Document and Entity Information
Document and Entity Information - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TELETECH HOLDINGS INC | |
Entity Central Index Key | 1,013,880 | |
Document Type | 10-Q/A | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Public Float | $ 495,904,505 | |
Entity Common Stock, Shares Outstanding | 48,300,694 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 93,842 | $ 77,316 |
Accounts receivable, net | 259,833 | 276,432 |
Prepaids and other current assets | 66,792 | 64,702 |
Deferred tax assets, net | 22,135 | 22,501 |
Income tax receivable | 2,052 | 4,532 |
Total current assets | 444,654 | 445,483 |
Long-term assets | ||
Property, plant and equipment, net | 159,669 | 150,212 |
Goodwill | 126,798 | 128,705 |
Deferred tax assets, net | 32,022 | 31,512 |
Other intangible assets, net | 53,036 | 59,905 |
Other long-term assets | 47,026 | 36,658 |
Total long-term assets | 418,551 | 406,992 |
Total assets | 863,205 | 852,475 |
Current liabilities | ||
Accounts payable | 41,608 | 37,019 |
Accrued employee compensation and benefits | 74,439 | 70,069 |
Other accrued expenses | 30,474 | 34,430 |
Income taxes payable | 5,755 | 10,141 |
Deferred tax liabilities, net | 33 | 0 |
Deferred revenue | 29,013 | 29,887 |
Other current liabilities | 20,890 | 17,085 |
Total current liabilities | 202,212 | 198,631 |
Long-term liabilities | ||
Line of credit. | 115,000 | 100,000 |
Deferred tax liabilities, net | 3,182 | 4,675 |
Deferred rent | 10,103 | 8,956 |
Other long-term liabilities | 73,727 | 74,149 |
Total long-term liabilities | 202,012 | 187,780 |
Total liabilities | $ 404,224 | $ 386,411 |
Commitments and contingencies (Note 10) | ||
Mandatorily redeemable noncontrolling interest | $ 3,410 | $ 2,814 |
Stockholders' equity | ||
Preferred stock - $0.01 par value: 10,000,000 shares authorized; zero shares outstanding as of June 30, 2015 and December 31, 2014 | 0 | 0 |
Common stock - $0.01 par value; 150,000,000 shares authorized; 48,232,405 and 48,452,852 shares outstanding as of June 30, 2015 and December 31, 2014, respectively | 483 | 485 |
Additional paid-in capital | 356,047 | 356,792 |
Treasury stock at cost: 33,819,848 and 33,599,401 shares as of June 30, 2015 and December 31, 2014, respectively | (535,507) | (527,595) |
Accumulated other comprehensive income (loss) | (74,751) | (52,274) |
Retained earnings | 701,714 | 677,859 |
Noncontrolling interest | 7,585 | 7,983 |
Total stockholders' equity | 455,571 | 463,250 |
Total liabilities and stockholders' equity | $ 863,205 | $ 852,475 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 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 | 48,232,405 | 48,452,852 |
Treasury stock, shares | 33,819,848 | 33,599,401 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Consolidated Statements of Comprehensive Income | ||||
Revenue | $ 310,223 | $ 295,490 | $ 635,744 | $ 597,711 |
Operating expenses | ||||
Cost of services | 223,617 | 212,315 | 456,601 | 426,102 |
Selling, general and administrative | 47,376 | 47,802 | 97,613 | 98,169 |
Depreciation and amortization | 15,680 | 14,089 | 31,043 | 27,259 |
Restructuring charges, net | 198 | 617 | 1,007 | 1,157 |
Total operating expenses | 286,871 | 274,823 | 586,264 | 552,687 |
Income from operations | 23,352 | 20,667 | 49,480 | 45,024 |
Other income (expense) | ||||
Interest income | 364 | 492 | 681 | 1,003 |
Interest expense | (1,676) | (1,861) | (3,374) | (3,551) |
Other income (expense), net | 1,294 | 4,249 | 987 | 5,250 |
Total other income (expense) | (18) | 2,880 | (1,706) | 2,702 |
Income before income taxes | 23,334 | 23,547 | 47,774 | 47,726 |
Benefit from (provision for) income taxes | (7,841) | (5,417) | (12,246) | (8,293) |
Net income | 15,493 | 18,130 | 35,528 | 39,433 |
Net income attributable to noncontrolling interest | (797) | (1,268) | (2,060) | (2,353) |
Net income attributable to TeleTech stockholders | 14,696 | 16,862 | 33,468 | 37,080 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | (6,062) | 7,010 | (17,345) | 5,287 |
Derivative valuation, gross | (4,662) | 17,780 | (6,307) | 13,863 |
Derivative valuation, tax effect | 1,845 | (6,775) | 3,338 | (5,393) |
Other, net of tax | 234 | 280 | (2,361) | 556 |
Total other comprehensive income (loss) | (8,645) | 18,295 | (22,675) | 14,313 |
Total comprehensive income (loss) | 6,848 | 36,425 | 12,853 | 53,746 |
Less: Comprehensive income attributable to noncontrolling interest | (731) | (1,167) | (1,537) | (2,159) |
Comprehensive income attributable to TeleTech stockholders | $ 6,117 | $ 35,258 | $ 11,316 | $ 51,587 |
Weighted average shares outstanding | ||||
Basic | 48,325 | 49,351 | 48,347 | 49,696 |
Diluted | 49,064 | 50,111 | 49,113 | 50,536 |
Net income per share attributable to TeleTech stockholders | ||||
Basic | $ 0.30 | $ 0.34 | $ 0.69 | $ 0.75 |
Diluted | $ 0.30 | $ 0.34 | $ 0.68 | $ 0.73 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | 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] |
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 | ||||||
Beginning balance,value at Dec. 31, 2014 | $ 463,250 | $ 0 | $ 485 | $ (527,595) | $ 356,792 | $ (52,274) | $ 677,859 | $ 7,983 |
Net income | 35,528 | 33,468 | ||||||
Net income excluding mandatorily redeemable noncontrolling interest | 35,203 | 1,735 | ||||||
Dividends to shareholders | (8,710) | (8,710) | ||||||
Adjustments to redemption value of mandatorily redeemable noncontrolling interest | (903) | (903) | ||||||
Dividends distributed to noncontrolling interest | (2,025) | (2,025) | ||||||
Foreign currency translation adjustments | (17,345) | (17,147) | (198) | |||||
Derivatives valuation, net of tax | (2,969) | (2,969) | ||||||
Vesting of restricted stock units, share | 251 | |||||||
Vesting of restricted stock units, value | (2,242) | $ 3 | 3,882 | (6,127) | ||||
Exercise of stock options, share | 29 | |||||||
Exercise of stock options, value | 432 | 455 | (23) | |||||
Excess tax benefit from equity-based awards | 274 | 274 | ||||||
Equity-based compensation expense | 5,221 | 5,131 | 90 | |||||
Purchases of common stock, share | (501) | |||||||
Purchases of common stock, value | (12,254) | $ (5) | (12,249) | |||||
Other, net of tax | $ (2,361) | (2,361) | ||||||
Preferred stock ending balance, share at Jun. 30, 2015 | 0 | 0 | ||||||
Common stock ending balance, share at Jun. 30, 2015 | 48,232,405 | 48,232 | ||||||
Ending balance,value at Jun. 30, 2015 | $ 455,571 | $ 0 | $ 483 | $ (535,507) | $ 356,047 | $ (74,751) | $ 701,714 | $ 7,585 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 35,528 | $ 39,433 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 31,043 | 27,259 |
Amortization of contract acquisition costs | 537 | 657 |
Amortization of debt issuance costs | 356 | 349 |
Imputed interest expense and fair value adjustments to contingent consideration | (123) | (3,710) |
Provision for doubtful accounts | 406 | 219 |
Gain on disposal of assets | (69) | 0 |
Deferred income taxes | (341) | 5,035 |
Excess tax benefit from equity-based awards | (409) | (1,050) |
Equity-based compensation expense | 5,278 | 5,881 |
Loss (gain) on foreign currency derivatives | 2,600 | (2,955) |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 9,191 | (9,238) |
Prepaids and other assets | 790 | (631) |
Accounts payable and accrued expenses | 13,282 | (22,965) |
Deferred revenue and other liabilities | (12,556) | (6,654) |
Net cash provided by operating activities | 85,513 | 31,630 |
Cash flows from investing activities | ||
Proceeds from sale of long lived assets | 116 | 135 |
Purchases of property, plant and equipment, net of acquisitions | (29,505) | (34,483) |
Investments in non-marketable equity investments | (9,000) | 0 |
Acquisitions, net of cash acquired of zero and $812, respectively | (1,775) | (8,732) |
Net cash used in investing activities | (40,164) | (43,080) |
Cash flows from financing activities | ||
Proceeds from line of credit | 1,185,200 | 1,001,500 |
Payments on line of credit | (1,170,200) | |
Proceeds from other debt | 0 | 0 |
Payments on other debt | (1,720) | (3,127) |
Payments of contingent consideration related to acquisitions | (11,883) | (8,547) |
Dividends paid to shareholders | (8,710) | 0 |
Dividends distributed to noncontrolling interest | (2,657) | (3,713) |
Proceeds from exercise of stock options | 432 | 313 |
Excess tax benefit from equity-based awards | 409 | 1,050 |
Purchase of treasury stock | (12,254) | (37,049) |
Payments of debt issuance costs | (35) | 0 |
Net cash used in financing activities | (21,418) | (51,073) |
Effect of exchange rate changes on cash and cash equivalents | (7,405) | 2,284 |
(Decrease) increase in cash and cash equivalents | 16,526 | (60,239) |
Cash and cash equivalents, beginning of period | 77,316 | 158,017 |
Cash and cash equivalents, end of period | 93,842 | 97,778 |
Supplemental disclosures | ||
Cash paid for interest | 2,693 | 2,670 |
Cash paid for income taxes | 7,761 | 7,486 |
Non-cash investing and financing activities | ||
Acquisition of equipment through increase in accounts payable | 2,625 | 1,420 |
Acquisition of long lived assets through capital leases | $ 5,353 | $ 0 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from investing activities | ||
Acquisitions, net of cash acquired of zero and $812, respectively | $ 0 | $ 812 |
OVERVIEW AND BASIS OF PRESENTAT
