Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | 4-May-15 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TELETECH HOLDINGS INC | ||
Entity Central Index Key | 1013880 | ||
Document Type | 10-Q | ||
Document Period End Date | 31-Mar-15 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | Q1 | ||
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 | 48,444,321 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $65,714 | $77,316 |
Accounts receivable, net | 295,719 | 276,432 |
Prepaids and other current assets | 66,609 | 64,702 |
Deferred tax assets, net | 22,783 | 22,501 |
Income tax receivable | 4,638 | 4,532 |
Total current assets | 455,463 | 445,483 |
Long-term assets | ||
Property, plant and equipment, net | 150,017 | 150,212 |
Goodwill | 127,588 | 128,705 |
Deferred tax assets, net | 30,035 | 31,512 |
Other intangible assets, net | 56,528 | 59,905 |
Other long-term assets | 44,852 | 36,658 |
Total long-term assets | 409,020 | 406,992 |
Total assets | 864,483 | 852,475 |
Current liabilities | ||
Accounts payable | 31,785 | 37,019 |
Accrued employee compensation and benefits | 69,492 | 70,069 |
Other accrued expenses | 32,969 | 34,430 |
Income taxes payable | 9,298 | 10,141 |
Deferred tax liabilities, net | 34 | 0 |
Deferred revenue | 29,440 | 29,887 |
Other current liabilities | 17,610 | 17,085 |
Total current liabilities | 190,628 | 198,631 |
Long-term liabilities | ||
Line of credit | 126,000 | 100,000 |
Deferred tax liabilities, net | 2,866 | 4,675 |
Deferred rent | 9,589 | 8,956 |
Other long-term liabilities | 77,248 | 74,149 |
Total long-term liabilities | 215,703 | 187,780 |
Total liabilities | 406,331 | 386,411 |
Commitments and contingencies (Note 10) | ||
Mandatorily redeemable noncontrolling interest | 3,411 | 2,814 |
Stockholders' equity | ||
Preferred stock - $0.01 par value: 10,000,000 shares authorized; zero shares outstanding as of March 31, 2015 and December 31, 2014 | 0 | 0 |
Common stock - $0.01 par value; 150,000,000 shares authorized; 48,366,272 and 48,452,852 shares outstanding as of March 31, 2015 and December 31, 2014, respectively | 484 | 485 |
Additional paid-in capital | 355,779 | 356,792 |
Treasury stock at cost: 33,656,804 and 33,599,401 shares as of March 31, 2015 and December 31, 2014, respectively | -530,818 | -527,595 |
Accumulated other comprehensive income (loss) | -66,020 | -52,274 |
Retained earnings | 687,497 | 677,859 |
Noncontrolling interest | 7,819 | 7,983 |
Total stockholders' equity | 454,741 | 463,250 |
Total liabilities and stockholders' equity | $864,483 | $852,475 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 48,366,272 | 48,452,852 |
Treasury stock, shares | 33,656,804 | 33,599,401 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Comprehensive Income | ||
Revenue | $325,521 | $302,221 |
Operating expenses | ||
Cost of services | 232,984 | 213,787 |
Selling, general and administrative | 50,237 | 50,367 |
Depreciation and amortization | 15,363 | 13,170 |
Restructuring charges, net | 809 | 540 |
Total operating expenses | 299,393 | 277,864 |
Income from operations | 26,128 | 24,357 |
Other income (expense) | ||
Interest income | 317 | 511 |
Interest expense | -1,698 | -1,690 |
Other income (expense), net | -307 | 1,001 |
Total other income (expense) | -1,688 | -178 |
Income before income taxes | 24,440 | 24,179 |
Benefit from (provision for) income taxes | -4,405 | -2,876 |
Net income | 20,035 | 21,303 |
Net income attributable to noncontrolling interest | -1,263 | -1,085 |
Net income attributable to TeleTech stockholders | 18,772 | 20,218 |
Other comprehensive income (loss) | ||
Foreign currency translation adjustments | -11,283 | -1,723 |
Derivative valuation, gross | -1,645 | -3,917 |
Derivative valuation, tax effect | 1,493 | 1,382 |
Other, net of tax | -2,595 | 276 |
Total other comprehensive income (loss) | -14,030 | -3,982 |
Total comprehensive income (loss) | 6,005 | 17,321 |
Less: Comprehensive income attributable to noncontrolling interest | -806 | -992 |
Comprehensive income attributable to TeleTech stockholders | $5,199 | $16,329 |
Weighted average shares outstanding | ||
Basic | 48,370 | 50,045 |
Diluted | 49,158 | 50,973 |
Net income per share attributable to TeleTech stockholders | ||
Basic | $0.39 | $0.40 |
Diluted | $0.38 | $0.40 |
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, 2014 | $463,250 | $0 | $485 | ($527,595) | $356,792 | ($52,274) | $677,859 | $7,983 |
Preferred stock beginning balance, share at Dec. 31, 2014 | 0 | 0 | ||||||
Common stock beginning balance, share at Dec. 31, 2014 | 48,452,852 | 48,453 | ||||||
Net income | 20,035 | 18,772 | ||||||
Net income excluding mandatorily redeemable noncontrolling interest | 19,862 | 1,090 | ||||||
Dividends to shareholders | -8,710 | -8,710 | 0 | |||||
Adjustments to redemption value of mandatorily redeemable noncontrolling interest | -424 | -424 | ||||||
Dividends distributed to noncontrolling interest | -990 | -990 | ||||||
Foreign currency translation adjustments | -11,283 | -10,999 | -284 | |||||
Derivatives valuation, net of tax | -152 | -152 | ||||||
Vesting of restricted stock units, share | 159 | |||||||
Vesting of restricted stock units, value | -1,308 | 2 | 2,456 | -3,766 | ||||
Exercise of stock options, share | 15 | |||||||
Exercise of stock options, value | 234 | 233 | 1 | |||||
Excess tax benefit from equity-based awards | 111 | 111 | ||||||
Equity-based compensation expense | 2,661 | 2,641 | 20 | |||||
Purchases of common stock, share | -261 | |||||||
Purchases of common stock, value | -5,915 | -3 | -5,912 | |||||
Other, net of tax | -2,595 | -2,595 | ||||||
Ending balance,value at Mar. 31, 2015 | $454,741 | $0 | $484 | ($530,818) | $355,779 | ($66,020) | $687,497 | $7,819 |
Preferred stock ending balance, share at Mar. 31, 2015 | 0 | 0 | ||||||
Common stock ending balance, share at Mar. 31, 2015 | 48,366,272 | 48,366 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income | $20,035 | $21,303 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,363 | 13,170 |
Amortization of contract acquisition costs | 281 | 358 |
Amortization of debt issuance costs | 178 | 170 |
Imputed interest expense and fair value adjustments to contingent consideration | 209 | 200 |
Provision for doubtful accounts | 53 | 113 |
Gain on disposal of assets | -35 | 0 |
Deferred income taxes | -1,479 | 990 |
Excess tax benefit from equity-based awards | -409 | -788 |
Equity-based compensation expense | 2,690 | 3,160 |
Gain on foreign currency derivatives | 87 | -634 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | -24,821 | -8,092 |
Prepaids and other assets | 1,849 | 1,618 |
Accounts payable and accrued expenses | -7,583 | -10,817 |
Deferred revenue and other liabilities | -2,598 | -7,214 |
Net cash provided by operating activities | 3,820 | 13,537 |
Cash flows from investing activities | ||
Proceeds from sale of long lived assets | 0 | 135 |
Purchases of property, plant and equipment, net of acquisitions | -13,038 | -15,095 |
Investment in securities | -9,000 | 0 |
Acquisitions, net of cash acquired of zero and $812, respectively | -102 | -8,160 |
Net cash used in investing activities | -22,140 | -23,120 |
Cash flows from financing activities | ||
Proceeds from line of credit | 573,800 | 632,900 |
Payments on line of credit | -547,800 | -632,900 |
Payments on other debt | -778 | -1,525 |
Payments of contingent consideration related to acquisitions | -1,000 | -2,189 |
Dividends to shareholders | 8,710 | 0 |
Dividends distributed to noncontrolling interest | -990 | -990 |
Proceeds from exercise of stock options | 234 | 12 |
Excess tax benefit from equity-based awards | 409 | 788 |
Purchase of treasury stock | -5,915 | -20,466 |
Net cash used in financing activities | 9,250 | -24,370 |
Effect of exchange rate changes on cash and cash equivalents | -2,532 | -3,687 |
(Decrease) increase in cash and cash equivalents | -11,602 | -37,640 |
Cash and cash equivalents, beginning of period | 77,316 | 158,017 |
Cash and cash equivalents, end of period | 65,714 | 120,377 |
Supplemental disclosures | ||
Cash paid for interest | 1,340 | 982 |
Cash paid for income taxes | 2,803 | 2,834 |
Non-cash investing and financing activities | ||
Acquisition of equipment through increase in accounts payable | 1,704 | 941 |
Contract acquisition costs credited to accounts receivable | $0 | $1,000 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from investing activities | ||
Acquisitions, net of cash acquired of zero and $812, respectively | $0 | $812 |
OVERVIEW_AND_BASIS_OF_PRESENTA
OVERVIEW AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
OVERVIEW AND BASIS OF PRESENTATION | (1) OVERVIEW AND BASIS OF PRESENTATION |
Summary of Business | |
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 44,000 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, Ireland, Israel, Lebanon, Macedonia, Mexico, New Zealand, the Philippines, Poland, Singapore, South Africa, 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, and its 80% interest in iKnowtion, LLC. All intercompany balances and transactions have been eliminated in consolidation. | |
The unaudited Consolidated Financial Statements do not include all of the disclosures required by accounting principles generally accepted in the U.S. (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited Consolidated Financial Statements reflect all adjustments which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company and the consolidated results of operations and comprehensive income (loss) and the consolidated cash flows of the Company. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
These unaudited Consolidated Financial Statements should be read in conjunction with the Company's audited Consolidated financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. | |
Use of Estimates | |
The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including 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. | |
Recently Issued Accounting Pronouncements | |
In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. ASU 2015-03 requires all costs incurred in connection with the issuance of debt to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. This ASU is effective for interim and annual periods beginning on or after December 15, 2015 and early adoption is permitted. The Company is evaluating when it will adopt the standard but does not expect the adoption of this standard to have a material impact on its financial position, results of operation or related disclosures. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended | |||
