Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-11919 | |
Entity Registrant Name | TTEC Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1291044 | |
Entity Address, Address Line One | 6312 South Fiddler’s Green Circle, Suite 100N | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
City Area Code | 303 | |
Local Phone Number | 397-8100 | |
Title of 12(b) Security | Common stock of TTEC Holdings, Inc., $0.01 par value per share | |
Trading Symbol | TTEC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 47,723,922 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001013880 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 79,780 | $ 172,747 |
Accounts receivable, net | 381,685 | 394,868 |
Prepaids and other current assets | 117,081 | 95,064 |
Income and other tax receivables | 24,872 | 18,524 |
Total current assets | 603,418 | 681,203 |
Long-term assets | ||
Property, plant and equipment, net | 149,114 | 191,003 |
Asset, Held-for-Sale, Not Part of Disposal Group, Other | 29,449 | 0 |
Operating lease assets | 106,185 | 121,574 |
Goodwill | 573,625 | 808,988 |
Deferred tax assets, net | 12,439 | 38,151 |
Other intangible assets, net | 181,338 | 198,433 |
Income Taxes Receivable, Noncurrent | 37,194 | 44,673 |
Other long-term assets | 99,859 | 101,573 |
Total long-term assets | 1,189,203 | 1,504,395 |
Total assets | 1,792,621 | 2,185,598 |
Current liabilities | ||
Accounts payable | 87,115 | 96,577 |
Accrued employee compensation and benefits | 132,824 | 146,184 |
Other accrued expenses | 48,268 | 32,217 |
Income taxes payable | 1,159 | 4,909 |
Deferred revenue | 77,783 | 81,171 |
Current operating lease liabilities | 35,650 | 38,271 |
Other current liabilities | 4,857 | 3,698 |
Total current liabilities | 387,656 | 403,027 |
Long-term liabilities | ||
Line of credit | 930,000 | 995,000 |
Deferred tax liabilities, net | 13,277 | 3,137 |
Non-current Income Taxes Payable | 0 | 0 |
Non-current operating lease liabilities | 83,855 | 96,809 |
Other long-term liabilities | 73,657 | 72,083 |
Total long-term liabilities | 1,100,789 | 1,167,029 |
Total liabilities | 1,488,445 | 1,570,056 |
Stockholders' equity | ||
Preferred stock - $0.01 par value: 10,000,000 shares authorized; zero shares outstanding as of June 30, 2024 and December 31, 2023 | 0 | 0 |
Common stock - $0.01 par value; 150,000,000 shares authorized; 47,608,318 and 47,427,200 shares outstanding as of June 30, 2024 and December 31, 2023, respectively | 476 | 474 |
Additional paid-in capital | 414,728 | 407,415 |
Treasury stock at cost: 34,443,935 and 34,625,053 shares as of June 30, 2024 and December 31, 2023, respectively | (586,812) | (589,807) |
Accumulated other comprehensive income (loss) | (107,581) | (89,876) |
Retained earnings | 565,738 | 870,429 |
Noncontrolling interest | 17,627 | 16,907 |
Total stockholders' equity | 304,176 | 615,542 |
Total liabilities and stockholders' equity and mezzanine equity | $ 1,792,621 | $ 2,185,598 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Stockholders' equity | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 4,757 | $ 2,248 |
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 | 47,608,318 | 47,427,200 |
Treasury stock, shares | 34,443,935 | 34,625,053 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Consolidated Statements of Comprehensive Income | ||||
Revenue. | $ 534,085 | $ 600,394 | $ 1,110,723 | $ 1,233,680 |
Type of Revenue | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Operating expenses | ||||
Cost of services (exclusive of depreciation and amortization presented separately below) | $ 417,890 | $ 464,686 | $ 871,708 | $ 947,364 |
Selling, general and administrative | 73,726 | 75,338 | 148,301 | 149,348 |
Depreciation and amortization | 25,071 | 24,946 | 50,216 | 50,773 |
Restructuring charges, net | 5,095 | 1,474 | 5,344 | 3,527 |
Impairment losses | 236,716 | 2,652 | 236,856 | 6,959 |
Total operating expenses | 758,498 | 569,096 | 1,312,425 | 1,157,971 |
Income from operations | (224,413) | 31,298 | (201,702) | 75,709 |
Other income (expense) | ||||
Interest income | 414 | 1,126 | 1,397 | 2,290 |
Interest expense | (20,431) | (18,991) | (41,502) | (36,382) |
Other income (expense), net | 1,788 | (3,574) | 1,994 | (2,919) |
Total other income (expense) | (18,229) | (21,439) | (38,111) | (37,011) |
Income before income taxes | (242,642) | 9,859 | (239,813) | 38,698 |
Benefit from (provision for) income taxes | (54,126) | (6,102) | (56,455) | (14,024) |
Net income | (296,768) | 3,757 | (296,268) | 24,674 |
Net income attributable to noncontrolling interest | (2,771) | (2,546) | (5,576) | (4,816) |
Net income (loss) attributable to TTEC stockholders | (299,539) | 1,211 | (301,844) | 19,858 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | (7,381) | 19,367 | (11,218) | 28,765 |
Derivative valuation, gross | (8,854) | 712 | (9,164) | 9,573 |
Derivative valuation, tax effect | 2,304 | (187) | 2,379 | (2,497) |
Other, net of tax | 91 | 108 | 212 | 180 |
Total other comprehensive income (loss) | (13,840) | 20,000 | (17,791) | 36,021 |
Total comprehensive income (loss) | (310,608) | 23,757 | (314,059) | 60,695 |
Less: Comprehensive income attributable to noncontrolling interest | (2,779) | (2,560) | (5,490) | (4,385) |
Comprehensive income (loss) attributable to TTEC stockholders | $ (313,387) | $ 21,197 | $ (319,549) | $ 56,310 |
Weighted average shares outstanding | ||||
Basic | 47,564 | 47,264 | 47,498 | 47,249 |
Diluted | 47,623 | 47,453 | 47,585 | 47,417 |
Net income (loss) per share attributable to TTEC stockholders | ||||
Basic | $ (6.30) | $ 0.03 | $ (6.35) | $ 0.42 |
Diluted | $ (6.29) | $ 0.03 | $ (6.34) | $ 0.42 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity and Mezzanine Equity - USD ($) $ in Thousands | 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] | Accumulated Other Comprehensive Income (Loss) | Stockholders' Equity of the Company Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Common stock beginning balance, share at Dec. 31, 2022 | 47,224,000 | ||||||
Beginning balance at Dec. 31, 2022 | $ (593,164) | ||||||
Beginning balance, value at Dec. 31, 2022 | $ 472 | $ 367,673 | $ (126,301) | $ 911,233 | $ 18,192 | $ 578,105 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Noncontrolling interest adjustment due to buyout | 20,457 | 20,457 | |||||
Net income (loss) | 19,857 | 4,202 | 24,059 | ||||
Dividends to shareholders | (24,572) | (24,572) | |||||
Dividends distributed to noncontrolling interest | (5,701) | (5,701) | |||||
Foreign currency translation adjustments | 28,582 | 183 | 28,765 | ||||
Derivatives valuation, net of tax | 7,076 | 7,076 | |||||
Vesting of restricted stock units, share | 52,000 | ||||||
Vesting of restricted stock units, value | $ 1 | 858 | (1,488) | (629) | |||
Equity-based compensation expense | 9,802 | 9,802 | |||||
Other, net of tax. | 180 | 180 | |||||
Ending balance at Jun. 30, 2023 | (592,306) | ||||||
Common stock ending balance, share at Jun. 30, 2023 | 47,276,000 | ||||||
Ending balance, value at Jun. 30, 2023 | $ 473 | 396,444 | (90,463) | 906,518 | 16,876 | 637,542 | |
Temporary Equity, Beginning Balance at Dec. 31, 2022 | 55,645 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Temporary noncontrolling interest adjustment due to buyout | (20,457) | ||||||
Temporary Equity, Net Income | 614 | ||||||
Temporary equity buyout of noncontrolling interest | (31,619) | ||||||
Temporary equity distributions. | (186) | ||||||
Temporary Equity, Ending Balance at Jun. 30, 2023 | 3,997 | ||||||
Common stock beginning balance, share at Mar. 31, 2023 | 47,252,000 | ||||||
Beginning balance at Mar. 31, 2023 | (592,685) | ||||||
Beginning balance, value at Mar. 31, 2023 | $ 473 | 391,294 | (110,389) | 905,309 | 16,836 | 610,838 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,209 | 2,486 | 3,695 | ||||
Dividends distributed to noncontrolling interest | (2,520) | (2,520) | |||||
Foreign currency translation adjustments | 19,293 | 74 | 19,367 | ||||
Derivatives valuation, net of tax | 525 | 525 | |||||
Vesting of restricted stock units, share | 24,000 | ||||||
Vesting of restricted stock units, value | 379 | (498) | (119) | ||||
Equity-based compensation expense | 5,648 | 5,648 | |||||
Other, net of tax. | 108 | 108 | |||||
Ending balance at Jun. 30, 2023 | (592,306) | ||||||
Common stock ending balance, share at Jun. 30, 2023 | 47,276,000 | ||||||
Ending balance, value at Jun. 30, 2023 | $ 473 | 396,444 | (90,463) | 906,518 | 16,876 | 637,542 | |
Temporary Equity, Beginning Balance at Mar. 31, 2023 | 3,936 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Temporary Equity, Net Income | 61 | ||||||
Temporary equity distributions. | 0 | ||||||
Temporary Equity, Ending Balance at Jun. 30, 2023 | $ 3,997 | ||||||
Preferred stock beginning balance, share at Dec. 31, 2023 | 0 | ||||||
Common stock beginning balance, share at Dec. 31, 2023 | 47,427,000 | 47,427,200 | |||||
Beginning balance at Dec. 31, 2023 | (589,807) | $ (589,807) | |||||
Beginning balance, value at Dec. 31, 2023 | $ 474 | 407,415 | (89,876) | 870,429 | 16,907 | 615,542 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (301,844) | 5,576 | (296,268) | ||||
Dividends to shareholders | (2,847) | (2,847) | |||||
Dividends distributed to noncontrolling interest | (4,770) | (4,770) | |||||
Foreign currency translation adjustments | (11,132) | (86) | (11,218) | ||||
Derivatives valuation, net of tax | (6,785) | (6,785) | |||||
Vesting of restricted stock units, share | 181,000 | ||||||
Vesting of restricted stock units, value | $ 2 | 2,995 | (3,603) | (606) | |||
Equity-based compensation expense | 10,916 | 10,916 | |||||
Other, net of tax. | 212 | $ 212 | |||||
Preferred stock ending balance, share at Jun. 30, 2024 | 0 | ||||||
Ending balance at Jun. 30, 2024 | (586,812) | $ (586,812) | |||||
Common stock ending balance, share at Jun. 30, 2024 | 47,608,000 | 47,608,318 | |||||
Ending balance, value at Jun. 30, 2024 | $ 476 | 414,728 | (107,581) | 565,738 | 17,627 | $ 304,176 | |
Temporary Equity, Beginning Balance at Dec. 31, 2023 | 0 | ||||||
Temporary Equity, Ending Balance at Jun. 30, 2024 | 0 | ||||||
Common stock beginning balance, share at Mar. 31, 2024 | 47,447,000 | ||||||
Beginning balance at Mar. 31, 2024 | (589,475) | ||||||
Beginning balance, value at Mar. 31, 2024 | $ 474 | 412,768 | (93,733) | 865,277 | 17,098 | 612,409 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (299,539) | 2,771 | (296,768) | ||||
Dividends distributed to noncontrolling interest | (2,250) | (2,250) | |||||
Foreign currency translation adjustments | (7,389) | 8 | (7,381) | ||||
Derivatives valuation, net of tax | (6,550) | (6,550) | |||||
Vesting of restricted stock units, share | 161,000 | ||||||
Vesting of restricted stock units, value | $ 2 | 2,663 | (3,144) | (479) | |||
Equity-based compensation expense | 5,104 | 5,104 | |||||
Other, net of tax. | 91 | $ 91 | |||||
Preferred stock ending balance, share at Jun. 30, 2024 | 0 | ||||||
Ending balance at Jun. 30, 2024 | $ (586,812) | $ (586,812) | |||||
Common stock ending balance, share at Jun. 30, 2024 | 47,608,000 | 47,608,318 | |||||
Ending balance, value at Jun. 30, 2024 | $ 476 | $ 414,728 | $ (107,581) | $ 565,738 | $ 17,627 | $ 304,176 | |
Temporary Equity, Beginning Balance at Mar. 31, 2024 | 0 | ||||||
Temporary Equity, Ending Balance at Jun. 30, 2024 | $ 0 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Consolidated statement of stockholders' equity and mezzanine equity [Abstract] | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0 | $ 0 | $ 0.06 | $ 0.52 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net income | $ (296,268) | $ 24,674 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 50,216 | 50,773 |
Amortization of contract acquisition costs | 677 | 1,158 |
Amortization of debt issuance costs | 985 | 534 |
Imputed interest expense and fair value adjustments to contingent consideration, net | (1,047) | 6,762 |
Provision for credit losses | 2,644 | 1,704 |
(Gain) loss on disposal of assets | 1,252 | 856 |
Impairment losses | 236,856 | 6,959 |
Loss on dissolution of subsidiary | 0 | 301 |
Deferred income taxes | 37,148 | (10,390) |
Excess tax benefit from equity-based awards | 1,732 | 243 |
Equity-based compensation expense | 10,916 | 9,802 |
(Gain) loss on foreign currency derivatives | 145 | 247 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 8,315 | 14,645 |
Prepaids and other assets | (10,804) | 20,324 |
Accounts payable and accrued expenses | (996) | 43,429 |
Deferred revenue and other liabilities | (8,126) | (27,072) |
Net cash (used in) provided by operating activities | 33,645 | 144,949 |
Cash flows from investing activities | ||
Proceeds from sale of long-live assets | 116 | 28 |
Purchases of property, plant and equipment | (27,682) | (32,954) |
Net cash used in investing activities | (27,566) | (32,926) |
Cash flows from financing activities | ||
Net proceeds (borrowings) from line of credit | (65,000) | (45,000) |
Payments on other debt | (1,379) | (1,217) |
Payments of contingent consideration and hold back payments to acquisitions | 0 | (37,676) |
Dividends paid to shareholders | (2,847) | (24,572) |
Payments of debt issuance costs | (1,100) | |
Payments to noncontrolling interest | (4,770) | (5,887) |
Tax payments related to issuance of restricted stock units | (606) | (629) |
Net cash (used in) provided by financing activities | (75,702) | (114,981) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,612) | 1,275 |
Increase (decrease) in cash, cash equivalents and restricted cash | (74,235) | (1,683) |
Cash, cash equivalents and restricted cash, beginning of period | 173,905 | 167,064 |
Cash, cash equivalents and restricted cash, end of period | 99,670 | 165,381 |
Supplemental disclosures | ||
Cash paid for interest | 39,919 | 35,794 |
Cash paid for income taxes | 28,704 | 23,874 |
Non-cash investing and financing activities | ||
Acquisition of long lived assets through finance leases | 184 | 1,560 |
Acquisition of equipment through increase in accounts payable, net | $ (4,384) | $ 3,507 |
OVERVIEW AND BASIS OF PRESENTAT
OVERVIEW AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
OVERVIEW AND BASIS OF PRESENTATION | (1) OVERVIEW AND BASIS OF PRESENTATION Summary of Business Founded in 1982, TTEC Holdings, Inc. (“TTEC”, “the Company”; pronounced “T-TEC”) is a global customer experience (“CX”) outsourcing partner for marquee and disruptive brands and public sector clients. The Company designs, builds, and operates technology-enabled customer experiences across digital and live interaction channels to help clients increase customer loyalty, revenue, and profitability. By combining digital solutions with data-driven service capabilities, the Company helps clients improve their customer satisfaction while lowering their total cost to serve. As of June 30, 2024, TTEC served approximately 740 The Company operates and reports its financial results of operation through two business segments: • TTEC Digital is one of the largest CX technology providers and is focused exclusively on the intersection of Contact Center as a Service (CCaaS), Customer Relationship Management (CRM), and Artificial Intelligence (AI) and Analytics. A professional services organization comprised of software engineers, systems architects, data scientists and CX strategists, this segment creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise based CX technologies including Amazon Web Services (“AWS”), Cisco, Genesys, Google, and Microsoft; and creates proprietary IP to support industry specific and custom client needs. TTEC Digital serves clients across enterprise and small and medium sized business segments and has a dedicated unit with government technology certifications serving the public sector. • TTEC Engage provides the digitally enabled CX operational and managed services to support large, complex enterprise clients’ end-to-end customer interactions at scale. Tailored to meet industry-specific and business needs, this segment delivers data-driven omnichannel customer care, customer acquisition, growth, and retention services, tech support, trust and safety and back-office solutions. The segment’s technology-enabled delivery model covers the entire associate lifecycle including recruitment, onboarding, training, delivery, workforce management and quality assurance. TTEC demonstrates its market leadership through strategic collaboration across TTEC Digital and TTEC Engage when there is client demand and fit for the Company’s integrated solutions. This partnership is central to the Company’s ability to deliver comprehensive and transformational customer experience solutions to its clients, including integrated delivery, go-to-market and innovation for truly differentiated, market leading CX solutions. During the second quarter of 2024, the combined TTEC Digital and TTEC Engage global operating platform delivered onshore, nearshore and offshore services in 22 countries on six continents – the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Germany, Greece, Honduras, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, and the United Kingdom – with the help of approximately 54,000 customer care associates, consultants, technologists, and CX professionals. Basis of Presentation The Consolidated Financial Statements are comprised of the accounts of TTEC, its wholly owned subsidiaries, its 55% equity owned subsidiary Percepta, LLC, its 70% equity owned subsidiary First Call Resolution, LLC through March 31, 2023 and then 100% owned subsequently, and its 70% equity owned subsidiary Serendebyte, Inc. through December 31, 2023 and then 100% owned subsequently (see Note 2). 