OVERVIEW AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 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 40,000 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, China, Costa Rica, Germany, Hong Kong, 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 state 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. During the three and six months ended June 30, 2015, an additional expense of $1.75 million was recorded as an additional estimated tax liability that should have been recorded in prior periods related to ongoing discussions with relevant government authorities related to site compliance with tax advantaged status. The total amount of $1.75 million should have been recorded as additional expense in the amount of $466 thousand in 2012, $406 thousand in 2013 $645 thousand in 2014 and $ 234 thousand in the first quarter of 2015. During the three months ended June 30, 2015, the Company recorded an additional $3.2 million loss related to foreign currency translation within O ther comprehensive income (loss) that should have been recorded in 2014 and the three months ended March 31, 2015 to correct for an error in translating the financial results of Sofica Group AD, which was acquired on February 28, 2014. Of the $3.2 million recorded, approximately $1.7 million and $1.5 million should have been recorded in the year ending December 31, 2014 and the three months ended March 31, 2015 respectively. The Company also recorded an additional $2.7 million loss to “ other, net of tax” within O ther comprehensive income (loss) in the three months ended March 31, 2015 and the six months ended June 30, 2015 related to our annual actuarial analysis for our Philippines pension liability that should have been recorded in the fourth quarter of 2014. The Company has evaluated the aggregate impact of these adjustments and concluded that these adjustments were not material to the previously issued or current period consolidated financial statements. 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 | 6 Months Ended |
Jun. 30, 2015 | |
ACQUISITIONS [ABSTRACT] | |
ACQUISITIONS | ( 2 ) ACQUISITIONS rogenSi In the third quarter of 2014, as an addition to the Customer Strategy Services (“CSS”) segment, the Company acquired substantially all operating assets of rogenSi Worldwide PTY, Ltd., a global leadership, change management, sales, performance training and consulting company. The total purchase price was $34.4 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 June 30, 2015, the fair value of the remaining contingent consideration was $ 9.0 million, of which $ 5.0 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 9,349 Goodwill 20,960 43,303 Accounts payable 708 Accrued employee compensation and benefits 2,203 Accrued expenses 1,146 Other 4,843 8,900 Total purchase price $ 34,403 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). During the second quarter of 2015, the Company recorded a negative fair value adjustment for contingent consideration of $0.5 million based on revised estimates noting lower pro fita bility than initially estimated. As of June 30, 2015, the fair value of the remaining contingent consideration was $ 3.1 million which was included in Other accrued expenses in the accompanying Consolidated Balance Sheets. Financial Impact of Acquired Businesses The acquired businesses purchased in 2014 noted above contributed revenues of $ 14.7 million and $ 27.3 million, and income from operations of $ 2.1 million and $ 3.2 million , inclusive of $ 0.7 million and $ 1.4 million of acquired intangible amortizati on, to the Company for the three and six months ended June 30, 2015 , respectively . 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 | 6 Months Ended |
Jun. 30, 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): Three Months Ended June 30, 2015 Gross Revenue Intersegment Sales Net Revenue Depreciation & Amortization Income from Operations Customer Management Services $ 219,316 $ - $ 219,316 $ 11,053 $ 13,324 Customer Growth Services 30,570 - 30,570 1,523 2,122 Customer Technology Services 38,094 (7) 38,087 2,195 3,250 Customer Strategy Services 22,250 - 22,250 909 4,656 Total $ 310,230 $ (7) $ 310,223 $ 15,680 $ 23,352 Three Months Ended June 30, 2014 Gross Revenue Intersegment Sales Net Revenue Depreciation & Amortization Income from Operations Customer Management Services $ 218,683 $ - $ 218,683 $ 10,169 $ 16,493 Customer Growth Services 28,875 - 28,875 1,468 1,831 Customer Technology Services 35,753 (16) 35,737 2,008 1,616 Customer Strategy Services 12,195 - 12,195 444 727 Total $ 295,506 $ (16) $ 295,490 $ 14,089 $ 20,667 Six Months Ended June 30, 2015 Gross Revenue Intersegment Sales Net Revenue Depreciation & Amortization Income from Operations Customer Management Services $ 462,325 $ - $ 462,325 $ 21,850 $ 35,026 Customer Growth Services 56,526 - 56,526 3,008 2,148 Customer Technology Services 73,815 (14) 73,801 4,359 5,259 Customer Strategy Services 43,092 - 43,092 1,826 7,047 Total $ 635,758 $ (14) $ 635,744 $ 31,043 $ 49,480 Six Months Ended June 30, 2014 Gross Revenue Intersegment Sales Net Revenue Depreciation & Amortization Income from Operations Customer Management Services $ 446,607 $ - $ 446,607 $ 19,634 $ 37,316 Customer Growth Services 57,780 - 57,780 3,024 3,601 Customer Technology Services 68,532 (19) 68,513 3,723 1,927 Customer Strategy Services 24,811 - 24,811 878 2,180 Total $ 597,730 $ (19) $ 597,711 $ 27,259 $ 45,024 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Capital Expenditures Customer Management Services $ 12,569 $ 14,587 $ 22,016 $ 24,499 Customer Growth Services 1,832 1,289 3,137 1,669 Customer Technology Services 1,786 3,407 4,068 8,038 Customer Strategy Services 280 105 284 277 Total $ 16,467 $ 19,388 $ 29,505 $ 34,483 June 30, 2015 December 31, 2014 Total Assets Customer Management Services 517,396 $ 514,957 Customer Growth Services 84,079 88,394 Customer Technology Services 171,581 159,441 Customer Strategy Services 90,149 89,683 Total $ 863,205 $ 852,475 June 30, 2015 December 31, 2014 Goodwill Customer Management Services $ 24,265 $ 25,871 Customer Growth Services 30,395 30,395 Customer Technology Services 42,709 42,709 Customer Strategy Services 29,429 29,730 Total $ 126,798 $ 128,705 The following table presents revenue based upon the geographic location where the services are provided ( in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue United States $ 157,740 $ 137,596 $ 329,393 $ 284,065 Philippines 85,585 85,541 170,572 172,207 Latin America 37,623 43,258 78,177 85,304 Europe / Middle East / Africa 19,290 22,267 38,603 41,484 Asia Pacific 8,437 5,358 16,111 11,758 Canada 1,548 1,470 2,888 2,893 Total $ 310,223 $ 295,490 $ 635,744 $ 597,711 |
SIGNIFICANT CLIENTS AND OTHER C
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2015 and 2014. This client operates in the communications industry and is included in the C MS segment. This client contributed 11.5% and 12.0% of total revenue for the three months ended June 30, 2015 and 2014, respectively. This client contributed 10.9% and 11.8% of total revenue for the six months ended June 30, 2015 and 2014, respectively. This client had an outstanding receivable balance of $ 29.2 million and $28.6 million as of June 30, 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 June 30, 2015. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2015 | |
GOODWILL [ABSTRACT] | |
GOODWILL. | (5) GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill con sisted of the following ( in thousands): December 31, 2014 Acquisitions/ Adjustments Impairments Effect of Foreign Currency June 30, 2015 Customer Management Services $ 25,871 $ - $ - $ (1,606) $ 24,265 Customer Growth Services 30,395 - - - 30,395 Customer Technology Services 42,709 - - - 42,709 Customer Strategy Services 29,730 100 - (401) 29,429 Total $ 128,705 $ 100 $ - $ (2,007) $ 126,798 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 June 30 , 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 June 30 , 2015 , the updated fair values continue to exceed the carrying values for Revana (approximately 1 4 %) and WebMetro (approximately 1 5 %). 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2015 , the Company has not experienced, nor does it anticipate , any issues related to derivative counterparty defaults. The following table summarizes the aggregate unrealized net gain or loss in Accumulated o ther comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 (in thousands and net of tax): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Aggregate unrealized net gain/(loss) at beginning of period $ (18,497) $ (10,886) $ (18,345) $ (8,352) Add: Net gain/(loss) from change in fair value of cash flow hedges (4,119) 9,946 (5,410) 6,297 Less: Net (gain)/loss reclassified to earnings from effective hedges 1,302 1,059 2,441 2,174 Aggregate unrealized net gain/(loss) at end of period $ (21,314) $ 119 $ (21,314) $ 119 The Company's foreign exchange cash flow hedging instruments as of June 30, 2015 and December 31, 2014 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts unless noted otherwise . As of June 30, 2015 Local Currency Notional Amount U.S. Dollar Notional Amount % Maturing in the Next 12 Months Contracts Maturing Through Philippine Peso 16,856,000 380,216 (1) 43.0 % February 2020 Mexican Peso 2,684,000 183,258 28.2 % May 2020 $ 563,474 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 June 30, 2015 and December 31, 2014. The Company's interest rate swap arrangement s as of June 30, 2015 and December 31, 2014 were as follows: Notional Amount Variable Rate Received Fixed Rate Paid Contract