Mar. 31, 2015 | ||||
ACQUISITIONS [ABSTRACT] | ||||
ACQUISITIONS | (2) ACQUISITIONS & INVESTMENTS | |||
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 $34.4 million, subject to certain working capital adjustments, and consists of $18.1 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 7). As of March 31, 2015, the fair value of the contingent consideration was $15.3 million, of which $11.3 million and $4.0 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 | 2,880 | |||
Property, plant and equipment | 578 | |||
Deferred tax assets, net | 449 | |||
Customer relationships | 9,348 | |||
Goodwill | 20,927 | |||
43,269 | ||||
Accounts payable | 708 | |||
Accrued employee compensation and benefits | 2,203 | |||
Accrued expenses | 1,146 | |||
Other | 4,843 | |||
8,900 | ||||
Total purchase price | $ | 34,369 | ||
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 7). As of March 31, 2015, the fair value of the contingent consideration was $6.4 million, of which $3.6 million and $2.8 million were included in Other accrued expenses and Other long-term liabilities in the accompanying Consolidated Balance Sheets, respectively. | ||||
Financial Impact of Acquired Businesses | ||||
The acquired businesses purchased in 2014 noted above contributed revenues of $12.5 million and income from operations of $1.1 million, inclusive of $0.7 million of acquired intangible amortization, to the Company for the three months ended March 31, 2015. | ||||
Investments | ||||
CaféX | ||||
In the first quarter of 2015, the Company invested $9.0 million in CafeX Communications, Inc. (“CafeX”) through the purchase of a portion of the Series B Preferred Stock of CafeX. After the transaction, the Company owns 17.3% of the total equity of CafeX. CaféX is a provider of omni-channel web-based real time communication (WebRTC) solutions that enhance mobile applications and websites with in-app video communication and screen share technology to increase customer satisfaction and enterprise efficiency. TeleTech anticipates deploying the CafeX technology as part of the TeleTech customer experience offerings within the CMS business segment and as part of its Humanify platform. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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): | ||||||||||||||||
Quarter Ended March 31, 2015 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 243,009 | $ | - | $ | 243,009 | $ | 10,797 | $ | 21,702 | ||||||
Customer Growth Services | 25,956 | - | 25,956 | 1,485 | 26 | |||||||||||
Customer Technology Services | 35,721 | -7 | 35,714 | 2,164 | 2,009 | |||||||||||
Customer Strategy Services | 20,842 | - | 20,842 | 917 | 2,391 | |||||||||||
Total | $ | 325,528 | $ | -7 | $ | 325,521 | $ | 15,363 | $ | 26,128 | ||||||
Quarter Ended March 31, 2014 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 227,924 | $ | - | $ | 227,924 | $ | 9,465 | $ | 20,823 | ||||||
Customer Growth Services | 28,905 | - | 28,905 | 1,556 | 1,770 | |||||||||||
Customer Technology Services | 32,779 | -3 | 32,776 | 1,715 | 311 | |||||||||||
Customer Strategy Services | 12,616 | - | 12,616 | 434 | 1,453 | |||||||||||
Total | $ | 302,224 | $ | -3 | $ | 302,221 | $ | 13,170 | $ | 24,357 | ||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Capital Expenditures | ||||||||||||||||
Customer Management Services | $ | 9,447 | $ | 9,912 | ||||||||||||
Customer Growth Services | 1,305 | 380 | ||||||||||||||
Customer Technology Services | 2,282 | 4,631 | ||||||||||||||
Customer Strategy Services | 4 | 172 | ||||||||||||||
Total | $ | 13,038 | $ | 15,095 | ||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
Total Assets | ||||||||||||||||
Customer Management Services | $ | 533,622 | $ | 514,957 | ||||||||||||
Customer Growth Services | 83,240 | 88,394 | ||||||||||||||
Customer Technology Services | 158,822 | 159,441 | ||||||||||||||
Customer Strategy Services | 88,799 | 89,683 | ||||||||||||||
Total | $ | 864,483 | $ | 852,475 | ||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
Goodwill | ||||||||||||||||
Customer Management Services | $ | 25,410 | $ | 25,871 | ||||||||||||
Customer Growth Services | 30,395 | 30,395 | ||||||||||||||
Customer Technology Services | 42,709 | 42,709 | ||||||||||||||
Customer Strategy Services | 29,074 | 29,730 | ||||||||||||||
Total | $ | 127,588 | $ | 128,705 | ||||||||||||
The following table presents revenue based upon the geographic location where the services are provided (in thousands): | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
United States | $ | 171,653 | $ | 146,469 | ||||||||||||
Philippines | 84,987 | 86,666 | ||||||||||||||
Latin America | 40,554 | 42,046 | ||||||||||||||
Europe / Middle East / Africa | 19,313 | 19,217 | ||||||||||||||
Asia Pacific | 7,674 | 6,400 | ||||||||||||||
Canada | 1,340 | 1,423 | ||||||||||||||
Total Revenue | $ | 325,521 | $ | 302,221 | ||||||||||||
SIGNIFICANT_CLIENTS_AND_OTHER_
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS | 3 Months Ended |
Mar. 31, 2015 | |
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS [Abstract] | |
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS | (4) SIGNIFICANT CLIENTS and other concentrations |
The Company had one client that contributed in excess of 10% of total revenue for the three months ended March 31, 2015 and 2014. This client operates in the communications industry and is included in the Customer Management Services segment. This client contributed 10.9% and 11.6% of total revenue for the three months ended March 31, 2015 and 2014, respectively. This client had an outstanding receivable balance of $37.6 million and $32.3 million as of March 31, 2015 and 2014, respectively. | |
The loss of one or more of its significant clients could have a material adverse effect on the Company's business, operating results, or financial condition. The Company does not require collateral from its clients. To limit the Company's credit risk, management performs periodic credit evaluations of its clients and maintains allowances for uncollectible accounts and may require pre-payment for services. Although the Company is impacted by economic conditions in various industry segments, management does not believe significant credit risk existed as of March 31, 2015. |
GOODWILL
GOODWILL | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
GOODWILL [ABSTRACT] | ||||||||||||||||
GOODWILL | (5) GOODWILL | |||||||||||||||
Goodwill consisted of the following (in thousands): | ||||||||||||||||
31-Dec-14 | Acquisitions/ Adjustments | Impairments | Effect of Foreign Currency | 31-Mar-15 | ||||||||||||
Customer Management Services | $ | 25,871 | $ | - | $ | - | $ | -461 | $ | 25,410 | ||||||
Customer Growth Services | 30,395 | - | - | - | 30,395 | |||||||||||
Customer Technology Services | 42,709 | - | - | - | 42,709 | |||||||||||
Customer Strategy Services | 29,730 | 68 | - | -724 | 29,074 | |||||||||||
Total | $ | 128,705 | $ | 68 | $ | - | $ | -1,185 | $ | 127,588 | ||||||
The Company performs a goodwill impairment assessment on at least an annual basis. The Company conducts its annual goodwill impairment assessment during the fourth quarter, or more frequently, if indicators of impairment exist. | ||||||||||||||||
The Company 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%) 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. | ||||||||||||||||
At March 31, 2015, the Company updated its quantitative assessment of these reporting units fair value using an income based approach. 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 March 31, 2015, the updated fair values continue to exceed the carrying values for Revana (approximately 12%) and WebMetro (approximately 17%). The Company will continue to review the calculated fair value of these reporting units until the fair value is substantially in excess of its carrying value. |
DERIVATIVES
DERIVATIVES | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
DERIVATIVES [ABSTRACT] | ||||||||||||||
DERIVATIVES | (6) DERIVATIVES | |||||||||||||
Cash Flow Hedges | ||||||||||||||
The Company enters into foreign exchange and interest rate related derivatives. Foreign exchange derivatives entered into consist of forward and option contracts to reduce the Company's exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Interest rate derivatives consist of interest rate swaps to reduce the Company's exposure to interest rate fluctuations associated with its variable rate debt. Upon proper qualification, these contracts are designated as cash flow hedges. It is the Company's policy to only enter into derivative contracts with investment grade counterparty financial institutions, and correspondingly, the fair value of derivative assets consider, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company's creditworthiness. As of March 31, 2015, the Company had not experienced, nor does it anticipate, any issues related to derivative counterparty defaults. The following table summarizes the aggregate unrealized net gain or loss in Accumulated other comprehensive income (loss) for the three months ended March 31, 2015 and 2014 (in thousands and net of tax): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Aggregate unrealized net gain/(loss) at beginning of year | $ | -18,345 | $ | -8,352 | ||||||||||
Add: Net gain/(loss) from change in fair value of cash flow hedges | -1,291 | -3,649 | ||||||||||||
Less: Net (gain)/loss reclassified to earnings from effective hedges | 1,139 | 1,115 | ||||||||||||
Aggregate unrealized net gain/(loss) at end of period | $ | -18,497 | $ | -10,886 | ||||||||||
The Company's foreign exchange cash flow hedging instruments as of March 31, 2015 and December 31, 2014 are summarized as follows (in thousands). All hedging instruments are forward contracts. | ||||||||||||||
As of March 31, 2015 | Local Currency Notional Amount | U.S. Dollar Notional Amount | % Maturing in the Next 12 Months | Contracts Maturing Through | ||||||||||
Canadian Dollar | 750 | $ | 719 | 100 | % | Jun-15 | ||||||||
Philippine Peso | 17,063,000 | 386,570 | (1) | 36.8 | % | Feb-20 | ||||||||
Mexican Peso | 2,528,000 | 176,073 | 28.5 | % | Feb-20 | |||||||||
$ | 563,362 | |||||||||||||
As of December 31, 2014 | Local Currency Notional Amount | U.S. Dollar Notional Amount | ||||||||||||
Canadian Dollar | 1,500 | $ | 1,441 | |||||||||||
Philippine Peso | 17,428,000 | 398,046 | (1) | |||||||||||