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. All such adjustments are of a normal, recurring nature. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 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 Use of Estimates The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, litigation reserves, restructuring reserves, allowance for credit losses, contingent consideration, redeemable noncontrolling interest, 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. Out-of-period Adjustment The Consolidated Financial Statements for the three months ended June 30, 2023 included an adjustment of $14.2 million to other comprehensive income and deferred tax assets, to correct for an error identified by management during the preparation of the financial statements. This adjustment was to reflect the deferred tax impact of currency translation adjustments, of which $14.2 million related to prior annual fiscal periods. Management has determined that this error was not material to the historical financial statements in any individual period or in the aggregate and did not result in the previously issued financial statements being materially misstated. The impact to the three and six month periods ended June 30, 2023 was not material. As such, management recorded the correction as an out-of-period adjustment in the three months ended June 30, 2023. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, primarily held in interest-bearing investments, and liquid short-term investments, which have original maturities of three months or less. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands): June 30, 2024 December 31, 2023 Cash and cash equivalents $ 79,780 $ 172,747 Restricted cash included in "Prepaid and other current assets" 19,890 1,158 Total $ 99,670 $ 173,905 Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial, but in light of recent economic headwinds the Company is reviewing and tightening its collection processes. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across eight investment-grade financial institutions. Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform” (Topic 848), which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform due to the anticipated cessation of the London Interbank Offered Rate (”LIBOR”). The ASU is effective from March 12, 2020, may be applied prospectively and could impact the accounting for LIBOR provisions in the Company’s credit facility agreement. In addition, in January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform – Scope,” which clarified the scope of FASB Accounting Standards Codification (“ASC”) 848 relating to contract modifications. The Company adopted the standard effective April 1, 2023 and the adoption of this guidance did not have a material impact on the Company’s financial position, results of operations or cash flows. Other Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures” which relates to disclosures regarding a public entity’s reportable segments and provides more detailed information about a reportable segment’s expenses. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with retrospective application required. The Company is assessing the effect on its annual consolidated financial statement disclosures; however, adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” to enhance the transparency and decision usefulness of income tax disclosures. The ASU is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is assessing the effect on its annual consolidated financial statement disclosures; however, adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2024 | |
ACQUISITIONS [ABSTRACT] | |
ACQUISITIONS | (2) ACQUISITIONS AND DIVESTITURES Serendebyte In connection with the acquisition by TTEC Digital, LLC of a 70% interest in Serendebyte Inc. (“Serendebyte”), Serendebyte’s founder exercised his put rights with respect to the remaining 30% interest in Serendebyte on December 8, 2023, but failed to fulfill the agreed exercise prerequisites. Pending the resolution of the put exercise formalities by Serendebyte’s founder, TTEC Digital is not able to determine the final purchase price for the remaining 30% buyout agreement. In connection with triggering the option, on December 8, 2023, a $0.3 million accrual was reclassified from Redeemable noncontrolling interest to Accrued expenses and the remaining balance was reclassified to Additional paid in capital. FCR Pursuant to the Membership Interest Purchase Agreement of October 26, 2019 between Ortana Holdings, Inc. and TTEC Services Corporation for the acquisition by TTEC of 70% interest in First Call Resolution, LLC (“FCR” and “FCR MIPA”, respectively), Ortana Holdings exercised its put rights in January 2023, which required TTEC to acquire Ortana Holdings’ remaining 30% interest in FCR. The purchase price for the remaining 30% interest was determined based on the express provisions of the FCR MIPA and was based on FCR’s performance during 2022. The buyout agreement was signed on April 4, 2023 and reflected a buyout purchase of $22.4 million. In connection with the triggering of the option, as of March 31, 2023, the $22.4 million purchase price was reclassified from Redeemable noncontrolling interest to Accrued expenses and the remaining balance of $20.5 million was reclassified to Additional paid in capital. In February 2023, a $9.2 million payment related to excess cash distribution was completed and in April 2023 the final payment of $22.4 million was completed. Certain Assets of Faneuil On April 1, 2022, the Company completed an asset acquisition through its subsidiary TTEC Government Solutions LLC, of certain public sector citizen experience contracts in the transportation infrastructure and healthcare exchange industries from Faneuil, Inc., a subsidiary of ALJ Regional Holdings, Inc. (“the Faneuil Transaction”). The acquired business is operated as part of the TTEC Engage segment and was fully consolidated into the financial statements of TTEC. The Faneuil Transaction was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date. Total cash paid at the time of acquisition was $142.4 million. In addition, Faneuil granted to TTEC Government Solutions LLC a three-year call right and right of first offer to purchase certain other assets of Faneuil in its utilities and commercial healthcare verticals as well as certain proprietary technology. The Faneuil Transaction includes two contingent payments which were anticipated to be paid in early 2024 and were based on the revenue and EBITDA performance of one contract and one potential contract. The fair value of the two contingent payments was estimated using a Monte Carlo model. The model was based on current expected EBITDA performance for the two specific client programs, a discount rate of 7.6% related to revenue and a discount rate of 19.3% related to EBITDA, a volatility rate of 20%, and an adjusted risk-free rate of 1.7%. The potential payments ranged from a minimum of zero to an unlimited maximum. Based on the model, a combined $8.8 million expected future payment was calculated and recorded as of the acquisition date. During 2022, a $2.9 million net gain was recorded related to fair value adjustments for the estimated contingent payments based on changes in estimated EBITDA, the timing of cash flows and market interest rates which resulted in an updated discount factor for one contract, and a complete reduction for the second contract as it was not awarded to the Company. During the second quarter of 2023, an amendment to the agreement was signed which modified the contingent payment to a minimum payment of $7.4 million and a maximum payment of $10.4 million. An initial payment of $7.4 million was completed in May 2023. During 2023, a combined $3.0 million net expense was recorded related to fair value adjustments for the estimated contingent payment based on changes in estimated EBITDA, the timing of cash flows and market interest rate changes. These benefits (expenses) were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). For the six months ended June 30, 2024, a $1.0 million net gain was recorded related to fair value adjustments for the estimated contingent payment based on changes in estimated EBITDA, the timing of cash flows and market interest rate changes. As of June 30, 2024, the contingent payment is accrued at $0.4 million and is included in Other long-term liabilities in the accompanying Consolidated Balance Sheets. The Faneuil Transaction included a call option providing the right but not the obligation to purchase additional assets in the utilities and commercial healthcare verticals based on trailing twelve-month revenue plus an additional earn-out payment based on newly added contracts. A second call option provided the right to purchase a software intangible asset and related support functions based on trailing twelve-month revenue. These call options were valued based on information including the call right and the exclusivity period and a $270 thousand asset was recorded as of the acquisition date which was included in Other long-term assets in the Consolidated Balance Sheets. During the fourth quarter of 2022 and the first quarter of 2023, reductions in fair value of $52 thousand and $140 thousand, respectively, were recorded due to changes in estimated revenue, which were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). During the second quarter of 2023, an amendment to the agreement was signed which cancelled the option to purchase the additional assets in certain verticals, and thus the remaining $78 thousand accrual was removed and included in Other income. As of June 30, 2024, the fair value is zero. The Faneuil Transaction included an indemnity escrow which was disbursed as a holdback payment on the acquisition date. The indemnity payments related to real estate and technology funds that were spent post-close related to various IT upgrades and real estate expenses, and indemnity related to potential future employee wage increases. The indemnity payments were valued based on a weighted average of several current scenarios and a receivable of $10.4 million was recorded as of the acquisition date. During the third and fourth quarters of 2022 and the first quarter of 2023, reductions in the fair value were calculated and a $4.4 million expense, a $0.2 million expense and a $2.5 million expense, respectively, were recorded related to fair value adjustments for the receivable based on current information reflecting a better outcome with the contract negotiations and lower anticipated IT and facilities spending. During the second quarter of 2023, the payout value related to the IT and Facilities reimbursement was finalized at $1.3 million, and an expense of $1.9 million was recorded. The payment was received by TTEC in May 2023 and as of June 30, 2023, the receivables were reduced to zero on the Consolidated Balance Sheet. The reductions in fair value related expenses were included in Other income (expense) in the Consolidated Statements of Comprehensive Income (Loss). A multi-period excess earnings method under the income approach was used to estimate the fair value of the customer relationships intangible assets. The significant assumptions utilized in calculating the fair value of the customer relationships intangible assets were the customer attrition rate, revenue growth rates, forecasted EBITDA, contributory asset charge, and the discount rate. The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ — Accounts receivable, net 704 Prepaid and other assets 8,420 Net fixed assets 5,622 Right of use lease assets 17,778 Other assets 2,572 Customer relationships 61,310 Goodwill 75,902 $ 172,308 Accrued employee compensation $ 202 Accrued expenses 2,763 Right of use lease liability – current 3,129 Right of use lease liability – non-current 14,092 Deferred income 811 Other liabilities 8,891 $ 29,888 Total purchase price $ 142,420 In the first quarter of 2023, the Company finalized the valuation of Faneuil for the acquisition date assets acquired and liabilities assumed and determined that no material adjustments to any of the balances were required. The Faneuil customer relationships are being amortized over a useful life of 10 years. The goodwill recognized from the Faneuil acquisition is attributable to, but not limited to, the acquired workforce and expected synergies with the TTEC Engage segment. The tax basis of the acquired intangibles and goodwill will be materially deductible for income tax purposes. The acquired goodwill and intangibles and operating results of Faneuil are reported within the TTEC Engage segment from the date of acquisition. Assets Held for Sale In the second quarter of 2024, the Company reclassified $29.4 million from Property, plant and equipment, net to Assets held for sale as the Company expects to sell its former headquarters building in Englewood, Colorado within the next twelve months. This included $16.7 million from leasehold improvements, $6.7 million from buildings, $5.9 million from land, and $0.1 million from other Property, plant and equipment categories. These assets are allocated 85% to the TTEC Engage segment and 15% to the TTEC Digital segment. Funds received will be used to reduce the Company’s existing debt. The Company ceased depreciation on the assets upon reclassification. The estimated fair value less costs to sell the assets held for sale exceeded their carrying value as of the quarter ended June 30, 2024 and no impairment was considered necessary. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
SEGMENT INFORMATION [ABSTRACT] | |
SEGMENT INFORMATION | (3) SEGMENT INFORMATION The Company reports the following two segments: TTEC Digital and the CX Technology Services Industry TTEC Digital buyers are seeking solutions in several areas including cost optimization, migration from outdated legacy platforms to more agile cloud environments, lack of CX talent and expertise and a need for a practical way forward with AI. TTEC Digital takes a technology agnostic approach to these challenges and focuses on designing and delivering solutions specific to each client’s specifications. TTEC Digital has entered into strategic partnerships with the leading CX software vendors including Genesys, Microsoft, Cisco, AWS and Google which positions TTEC Digital to support the majority of CX platform requirements. TTEC Digital’s solutions are built to respond to market needs for both enterprise and small and medium-sized business clients. AI design and delivery capabilities are woven across all four of the following pillars. • Professional Services: CX and AI solution planning, design, and implementation services • Managed Services: Cloud application and premise support • CX Consulting, Analytics and AI: Transformation strategy and design, data science, engineering, and visualization • IP & Software: Custom software engineering through TTEC Digital’s IP and Software division The segment has a three-pronged go to market strategy that includes growing existing client relationships, partner channel motions and general market development. In 2023, TTEC Digital expanded its Hyderabad Innovation Studio in India with the goal of continuing to expand its offshore delivery capabilities, and currently approximately 41% of the staff are located in one of several offshore locations. TTEC Engage and the CX Business Process Outsourcing Services Industry The TTEC Engage segment’s solutions are built to respond to the following market needs for clients. • Customer Support • Tech Support • Revenue Generation and Growth Services • Trust & Safety • AI Operations, including data annotation and labeling • Back-office Support TTEC Engage goes to market through a vertical approach with customized solutions that include industry-specific talent, technology, certifications, and capabilities. For example, in the Banking, Financial Services and Insurance (“BFSI”) vertical, we support several lines of business with customized offerings for retail banking, online banking, credit card, property and casualty and loans. In healthcare, the segment supports care, technical support, revenue generation and back-office capabilities to meet the needs of payer, provider, clinical and pharma clients. 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, 2024 Depreciation Income/ Gross Intersegment Net & (loss) from Revenue Sales Revenue Amortization Operations TTEC Digital $ 116,368 $ — $ 116,368 $ 7,014 $ 6,008 TTEC Engage 417,717 — 417,717 18,057 (230,421) Total $ 534,085 $ — $ 534,085 $ 25,071 $ (224,413) Three Months Ended June 30, 2023 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 117,585 $ — $ 117,585 $ 6,722 $ 7,154 TTEC Engage 482,809 — 482,809 18,224 24,144 Total $ 600,394 $ — $ 600,394 $ 24,946 $ 31,298 Six Months Ended June 30, 2024 Depreciation Income/ Gross Intersegment Net & (loss) from Revenue Sales Revenue Amortization Operations TTEC Digital $ 228,399 $ — $ 228,399 $ 14,064 $ 9,296 TTEC Engage 882,324 — 882,324 36,152 (210,998) Total $ 1,110,723 $ — $ 1,110,723 $ 50,216 $ (201,702) Six Months Ended June 30, 2023 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 234,512 $ — $ 234,512 $ 13,583 $ 7,939 TTEC Engage 999,168 — 999,168 37,190 67,770 Total $ 1,233,680 $ — $ 1,233,680 $ 50,773 $ 75,709 Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Capital Expenditures TTEC Digital $ 2,290 $ 2,352 $ 4,077 $ 4,626 TTEC Engage 11,919 16,933 23,605 28,328 Total $ 14,209 $ 19,285 $ 27,682 $ 32,954 June 30, 2024 December 31, 2023 Total Assets TTEC Digital $ 798,832 $ 815,488 TTEC Engage 993,789 1,370,110 Total $ 1,792,621 $ 2,185,598 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, 2024 2023 2024 2023 Revenue United States / Canada $ 354,607 $ 414,854 $ 741,599 $ 858,890 Philippines / Asia Pacific / India 108,728 115,740 229,194 237,779 Europe / Middle East / Africa 42,188 36,023 81,031 70,477 Latin America 28,562 33,777 58,899 66,534 Total $ 534,085 $ 600,394 $ 1,110,723 $ 1,233,680 |