Commencement Date Contract Maturity Date As of June 30, 2015 $ 25 million 1 - month LIBOR 2.55 % April 2012 April 2016 and December 31, 2014 15 million 1 - month LIBOR 3.14 % May 2012 May 2017 $ 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 June 30, 2015 and December 31, 2014 the total notional amount s of the Company's forward contracts used as fair value hedges were $ 241.3 million and $ 2 42 .5 million, respectively. Derivative Valuation and Settlements The Company's derivatives as of June 30, 2015 and December 31, 2014 were as follows ( in thousands): June 30, 2015 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 $ 578 $ - $ 47 Other long-term assets 2 - - Other current liabilities (14,400) (951) (1,871) Other long-term liabilities (21,985) (158) - Total fair value of derivatives, net $ (35,805) $ (1,109) $ (1,824) December 31, 2014 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 June 30, 2015 and 2014 were as follows (i n thousands): Three Months Ended June 30, 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 $ (1,453) $ 152 $ 10,049 $ (103) Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ (2,505) $ - $ (1,472) $ - Interest Expense - (262) - (265) Three Months Ended June 30, 2015 2014 Designation: Not Designated as Hedging Instruments Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Foreign Exchange Derivative classification: Option and Forward Contracts Fair Value Option and Forward Contracts Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Costs of services $ - $ - $ - $ - Other income (expense), net $ - $ (2,416) $ - $ (2,825) The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the six months ended June 30, 2015 and 2014 were as follows ( in thousands): Six Months Ended June 30, 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 $ (2,443) $ 301 $ 6,457 $ (160) Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ (4,213) $ - $ (3,043) $ - Interest Expense - (519) - (523) Six Months Ended June 30, 2015 2014 Designation : Not Designated as Hedging Instruments Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Foreign Exchange Derivative classification: Option and Forward Contracts Fair Value Option and 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 $ - $ (2,496) $ - $ (2,206) |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2015 and December 31, 2014, the Company had $115.0 million and $100.0 million, respectively, of borrowings outstanding under the Credit Agreement. During the second quarter of 2015 outstanding borrowings accrued interest at a n 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 June 30, 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 June 30, 2015 and December 31, 2014 (in thousands): As of June 30, 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 $ - $ (35,805) $ - $ (35,805) Interest rate swaps - (1,109) - (1,109) Fair value hedges - (1,824) - (1,824) Total net derivative asset (liability) $ - $ (38,738) $ - $ (38,738) 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 June 30, 2015 and December 31, 2014 ( in thousands): As of June 30, 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 $ - $ (9,645) $ - Derivative instruments, net - (38,738) - Contingent consideration - - (12,611) Total liabilities $ - $ (48,383) $ (12,611) 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 record interest expense each period using the effective interest method until the future value of these contingent payables reaches their expected future value of $ 13.1 million. Interest expense related to all recorded contingent payables is included in Interest expense in the Consolidated Statements of Comprehensive Income (Loss) . During the second and fourth quarters of 2014, the Company recorded fair value adjustments of the contingent consideration associated with the TSG reporting unit within the CTS segment based on revised estimates noting achievement of the targeted 2014 and 2015 EBITDA was remote. Accordingly, a $4.0 million and $3.9 million, respectively, reductions in the payable were recorded as of June 30, 2014 and December 31, 2014 and were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). During the third and fourth quarters of 2014, the Company recorded fair value adjustments of the contingent consideration associated with the Sofica reporting unit within the CMS segment of $1.8 million and $0.6 million, respectively, as the Company's revised estimates reflected Sofica exceeding its EBITDA targets for both 2014 and 2015. Accordingly, the $1.8 million and $0.6 million increases in the payable were recorded as of September 30, 2014 and December 31, 2014 and were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). During the third quarter of 2014, the Company recorded a fair value adjustment of the contingent consideration associated with the WebMetro reporting unit within the CGS segment based on revised estimates noting achievement of the targeted 2014 EBITDA was remote. Accordingly, a $1.7 million reduction in the payable was recorded as of September 30, 2014 and was included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). During the fourth quarter of 2014, the Company recorded a fair value adjustment of the contingent consideration associated with the rogenSi reporting unit within the CSS segment based on revised estimates reflecting rogenSi exceeding its EBITDA targets for 2014. Accordingly a $0.5 million increase in the payable was recorded as of December 31, 2014 and was included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). During the second quar ter of 2015, the Company recorded a fair value adjustment of the contingent consideration associated with the Sofica reporting unit within the CMS segment based on revised estimates reflecting Sofica earnings will be lower than revised estimates for 2015. Accordingly a $0.5 million decrease in the payable was recorded as of June 30, 2015 and was included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). A rollforward of the activity in the Company's fair value of the contingent consideration payable is as follows ( in thousands): December 31, 2014 Acquisitions Payments Imputed Interest / Adjustments June 30, 2015 iKnowtion $ 2,265 $ - $ (1,800) $ 24 $ 489 Guidon 1,000 - (1,000) - - TSG - - - - - WebMetro - - - - - Sofica 6,317 - (2,838) (406) 3,073 rogenSi 15,162 - (6,372) 259 9,049 Total $ 24,744 $ - $ (12,010) $ (123) $ 12,611 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 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. In accordance with ASC 740, the Company recorded a liability during the second quarter of 2015 of $1.75 million, inclusive of penalties and interest, for an uncertain tax positions. See Note 1. When there is a change in judgment concerning the recovery of deferred tax assets in future periods, a valuation allowance is recorded into earnings during the quarter in which the change in judgment occurred. During the second quarter of 2015, the Company increased its valuation allowance by $0.8 million. This net increase was related to a $0.3 million increase in the Netherlands and Israel for deferred tax assets that do not meet the “more likely than not” standard under current accounting guidance, a $0.3 million increase related to deferred tax assets in the Philippines related to the future utilization of NOL's, and a $0.2 million increase in various other jurisdictions. As of June 30, 2015, the Company had $ 54.2 million of gross deferred tax assets (after a $ 10.5 million valuation allowance) and net deferred tax assets (after deferred tax liabilities) of $ 50.9 million related to the U.S. and international tax jurisdictions whose recoverability is dependent upon future profitability. The effective tax rate for the three and six months ended June 30, 2015 was 33.6 % and 2 5 . 6 %, respectively. The effective tax rate for the three and six months ended June 30, 2014 was 23.0% and 17.4%, 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) , for rogenSi in Hong Kong for the tax year 2014 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 IMPAI
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | 6 Months Ended |
Jun. 30, 2015 | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (9) RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES Restructuring Charges During the three and six months ended June 30, 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 and six months ended June 30, 2015 and 2014, respectively, is as follows ( in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Reduction in force Customer Management Services $ 39 $ 535 $ 815 $ 1,046 Customer Growth Services - 8 - 37 Customer Technology Services - 74 - 74 Customer Strategy Services 159 - 192 - Total $ 198 $ 617 $ 1,007 $ 1,157 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 - 1,007 1,007 Payments - (1,838) (1,838) Change in estimates - - - Balance as of June 30, 2015 $ - $ 1,240 $ 1,240 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 Sheet s . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 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 , dividends and other strategic activities, such as the acquisitions described in Note 2. As of June 30, 2015 and December 31, 2014, the Company had borrowings of $115.0 million and $100.0 million, respectively, under its Credit Agreement, and its average daily utilization was $323.5 million and $280.5 million for the six months ended June 30, 2015 and 2014, respectively. After consideration for issued letters of credit under the Credit Agreement, totaling $3.2 million, and current level of availability based on covenant calculations, the Company's remaining borrowing capacity was approximately $ 385 million as of June 30, 2015. As of June 30, 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 June 30, 2015, no foreign loans were outstanding. Letters of Credit As of June 30, 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 June 30, 2015, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $ 5.6 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 | 6 Months Ended |