Mexican Peso | 2,532,000 | 179,089 | ||||||||||||
New Zealand Dollar | 490 | 381 | ||||||||||||
$ | 578,957 | |||||||||||||
(1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on March 31, 2015 and December 31, 2014. | ||||||||||||||
The Company's interest rate swap arrangements as of March 31, 2015 and December 31, 2014 were as follows: | ||||||||||||||
Notional Amount | Variable Rate Received | Fixed Rate Paid | Contract Commencement Date | Contract Maturity Date | ||||||||||
As of March 31, 2015 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | |||||||
and December 31, 2014 | 15 million | 1 - month LIBOR | 3.14 | % | May-12 | May-17 | ||||||||
$ | 40 million | |||||||||||||
Fair Value Hedges | ||||||||||||||
The Company enters into foreign exchange forward contracts to economically hedge against foreign currency exchange gains and losses on certain receivables and payables of the Company's foreign operations. Changes in the fair value of derivative instruments designated as fair value hedges are recognized in earnings in Other income (expense), net. As of March 31, 2015 and December 31, 2014 the total notional amount of the Company's forward contracts used as fair value hedges were $262.6 million and $242.5 million, respectively. | ||||||||||||||
Derivative Valuation and Settlements | ||||||||||||||
The Company's derivatives as of March 31, 2015 and December 31, 2014 were as follows (in thousands): | ||||||||||||||
31-Mar-15 | ||||||||||||||
Designation: | Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||
Derivative contract type: | Foreign Exchange | Interest Rate | Foreign Exchange | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Fair Value | |||||||||||
Fair value and location of derivative in the | ||||||||||||||
Consolidated Balance Sheet: | ||||||||||||||
Prepaids and other current assets | $ | 1,758 | $ | - | $ | 904 | ||||||||
Other long-term assets | 228 | - | - | |||||||||||
Other current liabilities | -13,394 | -971 | -197 | |||||||||||
Other long-term liabilities | -19,534 | -339 | - | |||||||||||
Total fair value of derivatives, net | $ | -30,942 | $ | -1,310 | $ | 707 | ||||||||
31-Dec-14 | ||||||||||||||
Designation: | Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||
Derivative contract type: | Foreign Exchange | Interest Rate | Foreign Exchange | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Fair Value | |||||||||||
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 | ||||||||
The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2015 and 2014 were as follows (in thousands): | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
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: | $ | 1,220 | $ | -71 | $ | -3,592 | $ | -57 | ||||||
Amount and location of net gain or (loss) reclassified | ||||||||||||||
from accumulated OCI to income - effective portion: | ||||||||||||||
Revenue | $ | -1,708 | $ | - | $ | -1,570 | $ | - | ||||||
Interest Expense | - | -257 | - | -258 | ||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Designation: | Not Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||
Derivative contract type: | Foreign Exchange | Foreign Exchange | ||||||||||||
Derivative classification: | Forward Contracts | Fair Value | Forward Contracts | Fair Value | ||||||||||
Amount and location of net gain or (loss) recognized in the | ||||||||||||||
Consolidated Statement of Comprehensive Income: | ||||||||||||||
Costs of services | $ | - | $ | - | $ | - | $ | - | ||||||
Other income (expense), net | $ | - | $ | 80 | $ | - | $ | 619 | ||||||
FAIR_VALUE
FAIR VALUE | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
FAIR VALUE [Abstract] | |||||||||||||||
FAIR VALUE | (7) FAIR VALUE | ||||||||||||||
The authoritative guidance for fair value measurements establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||
Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. | |||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | |||||||||||||||
The following presents information as of March 31, 2015 and December 31, 2014 for the Company's assets and liabilities required to be measured at fair value on a recurring basis, as well as the fair value hierarchy used to determine their fair value. | |||||||||||||||
Accounts Receivable and Payable - The amounts recorded in the accompanying balance sheets approximate fair value because of their short-term nature. | |||||||||||||||
Debt - The Company's debt consists primarily of the Company's Credit Agreement, which permits floating-rate borrowings based upon the current Prime Rate or LIBOR plus a credit spread as determined by the Company's leverage ratio calculation (as defined in the Credit Agreement). As of March 31, 2015 and December 31, 2014, the Company had $126.0 million and $100.0 million, respectively, of borrowings outstanding under the Credit Agreement. During the first quarter of 2015 outstanding borrowings accrued interest at an average rate of 1.2% per annum, excluding unused commitment fees. The amounts recorded in the accompanying Balance Sheets approximate fair value due to the variable nature of the debt. | |||||||||||||||
Derivatives - Net derivative assets (liabilities) are measured at fair value on a recurring basis. The portfolio is valued using models based on market observable inputs, including both forward and spot foreign exchange rates, interest rates, implied volatility, and counterparty credit risk, including the ability of each party to execute its obligations under the contract. As of March 31, 2015, credit risk did not materially change the fair value of the Company's derivative contracts. | |||||||||||||||
The following is a summary of the Company's fair value measurements for its net derivative assets (liabilities) as of March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||||
As of March 31, 2015 | |||||||||||||||
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 | $ | - | $ | -30,942 | $ | - | $ | -30,942 | |||||||
Interest rate swaps | - | -1,310 | - | -1,310 | |||||||||||
Fair value hedges | - | 707 | - | 707 | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -31,545 | $ | - | $ | -31,545 | |||||||
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 | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -29,817 | $ | - | $ | -29,817 | |||||||
The following is a summary of the Company's fair value measurements as of March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||||
As of March 31, 2015 | |||||||||||||||
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 | |||||||||||||||
Derivative instruments, net | $ | - | $ | - | $ | - | |||||||||
Total assets | $ | - | $ | - | $ | - | |||||||||
Liabilities | |||||||||||||||
Deferred compensation plan liability | $ | - | $ | -9,272 | $ | - | |||||||||
Derivative instruments, net | - | -31,545 | - | ||||||||||||
Contingent consideration | - | - | -23,953 | ||||||||||||
Total liabilities | $ | - | $ | -40,817 | $ | -23,953 | |||||||||
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 | |||||||||||||||
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 | |||||||||
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 dependant on the specific risks of each acquisition including the country of operation, the nature of services and complexity of the acquired business, and other similar factors. These measurements were based on significant inputs not observable in the market. The Company will accrete interest expense each period using the effective interest method until the future value of these contingent payables reaches their expected future value of $24.7 million. Interest expense related to all recorded purchase price 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). | |||||||||||||||
During the first quarter of 2015, the Company assessed the contingent payables associated with all of the acquisitions and determined that no material adjustments were necessary. | |||||||||||||||
A rollforward of the activity in the Company's fair value of the contingent consideration payable is as follows (in thousands): | |||||||||||||||
31-Dec-14 | Acquisitions | Payments | Imputed Interest / Adjustments | 31-Mar-15 | |||||||||||
iKnowtion | $ | 2,265 | $ | - | $ | - | $ | 15 | $ | 2,280 | |||||
Guidon | 1,000 | - | -1,000 | - | - | ||||||||||
TSG | - | - | - | - | - | ||||||||||
WebMetro | - | - | - | - | - | ||||||||||
Sofica | 6,317 | - | - | 80 | 6,397 | ||||||||||
rogenSi | 15,162 | - | - | 114 | 15,276 | ||||||||||
Total | $ | 24,744 | $ | - | $ | -1,000 | $ | 209 | $ | 23,953 | |||||
Subsequent to March 31, 2015, an additional $8.1 million of payments were completed in accordance with the acquisition agreements. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
INCOME TAXES [ABSTRACT] | |
INCOME TAXES | (8) INCOME TAXES |
The Company accounts for income taxes in accordance with the accounting literature for income taxes, which requires recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the Consolidated Financial Statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using tax rates in effect for the year in which the differences are expected to reverse. Quarterly, the Company assesses the likelihood that its net deferred tax assets will be recovered. Based on the weight of all available evidence, both positive and negative, the Company records a valuation allowance against deferred tax assets when it is more-likely-than-not that a future tax benefit will not be realized. | |
During the first quarter of 2014, a benefit of $1.2 million was recorded due to the closing of statutes of limitations in Canada. | |
As of March 31, 2015, the Company had $52.8 million of gross deferred tax assets (after a $10.4 million valuation allowance) and net deferred tax assets (after deferred tax liabilities) of $49.9 million related to the U.S. and international tax jurisdictions whose recoverability is dependent upon future profitability. | |
The effective tax rate for the three months ended March 31, 2015 and 2014 was 18.0% and 11.9%, respectively. | |
The Company's U.S. income tax returns filed for the tax years ending December 31, 2011 to present remain open tax years. The Company has been notified of the intent to audit, or is currently under audit, of income taxes in the U.S. specifically for the acquired entity Technology Solutions Group 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 | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | ||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (9) RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | |||||||||