SIGNIFICANT CLIENTS AND OTHER C
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024; this client operates in the automotive industry and is included in the TTEC Engage segment. This client contributed 11.0% and 10.1% of total revenue for the six months ended June 30, 2024 and 2023, respectively. In addition, the Company has other clients with aggregate revenue exceeding $100 million annually and the loss of one or more of these clients could have a material adverse effect on the Company’s business, operating results, or financial condition. To mitigate this risk, the Company’s business arrangements with these larger clients are structured as multiple contracts with different statements of work that are specific to a different line of business or service; each of these contracts have different durations and renewal dates and a revenue opportunity below the $100 million aggregate. In the first quarter of 2024, one of our larger financial services clients notified us that it is exiting one of the lines of business that we support. To limit the Company’s credit risk with its clients, management performs periodic credit evaluations, maintains allowances for credit losses and may require pre-payment for services from certain clients whose financial stability or payment practices raise concern. Based on currently available information, management does not believe significant credit risk existed as of June 30, 2024. Activity in the Company’s Allowance for credit losses consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance, beginning of period $ 2,065 $ 5,078 $ 2,248 $ 3,524 Provision for credit losses 2,675 (558) 2,644 1,704 Uncollectible receivables written-off (6) (2,180) (156) (2,889) Effect of foreign currency 23 7 21 8 Balance, end of period $ 4,757 $ 2,347 $ 4,757 $ 2,347 Accounts Receivable Factoring Agreement The Company is party to an Uncommitted Receivables Purchase Agreement (“Agreement”) with BMO Bank, N.A. (“Bank”, or “BMO”), under the terms of which the Company may elect to sell, on a revolving basis, U.S. accounts receivables of certain clients at a discount to the Bank for cash on a limited recourse basis. The maximum amount of receivables that the Company may sell to the Bank at any given time shall not exceed $100 million. The sales of accounts receivable in accordance with the Agreement are reflected as a reduction of Accounts Receivable, net on the Consolidated Balance Sheets. The Company has retained no interest in the sold receivables but retains all collection responsibilities on behalf of the Bank. The discount on the accounts receivable sold will be recorded within Other expense, net in the Consolidated Statements of Comprehensive Income (Loss). The cash proceeds from this Agreement are included in the change in accounts receivable within the operating activities section of the Consolidated Statements of Cash Flow. The Agreement will be terminated in the third quarter of 2024. The balances related to the Agreement are as follows (in thousands): June 30, 2024 December 31, 2023 Total accounts receivable factored $ 61,956 $ 99,994 Total amounts collected from clients not yet remitted to Bank $ 19,890 $ 1,158 The unremitted cash is restricted cash and is included within Prepaid and other current assets with the corresponding liability included in Accrued expenses on the Consolidated Balance Sheet. The Company has not recorded any servicing assets or liabilities as of June 30, 2024 as the fair value of the servicing arrangement as well as the fees earned were not material to the financial statements. On July 21, 2023, BMO Financial Group completed its acquisition of Bank of the West from PNB Bank Paribas. The Agreement transitioned with the acquisition. On January 2, 2024, the Company amended the arrangement to adjust the discount rate to reflect BMO’s updated market pricing levels and other minor items. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2024 | |
GOODWILL [ABSTRACT] | |
GOODWILL. | (5) GOODWILL Goodwill consisted of the following (in thousands): Effect of December 31, Acquisitions / Foreign June 30, 2023 Adjustments Impairments Currency 2024 TTEC Digital $ 500,576 $ — $ — $ (740) $ 499,836 TTEC Engage 308,412 — (233,532) (1,091) 73,789 Total $ 808,988 $ — $ (233,532) $ (1,831) $ 573,625 The Company performs an annual goodwill impairment assessment on December 1 st During the Company’s annual impairment testing as of December 1, 2023, the Company identified one reporting unit, TTEC Engage, being at risk for future impairment. The carrying value of Engage was $1,092.1 million at December 1, 2023, including approximately $308.4 million of goodwill. During the first quarter of 2024, the Company concluded there were no triggering events and completed its qualitative assessment of impairment indicators, which included, among other things, an assessment of changes in macroeconomic conditions, comparison of the actual results to those forecasted in the most recent annual impairment test and performing sensitivity analysis on key assumptions. In the second quarter of 2024, the Company identified a triggering event for impairment primarily attributable to the impact of a sustained decline in its market capitalization that was less than the combined carrying value of the Company’s reporting units. As such, the Company performed a quantitative goodwill impairment analysis. The fair value of each reporting unit was estimated using an equal weighting of the income and market valuation approaches. The income approach applied a fair value methodology to each reporting unit based on discounted cash flows. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internally developed forecasts, estimation of the long-term rate of growth for the Company’s business, estimation of the useful life over which cash flows will occur, and determination of the Company’s weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit. The weighted average cost of capital used in the Company’s most recent impairment test ranged from 13.8% to 16.5%. The Company also applied a market approach, which develops a value correlation based on the market capitalization of similar publicly traded companies, referred to as a multiple, to apply to the operating results of the reporting units. The primary market multiples to which the Company compared are revenue and earnings before interest, taxes, depreciation, and amortization. The resulting fair value of the TTEC Engage reporting unit decreased below its carrying value, which resulted in recording a $196 million non-cash pre-tax impairment charge. Recognition of this non-cash goodwill impairment charge resulted in a tax benefit that generated an incremental deferred tax asset of $37.5 million to the reporting unit’s carrying value. Accordingly, the Company recorded an additional non-cash charge of $37.5 million to reduce the Company’s carrying value to its previously determined fair value in accordance with the applicable goodwill impairment guidance. In total, a non-cash impairment loss of $233.5 million was recognized for the second quarter ended June 30, 2024. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2024 | |
DERIVATIVES [ABSTRACT] | |
DERIVATIVES | (6) DERIVATIVES Cash Flow Hedges The Company enters into foreign exchange 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. Upon proper qualification, these contracts are designated as cash flow hedges. It is the Company’s policy to only enter into derivative contracts with investment grade counterparty financial institutions, and correspondingly, the fair value of derivative assets considers, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company’s creditworthiness. As of June 30, 2024, the Company has not experienced, nor does it anticipate, any issues related to derivative counterparty defaults. The following table summarizes the aggregate unrealized net gain or loss in Accumulated other comprehensive income (loss) for the three and six months ended June 30, 2024 and 2023 (in thousands and net of tax): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Aggregate unrealized net gain/(loss) at beginning of period $ 6,080 $ 6,640 $ 6,315 $ 89 Add: Net gain/(loss) from change in fair value of cash flow hedges (6,281) (115) (5,315) 6,052 Less: Net (gain)/loss reclassified to earnings from effective hedges (269) 639 (1,470) 1,023 Aggregate unrealized net gain/(loss) at end of period $ (470) $ 7,164 $ (470) $ 7,164 The Company’s foreign exchange cash flow hedging instruments as of June 30, 2024 and December 31, 2023 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts. Local Currency U.S. Dollar % Maturing Contracts Notional Notional in the next Maturing As of June 30, 2024 Amount Amount 12 months Through Canadian Dollar 750 $ 557 100.0 % September 2024 Philippine Peso 7,924,000 138,843 (1) 61.8 % March 2027 Mexican Peso 638,000 30,417 64.9 % December 2026 $ 169,817 Local Currency U.S. Dollar Notional Notional As of December 31, 2023 Amount Amount Canadian Dollar 2,250 $ 1,670 Philippine Peso 9,324,000 165,842 (1) Mexican Peso 938,000 44,155 $ 211,667 (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, 2024 and December 31, 2023. 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, 2024 and December 31, 2023 the total notional amounts of the Company’s forward contracts used as fair value hedges were $41.7 million and $73.3 million, respectively. Derivative Valuation and Settlements The Company’s derivatives as of June 30, 2024 and December 31, 2023 were as follows (in thousands): June 30, 2024 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 3,329 $ 104 Other long-term assets 429 — Other current liabilities (2,922) (41) Other long-term liabilities (1,469) — Total fair value of derivatives, net $ (633) $ 63 December 31, 2023 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 7,527 $ 327 Other long-term assets 2,415 — Other current liabilities (1,214) (120) Other long-term liabilities (197) — Total fair value of derivatives, net $ 8,531 $ 207 The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended June 30, 2024 2023 Designated as Hedging Designation: Instruments Derivative contract type: Foreign Exchange Derivative classification: Cash Flow Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax $ 269 $ 639 Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ 364 $ 864 Three Months Ended June 30, 2024 2023 Designation: Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Derivative classification: Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Other income (expense), net $ (756) $ (14) The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the six months ended June 30, 2024 and 2023 were as follows (in thousands): Six Months Ended June 30, 2024 2023 Designated as Hedging Designation: Instruments Derivative contract type: Foreign Exchange Derivative classification: Cash Flow Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax $ 1,471 $ 1,023 Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ 1,988 $ 1,383 Six Months Ended June 30, 2024 2023 Designation: Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Derivative classification: Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Other income (expense), net $ (530) $ 1,386 |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024 and December 31, 2023 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 Investments – Debt Derivatives - The following is a summary of the Company’s fair value measurements for its net derivative assets (liabilities) as of June 30, 2024 and December 31, 2023 (in thousands): As of June 30, 2024 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) At Fair Value Cash flow hedges $ — $ (633) $ — $ (633) Fair value hedges — 63 — 63 Total net derivative asset (liability) $ — $ (570) $ — $ (570) As of December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) At Fair Value Cash flow hedges $ — $ 8,531 $ — $ 8,531 Fair value hedges — 207 — 207 Total net derivative asset (liability) $ — $ 8,738 $ — $ 8,738 The following is a summary of the Company’s fair value measurements as of June 30, 2024 and December 31, 2023 (in thousands): As of June 30, 2024 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ — $ — Deferred compensation plan asset 35,274 — — Total assets $ 35,274 $ — $ — Liabilities Derivative instruments, net $ — $ (570) $ — Contingent consideration — — (449) Total liabilities $ — $ (570) $ (449) As of December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 8,738 $ — Deferred compensation plan asset 31,082 — — Total assets $ 31,082 $ 8,738 $ — Liabilities Derivative instruments, net $ — $ — $ — Contingent consideration — — (1,496) Total liabilities $ — $ — $ (1,496) Deferred Compensation Plan Contingent Consideration During 2022 and 2023, fair value adjustments of a $2.9 million benefit and a $3.0 million expense, respectively, were recorded related to fair value adjustments of the estimated contingent payments associated with the Faneuil acquisition based on updated discount factors, the passage of time, updated EBITDA estimates and a modification to the agreement (see Note 2) for one contract, and a complete reduction for the second contract as it was not awarded to the Company. During 2024, a fair value adjustment of a $1.0 million benefit was recorded related to fair value adjustments of the estimated contingent payments associated with the Faneuil acquisition based on updated discount factors, the passage of time, and updated EBITDA estimates. The fair value adjustment benefits(expenses) were 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): Imputed December 31, Interest / June 30, 2023 Acquisitions Payments Adjustments 2024 Faneuil $ (1,496) $ — $ — $ 1,047 $ (449) Total $ (1,496) $ — $ — $ 1,047 $ (449) |
IMPAIRMENT OF ASSETS
IMPAIRMENT OF ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract] | |
RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES | (8) IMPAIRMENT OF ASSETS The Company evaluated the recoverability of its leasehold improvement assets at certain customer engagement centers, building and land assets, as well as all internally developed software projects. An asset group is considered to be impaired when the anticipated undiscounted future cash flows of its asset group is estimated to be less than the asset group’s carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During the three and six months ended June 30, 2024, the Company recognized impairment losses, net related to leasehold improvements assets, right of use lease assets, capitalized software and certain computer equipment of $3.2 million and $3.3 million, respectively, across the TTEC Digital and TTEC Engage segments. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES [ABSTRACT] | |