Jun. 30, 2015 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrollling Interest | (11) NONCONTROLLING INTEREST The following table reconciles equity attributable to noncontrolling interest (in thousands): Six Months Ended June 30, 2015 2014 Noncontrolling interest, January 1 $ 7,983 $ 8,081 Net income attributable to noncontrolling interest 1,735 2,074 Dividends distributed to noncontrolling interest (2,025) (2,025) Foreign currency translation adjustments (198) 85 Equity-based compensation expense 90 13 Noncontrolling interest, June 30 $ 7,585 $ 8,228 |
MANDATORILY REDEEMABLE NONCONTR
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST | 6 Months Ended |
Jun. 30, 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 included in the table below (in thousands) . Six months ended June 30, 2015 2014 Mandatorily redeemable noncontrolling interest, January 1 $ 2,814 $ 2,509 Net income attributable to mandatorily redeemable noncontrolling interest 325 279 Dividends distributed to mandatorily redeemable noncontrolling interest (632) (1,244) Change in redemption value 903 1,730 Mandatorily redeemable noncontrolling interest, June 30 $ 3,410 $ 3,274 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 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 comp rehensive 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 (17,147) (5,410) (2,815) (25,372) Amounts reclassified from accumulated other comprehensive income (loss) - 2,441 454 2,895 Net current period other comprehensive income (loss) (17,147) (2,969) (2,361) (22,477) Accumulated other comprehensive income (loss) at June 30, 2015 $ (50,499) $ (21,314) $ (2,938) $ (74,751) Accumulated other comprehensive income (loss) at December 31, 2013 $ (10,581) $ (8,352) $ (1,653) $ (20,586) Other comprehensive income (loss) before reclassifications 5,202 6,297 33 11,532 Amounts reclassified from accumulated other comprehensive income (loss) - 2,174 523 2,697 Net current period other comprehensive income (loss) 5,202 8,471 556 14,229 Accumulated other comprehensive income (loss) at June 30, 2014 $ (5,379) $ 119 $ (1,097) $ (6,357) The following table presents the classification and amount of the reclassifications from accumulated other comprehensive income (loss) to the statement of comprehensive income (loss) (in thousands): For the Three Months Ended June 30, 2015 June 30, 2014 Statement of Comprehensive Income (Loss) Classification Derivative valuation Gain (loss) on foreign currency forward exchange contracts $ (2,506) $ (1,472) Revenue Loss on interest rate swaps (262) (265) Interest expense Tax effect 1,467 678 Provision for income taxes $ (1,301) $ (1,059) Net income (loss) Other Actuarial loss on defined benefit plan $ (230) $ (280) Cost of services Tax effect 22 18 Provision for income taxes $ (208) $ (262) Net income (loss) For the Six Months Ended June 30, 2015 June 30, 2014 Statement of Comprehensive Income (Loss) Classification Derivative valuation Gain (loss) on foreign currency forward exchange contracts $ (4,213) $ (3,043) Revenue Loss on interest rate swaps (519) (523) Interest expense Tax effect 2,291 1,392 Provision for income taxes $ (2,441) $ (2,174) Net income (loss) Other Actuarial loss on defined benefit plan $ (504) $ (556) Cost of services Tax effect 50 33 Provision for income taxes $ (454) $ (523) Net income (loss) |
NET INCOME PER SHARE
NET INCOME PER SHARE | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Shares used in basic earnings per share calculation 48,325 49,351 48,347 49,696 Effect of dilutive securities: Stock options 397 425 392 419 Restricted stock units 321 335 358 421 Performance-based restricted stock units 21 - 16 - Total effects of dilutive securities 739 760 766 840 Shares used in dilutive earnings per share calculation 49,064 50,111 49,113 50,536 For the three months ended June 30, 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 six months ended June 30, 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 June 30, 2015 and 2014, RSUs of 0.3 million and 0.1 million, respectively, were outstanding, but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the six months ended June 30, 2015 and 2014, restricted stock units (“RSUs”) of 0.3 million and 0.1 million, respectively, were outstanding, but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. |
EQUITY-BASED COMPENSATION PLANS
EQUITY-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2015 and 2014, the Company recognized total compensation expense of $ 2.6 million and $ 5.3 million and $2.7 million and $5.9 million, respectively. Of the total compensation expense, $ 0.5 million and $ 1.1 million was recognized in Cost of services and $ 2.1 million and $ 4.2 million was recognized in Selling, general and administrative during the three and six months ended June 30, 2015. During the three and six months ended June 30, 2014, the Company recognized compensation expense of $0.5 million and $1.1 million in Cost of Services and $2. 2 million and $4.8 million, in Selling, general and administrative, respectively. Restricted Stock Unit Grants During the six months ended June 30, 2015 and 2014, the Company granted 169,252 and 210,176 RSUs, respectively, to new and existing employees, which vest in equal installments ove r four or five years. The Company recognized compensation expense related to RSUs of $ 2.5 million and $ 5.1 million for the three and six months ended June 30, 2015 , respectively. The Company recognized compensation expense related to RSUs of $2.6 million and $5.7 million for the three and six months ended June 30, 2014, respectively. As of June 30, 2015, there was approximately $ 23.2 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 PRESENT23
OVERVIEW AND BASIS OF PRESENTATION (POLICIES) | 6 Months Ended |
Jun. 30, 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 40,000 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, China, Costa Rica, Germany, Hong Kong, 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. 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 state 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 | 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) | 6 Months Ended |
Jun. 30, 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 9,349 Goodwill 20,960 43,303 Accounts payable 708 Accrued employee compensation and benefits 2,203 Accrued expenses 1,146 Other 4,843 8,900 Total purchase price $ 34,403 |
SEGMENT INFORMATION (TABLES)
SEGMENT INFORMATION (TABLES) | 6 Months Ended |
Jun. 30, 2015 | |
SEGMENT INFORMATION [ABSTRACT] | |
Schedule of Segment Selected Financial Data | Three Months Ended June 30, 2015 Gross Revenue Intersegment Sales Net Revenue Depreciation & Amortization Income from Operations Customer Management Services $ 219,316 $ - $ 219,316 $ 11,053 $ 13,324 Customer Growth Services 30,570 - 30,570 1,523 2,122 Customer Technology Services 38,094 (7) 38,087 2,195 3,250 Customer Strategy Services 22,250 - 22,250 909 4,656 Total $ 310,230 $ (7) $ 310,223 $ 15,680 $ 23,352 Three Months Ended June 30, 2014 Gross Revenue Intersegment Sales Net Revenue Depreciation & Amortization Income from Operations Customer Management Services $ 218,683 $ - $ 218,683 $ 10,169 $ 16,493 Customer Growth Services 28,875 - 28,875 1,468 1,831 Customer Technology Services 35,753 (16) 35,737 2,008 1,616 Customer Strategy Services 12,195 - 12,195 444 727 Total $ 295,506 $ (16) $ 295,490 $ 14,089 $ 20,667 Six Months Ended June 30, 2015 Gross Revenue Intersegment Sales Net Revenue Depreciation & Amortization Income from Operations Customer Management Services $ 462,325 $ - $ 462,325 $ 21,850 $ 35,026 Customer Growth Services 56,526 - 56,526 3,008 2,148 Customer Technology Services 73,815 (14) 73,801 4,359 5,259 Customer Strategy Services 43,092 - 43,092 1,826 7,047 Total $ 635,758 $ (14) $ 635,744 $ 31,043 $ 49,480 Six Months Ended June 30, 2014 Gross Revenue Intersegment Sales Net Revenue Depreciation & Amortization Income from Operations Customer Management Services $ 446,607 $ - $ 446,607 $ 19,634 $ 37,316 Customer Growth Services 57,780 - 57,780 3,024 3,601 Customer Technology Services 68,532 (19) 68,513 3,723 1,927 Customer Strategy Services 24,811 - 24,811 878 2,180 Total $ 597,730 $ (19) $ 597,711 $ 27,259 $ 45,024 Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Capital Expenditures Customer Management Services $ 12,569 $ 14,587 $ 22,016 $ 24,499 Customer Growth Services 1,832 1,289 3,137 1,669 Customer Technology Services 1,786 3,407 4,068 8,038 Customer Strategy Services 280 105 284 277 Total $ 16,467 $ 19,388 $ 29,505 $ 34,483 June 30, 2015 December 31, 2014 Total Assets Customer Management Services 517,396 $ 514,957 Customer Growth Services 84,079 88,394 Customer Technology Services 171,581 159,441 Customer Strategy Services 90,149 89,683 Total $ 863,205 $ 852,475 June 30, 2015 December 31, 2014 Goodwill Customer Management Services $ 24,265 $ 25,871 Customer Growth Services 30,395 30,395 Customer Technology Services 42,709 42,709 Customer Strategy Services 29,429 29,730 Total $ 126,798 $ 128,705 |
