation | 2,997 | 6,566 | |||||||||
Customer acquisition and deferred revenue accruals | 16,241 | 15,228 | |||||||||
Federal and state tax credits, net | 10,621 | 15,886 | |||||||||
Unrealized losses on derivatives | 11,686 | 4,446 | |||||||||
Other | 12,749 | 9,467 | |||||||||
Total deferred tax assets, gross | 89,375 | 76,422 | |||||||||
Valuation allowances | -10,721 | -10,792 | |||||||||
Total deferred tax assets, net | 78,654 | 65,630 | |||||||||
Deferred tax liabilities | |||||||||||
Long-term lease obligations | - | -12 | |||||||||
Depreciation and amortization | -7,035 | 1,067 | |||||||||
Contract acquisition costs | -11,768 | -11,653 | |||||||||
Future losses in UK | -2,530 | -2,606 | |||||||||
Intangible assets | -7,628 | - | |||||||||
Other | -355 | -600 | |||||||||
Total deferred tax liabilities | -29,316 | -13,804 | |||||||||
Net deferred tax assets | $ | 49,338 | $ | 51,826 | |||||||
Valuation Allowance Rollforward | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
Beginning balance | $ | 10,792 | $ | 20,909 | $ | 16,555 | |||||
Additions of deferred income tax expense | 946 | 4,218 | 5,560 | ||||||||
Reductions of deferred income tax expense | -1,017 | -14,335 | -1,206 | ||||||||
Ending balance | $ | 10,721 | $ | 10,792 | $ | 20,909 | |||||
Expiration of Net Operating Loss Carryforwards | 2015 | $ | - | ||||||||
2016 | 1,325 | ||||||||||
2017 | 1,079 | ||||||||||
2018 | - | ||||||||||
After 2018 | 4,442 | ||||||||||
No expiration | 3,102 | ||||||||||
Total | $ | 9,948 | |||||||||
Reserve for Uncertain Tax Positions Rollforward | Balance as of December 31, 2011 | $ | 2,735 | ||||||||
Additions for current year tax positions | 369 | ||||||||||
Reductions in prior year tax positions | -2,746 | ||||||||||
Balance as of December 31, 2012 | 358 | ||||||||||
Additions for current year tax positions | - | ||||||||||
Reductions in prior year tax positions | - | ||||||||||
Balance as of December 31, 2013 | 358 | ||||||||||
Additions for current year tax positions | 1,303 | ||||||||||
Reductions in prior year tax positions | - | ||||||||||
Balance as of December 31, 2014 | $ | 1,661 | |||||||||
Jurisdictions Open to Income Tax Examination | Tax Jurisdiction | Tax Year Ended | |||||||||
United States | 2011 to present | ||||||||||
Argentina | 2009 to present | ||||||||||
Australia | 2010 to present | ||||||||||
Brazil | 2009 to present | ||||||||||
Canada | 2006 to present | ||||||||||
Mexico | 2009 to present | ||||||||||
Philippines | 2012 to present | ||||||||||
Spain | 2010 to present | ||||||||||
RESTRUCTURING_CHARGES_AND_IMPA1
RESTRUCTURING CHARGES AND IMPAIRMENT (TABLES) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | |||||||||||
Schedule of Restructuring Liabilities | Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | |||||||||
Reduction in force | |||||||||||
Customer Management Services | $ | 2,182 | $ | 3,832 | $ | 22,371 | |||||
Customer Growth Services | 56 | 43 | 201 | ||||||||
Customer Technology Services | 709 | 73 | 60 | ||||||||
Customer Strategy Services | 389 | 189 | - | ||||||||
Total | $ | 3,336 | $ | 4,137 | $ | 22,632 | |||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Facility exit charges | |||||||||||
Customer Management Services | $ | 14 | $ | 298 | $ | 243 | |||||
Customer Growth Services | - | - | - | ||||||||
Customer Technology Services | - | - | - | ||||||||
Customer Strategy Services | - | - | - | ||||||||
Total | $ | 14 | $ | 298 | $ | 243 | |||||
Schedule of Restructuring Liability Rollforward | Closure of Delivery Centers | Reduction in Force | Total | ||||||||
Balance as of December 31, 2012 | $ | - | $ | 4,079 | $ | 4,079 | |||||
Expense | 298 | 4,352 | 4,650 | ||||||||
Payments | -298 | -6,863 | -7,161 | ||||||||
Changes in estimates | - | -215 | -215 | ||||||||
Balance as of December 31, 2013 | - | 1,353 | 1,353 | ||||||||
Expense | 14 | 3,442 | 3,456 | ||||||||
Payments | -14 | -2,618 | -2,632 | ||||||||
Changes in estimates | - | -106 | -106 | ||||||||
Balance as of December 31, 2014 | $ | - | $ | 2,071 | $ | 2,071 | |||||
DEFERRED_REVENUE_AND_COSTS_TAB
DEFERRED REVENUE AND COSTS (TABLES) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
DEFERRED REVENUE AND COSTS [ABSTRACT] | |||||||
Classification of Deferred Revenue on Balance Sheet | December 31, | ||||||
2014 | 2013 | ||||||
Deferred Revenue - Current | $ | 29,887 | $ | 28,799 | |||
Deferred Revenue - Long-term | 18,771 | 9,978 | |||||
Total Deferred Revenue | $ | 48,658 | $ | 38,777 | |||
Classification of Deferred Costs on Balance Sheet | December 31, | ||||||
2014 | 2013 | ||||||
Deferred Costs - Current | $ | 16,845 | $ | 15,953 | |||
Deferred Costs - Long-term | 12,213 | 13,202 | |||||
Total Deferred Costs | $ | 29,059 | $ | 29,155 | |||
LEASES_TABLES
LEASES (TABLES) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
LEASES [ABSTRACT] | |||||||||||||||
Schedule of Future Minimum Lease Payments | Operating Leases | Sub-Lease Income | |||||||||||||
2015 | $ | 43,411 | $ | -2,234 | |||||||||||
2016 | 34,248 | -2,234 | |||||||||||||
2017 | 26,505 | -2,234 | |||||||||||||
2018 | 18,582 | -2,470 | |||||||||||||
2019 | 9,665 | -2,470 | |||||||||||||
Thereafter | 3,826 | -2,675 | |||||||||||||
Total | $ | 136,237 | $ | -14,317 | |||||||||||
Schedule of Change in Asset Retirement Obligation Liability | Balance at December 31, 2013 | Additions and Modifications | Accretion | Settlements | Balance at December 31, 2014 | ||||||||||
ARO liability total | $ | 1,888 | $ | 39 | $ | 14 | $ | - | $ | 1,941 | |||||
Balance at December 31, 2012 | Additions and Modifications | Accretion | Settlements | Balance at December 31, 2013 | |||||||||||
ARO liability total | $ | 2,061 | $ | - | $ | 42 | $ | -215 | $ | 1,888 | |||||
MANDATORILY_REDEEMABLE_NONCONT1
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (TABLES) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Mandatorily Redeemable Noncontrolling Interest [Abstract] | |||||||
Rollforward of Mandatorily Redeemable Noncontrolling Interest | Year Ended December 31, | ||||||
2014 | 2013 | ||||||
Mandatorily redeemable noncontrolling interest, January 1 | $ | 2,509 | $ | 1,067 | |||
Net income attributable to mandatorily redeemable noncontrolling interest | 613 | 482 | |||||
Working capital distributed to mandatorily redeemable noncontrolling interest | -1,244 | -717 | |||||
Change in redemption value | 936 | 1,677 | |||||
Mandatorily redeemable noncontrolling interest, December 31 | $ | 2,814 | $ | 2,509 | |||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (TABLES) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | ||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Foreign Currency Translation Adjustment | Derivative Valuation, Net of Tax | Other, Net of Tax | Totals | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2011 | $ | 3,156 | $ | -5,852 | $ | -2,778 | $ | -5,474 | ||||||
Other comprehensive income (loss) before reclassifications | 12,517 | 17,748 | -302 | 29,963 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | -2,337 | 829 | -1,508 | ||||||||||
Net current period other comprehensive income (loss) | 12,517 | 15,411 | 527 | 28,455 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 30, 2012 | $ | 15,673 | $ | 9,559 | $ | -2,251 | $ | 22,981 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2012 | $ | 15,673 | $ | 9,559 | $ | -2,251 | $ | 22,981 | ||||||
Other comprehensive income (loss) before reclassifications | -26,254 | -13,721 | 29 | -39,946 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | -4,190 | 569 | -3,621 | ||||||||||
Net current period other comprehensive income (loss) | -26,254 | -17,911 | 598 | -43,567 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 30, 2013 | $ | -10,581 | $ | -8,352 | $ | -1,653 | $ | -20,586 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2013 | $ | -10,581 | $ | -8,352 | $ | -1,653 | $ | -20,586 | ||||||
Other comprehensive income (loss) before reclassifications | -22,771 | -12,121 | 44 | -34,848 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | 2,128 | 1,032 | 3,160 | ||||||||||
Net current period other comprehensive income (loss) | -22,771 | -9,993 | 1,076 | -31,688 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 30, 2014 | $ | -33,352 | $ | -18,345 | $ | -577 | $ | -52,274 | ||||||
Income Statement Location of Adjustments Reclassified from Accumulated Other Comprehensive Income to Income | For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | Statement of Comprehensive Income (Loss) Classification | |||||||||||
Derivative valuation | ||||||||||||||
Gain (loss) on foreign currency forward | ||||||||||||||
exchange contracts | $ | -2,429 | $ | 7,973 | $ | 4,638 | Revenue | |||||||
Loss on interest rate swaps | -1,060 | -1,047 | -741 | Interest expense | ||||||||||
Tax effect | 1,361 | -2,736 | -1,560 | Provision for income taxes | ||||||||||
$ | -2,128 | $ | 4,190 | $ | 2,337 | Net income (loss) | ||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -1,098 | $ | -605 | $ | -882 | Cost of services | |||||||
Tax effect | 66 | 36 | 53 | Provision for income taxes | ||||||||||
$ | -1,032 | $ | -569 | $ | -829 | Net income (loss) | ||||||||
NET_INCOME_PER_SHARE_TABLES
NET INCOME PER SHARE (TABLES) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
NET INCOME PER SHARE [Abstract] | |||||||||
Schedule of Diluted Shares Calculation | Year Ended December 31, | ||||||||
2014 | 2013 | 2012 | |||||||
Shares used in basic earnings per share calculation | 49,297 | 51,338 | 54,738 | ||||||
Effect of dilutive securities: | |||||||||
Stock options | 413 | 417 | 378 | ||||||
Restricted stock units | 392 | 489 | 424 | ||||||
Performance-based restricted stock units | - | - | - | ||||||
Total effects of dilutive securities | 805 | 906 | 802 | ||||||
Shares used in dilutive earnings per share calculation | 50,102 | 52,244 | 55,540 | ||||||
EMPLOYEE_COMPENSATION_PLANS_TA
EMPLOYEE COMPENSATION PLANS (TABLES) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
EMPLOYEE COMPENSATION PLANS [Abstract] | |||||||||||
Rollforward of Non-Vested RSUs and Performance-Based RSUs | Shares | Weighted Average Grant Date Fair Value | |||||||||
Unvested as of December 31, 2013 | 1,973,575 | $ | 20.39 | ||||||||
Granted | 666,656 | $ | 26.92 | ||||||||
Vested | -626,070 | $ | 19.85 | ||||||||
Cancellations/expirations | -191,083 | $ | 19.62 | ||||||||
Unvested as of December 31, 2014 | 1,823,078 | $ | 23.02 | ||||||||
Assumptions Used in Valuation of Stock Options | Year Ended December 31, | ||||||||||
2011 | |||||||||||
Risk-free interest rate | 2.10% | ||||||||||
Expected life in years | 1.3 - 2.7 | ||||||||||
Expected volatility | 54.40% | ||||||||||
Dividend yield | 0.00% | ||||||||||
Weighted-average volatility | 54.40% | ||||||||||
Rollforward of Stock Option Activity | Shares | Weighted Average Exercise Price | Weighted Average Remaining Contract Term in Years | Aggregate Intrinsic Value (000's) | |||||||
Outstanding as of December 31, 2013 | 1,220,474 | $ | 13.43 | ||||||||
Exercises | -53,100 | $ | 9.6 | ||||||||
Post-vest cancellations/expirations | -15,375 | $ | 8.9 | ||||||||
Outstanding as of December 31, 2014 | 1,151,999 | $ | 13.67 | 1.9 | $ | 11,540 | |||||
Vested and exercisable as of | |||||||||||
31-Dec-14 | 1,001,999 | $ | 13.12 | 1.2 | $ | 10,584 | |||||
OTHER_FINANCIAL_INFORMATION_TA
OTHER FINANCIAL INFORMATION (TABLES) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
OTHER FINANCIAL INFORMATION [ABSTRACT] | |||||||
Table of Self Insurance Liabilities | December 31, | ||||||
2014 | 2013 | ||||||
Worker's compensation | $ | 2,007 | $ | 1,649 | |||
Employee health and dental insurance | 4,769 | 3,633 | |||||
Other insurance | 1,068 | 631 | |||||
Total self-insurance liabilities | $ | 7,844 | $ | 5,913 | |||
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (TABLES) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) [ABSTRACT] | ||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||
Revenue | $ | 302,221 | $ | 295,490 | $ | 305,900 | $ | 338,170 | Revenue | $ | 288,383 | $ | 289,692 | $ | 296,995 | $ | 318,087 | |||||||||||||
Cost of services | 213,787 | 212,315 | 220,244 | 240,146 | Cost of services | 208,232 | 208,809 | 208,648 | 220,942 | |||||||||||||||||||||
Selling, general and administrative | 50,367 | 47,802 | 49,847 | 50,537 | Selling, general and administrative | 45,747 | 46,168 | 50,165 | 51,343 | |||||||||||||||||||||
Depreciation and amortization | 13,170 | 14,089 | 13,893 | 15,386 | Depreciation and amortization | 10,555 | 11,263 | 11,463 | 12,783 | |||||||||||||||||||||
Restructuring charges, net | 540 | 617 | 593 | 1,600 | Restructuring charges, net | 851 | 2,572 | 758 | 254 | |||||||||||||||||||||
Impairment losses | - | - | - | 373 | Impairment losses | - | 1,205 | - | - | |||||||||||||||||||||
Income from operations | 24,357 | 20,667 | 21,323 | 30,128 | Income from operations | 22,998 | 19,675 | 25,961 | 32,765 | |||||||||||||||||||||
Other income (expense) | -178 | 2,880 | -856 | 2,138 | Other income (expense) | -2,004 | -3,099 | -434 | -3,793 | |||||||||||||||||||||
Provision for income taxes | -2,876 | -5,417 | -5,778 | -8,971 | (Provision for) benefit from income taxes | -2,391 | -3,854 | -6,358 | -7,995 | |||||||||||||||||||||
Non-controlling interest | -1,085 | -1,268 | -1,442 | -1,329 | Non-controlling interest | -642 | -407 | -1,526 | -1,508 | |||||||||||||||||||||
Net income attributable to TeleTech stockholders | $ | 20,218 | $ | 16,862 | $ | 13,247 | $ | 21,966 | Net income attributable to TeleTech stockholders | $ | 17,961 | $ | 12,315 | $ | 17,643 | $ | 19,469 | |||||||||||||
Weighted average shares outstanding | Weighted average shares outstanding | |||||||||||||||||||||||||||||
Basic | 50,045 | 49,351 | 49,093 | 48,714 | Basic | 52,347 | 51,861 | 50,732 | 50,439 | |||||||||||||||||||||
Diluted | 50,973 | 50,111 | 49,940 | 49,514 | Diluted | 53,217 | 52,628 | 51,678 | 51,465 | |||||||||||||||||||||
Net income per share attributable to TeleTech stockholders | Net income per share attributable to TeleTech stockholders | |||||||||||||||||||||||||||||
Basic | $ | 0.4 | $ | 0.34 | $ | 0.27 | $ | 0.45 | Basic | $ | 0.34 | $ | 0.24 | $ | 0.35 | $ | 0.39 | |||||||||||||
Diluted | $ | 0.4 | $ | 0.34 | $ | 0.27 | $ | 0.44 | Diluted | $ | 0.34 | $ | 0.23 | $ | 0.34 | $ | 0.38 | |||||||||||||
ACQUISITIONS_ASSETS_ACQUIRED_T
ACQUISITIONS (ASSETS ACQUIRED TABLE) (DETAILS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 09, 2013 | Jan. 28, 2014 | Aug. 08, 2014 |
In Thousands, unless otherwise specified | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $128,705 | $102,743 | $98,241 | |||
Accrued employee compensation and benefits | 70,069 | 80,130 | ||||
Technology Solutions Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total Purchase Price | 44,500 | |||||
WebMetro [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total Purchase Price | 17,800 | |||||
Sofica [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | 857 | |||||
Accounts receivable, net | 3,175 | |||||
Other assets | 378 | |||||
Property, plant and equipment | 653 | |||||
Customer relationships | 4,915 | |||||
Goodwill | 6,358 | |||||
Total assets acquired | 16,336 | |||||
Accounts payable | 296 | |||||
Accrued expenses | 664 | |||||
Accrued employee compensation and benefits | 697 | |||||
Other | 507 | |||||
Total Liabilities | 2,164 | |||||
Total Purchase Price | 14,172 | |||||
rogenSi [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | 2,670 | |||||
Accounts receivable, net | 6,417 | |||||
Other assets | 3,328 | |||||
Property, plant and equipment | 578 | |||||
Customer relationships | 9,314 | |||||
Goodwill | 20,860 | |||||
Total assets acquired | 43,167 | |||||
Accounts payable | 708 | |||||
Accrued expenses | 1,146 | |||||
Accrued employee compensation and benefits | 2,203 | |||||
Other | 4,845 | |||||
Total Liabilities | 8,902 | |||||
Total Purchase Price | $34,265 |
ACQUISITIONS_NARRATIVE_DETAILS
ACQUISITIONS (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended | 7 Months Ended | 1 Months Ended | 7 Months Ended | 2 Months Ended | 9 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 08, 2014 | Jan. 28, 2014 | Aug. 09, 2013 | Feb. 27, 2012 | Oct. 04, 2012 | Jun. 30, 2013 | |
Business Acquisition [Line Items] | |||||||||
Future Value of Liabilities Incurred From Business Acquisitions | $25,700,000 | ||||||||
Contingent Consideration, at fair value | 16,990,000 | ||||||||
Contingent consideration payments during period | -9,144,000 | -1,100,000 | |||||||
Revenue of Acquirees since Acquisition Date, Actual | 91,900,000 | 69,100,000 | 8,900,000 | ||||||
Income (loss) from operations of Acquirees since Acquisition Date, Actual | 7,700,000 | 10,000,000 | 1,400,000 | ||||||
Business Combination Pro Forma Information Amortization Expense Of Acquirees Since Acquisition | 6,300,000 | 4,200,000 | 400,000 | ||||||
rogenSi [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Date of Acquisition | 8-Aug-14 | ||||||||
Description of Acquired Entity | rogenSi Worldwide PTY, Ltd., a global leadership, change management, sales, performance training and consulting company. | ||||||||
Total Purchase Price | 34,265,000 | ||||||||
Cost of Acquired Entity, Up Front Cash Consideration | 18,000,000 | ||||||||
Valuation Technique on Contingent Consideration | The fair value of the contingent consideration was measured by applying a probability weighted discounted cash flow model based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 4.6% and expected future value of payments of $15.3 million. The $15.3 million of expected future payments was calculated using a probability weighted EBITDA assessment with the highest probability associated with rogenSi achieving the targeted EBITDA for each earn-out year. | ||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 15,300,000 | ||||||||
Contingent Consideration Arrangements, Basis for Amount - Range Description | The total contingent consideration possible per the sale and purchase agreement ranges from zero to $17.6 million and the earn-out payments are payable in early 2015, 2016 and 2017, based on July 1, 2014 through December 31, 2014, and full year 2015 and 2016 performance, respectively. | ||||||||
Contingent Consideration, at fair value | 14,500,000 | ||||||||
Discount rate | 4.60% | ||||||||
Measurement period adjustment - Other accrued expenses | 6,400,000 | ||||||||
Measurement period adjustment - Other noncurrent liabilities | 8,800,000 | ||||||||
Acquisiton hold-back payment | 1,800,000 | ||||||||
rogenSi [Member] | Customer relationships, gross [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted Average Useful Life of Acquired Intangible Assets | 5 years 0 months 0 days | ||||||||
Sofica [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Date of Acquisition | 28-Jan-14 | ||||||||
Percentage of Voting Interests Acquired | 100.00% | ||||||||
Description of Acquired Entity | Sofica provides customer lifecycle management and other business process services across multiple channels in multiple sites in over 18 languages. | ||||||||
Total Purchase Price | 14,172,000 | ||||||||
Cost of Acquired Entity, Up Front Cash Consideration | 9,400,000 | ||||||||
Valuation Technique on Contingent Consideration | The fair value of the contingent consideration was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 5.0% and expected future value of payments of $4.0 million. The $4.0 million of expected future payments was calculated using a probability weighted EBITDA assessment with the highest probability associated with Sofica achieving the targeted EBITDA for each earn-out year. | ||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 4,000,000 | ||||||||
Contingent Consideration Arrangements, Basis for Amount - Range Description | The total contingent consideration possible per the stock purchase agreement ranges from zero to $7.5 million. Additionally, the purchase price includes a $1.0 million hold-back payment for contingencies as defined in the stock purchase agreement which will be paid in the second quarter of 2016, if required. | ||||||||
Discount rate | 5.00% | ||||||||
Measurement period adjustment - Other accrued expenses | 2,800,000 | ||||||||
Measurement period adjustment - Other noncurrent liabilities | 3,500,000 | ||||||||
Acquisiton hold-back payment | 1,000,000 | ||||||||
Sofica [Member] | Customer relationships, gross [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted Average Useful Life of Acquired Intangible Assets | 6 years 0 months 0 days | ||||||||
Sofica [Member] | Trade name - indefinite life [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted Average Useful Life of Acquired Intangible Assets | 3 years 0 months 0 days | ||||||||
Sofica [Member] | NonCompeteAgreement | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted Average Useful Life of Acquired Intangible Assets | 5 years 0 months 0 days | ||||||||
WebMetro [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Date of Acquisition | 9-Aug-13 | ||||||||
Percentage of Voting Interests Acquired | 100.00% | ||||||||
Total Purchase Price | 17,800,000 | ||||||||
Cost of Acquired Entity, Up Front Cash Consideration | 15,300,000 | ||||||||
Valuation Technique on Contingent Consideration | The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 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. | ||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 2,600,000 | ||||||||
Contingent Consideration, at fair value | 2,500,000 | ||||||||
Discount rate | 5.30% | ||||||||
Iknowtion [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Date of Acquisition | 27-Feb-12 | ||||||||
Percentage of Voting Interests Acquired | 80.00% | ||||||||
Description of Acquired Entity | iKnowtion integrates proven marketing analytics methodologies and business consulting capabilities to help clients improve their return on marketing expenditures in such areas as demand generation, share of wallet, and channel mix optimization. | ||||||||
Cost of Acquired Entity, Up Front Cash Consideration | 1,200,000 | ||||||||
Valuation Technique on Contingent Consideration | The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include a discount rate of 21% and expected future value of payments of $4.3 million. The $4.3 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with iKnowtion achieving the maximum EBITDA targets. | ||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 4,300,000 | ||||||||
Contingent Consideration, at fair value | 2,900,000 | ||||||||
Discount rate | 21.00% | ||||||||
Measurement period adjustment - Other accrued expenses | 1,800,000 | ||||||||
Measurement period adjustment - Other noncurrent liabilities | 500,000 | ||||||||
Guidon [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Date of Acquisition | 4-Oct-12 | ||||||||
Percentage of Voting Interests Acquired | 100.00% | ||||||||
Description of Acquired Entity | Guidon provides operational consulting services and designs solutions for operational and cultural transformation for global clients. | ||||||||
Cost of Acquired Entity, Up Front Cash Consideration | 5,700,000 | ||||||||
Valuation Technique on Contingent Consideration | The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions included in the fair value calculation include a discount rate of 21% and expected future value of payments of $2.8 million. The $2.8 million of expected future payments was calculated using a probability weighted EBITDA assessment with higher probability associated with Guidon achieving the maximum EBITDA targets. | ||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 2,800,000 | ||||||||
Contingent Consideration, at fair value | 2,100,000 | ||||||||
Discount rate | 21.00% | ||||||||
Technology Solutions Group [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Date of Acquisition | 31-Dec-12 | ||||||||
Percentage of Voting Interests Acquired | 100.00% | ||||||||
Description of Acquired Entity | TSG designs and implements custom communications systems for a variety of business types and sizes. | ||||||||
Total Purchase Price | 44,500,000 | ||||||||
Cost of Acquired Entity, Up Front Cash Consideration | 33,300,000 | ||||||||
Valuation Technique on Contingent Consideration | The fair value of the contingent payments was measured based on significant inputs not observable in the market (Level 3 inputs). Key assumptions included in the fair value calculation include a discount rate of 4.6% and expected future value of payments of $12.2 million. The $12.2 million of expected future payments was calculated using a bell curve probability weighted EBITDA assessment with the highest probability associated with TSG achieving the targeted EBITDA for each earn-out year. | ||||||||
Future Value of Liabilities Incurred From Business Acquisitions | 12,200,000 | ||||||||
Contingent Consideration, at fair value | $11,100,000 | ||||||||
Discount rate | 4.60% | ||||||||
Peppers And Rogers Group Member [Member] | Trade name - indefinite life [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Discount rate | 38.00% | ||||||||
Globant [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Nonmonetary Transaction Name Of Counterparty | The Company signed an agreement effective January 31, 2014 to transfer its assets, operations and employees in Argentina to IAFH Global S.A., better known as Globant, a technology service provider based in Argentina. This action placed our assets and employees with a leader focused on developing innovative software products. As part of this agreement, Globant will provide services to TeleTech through their Development Center in Buenos Aires. |
SEGMENT_INFORMATION_SEGMENT_FI
SEGMENT INFORMATION (SEGMENT FINANCIALS) (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Gross Revenue | $1,241,817 | $1,195,553 | $1,169,408 | ||||||||
Intersegment Sales | -36 | -2,396 | -6,427 | ||||||||
Net Revenue | 338,170 | 305,900 | 295,490 | 302,221 | 318,087 | 296,995 | 289,692 | 288,383 | 1,241,781 | 1,193,157 | 1,162,981 |
Depreciation and amortization | 15,386 | 13,893 | 14,089 | 13,170 | 12,783 | 11,463 | 11,263 | 10,555 | 56,538 | 46,064 | 41,166 |
Income (Loss) from Operations | 30,128 | 21,323 | 20,667 | 24,357 | 32,765 | 25,961 | 19,675 | 22,998 | 96,475 | 101,399 | 78,545 |
Capital Expenditures | 67,641 | 50,364 | 40,653 | ||||||||
Total Assets | 852,475 | 842,342 | 852,475 | 842,342 | 851,630 | ||||||
Goodwill | 128,705 | 102,743 | 128,705 | 102,743 | 98,241 | ||||||
Customer Management Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Revenue | 923,497 | 892,145 | 923,774 | ||||||||
Intersegment Sales | 0 | -1,262 | 0 | ||||||||
Net Revenue | 923,497 | 890,883 | 923,774 | ||||||||
Depreciation and amortization | 40,577 | 33,884 | 32,714 | ||||||||
Income (Loss) from Operations | 76,792 | 75,689 | 60,271 | ||||||||
Capital Expenditures | 49,630 | 40,007 | 32,736 | ||||||||
Total Assets | 514,957 | 554,015 | 514,957 | 554,015 | 588,627 | ||||||
Goodwill | 25,871 | 19,819 | 25,871 | 19,819 | 20,288 | ||||||
Customer Growth Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Revenue | 115,434 | 100,996 | 100,846 | ||||||||
Intersegment Sales | 0 | 0 | -74 | ||||||||
Net Revenue | 115,434 | 100,996 | 100,772 | ||||||||
Depreciation and amortization | 6,048 | 4,127 | 3,904 | ||||||||
Income (Loss) from Operations | 7,255 | 3,024 | 2,258 | ||||||||
Capital Expenditures | 3,195 | 3,421 | 3,983 | ||||||||
Total Assets | 88,394 | 86,416 | 88,394 | 86,416 | 54,164 | ||||||
Goodwill | 30,395 | 30,128 | 30,395 | 30,128 | 24,439 | ||||||
Customer Technology Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Revenue | 139,218 | 152,769 | 101,430 | ||||||||
Intersegment Sales | -36 | -284 | -4,582 | ||||||||
Net Revenue | 139,182 | 152,485 | 96,848 | ||||||||
Depreciation and amortization | 7,489 | 6,201 | 3,026 | ||||||||
Income (Loss) from Operations | 4,519 | 19,965 | 15,714 | ||||||||
Capital Expenditures | 14,423 | 6,450 | 3,390 | ||||||||
Total Assets | 159,441 | 157,040 | 159,441 | 157,040 | 152,500 | ||||||
Goodwill | 42,709 | 42,709 | 42,709 | 42,709 | 42,153 | ||||||
Customer Strategy Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Revenue | 63,668 | 49,643 | 43,358 | ||||||||
Intersegment Sales | 0 | -850 | -1,771 | ||||||||
Net Revenue | 63,668 | 48,793 | 41,587 | ||||||||
Depreciation and amortization | 2,424 | 1,852 | 1,522 | ||||||||
Income (Loss) from Operations | 7,909 | 2,721 | 302 | ||||||||
Capital Expenditures | 393 | 486 | 544 | ||||||||
Total Assets | 89,683 | 44,871 | 89,683 | 44,871 | 56,339 | ||||||
Goodwill | $29,730 | $10,087 | $29,730 | $10,087 | $11,361 |
SEGMENT_INFORMATION_REVENUE_GE
SEGMENT INFORMATION (REVENUE GEOGRAPHY) (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $338,170 | $305,900 | $295,490 | $302,221 | $318,087 | $296,995 | $289,692 | $288,383 | $1,241,781 | $1,193,157 | $1,162,981 |
Property, plant and equipment, gross | 628,351 | 575,499 | 628,351 | 575,499 | 555,054 | ||||||
Other long-term assets | 36,658 | 45,726 | 36,658 | 45,726 | 46,784 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 603,297 | 556,239 | 474,236 | ||||||||
Property, plant and equipment, gross | 382,508 | 337,311 | 382,508 | 337,311 | 311,904 | ||||||
Other long-term assets | 27,728 | 34,891 | 27,728 | 34,891 | 35,978 | ||||||
Philippines [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 348,339 | 354,942 | 334,541 | ||||||||
Property, plant and equipment, gross | 119,482 | 101,123 | 119,482 | 101,123 | 107,676 | ||||||
Other long-term assets | 5,202 | 4,408 | 5,202 | 4,408 | 4,124 | ||||||
Latin America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 172,270 | 176,906 | 188,071 | ||||||||
Property, plant and equipment, gross | 67,193 | 75,618 | 67,193 | 75,618 | 70,915 | ||||||
Other long-term assets | 1,456 | 5,299 | 1,456 | 5,299 | 4,696 | ||||||
Europe Middle East Africa [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 83,944 | 72,644 | 111,304 | ||||||||
Property, plant and equipment, gross | 13,367 | 12,311 | 13,367 | 12,311 | 8,767 | ||||||
Other long-term assets | 692 | 311 | 692 | 311 | 887 | ||||||
Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 28,294 | 18,489 | 17,652 | ||||||||
Property, plant and equipment, gross | 26,502 | 28,195 | 26,502 | 28,195 | 29,884 | ||||||
Other long-term assets | 1,309 | 779 | 1,309 | 779 | 1,004 | ||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 5,637 | 13,937 | 37,177 | ||||||||
Property, plant and equipment, gross | 19,299 | 20,941 | 19,299 | 20,941 | 25,908 | ||||||
Other long-term assets | $271 | $38 | $271 | $38 | $95 |
ACCOUNTS_RECEIVABLE_SCHEDULE_O
ACCOUNTS RECEIVABLE (SCHEDULE OF ACCOUNTS RECEIVABLE) (DETAILS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | ||
Accounts receivable | $279,857 | $239,914 |
Less: Allowance for doubtful accounts | -3,425 | -3,815 |
Accounts receivable, net | $276,432 | $236,099 |
ACCOUNTS_RECEIVABLE_SCHEDULE_O1
ACCOUNTS RECEIVABLE (SCHEDULE OF CHANGE IN ALLOWANCE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |||
Balance, beginning of year | $3,815 | $3,635 | $3,559 |
Provision for doubtful accounts | 633 | 695 | 368 |
Uncollectible receivables written-off | -681 | -315 | -209 |
Effect of foreign currency | -342 | -200 | -83 |
Balance, end of year | $3,425 | $3,815 | $3,635 |
ACCOUNTS_RECEIVABLE_SIGNIFICAN
ACCOUNTS RECEIVABLE (SIGNIFICANT CLIENTS TABLE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Entity Wide Revenue Major Customer Line Items | |||
Accounts receivable amount from major customer | 38,400 | 24,120 | 25,471 |
Sales | |||
Concentration Risk, Percentage of Revenue from Major Customer | |||
Revenue from major customer as a percentage of total revenue | 11.00% | 12.00% | 10.00% |
PROPERTY_PLANT_AND_EQUIPMENT_P
PROPERTY PLANT AND EQUIPMENT (PPE BREAKOUT BY TYPE TABLE) (DETAILS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | $628,351 | $575,499 | $555,054 |
Less: Accumulated depreciation and amortization | -478,139 | -448,780 | |
Property, plant and equipment, net | 150,212 | 126,719 | |
Land and buildings [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 38,833 | 38,833 | |
Computer equipment and software [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 334,127 | 297,567 | |
Telephone equipment [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 38,925 | 39,238 | |
Furniture and fixtures [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 57,411 | 50,638 | |
Leasehold improvements [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 158,844 | 148,890 | |
Motor vehicles [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | 175 | 188 | |
Construction-in-progress and other [Member] | |||
Property Plant and Equipment Line Items | |||
Property, plant and equipment, gross | $36 | $145 |
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY PLANT AND EQUIPMENT (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
PROPERTY PLANT AND EQUIPMENT [ABSTRACT] | |||
Depreciation and amortization expense for property, plant and equipment | $46.90 | $38.70 | $37.40 |
GOODWILL_GOODWILL_ROLLFORWARD_
GOODWILL (GOODWILL ROLLFORWARD) (DETAILS) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Beginning balance, goodwill | $102,743 | $98,241 |
Acquisitions/ Adjustments | 27,835 | 6,167 |
Deconsolidation of Subsidiary | -1,274 | |
Effect of Foreign Currency | -1,873 | -391 |
Ending balance, goodwill | 128,705 | 102,743 |
Customer Management Services [Member] | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 19,819 | 20,288 |
Acquisitions/ Adjustments | 6,358 | |
Effect of Foreign Currency | -306 | -469 |
Ending balance, goodwill | 25,871 | 19,819 |
Customer Growth Services [Member] | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 30,128 | 24,439 |
Acquisitions/ Adjustments | 267 | 5,689 |
Ending balance, goodwill | 30,395 | 30,128 |
Customer Technology Services [Member] | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 42,709 | 42,153 |
Acquisitions/ Adjustments | 0 | 478 |
Effect of Foreign Currency | 78 | |
Ending balance, goodwill | 42,709 | 42,709 |
Customer Strategy Services [Member] | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 10,087 | 11,361 |
Acquisitions/ Adjustments | 21,210 | 0 |
Deconsolidation of Subsidiary | -1,274 | |
Effect of Foreign Currency | -1,567 | |
Ending balance, goodwill | $29,730 | $10,087 |
GOODWILL_NARRATIVE_DETAILS
GOODWILL (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Valuation Allowance For Impairment Of Recognized Servicing Assets [Line Items] | |
Method used to calculate fair value of reporting unit that has goodwill at risk | For the annual goodwill impairment analysis, the Company elected to perform a Step 1 evaluation for all of its reporting units, which includes comparing a reporting unit’s estimated fair value to its carrying value. The determination of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term growth rates for the businesses, the useful lives over which the cash flows will occur and determination of appropriate discount rates (based in part on the Company’s weighted average cost of capital). Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. As of December 1, 2014, the date of the annual impairment testing, the Company concluded that the fair values of all reporting units were in excess of their respective carrying values and the goodwill for those reporting units was not impaired. The process of evaluating the fair value of the reporting units is highly subjective and requires significant judgment and estimates as the reporting units operate in a number of markets and geographical regions. We used an income approach to determine our best estimates of fair value which incorporated the following significant assumptions: Revenue projections, including revenue growth during the forecast periods ranging from 3% to 20%; EBITDA margin projections held flat over the forecast periods ranging from 10% to 15%; Estimated income tax rates of 27% to 40%; Estimated capital expenditures ranging from $0.1 million to $24 million; and Discount rates ranging from 12% to 17% based on various inputs, including the risks associated with the specific reporting units as well as their revenue growth and EBITDA margin assumptions. As noted above, the Company has concluded that goodwill for all reporting units was not impaired at December 1, 2014. While no impairment indicators were identified, due to the small margin of fair value in excess of carrying value for two reporting units, Revana (approximately 6.0%) and WebMetro (approximately 11%) , these reporting units remain at considerable risk for future impairment if projected operating results are not met or other inputs into the fair value measurement change. |
WebMetro [Member] | |
Valuation Allowance For Impairment Of Recognized Servicing Assets [Line Items] | |
Fair value of a reporting unit in excess of carrying value expressed as a percentage | 11.00% |
Valuation allowance methodologies and assumptions | If all assumptions are held constant, a 1.5% point increase in the discount rate would result in approximately $2.8 million decrease in the estimated fair value of the WebMetro reporting unit. A 5% annual decrease in the projected revenue over the forecast period would result in a $3.3 million decrease in the estimated fair value of the WebMetro reporting unit. Such a change in either of these assumptions individually would have resulted in the WebMetro reporting unit failing Step 1 of the goodwill impairment analysis at December 1, 2014. |
Revana [Member] | |
Valuation Allowance For Impairment Of Recognized Servicing Assets [Line Items] | |
Fair value of a reporting unit in excess of carrying value expressed as a percentage | 9.00% |
Valuation allowance methodologies and assumptions | If all assumptions are held constant, a 1% increase in the discount rate would result in approximately $4.5 million decrease in the estimated fair value of the Revana reporting unit. A 5% percentage annual decrease in the projected revenue over the forecast period would result in a $9.2 million decrease in the estimated fair value of the Revana reporting unit. Such a change in either of these assumptions individually would have resulted in the Revana reporting unit failing Step 1 of the goodwill impairment analysis at December 1, 2014. |
Technology Solutions Group [Member] | |
Valuation Allowance For Impairment Of Recognized Servicing Assets [Line Items] | |
Goodwill Amount Reporting Unit Where Fair Value Not Substantially In Excess Of Carrying Value | 23 |
Fair value of a reporting unit in excess of carrying value expressed as a percentage | 19.00% |
Valuation allowance methodologies and assumptions | During 2014, the Company identified indicators of impairment for the TSG reporting unit, including lower revenues and profits than had been anticipated at the time of the acquisition and the 2014 budget/forecast. Upon identification of the impairment indicators, we completed a quantitative assessment of goodwill (Step 1 of the goodwill impairment analysis). The carrying value of TSG was $34.1 million at December 1, 2014, including $23.0 million of goodwill. Based on our assessment, the estimated fair value of the TSG reporting unit exceeded its carrying value by approximately 19.0%. The estimate of fair value was based on generally accepted valuation techniques and information available at the date of the assessment, which incorporated management's assumptions about expected revenues and future cash flows and available market information for comparable companies. |
CONTRACT_ACQUISITION_COSTS_CON
CONTRACT ACQUISITION COSTS (CONTRACT ACQUISITION COSTS TABLE) (DETAILS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CONTRACT ACQUISITION COSTS [ABSTRACT] | ||
Contract acquisition costs, gross | $2,415 | $5,278 |
Less: Accumulated amortization | -1,187 | -3,636 |
Contract acquisition costs, net | $1,228 | $1,642 |
CONTRACT_ACQUISITION_COSTS_FUT
CONTRACT ACQUISITION COSTS (FUTURE AMORTIZATION TABLE) (DETAILS) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
CONTRACT ACQUISITION COSTS [ABSTRACT] | |
2015 | $510 |
2016 | 302 |
2017 | 301 |
2018 | 115 |
Total | $1,228 |
CONTRACT_ACQUISITION_COSTS_NAR
CONTRACT ACQUISITION COSTS (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONTRACT ACQUISITION COSTS [ABSTRACT] | |||
Amortization of contract acquisition costs | $856 | $1,160 | $1,017 |
OTHER_INTANGIBLE_ASSETS_SCHEDU
OTHER INTANGIBLE ASSETS (SCHEDULE OF INTANGIBLE ASSETS TABLE) (DETAILS) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, other intangible assets | $54,812 | $54,461 |
Amortization and Impairment | -9,470 | -8,305 |
Acquisitions or Disposals | 15,722 | 9,520 |
Effect of Foreign Currency | -1,159 | -864 |
Ending balance, other intangible assets | 59,905 | 54,812 |
Customer relationships, gross [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, other intangible assets | 50,830 | 46,171 |
Amortization and Impairment | 0 | |
Acquisitions or Disposals | 14,115 | 5,920 |
Effect of Foreign Currency | -1,031 | -1,261 |
Ending balance, other intangible assets | 63,914 | 50,830 |
Customer relationships - accumulated amortization [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, other intangible assets | -13,547 | -8,588 |
Amortization and Impairment | -6,779 | -5,343 |
Effect of Foreign Currency | 0 | 384 |
Ending balance, other intangible assets | -20,326 | -13,547 |
Other intangible assets, gross [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, other intangible assets | 11,634 | 8,021 |
Amortization and Impairment | 0 | |
Acquisitions or Disposals | 1,607 | 3,600 |
Effect of Foreign Currency | -128 | 13 |
Ending balance, other intangible assets | 13,113 | 11,634 |
Other intangible assets - accumulated amortization [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, other intangible assets | -3,818 | -1,943 |
Amortization and Impairment | -2,691 | -1,875 |
Ending balance, other intangible assets | -6,509 | -3,818 |
Trade name - indefinite life [Member] | ||
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ||
Beginning balance, other intangible assets | 9,713 | 10,800 |
Amortization and Impairment | 0 | -1,087 |
Acquisitions or Disposals | 0 | |
Ending balance, other intangible assets | $9,713 | $9,713 |
OTHER_INTANGIBLE_ASSETS_FUTURE
OTHER INTANGIBLE ASSETS (FUTURE AMORTIZATION EXPENSE TABLE) (DETAILS) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
OTHER INTANGIBLE ASSETS [Abstract] | |
2015 | $10,768 |
2016 | 10,403 |
2017 | 9,075 |
2018 | 7,203 |
2019 | 6,027 |
Thereafter | 7,434 |
Total, finite lived intangible assets | $50,910 |
OTHER_INTANGIBLE_ASSETS_NARRAT
OTHER INTANGIBLE ASSETS (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
OTHER INTANGIBLE ASSETS [Abstract] | |||||||||||
Amortization expense related to intangible assets | $9,600,000 | $7,200,000 | $3,700,000 | ||||||||
Weighted Average Useful Life [Line Items] | |||||||||||
Impairment losses | $373,000 | $0 | $0 | $0 | $0 | $0 | $1,205,000 | $0 | $373,000 | $1,205,000 | $2,958,000 |
Customer Strategy Services [Member] | |||||||||||
Weighted Average Useful Life [Line Items] | |||||||||||
Estimated royalty rate | 6.00% | ||||||||||
Growth rate | 7.00% | ||||||||||
Customer relationships | |||||||||||
Weighted Average Useful Life [Line Items] | |||||||||||
Weighted average useful life of intangible assets | 8 years 4 months 0 days | ||||||||||
Other intangible assets | |||||||||||
Weighted Average Useful Life [Line Items] | |||||||||||
Weighted average useful life of intangible assets | 3 years 7 months 0 days |
DERIVATIVES_OCI_ROLLFORWARD_DE
DERIVATIVES (OCI ROLLFORWARD) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
DERIVATIVES [ABSTRACT] | |||
Aggregate unrealized net gain (loss) at beginning of year | ($8,352) | $9,559 | ($5,852) |
Add: Net gain/(loss) from change in fair value of cash flow hedges | -12,121 | -13,721 | 17,748 |
Less: Net (gain)/loss reclassified to earnings from effective hedges | 2,128 | -4,190 | -2,337 |
Aggregate unrealized net gain (loss) at end of period | ($18,345) | ($8,352) | $9,559 |
DERIVATIVES_NOTIONAL_TABLE_DET
DERIVATIVES (NOTIONAL TABLE) (DETAILS) (Forwards) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | NZD | CAD | CAD | CAD | CAD | PHP | PHP | PHP | PHP | MXN | MXN | MXN | MXN | GBP | GBP | NZD | NZD | NZD |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | |||||||||||
Derivative [Line Items] | ||||||||||||||||||||
Notional Amount | $578,957 | $580,076 | 150 | $1,441 | 1,500 | $7,336 | 7,500 | $398,046 | 17,428,000 | $404,638 | 17,355,000 | $179,089 | 2,532,000 | $166,132 | 2,305,500 | $1,853 | £ 1,200 | $381 | 490 | $117 |
% Maturing in the Next 12 Months | 100.00% | 100.00% | 40.00% | 40.00% | 29.70% | 29.70% | 100.00% | 100.00% | ||||||||||||
Contracts Maturing Through | 0 years 6 months 0 days | 0 years 6 months 0 days | 4 years 8 months 0 days | 4 years 8 months 0 days | 4 years 9 months 0 days | 4 years 9 months 0 days | 0 years 7 months 0 days | 0 years 7 months 0 days |
DERIVATIVES_INTEREST_RATE_SWAP
DERIVATIVES (INTEREST RATE SWAPS) (DETAILS) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Interest Rate Swap One [Member] | |
Derivative [Line Items] | |
Notional Amount | $25,000 |
Variable Rate Received | 1 - month LIBOR |
Fixed Rate Paid | 2.55% |
Contract Commencement Date | 1-Apr-12 |
Contract Maturity Date | 1-Apr-16 |
Interest Rate Swap Two [Member] | |
Derivative [Line Items] | |
Notional Amount | 15,000 |
Variable Rate Received | 1 - month LIBOR |
Fixed Rate Paid | 3.14% |
Contract Commencement Date | 1-May-12 |
Contract Maturity Date | 1-May-17 |
Total Interest Rate Swaps [Member] | |
Derivative [Line Items] | |
Notional Amount | $40,000 |
DERIVATIVES_BALANCE_SHEET_CLAS
DERIVATIVES (BALANCE SHEET CLASSIFICATION) (DETAILS) (USD $) | Dec. 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) | ($29,169) | ($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) | 192 | 3,379 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 389 | 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) | -12,680 | -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) | -17,070 | -11,708 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -1,440 | -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) | -988 | -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) | -452 | -1,124 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 792 | -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) | 797 | 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) | -5 | -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) | 0 | -116 |
Not Designated as Hedging Instruments [Member] | Leases Derivative Contract [Member] | Embedded Derivative [Member] | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $0 |
DERIVATIVES_INCOME_STATEMENT_C
DERIVATIVES (INCOME STATEMENT CLASSIFICATION) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other income (expense), net | $9,161 | ($722) | ($965) |
Interest expense | 6,946 | 7,513 | 6,696 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | -11,926 | -13,530 | |
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] | |||
Revenue | -2,429 | 7,973 | |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain or (loss) recognized in other comprehensive income - effective portion, net of tax: | -195 | -191 | |
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 | -1,060 | -1,047 | |
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 | -386 | -6,360 | |
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 | ($116) | $162 |
DERIVATIVES_NARRATIVE_DETAILS
DERIVATIVES (NARRATIVE) (DETAILS) (Fair Value [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value [Member] | ||
Derivative Notional Amount [Line Items] | ||
Notional Amount | $242,500 | $204,500 |
FAIR_VALUE_DERIVATIVES_TABLE_D
FAIR VALUE (DERIVATIVES TABLE) (DETAILS) (USD $) | Dec. 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 | ($29,169) | ($11,485) |
Interest rate swaps | -1,440 | -2,152 |
Fair value hedges | 792 | -718 |
Embedded derivatives | 0 | -116 |
Total net derivative asset (liability) | -29,817 | -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 | -29,169 | -11,485 |
Interest rate swaps | -1,440 | -2,152 |
Fair value hedges | 792 | -718 |
Embedded derivatives | 0 | -116 |
Total net derivative asset (liability) | ($29,817) | ($14,471) |
FAIR_VALUE_FAIR_VALUE_ASSETS_A
FAIR VALUE (FAIR VALUE ASSETS AND LIABILITIES) (DETAILS) (USD $) | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Liabilities [Abstract] | |||
Contingent consideration | ($16,990) | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Money market investments | 0 | 240 | |
Derivative assets, net | 0 | ||
Total assets | 0 | 240 | |
Liabilities [Abstract] | |||
Deferred compensation plan liability | 8,478 | 6,829 | |
Derivative instruments, net | 29,817 | ||
Total liabilities | -38,295 | -21,300 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Liabilities [Abstract] | |||
Contingent consideration | 24,744 | 21,748 | |
Total liabilities | ($24,744) | ($21,748) |
FAIR_VALUE_CONTINGENT_CONSIDER
FAIR VALUE (CONTINGENT CONSIDERATION TABLE) (DETAILS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
BusinessAcquisitionContingentConsiderationLineItems | |||
Beginning balance, contingent consideration | $16,990 | ||
Acquisitions | 18,373 | 2,557 | |
Payments | -9,144 | -1,100 | |
Imputed Interest/ Adjustments | -6,233 | 3,301 | |
Ending balance, contingent consideration | 16,990 | ||
Iknowtion [Member] | |||
BusinessAcquisitionContingentConsiderationLineItems | |||
Beginning balance, contingent consideration | 2,265 | 3,470 | 3,633 |
Payments | -1,400 | -1,100 | |
Imputed Interest/ Adjustments | 195 | 937 | |
Ending balance, contingent consideration | 2,265 | 3,470 | 3,633 |
Guidon [Member] | |||
BusinessAcquisitionContingentConsiderationLineItems | |||
Beginning balance, contingent consideration | 1,000 | 2,637 | 2,200 |
Payments | -1,426 | ||
Imputed Interest/ Adjustments | -211 | 437 | |
Ending balance, contingent consideration | 1,000 | 2,637 | 2,200 |
Technology Solutions Group [Member] | |||
BusinessAcquisitionContingentConsiderationLineItems | |||
Beginning balance, contingent consideration | 0 | 12,933 | 11,157 |
Payments | -5,292 | ||
Imputed Interest/ Adjustments | -7,641 | 1,776 | |
Ending balance, contingent consideration | 0 | 12,933 | 11,157 |
WebMetro [Member] | |||
BusinessAcquisitionContingentConsiderationLineItems | |||
Beginning balance, contingent consideration | 0 | 2,708 | 0 |
Acquisitions | 2,557 | ||
Payments | -1,026 | ||
Imputed Interest/ Adjustments | -1,682 | 151 | |
Ending balance, contingent consideration | 0 | 2,708 | 0 |
Sofica [Member] | |||
BusinessAcquisitionContingentConsiderationLineItems | |||
Beginning balance, contingent consideration | 6,317 | 0 | |
Acquisitions | 3,830 | ||
Imputed Interest/ Adjustments | 2,487 | ||
Ending balance, contingent consideration | 6,317 | 0 | |
rogenSi [Member] | |||
BusinessAcquisitionContingentConsiderationLineItems | |||
Beginning balance, contingent consideration | 15,162 | 0 | |
Acquisitions | 14,543 | ||
Imputed Interest/ Adjustments | 619 | ||
Ending balance, contingent consideration | $15,162 | $0 |
FAIR_VALUE_NARRATIVE_DETAILS
FAIR VALUE (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
FAIR VALUE [Abstract] | |||
Average interest rate on annual borrowings | 1.20% | 1.40% | |
Business Combination Contingent Consideration Liability | $16,990,000 | ||
Future Value of Liabilities Incurred From Business Acquisitions | $25,700,000 |
INCOME_TAXES_SOURCES_OF_PRETAX
INCOME TAXES (SOURCES OF PRE-TAX INCOME TABLE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Sources of pre-tax accounting income | |||
Domestic | $20,569 | $10,816 | ($8,336) |
Foreign | 79,890 | 81,253 | 82,198 |
Income before income taxes | $100,459 | $92,069 | $73,862 |
INCOME_TAXES_PROVISION_TABLE_D
INCOME TAXES (PROVISION TABLE) (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current provision | |||||||||||
Federal current | ($699) | ($320) | ($2,211) | ||||||||
State current | 270 | 150 | -1,013 | ||||||||
Foreign current | 13,957 | 13,876 | 809 | ||||||||
Total current provision | 13,528 | 13,706 | -2,415 | ||||||||
Deferred provision (benefit) | |||||||||||
Federal deferred | 10,148 | 4,674 | 1,215 | ||||||||
State deferred | 423 | 195 | 64 | ||||||||
Foreign deferred | -1,057 | 2,023 | 1,075 | ||||||||
Total deferred provision (benefit) | 9,514 | 6,892 | 2,354 | ||||||||
Total provision for income taxes | $8,971 | $5,778 | $5,417 | $2,876 | $7,995 | $6,358 | $3,854 | $2,391 | $23,042 | $20,598 | ($61) |
INCOME_TAXES_TAX_RATE_RECONCIL
INCOME TAXES (TAX RATE RECONCILIATION TABLE) (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective tax rate reconciliation | |||||||||||
Income tax per U.S. federal statutory rate (35%) | $35,161 | $32,224 | $25,852 | ||||||||
State income taxes, net of federal deduction | 1,525 | 210 | -345 | ||||||||
Change in valuation allowances | 256 | 3,266 | -315 | ||||||||
Foreign income taxes at different rates than the U.S. | -17,824 | -20,529 | -24,507 | ||||||||
Foreign withholding taxes | 257 | 2,504 | 2,876 | ||||||||
Losses in international markets without tax benefits | 1,649 | 779 | 4,329 | ||||||||
Nondeductible compensation under Section 162(m) | 817 | 1,847 | 1,451 | ||||||||
Liabilities for uncertain tax positions | 1,435 | 77 | -2,988 | ||||||||
Permanent difference related to foreign exchange gains | -11 | -122 | -13 | ||||||||
(Income)/losses of foreign branch operations | 225 | 1,447 | -4,263 | ||||||||
Non-taxable earnings of minority interest | -1,141 | -1,172 | -213 | ||||||||
Foreign dividend less foreign tax credits | -1,428 | -2,587 | -2,935 | ||||||||
Increase in deferred tax liability - branch losses in UK | -75 | -954 | -1,012 | ||||||||
Decrease (increase) to deferred tax tasset - change in state tax rate | -443 | -68 | 946 | ||||||||
State income tax credits and net operating losses | -142 | 615 | 709 | ||||||||
Foreign earnings taxed currently in U.S. | 2,696 | 2,907 | 0 | ||||||||
Other | 85 | 154 | 367 | ||||||||
Total provision for income taxes | $8,971 | $5,778 | $5,417 | $2,876 | $7,995 | $6,358 | $3,854 | $2,391 | $23,042 | $20,598 | ($61) |
INCOME_TAXES_DTA_AND_DTL_TABLE
INCOME TAXES (DTA AND DTL TABLE) (DETAILS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Deferred tax assets, gross | ||||
Accrued workers compensation, deferred compensation and employee benefits | $17,030 | $7,866 | ||
Allowance for doubtful accounts, insurance and other accruals | 4,554 | 4,037 | ||
Amortization of deferred rent liabilities | 2,201 | 1,903 | ||
Net operating losses | 11,296 | 11,023 | ||
Equity compensation | 2,997 | 6,566 | ||
Customer acquisition and deferred revenue accruals | 16,241 | 15,228 | ||
Federal and state tax credits, net | 10,621 | 15,886 | ||
Unrealized losses on derivatives | 11,686 | 4,446 | ||
Other | 12,749 | 9,467 | ||
Total deferred tax assets, gross | 89,375 | 76,422 | ||
Valuation allowances | -10,721 | -10,792 | -20,909 | -16,555 |
Total deferred tax assets, net | 78,654 | 65,630 | ||
Deferred tax liabilities | ||||
Long-term lease obligations | 0 | -12 | ||
Depreciation and amortization | -7,035 | 1,067 | ||
Contract acquisition costs | -11,768 | -11,653 | ||
Future losses in UK | -2,530 | -2,606 | ||
Intangible Assets | -7,628 | 0 | ||
Other | -355 | -600 | ||
Total deferred tax liabilities | -29,316 | -13,804 | ||
Net deferred tax assets | $49,338 | $51,826 |
INCOME_TAXES_VALUATION_ALLOWAN
INCOME TAXES (VALUATION ALLOWANCE ROLLFORWARD TABLE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME TAXES [ABSTRACT] | |||
Beginning balance, deferred income tax valuation allowance | $10,792 | $20,909 | $16,555 |
Additions to Deferred Income Tax Expense | 946 | 4,218 | 5,560 |
Reduction of Deferred Income Tax Expense | -1,017 | -14,335 | -1,206 |
Ending balance, deferred income tax valuation allowance | $10,721 | $10,792 | $20,909 |
INCOME_TAXES_OPERATING_LOSS_CA
INCOME TAXES (OPERATING LOSS CARRY FORWARDS TABLE) (DETAILS) (All Tax Jurisdictions, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
All Tax Jurisdictions | |
Expiration of Net Operating Loss Carry Forwards [Line Items] | |
2015 | $0 |
2016 | 1,325 |
2017 | 1,079 |
2018 | 0 |
After 2018 | 4,442 |
No expiration | 3,102 |
Total | $9,948 |
INCOME_TAXES_UNCERTAIN_TAX_BEN
INCOME TAXES (UNCERTAIN TAX BENEFITS TABLE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits Rollforward | |||
Beginning balance, unrecognized tax benefits | $358 | $358 | $2,735 |
Additions for current year tax positions | 1,303 | 0 | 369 |
Reductions in prior year tax positions | 0 | 0 | -2,746 |
Ending balance, unrecognized tax benefits | $1,661 | $358 | $358 |
INCOME_TAXES_JURISDICTIONS_OPE
INCOME TAXES (JURISDICTIONS OPEN TO TAX EXAMINATIONS TABLE) (DETAILS) | 12 Months Ended |
Dec. 31, 2014 | |
United States [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2011 to present |
Argentina [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2009 to present |
Australia [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2010 to present |
Brazil [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2009 to present |
Canada [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2006 to present |
Mexico [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2009 to present |
Philippines [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2012 to present |
Spain [Member] | |
Income Tax Examination [Line Items] | |
Tax Years Ended | 2010 to present |
INCOME_TAXES_NARRATIVE_DETAILS
INCOME TAXES (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2011 | |
Deferred Tax Asset Net [Line Items] | |||||||||||||||
Total deferred tax assets, net | $65,630,000 | $78,654,000 | $65,630,000 | ||||||||||||
Valuation allowances | 10,792,000 | 10,721,000 | 10,792,000 | 20,909,000 | 16,555,000 | ||||||||||
Valuation Allowance [Line Items] | |||||||||||||||
Net Change in Valuation Allowance | 200,000 | 600,000 | 2,000,000 | 400,000 | 300,000 | 900,000 | -100,000 | ||||||||
Tax Credit Carry Forward [Line Items] | |||||||||||||||
Cumulative Amount Foregin Earnings Invested Outside United States | 445,000,000 | ||||||||||||||
Income Tax Holidays Description | The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Costa Rica. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements with an initial period of four years and additional periods for varying years, expiring at various times between 2011 and 2020. | ||||||||||||||
Income Tax Holiday Termination Date | 2011 and 2020 | ||||||||||||||
Aggregate Effect on Income Tax Expense for Income Tax Holiday Jurisdictions | 20,200,000 | 14,600,000 | 20,100,000 | ||||||||||||
Diluted Net Income Per Share Effect For Income Tax Holiday Jurisdictions | $0.27 | $0.28 | $0.36 | ||||||||||||
Total Interest and Penalties Related to Uncertain Tax Positions Recorded in Statements of Comprehensive Income | 132,000 | 77,000 | 40,000 | ||||||||||||
Total Interest and Penalties Accrued Related to Uncertain Tax Positions Recorded in Balance Sheets | 77,000 | 132,000 | 77,000 | ||||||||||||
Reserve for Uncertain Tax Benefits, Net | 1,900,000 | 500,000 | |||||||||||||
Decrease of Unrecognized Tax Benefits over Next 12 Months | 1,900,000 | ||||||||||||||
Federal [Member] | |||||||||||||||
Tax Credit Carry Forward [Line Items] | |||||||||||||||
Tax Credit Carry Forward Amount | 900,000 | 2,300,000 | 2,200,000 | 3,700,000 | 3,500,000 | ||||||||||
Tax Credit Carry Forward Expiration Date | 31-Dec-24 | 31-Dec-23 | 31-Dec-22 | 31-Dec-21 | 31-Dec-20 | ||||||||||
State [Member] | |||||||||||||||
Tax Credit Carry Forward [Line Items] | |||||||||||||||
Tax Credit Carry Forward Amount | 1,800,000 | ||||||||||||||
Tax Credit Carry Forward Expiration Date | 31-Dec-14 | 31-Dec-23 | |||||||||||||
State Tax Credits and NOL [Member] | |||||||||||||||
Valuation Allowance [Line Items] | |||||||||||||||
Net Change in Valuation Allowance | 500,000 | ||||||||||||||
United States [Member] | |||||||||||||||
Deferred Tax Asset Net [Line Items] | |||||||||||||||
Total deferred tax assets, net | 32,300,000 | ||||||||||||||
Significant Change In Unrecognized Tax Benefits From Significant Tax Events [Line Items] | |||||||||||||||
Income tax examination years under audit | 2009, 2011 and 2012 | ||||||||||||||
Foreign Jurisdictions [Member] | |||||||||||||||
Deferred Tax Asset Net [Line Items] | |||||||||||||||
Total deferred tax assets, net | 17,000,000 | ||||||||||||||
Foreign Jurisdictions [Member] | Not Realizable Standard [Member] | |||||||||||||||
Valuation Allowance [Line Items] | |||||||||||||||
Net Change in Valuation Allowance | -300,000 | ||||||||||||||
Canada [Member] | |||||||||||||||
Significant Change In Unrecognized Tax Benefits From Significant Tax Events [Line Items] | |||||||||||||||
Tax Adjustments, Settlements, and Unusual Provisions | 1,200,000 | ||||||||||||||
Income tax examination years under audit | 2009 and 2010 | ||||||||||||||
Argentina [Member] | Not Realizable Standard [Member] | |||||||||||||||
Valuation Allowance [Line Items] | |||||||||||||||
Net Change in Valuation Allowance | 200,000 | ||||||||||||||
Philippines [Member] | Other Increase Decrease [Member] | |||||||||||||||
Valuation Allowance [Line Items] | |||||||||||||||
Net Change in Valuation Allowance | -700,000 | ||||||||||||||
Ghana [Member] | Not Realizable Standard [Member] | |||||||||||||||
Valuation Allowance [Line Items] | |||||||||||||||
Net Change in Valuation Allowance | 200,000 | ||||||||||||||
Netherlands [Member] | |||||||||||||||
Significant Change In Unrecognized Tax Benefits From Significant Tax Events [Line Items] | |||||||||||||||
Tax Adjustments, Settlements, and Unusual Provisions | $1,300,000 | ||||||||||||||
Income tax examination years under audit | 2010 and 2011 |
RESTRUCTURING_CHARGES_AND_IMPA2
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABILITY CLASSIFICATION TABLE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Reduction in force | $3,336 | $4,137 | $22,632 |
Facility exit charges | 14 | 298 | 243 |
Customer Management Services [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reduction in force | 2,182 | 3,832 | 22,371 |
Facility exit charges | 14 | 298 | 243 |
Customer Growth Services [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reduction in force | 56 | 43 | 201 |
Facility exit charges | 0 | 0 | 0 |
Customer Technology Services [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reduction in force | 709 | 73 | 60 |
Facility exit charges | 0 | 0 | 0 |
Customer Strategy Services [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Reduction in force | 389 | 189 | 0 |
Facility exit charges | $0 | $0 | $0 |
RESTRUCTURING_CHARGES_AND_IMPA3
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABLITY ROLLFORWARD TABLE) (DETAILS) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, restructuring reserve | $1,353 | $4,079 |
Expense | 3,456 | 4,650 |
Payments | -2,632 | -7,161 |
Change in estimate | -106 | -215 |
Ending balance, restructuring reserve | 2,071 | 1,353 |
Closure of Delivery Centers [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, restructuring reserve | 0 | 0 |
Expense | 14 | 298 |
Payments | -14 | -298 |
Change in estimate | 0 | 0 |
Ending balance, restructuring reserve | 0 | 0 |
Reduction in Force [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance, restructuring reserve | 1,353 | 4,079 |
Expense | 3,442 | 4,352 |
Payments | -2,618 | -6,863 |
Change in estimate | -106 | -215 |
Ending balance, restructuring reserve | $2,071 | $1,353 |
RESTRUCTURING_CHARGES_AND_IMPA4
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | ||||||
Description of assets subject to impairment | During each of the periods presented, the Company evaluated the recoverability of its leasehold improvement assets at certain delivery centers. | |||||
Method used to determine fair value of assets subject to impairment | To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. | |||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | $2,071,000 | $1,353,000 | $4,079,000 | |||
Payments | -2,632,000 | -7,161,000 | ||||
Spain [Member] | Closure of Delivery Centers [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 400,000 | |||||
Spain [Member] | Reduction in Force [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 14,700,000 | |||||
Customer Management Services [Member] | ||||||
Asset Impairment [Line Items] | ||||||
Impairment of leasehold improvements | 400,000 | 100,000 | 1,200,000 | |||
Customer Growth Services [Member] | ||||||
Asset Impairment [Line Items] | ||||||
Impairment of trade name | 1,800,000 | |||||
Customer Strategy Services [Member] | ||||||
Asset Impairment [Line Items] | ||||||
Impairment of trade name | $1,100,000 |
INDEBTEDNESS_NARRATIVE_DETAILS
INDEBTEDNESS (NARRATIVE) (DETAILS) (USD $) | 5 Months Ended | 12 Months Ended | |
Jun. 03, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
INDEBTEDNESS [ABSTRACT] | |||
Initiation date of current line of credit agreement | 3-Jun-13 | ||
Line of Credit Facility, Rationale for Classification as Long-Term Debt | 5 Year Term | ||
Initial borrowing capacity | $700,000,000 | ||
Maximum borrowing capacity | 1,000,000,000 | ||
Description of line of credit agreement | The Credit Agreement provides for a secured revolving credit facility that matures on June 3, 2018 with an initial maximum aggregate commitment of $700.0 million. At the Company’s discretion, direct borrowing options under the Credit Agreement include (i) Eurodollar loans with one, two, three, and six month terms, and/or (ii) overnight base rate loans. The Credit Agreement also provides for a sub-limit for loans or letters of credit in both U.S. dollars and certain foreign currencies, with direct foreign subsidiary borrowing capabilities up to 50% of the total commitment amount. The Company may increase the maximum aggregate commitment under the Credit Agreement to $1.0 billion if certain conditions are satisfied, including that the Company is not in default under the Credit Agreement at the time of the increase and that the Company obtains the commitment of the lenders participating in the increase. | ||
Borrowings outstanding on credit facility | 100,000,000 | 100,000,000 | |
Average daily utilization under credit facility | 285,900,000 | 238,100,000 | |
Letters of credit issued under credit facility | 3,200,000 | ||
Remaining borrowing capacity under credit facility | $596,800,000 |
DEFERRED_REVENUE_AND_COSTS_DEF
DEFERRED REVENUE AND COSTS (DEFERRED REVENUE CLASSIFICATION TABLE) (DETAILS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DEFERRED REVENUE AND COSTS [ABSTRACT] | ||
Deferred revenue - current | $29,887 | $28,799 |
Deferred revenue - long-term | 18,771 | 9,978 |
Total deferred revenue | $48,658 | $38,777 |
DEFERRED_REVENUE_AND_COSTS_DEF1
DEFERRED REVENUE AND COSTS (DEFERRED COSTS CLASSIFICATION TABLE) (DETAILS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DEFERRED REVENUE AND COSTS [ABSTRACT] | ||
Deferred costs - current | $16,845 | $15,953 |
Deferred costs - long-term | 12,213 | 13,202 |
Total deferred costs | $29,059 | $29,155 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (DETAILS) (NARRATIVE) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Letters of credit issued under credit facility | $3.20 |
Letters of credit issued outside credit facility | $1.30 |
LEASES_FUTURE_MINIMUM_LEASE_PA
LEASES (FUTURE MINIMUM LEASE PAYMENTS TABLE) (DETAILS) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases [Member] | |
Operating Leased Assets Line Items | |
2015 | $43,411 |
2016 | 34,248 |
2017 | 26,505 |
2018 | 18,582 |
2019 | 9,665 |
Thereafter | 3,826 |
Total future minimum lease payments | 136,237 |
Sublease Income [Member] | |
Operating Leased Assets Line Items | |
2015 | -2,234 |
2016 | -2,234 |
2017 | -2,234 |
2018 | -2,470 |
2019 | -2,470 |
Thereafter | -2,675 |
Total future minimum lease payments | ($14,317) |
LEASES_ASSET_RETIREMENT_SCHEDU
LEASES (ASSET RETIREMENT SCHEDULE TABLE) (DETAILS) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligation [Line Items] | ||
Beginning balance, asset retirement obligation | $1,888 | $2,061 |
Additions and modifications | 39 | 0 |
Accretion | 14 | 42 |
Settlements | 0 | -215 |
Ending balance, asset retirement obligation | $1,941 | $1,888 |
LEASES_NARRATIVE_DETAILS
LEASES (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
LEASES [ABSTRACT] | |||
Rent expense recognized, net, under operating leases | $33,200,000 | $33,300,000 | $33,100,000 |
Deferred rent liability | $8,956,000 | $9,635,000 |
MANDATORILY_REDEEMABLE_NONCONT2
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (ROLLFORWARD TABLE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Mandatorily redeemable noncontrolling interest [Line Items] | |||
Mandatorily redeemable noncontrolling interest, January 1 | $2,509 | ||
Net income attributable to mandatorily redeemable noncontrollilng interest | 77,417 | 71,471 | 73,923 |
Dividends distributed to mandatorily redeemable noncontrolling interest | -4,275 | -4,183 | -2,205 |
Transfer from permanent equity | -1,067 | ||
Change in redemption value | -936 | -1,677 | |
Mandatorily redeemable noncontrolling interest, December 31 | 2,814 | 2,509 | |
Iknowtion [Member] | |||
Mandatorily redeemable noncontrolling interest [Line Items] | |||
Mandatorily redeemable noncontrolling interest, January 1 | 2,509 | 1,067 | |
Net income attributable to mandatorily redeemable noncontrollilng interest | 613 | 482 | |
Dividends distributed to mandatorily redeemable noncontrolling interest | -1,244 | -717 | |
Change in redemption value | 936 | 1,677 | |
Mandatorily redeemable noncontrolling interest, December 31 | $2,814 | $2,509 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (ROLLFORWARD TABLE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign Currency Translation Adjustment [Abstract] | |||
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, beginning balance | ($10,581) | $15,673 | $3,156 |
Other comprehensive loss before reclassifications - foreign currency translation adjustment | -22,771 | -26,254 | 12,517 |
Amounts reclassified from accumulated other comprehensive income (loss) - foreign currency translation adjustment | 0 | 0 | 0 |
Net current period other comprehensive income - foreign currency translation adjustment | -22,771 | -26,254 | 12,517 |
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, ending balance | -33,352 | -10,581 | 15,673 |
Derivative Valuation, Net of Tax | |||
Aggregate unrealized net gain (loss) at beginning of year | -8,352 | 9,559 | -5,852 |
Other comprehensive income (loss) before reclassifications - derivative valuation, net of tax | -12,121 | -13,721 | 17,748 |
Amounts reclassified from accumulated other comprehensive income (loss) - derivative valuation, net of tax | 2,128 | -4,190 | -2,337 |
Net current period other comprehensive income - derivative valuation, net of tax | -9,993 | -17,911 | 15,411 |
Aggregate unrealized net gain (loss) at end of period | -18,345 | -8,352 | 9,559 |
Other, Net of Tax | |||
Accumulated other comprehensive income (loss) - other, net of tax | -1,653 | -2,251 | -2,778 |
Other comprehensive income (loss) before reclassifications - other, net of tax | 44 | 29 | -302 |
Amounts reclassified from accumulated other comprehensive income (loss) - other, net of tax | 1,032 | 569 | 829 |
Net current period other comprehensive income - other, net of tax | 1,076 | 598 | 527 |
Accumulated other comprehensive income (loss) - other, net of tax | -577 | -1,653 | -2,251 |
Totals | |||
Accumulated other comprehensive income (loss), beginning balance | -20,586 | 22,981 | -5,474 |
Other comprehensive income before reclassifications - Totals | -34,848 | -39,946 | 29,963 |
Amounts reclassified from accumulated other comprehensive income (loss) - Totals | 3,160 | -3,621 | -1,508 |
Net current period other comprehensive income (loss) | -31,688 | -43,567 | 28,455 |
Accumulated other comprehensive income (loss), ending balance | ($52,274) | ($20,586) | $22,981 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (INCOME STATEMENT CLASSIFICATION TABLE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Presentation of Income Statement Reclassifications [Line Items] | |||
Other Comprehensive Income Loss Reclassified to Income | $3,160 | ($3,621) | ($1,508) |
Net Income (Loss) [Member] | Derivative Valuation [Member] | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Other Comprehensive Income Loss Reclassified to Income | -2,128 | 4,190 | 2,337 |
Net Income (Loss) [Member] | Other Accumulated Other Comprehensive Income Loss [Member] | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Other Comprehensive Income Loss Reclassified to Income | -1,032 | -569 | -829 |
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 | -2,429 | 7,973 | 4,638 |
Loss on Interest Rate Swaps [Member] | Interest Expense [Member] | Derivative Valuation [Member] | |||
Presentation of Income Statement Reclassifications [Line Items] | |||
Other Comprehensive Income Loss Reclassified to Income | -1,060 | -1,047 | -741 |
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 | 1,361 | -2,736 | -1,560 |
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 | 66 | 36 | 53 |
Actuarial Loss on Define 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 | ($1,098) | ($605) | ($882) |
NET_INCOME_PER_SHARE_DILUTED_S
NET INCOME PER SHARE (DILUTED SHARES TABLE) (DETAILS) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||
Shares used in basic earnings per share calculation | 48,714 | 49,093 | 49,351 | 50,045 | 50,439 | 50,732 | 51,861 | 52,347 | 49,297 | 51,338 | 54,738 |
Effect of dilutive securities: | |||||||||||
Stock options | 413 | 417 | 378 | ||||||||
Restricted stock units | 392 | 489 | 424 | ||||||||
Performance-based restricted stock units | 0 | 0 | 0 | ||||||||
Total effects of dilutive securities | 805 | 906 | 802 | ||||||||
Shares used in dilutive earnings per share calculation | 49,514 | 49,940 | 50,111 | 50,973 | 51,465 | 51,678 | 52,628 | 53,217 | 50,102 | 52,244 | 55,540 |
NET_INCOME_PER_SHARE_NARRATIVE
NET INCOME PER SHARE (NARRATIVE) (DETAILS) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Option [Member] | |||
Anti-dilutive options to purchase common stock [Line Items] | |||
Anti-dilutive securities | 0.1 | 0.1 | 0.1 |
Restricted Stock Units (RSUs) [Member] | |||
Anti-dilutive options to purchase common stock [Line Items] | |||
Anti-dilutive securities | 0.2 | 0.2 | 0.8 |
Contingently Issuable Shares [Member] | |||
Anti-dilutive options to purchase common stock [Line Items] | |||
Anti-dilutive securities | 0.1 | 0.1 | 0.1 |
EMPLOYEE_COMPENSATION_PLANS_RS
EMPLOYEE COMPENSATION PLANS (RSU ROLLFORWARD TABLE) (DETAILS) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
RSU Rollforward by Shares | |||
Unvested as of December 31, 2013, shares | 1,973,575 | ||
Granted, shares | 666,656 | ||
Vested, shares | -626,070 | ||
Cancellations/expirations, shares | -191,083 | ||
Unvested as of December 31, 2014, shares | 1,823,078 | 1,973,575 | |
RSU Rollforward by Weighted Average Grant Date Fair Value | |||
Unvested as of December 31, 2013, weighted average grant date fair value | $20.39 | ||
Granted, weighted average grant date fair value | $26.92 | $21.66 | $15.91 |
Vested, weighted average grant date fair value | $19.85 | ||
Cancellations/expirations, weighted average grant date fair value | $19.62 | ||
Unvested as of December 31, 2014, weighted average grant date fair value | $23.02 | $20.39 |
EMPLOYEE_COMPENSATION_PLANS_OP
EMPLOYEE COMPENSATION PLANS (OPTION ASSUMPTIONS TABLE) (DETAILS) | 12 Months Ended |
Dec. 31, 2011 | |
Stock Option Fair Value Assumptions [Line Items] | |
Risk-free interest rate | 2.10% |
Expected life in years | 2 years 0 months 0 days |
Expected volatility | 54.40% |
Dividend yield | 0.00% |
Weighted-average volatility | 54.40% |
EMPLOYEE_COMPENSATION_PLANS_OP1
EMPLOYEE COMPENSATION PLANS (OPTIONS ROLLFORWARD TABLE) (DETAILS) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock Option Rollforward by Shares | ||
Outstanding as of December 31, 2013, shares | 1,220,474 | |
Exercises, shares | -53,100 | |
Post-vest cancellations/expirations, shares | -15,375 | |
Outstanding as of December 31, 2014, shares | 1,151,999 | 1,220,474 |
Vested and exercisable as of December 31, 2014, shares | 1,001,999 | |
Stock Option Rollforward by Weighted Average Exercise Price | ||
Outstanding as of December 31, 2013, weighted average exercise price | $13.43 | |
Exercises, weighted average exercise price | $9.60 | |
Post-vest cancellations/expirations, weighted average exercise price | $8.90 | |
Outstanding as of December 31, 2014, weighted average exercise price | $13.67 | $13.43 |
Vested and exercisable as of December 31, 2014, weighted average exercise price | $13.12 | |
Weighted Average Contract Term In Years [Abstract] | ||
Outstanding as of December 31, 2014, weighted average remaining contract term in years | 1 year 9 months 0 days | |
Vested and exercisable as of December 31, 2014, weighted average remaining contract term in years | 1 year 2 months 0 days | |
Aggregate Intrinsic Value [Abstract] | ||
Outstanding as of December 31, 2014, aggregate intrinsic value | $11,540 | |
Vested and exercisable as of December 31, 2014, aggregate intrinsic value | $10,584 |
EMPLOYEE_COMPENSATION_PLANS_NA
EMPLOYEE COMPENSATION PLANS (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
EMPLOYEE COMPENSATION PLANS [Abstract] | ||||
Company Match on US Defined Contribution Plans | $4,800,000 | $4,200,000 | $3,000,000 | |
Shares Authorized under Current Equity Compensation Plan | 4,000,000 | |||
Shares Available for Issuance under Current Equity Compensation Plan | 1,200,000 | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 11,307,000 | 13,234,000 | 13,376,000 | |
Total Tax Benefit Recognized for Equity-Based Compensation Expense | 6,300,000 | 5,800,000 | 5,700,000 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value | $26.92 | $21.66 | $15.91 | |
Intrinsic Value of RSUs Vested | 12,400,000 | 12,300,000 | 15,500,000 | |
Intrinsic Value of Non-Vested RSUs | 42,400,000 | |||
Intrinsic Value of Options Exercised | 800,000 | 1,000,000 | 600,000 | |
Fair Value of Shares Vested | 0 | 0 | 0 | |
Proceeds from exercise of stock options | 443,000 | 862,000 | 1,374,000 | |
Recognized Tax Benefit from Exercise of Stock Options | 300,000 | 400,000 | 200,000 | |
Stock Option [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Unrecognized Compensation Expense | 20,000 | |||
Requisite Service Period | 2 years 1 month 0 days | |||
Stock Option [Member] | Key Employee 1 [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Options Granted to Key Employees | 150,000 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Unrecognized Compensation Expense | 27,600,000 | |||
Requisite Service Period | 1 year 6 months 0 days | |||
Restricted Stock Units (RSUs) [Member] | Key Employee 1 [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Options Granted to Key Employees | 100,000 | |||
Restricted Stock Units (RSUs) [Member] | Key Employee 2 [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Options Granted to Key Employees | 8,394 | |||
Cost of Services [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 2,300,000 | 2,200,000 | 1,900,000 | |
Selling General And Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $9,000,000 | $11,100,000 | $11,500,000 |
STOCK_REPURCHASE_PROGRAM_NARRA
STOCK REPURCHASE PROGRAM (NARRATIVE) (DETAILS) (USD $) | 2 Months Ended | 12 Months Ended | 146 Months Ended | ||
Feb. 28, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
STOCK REPURCHASE PROGRAM [ABSTRACT] | |||||
Cumulative Authorized Share Repurhcase Allowance | $637,300,000 | ||||
Treasury Stock Purchases, Shares | 212,100 | 42,100,000 | |||
Cost of Treasury Stock Purchases | 4,700,000 | -57,074,000 | -56,532,000 | -81,243,000 | 625,500,000 |
Remaining Allowance Stock Repurchase Program | 11,800,000 | ||||
Purchases of common stock, share | 212,100 | 42,100,000 | |||
Purchases of common stock, value | $4,700,000 | ($57,074,000) | ($56,532,000) | ($81,243,000) | $625,500,000 |
RELATED_PARTY_TRANSACTIONS_NAR
RELATED PARTY TRANSACTIONS (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Avion [Member] | |||
Related Party Transaction Line Items | |||
Purchases from Related Party | $1,000 | $600 | $900 |
Accounts Payable Due from Related Party | 30 | ||
Conversent [Member] | |||
Related Party Transaction Line Items | |||
Purchases from Related Party | $20 |
OTHER_FINANCIAL_INFORMATION_SE
OTHER FINANCIAL INFORMATION (SELF INSURANCE LIABILITIES TABLE) (DETAILS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
OTHER FINANCIAL INFORMATION [ABSTRACT] | ||
Worker's compensation | $2,007 | $1,649 |
Employee health and dental insurance | 4,769 | 3,633 |
Other insurance | 1,068 | 631 |
Total self insurance liabilities | $7,844 | $5,913 |
DECONSOLIDATION_OF_A_SUBSIDIAR1
DECONSOLIDATION OF A SUBSIDIARY (NARRATIVE) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
DECONSOLIDATION OF SUBSIDIARY [ABSTRACT] | |||
Description of Loss Of Control in Noncontrolling Interest | During the second quarter of 2013, the Company concluded that it no longer had controlling influence over Peppers & Rogers Gulf WLL (“PRG Kuwait”), a once consolidated subsidiary in the CSS segment, because the Company was no longer confident that it could exercise its beneficial ownership rights. | ||
Loss on deconsolidation of subsidiary | $0 | ($3,655) | $0 |
SUBSEQUENT_EVENTS_NARRATIVE_DE
SUBSEQUENT EVENTS (NARRATIVE) (DETAILS) (USD $) | 2 Months Ended | 3 Months Ended | |
Feb. 24, 2015 | Mar. 06, 2015 | Mar. 16, 2015 | |
SUBSEQUENT EVENTS [ABSTRACT] | |||
Subsequent Event Assignment | On February 24, 2015, our Board of Directors adopted a dividend policy, with the intent to distribute a periodic cash dividend to stockholders of our common stock, after consideration of, among other things, TeleTech’s performance, cash flows, capital needs and liquidity factors. Given our cash flow generation and balance sheet strength, we believe cash dividends and early returns to shareholders through share repurchases, in balance with our investments in innovation and strategic acquisitions, align shareholder interests with the needs of the Company. The initial dividend of $0.18 per common share will be paid on March 16, 2015 to shareholders of record as of March 6, 2015. | ||
Dividends Common Stock Cash | $0.18 | ||
Dividends Payable Date Declared | 16-Mar-15 | ||
Dividends Payable Date Of Record | 6-Mar-15 |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (QUARTERLY FINANCIALS TABLE) (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
QUARTERLY FINANCIAL DATA (UNAUDITED) [ABSTRACT] | |||||||||||
Revenue | $338,170 | $305,900 | $295,490 | $302,221 | $318,087 | $296,995 | $289,692 | $288,383 | $1,241,781 | $1,193,157 | $1,162,981 |
Cost of services | -240,146 | -220,244 | -212,315 | -213,787 | -220,942 | -208,648 | -208,809 | -208,232 | -886,492 | -846,631 | -834,803 |
Selling, general and administrative | -50,537 | -49,847 | -47,802 | -50,367 | -51,343 | -50,165 | -46,168 | -45,747 | -198,553 | -193,423 | -182,634 |
Depreciation and amortization | -15,386 | -13,893 | -14,089 | -13,170 | -12,783 | -11,463 | -11,263 | -10,555 | -56,538 | -46,064 | -41,166 |
Restructuring charges, net | -1,600 | -593 | -617 | -540 | -254 | -758 | -2,572 | -851 | -3,350 | -4,435 | -22,875 |
Impairment losses | -373 | 0 | 0 | 0 | 0 | 0 | -1,205 | 0 | -373 | -1,205 | -2,958 |
Income from operations | 30,128 | 21,323 | 20,667 | 24,357 | 32,765 | 25,961 | 19,675 | 22,998 | 96,475 | 101,399 | 78,545 |
Other income (expense) | 2,138 | -856 | 2,880 | -178 | -3,793 | -434 | -3,099 | -2,004 | 3,984 | -9,330 | -4,683 |
(Provision for) benefit from income taxes | -8,971 | -5,778 | -5,417 | -2,876 | -7,995 | -6,358 | -3,854 | -2,391 | -23,042 | -20,598 | 61 |
Net income attributable to noncontrolling interest | -1,329 | -1,442 | -1,268 | -1,085 | -1,508 | -1,526 | -407 | -642 | -5,124 | -4,083 | -3,908 |
Net income attributable to TeleTech stockholders | $21,966 | $13,247 | $16,862 | $20,218 | $19,469 | $17,643 | $12,315 | $17,961 | $72,293 | $67,388 | $70,015 |
Weighted average shares outstanding | |||||||||||
Basic | 48,714 | 49,093 | 49,351 | 50,045 | 50,439 | 50,732 | 51,861 | 52,347 | 49,297 | 51,338 | 54,738 |
Diluted | 49,514 | 49,940 | 50,111 | 50,973 | 51,465 | 51,678 | 52,628 | 53,217 | 50,102 | 52,244 | 55,540 |
Net income per share attributable to TeleTech stockholders | |||||||||||
Basic | $0.45 | $0.27 | $0.34 | $0.40 | $0.39 | $0.35 | $0.24 | $0.34 | $1.47 | $1.31 | $1.28 |
Diluted | $0.44 | $0.27 | $0.34 | $0.40 | $0.38 | $0.34 | $0.23 | $0.34 | $1.44 | $1.29 | $1.26 |
QUARTERLY_FINANCIAL_DATA_UNAUD3
QUARTERLY FINANCIAL DATA (UNAUDITED) (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 |
QUARTERLY FINANCIAL DATA (UNAUDITED) [ABSTRACT] | |||||||||
Benefit to Income Taxes from Relase of Uncertain Tax Positions | $1.20 | ||||||||
Net Change in Valuation Allowance | 0.2 | 0.6 | 2 | 0.4 | 0.3 | 0.9 | -0.1 | ||
Benefit to Income Taxes Related to Return to Provision Adjustments | 0.7 | 0.3 | 0.5 | 0.6 | |||||
Benefit to Income Taxes Related to Restructuring Charges | 0.6 | 0.2 | 0.2 | 0.2 | 0.1 | 0.3 | 1.2 | 0.2 | |
Income Tax Expense Netherlands Audit | 1.3 | ||||||||
Income Tax Expense Future Value Contingent Payments | $1.60 | $0.70 | $1.60 | $1.60 |