INCOME TAXES | (9) 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. The Company’s selection of an accounting policy with respect to both the global intangible low taxed foreign income (“GILTI”) and base erosion and anti-abuse tax (“BEAT”) rules is to compute the related taxes in the period the entity becomes subject to either GILTI or BEAT. At the end of each interim period, we are required to estimate our annual effective tax rate for the fiscal year and to use that rate to provide for income taxes for the current year-to-date reporting period. The Company’s 2024 estimated annual effective tax rate of 21.4%, before discrete items, is driven by the distribution of income between the U.S. and international tax jurisdictions, earnings in international jurisdictions currently under an income tax holiday, and the impact of valuation allowances in the United States and several other jurisdictions. The Company’s effective tax rate for the six months ended June 30, 2024 was (23.5)%. This rate was the result of low year-to-date income, the exclusion of losses related to entities with a full valuation allowance and includes a $37.5 million benefit related to an impairment charge, and $84.1 million of expense related to changes in valuation allowances during the quarter. The Company’s U.S. income tax returns filed for the tax years ending December 31, 2017 to present, remain open tax years. The Company has been notified of the intent to audit or is currently under audit of income taxes for the United States for tax year 2017 and 2018, the Philippines for tax years 2021 to 2023, the State of Oregon in the United States for tax years 2020 through 2022, the State of Illinois in the United States for tax year 2020, the State of Wisconsin in the United States for tax years 2019 through 2021, Canada for tax year 2021, and India for tax years 2017 through 2022. 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. The Organization for Economic Co-operation and Development (OECD), supported by 140 of their member countries, have agreed to implement a minimum 15% tax rate on certain multinational enterprises and have released model guidance. This global minimum tax, known as the Pillar Two framework, became effective across various countries in 2024, as each country works to enact legislation influenced by the OECD Pillar 2 rules. While the Company does not expect the adoption of the Pillar Two framework to have a material impact on its effective tax rate, the Company continues to evaluate additional guidance released by the OECD, along with the pending and adopted legislation in each of the countries in which it operates. 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 first, second and third quarters of 2023, a $1.3 million, a $3.1 million and a $4.4 million valuation allowance were recorded, respectively, for assets that are not expected to be recovered in future periods. Additionally, during the third quarter 2023, a valuation allowance in the amount of $1.7 million was released for assets now expected to be recovered in future periods. During the first and second quarters of 2024, a $3.0 million and $81.1 million net valuation allowance was recorded, respectively, for assets that are not expected to be recovered in future periods. The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Honduras. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements under local laws which result in an overall reduced tax rate. These incentives have varying benefit year over year and expire at various times beginning in 2031. The aggregate benefit to income tax expense for the three months ended June 30, 2024 and 2023 was approximately $0.6 million and $0.4 million, respectively, which had an impact on diluted net income per share of $0.01 and $0.01, respectively. The aggregate benefit to income tax expense for the six months ended June 30, 2024 and 2023 was approximately $1.3 million and $1.1 million, respectively, which had an impact on diluted net income per share of $0.03 and $0.02, respectively. Since 2017, the Company has been making tax payments to the IRS due to the one-time transition tax on untaxed foreign earnings of foreign subsidiaries, as mandated by the Tax Cuts and Jobs Act. The final payment for this charge will be paid in December of 2024 for a total cash payment of $10.4 million this year, resulting in reduction in cash taxes going forward. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | (10) COMMITMENTS AND CONTINGENCIES Credit Facility On April 3, 2023, the Company entered into a Seventh Amendment to the Credit Agreement which replaces the use of LIBOR with SOFR as of the date of the amendment, thus will affect the interest rates paid for a portion of the Credit Facility starting in the second quarter of 2023. On February 26, 2024, the Company entered into an Eighth Amendment to the Credit Agreement to increase the net leverage ratio covenant, the lenders’ commitment fee rate and margin for a period starting with the quarter ending March 31, 2024 through the quarter ending March 31, 2025, from the current 3.5 to 1 to between 4.0 to 1 and 4.5 to 1, as may be applicable in different quarters; and reduced the total lenders’ commitment from $1.5 billion to $1.3 billion. TTEC may, at its option for any quarter during the amendment period, elect to revert to the net leverage ratio and the corresponding lenders’ commitment fee rate and margin to pre-amendment levels. The term of the Credit Facility will remain unchanged through November 23, 2026. On August 8, 2024, the Company entered into a Ninth Amendment to the Credit Agreement (the “Ninth Amendment”) to, among other things, provide for less restrictive financial covenants in respect of the leverage ratio and the interest coverage ratio for the period beginning with the third quarter of 2024 through the first quarter of 2026 (the “Covenant Adjustment Period”). Specifically, the revisions permit a maximum leverage ratio of up to 5.15 to 1.00 and a minimum interest coverage ratio of not less than 2.00 to 1.00 as of the end the third quarter of 2024, with such levels gradually becoming more restrictive during subsequent quarters of the Covenant Adjustment Period. The Company’s Credit Agreement includes a number of financial covenants and operating restrictions of which failure to comply could result in a default under the Credit Agreement. The Company’s ability to comply with the covenants will depend on, among other matters, factors discussed in the section titled “Cautionary Note Regarding Forward Looking Statements” included elsewhere in this report, many of which are beyond the Company’s control. As of the issuance of these financial statements, the Company believes it has sufficient cash on hand, positive working capital, and availability to access additional cash under the Credit Facility to meet its business operating requirements, its capital expenditures and to continue to comply with the amended debt covenants. In the event that the Company does not remain in compliance with the financial covenants under the Credit Facility, it may need to negotiate additional amendments to or waivers of the terms of such credit facilities, refinance its debt, or raise additional capital. The Company could also adjust its capital allocation strategy. The maximum commitment under the Credit Facility is $1.2 billion in the aggregate, if certain conditions are satisfied. The Credit Facility commitment fees are payable to the lenders in an amount equal to the unused portion of the Credit Facility multiplied by a rate per annum as determined by reference to the Company’s net leverage ratio. The Credit Agreement contains customary affirmative, negative, and financial covenants. The Credit Agreement also permits the utilization of up to $100 million of limits within the Credit Facility for letters of credit to be used in the business. As defined in the Credit Agreement, base rate loans bear interest at a rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 0.50%, and (c) SOFR in effect on such day plus 1.0%. Base rate loans shall be based on the base rate, plus the applicable credit margin which ranges from 0.375% to 2.5% based on the Company’s net leverage ratio. SOFR loans bear interest at a rate equal to the applicable spread adjusted SOFR plus applicable credit margin which ranges from 1.375% to 3.5% based on the Company’s net leverage ratio. Alternative currency loans (not denominated in U.S. Dollars) bear interest at rates applicable to their respective currencies. Letter of credit fees are one eighth of 1% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for SOFR loans. As of June 30, 2024 and December 31, 2023, the Company had borrowings of $930.0 million and $995.0 million, respectively, under its Credit Facility, and its average daily utilization was $1,045.3 million and $1,057.7 million for the six months ended June 30, 2024 and 2023, respectively. Based on the current level of availability based on the covenant calculations, the Company’s remaining borrowing capacity was approximately $100 million as of June 30, 2024. As of June 30, 2024, the Company was in compliance with all covenants and conditions under its Credit Agreement. Letters of Credit As of June 30, 2024, outstanding letters of credit under the Credit Facility totaled $0.2 million. As of June 30, 2024, letters of credit and contract performance guarantees issued outside of the Credit Agreement totaled $0.3 million. Guarantees Indebtedness under the Credit Agreement is guaranteed by certain of the Company’s present and future domestic subsidiaries. Legal Proceedings From time to time, the Company has been involved in legal actions, both as plaintiff and defendant, which arise in the ordinary course of business. The Company accrues for exposures associated with such legal actions to the extent that losses are deemed both probable and reasonably 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. |
DEFERRED REVENUE AND REMAINING
DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | (11) DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS Revenue recognized for the six months ended June 30, 2024 from amounts included in deferred revenue as of December 31, 2023 was $140.2 million. Revenue recognized for the six months ended June 30, 2023 from amounts included in deferred revenue as of December 31, 2022 was $167.1 million. Remaining performance obligations (“RPO”) represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. The Company’s RPO excludes performance obligations from on-demand arrangements as there are no minimum purchase commitments associated with these arrangements, and certain time and materials contracts that are billed in arrears. As of June 30, 2024, the Company’s RPO was $425.4 million, which will be delivered and recognized within the next five years. However, the amount and timing of revenue recognition are generally driven by customer consumption, which can extend beyond the original contract term in cases where customers are permitted to roll over unused capacity to future periods, generally upon the purchase of additional capacity at renewal. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | (12) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents changes in the accumulated balance for each component of Other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of Accumulated other comprehensive income (loss) (in thousands): Foreign Currency Derivative Translation Valuation, Net Other, Net Adjustment of Tax of Tax Totals Accumulated other comprehensive income (loss) at December 31, 2022 $ (123,734) $ 89 $ (2,656) $ (126,301) Other comprehensive income (loss) before reclassifications 28,281 8,100 56 36,437 Amounts reclassified from accumulated other comprehensive income (loss) 301 (1,024) 124 (599) Net current period other comprehensive income (loss) 28,582 7,076 180 35,838 Accumulated other comprehensive income (loss) at June 30, 2023 $ (95,152) $ 7,165 $ (2,476) $ (90,463) Accumulated other comprehensive income (loss) at December 31, 2023 $ (93,144) $ 6,315 $ (3,047) $ (89,876) Other comprehensive income (loss) before reclassifications (11,132) (5,315) 19 (16,428) Amounts reclassified from accumulated other comprehensive income (loss) — (1,470) 193 (1,277) Net current period other comprehensive income (loss) (11,132) (6,785) 212 (17,705) Accumulated other comprehensive income (loss) at June 30, 2024 $ (104,276) $ (470) $ (2,835) $ (107,581) 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): Statement of For the Three Months Ended June 30, Comprehensive Income 2024 2023 (Loss) Classification Derivative valuation Gain on foreign currency forward exchange contracts $ 364 $ 864 Revenue Tax effect (95) (225) Provision for income taxes $ 269 $ 639 Net income (loss) Other Actuarial loss on defined benefit plan $ (110) $ (69) Cost of services Gain on liquidation 19 — Other income (expense), net Tax effect 11 7 Provision for income taxes $ (80) $ (62) Net income (loss) Statement of For the Six Months Ended June 30, Comprehensive Income 2024 2023 (Loss) Classification Derivative valuation Gain on foreign currency forward exchange contracts $ 1,988 $ 1,383 Revenue Tax effect (518) (359) Provision for income taxes $ 1,470 $ 1,024 Net income (loss) Other Actuarial loss on defined benefit plan $ (231) $ (138) Cost of services Gain on liquidation 19 — Other income (expense), net Tax effect 19 14 Provision for income taxes $ (193) $ (124) Net income (loss) |
WEIGHTED AVERAGE SHARE COUNTS
WEIGHTED AVERAGE SHARE COUNTS | 6 Months Ended |
Jun. 30, 2024 | |
Weighted Average Share Counts | |
NET INCOME PER SHARE | (13) WEIGHTED AVERAGE SHARE COUNTS 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, 2024 2023 2024 2023 Shares used in basic earnings per share calculation 47,564 47,264 47,498 47,249 Effect of dilutive securities: Restricted stock units 59 186 84 156 Performance-based restricted stock units — 3 3 12 Total effects of dilutive securities 59 189 87 168 Shares used in dilutive earnings per share calculation 47,623 47,453 47,585 47,417 For the three months ended June 30, 2024 and 2023, there were 2.3 million and 1.0 million outstanding Restricted Stock Units (“RSUs”), respectively, that were excluded from the computation of diluted net income per share because the effect would have been anti-dilutive. For the six months ended June 30, 2024 and 2023, there were 1.7 million and 0.9 million outstanding RSUs, respectively, that were excluded from the computation of diluted net income per share because the effect would have been anti-dilutive. |
EMPLOYEE COMPENSATION PLANS
EMPLOYEE COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2024 | |
EMPLOYEE COMPENSATION PLANS [Abstract] | |
EMPLOYEE COMPENSATION PLANS | (14) 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. The following tables present the total equity-based compensation expense for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, 2024 2023 Equity-based compensation expense recognized in Cost of services $ 1,991 $ 2,536 Equity-based compensation expense recognized in Selling, general and administrative 3,113 3,113 Total equity-based compensation expense $ 5,104 $ 5,649 Six Months Ended June 30, 2024 2023 Equity-based compensation expense recognized in Cost of services $ 4,235 $ 4,398 Equity-based compensation expense recognized in Selling, general and administrative 6,681 5,404 Total equity-based compensation expense $ 10,916 $ 9,802 Restricted Stock Unit Grants During the six months ended June 30, 2024 and 2023, the Company granted 3,106,297 and 547,254 RSUs, respectively, to new and existing employees, which vest over four Performance Based Restricted Stock Unit Grants During 2021, the Company awarded Performance Restricted Stock Units (“PRSUs”) subject to service and performance vesting conditions. If defined minimum targets were met, the annual value of the PRSUs issued would be between $1.2 million and $4.9 million and vest in 2024. If the defined minimum targets were not met, then no PRSUs will be issued. The award amounts were based on the Company’s annual revenue and adjusted operating income for fiscal year 2023. The Company recognized compensation expense related to the 2021 PRSUs of $0.0 million and $0.0 million for the three and six months ended June 30, 2024, respectively. The Company recognized compensation expense related to the 2021 PRSUs of $0.2 million and $0.4 million for the three and six months ended June 30, 2023, respectively. During 2022, the Company made awards of two different PRSU programs that are subject to service and performance vesting conditions: ordinary course annual PRSUs and one-time stretch financial goals PRSUs. For the ordinary course annual PRSUs, if defined minimum targets are met, the annual value of the PRSUs issued will be between $0.9 million and $3.5 million and vest in March 2025. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded will be based on the Company’s annual revenue and adjusted EBITDA for fiscal year 2024. For the one-time stretch financial goals PRSUs, if defined minimum targets at TTEC Engage and TTEC Digital business segments’ levels are met, the Company will issue between 0.0 million and 0.5 million PRSUs that will vest immediately in March 2026. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded will be based on the TTEC Engage and TTEC Digital business segments’ annual revenue and adjusted EBITDA for fiscal year 2025. For the ordinary course annual PRSUs, no expense was recognized for the six months ended June 30, 2024. Expense for the one-time stretch financial goals PRSUs will begin at the start of the requisite service period, beginning January 1, 2025. During 2023, the Company awarded PRSUs that are subject to service and performance vesting conditions. If defined minimum targets are met, the Company will issue PRSUs with an annual value between zero and $8.9 million that will vest in 2026. If the defined minimum targets are not met, then no PRSUs will be issued. The number of PRSUs awarded will be based on the Company’s annual revenue and adjusted EBITDA for fiscal year 2025. Expense for these awards will begin at the start of the requisite service period, beginning January 1, 2025. During the second quarter of 2024, the Company awarded PRSUs to one senior executive that are subject to service and performance vesting conditions. If defined minimum targets are met, the Company will issue PRSUs with an annual value between zero and $2.9 million that vest in 2025. If the defined minimum targets are not met, then no PRSUs will be issued. The number of PRSUs awarded will be based on the Company’s Europe, Middle East and Africa region of TTEC Digital’s annual revenue and adjusted EBITDA for fiscal year 2025. Expense for these awards will begin at the start of the requisite service period, beginning January 1, 2025. Additional PRSUs may be issued to other Company executives before the end of the fiscal year 2024 based on performance targets in the measurement period of fiscal year 2026, which PRSUs will vest in 2027; the terms and conditions for these additional PRSUs have not yet been determined. |