Schedule of Revenue by Geographic Area | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue United States $ 157,740 $ 137,596 $ 329,393 $ 284,065 Philippines 85,585 85,541 170,572 172,207 Latin America 37,623 43,258 78,177 85,304 Europe / Middle East / Africa 19,290 22,267 38,603 41,484 Asia Pacific 8,437 5,358 16,111 11,758 Canada 1,548 1,470 2,888 2,893 Total $ 310,223 $ 295,490 $ 635,744 $ 597,711 |
GOODWILL (TABLES)
GOODWILL (TABLES) | 6 Months Ended |
Jun. 30, 2015 | |
GOODWILL [ABSTRACT] | |
Schedule of Goodwill Rollforward | December 31, 2014 Acquisitions/ Adjustments Impairments Effect of Foreign Currency June 30, 2015 Customer Management Services $ 25,871 $ - $ - $ (1,606) $ 24,265 Customer Growth Services 30,395 - - - 30,395 Customer Technology Services 42,709 - - - 42,709 Customer Strategy Services 29,730 100 - (401) 29,429 Total $ 128,705 $ 100 $ - $ (2,007) $ 126,798 |
DERIVATIVES (TABLES)
DERIVATIVES (TABLES) | 6 Months Ended |
Jun. 30, 2015 | |
DERIVATIVES [ABSTRACT] | |
Schedule of Cash Flow Hedges OCI Rollforward | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Aggregate unrealized net gain/(loss) at beginning of period $ (18,497) $ (10,886) $ (18,345) $ (8,352) Add: Net gain/(loss) from change in fair value of cash flow hedges (4,119) 9,946 (5,410) 6,297 Less: Net (gain)/loss reclassified to earnings from effective hedges 1,302 1,059 2,441 2,174 Aggregate unrealized net gain/(loss) at end of period $ (21,314) $ 119 $ (21,314) $ 119 |
Schedule of Notional Amounts of Outstanding Cash Flow Hedges | As of June 30, 2015 Local Currency Notional Amount U.S. Dollar Notional Amount % Maturing in the Next 12 Months Contracts Maturing Through Philippine Peso 16,856,000 380,216 (1) 43.0 % February 2020 Mexican Peso 2,684,000 183,258 28.2 % May 2020 $ 563,474 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 June 30, 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 June 30, 2015 $ 25 million 1 - month LIBOR 2.55 % April 2012 April 2016 and December 31, 2014 15 million 1 - month LIBOR 3.14 % May 2012 May 2017 $ 40 million |
Schedule of Derivatives Instruments on Balance Sheet | June 30, 2015 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 $ 578 $ - $ 47 Other long-term assets 2 - - Other current liabilities (14,400) (951) (1,871) Other long-term liabilities (21,985) (158) - Total fair value of derivatives, net $ (35,805) $ (1,109) $ (1,824) December 31, 2014 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 June 30, 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 $ (1,453) $ 152 $ 10,049 $ (103) Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ (2,505) $ - $ (1,472) $ - Interest Expense - (262) - (265) Three Months Ended June 30, 2015 2014 Designation: Not Designated as Hedging Instruments Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Foreign Exchange Derivative classification: Option and Forward Contracts Fair Value Option and Forward Contracts Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Costs of services $ - $ - $ - $ - Other income (expense), net $ - $ (2,416) $ - $ (2,825) Six Months Ended June 30, 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 $ (2,443) $ 301 $ 6,457 $ (160) Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ (4,213) $ - $ (3,043) $ - Interest Expense - (519) - (523) Six Months Ended June 30, 2015 2014 Designation : Not Designated as Hedging Instruments Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Foreign Exchange Derivative classification: Option and Forward Contracts Fair Value Option and 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 $ - $ (2,496) $ - $ (2,206) |
FAIR VALUE (TABLES)
FAIR VALUE (TABLES) | 6 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE [Abstract] | |
Schedule of Fair Value Derivative Assets and Liabilities | As of June 30, 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 $ - $ (35,805) $ - $ (35,805) Interest rate swaps - (1,109) - (1,109) Fair value hedges - (1,824) - (1,824) Total net derivative asset (liability) $ - $ (38,738) $ - $ (38,738) 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 June 30, 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 $ - $ (9,645) $ - Derivative instruments, net - (38,738) - Contingent consideration - - (12,611) Total liabilities $ - $ (48,383) $ (12,611) 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 | December 31, 2014 Acquisitions Payments Imputed Interest / Adjustments June 30, 2015 iKnowtion $ 2,265 $ - $ (1,800) $ 24 $ 489 Guidon 1,000 - (1,000) - - TSG - - - - - WebMetro - - - - - Sofica 6,317 - (2,838) (406) 3,073 rogenSi 15,162 - (6,372) 259 9,049 Total $ 24,744 $ - $ (12,010) $ (123) $ 12,611 |
RESTRUCTURING CHARGES AND IMP29
RESTRUCTURING CHARGES AND IMPAIRMENT (TABLES) | 6 Months Ended |
Jun. 30, 2015 | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | |
Schedule of Restructuring Liabilities | Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Reduction in force Customer Management Services $ 39 $ 535 $ 815 $ 1,046 Customer Growth Services - 8 - 37 Customer Technology Services - 74 - 74 Customer Strategy Services 159 - 192 - Total $ 198 $ 617 $ 1,007 $ 1,157 |
Schedule of Restructuring Liability Rollforward | Closure of Delivery Centers Reduction in Force Total Balance as of December 31, 2014 $ - $ 2,071 $ 2,071 Expense - 1,007 1,007 Payments - (1,838) (1,838) Change in estimates - - - Balance as of June 30, 2015 $ - $ 1,240 $ 1,240 |
NONCONTROLLING INTEREST (TABLES
NONCONTROLLING INTEREST (TABLES) | 6 Months Ended |
Jun. 30, 2015 | |
NONCONTROLLING INTEREST [Abstract] | |
Noncontrolling Interest Rollforward | Six Months Ended June 30, 2015 2014 Noncontrolling interest, January 1 $ 7,983 $ 8,081 Net income attributable to noncontrolling interest 1,735 2,074 Dividends distributed to noncontrolling interest (2,025) (2,025) Foreign currency translation adjustments (198) 85 Equity-based compensation expense 90 13 Noncontrolling interest, June 30 $ 7,585 $ 8,228 |
MANDATORILY REDEEMABLE NONCON31
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (TABLES) | 6 Months Ended |
Jun. 30, 2015 | |
Mandatorily Redeemable Noncontrolling Interest [Abstract] | |
Mandatorily Redeemable Noncontrolling Interest Rollforward | Six months ended June 30, 2015 2014 Mandatorily redeemable noncontrolling interest, January 1 $ 2,814 $ 2,509 Net income attributable to mandatorily redeemable noncontrolling interest 325 279 Dividends distributed to mandatorily redeemable noncontrolling interest (632) (1,244) Change in redemption value 903 1,730 Mandatorily redeemable noncontrolling interest, June 30 $ 3,410 $ 3,274 |
ACCUMULATED OTHER COMPREHENSI32
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (TABLES) | 6 Months Ended |
Jun. 30, 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 (17,147) (5,410) (2,815) (25,372) Amounts reclassified from accumulated other comprehensive income (loss) - 2,441 454 2,895 Net current period other comprehensive income (loss) (17,147) (2,969) (2,361) (22,477) Accumulated other comprehensive income (loss) at June 30, 2015 $ (50,499) $ (21,314) $ (2,938) $ (74,751) Accumulated other comprehensive income (loss) at December 31, 2013 $ (10,581) $ (8,352) $ (1,653) $ (20,586) Other comprehensive income (loss) before reclassifications 5,202 6,297 33 11,532 Amounts reclassified from accumulated other comprehensive income (loss) - 2,174 523 2,697 Net current period other comprehensive income (loss) 5,202 8,471 556 14,229 Accumulated other comprehensive income (loss) at June 30, 2014 $ (5,379) $ 119 $ (1,097) $ (6,357) |
Income Statement Location of Adjustments Reclassified from Accumulated Other Comprehensive Income to Income | For the Three Months Ended June 30, 2015 June 30, 2014 Statement of Comprehensive Income (Loss) Classification Derivative valuation Gain (loss) on foreign currency forward exchange contracts $ (2,506) $ (1,472) Revenue Loss on interest rate swaps (262) (265) Interest expense Tax effect 1,467 678 Provision for income taxes $ (1,301) $ (1,059) Net income (loss) Other Actuarial loss on defined benefit plan $ (230) $ (280) Cost of services Tax effect 22 18 Provision for income taxes $ (208) $ (262) Net income (loss) For the Six Months Ended June 30, 2015 June 30, 2014 Statement of Comprehensive Income (Loss) Classification Derivative valuation Gain (loss) on foreign currency forward exchange contracts $ (4,213) $ (3,043) Revenue Loss on interest rate swaps (519) (523) Interest expense Tax effect 2,291 1,392 Provision for income taxes $ (2,441) $ (2,174) Net income (loss) Other Actuarial loss on defined benefit plan $ (504) $ (556) Cost of services Tax effect 50 33 Provision for income taxes $ (454) $ (523) Net income (loss) |
NET INCOME PER SHARE (TABLES)
NET INCOME PER SHARE (TABLES) | 6 Months Ended |
Jun. 30, 2015 | |
NET INCOME PER SHARE [Abstract] | |
Schedule of Diluted Shares Calculation | Three months ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Shares used in basic earnings per share calculation 48,325 49,351 48,347 49,696 Effect of dilutive securities: Stock options 397 425 392 419 Restricted stock units 321 335 358 421 Performance-based restricted stock units 21 - 16 - Total effects of dilutive securities 739 760 766 840 Shares used in dilutive earnings per share calculation 49,064 50,111 49,113 50,536 |
OVERVIEW AND BASIS OF PRESENT34
OVERVIEW AND BASIS OF PRESENTATION (NARRATIVE) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