Restructuring Charges | ||||||||||
During the three months ended March 31, 2015 and 2014, 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. | ||||||||||
A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2015 and 2014, respectively, is as follows (in thousands): | ||||||||||
Three Months Ended March 31, | ||||||||||
2015 | 2014 | |||||||||
Reduction in force | ||||||||||
Customer Management Services | $ | 776 | $ | 511 | ||||||
Customer Growth Services | - | 29 | ||||||||
Customer Technology Services | - | - | ||||||||
Customer Strategy Services | 33 | - | ||||||||
Total | $ | 809 | $ | 540 | ||||||
A rollforward of the activity in the Company's restructuring accruals is as follows (in thousands): | ||||||||||
Closure of Delivery Centers | Reduction in Force | Total | ||||||||
Balance as of December 31, 2014 | $ | - | $ | 2,071 | $ | 2,071 | ||||
Expense | - | 809 | 809 | |||||||
Payments | - | -1,208 | -1,208 | |||||||
Changes in estimates | - | - | - | |||||||
Balance as of March 31, 2015 | $ | - | $ | 1,672 | $ | 1,672 | ||||
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 the three months ended March 31, 2015 and 2014, the Company recognized no losses related to leasehold improvement assets. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (10) COMMITMENTS AND CONTINGENCIES |
Credit Facility | |
In the second quarter of 2013, the Company entered into a $700.0 million, five-year, multi-currency revolving credit facility (the “Credit Agreement”) with a syndicate of lenders which includes an accordion feature that permits the Company to request an increase in total commitments up to $1.0 billion, under certain conditions. Wells Fargo Securities, LLC, KeyBank National Association, Bank of America Merrill Lynch, BBVA Compass and HSBC Bank USA, National Association served as Joint Lead Arrangers. The Credit Agreement amends and restates in its entirety the Company's prior credit facility entered into during 2010 and amended in 2012. | |
The Credit Agreement provides for a secured revolving credit facility that matures on June 3, 2018 with an initial maximum aggregate commitment of $700.0 million. At the Company's discretion, direct borrowing options under the Credit Agreement include (i) Eurodollar loans with one, two, three, and six month terms, and/or (ii) overnight base rate loans. The Credit Agreement also provides for a sub-limit for loans or letters of credit in both U.S. dollars and certain foreign currencies, with direct foreign subsidiary borrowing capabilities up to 50% of the total commitment amount. The Company may increase the maximum aggregate commitment under the Credit Agreement to $1.0 billion if certain conditions are satisfied, including that the Company is not in default under the Credit Agreement at the time of the increase and that the Company obtains the commitment of the lenders participating in the increase. | |
The Company primarily utilizes its Credit Agreement to fund working capital, general operations, stock repurchases and other strategic activities, such as the acquisitions described in Note 2. As of March 31, 2015 and December 31, 2014, the Company had borrowings of $126.0 million and $100.0 million, respectively, under its Credit Agreement, and its average daily utilization was $297.0 million and $270.9 million for the three months ended March 31, 2015 and 2014, respectively. After consideration for issued letters of credit under the Credit Agreement, totaling $3.2 million, the Company's remaining borrowing capacity was $570.8 million as of March 31, 2015. As of March 31, 2015, the Company was in compliance with all covenants and conditions under its Credit Agreement. | |
From time-to-time, the Company has unsecured, uncommitted lines of credit to support working capital for a few foreign subsidiaries. As of March 31, 2015 and 2014, no foreign loans were outstanding. | |
Letters of Credit | |
As of March 31, 2015, outstanding letters of credit under the Credit Agreement totaled $3.2 million and primarily guaranteed workers' compensation and other insurance related obligations. As of March 31, 2015, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $4.6 million. | |
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. |
NONCONTROLLING_INTEREST
NONCONTROLLING INTEREST | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
NONCONTROLLING INTEREST [Abstract] | |||||||
Noncontrollling Interest | (11) NONCONTROLLING INTEREST | ||||||
The following table reconciles equity attributable to noncontrolling interest (in thousands): | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Noncontrolling interest, January 1 | $ | 7,983 | $ | 8,081 | |||
Net income attributable to noncontrolling interest | 1,090 | 957 | |||||
Dividends distributed to noncontrolling interest | -990 | -990 | |||||
Foreign currency translation adjustments | -284 | 35 | |||||
Equity based compensation expense | 20 | 8 | |||||
Noncontrolling interest, March 31 | $ | 7,819 | $ | 8,091 | |||
MANDATORILY_REDEEMABLE_NONCONT
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Mandatorily Redeemable Noncontrolling Interest [Abstract] | |||||||
Mandatorily Redeemable Noncontrolling Interest | (12) MANDATORILY REDEEMABLE NONCONTROLLING INTEREST | ||||||
The Company holds an 80% interest in iKnowtion. In the event iKnowtion meets certain EBITDA targets for calendar year 2015, the purchase and sale agreement requires TeleTech to purchase the remaining 20% interest in iKnowtion in 2016 for an amount equal to a multiple of iKnowtion's 2015 EBITDA as defined in the purchase and sale agreement. These terms represent a contingent redemption feature which the Company determined is probable of being achieved. | |||||||
The Company has recorded the mandatorily redeemable noncontrolling interest at the redemption value based on the corresponding EBITDA multiples as prescribed in the purchase and sale agreement at the end of each reporting period. At the end of each reporting period the changes in the redemption value are recorded in retained earnings. Since the EBITDA multiples as defined in the purchase and sale agreement are below the current market multiple, the Company has determined that there is no preferential treatment to the noncontrolling interest shareholders resulting in no impact to earnings per share. | |||||||
A rollforward of the mandatorily redeemable noncontrolling interest is as follows (in thousands): | |||||||
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
Mandatorily redeemable noncontrolling interest, January 1 | $ | 2,814 | $ | 2,509 | |||
Net income attributable to mandatorily redeemable noncontrolling interest | 173 | 128 | |||||
Dividends distributed to mandatorily redeemable noncontrolling interest | - | - | |||||
Change in redemption value | 424 | -175 | |||||
Mandatorily redeemable noncontrolling interest, March 31 | $ | 3,411 | $ | 2,462 | |||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | (13) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||
The following table presents changes in the accumulated balance for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss) (in thousands): | ||||||||||||||
Foreign Currency Translation Adjustment | Derivative Valuation, Net of Tax | Other, Net of Tax | Totals | |||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2014 | $ | -33,352 | $ | -18,345 | $ | -577 | $ | -52,274 | ||||||
Other comprehensive income (loss) before reclassifications | -10,999 | -1,291 | -2,841 | -15,131 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | 1,139 | 246 | 1,385 | ||||||||||
Net current period other comprehensive income (loss) | -10,999 | -152 | -2,595 | -13,746 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at March 31, 2015 | $ | -44,351 | $ | -18,497 | $ | -3,172 | $ | -66,020 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2013 | $ | -10,581 | $ | -8,352 | $ | -1,653 | $ | -20,586 | ||||||
Other comprehensive income (loss) before reclassifications | -1,758 | -3,649 | 187 | -5,220 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | 1,115 | 89 | 1,204 | ||||||||||
Net current period other comprehensive income (loss) | -1,758 | -2,534 | 276 | -4,016 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at March 31, 2014 | $ | -12,339 | $ | -10,886 | $ | -1,377 | $ | -24,602 | ||||||
The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the statement of comprehensive income (in thousands): | ||||||||||||||
For the Three Months Ended | ||||||||||||||
31-Mar-15 | 31-Mar-14 | Statement of Comprehensive Income Classification | ||||||||||||
Derivative valuation | ||||||||||||||
Gain (loss) on foreign currency forward | ||||||||||||||
exchange contracts | $ | -1,708 | $ | -1,570 | Revenue | |||||||||
Loss on interest rate swaps | -257 | -258 | Interest expense | |||||||||||
Tax effect | 826 | 713 | Provision for income taxes | |||||||||||
$ | -1,139 | $ | -1,115 | Net income (loss) | ||||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -274 | $ | -95 | Cost of services | |||||||||
Tax effect | 28 | 6 | Provision for income taxes | |||||||||||
$ | -246 | $ | -89 | Net income (loss) | ||||||||||
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
NET INCOME PER SHARE [Abstract] | ||||||||
NET INCOME PER SHARE | (14) NET INCOME PER SHARE | |||||||
The following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Shares used in basic earnings per share calculation | 48,370 | 50,045 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 384 | 411 | ||||||
Restricted stock units | 401 | 517 | ||||||
Performance-based restricted stock units | 3 | - | ||||||
Total effects of dilutive securities | 788 | 928 | ||||||
Shares used in dilutive earnings per share calculation | 49,158 | 50,973 | ||||||
For the three months ended March 31, 2015 and 2014, options to purchase 0.1 million and 0.1 million shares of common stock, respectively, were outstanding, but not included in the computation of diluted net income per share because the exercise price exceeded the value of the shares and the effect would have been anti–dilutive. For the three months ended March 31, 2015 and 2014, restricted stock units (“RSUs”) of 0.5 million and 0.3 million, respectively, were outstanding, but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. |
EQUITYBASED_COMPENSATION_PLANS
EQUITY-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2015 | |
EQUITY-BASED COMPENSATION PLANS [Abstract] | |
EQUITY-BASED COMPENSATION PLANS | (15) EQUITY-BASED COMPENSATION PLANS |
All equity–based awards to employees are recognized in the Consolidated Statements of Comprehensive Income (Loss) at the fair value of the award on the grant date. During the three months ended March 31, 2015 and 2014, the Company recognized total compensation expense of $2.7 million and $3.2 million, respectively. Of the total compensation expense, $0.6 million and $0.6 million was recognized in Cost of services and $2.1 million and $2.6 million was recognized in Selling, general and administrative. | |
Restricted Stock Unit Grants | |
During the three months ended March 31, 2015 and 2014, the Company granted 80,000 and 164,000 RSUs, respectively, to new and existing employees, which vest in equal installments over four or five years. The Company recognized compensation expense related to RSUs of $2.6 million and $3.0 million for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, there was approximately $24.2 million of total unrecognized compensation cost (including the impact of expected forfeitures) related to RSUs granted under the Company's equity plans. |
OVERVIEW_AND_BASIS_OF_PRESENTA1
OVERVIEW AND BASIS OF PRESENTATION (POLICIES) | 3 Months Ended |
Mar. 31, 2015 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
Overview | Summary of Business |
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 44,000 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, Ireland, Israel, Lebanon, Macedonia, Mexico, New Zealand, the Philippines, Poland, Singapore, South Africa, 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, and its 80% interest in iKnowtion, LLC. All intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates |
The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including 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. | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. ASU 2015-03 requires all costs incurred in connection with the issuance of debt to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. This ASU is effective for interim and annual periods beginning on or after December 15, 2015 and early adoption is permitted. The Company is evaluating when it will adopt the standard but does not expect the adoption of this standard to have a material impact on its financial position, results of operation or related disclosures. |
ACQUISITIONS_TABLES
ACQUISITIONS (TABLES) (rogenSi [Member]) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
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 | 2,880 | |||
Property, plant and equipment | 578 | |||
Deferred tax assets, net | 449 | |||
Customer relationships | 9,348 | |||
Goodwill | 20,927 | |||
43,269 | ||||
Accounts payable | 708 | |||
Accrued employee compensation and benefits | 2,203 | |||
Accrued expenses | 1,146 | |||
Other | 4,843 | |||
8,900 | ||||
Total purchase price | $ | 34,369 | ||
SEGMENT_INFORMATION_TABLES
SEGMENT INFORMATION (TABLES) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
SEGMENT INFORMATION [ABSTRACT] | ||||||||||||||||
Schedule of Segment Selected Financial Data | Quarter Ended March 31, 2015 | |||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 243,009 | $ | - | $ | 243,009 | $ | 10,797 | $ | 21,702 | ||||||
Customer Growth Services | 25,956 | - | 25,956 | 1,485 | 26 | |||||||||||
Customer Technology Services | 35,721 | -7 | 35,714 | 2,164 | 2,009 | |||||||||||
Customer Strategy Services | 20,842 | - | 20,842 | 917 | 2,391 | |||||||||||
Total | $ | 325,528 | $ | -7 | $ | 325,521 | $ | 15,363 | $ | 26,128 | ||||||
Quarter Ended March 31, 2014 | ||||||||||||||||
Gross Revenue | Intersegment Sales | Net Revenue | Depreciation & Amortization | Income (Loss) from Operations | ||||||||||||
Customer Management Services | $ | 227,924 | $ | - | $ | 227,924 | $ | 9,465 | $ | 20,823 | ||||||
Customer Growth Services | 28,905 | - | 28,905 | 1,556 | 1,770 | |||||||||||
Customer Technology Services | 32,779 | -3 | 32,776 | 1,715 | 311 | |||||||||||
Customer Strategy Services | 12,616 | - | 12,616 | 434 | 1,453 | |||||||||||
Total | $ | 302,224 | $ | -3 | $ | 302,221 | $ | 13,170 | $ | 24,357 | ||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Capital Expenditures | ||||||||||||||||
Customer Management Services | $ | 9,447 | $ | 9,912 | ||||||||||||
Customer Growth Services | 1,305 | 380 | ||||||||||||||
Customer Technology Services | 2,282 | 4,631 | ||||||||||||||
Customer Strategy Services | 4 | 172 | ||||||||||||||
Total | $ | 13,038 | $ | 15,095 | ||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
Total Assets | ||||||||||||||||
Customer Management Services | $ | 533,622 | $ | 514,957 | ||||||||||||
Customer Growth Services | 83,240 | 88,394 | ||||||||||||||
Customer Technology Services | 158,822 | 159,441 | ||||||||||||||
Customer Strategy Services | 88,799 | 89,683 | ||||||||||||||
Total | $ | 864,483 | $ | 852,475 | ||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
Goodwill | ||||||||||||||||
Customer Management Services | $ | 25,410 | $ | 25,871 | ||||||||||||
Customer Growth Services | 30,395 | 30,395 | ||||||||||||||
Customer Technology Services | 42,709 | 42,709 | ||||||||||||||
Customer Strategy Services | 29,074 | 29,730 | ||||||||||||||
Total | $ | 127,588 | $ | 128,705 | ||||||||||||
Schedule of Revenue by Geographic Area | Three Months Ended March 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
United States | $ | 171,653 | $ | 146,469 | ||||||||||||
Philippines | 84,987 | 86,666 | ||||||||||||||
Latin America | 40,554 | 42,046 | ||||||||||||||
Europe / Middle East / Africa | 19,313 | 19,217 | ||||||||||||||
Asia Pacific | 7,674 | 6,400 | ||||||||||||||
Canada | 1,340 | 1,423 | ||||||||||||||
Total Revenue | $ | 325,521 | $ | 302,221 | ||||||||||||
GOODWILL_TABLES
GOODWILL (TABLES) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
GOODWILL [ABSTRACT] | ||||||||||||||||
Schedule of Goodwill Rollforward | 31-Dec-14 | Acquisitions/ Adjustments | Impairments | Effect of Foreign Currency | 31-Mar-15 | |||||||||||
Customer Management Services | $ | 25,871 | $ | - | $ | - | $ | -461 | $ | 25,410 | ||||||
Customer Growth Services | 30,395 | - | - | - | 30,395 | |||||||||||
Customer Technology Services | 42,709 | - | - | - | 42,709 | |||||||||||
Customer Strategy Services | 29,730 | 68 | - | -724 | 29,074 | |||||||||||
Total | $ | 128,705 | $ | 68 | $ | - | $ | -1,185 | $ | 127,588 | ||||||
DERIVATIVES_TABLES
DERIVATIVES (TABLES) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
DERIVATIVES [ABSTRACT] | ||||||||||||||
Schedule of Cash Flow Hedges OCI Rollforward | Three Months Ended March 31, | |||||||||||||
2015 | 2014 | |||||||||||||
Aggregate unrealized net gain/(loss) at beginning of year | $ | -18,345 | $ | -8,352 | ||||||||||
Add: Net gain/(loss) from change in fair value of cash flow hedges | -1,291 | -3,649 | ||||||||||||
Less: Net (gain)/loss reclassified to earnings from effective hedges | 1,139 | 1,115 | ||||||||||||
Aggregate unrealized net gain/(loss) at end of period | $ | -18,497 | $ | -10,886 | ||||||||||
Schedule of Notional Amounts of Outstanding Cash Flow Hedges | As of March 31, 2015 | Local Currency Notional Amount | U.S. Dollar Notional Amount | % Maturing in the Next 12 Months | Contracts Maturing Through | |||||||||
Canadian Dollar | 750 | $ | 719 | 100 | % | Jun-15 | ||||||||
Philippine Peso | 17,063,000 | 386,570 | (1) | 36.8 | % | Feb-20 | ||||||||
Mexican Peso | 2,528,000 | 176,073 | 28.5 | % | Feb-20 | |||||||||
$ | 563,362 | |||||||||||||
As of December 31, 2014 | Local Currency Notional Amount | U.S. Dollar Notional Amount | ||||||||||||
Canadian Dollar | 1,500 | $ | 1,441 | |||||||||||
Philippine Peso | 17,428,000 | 398,046 | (1) | |||||||||||
Mexican Peso | 2,532,000 | 179,089 | ||||||||||||
New Zealand Dollar | 490 | 381 | ||||||||||||
$ | 578,957 | |||||||||||||
(1) Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on March 31, 2015 and December 31, 2014. | ||||||||||||||
Schedule of Interest Rate Swaps | Notional Amount | Variable Rate Received | Fixed Rate Paid | Contract Commencement Date | Contract Maturity Date | |||||||||
As of March 31, 2015 | $ | 25 million | 1 - month LIBOR | 2.55 | % | Apr-12 | Apr-16 | |||||||
and December 31, 2014 | 15 million | 1 - month LIBOR | 3.14 | % | May-12 | May-17 | ||||||||
$ | 40 million | |||||||||||||
Schedule of Derivatives Instruments on Balance Sheet | 31-Mar-15 | |||||||||||||
Designation: | Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||
Derivative contract type: | Foreign Exchange | Interest Rate | Foreign Exchange | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Fair Value | |||||||||||
Fair value and location of derivative in the | ||||||||||||||
Consolidated Balance Sheet: | ||||||||||||||
Prepaids and other current assets | $ | 1,758 | $ | - | $ | 904 | ||||||||
Other long-term assets | 228 | - | - | |||||||||||
Other current liabilities | -13,394 | -971 | -197 | |||||||||||
Other long-term liabilities | -19,534 | -339 | - | |||||||||||
Total fair value of derivatives, net | $ | -30,942 | $ | -1,310 | $ | 707 | ||||||||
31-Dec-14 | ||||||||||||||
Designation: | Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||
Derivative contract type: | Foreign Exchange | Interest Rate | Foreign Exchange | |||||||||||
Derivative classification: | Cash Flow | Cash Flow | Fair Value | |||||||||||
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 | ||||||||
Schedule of Derivative Impact on Statement of Comprehensive Income | Three Months Ended March 31, | |||||||||||||
2015 | 2014 | |||||||||||||
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: | $ | 1,220 | $ | -71 | $ | -3,592 | $ | -57 | ||||||
Amount and location of net gain or (loss) reclassified | ||||||||||||||
from accumulated OCI to income - effective portion: | ||||||||||||||
Revenue | $ | -1,708 | $ | - | $ | -1,570 | $ | - | ||||||
Interest Expense | - | -257 | - | -258 | ||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Designation: | Not Designated as Hedging Instruments | Not Designated as Hedging Instruments | ||||||||||||
Derivative contract type: | Foreign Exchange | Foreign Exchange | ||||||||||||
Derivative classification: | Forward Contracts | Fair Value | Forward Contracts | Fair Value | ||||||||||
Amount and location of net gain or (loss) recognized in the | ||||||||||||||
Consolidated Statement of Comprehensive Income: | ||||||||||||||
Costs of services | $ | - | $ | - | $ | - | $ | - | ||||||
Other income (expense), net | $ | - | $ | 80 | $ | - | $ | 619 | ||||||
FAIR_VALUE_TABLES
FAIR VALUE (TABLES) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
FAIR VALUE [Abstract] | |||||||||||||||
Schedule of Fair Value Derivative Assets and Liabilities | As of March 31, 2015 | ||||||||||||||
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 | $ | - | $ | -30,942 | $ | - | $ | -30,942 | |||||||
Interest rate swaps | - | -1,310 | - | -1,310 | |||||||||||
Fair value hedges | - | 707 | - | 707 | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -31,545 | $ | - | $ | -31,545 | |||||||
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 | |||||||||||
Total net derivative asset (liability) | $ | - | $ | -29,817 | $ | - | $ | -29,817 | |||||||
Schedule of Fair Value Assets and Liabilities | As of March 31, 2015 | ||||||||||||||
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 | |||||||||||||||
Derivative instruments, net | $ | - | $ | - | $ | - | |||||||||
Total assets | $ | - | $ | - | $ | - | |||||||||
Liabilities | |||||||||||||||
Deferred compensation plan liability | $ | - | $ | -9,272 | $ | - | |||||||||
Derivative instruments, net | - | -31,545 | - | ||||||||||||
Contingent consideration | - | - | -23,953 | ||||||||||||
Total liabilities | $ | - | $ | -40,817 | $ | -23,953 | |||||||||
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 | |||||||||||||||
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 | |||||||||
Schedule of Business Acquistions by Acquisition Contingent Consideration | 31-Dec-14 | Acquisitions | Payments | Imputed Interest / Adjustments | 31-Mar-15 | ||||||||||
iKnowtion | $ | 2,265 | $ | - | $ | - | $ | 15 | $ | 2,280 | |||||
Guidon | 1,000 | - | -1,000 | - | - | ||||||||||
TSG | - | - | - | - | - | ||||||||||
WebMetro | - | - | - | - | - | ||||||||||
Sofica | 6,317 | - | - | 80 | 6,397 | ||||||||||
rogenSi | 15,162 | - | - | 114 | 15,276 | ||||||||||
Total | $ | 24,744 | $ | - | $ | -1,000 | $ | 209 | $ | 23,953 | |||||
RESTRUCTURING_CHARGES_AND_IMPA1
RESTRUCTURING CHARGES AND IMPAIRMENT (TABLES) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | ||||||||||
Schedule of Restructuring Liabilities | Three Months Ended March 31, | |||||||||
2015 | 2014 | |||||||||
Reduction in force | ||||||||||
Customer Management Services | $ | 776 | $ | 511 | ||||||
Customer Growth Services | - | 29 | ||||||||
Customer Technology Services | - | - | ||||||||
Customer Strategy Services | 33 | - | ||||||||
Total | $ | 809 | $ | 540 | ||||||
Schedule of Restructuring Liability Rollforward | Closure of Delivery Centers | Reduction in Force | Total | |||||||
Balance as of December 31, 2014 | $ | - | $ | 2,071 | $ | 2,071 | ||||
Expense | - | 809 | 809 | |||||||
Payments | - | -1,208 | -1,208 | |||||||
Changes in estimates | - | - | - | |||||||
Balance as of March 31, 2015 | $ | - | $ | 1,672 | $ | 1,672 | ||||
NONCONTROLLING_INTEREST_TABLES
NONCONTROLLING INTEREST (TABLES) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
NONCONTROLLING INTEREST [Abstract] | |||||||
Noncontrolling Interest Rollforward | Three Months Ended March 31, | ||||||
2015 | 2014 | ||||||
Noncontrolling interest, January 1 | $ | 7,983 | $ | 8,081 | |||
Net income attributable to noncontrolling interest | 1,090 | 957 | |||||
Dividends distributed to noncontrolling interest | -990 | -990 | |||||
Foreign currency translation adjustments | -284 | 35 | |||||
Equity based compensation expense | 20 | 8 | |||||
Noncontrolling interest, March 31 | $ | 7,819 | $ | 8,091 | |||
MANDATORILY_REDEEMABLE_NONCONT1
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (TABLES) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Mandatorily Redeemable Noncontrolling Interest [Abstract] | |||||||
Mandatorily Redeemable Noncontrolling Interest Rollforward | Three months ended March 31, | ||||||
2015 | 2014 | ||||||
Mandatorily redeemable noncontrolling interest, January 1 | $ | 2,814 | $ | 2,509 | |||
Net income attributable to mandatorily redeemable noncontrolling interest | 173 | 128 | |||||
Dividends distributed to mandatorily redeemable noncontrolling interest | - | - | |||||
Change in redemption value | 424 | -175 | |||||
Mandatorily redeemable noncontrolling interest, March 31 | $ | 3,411 | $ | 2,462 | |||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (TABLES) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | ||||||||||||||
Other Comprehensive Income Attributable to TeleTech Shareholders Table | Foreign Currency Translation Adjustment | Derivative Valuation, Net of Tax | Other, Net of Tax | Totals | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2014 | $ | -33,352 | $ | -18,345 | $ | -577 | $ | -52,274 | ||||||
Other comprehensive income (loss) before reclassifications | -10,999 | -1,291 | -2,841 | -15,131 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | 1,139 | 246 | 1,385 | ||||||||||
Net current period other comprehensive income (loss) | -10,999 | -152 | -2,595 | -13,746 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at March 31, 2015 | $ | -44,351 | $ | -18,497 | $ | -3,172 | $ | -66,020 | ||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at December 31, 2013 | $ | -10,581 | $ | -8,352 | $ | -1,653 | $ | -20,586 | ||||||
Other comprehensive income (loss) before reclassifications | -1,758 | -3,649 | 187 | -5,220 | ||||||||||
Amounts reclassified from accumulated other | ||||||||||||||
comprehensive income (loss) | - | 1,115 | 89 | 1,204 | ||||||||||
Net current period other comprehensive income (loss) | -1,758 | -2,534 | 276 | -4,016 | ||||||||||
Accumulated other comprehensive income | ||||||||||||||
(loss) at March 31, 2014 | $ | -12,339 | $ | -10,886 | $ | -1,377 | $ | -24,602 | ||||||
Income Statement Location of Adjustments Reclassified from Accumulated Other Comprehensive Income to Income | For the Three Months Ended | |||||||||||||
31-Mar-15 | 31-Mar-14 | Statement of Comprehensive Income Classification | ||||||||||||
Derivative valuation | ||||||||||||||
Gain (loss) on foreign currency forward | ||||||||||||||
exchange contracts | $ | -1,708 | $ | -1,570 | Revenue | |||||||||
Loss on interest rate swaps | -257 | -258 | Interest expense | |||||||||||
Tax effect | 826 | 713 | Provision for income taxes | |||||||||||
$ | -1,139 | $ | -1,115 | Net income (loss) | ||||||||||
Other | ||||||||||||||
Actuarial loss on defined benefit plan | $ | -274 | $ | -95 | Cost of services | |||||||||
Tax effect | 28 | 6 | Provision for income taxes | |||||||||||
$ | -246 | $ | -89 | Net income (loss) | ||||||||||
NET_INCOME_PER_SHARE_TABLES
NET INCOME PER SHARE (TABLES) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
NET INCOME PER SHARE [Abstract] | ||||||||
Schedule of Diluted Shares Calculation | Three Months Ended March 31, | |||||||
2015 | 2014 | |||||||
Shares used in basic earnings per share calculation | 48,370 | 50,045 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 384 | 411 | ||||||
Restricted stock units | 401 | 517 | ||||||
Performance-based restricted stock units | 3 | - | ||||||
Total effects of dilutive securities | 788 | 928 | ||||||
Shares used in dilutive earnings per share calculation | 49,158 | 50,973 | ||||||
ACQUISITIONS_ASSETS_ACQUIRED_T
ACQUISITIONS (ASSETS ACQUIRED TABLE) (DETAILS) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Jan. 28, 2014 | Aug. 08, 2014 |
In Thousands, unless otherwise specified | ||||
Business Acquisition [Line Items] | ||||
Total deferred tax assets, net | $52,800 | |||
Goodwill | 127,588 | 128,705 | ||
Accrued employee compensation and benefits | 69,492 | 70,069 | ||
Sofica [Member] | ||||
Business Acquisition [Line Items] | ||||
Total purcahse price | 14,200 | |||
rogenSi [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | 2,670 | |||
Accounts receivable | 6,417 | |||
Property, plant and equipment | 578 | |||
Other assets | 2,880 | |||
Total deferred tax assets, net | 449 | |||
Customer relationships | 9,348 | |||
Goodwill | 20,927 | |||
Total assets acquired | 43,269 | |||
Accounts payable | 708 | |||
Accrued employee compensation and benefits | 2,203 | |||
Accrued expenses | 1,146 | |||
Other | 4,843 | |||
Total liabilities assumed | 8,900 | |||
Total purcahse price | $34,369 |
ACQUISITIONS_NARRATIVE_DETAILS
ACQUISITIONS (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 1 Months Ended | 7 Months Ended | |
Mar. 31, 2015 | Jan. 28, 2014 | Aug. 08, 2014 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||
Contingent Consideration, at fair value | $23,953,000 | $24,744,000 | ||
Revenue of Acquirees since Acquisition Date, Actual | 12,500,000 | |||
Income (loss) from operations of Acquirees since Acquisition Date, Actual | 1,100,000 | |||
Business Combination Pro Forma Information Amortization Expense of Acquirees Since Acquisition | 700,000 | |||
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. | |||
Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net | 14,200,000 | |||
Cost of Acquired Entity, Up Front Cash Consideration | 9,400,000 | |||
Future Value of Liabilities Incurred From Business Acquisitions | 3,800,000 | |||
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. | |||
Acquisition hold-back payment | 1,000,000 | |||
Discount rate | 5.00% | |||
Contingent Consideration Arrangements, Basis for Amount | 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. | |||
Contingent Consideration, at fair value | 4,000,000 | |||
Contingent Consideration, at Fair Value, Current Portion | 3,600,000 | |||
Contingent Consideration, at Fair Value, Noncurrent Portion | 2,800,000 | |||
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. | |||
Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net | 34,369,000 | |||
Cost of Acquired Entity, Up Front Cash Consideration | 18,000,000 | |||
Future Value of Liabilities Incurred From Business Acquisitions | 15,300,000 | |||
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. | |||
Acquisition hold-back payment | 1,800,000 | |||
Discount rate | 4.60% | |||
Contingent Consideration Arrangements, Basis for Amount | 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 | |||
Contingent Consideration, at Fair Value, Current Portion | 11,300,000 | |||
Contingent Consideration, at Fair Value, Noncurrent Portion | $4,000,000 | |||
CafeX [Member] | ||||
Business Acquisition [Line Items] | ||||
Cost Method Investments Description | the Company invested $9.0 million in CafeX Communications, Inc. (“CafeX”) through the purchase of a portion of the Series B Preferred Stock of CafeX. After the transaction, the Company owns 17.3% of the total equity of CafeX. |
SEGMENT_INFORMATION_SEGMENT_FI
SEGMENT INFORMATION (SEGMENT FINANCIALS) (DETAILS) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Gross Revenue | $325,528 | $302,224 | |
Intersegment Sales | -7 | -3 | |
Net Revenue | 325,521 | 302,221 | |
Depreciation and amortization | 15,363 | 13,170 | |
Income (Loss) from Operations | 26,128 | 24,357 | |
Capital Expenditures | 13,038 | 15,095 | |
Total Assets | 864,483 | 852,475 | |
Goodwill | 127,588 | 128,705 | |
Customer Management Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross Revenue | 243,009 | 227,924 | |
Intersegment Sales | 0 | ||
Net Revenue | 243,009 | 227,924 | |
Depreciation and amortization | 10,797 | 9,465 | |
Income (Loss) from Operations | 21,702 | 20,823 | |
Capital Expenditures | 9,447 | 9,912 | |
Total Assets | 533,622 | 514,957 | |
Goodwill | 25,410 | 25,871 | |
Customer Growth Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross Revenue | 25,956 | 28,905 | |
Net Revenue | 25,956 | 28,905 | |
Depreciation and amortization | 1,485 | 1,556 | |
Income (Loss) from Operations | 26 | 1,770 | |
Capital Expenditures | 1,305 | 380 | |
Total Assets | 83,240 | 88,394 | |
Goodwill | 30,395 | 30,395 | |
Customer Technology Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross Revenue | 35,721 | 32,779 | |
Intersegment Sales | -7 | -3 | |
Net Revenue | 35,714 | 32,776 | |
Depreciation and amortization | 2,164 | 1,715 | |
Income (Loss) from Operations | 2,009 | 311 | |
Capital Expenditures | 2,282 | 4,631 | |
Total Assets | 158,822 | 159,441 | |
Goodwill | 42,709 | 42,709 | |
Customer Strategy Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Gross Revenue | 20,842 | 12,616 | |
Intersegment Sales | 0 | ||
Net Revenue | 20,842 | 12,616 | |
Depreciation and amortization | 917 | 434 | |
Income (Loss) from Operations | 2,391 | 1,453 | |
Capital Expenditures | 4 | 172 | |
Total Assets | 88,799 | 89,683 | |
Goodwill | $29,074 | $29,730 |
SEGMENT_INFORMATION_REVENUE_GE
SEGMENT INFORMATION (REVENUE GEOGRAPHY) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $325,521 | $302,221 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 171,653 | 146,469 |
Philippines [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 84,987 | 86,666 |
Latin America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 40,554 | 42,046 |
Europe Middle East Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 19,313 | 19,217 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 1,340 | 1,423 |
Asia Pacific[ Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $7,674 | $6,400 |
SIGNIFICANT_CLIENTSNARRATIVE_D
SIGNIFICANT CLIENTS(NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Entity Wide Revenue Major Customer Line Items | ||
Revenue from major customer as a percentage of total revenue | 10.90% | 11.60% |
Accounts receivable amount from major customer | $37.60 | $32.30 |
GOODWILL_GOODWILL_ROLLFORWARD_
GOODWILL (GOODWILL ROLLFORWARD) (DETAILS) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Line Items] | |
Beginning balance, goodwill | $128,705 |
Acquisitions | 68 |
Impairments | 0 |
Effect of Foreign Currency | -1,185 |
Ending balance, goodwill | 127,588 |
Customer Management Services [Member] | |
Goodwill [Line Items] | |
Beginning balance, goodwill | 25,871 |
Acquisitions | 0 |
Impairments | 0 |
Effect of Foreign Currency | -461 |
Ending balance, goodwill | 25,410 |
Customer Growth Services [Member] | |
Goodwill [Line Items] | |
Beginning balance, goodwill | 30,395 |
Acquisitions | 0 |
Impairments | 0 |
Effect of Foreign Currency | 0 |
Ending balance, goodwill | 30,395 |
Customer Technology Services [Member] | |
Goodwill [Line Items] | |
Beginning balance, goodwill | 42,709 |
Acquisitions | 0 |
Impairments | 0 |
Effect of Foreign Currency | 0 |
Ending balance, goodwill | 42,709 |
Customer Strategy Services [Member] | |
Goodwill [Line Items] | |
Beginning balance, goodwill | 29,730 |
Acquisitions | 68 |
Impairments | 0 |
Effect of Foreign Currency | -724 |
Ending balance, goodwill | $29,074 |
GOODWILL_NARRATIVE_DETAILS
GOODWILL (NARRATIVE) (DETAILS) | Mar. 31, 2015 |
WebMetro [Member] | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Fair value of a reporting unit in excess of carrying value expressed as a percentage | 17.00% |
Revana [Member] | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Fair value of a reporting unit in excess of carrying value expressed as a percentage | 12.00% |
DERIVATIVES_OCI_ROLLFORWARD_DE
DERIVATIVES (OCI ROLLFORWARD) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
DERIVATIVES [ABSTRACT] | ||
Aggregate unrealized net gain/(loss) at beginning of year | ($18,345) | ($8,352) |
Add: Net gain/(loss) from change in fair value of cash flow hedges | -1,291 | -3,649 |
Less: Net (gain)/loss reclassified to earnings from effective hedges | -1,139 | -1,115 |
Aggregate unrealized net gain/(loss) at end of period | ($18,497) | ($10,886) |
DERIVATIVES_NOTIONAL_TABLE_DET
DERIVATIVES (NOTIONAL TABLE) (DETAILS) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards | Forwards |
USD ($) | USD ($) | CAD | CAD | CAD | CAD | PHP | PHP | PHP | PHP | MXN | MXN | MXN | MXN | NZD | NZD | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Notional Amount | $262,600 | $242,500 | $563,362 | $578,957 | $719 | 750 | $1,441 | 1,500 | $386,570 | 17,063,000 | $398,046 | 17,428,000 | $176,073 | 2,528,000 | $179,089 | 2,532,000 | $381 | 490 |
% Maturing in the Next 12 Months | 100.00% | 100.00% | 36.80% | 36.80% | 28.50% | 28.50% | ||||||||||||
Contracts Maturing Through | 0 years 3 months 0 days | 0 years 3 months 0 days | 4 years 11 months 0 days | 4 years 11 months 0 days | 4 years 11 months 0 days | 4 years 11 months 0 days |
DERIVATIVES_INTEREST_RATE_SWAP
DERIVATIVES (INTEREST RATE SWAPS) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional Amount | $262,600 | $242,500 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
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) | ($30,942) | ($29,169) |
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) | 1,758 | 192 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 228 | 389 |
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) | -13,394 | -12,680 |
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) | -19,534 | -17,070 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | -1,310 | -1,440 |
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) | -971 | -988 |
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) | -339 | -452 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 707 | 792 |
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) | 904 | 797 |
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) | ($197) | ($5) |
DERIVATIVES_INCOME_STATEMENT_C
DERIVATIVES (INCOME STATEMENT CLASSIFICATION) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest expense | $1,698 | $1,690 |
Other income (expense), net | -307 | 1,001 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in other comprehensive income (loss) - effective portion, net of tax: | 1,220 | -3,592 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Amount and Location of Net Gain or Loss Reclassified From Accumulated Other Comprehensive Income to Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Revenues | -1,708 | -1,570 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain or (loss) recognized in other comprehensive income (loss) - effective portion, net of tax: | -71 | -57 |
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 | -257 | -258 |
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 | $80 | $619 |
DERIVATIVES_NARRATIVE_DETAILS
DERIVATIVES (NARRATIVE) (DETAILS) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
DERIVATIVES [ABSTRACT] | ||
Notional Amount | $262.60 | $242.50 |
FAIR_VALUE_DERIVATIVES_TABLE_D
FAIR VALUE (DERIVATIVES TABLE) (DETAILS) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | ($30,942) | ($29,169) |
Interest rate swaps | -1,310 | -1,440 |
Fair value hedges | 707 | 792 |
Total net derivative asset (liability) | -31,545 | -29,817 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | -30,942 | -29,169 |
Interest rate swaps | -1,310 | -1,440 |
Fair value hedges | 707 | 792 |
Total net derivative asset (liability) | ($31,545) | ($29,817) |
FAIR_VALUE_FAIR_VALUE_ASSETS_A
FAIR VALUE (FAIR VALUE ASSETS AND LIABILITIES) (DETAILS) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Liabilities [Abstract] | ||
Contingent consideration | ($23,953) | ($24,744) |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Total assets | 0 | 0 |
Liabilities [Abstract] | ||
Deferred compensation plan liability | 9,272 | 8,478 |
Derivative instruments, net | 31,545 | 29,817 |
Total liabilities | -40,817 | -38,295 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities [Abstract] | ||
Contingent consideration | 23,953 | 24,744 |
Total liabilities | ($23,953) | ($24,744) |
FAIR_VALUE_CONTINGENT_CONSIDER
FAIR VALUE (CONTINGENT CONSIDERATION TABLE) (DETAILS) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, purchase price payable | $23,953 | $24,744 |
Acquisitions | 0 | |
Payments | -1,000 | |
Imputed Interest/ Adjustments | 209 | |
Ending balance, purchase price payable | 23,953 | 24,744 |
Iknowtion [Member] | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, purchase price payable | 2,280 | 2,265 |
Payments | 0 | |
Imputed Interest/ Adjustments | 15 | |
Ending balance, purchase price payable | 2,280 | 2,265 |
Guidon [Member] | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, purchase price payable | 0 | 1,000 |
Payments | -1,000 | |
Imputed Interest/ Adjustments | 0 | |
Ending balance, purchase price payable | 0 | 1,000 |
Technology Solutions Group [Member] | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, purchase price payable | 0 | 0 |
Imputed Interest/ Adjustments | 0 | |
Ending balance, purchase price payable | 0 | 0 |
WebMetro [Member] | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, purchase price payable | 0 | 0 |
Imputed Interest/ Adjustments | 0 | |
Ending balance, purchase price payable | 0 | 0 |
Sofica [Member] | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, purchase price payable | 6,397 | 6,317 |
Imputed Interest/ Adjustments | 80 | |
Ending balance, purchase price payable | 6,397 | 6,317 |
rogenSi [Member] | ||
Business acquisitions, Contingent Consideration [Line Items] | ||
Beginning balance, purchase price payable | 15,276 | 15,162 |
Imputed Interest/ Adjustments | 114 | |
Ending balance, purchase price payable | $15,276 | $15,162 |
FAIR_VALUE_NARRATIVE_DETAILS
FAIR VALUE (NARRATIVE) (DETAILS) (USD $) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
FAIR VALUE [Abstract] | |||
Contingent Consideration, at fair value | $23,953,000 | $24,744,000 | |
Contingent Consideration Cash Payment | $8,100,000 |
INCOME_TAXES_NARRATIVE_DETAILS
INCOME TAXES (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
INCOME TAXES [ABSTRACT] | ||
Total deferred tax assets, net of valuation allowance | $52,800,000 | |
Valuation allowance on deferred tax assets | 10,400,000 | |
Deferred tax assets, net of valuation allowance and deferred tax liabilities | 49,900,000 | |
Effective income tax rate | 18.00% | 11.90% |
Canada [Member] | ||
Significant Change in Unrecognized Tax Benefits Is Reasonably Possible [LineItems] | ||
Significant Change in Unrecognized Tax Benefits, Nature of Event | During the first quarter of 2014, a benefit of $1.2 million was recorded due to the closing of statutes of limitations in Canada. | |
Tax Adjustments, Settlements, and Unusual Provisions | 1,200,000 | |
Income Tax Examination [Line Items] | ||
Income Tax Years under Audit | 2009 and 2010 | |
United States [Member] | ||
Income Tax Examination [Line Items] | ||
Income Tax Years under Audit | 2011 to present | |
Technology Solutions Group [Member] | ||
Income Tax Examination [Line Items] | ||
Income Tax Years under Audit | 2012 |
RESTRUCTURING_CHARGES_AND_IMPA2
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABILITY CLASSIFICATION TABLE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges, net | $809 | $540 |
Customer Management Services [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction in force | 776 | 511 |
Customer Growth Services [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction in force | 0 | 29 |
Customer Strategy Services [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction in force | $33 | $0 |
RESTRUCTURING_CHARGES_AND_IMPA3
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABLITY ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance, restructuring reserve | $2,071 |
Expense | 809 |
Payments | -1,208 |
Ending balance, restructuring reserve | 1,672 |
Reduction in Force [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance, restructuring reserve | 2,071 |
Expense | 809 |
Payments | -1,208 |
Ending balance, restructuring reserve | $1,672 |
RESTRUCTURING_CHARGES_AND_IMPA4
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $1,672 | $2,071 |
Payments | ($1,208) |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | 5 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jun. 03, 2013 | Dec. 31, 2014 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||
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 | |||
Borrowings outstanding on credit facility | 126,000,000 | 100,000,000 | ||
Average daily utilization under credit facility | 297,000,000 | 270,900,000 | ||
Letters of credit issued under credit facility | 3,200,000 | |||
Remaining borrowing capacity under credit facility | 570,800,000 | |||
Letters of credit issued outside credit facility | $4,600,000 |
NONCONTROLLING_INTERES_NONCONT
NONCONTROLLING INTERES (NONCONTROLLING INTEREST ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stockholders' Equity Attributable to Noncontrolling Interest | ||
Noncontrolling interest, January 1 | $7,983 | $8,081 |
Net income attributable to noncontrolling interest | 1,090 | 957 |
Dividends distributed to noncontrolling interest | -990 | -990 |
Foreign currency translation adjustments | -284 | 35 |
Equity based compensation expense | 20 | 8 |
Noncontrolling interest, March 31 | $7,819 | $8,091 |
MANDATORILY_REDEEMABLE_NONCONT2
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Mandatorily redeemable noncontrolling interest [Line Items] | ||
Mandatorily redeemable noncontrolling interest, January 1 | $2,814 | |
Net income attributable to mandatorily redeemable noncontrolling interest | 20,035 | 21,303 |
Change in redemption value | -424 | |
Mandatorily redeemable noncontrolling interest, March 31 | 3,411 | |
Iknowtion [Member] | ||
Mandatorily redeemable noncontrolling interest [Line Items] | ||
Mandatorily redeemable noncontrolling interest, January 1 | 2,814 | 2,509 |
Net income attributable to mandatorily redeemable noncontrolling interest | 173 | 128 |
Change in redemption value | 424 | -175 |
Mandatorily redeemable noncontrolling interest, March 31 | $3,411 | $2,462 |
MANDATORILY_REDEEMABLE_NONCONT3
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (NARRATIVE) (DETAILS) | 3 Months Ended |
Mar. 31, 2015 | |
Mandatorily Redeemable Noncontrolling Interest [Abstract] | |
Description of mandatorily redeemable noncontrolling interest | The Company has recorded the mandatorily redeemable noncontrolling interest at the redemption value based on the corresponding EBITDA multiples as prescribed in the purchase and sale agreement at the end of each reporting period. At the end of each reporting period the changes in the redemption value are recorded in retained earnings. Since the EBITDA multiples as defined in the purchase and sale agreement are below the current market multiple, the Company has determined that there is no preferential treatment to the noncontrolling interest shareholders resulting in no impact to earnings per share. |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (ROLLFORWARD TABLE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Foreign Currency Translation Adjustment [Abstract] | ||
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, beginning balance | ($33,352) | ($10,581) |
Other comprehensive income before reclassifications - foreign currency translation adjustment | -10,999 | -1,758 |
Net current period other comprehensive income - foreign currency translation adjustment | -10,999 | -1,758 |
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, ending balance | -44,351 | -12,339 |
Derivative Valuation, Net of Tax | ||
Aggregate unrealized net gain/(loss) at beginning of year | -18,345 | -8,352 |
Other comprehensive income before reclassifications - derivative valuation, net of tax | -1,291 | -3,649 |
Amounts reclassified from accumulated other comprehensive income - derivative valuation, net of tax | 1,139 | 1,115 |
Net current period other comprehensive income - derivative valuation, net of tax | -152 | -2,534 |
Aggregate unrealized net gain/(loss) at end of period | -18,497 | -10,886 |
Other, Net of Tax | ||
Accumulated other comprehensive income (loss) - Other, net of tax | -577 | -1,653 |
Other comprehensive income before reclassifications - other, net of tax | -2,841 | 187 |
Amounts reclassified from accumulated other comprehensive income - other, net of tax | 246 | 89 |
Net current period other comprehensive income - other, net of tax | -2,595 | 276 |
Accumulated other comprehensive income (loss) - Other, net of tax at end of period | -3,172 | -1,377 |
Totals | ||
Accumulated other comprehensive income (loss), beginning balance | -52,274 | -20,586 |
Other comprehensive income before reclassifications - Totals | -15,131 | -5,220 |
Amounts reclassified from accumulated other comprehensive income - Totals | 1,385 | 1,204 |
Other comprehensive income (loss), net of tax | -13,746 | -4,016 |
Accumulated other comprehensive income (loss), ending balance | ($66,020) | ($24,602) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (INCOME STATEMENT CLASSIFICATION TABLE) (DETAILS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Presentation of Income Statement Reclassifications [Line Items] | ||
Other Comprehensive Income Loss Reclassified to Income | $1,385 | $1,204 |
Other Accumulated Other Comprehensive Income Loss [Member] | ||
Presentation of Income Statement Reclassifications [Line Items] | ||
Other Comprehensive Income Loss Reclassified to Income | -246 | -89 |
Net Income (Loss) [Member] | Derivative Valuation [Member] | ||
Presentation of Income Statement Reclassifications [Line Items] | ||
Other Comprehensive Income Loss Reclassified to Income | -1,139 | -1,115 |
Gain Loss on Foreign Currency Forward Contracts [Member] | Revenue [Member] | Derivative Valuation [Member] | ||
Presentation of Income Statement Reclassifications [Line Items] | ||
Other Comprehensive Income Loss Reclassified to Income | -1,708 | -1,570 |
Loss on Interest Rate Swaps [Member] | Interest Expenses [Member] | Derivative Valuation [Member] | ||
Presentation of Income Statement Reclassifications [Line Items] | ||
Other Comprehensive Income Loss Reclassified to Income | -257 | -258 |
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 | 826 | 713 |
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 | 28 | 6 |
Actuarial Loss on Defined Benefit Plan [Member] | Cost of Services [Member] | Other Accumulated Other Comprehensive Income Loss [Member] | ||
Presentation of Income Statement Reclassifications [Line Items] | ||
Other Comprehensive Income Loss Reclassified to Income | ($274) | ($95) |
NET_INCOME_PER_SHARE_DILUTED_S
NET INCOME PER SHARE (DILUTED SHARES TABLE) (DETAILS) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Shares used in basic earnings per share calculation | 48,370 | 50,045 |
Effect of dilutive securities: | ||
Stock options | 384 | 411 |
Restricted stock units | 401 | 517 |
Performance-based restricted stock units | 3 | |
Total effects of dilutive securities | 788 | 928 |
Shares used in dilutive earnings per share calculation | 49,158 | 50,973 |
NET_INCOME_PER_SHARE_NARRATIVE
NET INCOME PER SHARE (NARRATIVE) (DETAILS) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock Options [Member] | ||
Anti-dilutive options to purchase common stock [Line Items] | ||
Anti-dilutive securities | 0.1 | 0.1 |
Restricted Stock Units (RSUs) [Member] | ||
Anti-dilutive options to purchase common stock [Line Items] | ||
Anti-dilutive securities | 0.5 | 0.3 |
EQUITYBASED_COMPENSATION_PLANS1
EQUITY-BASED COMPENSATION PLANS (NARRATIVE) (DETAILS) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | $2,690,000 | $3,160,000 |
Restricted Stock Units (RSUs) [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | 2,600,000 | 3,000,000 |
Unrecognized Compensation Expense | 24,200,000 | |
Non-option Equity Awards Granted | 80,000 | 164,000 |
Cost of Services [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | 600,000 | 600,000 |
Selling General And Administrative Expenses [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Equity-based compensation expense | $2,100,000 | $2,600,000 |