DEFERRED COMPENSATION PLAN
DEFERRED COMPENSATION PLAN | 6 Months Ended |
Jun. 30, 2024 | |
Defined Contribution Plan [Abstract] | |
Deferred Compensation Plan | (15) NON-QUALIFIED DEFERRED COMPENSATION PLAN The Company maintains a non-qualified |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
RELATED PARTY TRANSACTIONS [ABSTRACT] | |
RELATED PARTY TRANSACTIONS | (16) RELATED PARTY TRANSACTIONS The Company entered into an agreement under which Avion, LLC (“Avion”) and Airmax LLC (“Airmax”) provide certain aviation flight services as requested by the Company. Such services include the use of an aircraft and flight crew. Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company, has an indirect 100% beneficial ownership interest in Avion and Airmax. During the six months ended June 30, 2024 and 2023, the Company expensed $0.2 million and $0.7 million, respectively, to Avion and Airmax for services provided to the Company. There was $36 thousand in payments due and outstanding to Avion and Airmax as of June 30, 2024. Ms. Michelle Swanback, President of the Company, is a member of the board of directors of WTW (NYSE: WTW) (fka “Willis Towers Watson”), that provides compensation consulting and insurance brokerage services to the Company. During the six months ended June 30, 2024 and 2023, the Company expensed $1.5 million and $1.8 million, respectively, for these services. |
OVERVIEW AND SUMMARY OF SIGNIFI
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
Overview | Summary of Business Founded in 1982, TTEC Holdings, Inc. (“TTEC”, “the Company”; pronounced “T-TEC”) is a global customer experience (“CX”) outsourcing partner for marquee and disruptive brands and public sector clients. The Company designs, builds, and operates technology-enabled customer experiences across digital and live interaction channels to help clients increase customer loyalty, revenue, and profitability. By combining digital solutions with data-driven service capabilities, the Company helps clients improve their customer satisfaction while lowering their total cost to serve. As of June 30, 2024, TTEC served approximately 740 The Company operates and reports its financial results of operation through two business segments: • TTEC Digital is one of the largest CX technology providers and is focused exclusively on the intersection of Contact Center as a Service (CCaaS), Customer Relationship Management (CRM), and Artificial Intelligence (AI) and Analytics. A professional services organization comprised of software engineers, systems architects, data scientists and CX strategists, this segment creates and implements strategic CX transformation roadmaps; sells, operates, and provides managed services for cloud platforms and premise based CX technologies including Amazon Web Services (“AWS”), Cisco, Genesys, Google, and Microsoft; and creates proprietary IP to support industry specific and custom client needs. TTEC Digital serves clients across enterprise and small and medium sized business segments and has a dedicated unit with government technology certifications serving the public sector. • TTEC Engage provides the digitally enabled CX operational and managed services to support large, complex enterprise clients’ end-to-end customer interactions at scale. Tailored to meet industry-specific and business needs, this segment delivers data-driven omnichannel customer care, customer acquisition, growth, and retention services, tech support, trust and safety and back-office solutions. The segment’s technology-enabled delivery model covers the entire associate lifecycle including recruitment, onboarding, training, delivery, workforce management and quality assurance. TTEC demonstrates its market leadership through strategic collaboration across TTEC Digital and TTEC Engage when there is client demand and fit for the Company’s integrated solutions. This partnership is central to the Company’s ability to deliver comprehensive and transformational customer experience solutions to its clients, including integrated delivery, go-to-market and innovation for truly differentiated, market leading CX solutions. During the second quarter of 2024, the combined TTEC Digital and TTEC Engage global operating platform delivered onshore, nearshore and offshore services in 22 countries on six continents – the United States, Australia, Belgium, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Germany, Greece, Honduras, India, Ireland, Mexico, the Netherlands, New Zealand, the Philippines, Poland, South Africa, Thailand, and the United Kingdom – with the help of approximately 54,000 customer care associates, consultants, technologists, and CX professionals. |
Basis Of Presentation | Basis of Presentation The Consolidated Financial Statements are comprised of the accounts of TTEC, its wholly owned subsidiaries, its 55% equity owned subsidiary Percepta, LLC, its 70% equity owned subsidiary First Call Resolution, LLC through March 31, 2023 and then 100% owned subsequently, and its 70% equity owned subsidiary Serendebyte, Inc. through December 31, 2023 and then 100% owned subsequently (see Note 2). 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. All such adjustments are of a normal, recurring nature. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 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 |
Reclassifications [Text Block] | Out-of-period Adjustment The Consolidated Financial Statements for the three months ended June 30, 2023 included an adjustment of $14.2 million to other comprehensive income and deferred tax assets, to correct for an error identified by management during the preparation of the financial statements. This adjustment was to reflect the deferred tax impact of currency translation adjustments, of which $14.2 million related to prior annual fiscal periods. Management has determined that this error was not material to the historical financial statements in any individual period or in the aggregate and did not result in the previously issued financial statements being materially misstated. The impact to the three and six month periods ended June 30, 2023 was not material. As such, management recorded the correction as an out-of-period adjustment in the three months ended June 30, 2023. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, litigation reserves, restructuring reserves, allowance for credit losses, contingent consideration, redeemable noncontrolling interest, 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. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash, primarily held in interest-bearing investments, and liquid short-term investments, which have original maturities of three months or less. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands): June 30, 2024 December 31, 2023 Cash and cash equivalents $ 79,780 $ 172,747 Restricted cash included in "Prepaid and other current assets" 19,890 1,158 Total $ 99,670 $ 173,905 |
Concentration of Credit Risk | Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial, but in light of recent economic headwinds the Company is reviewing and tightening its collection processes. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across eight investment-grade financial institutions. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform” (Topic 848), which provides optional expedients and exceptions for contracts, hedging relationships, and other transactions affected by reference rate reform due to the anticipated cessation of the London Interbank Offered Rate (”LIBOR”). The ASU is effective from March 12, 2020, may be applied prospectively and could impact the accounting for LIBOR provisions in the Company’s credit facility agreement. In addition, in January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform – Scope,” which clarified the scope of FASB Accounting Standards Codification (“ASC”) 848 relating to contract modifications. The Company adopted the standard effective April 1, 2023 and the adoption of this guidance did not have a material impact on the Company’s financial position, results of operations or cash flows. Other Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures” which relates to disclosures regarding a public entity’s reportable segments and provides more detailed information about a reportable segment’s expenses. The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with retrospective application required. The Company is assessing the effect on its annual consolidated financial statement disclosures; however, adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” to enhance the transparency and decision usefulness of income tax disclosures. The ASU is effective for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is assessing the effect on its annual consolidated financial statement disclosures; however, adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
OVERVIEW AND BASIS OF PRESENT_2
OVERVIEW AND BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets that sum to the amounts reported in the Consolidated Statement of Cash Flows (in thousands): June 30, 2024 December 31, 2023 Cash and cash equivalents $ 79,780 $ 172,747 Restricted cash included in "Prepaid and other current assets" 19,890 1,158 Total $ 99,670 $ 173,905 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Faneuil | |
Schedule of Assets Acquired and Liabilities Assumed | The following summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): Acquisition Date Fair Value Cash $ — Accounts receivable, net 704 Prepaid and other assets 8,420 Net fixed assets 5,622 Right of use lease assets 17,778 Other assets 2,572 Customer relationships 61,310 Goodwill 75,902 $ 172,308 Accrued employee compensation $ 202 Accrued expenses 2,763 Right of use lease liability – current 3,129 Right of use lease liability – non-current 14,092 Deferred income 811 Other liabilities 8,891 $ 29,888 Total purchase price $ 142,420 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SEGMENT INFORMATION [ABSTRACT] | |
Schedule of Segment Selected Financial Data | The following tables present certain financial data by segment (in thousands): Three Months Ended June 30, 2024 Depreciation Income/ Gross Intersegment Net & (loss) from Revenue Sales Revenue Amortization Operations TTEC Digital $ 116,368 $ — $ 116,368 $ 7,014 $ 6,008 TTEC Engage 417,717 — 417,717 18,057 (230,421) Total $ 534,085 $ — $ 534,085 $ 25,071 $ (224,413) Three Months Ended June 30, 2023 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 117,585 $ — $ 117,585 $ 6,722 $ 7,154 TTEC Engage 482,809 — 482,809 18,224 24,144 Total $ 600,394 $ — $ 600,394 $ 24,946 $ 31,298 Six Months Ended June 30, 2024 Depreciation Income/ Gross Intersegment Net & (loss) from Revenue Sales Revenue Amortization Operations TTEC Digital $ 228,399 $ — $ 228,399 $ 14,064 $ 9,296 TTEC Engage 882,324 — 882,324 36,152 (210,998) Total $ 1,110,723 $ — $ 1,110,723 $ 50,216 $ (201,702) Six Months Ended June 30, 2023 Depreciation Income Gross Intersegment Net & from Revenue Sales Revenue Amortization Operations TTEC Digital $ 234,512 $ — $ 234,512 $ 13,583 $ 7,939 TTEC Engage 999,168 — 999,168 37,190 67,770 Total $ 1,233,680 $ — $ 1,233,680 $ 50,773 $ 75,709 Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Capital Expenditures TTEC Digital $ 2,290 $ 2,352 $ 4,077 $ 4,626 TTEC Engage 11,919 16,933 23,605 28,328 Total $ 14,209 $ 19,285 $ 27,682 $ 32,954 June 30, 2024 December 31, 2023 Total Assets TTEC Digital $ 798,832 $ 815,488 TTEC Engage 993,789 1,370,110 Total $ 1,792,621 $ 2,185,598 |
Schedule of Revenue by Geographic Area | 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, 2024 2023 2024 2023 Revenue United States / Canada $ 354,607 $ 414,854 $ 741,599 $ 858,890 Philippines / Asia Pacific / India 108,728 115,740 229,194 237,779 Europe / Middle East / Africa 42,188 36,023 81,031 70,477 Latin America 28,562 33,777 58,899 66,534 Total $ 534,085 $ 600,394 $ 1,110,723 $ 1,233,680 |
ACCOUNTS RECEIVABLE AND SIGNIFI
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | |
Schedule of Change in Allowance for Doubtful Accounts | Activity in the Company’s Allowance for credit losses consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Balance, beginning of period $ 2,065 $ 5,078 $ 2,248 $ 3,524 Provision for credit losses 2,675 (558) 2,644 1,704 Uncollectible receivables written-off (6) (2,180) (156) (2,889) Effect of foreign currency 23 7 21 8 Balance, end of period $ 4,757 $ 2,347 $ 4,757 $ 2,347 |
Schedule Of Receivables Net Current [Table Text Block] | The balances related to the Agreement are as follows (in thousands): June 30, 2024 December 31, 2023 Total accounts receivable factored $ 61,956 $ 99,994 Total amounts collected from clients not yet remitted to Bank $ 19,890 $ 1,158 |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
GOODWILL [ABSTRACT] | |
Schedule of Goodwill Rollforward | Goodwill consisted of the following (in thousands): Effect of December 31, Acquisitions / Foreign June 30, 2023 Adjustments Impairments Currency 2024 TTEC Digital $ 500,576 $ — $ — $ (740) $ 499,836 TTEC Engage 308,412 — (233,532) (1,091) 73,789 Total $ 808,988 $ — $ (233,532) $ (1,831) $ 573,625 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
DERIVATIVES [ABSTRACT] | |
Schedule of Cash Flow Hedges OCI Rollforward | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Aggregate unrealized net gain/(loss) at beginning of period $ 6,080 $ 6,640 $ 6,315 $ 89 Add: Net gain/(loss) from change in fair value of cash flow hedges (6,281) (115) (5,315) 6,052 Less: Net (gain)/loss reclassified to earnings from effective hedges (269) 639 (1,470) 1,023 Aggregate unrealized net gain/(loss) at end of period $ (470) $ 7,164 $ (470) $ 7,164 |
Schedule of Notional Amounts of Outstanding Cash Flow Hedges | The Company’s foreign exchange cash flow hedging instruments as of June 30, 2024 and December 31, 2023 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts. Local Currency U.S. Dollar % Maturing Contracts Notional Notional in the next Maturing As of June 30, 2024 Amount Amount 12 months Through Canadian Dollar 750 $ 557 100.0 % September 2024 Philippine Peso 7,924,000 138,843 (1) 61.8 % March 2027 Mexican Peso 638,000 30,417 64.9 % December 2026 $ 169,817 Local Currency U.S. Dollar Notional Notional As of December 31, 2023 Amount Amount Canadian Dollar 2,250 $ 1,670 Philippine Peso 9,324,000 165,842 (1) Mexican Peso 938,000 44,155 $ 211,667 (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, 2024 and December 31, 2023. |
Schedule of Derivatives Instruments on Balance Sheet | The Company’s derivatives as of June 30, 2024 and December 31, 2023 were as follows (in thousands): June 30, 2024 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 3,329 $ 104 Other long-term assets 429 — Other current liabilities (2,922) (41) Other long-term liabilities (1,469) — Total fair value of derivatives, net $ (633) $ 63 December 31, 2023 Designated Not Designated as Hedging as Hedging Designation: Instruments Instruments Foreign Foreign Derivative contract type: Exchange Exchange Derivative classification: Cash Flow Fair Value Fair value and location of derivative in the Consolidated Balance Sheet: Prepaids and other current assets $ 7,527 $ 327 Other long-term assets 2,415 — Other current liabilities (1,214) (120) Other long-term liabilities (197) — Total fair value of derivatives, net $ 8,531 $ 207 |