UNUSUAL OR INFREQUENT ITEM [Line Items] | ||||||||
Other comprehensive income before reclassifications - foreign currency translation adjustment | $ (17,147) | $ 5,202 | ||||||
Other, net of tax | $ 234 | $ 280 | (2,361) | $ 556 | ||||
Sofica [Member] | ||||||||
UNUSUAL OR INFREQUENT ITEM [Line Items] | ||||||||
Other comprehensive income before reclassifications - foreign currency translation adjustment | $ 3,200 | $ 1,500 | $ 1,700 | |||||
Philippines pension liability [Member] | ||||||||
UNUSUAL OR INFREQUENT ITEM [Line Items] | ||||||||
Other, net of tax | 2,700 | |||||||
Government Authorities [Member] | ||||||||
UNUSUAL OR INFREQUENT ITEM [Line Items] | ||||||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 234 | $ 1,750 | $ 645 | $ 406 | $ 466 |
ACQUISITIONS (ASSETS ACQUIRED T
ACQUISITIONS (ASSETS ACQUIRED TABLE) (DETAILS) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Aug. 08, 2014 | Feb. 28, 2014 |
Business Acquisition [Line Items] | ||||
Total deferred tax assets, net | $ 54,200 | |||
Goodwill | 126,798 | $ 128,705 | ||
Accrued employee compensation and benefits | $ 74,439 | $ 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 | 9,349 | |||
Goodwill | 20,960 | |||
Total assets acquired | 43,303 | |||
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 | $ 34,403 |
ACQUISITIONS (NARRATIVE) (DETAI
ACQUISITIONS (NARRATIVE) (DETAILS) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | ||
Feb. 28, 2014 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Aug. 08, 2014 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||||
Future Value of Liabilities Incurred From Business Acquisitions | $ 13,100 | $ 13,100 | ||||
Valuation Technique on Contingent Consideration | 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 record interest expense each period using the effective interest method until the future value of these contingent payables reaches their expected future value of $13.1 million. Interest expense related to all recorded contingent payables is included in Interest expense in the Consolidated Statements of Comprehensive Income (Loss). | |||||
Contingent Consideration, at fair value | 12,611 | $ 12,611 | $ 24,744 | |||
Revenue of Acquirees since Acquisition Date, Actual | 14,700 | 27,300 | ||||
Income (loss) from operations of Acquirees since Acquisition Date, Actual | 2,100 | 3,200 | ||||
Business Combination Pro Forma Information Amortization Expense of Acquirees Since Acquisition | 700 | 1,400 | ||||
Sofica [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of Acquisition | Feb. 28, 2014 | |||||
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 | |||||
Cost of Acquired Entity, Up Front Cash Consideration | 9,400 | |||||
Future Value of Liabilities Incurred From Business Acquisitions | $ 3,800 | |||||
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 | |||||
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 | |||||
Contingent Consideration, at Fair Value, Current Portion | 3,100 | 3,100 | ||||
rogenSi [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of Acquisition | Aug. 8, 2014 | |||||
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 | $ 34,403 | |||||
Cost of Acquired Entity, Up Front Cash Consideration | 18,100 | |||||
Future Value of Liabilities Incurred From Business Acquisitions | $ 15,300 | |||||
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 | |||||
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 | |||||
Contingent Consideration, at Fair Value, Current Portion | 5,000 | 5,000 | ||||
Contingent Consideration, at Fair Value, Noncurrent Portion | $ 4,000 | $ 4,000 | ||||
CafeX [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cost Method Investments Description | the Company invested $9.0 million in CafeX Communications, Inc. (“CafeX”) through the purchase of a portion of the Series B Preferred Stock of CafeX. After the transaction, the Company owns 17.3% of the total equity of CafeX. |
SEGMENT INFORMATION (SEGMENT FI
SEGMENT INFORMATION (SEGMENT FINANCIALS) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Gross Revenue | $ 310,230 | $ 295,506 | $ 635,758 | $ 597,730 | |
Intersegment Sales | (7) | (16) | (14) | (19) | |
Net Revenue | 310,223 | 295,490 | 635,744 | 597,711 | |
Depreciation and amortization | 15,680 | 14,089 | 31,043 | 27,259 | |
Income (Loss) from Operations | 23,352 | 20,667 | 49,480 | 45,024 | |
Capital Expenditures | 16,467 | 19,388 | 29,505 | 34,483 | |
Total Assets | 863,205 | 863,205 | $ 852,475 | ||
Goodwill | 126,798 | 126,798 | 128,705 | ||
Customer Management Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 219,316 | 218,683 | 462,325 | 446,607 | |
Intersegment Sales | 0 | 0 | 0 | 0 | |
Net Revenue | 219,316 | 218,683 | 462,325 | 446,607 | |
Depreciation and amortization | 11,053 | 10,169 | 21,850 | 19,634 | |
Income (Loss) from Operations | 13,324 | 16,493 | 35,026 | 37,316 | |
Capital Expenditures | 12,569 | 14,587 | 22,016 | 24,499 | |
Total Assets | 517,396 | 517,396 | 514,957 | ||
Goodwill | 24,265 | 24,265 | 25,871 | ||
Customer Growth Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 30,570 | 28,875 | 56,526 | 57,780 | |
Intersegment Sales | 0 | 0 | 0 | 0 | |
Net Revenue | 30,570 | 28,875 | 56,526 | 57,780 | |
Depreciation and amortization | 1,523 | 1,468 | 3,008 | 3,024 | |
Income (Loss) from Operations | 2,122 | 1,831 | 2,148 | 3,601 | |
Capital Expenditures | 1,832 | 1,289 | 3,137 | 1,669 | |
Total Assets | 84,079 | 84,079 | 88,394 | ||
Goodwill | 30,395 | 30,395 | 30,395 | ||
Customer Technology Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 38,094 | 35,753 | 73,815 | 68,532 | |
Intersegment Sales | (7) | (16) | (14) | (19) | |
Net Revenue | 38,087 | 35,737 | 73,801 | 68,513 | |
Depreciation and amortization | 2,195 | 2,008 | 4,359 | 3,723 | |
Income (Loss) from Operations | 3,250 | 1,616 | 5,259 | 1,927 | |
Capital Expenditures | 1,786 | 3,407 | 4,068 | 8,038 | |
Total Assets | 171,581 | 171,581 | 159,441 | ||
Goodwill | 42,709 | 42,709 | 42,709 | ||
Customer Strategy Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross Revenue | 22,250 | 12,195 | 43,092 | 24,811 | |
Intersegment Sales | 0 | 0 | 0 | 0 | |
Net Revenue | 22,250 | 12,195 | 43,092 | 24,811 | |
Depreciation and amortization | 909 | 444 | 1,826 | 878 | |
Income (Loss) from Operations | 4,656 | 727 | 7,047 | 2,180 | |
Capital Expenditures | 280 | $ 105 | 284 | $ 277 | |
Total Assets | 90,149 | 90,149 | 89,683 | ||
Goodwill | $ 29,429 | $ 29,429 | $ 29,730 |
SEGMENT INFORMATION (REVENUE GE
SEGMENT INFORMATION (REVENUE GEOGRAPHY) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 310,223 | $ 295,490 | $ 635,744 | $ 597,711 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 157,740 | 137,596 | 329,393 | 284,065 |
Philippines [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 85,585 | 85,541 | 170,572 | 172,207 |
Latin America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 37,623 | 43,258 | 78,177 | 85,304 |
Europe Middle East Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 19,290 | 22,267 | 38,603 | 41,484 |
Canada [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 1,548 | 1,470 | 2,888 | 2,893 |
Asia Pacific[ Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 8,437 | $ 5,358 | $ 16,111 | $ 11,758 |
SIGNIFICANT CLIENTS(NARRATIVE)
SIGNIFICANT CLIENTS(NARRATIVE) (DETAILS) - Client A [Member] - Customer Management Services [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Entity Wide Revenue Major Customer Line Items | ||||
Revenue from major customer as a percentage of total revenue | 11.50% | 12.00% | 10.90% | 11.80% |
Accounts receivable amount from major customer | $ 29.2 | $ 28.6 | $ 29.2 | $ 28.6 |
GOODWILL (GOODWILL ROLLFORWARD)
GOODWILL (GOODWILL ROLLFORWARD) (DETAILS) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Beginning balance, goodwill | $ 128,705 |
Acquisitions. | 100 |
Impairments | 0 |
Effect of Foreign Currency | (2,007) |
Ending balance, goodwill | 126,798 |
Customer Management Services [Member] | |
Goodwill [Line Items] | |
Beginning balance, goodwill | 25,871 |
Acquisitions. | 0 |
Impairments | 0 |
Effect of Foreign Currency | (1,606) |
Ending balance, goodwill | 24,265 |
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. | 100 |
Impairments | 0 |
Effect of Foreign Currency | (401) |
Ending balance, goodwill | $ 29,429 |
GOODWILL (NARRATIVE) (DETAILS)
GOODWILL (NARRATIVE) (DETAILS) | Jun. 30, 2015 |
WebMetro [Member] | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Fair value of a reporting unit in excess of carrying value expressed as a percentage | 15.00% |
Revana [Member] | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | |
Fair value of a reporting unit in excess of carrying value expressed as a percentage | 14.00% |
DERIVATIVES (OCI ROLLFORWARD) (
DERIVATIVES (OCI ROLLFORWARD) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
DERIVATIVES [ABSTRACT] | ||||
Aggregate unrealized net gain/(loss) at beginning of year | $ (18,497) | $ (10,886) | $ (18,345) | $ (8,352) |
Add: Net gain/(loss) from change in fair value of cash flow hedges | (4,119) | 9,946 | (5,410) | 6,297 |
Less: Net (gain)/loss reclassified to earnings from effective hedges | 1,302 | 1,059 | (2,441) | (2,174) |
Aggregate unrealized net gain/(loss) at end of period | $ (21,314) | $ 119 | $ (21,314) | $ 119 |
DERIVATIVES (NOTIONAL TABLE) (D
DERIVATIVES (NOTIONAL TABLE) (DETAILS) PHP in Thousands, NZD in Thousands, MXN in Thousands, CAD in Thousands, $ in Thousands | 6 Months Ended | |||||||
Jun. 30, 2015USD ($) | Jun. 30, 2015PHP | Jun. 30, 2015MXN | Dec. 31, 2014USD ($) | Dec. 31, 2014PHP | Dec. 31, 2014MXN | Dec. 31, 2014CAD | Dec. 31, 2014NZD | |
Derivative [Line Items] | ||||||||
Notional Amount | $ 241,300 | $ 242,500 | ||||||
Forwards | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 563,474 | 578,957 | ||||||
Forwards | CAD | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 1,441 | CAD 1,500 | ||||||
Forwards | PHP | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 380,216 | PHP 16,856,000 | 398,046 | PHP 17,428,000 | ||||
% Maturing in the Next 12 Months | 43.00% | 43.00% | 43.00% | |||||
Contracts Maturing Through | 4 years 8 months | |||||||
Forwards | MXN | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 183,258 | MXN 2,684,000 | 179,089 | MXN 2,532,000 | ||||
% Maturing in the Next 12 Months | 28.20% | 28.20% | 28.20% | |||||
Contracts Maturing Through | 4 years 11 months | |||||||
Forwards | NZD | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 381 | NZD 490 |
DERIVATIVES (INTEREST RATE SWAP
DERIVATIVES (INTEREST RATE SWAPS) (DETAILS) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Notional Amount | $ 241.3 | $ 242.5 |
Interest Rate Swap One [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 25 | |
Variable Rate Received | 1 - month LIBOR | |
Fixed Rate Paid | 2.55% | |
Contract Commencement Date | Apr. 1, 2012 | |
Contract Maturity Date | Apr. 1, 2016 | |
Interest Rate Swap Two [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 15 | |
Variable Rate Received | 1 - month LIBOR | |
Fixed Rate Paid | 3.14% | |
Contract Commencement Date | May 1, 2012 | |
Contract Maturity Date | May 1, 2017 | |
Total Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 40 |
DERIVATIVES (BALANCE SHEET CLAS
DERIVATIVES (BALANCE SHEET CLASSIFICATION) (DETAILS) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $ (35,805) | $ (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) | 578 | 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) | 2 | 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) | (14,400) | (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) | (21,985) | (17,070) |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (1,109) | (1,440) |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 0 | 0 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 0 | 0 |
Designated as Hedging Instruments [Member] | Interest Rate [Member] | Cash Flow [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (951) | (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) | (158) | (452) |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (1,824) | 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) | 47 | 797 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 0 | 0 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (1,871) | (5) |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $ 0 | $ 0 |
DERIVATIVES (INCOME STATEMENT C
DERIVATIVES (INCOME STATEMENT CLASSIFICATION) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other income (expense), net | $ 1,294 | $ 4,249 | $ 987 | $ 5,250 |
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: | (1,453) | 10,049 | (2,443) | 6,457 |
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 | (2,505) | (1,472) | (4,213) | (3,043) |
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: | 152 | (103) | 301 | (160) |
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 | (262) | (265) | (519) | (523) |
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 | $ (2,416) | $ (2,825) | $ (2,496) | $ (2,206) |
DERIVATIVES (NARRATIVE) (DETAIL
DERIVATIVES (NARRATIVE) (DETAILS) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
DERIVATIVES [ABSTRACT] | ||
Notional Amount | $ 241.3 | $ 242.5 |
FAIR VALUE (DERIVATIVES TABLE)
FAIR VALUE (DERIVATIVES TABLE) (DETAILS) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | $ 0 | $ 0 |
Interest rate swaps | 0 | 0 |
Fair value hedges | 0 | 0 |
Total net derivative asset (liability) | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | (35,805) | (29,169) |
Interest rate swaps | (1,109) | (1,440) |
Fair value hedges | (1,824) | 792 |
Total net derivative asset (liability) | (38,738) | (29,817) |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | 0 | 0 |
Interest rate swaps | 0 | 0 |
Fair value hedges | 0 | 0 |
Total net derivative asset (liability) | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Net Derivative Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash flow hedges | (35,805) | (29,169) |
Interest rate swaps | (1,109) | (1,440) |
Fair value hedges | (1,824) | 792 |
Total net derivative asset (liability) | $ (38,738) | $ (29,817) |
FAIR VALUE (FAIR VALUE ASSETS A
FAIR VALUE (FAIR VALUE ASSETS AND LIABILITIES) (DETAILS) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Liabilities [Abstract] | ||
Contingent consideration | $ (12,611) | $ (24,744) |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Derivative assets, net | 0 | 0 |
Total assets | 0 | 0 |
Liabilities [Abstract] | ||
Deferred compensation plan liability | 0 | 0 |
Derivative instruments, net | 0 | |
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Derivative assets, net | 0 | 0 |
Total assets | 0 | 0 |
Liabilities [Abstract] | ||
Deferred compensation plan liability | (9,645) | (8,478) |
Derivative instruments, net | (38,738) | (29,817) |
Contingent consideration | 0 | 0 |
Total liabilities | (48,383) | (38,295) |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Derivative assets, net | 0 | 0 |
Total assets | 0 | 0 |
Liabilities [Abstract] | ||
Deferred compensation plan liability | 0 | 0 |
Derivative instruments, net | 0 | |
Contingent consideration | (12,611) | (24,744) |
Total liabilities | $ (12,611) | $ (24,744) |
FAIR VALUE (CONTINGENT CONSIDER
FAIR VALUE (CONTINGENT CONSIDERATION TABLE) (DETAILS) $ in Thousands | Jun. 30, 2015USD ($) |
Business acquisitions, Contingent Consideration [Line Items] | |
Acquisitions | $ 0 |
Payments | (12,010) |
Imputed Interest/ Adjustments | (123) |
Iknowtion [Member] | |
Business acquisitions, Contingent Consideration [Line Items] | |
Acquisitions | 0 |
Payments | (1,800) |
Imputed Interest/ Adjustments | 24 |
Guidon [Member] | |
Business acquisitions, Contingent Consideration [Line Items] | |
Acquisitions | 0 |
Payments | (1,000) |
Imputed Interest/ Adjustments | 0 |
Sofica [Member] | |
Business acquisitions, Contingent Consideration [Line Items] | |
Acquisitions | 0 |
Payments | (2,838) |
Imputed Interest/ Adjustments | (406) |
rogenSi [Member] | |
Business acquisitions, Contingent Consideration [Line Items] | |
Acquisitions | 0 |
Payments | (6,372) |
Imputed Interest/ Adjustments | $ 259 |
FAIR VALUE (NARRATIVE) (DETAILS
FAIR VALUE (NARRATIVE) (DETAILS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | |
Business acquisitions, Contingent Consideration [Line Items] | |||||
Average interest rate on annual borrowings | 1.20% | ||||
Future Value of Liabilities Incurred From Business Acquisitions | $ 13.1 | $ 13.1 | |||
Valuation Technique on Contingent Consideration | 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 record interest expense each period using the effective interest method until the future value of these contingent payables reaches their expected future value of $13.1 million. Interest expense related to all recorded contingent payables is included in Interest expense in the Consolidated Statements of Comprehensive Income (Loss). | ||||
Technology Solutions Group [Member] | |||||
Business acquisitions, Contingent Consideration [Line Items] | |||||
Increase (decrease) in contingent consideration payable | $ (4) | $ (3.9) | |||
WebMetro [Member] | |||||
Business acquisitions, Contingent Consideration [Line Items] | |||||
Increase (decrease) in contingent consideration payable | $ (1.7) | ||||
Sofica [Member] | |||||
Business acquisitions, Contingent Consideration [Line Items] | |||||
Increase (decrease) in contingent consideration payable | $ (0.5) | $ 1.8 | 0.6 | ||
rogenSi [Member] | |||||
Business acquisitions, Contingent Consideration [Line Items] | |||||
Increase (decrease) in contingent consideration payable | $ 0.5 |
INCOME TAXES (NARRATIVE) (DETAI
INCOME TAXES (NARRATIVE) (DETAILS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
INCOME TAXES [ABSTRACT] | |||||
Total deferred tax assets, net of valuation allowance | $ 54.2 | $ 54.2 | |||
Valuation allowance on deferred tax assets | 10.5 | 10.5 | |||
Deferred tax assets, net of valuation allowance and deferred tax liabilities | $ 50.9 | $ 50.9 | |||
Effective income tax rate | 33.60% | 23.00% | 25.60% | 17.40% | |
Canada [Member] | |||||
Significant Change in Unrecognized Tax Benefits Is Reasonably Possible [LineItems] | |||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 1.2 | ||||
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 | 2,012 | ||||
Hong Kong rogenSi [Member] | |||||
Income Tax Examination [Line Items] | |||||
Income Tax Years under Audit | 2,014 |
RESTRUCTURING CHARGES AND IMP53
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABILITY CLASSIFICATION TABLE) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | $ 198 | $ 617 | $ 1,007 | $ 1,157 |
Restructuring charges, net | 198 | 617 | 1,007 | 1,157 |
Customer Management Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | 39 | 535 | 815 | 1,046 |
Customer Growth Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | 0 | 8 | 0 | 37 |
Customer Technology Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | 0 | 74 | 0 | 74 |