Schedule of cash flow hedge impact on Statement of Comprehensive Income | The effects of derivative instruments on the Consolidated Statements of Comprehensive Income (Loss) for the three months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended June 30, 2024 2023 Designated as Hedging Designation: Instruments Derivative contract type: Foreign Exchange Derivative classification: Cash Flow Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax $ 269 $ 639 Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ 364 $ 864 Six Months Ended June 30, 2024 2023 Designated as Hedging Designation: Instruments Derivative contract type: Foreign Exchange Derivative classification: Cash Flow Amount of gain or (loss) recognized in Other comprehensive income (loss) - effective portion, net of tax $ 1,471 $ 1,023 Amount and location of net gain or (loss) reclassified from Accumulated OCI to income - effective portion: Revenue $ 1,988 $ 1,383 |
Schedule of fair value derivative impact on Statement of Comprehensive Income | Three Months Ended June 30, 2024 2023 Designation: Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Derivative classification: Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Other income (expense), net $ (756) $ (14) Six Months Ended June 30, 2024 2023 Designation: Not Designated as Hedging Instruments Derivative contract type: Foreign Exchange Derivative classification: Fair Value Amount and location of net gain or (loss) recognized in the Consolidated Statement of Comprehensive Income (Loss): Other income (expense), net $ (530) $ 1,386 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE [Abstract] | |
Schedule of Fair Value Derivative Assets and Liabilities | The following is a summary of the Company’s fair value measurements for its net derivative assets (liabilities) as of June 30, 2024 and December 31, 2023 (in thousands): As of June 30, 2024 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) At Fair Value Cash flow hedges $ — $ (633) $ — $ (633) Fair value hedges — 63 — 63 Total net derivative asset (liability) $ — $ (570) $ — $ (570) As of December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) At Fair Value Cash flow hedges $ — $ 8,531 $ — $ 8,531 Fair value hedges — 207 — 207 Total net derivative asset (liability) $ — $ 8,738 $ — $ 8,738 |
Schedule of Fair Value Assets and Liabilities | The following is a summary of the Company’s fair value measurements as of June 30, 2024 and December 31, 2023 (in thousands): As of June 30, 2024 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ — $ — Deferred compensation plan asset 35,274 — — Total assets $ 35,274 $ — $ — Liabilities Derivative instruments, net $ — $ (570) $ — Contingent consideration — — (449) Total liabilities $ — $ (570) $ (449) As of December 31, 2023 Fair Value Measurements Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs (Level 1) (Level 2) (Level 3) Assets Derivative instruments, net $ — $ 8,738 $ — Deferred compensation plan asset 31,082 — — Total assets $ 31,082 $ 8,738 $ — Liabilities Derivative instruments, net $ — $ — $ — Contingent consideration — — (1,496) Total liabilities $ — $ — $ (1,496) |
Schedule of Business Acquisitions by Acquisition Contingent Consideration | A rollforward of the activity in the Company’s fair value of the contingent consideration payable is as follows (in thousands): Imputed December 31, Interest / June 30, 2023 Acquisitions Payments Adjustments 2024 Faneuil $ (1,496) $ — $ — $ 1,047 $ (449) Total $ (1,496) $ — $ — $ 1,047 $ (449) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [ABSTRACT] | |
Schedule of accumulated other comprehensive income (loss) | The following table presents changes in the accumulated balance for each component of Other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of Accumulated other comprehensive income (loss) (in thousands): Foreign Currency Derivative Translation Valuation, Net Other, Net Adjustment of Tax of Tax Totals Accumulated other comprehensive income (loss) at December 31, 2022 $ (123,734) $ 89 $ (2,656) $ (126,301) Other comprehensive income (loss) before reclassifications 28,281 8,100 56 36,437 Amounts reclassified from accumulated other comprehensive income (loss) 301 (1,024) 124 (599) Net current period other comprehensive income (loss) 28,582 7,076 180 35,838 Accumulated other comprehensive income (loss) at June 30, 2023 $ (95,152) $ 7,165 $ (2,476) $ (90,463) Accumulated other comprehensive income (loss) at December 31, 2023 $ (93,144) $ 6,315 $ (3,047) $ (89,876) Other comprehensive income (loss) before reclassifications (11,132) (5,315) 19 (16,428) Amounts reclassified from accumulated other comprehensive income (loss) — (1,470) 193 (1,277) Net current period other comprehensive income (loss) (11,132) (6,785) 212 (17,705) Accumulated other comprehensive income (loss) at June 30, 2024 $ (104,276) $ (470) $ (2,835) $ (107,581) |
Schedule of reclassifications from Accumulated other comprehensive income (loss) | 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): Statement of For the Three Months Ended June 30, Comprehensive Income 2024 2023 (Loss) Classification Derivative valuation Gain on foreign currency forward exchange contracts $ 364 $ 864 Revenue Tax effect (95) (225) Provision for income taxes $ 269 $ 639 Net income (loss) Other Actuarial loss on defined benefit plan $ (110) $ (69) Cost of services Gain on liquidation 19 — Other income (expense), net Tax effect 11 7 Provision for income taxes $ (80) $ (62) Net income (loss) Statement of For the Six Months Ended June 30, Comprehensive Income 2024 2023 (Loss) Classification Derivative valuation Gain on foreign currency forward exchange contracts $ 1,988 $ 1,383 Revenue Tax effect (518) (359) Provision for income taxes $ 1,470 $ 1,024 Net income (loss) Other Actuarial loss on defined benefit plan $ (231) $ (138) Cost of services Gain on liquidation 19 — Other income (expense), net Tax effect 19 14 Provision for income taxes $ (193) $ (124) Net income (loss) |
WEIGHTED AVERAGE SHARE COUNTS (
WEIGHTED AVERAGE SHARE COUNTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Weighted Average Share Counts | |
Schedule of Diluted Shares Calculation | 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, 2024 2023 2024 2023 Shares used in basic earnings per share calculation 47,564 47,264 47,498 47,249 Effect of dilutive securities: Restricted stock units 59 186 84 156 Performance-based restricted stock units — 3 3 12 Total effects of dilutive securities 59 189 87 168 Shares used in dilutive earnings per share calculation 47,623 47,453 47,585 47,417 |
EMPLOYEE COMPENSATION PLANS (Ta
EMPLOYEE COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
EMPLOYEE COMPENSATION PLANS [Abstract] | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | The following tables present the total equity-based compensation expense for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, 2024 2023 Equity-based compensation expense recognized in Cost of services $ 1,991 $ 2,536 Equity-based compensation expense recognized in Selling, general and administrative 3,113 3,113 Total equity-based compensation expense $ 5,104 $ 5,649 Six Months Ended June 30, 2024 2023 Equity-based compensation expense recognized in Cost of services $ 4,235 $ 4,398 Equity-based compensation expense recognized in Selling, general and administrative 6,681 5,404 Total equity-based compensation expense $ 10,916 $ 9,802 |
OVERVIEW AND BASIS OF PRESENT_3
OVERVIEW AND BASIS OF PRESENTATION (TABLES) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 79,780 | $ 172,747 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 99,670 | 173,905 | $ 165,381 | $ 167,064 |
Prepaid Expenses and Other Current Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 19,890 | $ 1,158 |
OVERVIEW AND BASIS OF PRESENT_4
OVERVIEW AND BASIS OF PRESENTATION (NARRATIVE) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 | Mar. 31, 2023 | Oct. 26, 2019 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Year Founded | 1982 | |||||
Number Of Clients | 740 | |||||
Number of Countries in which Entity Operates | 22 | |||||
Number of employees | 54,000 | |||||
Prior Period Reclassification Adjustment | $ 14,200,000 | $ 14,200,000 | ||||
Percepta LLC | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
ownership percentage | 55% | |||||
FCR | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
ownership percentage | 100% | 70% | 70% | |||
Serendebyte | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
ownership percentage | 100% | 70% |
ACQUISITIONS ASSETS ACQUIRED (T
ACQUISITIONS ASSETS ACQUIRED (TABLES) (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Jun. 30, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | |||
Operating lease assets | $ 106,185 | $ 121,574 | |
Goodwill | 573,625 | 808,988 | |
Operating lease liability - short-term | 35,650 | 38,271 | |
Accrued employee compensation and benefits | 132,824 | 146,184 | |
Operating lease liability - long-term | $ 83,855 | $ 96,809 | |
Faneuil | |||
Business Acquisition [Line Items] | |||
Accounts receivable. | $ 704 | ||
Prepaid Expenses | 8,420 | ||
Other assets | 2,572 | ||
Operating lease assets | 17,778 | ||
Fixed Assets Acquired | 5,622 | ||
Goodwill | 75,902 | ||
Total assets acquired | 172,308 | ||
Operating lease liability - short-term | 3,129 | ||
Accrued employee compensation and benefits | 202 | ||
Accrued expenses | 2,763 | ||
Operating lease liability - long-term | 14,092 | ||
Deferred revenue. | 811 | ||
Other | 8,891 | ||
Total liabilities assumed | 29,888 | ||
Total purchase price | 142,420 | ||
Faneuil | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 61,310 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES (NARRATIVE) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2024 USD ($) | Mar. 31, 2023 USD ($) | Apr. 01, 2022 USD ($) | Oct. 26, 2019 | May 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Feb. 28, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2024 USD ($) | Dec. 08, 2023 USD ($) | Apr. 04, 2023 | Feb. 07, 2020 | |
Business Acquisition [Line Items] | ||||||||||||||||||||
Other liabilities, noncurrent | $ 73,657,000 | $ 73,657,000 | $ 73,657,000 | $ 72,083,000 | ||||||||||||||||
Redeemable noncontrolling interest | 0 | $ 3,936,000 | 0 | $ 3,997,000 | $ 3,936,000 | $ 55,645,000 | 0 | $ 3,997,000 | 0 | $ 55,645,000 | $ 0 | |||||||||
Contingent Consideration, at fair value | 449,000 | 449,000 | 449,000 | 1,496,000 | ||||||||||||||||
Contingent Consideration Payable Imputed Interest Expense and Other Adjustments | 1,047,000 | |||||||||||||||||||
Increase (decrease) in contingent consideration payable | $ 2,900,000 | |||||||||||||||||||
Temporary noncontrolling interest adjustment due to buyout | 20,457,000 | |||||||||||||||||||
Payments of contingent consideration and hold back payments to acquisitions | 0 | 37,676,000 | ||||||||||||||||||
Sales Revenue Services Net | 534,085,000 | 600,394,000 | 1,110,723,000 | 1,233,680,000 | ||||||||||||||||
Net Income (Loss) | (299,539,000) | 1,211,000 | (301,844,000) | 19,858,000 | ||||||||||||||||
(Gain) Loss on dissolution of subsidiary | 0 | (301,000) | ||||||||||||||||||
Asset, Held-for-Sale, Not Part of Disposal Group, Other | 29,449,000 | 29,449,000 | 29,449,000 | $ 0 | ||||||||||||||||
Leasehold Improvements | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Asset, Held-for-Sale, Not Part of Disposal Group, Other | 16,700,000 | 16,700,000 | 16,700,000 | |||||||||||||||||
Building | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Asset, Held-for-Sale, Not Part of Disposal Group, Other | 6,700,000 | 6,700,000 | 6,700,000 | |||||||||||||||||
Land [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Asset, Held-for-Sale, Not Part of Disposal Group, Other | 5,900,000 | 5,900,000 | 5,900,000 | |||||||||||||||||
Other | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Asset, Held-for-Sale, Not Part of Disposal Group, Other | $ 100,000 | 100,000 | 100,000 | |||||||||||||||||
TTEC Digital | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Sales Revenue Services Net | $ 116,368,000 | 117,585,000 | 228,399,000 | 234,512,000 | ||||||||||||||||
Assets held for sale asset allocation percentage by reporting unit | 15% | |||||||||||||||||||
TTEC Engage | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Sales Revenue Services Net | $ 417,717,000 | 482,809,000 | $ 882,324,000 | 999,168,000 | ||||||||||||||||
Assets held for sale asset allocation percentage by reporting unit | 85% | |||||||||||||||||||
Faneuil | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments to Acquire Businesses | $ 142,400,000 | |||||||||||||||||||
Serendebyte | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
ownership percentage | 100% | 100% | 100% | 70% | ||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30% | |||||||||||||||||||
FCR | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
ownership percentage | 100% | 70% | 70% | 100% | 70% | 100% | ||||||||||||||
Serendebyte | Other accrued expenses | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total purchase price | $ 300,000 | |||||||||||||||||||
Serendebyte | Serendebyte | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
ownership percentage | 70% | |||||||||||||||||||
FCR | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Date of Acquisition | Oct. 26, 2019 | |||||||||||||||||||
Total purchase price | $ 22,400,000 | $ 22,400,000 | ||||||||||||||||||
Temporary noncontrolling interest adjustment due to buyout | $ 20,500,000 | |||||||||||||||||||
Payments of contingent consideration and hold back payments to acquisitions | $ 22,400,000 | $ 9,200,000 | ||||||||||||||||||
FCR | FCR | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Percentage of Voting Interests Acquired | 30% | |||||||||||||||||||
Faneuil | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Date of Acquisition | Apr. 01, 2022 | |||||||||||||||||||
Fair Value of Assets Acquired | ||||||||||||||||||||
Increase Decrease In Fair Value Assets Acquired | (140,000) | (52,000) | ||||||||||||||||||
Total purchase price | $ 142,420,000 | |||||||||||||||||||
Contingent Consideration, at fair value | $ 449,000 | $ 8,800,000 | $ 449,000 | $ 449,000 | $ 1,496,000 | |||||||||||||||
Number Of Contingent Payments | 2 | |||||||||||||||||||
Payments Made To Contingent Consideration Receivable During Period | $ 7,400,000 | |||||||||||||||||||
Contingent Consideration Payable Imputed Interest Expense and Other Adjustments | $ 1,047,000 | |||||||||||||||||||
Increase (decrease) in contingent consideration payable | 2,900,000 | 3,000,000 | ||||||||||||||||||
Faneuil | Minimum | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 7,400,000 | 7,400,000 | ||||||||||||||||||
Faneuil | Maximum | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 10,400,000 | 10,400,000 | ||||||||||||||||||
Faneuil | Risk Free Interest Rate | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 1.7 | |||||||||||||||||||
Faneuil | Expected forecast volatility rate [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 20 | |||||||||||||||||||
Faneuil | Discount Rate | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 19.3 | 19.3 | 19.3 | |||||||||||||||||
Faneuil | Measurement Input, EBITDA Multiple [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 19.3 | |||||||||||||||||||
Faneuil | Measurement Input, Revenue Multiple [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business combination contingent consideration measurement input | 7.6 | |||||||||||||||||||
Faneuil | Other Operating Income (Expense) [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Increase (decrease) in contingent consideration payable | $ 3,000,000 | |||||||||||||||||||
Faneuil | Other Current Assets [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Business Combination, Acquired Receivable, Fair Value | $ 10,400,000 | |||||||||||||||||||
Faneuil | Other Noncurrent Assets [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Fair Value of Assets Acquired | $ 270,000 | 78,000 | ||||||||||||||||||
Faneuil | Other Noncurrent Liabilities [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Contingent Consideration, at fair value | $ 400,000 | $ 400,000 | $ 400,000 | |||||||||||||||||
Faneuil | TTEC Engage | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Description of Acquired Entity | On April 1, 2022, the Company completed an asset acquisition through its subsidiary TTEC Government Solutions LLC, of certain public sector citizen experience contracts in the transportation infrastructure and healthcare exchange industries from Faneuil, Inc., a subsidiary of ALJ Regional Holdings, Inc. (“the Faneuil Transaction”). The acquired business is operated as part of the TTEC Engage segment and was fully consolidated into the financial statements of TTEC. The Faneuil Transaction was recorded as a business combination under ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values as of the acquisition date. | |||||||||||||||||||
Faneuil | Customer Relationships [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Useful life | 10 years | |||||||||||||||||||
Faneuil receivable [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Payments Made To Contingent Consideration Receivable During Period | (1,300,000) | |||||||||||||||||||
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | (1,900,000) | $ (2,500,000) | $ (200,000) | $ (4,400,000) | ||||||||||||||||
Business Combination, Contingent Consideration, Asset | $ 0 | $ 0 |
SEGMENT INFORMATION (SEGMENT FI
SEGMENT INFORMATION (SEGMENT FINANCIALS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Net Revenue | $ 534,085 | $ 600,394 | $ 1,110,723 | $ 1,233,680 | |
Depreciation and amortization | 25,071 | 24,946 | 50,216 | 50,773 | |
Income (Loss) from Operations | (224,413) | 31,298 | (201,702) | 75,709 | |
Capital expenditures | 14,209 | 19,285 | 27,682 | 32,954 | |
Total Assets | 1,792,621 | 1,792,621 | $ 2,185,598 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 534,085 | 600,394 | 1,110,723 | 1,233,680 | |
TTEC Digital | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 116,368 | 117,585 | 228,399 | 234,512 | |
Depreciation and amortization | 7,014 | 6,722 | 14,064 | 13,583 | |
Income (Loss) from Operations | 6,008 | 7,154 | 9,296 | 7,939 | |
Capital expenditures | 2,290 | 2,352 | 4,077 | 4,626 | |
Total Assets | 798,832 | 798,832 | 815,488 | ||
TTEC Digital | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 116,368 | 117,585 | 228,399 | 234,512 | |
TTEC Engage | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | 417,717 | 482,809 | 882,324 | 999,168 | |
Depreciation and amortization | 18,057 | 18,224 | 36,152 | 37,190 | |
Income (Loss) from Operations | (230,421) | 24,144 | (210,998) | 67,770 | |
Capital expenditures | 11,919 | 16,933 | 23,605 | 28,328 | |
Total Assets | 993,789 | 993,789 | $ 1,370,110 | ||
TTEC Engage | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenue | $ 417,717 | $ 482,809 | $ 882,324 | $ 999,168 |
SEGMENT INFORMATION (REVENUE GE
SEGMENT INFORMATION (REVENUE GEOGRAPHY) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Sales Revenue Services Net | $ 534,085 | $ 600,394 | $ 1,110,723 | $ 1,233,680 | |
Other long-term assets | 99,859 | 99,859 | $ 101,573 | ||
United States Canada [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Sales Revenue Services Net | 354,607 | 414,854 | 741,599 | 858,890 | |
Philippines Asia Pacific India [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Sales Revenue Services Net | 108,728 | 115,740 | 229,194 | 237,779 | |
Europe Middle East Africa [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Sales Revenue Services Net | 42,188 | 36,023 | 81,031 | 70,477 | |
Latin America [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Sales Revenue Services Net | $ 28,562 | $ 33,777 | $ 58,899 | $ 66,534 |
SEGMENT INFORMATION (NARRATIVE)
SEGMENT INFORMATION (NARRATIVE) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
TTEC Digital | |
Segment Reporting Information [Line Items] | |
Percentage of employees in offshore locations | 41 |
ACCOUNTS RECEIVABLE (SCHEDULE O
ACCOUNTS RECEIVABLE (SCHEDULE OF CHANGE IN ALLOWANCE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract] | ||||
Balance, beginning balance | $ 2,065 | $ 5,078 | $ 2,248 | $ 3,524 |
Provision for credit losses | 2,675 | (558) | 2,644 | 1,704 |
Uncollectible receivables written-off | (6) | (2,180) | (156) | (2,889) |
Effect of foreign currency | 23 | 7 | 21 | 8 |
Balance, ending balance | $ 4,757 | $ 2,347 | $ 4,757 | $ 2,347 |
ACCOUNTS RECEIVABLE (FACTORED T
ACCOUNTS RECEIVABLE (FACTORED TABLE) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
SIGNIFICANT CLIENTS AND OTHER CONCENTRATIONS [Abstract] | ||
Factored Accounts Receivable, net | $ 61,956 | $ 99,994 |
Cash from customers not yet remitted | $ 19,890 | $ 1,158 |
ACCOUNTS RECEIVABLE AND SIGNI_2
ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS(NARRATIVE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Entity Wide Revenue Major Customer Line Items | |||||
Revenue. | $ 534,085 | $ 600,394 | $ 1,110,723 | $ 1,233,680 | |
Revenue | Customer Concentration Risk | Minimum | |||||
Entity Wide Revenue Major Customer Line Items | |||||
Revenue. | $ 100,000 | ||||
Revenue | Customer Concentration Risk | Financial Services Client | |||||
Entity Wide Revenue Major Customer Line Items | |||||
Concentration Risk, Customer | one | ||||
Revenue | Customer Concentration Risk | Automotive Industry Client | |||||
Entity Wide Revenue Major Customer Line Items | |||||
Concentration Risk, Customer | one | ||||
Concentration risk percentage | 11% | 10.10% |
GOODWILL (GOODWILL ROLLFORWARD)
GOODWILL (GOODWILL ROLLFORWARD) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Goodwill [Line Items] | ||
Beginning balance, goodwill | $ 808,988 | |
Impairments | $ (37,500) | (233,532) |
Effect of Foreign Currency | (1,831) | |
Ending balance, goodwill | 573,625 | 573,625 |
TTEC Digital | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 500,576 | |
Effect of Foreign Currency | (740) | |
Ending balance, goodwill | 499,836 | 499,836 |
TTEC Engage | ||
Goodwill [Line Items] | ||
Beginning balance, goodwill | 308,412 | |
Impairments | (233,532) | |
Effect of Foreign Currency | (1,091) | |
Ending balance, goodwill | $ 73,789 | $ 73,789 |
GOODWILL (NARRATIVE) (Details)
GOODWILL (NARRATIVE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 01, 2023 | |
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill Impairment Loss | $ 37,500 | $ 233,532 | ||
Goodwill | 573,625 | 573,625 | $ 808,988 | |
Non-cash [Member] | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill Impairment Loss | 233,500 | |||
Incremental Deferred Tax Asset [Member] | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Deferred tax assets, net | $ 37,500 | $ 37,500 | ||
Capital Expenditure [Member] | Minimum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 13.80% | 13.80% | ||
Capital Expenditure [Member] | Maximum | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 16.50% | 16.50% | ||
TTEC Digital | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill | $ 499,836 | $ 499,836 | 500,576 | |
TTEC Engage | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill, Fair Value Disclosure | $ 1,092,100 | |||
Goodwill Impairment Loss | 233,532 | |||
Goodwill | 73,789 | 73,789 | $ 308,412 | $ 308,400 |
TTEC Engage | Non-cash pre-tax [Member] | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Goodwill Impairment Loss | 196,000 | |||
TTEC Engage | Incremental Deferred Tax Asset [Member] | ||||
ValuationAllowanceForImpairmentOfRecognizedServicingAssetsLineItems | ||||
Deferred tax assets, net | $ 37,500 | $ 37,500 |
DERIVATIVES (OCI ROLLFORWARD) (
DERIVATIVES (OCI ROLLFORWARD) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
DERIVATIVES [ABSTRACT] | ||||
Aggregate unrealized net gain/(loss) at beginning of year | $ 6,080 | $ 6,640 | $ 6,315 | $ 89 |
Add: Net gain/(loss) from change in fair value of cash flow hedges | (6,281) | (115) | (5,315) | 6,052 |
Less: Net (gain)/loss reclassified to earnings from effective hedges | (269) | 639 | (1,470) | 1,023 |
Aggregate unrealized net gain/(loss) at end of period | $ (470) | $ 7,164 | $ (470) | $ 7,164 |
DERIVATIVES (NOTIONAL TABLE) (D
DERIVATIVES (NOTIONAL TABLE) (Details) ₱ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Jun. 30, 2024 CAD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 PHP (₱) | Jun. 30, 2024 MXN ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 PHP (₱) | Dec. 31, 2023 MXN ($) |
CAD | ||||||||
Derivative [Line Items] | ||||||||
Contract Maturity Date | Sep. 30, 2024 | |||||||
PHP | ||||||||
Derivative [Line Items] | ||||||||
Contract Maturity Date | Mar. 31, 2027 | |||||||
MXN | ||||||||
Derivative [Line Items] | ||||||||
Contract Maturity Date | Dec. 31, 2026 | |||||||
Foreign Exchange Forward | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 169,817 | $ 211,667 | ||||||
Foreign Exchange Forward | CAD | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 750 | $ 557 | $ 2,250 | 1,670 | ||||
% Maturing in the Next 12 Months | 100% | 100% | 100% | 100% | ||||
Foreign Exchange Forward | PHP | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 138,843 | ₱ 7,924,000 | 165,842 | ₱ 9,324,000 | ||||
% Maturing in the Next 12 Months | 61.80% | 61.80% | 61.80% | 61.80% | ||||
Foreign Exchange Forward | MXN | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 30,417 | $ 638,000 | $ 44,155 | $ 938,000 | ||||
% Maturing in the Next 12 Months | 64.90% | 64.90% | 64.90% | 64.90% |
DERIVATIVES (BALANCE SHEET CLAS
DERIVATIVES (BALANCE SHEET CLASSIFICATION) (Details) - Foreign Exchange [Member] - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $ (633) | $ 8,531 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 3,329 | 7,527 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 429 | 2,415 |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (2,922) | (1,214) |
Designated as Hedging Instruments [Member] | Cash Flow [Member] | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | (1,469) | (197) |
Not Designated as Hedging Instruments [Member] | Fair Value [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 63 | 207 |
Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Prepaids And Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | 104 | 327 |
Not Designated as Hedging Instruments [Member] | Fair Value [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivative asset (liability) | $ (41) | $ (120) |
DERIVATIVES (INCOME STATEMENT C
DERIVATIVES (INCOME STATEMENT CLASSIFICATION) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Sales Revenue Services Net | $ 534,085 | $ 600,394 | $ 1,110,723 | $ 1,233,680 |
Other nonoperating income expense | 1,788 | (3,574) | 1,994 | (2,919) |
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: | 269 | 639 | 1,471 | 1,023 |
Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Cash Flow [Member] | Reclassification from accumulated other comprehensive income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Sales Revenue Services Net | 364 | 864 | 1,988 | 1,383 |
Not Designated as Hedging Instruments [Member] | Foreign Exchange [Member] | Fair Value [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other nonoperating income expense | $ (756) | $ (14) | $ (530) | $ 1,386 |
DERIVATIVES (NARRATIVE) (Detail
DERIVATIVES (NARRATIVE) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 41.7 | $ 73.3 |
FAIR VALUE (DERIVATIVES TABLE)
FAIR VALUE (DERIVATIVES TABLE) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
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 |
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 | (633) | 8,531 |
Fair value hedges | 63 | 207 |
Total net derivative asset (liability) | (570) | 8,738 |
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 |
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 | (633) | 8,531 |
Fair value hedges | 63 | 207 |
Total net derivative asset (liability) | $ (570) | $ 8,738 |
FAIR VALUE (FAIR VALUE ASSETS A
FAIR VALUE (FAIR VALUE ASSETS AND LIABILITIES) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Liabilities [Abstract] | ||||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, Other liabilities, noncurrent | Other current liabilities, Other liabilities, noncurrent | ||||
Contingent consideration payable | $ (449) | $ (1,496) | ||||
Redeemable noncontrolling interest | 0 | $ 0 | 0 | $ (3,997) | $ (3,936) | $ (55,645) |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||||
Assets [Abstract] | ||||||
Derivative assets, net | 0 | |||||
Deferred Compensation Plan Assets | 35,274 | 31,082 | ||||
Total assets | 35,274 | 31,082 | ||||
Liabilities [Abstract] | ||||||
Contingent consideration payable | 0 | |||||
Total liabilities | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||||
Assets [Abstract] | ||||||
Derivative assets, net | 0 | 8,738 | ||||
Deferred Compensation Plan Assets | 0 | |||||
Total assets | 0 | 8,738 | ||||
Liabilities [Abstract] | ||||||
Contingent consideration payable | 0 | |||||
Total liabilities | (570) | |||||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||
Assets [Abstract] | ||||||
Derivative assets, net | 0 | |||||
Deferred Compensation Plan Assets | 0 | |||||
Total assets | 0 | |||||
Liabilities [Abstract] | ||||||
Contingent consideration payable | (449) | (1,496) | ||||
Total liabilities | $ (449) | $ (1,496) |
FAIR VALUE (CONTINGENT CONSIDER
FAIR VALUE (CONTINGENT CONSIDERATION TABLE) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2024 | |
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Beginning balance, contingent consideration payable | $ (1,496,000) | |||||
Acquisitions | 0 | |||||
Payments | 0 | |||||
Contingent Consideration Payable Imputed Interest Expense and Other Adjustments | 1,047,000 | |||||
Ending balance, contingent consideration payable | (449,000) | |||||
Faneuil | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Beginning balance, contingent consideration payable | (1,496,000) | |||||
Acquisitions | 0 | |||||
Payments | 0 | |||||
Contingent Consideration Payable Imputed Interest Expense and Other Adjustments | 1,047,000 | |||||
Ending balance, contingent consideration payable | $ (449,000) | |||||
Payments Made To Contingent Consideration Receivable During Period | $ 7,400,000 | |||||
Faneuil receivable [Member] | ||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||
Payments Made To Contingent Consideration Receivable During Period | $ (1,300,000) | |||||
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | (1,900,000) | $ (2,500,000) | $ (200,000) | $ (4,400,000) | ||
Ending balance, contingent consideration asset | $ 0 |
FAIR VALUE (NARRATIVE) (Details
FAIR VALUE (NARRATIVE) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Apr. 01, 2022 USD ($) | |
Business acquisitions, Contingent Consideration [Line Items] | ||||||||
Line of credit | $ 930,000 | $ 995,000 | ||||||
Average interest rate on annual borrowings | 7.40% | |||||||
Business Combination Contingent Consideration Liability | $ 449 | 1,496 | ||||||
Contingent Consideration Payable Imputed Interest Expense and Other Adjustments | 1,047 | |||||||
Increase (decrease) in contingent consideration payable | $ 2,900 | |||||||
Faneuil | ||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||
Business Combination Contingent Consideration Liability | 449 | $ 1,496 | $ 8,800 | |||||
Contingent Consideration Payable Imputed Interest Expense and Other Adjustments | $ 1,047 | |||||||
Increase (decrease) in contingent consideration payable | $ 2,900 | $ 3,000 | ||||||
Faneuil | Discount Rate | ||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||
Business combination contingent consideration measurement input | 19.3 | |||||||
Faneuil receivable [Member] | ||||||||
Business acquisitions, Contingent Consideration [Line Items] | ||||||||
Contingent Consideration Receivable Imputed Interest Benefit and Other Adjustments | $ (1,900) | $ (2,500) | $ (200) | $ (4,400) |
IMPAIRMENT OF ASSETS (NARRATIVE
IMPAIRMENT OF ASSETS (NARRATIVE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Impaired Long-Lived Assets Held and Used, Asset Description | Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. | |||
Impaired Long-Lived Assets Held and Used, Method for Determining Fair Value | The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. | |||
Impairment losses | $ 236,716 | $ 2,652 | $ 236,856 | $ 6,959 |
Leasehold Improvements Internally Developed Software And Right Of Use Lease Asset [Member] | ||||
Impairment losses | $ 3,200 | $ 3,300 |
INCOME TAXES (NARRATIVE) (Detai
INCOME TAXES (NARRATIVE) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2024 | |
Income Statement Narrative [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 23.50% | 21.40% | ||||||
Effective income tax rate | 23.50% | 21.40% | ||||||
Valuation allowances | $ 84.1 | $ 84.1 | ||||||
Net Change in Valuation Allowance | 81.1 | |||||||
Income Tax Holidays Description | The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Honduras. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted multiple agreements under local laws which result in an overall reduced tax rate. These incentives have varying benefit year over year and expire at various times beginning in 2031. | |||||||
Aggregate Effect on Income Tax Expense for Income Tax Holiday Jurisdictions | $ 0.6 | $ 0.4 | $ 1.3 | $ 1.1 | ||||
Diluted Net Income Per Share Effect For Income Tax Holiday Jurisdictions | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.02 | ||||