Customer Strategy Services [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in force | $ 159 | $ 0 | $ 192 | $ 0 |
RESTRUCTURING CHARGES AND IMP54
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES (LIABLITY ROLLFORWARD TABLE) (DETAILS) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance, restructuring reserve | $ 2,071 |
Expense | 1,007 |
Payments | (1,838) |
Reversals | 0 |
Ending balance, restructuring reserve | 1,240 |
Closure of Delivery Centers [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance, restructuring reserve | 0 |
Expense | 0 |
Payments | 0 |
Reversals | 0 |
Ending balance, restructuring reserve | 0 |
Reduction in Force [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance, restructuring reserve | 2,071 |
Expense | 1,007 |
Payments | (1,838) |
Reversals | 0 |
Ending balance, restructuring reserve | $ 1,240 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (NARRATIVE) (DETAILS) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Jun. 03, 2013 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||
Initial Borrowing Capacity | $ 700,000 | |||
Maximum Borrowing Capacity | $ 1,000,000 | |||
Borrowings outstanding on credit facility | $ 115,000 | $ 100,000 | ||
Average daily utilization under credit facility | 323,500 | $ 280,500 | ||
Letters of credit issued under credit facility | 3,200 | |||
Remaining borrowing capacity under credit facility | 385,000 | |||
Letters of credit issued outside credit facility | $ 5,600 |
NONCONTROLLING INTERES (NONCONT
NONCONTROLLING INTERES (NONCONTROLLING INTEREST ROLLFORWARD TABLE) (DETAILS) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stockholders' Equity Attributable to Noncontrolling Interest | ||
Noncontrolling interest, January 1 | $ 7,983 | $ 8,081 |
Net income attributable to noncontrolling interest | 1,735 | 2,074 |
Dividends distributed to noncontrolling interest | (2,025) | (2,025) |
Foreign currency translation adjustments | (198) | 85 |
Equity based compensation expense | 90 | 13 |
Noncontrolling interest, June 30 | $ 7,585 | $ 8,228 |
MANDATORILY REDEEMABLE NONCON57
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (ROLLFORWARD TABLE) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Mandatorily redeemable noncontrolling interest [Line Items] | ||||
Mandatorily redeemable noncontrolling interest, January 1 | $ 2,814 | |||
Net income attributable to mandatorily redeemable noncontrolling interest | $ 15,493 | $ 18,130 | 35,528 | $ 39,433 |
Change in redemption value | (903) | |||
Mandatorily redeemable noncontrolling interest, June 30 | 3,410 | 3,410 | ||
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 | 325 | 279 | ||
Dividends distributed to mandatorily redeemable noncontrolling interest | (632) | (1,244) | (632) | (1,244) |
Change in redemption value | 903 | 1,730 | ||
Mandatorily redeemable noncontrolling interest, June 30 | $ 3,410 | $ 3,274 | $ 3,410 | $ 3,274 |
MANDATORILY REDEEMABLE NONCON58
MANDATORILY REDEEMABLE NONCONTROLLING INTEREST (NARRATIVE) (DETAILS) | 6 Months Ended |
Jun. 30, 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 COMPREHENSI59
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (ROLLFORWARD TABLE) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Foreign Currency Translation Adjustment [Abstract] | ||||||
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, beginning balance | $ (33,352) | $ (33,352) | $ (10,581) | $ (10,581) | ||
Other comprehensive income before reclassifications - foreign currency translation adjustment | (17,147) | 5,202 | ||||
Net current period other comprehensive income - foreign currency translation adjustment | (17,147) | 5,202 | ||||
Accumulated other comprehensive income (loss) - Foreign currency translation adjustment, ending balance | $ (50,499) | $ (5,379) | (50,499) | (5,379) | (33,352) | |
Derivative Valuation, Net of Tax | ||||||
Aggregate unrealized net gain/(loss) at beginning of year | (18,497) | (18,345) | (10,886) | (18,345) | (8,352) | (8,352) |
Other comprehensive income before reclassifications - derivative valuation, net of tax | (4,119) | 9,946 | (5,410) | 6,297 | ||
Amounts reclassified from accumulated other comprehensive income - derivative valuation, net of tax | (1,302) | (1,059) | 2,441 | 2,174 | ||
Net current period other comprehensive income - derivative valuation, net of tax | (2,969) | 8,471 | ||||
Aggregate unrealized net gain/(loss) at end of period | (21,314) | (18,497) | 119 | (21,314) | 119 | (18,345) |
Other, Net of Tax. | ||||||
Accumulated other comprehensive income (loss) - Other, net of tax | (577) | (577) | (1,653) | (1,653) | ||
Other comprehensive income before reclassifications - other, net of tax | (2,815) | 33 | ||||
Amounts reclassified from accumulated other comprehensive income - other, net of tax | 454 | 523 | ||||
Net current period other comprehensive income - other, net of tax | (2,361) | 556 | ||||
Accumulated other comprehensive income (loss) - Other, net of tax at end of period | (2,938) | (1,097) | (2,938) | (1,097) | (577) | |
Totals | ||||||
Accumulated other comprehensive income (loss), beginning balance | $ (52,274) | (52,274) | (20,586) | (20,586) | ||
Other comprehensive income before reclassifications - Totals | (25,372) | 11,532 | ||||
Amounts reclassified from accumulated other comprehensive income - Totals | 2,895 | 2,697 | ||||
Other comprehensive income (loss), net of tax | (22,477) | 14,229 | ||||
Accumulated other comprehensive income (loss), ending balance | $ (74,751) | $ (6,357) | $ (74,751) | $ (6,357) | $ (52,274) |
ACCUMULATED OTHER COMPREHENSI60
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (INCOME STATEMENT CLASSIFICATION TABLE) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | $ 2,895 | $ 2,697 | ||
Net Income (Loss) [Member] | Derivative Valuation [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | $ (1,301) | $ (1,059) | (2,441) | (2,174) |
Net Income (Loss) [Member] | Other Accumulated Other Comprehensive Income Loss [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | (208) | (262) | (454) | (523) |
Gain Loss on Foreign Currency Forward Contracts [Member] | Revenue [Member] | Derivative Valuation [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | (2,506) | (1,472) | (4,213) | (3,043) |
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 | (262) | (265) | (519) | (523) |
Tax Effect [Member] | Provision for Income Taxes [Member] | Derivative Valuation [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Other Comprehensive Income Loss Reclassified to Income | 1,467 | 678 | 2,291 | 1,392 |
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 | 22 | 18 | 50 | 33 |
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 | $ (230) | $ (280) | $ (504) | $ (556) |
NET INCOME PER SHARE (DILUTED S
NET INCOME PER SHARE (DILUTED SHARES TABLE) (DETAILS) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Shares used in basic earnings per share calculation | 48,325 | 49,351 | 48,347 | 49,696 |
Effect of dilutive securities: | ||||
Stock options | 397 | 425 | 392 | 419 |
Restricted stock units | 321 | 335 | 358 | 421 |
Performance-based restricted stock units | 21 | 0 | 16 | 0 |
Total effects of dilutive securities | 739 | 760 | 766 | 840 |
Shares used in dilutive earnings per share calculation | 49,064 | 50,111 | 49,113 | 50,536 |
NET INCOME PER SHARE (NARRATIVE
NET INCOME PER SHARE (NARRATIVE) (DETAILS) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stock Options [Member] | ||||
Anti-dilutive options to purchase common stock [Line Items] | ||||
Anti-dilutive securities | 0.1 | 0.1 | 0.1 | 0.1 |
Restricted Stock Units (RSUs) [Member] | ||||
Anti-dilutive options to purchase common stock [Line Items] | ||||
Anti-dilutive securities | 0.3 | 0.1 | 0.3 | 0.1 |
EQUITY-BASED COMPENSATION PLA63
EQUITY-BASED COMPENSATION PLANS (NARRATIVE) (DETAILS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 2,600 | $ 2,700 | $ 5,278 | $ 5,881 |
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 2,500 | 2,600 | 5,100 | $ 5,700 |
Unrecognized Compensation Expense | 23,200 | $ 23,200 | ||
Non-option Equity Awards Granted | 169,252 | 210,176 | ||
Cost of Services [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 500 | 500 | $ 1,100 | $ 1,100 |
Selling General And Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 2,100 | $ 2,200 | $ 4,200 | $ 4,800 |
Uncategorized Items - ttec-2015
Label | Element | Value |
Guidon [Member] | ||
Business Combination Contingent Consideration Liability | us-gaap_BusinessCombinationContingentConsiderationLiability | $ 0 |
Business Combination Contingent Consideration Liability | us-gaap_BusinessCombinationContingentConsiderationLiability | 1,000 |
Iknowtion [Member] | ||
Business Combination Contingent Consideration Liability | us-gaap_BusinessCombinationContingentConsiderationLiability | 2,265 |
Business Combination Contingent Consideration Liability | us-gaap_BusinessCombinationContingentConsiderationLiability | 489 |
rogenSi [Member] | ||
Business Combination Contingent Consideration Liability | us-gaap_BusinessCombinationContingentConsiderationLiability | 15,162 |
Business Combination Contingent Consideration Liability | us-gaap_BusinessCombinationContingentConsiderationLiability | 9,049 |
Sofica [Member] | ||
Business Combination Contingent Consideration Liability | us-gaap_BusinessCombinationContingentConsiderationLiability | 3,073 |
Business Combination Contingent Consideration Liability | us-gaap_BusinessCombinationContingentConsiderationLiability | $ 6,317 |