Incremental Deferred Tax Asset [Member] | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Deferred Tax Assets, Net | $ 37.5 | $ 37.5 | ||||||
Future period unrecoverable assets [Member] | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Net Change in Valuation Allowance | $ 3 | $ 4.4 | $ 3.1 | $ 1.3 | ||||
Future period recoverable assets [Member] | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Net Change in Valuation Allowance | $ 1.7 | |||||||
Organization for Economic Co-operation Development OECD [Member] | Minimum | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 15% | |||||||
Effective income tax rate | 15% | |||||||
United States [Member] | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Income Tax Examination, Description | The Company’s U.S. income tax returns filed for the tax years ending December 31, 2017 to present, remain open tax years | |||||||
Income Tax Examination Years Under Audit | 2017 and 2018 | |||||||
ILLINOIS | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Income Tax Examination Years Under Audit | 2020 | |||||||
OREGON | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Income Tax Examination Years Under Audit | 2020 through 2022 | |||||||
Canada [Member] | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Income Tax Examination Years Under Audit | 2021 | |||||||
Philippines [Member] | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Income Tax Examination Years Under Audit | 2021 to 2023 | |||||||
India [Member] | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Income Tax Examination Years Under Audit | 2017 through 2022 | |||||||
WISCONSIN | ||||||||
Income Statement Narrative [Line Items] | ||||||||
Income Tax Examination Years Under Audit | 2019 through 2021 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (NARRATIVE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Sep. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Line of Credit Facility, Current Borrowing Capacity | $ 1,200,000 | $ 1,200,000 | |||
Letters of Credit Outstanding, Amount | 200 | $ 200 | |||
Credit facility interest rate | 7.40% | ||||
Line of Credit Facility, Collateral | Letter of credit fees are one eighth of 1% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for SOFR loans. | ||||
Line of credit | 930,000 | $ 930,000 | $ 995,000 | ||
Average daily utilization under credit facility | 1,045,300 | $ 1,057,700 | |||
Remaining borrowing capacity under credit facility | 100,000 | 100,000 | |||
Letters Of Credit Issued Outside Line Of Credit Facility | $ 300 | $ 300 | |||
Seventh Amendment [Member] | |||||
Initiation date of current line of credit agreement | Apr. 03, 2023 | ||||
Description of line of credit agreement | On April 3, 2023, the Company entered into a Seventh Amendment to the Credit Agreement which replaces the use of LIBOR with SOFR as of the date of the amendment, thus will affect the interest rates paid for a portion of the Credit Facility starting in the second quarter of 2023. | ||||
Eighth Amendment [Member] | |||||
Initiation date of current line of credit agreement | Feb. 26, 2024 | ||||
Line of Credit Facility, Expiration Date | Nov. 23, 2026 | ||||
Line of Credit Facility, Commitment Fee Description | the quarter ending March 31, 2024 through the quarter ending March 31, 2025, from the current 3.5 to 1 to between 4.0 to 1 and 4.5 to 1, as may be applicable in different quarters; and reduced the total lenders’ commitment from $1.5 billion to $1.3 billion. | ||||
Ninth Amendment [Member] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,200,000 | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Credit facility interest rate | 1% | ||||
Minimum | |||||
Credit facility interest rate | 0.375% | ||||
Minimum | Maximum leverage ratio [Member] | Ninth Amendment [Member] | |||||
Line of Credit Facility, Interest Rate Description | 5.15 | ||||
Minimum | Minimum interest coverage ratio [Member] | Ninth Amendment [Member] | |||||
Line of Credit Facility, Interest Rate Description | 2.00 | ||||
Minimum | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |||||
Credit facility interest rate | 0.50% | ||||
Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Credit facility interest rate | 1.375% | ||||
Maximum | |||||
Proceeds from factored receivables | $ 100,000 | $ 100,000 | |||
Receivables Held-for-sale, Amount | 100,000 | 100,000 | |||
Maximum | Eighth Amendment [Member] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,300,000 | $ 1,300,000 | |||
Maximum | Maximum leverage ratio [Member] | Ninth Amendment [Member] | |||||
Line of Credit Facility, Interest Rate Description | 1.00 | ||||
Maximum | Minimum interest coverage ratio [Member] | Ninth Amendment [Member] | |||||
Line of Credit Facility, Interest Rate Description | 1.00 | ||||
Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||
Credit facility interest rate | 3.50% | ||||
Maximum | Company's net leverage ratio [Member] | |||||
Credit facility interest rate | 2.50% |
DEFERRED REVENUE AND REMAININ_2
DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS (NARRATIVE) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Contract with Customer, Liability, Revenue Recognized | $ 140.2 | $ 167.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||
Revenue, Remaining Performance Obligation, Amount | $ 425.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 5 years |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (ROLLFORWARD TABLE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, value | $ 612,409 | $ 610,838 | $ 615,542 | $ 578,105 |
Ending balance, value | 304,176 | 637,542 | 304,176 | 637,542 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, value | (93,733) | (110,389) | (89,876) | (126,301) |
Other comprehensive income (loss) before reclassifications | (16,428) | 36,437 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,277) | (599) | ||
Net current period other comprehensive income (loss) | (17,705) | 35,838 | ||
Ending balance, value | (107,581) | (90,463) | (107,581) | (90,463) |
Foreign Currency Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, value | (93,144) | (123,734) | ||
Other comprehensive income (loss) before reclassifications | (11,132) | 28,281 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 301 | ||
Net current period other comprehensive income (loss) | (11,132) | 28,582 | ||
Ending balance, value | (104,276) | (95,152) | (104,276) | (95,152) |
Derivative Valuation, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, value | 6,315 | 89 | ||
Other comprehensive income (loss) before reclassifications | (5,315) | 8,100 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,470) | (1,024) | ||
Net current period other comprehensive income (loss) | (6,785) | 7,076 | ||
Ending balance, value. | 7,165 | 7,165 | ||
Ending balance, value | (470) | (470) | ||
Other, Net of Tax. | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, value | (3,047) | (2,656) | ||
Other comprehensive income (loss) before reclassifications | 19 | 56 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 193 | 124 | ||
Net current period other comprehensive income (loss) | 212 | 180 | ||
Ending balance, value | $ (2,835) | $ (2,476) | $ (2,835) | $ (2,476) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (INCOME STATEMENT CLASSIFICATION TABLE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Presentation of Income Statement Reclassifications [Line Items] | ||||
Sales Revenue Services Net | $ 534,085 | $ 600,394 | $ 1,110,723 | $ 1,233,680 |
Benefit from (provision for) income taxes | (54,126) | (6,102) | (56,455) | (14,024) |
Net income | (296,768) | 3,757 | (296,268) | 24,674 |
Accumulated Other Comprehensive Income (Loss) | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Net Income (Loss) - Other | 1,277 | 599 | ||
Foreign Currency Translation Adjustment | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Net Income (Loss) - Other | 0 | (301) | ||
Derivative Valuation, Net of Tax | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Net Income (Loss) - Other | 1,470 | 1,024 | ||
Reclassification from accumulated other comprehensive income | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Cost of services | (110) | (69) | (231) | (138) |
Net Income (Loss) - Other | (80) | (62) | (193) | (124) |
Reclassification from accumulated other comprehensive income | Accumulated Other Comprehensive Income (Loss) | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Net income | 1,470 | 1,024 | ||
Reclassification from accumulated other comprehensive income | Tax effect | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Benefit from (provision for) income taxes | (95) | (225) | (518) | (359) |
Provision for income taxes - Other | 11 | 7 | 19 | 14 |
Reclassification from accumulated other comprehensive income | Derivative Valuation, Net of Tax | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Net income | 269 | 639 | ||
Reclassification from accumulated other comprehensive income | OCI gain on liquidation [Member] | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Net Income (Loss) - Other | 19 | 0 | 19 | |
Foreign Exchange Forward | Reclassification from accumulated other comprehensive income | Foreign Currency Translation Adjustment | ||||
Presentation of Income Statement Reclassifications [Line Items] | ||||
Sales Revenue Services Net | $ 364 | $ 864 | $ 1,988 | $ 1,383 |
WEIGHTED AVERAGE SHARE COUNTS_2
WEIGHTED AVERAGE SHARE COUNTS (DILUTED SHARES TABLE) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Shares used in basic earnings per share calculation | 47,564 | 47,264 | 47,498 | 47,249 |
Effect of dilutive securities: | ||||
Restricted stock units | 59 | 186 | 84 | 156 |
Performance-based restricted stock units | 0 | 3 | 3 | 12 |
Total effects of dilutive securities | 59 | 189 | 87 | 168 |
Shares used in dilutive earnings per share calculation | 47,623 | 47,453 | 47,585 | 47,417 |
WEIGHTED AVERAGE SHARE COUNTS_3
WEIGHTED AVERAGE SHARE COUNTS (NARRATIVE) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restricted Stock Units (RSUs) [Member] | ||||
Anti-dilutive options to purchase common stock [Line Items] | ||||
Anti-dilutive securities | 2.3 | 1 | 1.7 | 0.9 |
EMPLOYEE COMPENSATION PLANS (EQ
EMPLOYEE COMPENSATION PLANS (EQUITY BASED COMPENSATION EXPENSE TABLE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 5,104 | $ 5,649 | $ 10,916 | $ 9,802 |
Cost of Services | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 1,991 | 2,536 | 4,235 | 4,398 |
Selling General And Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | 3,113 | 3,113 | 6,681 | 5,404 |
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Equity-based compensation expense | $ 5,100 | $ 5,500 | $ 10,900 | $ 9,300 |
EQUITY-BASED COMPENSATION PLANS
EQUITY-BASED COMPENSATION PLANS (NARRATIVE) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Equity-based compensation expense | $ 5,104,000 | $ 5,649,000 | $ 10,916,000 | $ 9,802,000 | ||
2021 PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Equity-based compensation expense | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | During 2021, the Company awarded Performance Restricted Stock Units (“PRSUs”) subject to service and performance vesting conditions. If defined minimum targets were met, the annual value of the PRSUs issued would be between $1.2 million and $4.9 million and vest in 2024. If the defined minimum targets were not met, then no PRSUs will be issued. The award amounts were based on the Company’s annual revenue and adjusted operating income for fiscal year 2023. The Company recognized compensation expense related to the 2021 PRSUs of $0.0 million and $0.0 million for the three and six months ended June 30, 2024, respectively. The Company recognized compensation expense related to the 2021 PRSUs of $0.2 million and $0.4 million for the three and six months ended June 30, 2023, respectively. | |||||
Minimum | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Award Vesting Period | 4 years | |||||
Minimum | 2021 PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Forecasted amount on noncash expense for share-based payment arrangement | $ 1,200,000 | |||||
Maximum | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Award Vesting Period | 5 years | |||||
Maximum | 2021 PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Forecasted amount on noncash expense for share-based payment arrangement | $ 4,900,000 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Equity-based compensation expense | 5,100,000 | $ 5,500,000 | $ 10,900,000 | 9,300,000 | ||
Unrecognized Compensation Expense | 41,800,000 | $ 41,800,000 | ||||
Non-option Equity Awards Granted | 547,254 | 3,106,297 | ||||
Performance Shares [Member] | 2021 PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Equity-based compensation expense | $ 200,000 | $ 0 | 400,000 | |||
Performance Shares [Member] | 2022 PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | For the ordinary course annual PRSUs, if defined minimum targets are met, the annual value of the PRSUs issued will be between $0.9 million and $3.5 million and vest in March 2025. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded will be based on the Company’s annual revenue and adjusted EBITDA for fiscal year 2024 | |||||
Performance Shares [Member] | 2022 VCP PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Description | For the one-time stretch financial goals PRSUs, if defined minimum targets at TTEC Engage and TTEC Digital business segments’ levels are met, the Company will issue between 0.0 million and 0.5 million PRSUs that will vest immediately in March 2026. If the defined minimum targets are not met, then no shares will be issued. The number of shares awarded will be based on the TTEC Engage and TTEC Digital business segments’ annual revenue and adjusted EBITDA for fiscal year 2025. | |||||
Performance Shares [Member] | Minimum | 2022 PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Forecasted amount on noncash expense for share-based payment arrangement | $ 900,000 | |||||
Performance Shares [Member] | Minimum | 2022 VCP PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Non-option Equity Awards Granted | 0 | |||||
Performance Shares [Member] | Minimum | PRSUs 2023 [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Forecasted amount on noncash expense for share-based payment arrangement | $ 0 | |||||
Performance Shares [Member] | Minimum | PRSUs 2024 [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Forecasted amount on noncash expense for share-based payment arrangement | $ 0 | |||||
Performance Shares [Member] | Maximum | 2022 PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Forecasted amount on noncash expense for share-based payment arrangement | $ 3,500,000 | |||||
Performance Shares [Member] | Maximum | 2022 VCP PRSUs [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Non-option Equity Awards Granted | 500,000 | |||||
Performance Shares [Member] | Maximum | PRSUs 2023 [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Forecasted amount on noncash expense for share-based payment arrangement | $ 8,900,000 | |||||
Performance Shares [Member] | Maximum | PRSUs 2024 [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Forecasted amount on noncash expense for share-based payment arrangement | 2,900,000 | |||||
Cost of Services | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Equity-based compensation expense | 1,991,000 | 2,536,000 | 4,235,000 | 4,398,000 | ||
Selling General And Administrative Expenses [Member] | ||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||||
Equity-based compensation expense | $ 3,113,000 | $ 3,113,000 | $ 6,681,000 | $ 5,404,000 |
DEFERRED COMPENSATION PLAN (NAR
DEFERRED COMPENSATION PLAN (NARRATIVE) (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Contribution Plan, Tax Status [Extensible Enumeration] | us-gaap:NonqualifiedPlanMember |
United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 75% |
RELATED PARTY TRANSACTIONS (NAR
RELATED PARTY TRANSACTIONS (NARRATIVE) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Related Party Transaction Line Items | |||||
Accounts payable, current, total | $ 87,115 | $ 87,115 | $ 96,577 | ||
Sales Revenue Services Net | 534,085 | $ 600,394 | 1,110,723 | $ 1,233,680 | |
Affiliated Entity | Avion and Airmax [Member] | |||||
Related Party Transaction Line Items | |||||
Purchases from Related Party | 200 | 700 | |||
Accounts payable, current, total | $ 36 | 36 | |||
Affiliated Entity | Willis Towers Watson [Member] | |||||
Related Party Transaction Line Items | |||||
Purchases from Related Party | $ 1,500 | $ 1,800 | |||
Chief Executive Officer | Avion and Airmax [Member] | |||||
Related Party Transaction Line Items | |||||
Equity Method Investment, Ownership Percentage | 100% | 100% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (299,539) | $ 1,211 | $ (301,844) | $ 19,858 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |