DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 03, 2014 | Jun. 30, 2013 |
Document and Entity Information Abstract | ' | ' | ' |
Entity Registrant Name | 'StarTek, Inc. | ' | ' |
Entity Central Index Key | '0001031029 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $57.50 |
Entity Common Stock, Shares Outstanding | ' | 15,376,611 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $231,257 | $198,092 |
Cost of services | 206,932 | 175,095 |
Gross profit | 24,325 | 22,997 |
Selling, general and administrative expenses | 28,828 | 29,645 |
Impairment losses and restructuring charges, net | 94 | 4,066 |
Operating loss | -4,597 | -10,714 |
Interest and other income (expense), net | -1,579 | 342 |
Loss before income taxes | -6,176 | -10,372 |
Income tax expense | 230 | 116 |
Net loss | -6,406 | -10,488 |
Other comprehensive income (loss), net of tax: | ' | ' |
Foreign currency translation adjustments | -898 | 413 |
Change in fair value of derivative instruments | -2,640 | 614 |
Comprehensive loss | ($9,944) | ($9,461) |
Net loss per common share - basic and diluted (in usd per share) | ($0.42) | ($0.69) |
Weighted average common shares outstanding - basic and diluted (in shares) | 15,339 | 15,241 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $10,989 | $9,183 |
Trade accounts receivable, net | 43,708 | 41,070 |
Deferred income tax assets | 157 | 288 |
Derivative asset | 0 | 733 |
Prepaid expenses | 2,939 | 2,045 |
Assets held for sale | 0 | 4,969 |
Current portion of note receivable | 645 | 660 |
Other current assets | 1,626 | 1,332 |
Total current assets | 60,064 | 60,280 |
Property, plant and equipment, net | 22,210 | 26,310 |
Long-term deferred income tax assets | 2,151 | 3,930 |
Long-term note receivable, net of current portion | 0 | 602 |
Intangible assets, net | 1,164 | 0 |
Goodwill | 1,637 | 0 |
Other long-term assets | 2,491 | 2,010 |
Total assets | 89,717 | 93,132 |
Current liabilities: | ' | ' |
Accounts payable | 8,477 | 7,174 |
Accrued liabilities: | ' | ' |
Accrued payroll | 9,196 | 7,035 |
Accrued compensated absences | 2,469 | 2,591 |
Other accrued liabilities | 1,901 | 2,150 |
Line of credit | 1,000 | 0 |
Derivative liability | 2,160 | 253 |
Deferred revenue | 486 | 638 |
Deferred income tax liabilities | 766 | 2,390 |
Other current liabilities | 2,043 | 1,648 |
Total current liabilities | 28,498 | 23,879 |
Deferred rent | 1,445 | 2,202 |
Other liabilities | 1,600 | 772 |
Total liabilities | 31,543 | 26,853 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, 32,000,000 non-convertible shares, $0.01 par value, authorized; 15,368,356 and 15,298,947 shares issued and outstanding at December 31, 2013 and 2012, respectively | 154 | 153 |
Additional paid-in capital | 74,273 | 72,435 |
Accumulated other comprehensive (loss) income | -1,009 | 2,529 |
Accumulated deficit | -15,244 | -8,838 |
Total stockholders' equity | 58,174 | 66,279 |
Total liabilities and stockholders' equity | $89,717 | $93,132 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in usd per share) | $0.01 | $0.01 |
Common stock, non-convertible shares authorized | 32,000,000 | 32,000,000 |
Common stock, shares issued | 15,368,356 | 15,298,947 |
Common stock, shares outstanding | 15,368,356 | 15,298,947 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | ' | ' |
Net loss | ($6,406) | ($10,488) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 12,527 | 12,957 |
Impairment losses | 531 | 3,086 |
Losses (gains) on disposal of assets | 1,074 | -45 |
Loss on sale leaseback transaction | 475 | ' |
Share-based compensation expense | 1,607 | 1,275 |
Amortization of deferred gain on sale leaseback transaction | -273 | -47 |
Deferred income taxes | 166 | 410 |
Other, net | 0 | 249 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable, net | -2,711 | -3,287 |
Prepaid expenses and other assets | -2,264 | 1,113 |
Accounts payable | 435 | -121 |
Income taxes, net | -348 | 334 |
Accrued and other liabilities | 1,429 | -2,525 |
Net cash provided by operating activities | 6,242 | 2,911 |
Investing Activities | ' | ' |
Proceeds from note receivable | 658 | 660 |
Proceeds from sale of assets | 3,394 | 0 |
Proceeds from sale leaseback transactions | 1,337 | 3,884 |
Purchases of property, plant and equipment | -8,843 | -7,305 |
Cash paid for acquisitions of businesses | -2,097 | 0 |
Net cash used in continuing investing activities | -5,551 | -2,761 |
Financing Activities | ' | ' |
Proceeds from stock option exercises | 141 | 0 |
Proceeds from line of credit | 41,390 | 28,641 |
Principal payments on line of credit | -40,390 | -28,641 |
Payment of payroll taxes relating to vesting of restricted stock | -6 | 0 |
Net proceeds from the issuance of common stock | 97 | 103 |
Principal payments on capital lease obligations | -19 | -96 |
Net cash provided by financing activities | 1,213 | 7 |
Effect of exchange rate changes on cash | -98 | -693 |
Net increase (decrease) in cash and cash equivalents | 1,806 | -536 |
Cash and cash equivalents at beginning of period | 9,183 | 9,719 |
Cash and cash equivalents at end of period | 10,989 | 9,183 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid for interest | 54 | 78 |
Cash paid for income taxes | 533 | 5 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ' | ' |
Assets acquired through capital lease | $1,413 | $0 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings (Accumulated Deficit) |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $74,362 | $152 | $71,058 | $1,502 | $1,650 |
Balance (in shares) at Dec. 31, 2011 | ' | 15,249,829 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Restricted shares granted | 0 | 0 | 0 | ' | ' |
Restricted shares granted (in shares) | ' | 38,126 | ' | ' | ' |
Restricted shares forfeited | 0 | 0 | 0 | ' | ' |
Restricted shares forfeited (in shares) | ' | -38,302 | ' | ' | ' |
Shares withheld for taxes on restricted stock vested | 0 | 0 | 0 | ' | ' |
Shares withheld for taxes on restricted stock vested (in shares) | ' | -1,023 | ' | ' | ' |
Issuance of common stock pursuant to Employee Stock Purchase Plan | 103 | 1 | 102 | ' | ' |
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | ' | 50,317 | ' | ' | ' |
Share-based compensation expense | 1,275 | ' | 1,275 | ' | ' |
Net loss | -10,488 | ' | ' | ' | -10,488 |
Change in accumulated other comprehensive income | 1,027 | ' | ' | 1,027 | ' |
Balance at Dec. 31, 2012 | 66,279 | 153 | 72,435 | 2,529 | -8,838 |
Balance (in shares) at Dec. 31, 2012 | 15,298,947 | 15,298,947 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Stock options exercised | 141 | 1 | 140 | ' | ' |
Stock options exercised (in shares) | 38,577 | 38,577 | ' | ' | ' |
Stock issued for services | 45 | 0 | 45 | ' | ' |
Stock issued for services (in shares) | ' | 8,318 | ' | ' | ' |
Restricted shares forfeited | -3 | 0 | -3 | ' | ' |
Restricted shares forfeited (in shares) | ' | -1,067 | ' | ' | ' |
Shares withheld for taxes on restricted stock vested | -6 | 0 | -6 | ' | ' |
Shares withheld for taxes on restricted stock vested (in shares) | ' | -823 | ' | ' | ' |
Issuance of common stock pursuant to Employee Stock Purchase Plan | 97 | 0 | 97 | ' | ' |
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | ' | 24,404 | ' | ' | ' |
Share-based compensation expense | 1,565 | ' | 1,565 | ' | ' |
Net loss | -6,406 | ' | ' | ' | -6,406 |
Change in accumulated other comprehensive income | -3,538 | ' | ' | -3,538 | ' |
Balance at Dec. 31, 2013 | $58,174 | $154 | $74,273 | ($1,009) | ($15,244) |
Balance (in shares) at Dec. 31, 2013 | 15,368,356 | 15,368,356 | ' | ' | ' |
BASIS_OF_PRESENTATION_AND_SUMM
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
StarTek, Inc. ("STARTEK") is a comprehensive contact center and business process outsourcing service company. For over 25 years, we have partnered with our clients to effectively handle their customers throughout the customer life cycle. We have provided customer experience management solutions that solve strategic business challenges so that businesses can effectively manage customer relationships across all contact points. Headquartered in Greenwood Village, Colorado, we operate facilities in the U.S., Canada, the Philippines, Costa Rica and Honduras. We operate within three business segments: Domestic, Asia Pacific and Latin America. Refer to Note 16, "Segment Information," for further information. | ||
We are considered a "smaller reporting company" under the applicable disclosure rules of the Securities and Exchange Commission and accordingly, have elected to provide our audited statements of operations and comprehensive loss, cash flows and changes in stockholders' equity for two, rather than three, years. | ||
Consolidation | ||
Our consolidated financial statements include the accounts of all wholly-owned subsidiaries after elimination of significant intercompany balances and transactions. | ||
Use of Estimates | ||
The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary. | ||
Concentration of Credit Risk | ||
We are 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. We regularly monitor credit risk to mitigate the possibility of current and future exposures resulting in a loss. We evaluate the creditworthiness of clients prior to entering into an agreement to provide services and on an on-going basis as part of the processes of revenue recognition and accounts receivable. We do not believe we are exposed to more than a nominal amount of credit risk in our derivative hedging activities, as the counter parties are established, well-capitalized financial institutions. | ||
Foreign Currency Translation | ||
The assets and liabilities of our foreign operations that are recorded in foreign currencies are translated into U.S. dollars at exchange rates prevailing at the balance sheet date. Revenues and expenses are translated at the weighted-average exchange rate during the reporting period. Resulting translation adjustments, net of applicable deferred income taxes, are recorded in accumulated other comprehensive income. Foreign currency transaction gains and losses are included in the accompanying consolidated statements of operations and comprehensive loss. Such gains and losses were not material for any period presented. | ||
Revenue Recognition | ||
Business Process Outsourcing Services —We invoice our clients monthly in arrears and recognize revenues for such services when completed. Substantially all of our contractual arrangements are based either on a production rate, meaning that we recognize revenue based on the billable hours or minutes of each call center agent, or on a rate per transaction basis. These rates could be based on the number of paid hours the agent works, the number of minutes the agent is available to answer calls, or the number of minutes the agent is actually handling calls for the client, depending on the client contract. Production rates vary by client contract and can fluctuate based on our performance against certain pre-determined criteria related to quality and performance. Additionally, some clients are contractually entitled to penalties when we are out of compliance with certain quality and/or performance obligations defined in the client contract. Such penalties are recorded as a reduction to revenue as incurred based on a measurement of the appropriate penalty under the terms of the client contract. Likewise, some client contracts stipulate that we are entitled to bonuses should we meet or exceed these predetermined quality and/or performance obligations. These bonuses are recognized as incremental revenue in the period in which they are earned. | ||
As a general rule, our contracts do not include multiple elements. We provide initial training to customer service representatives upon commencement of new contracts and recognize revenues for such training as the services are provided based upon the production rate (i.e., billable hours and rates related to the training services as stipulated in our contractual arrangements). Accordingly, the corresponding training costs, consisting primarily of labor and related expenses, are recognized as incurred. | ||
Allowance for Doubtful Accounts | ||
An allowance for doubtful accounts is provided for known and estimated potential losses arising from sales to customers based on a periodic review of these accounts. There was no allowance for doubtful accounts as of December 31, 2013 or 2012. | ||
Fair Value of Financial Instruments | ||
The carrying value of our cash and cash equivalents, accounts receivable, notes receivable, accounts payable and line of credit approximate fair value because of their short-term nature. | ||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. | ||
Accounting guidance for the measurement of fair value establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The levels of the fair value hierarchy are described below: | ||
Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. | ||
Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | ||
Level 3 Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. | ||
Refer to Note 8, “Fair Value Measurements,” for additional information on how we determine fair value for our assets and liabilities. | ||
Cash and Cash Equivalents | ||
We consider cash equivalents to be short-term, highly liquid investments readily convertible to known amounts of cash and so near their maturity at purchase that they present insignificant risk of changes in value because of changes in interest rates. | ||
Restricted cash of $456 included in other current assets at December 31, 2013 represents escrowed funds related to the sales leaseback of our Greeley North property. | ||
Derivative Instruments and Hedging Activities | ||
Our derivative instruments consist of foreign currency forward contracts and are recorded as either an asset or liability measured at its fair value, with changes in the fair value of qualifying hedges recorded in other comprehensive income. Changes in a derivative’s fair value are recognized currently in the statements of operations unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative’s gains and losses to offset the related results of the hedged item and requires that we must formally document, designate and assess the effectiveness of transactions that receive hedge accounting treatment. | ||
We generally are able to apply cash flow hedge accounting which associates the results of the hedges with forecasted future expenses. The current mark-to-market gain or loss is recorded in accumulated other comprehensive income and will be re-classified to operations as the forecasted expenses are incurred, typically within one year. During 2013 and 2012, our cash flow hedges were highly effective and hedge ineffectiveness was not material. While we expect that our derivative instruments that have been designated as hedges will continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective or if we do not believe that forecasted transactions will occur, the changes in the fair value of the derivatives used as hedges will be reflected in earnings. | ||
Property, Plant and Equipment | ||
Property, plant, and equipment are stated at depreciated cost. Additions and improvement activities are capitalized. Maintenance and repairs are expensed as incurred. Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: | ||
Estimated Useful Life | ||
Buildings and building improvements | 15-30 years | |
Telephone and computer equipment | 3-5 years | |
Software | 3 years | |
Furniture, fixtures, and miscellaneous equipment | 5-7 years | |
We depreciate leasehold improvements associated with operating leases over the shorter of the expected useful life or remaining life of the lease. Depreciation for assets obtained under a capital lease is included in depreciation expense. | ||
Impairment of Long-Lived Assets | ||
We periodically, on at least an annual basis, evaluate potential impairments of our long-lived assets. In our annual evaluation or when we determine that the carrying value of a long-lived asset may not be recoverable, based upon the existence of one or more indicators of impairment, we evaluate the projected undiscounted cash flows related to the assets. If these cash flows are less than the carrying values of the assets, we measure the impairment based on the excess of the carrying value of the long-lived asset over the long-lived asset’s fair value. Our projections contain assumptions pertaining to anticipated levels of utilization and revenue that may or may not be under contract but are based on our experience and/or projections received from our customers. | ||
Goodwill | ||
Goodwill is recorded at fair value and not amortized, but is reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, that the fair value of the reporting unit may be more likely than not less than carrying amount, or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test. | ||
The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the quantitative impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied fair value of goodwill exceeds the carrying amount, then goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was determined as the exit price a market participant would pay for the same business). We have elected to perform the annual impairment assessment for goodwill in the fourth quarter. | ||
We completed the acquisitions of two companies during 2013 for which one has finalized purchase price accounting. No events or changes in circumstances have occurred since the closing of these acquisitions to indicate any impairment at December 31, 2013 to the carrying amount of the newly acquired goodwill; therefore, based on our qualitative assessment, it is not more likely than not an impairment has occurred. | ||
Intangible Assets | ||
We amortize all acquisition-related intangible assets that are subject to amortization based using the straight-line method over the estimated useful life based on economic benefit as follows: | ||
Estimated Useful Life | ||
Developed technology | 8 years | |
Customer base and customer relationships | 3 years | |
Trade name | 6 years | |
Noncompete agreement | 2 years | |
We perform a review of intangible assets to determine if facts and circumstances indicate that the useful life is shorter than we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. | ||
For further discussion of identified intangible assets, refer to Note 3, "Goodwill and Intangible Assets." | ||
Assets Held for Sale | ||
We classify an asset as held for sale when the facts and circumstances meet the criteria for such classification, including the following (a) we have committed to a plan to sell the asset, (b) the asset is available for immediate sale, (c) we have initiated actions to complete the sale, (d) the sale is expected to be completed within one year, (e) the asset is being actively marketed at a price that is reasonable relative to its fair value and (f) the plan to sell is unlikely to be subject to significant changes or termination. Assets held for sale are reported at the lower of cost or fair value less costs to sell. | ||
Restructuring Charges | ||
On an ongoing basis, management assesses the profitability and utilization of our facilities and in some cases management has chosen to close facilities. Severance payments that occur from reductions in workforce are in accordance with our postemployment policy and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, instead of upon commitment to an exit plan. A significant assumption used in determining the amount of the estimated liability for closing a facility is the estimated liability for future lease payments on vacant facilities. We determine our estimate of sublease payments based on our ability to successfully negotiate early termination agreements with landlords, a third-party broker or management’s assessment of our ability to sublease the facility based upon the market conditions in which the facility is located. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain. | ||
Leases | ||
Rent holidays, landlord/tenant incentives and escalations are included in some instances in the base price of our rent payments over the term of our operating leases. We recognize rent holidays and rent escalations on a straight-line basis over the lease term. The landlord/tenant incentives are recorded as deferred rent and amortized on a straight line basis over the lease term. | ||
Assets held under capital leases are included in property, plant and equipment, net in our consolidated balance sheets and depreciated over the term of the lease. Rent payments under the leases are recognized as a reduction of the capital lease obligation and interest expense. | ||
Deferred Gains on Sale and Leaseback Transactions | ||
We amortize deferred gains on the sale and leaseback of properties under operating leases over the life of the lease. The amortization of these gains is recorded as a reduction to rent expense. The deferred gain is recorded in our consolidated balance sheet in current and other current liabilities. | ||
Income Taxes | ||
Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. We are subject to foreign income taxes on our foreign operations. We are required to estimate our income taxes in each jurisdiction in which we operate. This process involves estimating our actual current tax exposure, together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. The tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted. We record a valuation allowance when it is more likely than not that we will not realize the net deferred tax assets in a certain jurisdiction. | ||
We record tax benefits when they are more likely than not to be realized. Our policy is to reflect penalties and interest as part of income tax expense as they become applicable. | ||
Stock-Based Compensation | ||
We recognize expense related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expense. We use the Black-Scholes method for valuing stock-based awards. See Note 11, “Share-Based Compensation and Employee Benefit Plans,” for further information regarding the assumptions used to calculate share-based payment expense. | ||
Recently Adopted Accounting Standards | ||
In July 2012, the FASB issued Accounting Standard Update 2012-02, Intangibles-Goodwill and Other: Testing Indefinite-Lived Intangible Assets for Impairment ("ASU 2012-02"). The intent of ASU 2012-02 is to simplify how registrants test indefinite-lived intangible asset for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. ASU 2012-02 permits registrants to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with U.S. GAAP. An entity will have an option not to calculate annually the fair value of an indefinite-lived intangible asset if the entity determines that it is not more likely than not that the asset is impaired. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted. We adopted this new guidance during 2013 and the adoption of the new guidance did not impact our financial position, results of operations, comprehensive income or cash flows, other than related disclosures. | ||
Recently Issued Accounting Standards | ||
In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification (“ASC”) Topic 740, Income Taxes (“FASB ASC Topic 740”). This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on our financial statements. | ||
In March 2013, the FASB issued ASU 2013-05 Topic 830 - Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this ASU resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU 2013-05 is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on our financial statements. |
ACQUISITIONS_ACQUISITIONS
ACQUISITIONS ACQUISITIONS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
ACQUISITIONS | ' | ||||
ACQUISITIONS | |||||
Ideal Dialogue Company, LLC | |||||
On March 18, 2013, we acquired Ideal Dialogue Company, LLC (“IDC”) for approximately $1,500 in cash. IDC uses analysis and unique methodologies based on more than 50 years of research in the science of human communication to optimize agent-customer interactions. IDC provides solutions that improve hiring, training, leadership development, quality monitoring and executive insight to enable customer management organizations to consistently create engaging conversations with customers. | |||||
We paid minimal acquisition-related expenses as part of the IDC purchase, which are recorded in selling, general and administrative expenses. Financial results of IDC from the date of acquisition are included in the results of operations within our Domestic segment. | |||||
We finalized our purchase price allocation during the three months ended December 31, 2013. The following summarizes the final purchase price allocation of the fair values of the assets acquired as of the acquisition date: | |||||
Acquisition Date | |||||
Fair Value | |||||
Property, plant and equipment | $ | 13 | |||
Developed technology | 390 | ||||
Customer base | 130 | ||||
Trade name | 70 | ||||
Noncompete agreement | 10 | ||||
Goodwill | 887 | ||||
Total purchase price | $ | 1,500 | |||
The goodwill recognized was attributable primarily to the assembled and trained workforce that developed the technology, expected synergies and other factors. | |||||
RN's On Call | |||||
On July 24, 2013, we acquired RN's On Call, a business process outsourcing provider in the health care industry, for approximately $1,500. The company provides health care related services to patients on behalf of the professional medical community. | |||||
As of December 31, 2013, we paid $597 of the purchase price with the remaining balance to be paid by January 2015, which is included in other accrued liabilities and other liabilities in the consolidated balance sheet. Minimal acquisition-related expenses were paid, which are recorded in selling, general and administrative expenses. Financial results from the date of acquisition are included in the results of operations within our Domestic segment. | |||||
The following summarizes the preliminary estimated fair values of the identifiable assets acquired as of the acquisition date. There were no other assets or liabilities acquired. The estimates of fair value of identifiable assets acquired are preliminary, pending completion of a valuation, thus are subject to revisions that may result in adjustments to the values presented below: | |||||
Preliminary Estimate of Acquisition Date Fair Value | |||||
Customer relationships | $ | 750 | |||
Goodwill | 750 | ||||
Total purchase price | $ | 1,500 | |||
The customer relationships have a preliminary estimated useful life of three years. The goodwill recognized was attributable primarily to the acquired workforce and our ability to expand into the health care industry. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS (Notes) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||
Goodwill | |||||||||||||||
The goodwill of $1,637 recognized from our acquisitions during 2013 was assigned to our Domestic segment. | |||||||||||||||
Intangible Assets | |||||||||||||||
The following table presents our intangible assets as of December 31, 2013: | |||||||||||||||
Gross Intangibles | Accumulated Amortization | Net Intangibles | Weighted Average Amortization Period (years) | ||||||||||||
Developed technology | $ | 390 | $ | 37 | $ | 353 | 4.14 | ||||||||
Customer base and customer relationships | 880 | 137 | 744 | 1.67 | |||||||||||
Trade name | 70 | 9 | 61 | 3.14 | |||||||||||
Noncompete agreement | 10 | 4 | 6 | 1.2 | |||||||||||
$ | 1,350 | $ | 186 | $ | 1,164 | 3.52 | |||||||||
We estimated future amortization expense for the succeeding years relating to the intangible assets resulting from acquisitions as follows: | |||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||
2014 | $ | 359 | |||||||||||||
2015 | 355 | ||||||||||||||
2016 | 217 | ||||||||||||||
2017 | 60 | ||||||||||||||
2018 | 60 | ||||||||||||||
Thereafter | 113 | ||||||||||||||
IMPAIRMENT_LOSSES_AND_RESTRUCT
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||||||
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES | ' | ||||||||||||||||||||||||
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES | |||||||||||||||||||||||||
Impairment Losses | |||||||||||||||||||||||||
We recognized impairment losses of $531 in the fourth quarter of 2013 in our Latin America segment associated with the furniture, fixtures and leasehold improvements at our site in Costa Rica after an impairment analysis indicated estimated future cash flows were insufficient to support the carrying values. We continue to own and use the impaired assets at our site in Costa Rica. During the year ended December 31, 2012, we incurred $3,086 of impairment losses in our Domestic segment associated with two facilities where we received customer notification of a ramp-down in business. We were able to secure new business for one of the facilities and the other facility was closed in January 2013 when the lease expired. | |||||||||||||||||||||||||
Disposal of Long-Lived Assets | |||||||||||||||||||||||||
During 2013, we implemented a plan to outsource a significant portion of our IT platform. As a result, we transferred certain IT assets to the provider, resulting in a loss on disposal of $966, which is included in interest and other income (expense), net. The useful life of the remaining impacted assets has been shortened to the transition period, resulting in accelerated depreciation charges of $637 in cost of services. | |||||||||||||||||||||||||
Assets Held for Sale | |||||||||||||||||||||||||
During 2013, we reclassified our Laramie, Wyoming facility, previously held for sale to assets held and used, as the held for sale criteria were no longer met due to the duration of the held for sale classification. We also reclassified our Enid, Oklahoma facility, previously held for sale, to assets held and used, as the held for sale criteria were no longer met due to the reopening of this site. The assets were measured at the carrying value of the assets before being classified as held for sale, adjusted for any depreciation expense that would have been recognized had the assets been continuously held and used. As a result of this measurement, we recognized $151 and $271 of depreciation expense for the Laramie and Enid facilities, respectively, which is included in cost of services. | |||||||||||||||||||||||||
During the fourth quarter of 2013, we sold our Greeley, Colorado facility, previously held for sale. Refer to Note 9, "Property, Plant & Equipment," for additional information. | |||||||||||||||||||||||||
Restructuring Charges | |||||||||||||||||||||||||
A summary of the activity under the restructuring plans as of December 31, 2013, and changes during the years ended December 31, 2013 and 2012 are presented below: | |||||||||||||||||||||||||
Facility-Related Costs | |||||||||||||||||||||||||
Victoria | Laramie | Grand | Decatur | Regina | Total | ||||||||||||||||||||
Junction | |||||||||||||||||||||||||
Balance as of January 1, 2012 | $ | 483 | $ | 63 | $ | 252 | $ | — | $ | 852 | $ | 1,650 | |||||||||||||
Expense (reversal) | — | (20 | ) | (138 | ) | 464 | 671 | 977 | |||||||||||||||||
Payments, net of receipts for sublease | 54 | (43 | ) | (114 | ) | (378 | ) | (1,197 | ) | (1,678 | ) | ||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 8 | 8 | |||||||||||||||||||
Balance as of December 31, 2012 | $ | 537 | $ | — | $ | — | $ | 86 | $ | 334 | $ | 957 | |||||||||||||
Expense (reversal) | (443 | ) | — | — | (56 | ) | — | (499 | ) | ||||||||||||||||
Payments, net of receipts for sublease | (78 | ) | — | — | (30 | ) | (328 | ) | (436 | ) | |||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||
Balance as of December 31, 2013 | $ | 16 | $ | — | $ | — | $ | — | $ | — | $ | 16 | |||||||||||||
The reserves listed above are net of expected sublease rental income. We previously entered into a sublease agreement for our Victoria, Texas facility through the remainder of its respective lease term in 2014. We have recorded an accrual for certain property taxes we still owe in Victoria, which we expect to pay through 2014. During 2013, we reversed $443 of the restructuring reserve based on an updated analysis of pass-through expenses. During 2012, we reversed the balance of $138 associated with our Grand Junction facility as we re-opened the facility due to new business and a ramp-up of activities with existing customers. The restructuring plan for our Laramie, Wyoming facility was completed in 2012, at which time we reversed the remaining balance of $20. During 2012, we increased our reserve for Regina, Saskatchewan by $671 based on updated forecasts of expected sublease income and we established a reserve of $464 for our Decatur, Illinois facility, which was closed in January 2013. | |||||||||||||||||||||||||
The Regina, Saskatchewan and Decatur, Illinois restructuring plans were completed in the first quarter of 2013 and we do not expect to incur any additional restructuring liabilities in future periods for either of these locations. | |||||||||||||||||||||||||
We expect to pay $16 in our Domestic segment over the remaining term of the restructuring plans, including lease payments offset by sublease receipts, personal and real property taxes and other miscellaneous facility related costs. The cumulative amount paid as of December 31, 2013 related to the closures was $9,870 in our Domestic segment in facility-related costs and termination benefits. | |||||||||||||||||||||||||
Note Receivable | |||||||||||||||||||||||||
In connection with the sublease of our Victoria, Texas facility, the sublessee is making payments to us for certain furniture, fixtures, equipment and leasehold improvements in the facility. The payments will be made over the remainder of the lease term, or December 1, 2014, after which time the sublessee will own the assets. As of December 31, 2013, we have recorded the remaining balance due in 2014 on the note receivable of $645, net of unearned interest income of approximately $18. The note receivable bears interest at a rate of 4.4% per annum. |
NET_LOSS_PER_SHARE
NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ' |
NET LOSS PER SHARE | ' |
NET LOSS PER SHARE | |
Basic net loss per common share is computed on the basis of our weighted average number of common shares outstanding. Diluted earnings per share is computed on the basis of our weighted average number of common shares outstanding plus the effect of dilutive stock options and non-vested restricted stock using the treasury stock method. Securities totaling 2,302,417 and 1,803,199 for the years ended December 31, 2013 and 2012, respectively, have been excluded from loss per share because their effect would have been anti-dilutive. |
PRINCIPAL_CLIENTS
PRINCIPAL CLIENTS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||
PRINCIPAL CLIENTS | ' | ||||||||||
PRINCIPAL CLIENTS | |||||||||||
The following table represents revenue concentration of our principal clients: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Revenue | Percentage | Revenue | Percentage | ||||||||
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T, Inc. (1) | $ | 58,395 | 25.30% | $ | 63,904 | 32.30% | |||||
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom (2) | $ | 64,095 | 27.70% | $ | 55,916 | 28.20% | |||||
Comcast Cable Communications Management, LLC, subsidiary of Comcast Corporation (2) | $ | 45,887 | 19.80% | * | * | ||||||
* less than 10% | |||||||||||
(1) Revenue from this customer is generated through our Domestic and Asia Pacific segments. | |||||||||||
(2) Revenue from this customer is generated through our Domestic, Asia Pacific and Latin America segments. | |||||||||||
Our work for AT&T is covered by several contracts for a variety of different lines of AT&T business. These contracts expire between 2014 and 2015. Our initial master services agreement covering all AT&T work had been extended through January 31, 2013. On January 25, 2013, we entered into a new master services agreement with AT&T Services, Inc., which expires December 31, 2015 and may be extended upon mutual agreement, but may be terminated by AT&T with written notice. | |||||||||||
On July 28, 2011, we entered into a new master services agreement with T-Mobile effective July 1, 2011, which covers all services that we provide to T-Mobile. The new master services agreement with T-Mobile replaces the previous master services agreement dated October 1, 2007, has an initial term of five years and will automatically renew for additional one-year periods thereafter, but may be terminated by T-Mobile upon 90 days written notice. | |||||||||||
On January 4, 2014, we signed a new master services agreement with Comcast, effective June 22, 2013, which provides for the same services as the original master services agreement that was signed in 2011 and would have expired in 2014. The new master services agreement covers all services that we provide to Comcast, has an initial term of one year and will automatically renew for additional one-year periods unless either party gives notice of cancellation. Comcast may terminate the agreement upon 90 days written notice. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
DERIVATIVE INSTRUMENTS | ' | |||||||||||||||
DERIVATIVE INSTRUMENTS | ||||||||||||||||
We use derivatives to partially offset our business exposure to foreign currency exchange risk. We enter into foreign currency exchange contracts to hedge our anticipated operating commitments that are denominated in foreign currencies. The contracts cover periods commensurate with expected exposure, generally three to nine months, and are principally unsecured foreign exchange contracts. The market risk exposure is essentially limited to risk related to currency rate movements. We operate in Canada, the Philippines, Costa Rica and Honduras. The functional currencies in Canada and the Philippines are the Canadian dollar and the Philippine peso, respectively, which are used to pay labor and other operating costs in those countries. However, our client contracts generate revenues that are paid to us in U.S. dollars. In Costa Rica and Honduras, our functional currency is the U.S. dollar and the majority of our costs are denominated in U.S. dollars. | ||||||||||||||||
During the years ended December 31, 2013 and 2012, we entered into Canadian dollar forward contracts for a notional amount of 10,860 and 18,640 Canadian dollars, respectively, to hedge our foreign currency risk with respect to labor costs in Canada. During the years ended December 31, 2013 and 2012, we entered into Philippine peso non-deliverable forward contracts for a notional amount of 2,515,110 and 3,013,540 Philippine pesos, respectively, to hedge our foreign currency risk with respect to labor costs in the Philippines. As of December 31, 2013, we have not entered into any arrangements to hedge our exposure to fluctuations in the Costa Rican colon or the Honduran lempira relative to the U.S. dollar. | ||||||||||||||||
The following table shows the notional principal of our derivative instruments as of December 31, 2013: | ||||||||||||||||
Currency | Notional | |||||||||||||||
Principal | ||||||||||||||||
Instruments qualifying as accounting hedges: | ||||||||||||||||
Foreign exchange contracts | Canadian dollar | 10,860 | ||||||||||||||
Foreign exchange contracts | Philippine peso | 1,511,910 | ||||||||||||||
The above Canadian dollar and Philippine peso foreign exchange contracts are to be delivered periodically through December 2014 at a purchase price of approximately $10,448 and $35,948, respectively, and as such we expect unrealized gains and losses reported in accumulated other comprehensive income will be reclassified to earnings during the next twelve months. Refer to Note 8, “Fair Value Measurements,” for additional information on the fair value measurements for all assets and liabilities, including derivative assets and derivative liabilities. | ||||||||||||||||
The following table shows our derivative instruments measured at gross fair value as reflected in the consolidated balance sheets in derivative asset/liability as of December 31, 2013 and 2012: | ||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
Foreign exchange contracts | $ | — | $ | 2,160 | $ | 733 | $ | 253 | ||||||||
The following table shows the effect of our derivative instruments designated as cash flow hedges for the years ended December 31, 2013 and 2012: | ||||||||||||||||
Gain (Loss) Recognized in AOCI, net of tax | Gain (Loss) Reclassified from AOCI into Income | |||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cash flow hedges: | ||||||||||||||||
Foreign exchange contracts | $ | (4,590 | ) | $ | 1,749 | $ | (1,950 | ) | $ | 758 | ||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||
The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy. | ||||||||||||||||
Restructuring Charges | ||||||||||||||||
Accrued restructuring costs were valued using a discounted cash flow model. Significant assumptions used in determining the amount of the estimated liability for closing a facility are the estimated liability for future lease payments on vacant facilities and the discount rate utilized to determine the present value of the future expected cash flows. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain, in the consolidated statements of operations and comprehensive income (loss). | ||||||||||||||||
In the future, if we sublease for periods that differ from our assumption or if an actual buy-out of a lease differs from our estimate, we may be required to record a gain or loss. Future cash flows also include estimated property taxes through the remainder of the lease term, which are valued based upon historical tax payments. Given that the restructuring charges were valued using our internal estimates using a discounted cash flow model, we have classified the accrued restructuring costs as Level 3 in the fair value hierarchy. | ||||||||||||||||
Long-Lived Assets | ||||||||||||||||
We periodically, on at least an annual basis, evaluate potential impairments of our long-lived assets. In our annual evaluation or when we determine that the carrying value of a long-lived asset may not be recoverable, based upon the existence of one or more indicators of impairment, we evaluate the projected undiscounted cash flows related to the assets. If these cash flows are less than the carrying values of the assets, we measure the impairment based on the excess of the carrying value of the long-lived asset over the long-lived asset’s fair value. Where appropriate, we use a probability-weighted approach to determine our future cash flows, based upon our estimate of the likelihood of certain scenarios, primarily whether we expect to sell new business within a current location. These estimates are consistent with our internal projections and external communications and public disclosures. There were no long-lived assets impaired during 2013 or 2012. | ||||||||||||||||
In 2010, we committed to a plan to sell the buildings and land at our closed facilities in Laramie, Wyoming and Greeley, Colorado. We received estimates of the selling prices of this real estate, and have reduced the value of the buildings and land to fair value, less costs to sell, or approximately $4,102 at December 31, 2012. The measurement of the fair value of the buildings was based upon our third-party real estate broker’s non-binding estimate of fair value using the observable market information regarding sale prices of comparable assets. During 2012, we committed to sell our Enid, Oklahoma facility, which had a carrying value of $867. As these inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, we have classified the assets as Level 3 in the fair value hierarchy as of December 31, 2012. | ||||||||||||||||
During 2013, we reclassified our Laramie, Wyoming facility to held and used, sold the Greeley, Colorado facility (refer to Note 9, "Property, Plant & Equipment," for additional information) and reopened our Enid, Oklahoma facility; therefore, we had no assets held for sale at December 31, 2013. | ||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||
The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||
Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 2,160 | $ | — | $ | 2,160 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 2,160 | $ | — | $ | 2,160 | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 733 | $ | — | $ | 733 | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | 733 | $ | — | $ | 733 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Assets and Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis During the Year ended December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Property, plant and equipment, net | $ | — | $ | — | $ | 531 | $ | 531 | ||||||||
Total fair value of assets measured on a non-recurring basis | $ | — | $ | — | $ | 531 | $ | 531 | ||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 16 | $ | 16 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 16 | $ | 16 | ||||||||
Assets and Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis During the Year ended December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 4,969 | $ | 4,969 | ||||||||
Total fair value of assets measured on a non-recurring basis | $ | — | $ | — | $ | 4,969 | $ | 4,969 | ||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 957 | $ | 957 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 957 | $ | 957 | ||||||||
PROPERTY_PLANT_EQUIPMENT
PROPERTY, PLANT & EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY, PLANT & EQUIPMENT | ' | |||||||
PROPERTY, PLANT & EQUIPMENT | ||||||||
Our property, plant and equipment as of December 31, 2013 and 2012, consisted of the following, by asset class: | ||||||||
2013 | 2012 | |||||||
Land | $ | 70 | $ | 272 | ||||
Buildings and improvements | 26,264 | 25,824 | ||||||
Telephone and computer equipment | 40,414 | 42,917 | ||||||
Software | 37,192 | 39,948 | ||||||
Furniture, fixtures, and miscellaneous equipment | 16,952 | 19,664 | ||||||
Construction in progress | 1,222 | 2,603 | ||||||
122,114 | 131,228 | |||||||
Less accumulated depreciation | (99,904 | ) | (104,918 | ) | ||||
Total property, plant and equipment, net | $ | 22,210 | $ | 26,310 | ||||
In December 2013, we completed a sale and sale leaseback transaction involving land, building and related building improvements at our Greeley, Colorado properties. Sales proceeds, net of direct costs of the transaction, totaled approximately $4,731. Our Greeley North property was sold in a sale leaseback transaction and is currently used for operating a call center and our Greeley West property was sold, which had been held for sale since 2011. | ||||||||
The Greeley North property transaction qualified for sale-leaseback accounting treatment under the provisions of ASC Topic 840-40, Sale-Leaseback Transactions. We evaluated the lease at inception and accounted for it as a capital lease by recording the revalued assets to building and capital lease obligation equal to the fair market value of approximately $1,413. We also recognized a loss of approximately $475 on the sold property, which was measured as the difference between the net sales proceeds, as allocated based on the relative fair values, and the net book value of the sold assets. The loss is recorded in our consolidated statement of operations and comprehensive loss in interest and other income (expense), net. The lease term is seven years with an option to extend. | ||||||||
The sale of the Greeley West property resulted in a loss of approximately $106, which is recorded in our consolidated statement of operations and comprehensive loss in interest and (income) expense, net. | ||||||||
In October 2012, we completed a sale leaseback transaction involving land, building and related building improvements at our Kingston, Ontario property. Sales proceeds, net of direct costs of the transaction, totaled approximately $3,884. | ||||||||
The transaction qualified for sale-leaseback accounting treatment under the provisions of ASC Topic 840-40, Sale-Leaseback Transactions, and met the criteria for operating lease classification. As a result, the sold property was removed from our consolidated balance sheet and the gain was measured as the difference between the net sales proceeds, as allocated based on the relative fair values, and the net book value of the sold assets. The resulting gain of approximately $840 is recorded in our consolidated balance sheet in other current liabilities and other liabilities and will be amortized to rent expense over the lease term, which is three years. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
DEBT | ' |
DEBT | |
Effective February 28, 2012, we entered into a secured revolving credit facility ("Credit Agreement") with Wells Fargo Bank, which replaced the prior credit facility with UMB Bank. The Credit Agreement has a maturity date of February 28, 2016. The amount we may borrow under the Credit Agreement is the lesser of the borrowing base calculation and $10,000, and, so long as no default has occurred, we may increase the maximum availability to $20,000 in $2,500 increments. We may request letters of credit under the Credit Agreement in an aggregate amount equal to the lesser of the borrowing base calculation (minus outstanding advances) and $5,000. The borrowing base is generally defined as 85% of our eligible accounts receivable less reserves for foreign exchange forward contracts and other reserves as defined in the Credit Agreement. As of December 31, 2013, we had $1,000 outstanding borrowings on our credit facility and available capacity was $13,920, net of $80 of letters of credit backed by the facility. | |
Borrowings under the Credit Agreement bear interest at the daily three-month LIBOR index plus 2.50% to 3.00% depending on the calculation of the fixed charge coverage ratio, as defined in the Credit Agreement (3.25% at December 31, 2013). We will pay letter of credit fees on the average daily aggregate available amount of all letters of credit outstanding monthly at a rate per annum of 3.00% and a monthly unused fee at a rate per annum of 0.30% on the aggregate unused commitment under the Credit Agreement. Indebtedness under the Credit Agreement is guaranteed by certain of our present and future domestic subsidiaries. We granted Wells Fargo a security interest in all of our assets, including all cash and cash equivalents, accounts receivable, general intangibles, owned real property, equipment and fixtures. Under the Credit Agreement, we are subject to certain standard affirmative and negative covenants, including the following financial covenants: 1) maintaining a minimum adjusted EBITDA, as defined in the Credit Agreement, of no less than the cumulative month-end minimum amounts set forth in an amendment to the Credit Agreement and 2) limiting non-financed capital expenditures to no more than the cumulative month-end maximum amounts set forth in an amendment to the Credit Agreement. We were in compliance with all such covenants as of December 31, 2013. | |
On February 25, 2013, the Company and Wells Fargo agreed on the financial covenants for 2013 and the first quarter of 2014, constituting the Third Amendment to the Credit Agreement. This amendment also clarified certain definitions and extended the term of the Credit Agreement one year to February 28, 2016. The Company and Wells Fargo are required to agree on financial covenants for the remaining term of the Credit Agreement beyond March 2014, and failure to do so would constitute an event of default. Subsequent amendments to the Credit Agreement further revised certain definitions. |
SHAREBASED_COMPENSATION_AND_EM
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | ' | ||||||||
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | |||||||||
We have a 2008 Equity Incentive Plan (the “Plan”), which reserves 900,000 shares of common stock for issuance pursuant to the terms of the Plan plus 274,298 shares that remained available for future issuance under prior plans on the effective date of the Plan, which was May 5, 2008. As of December 31, 2013, there were 129,961 shares available for future grant under the Plan. Our plan is administered by the Compensation Committee (the "Committee") of the Board of Directors. The types of awards that may be granted under the Plan include stock options, stock appreciation rights, restricted stock, restricted stock units, performance units or other stock-based awards. The terms of the awards granted under the Plan will expire no later than ten years from the grant date. The Committee determines the vesting conditions of awards; however, subject to certain exceptions, an award that is not subject to the satisfaction of performance measures may not fully vest or become fully exercisable earlier than three years from the grant date, and the performance period for an award subject to performance measures may not be shorter than one year. | |||||||||
At the beginning of each quarter, members of the board of directors, at their option, may elect to receive as compensation 1) stock options to purchase shares of common stock with a fair value equivalent of $22,500 (calculated using the Black-Scholes pricing model), 2) shares of common stock with a grant date fair value of $22,500, 3) deferred stock units with a fair value equivalent of $22,500 (calculated using the Black-Scholes pricing model), with ownership of the common stock vesting immediately or over a period determined by the Committee and stated in the award or 4) any combination of options and common stock. Upon the date of grant, the members of the board of directors are immediately vested in the stock options or common stock. | |||||||||
Stock Options | |||||||||
A summary of stock option activity under the Plan as of December 31, 2013, and changes during the year ended December 31, 2013 are presented below: | |||||||||
Shares | Weighted | Weighted-Average | |||||||
Average | Remaining | ||||||||
Exercise Price | Contractual Term (in years) | ||||||||
Outstanding as of January 1, 2013 | 1,789,127 | $ | 4 | ||||||
Granted | 762,763 | 4.82 | |||||||
Exercised | (38,577 | ) | 3.64 | ||||||
Forfeited | (208,230 | ) | 4.64 | ||||||
Expired | (6,000 | ) | 25.95 | ||||||
Outstanding as of December 31, 2013 | 2,299,083 | $ | 4.16 | 8.01 | |||||
Vested and exercisable as of December 31, 2013 | 1,167,772 | $ | 4.45 | 7.36 | |||||
Vested and expected to vest as of December 31, 2013 | 2,089,628 | $ | 4.17 | 8.05 | |||||
The weighted-average grant date fair value of options granted during the years ended December 31, 2013 and 2012 was $3.44 and $1.24, respectively. The total fair value of shares vested during the years ended December 31, 2013 and 2012 was $965 and $1,153, respectively. | |||||||||
The assumptions used to determine the value of our stock-based awards under the Black-Scholes method are summarized below: | |||||||||
2013 | 2012 | ||||||||
Risk-free interest rate | 0.36% - 2.7% | 0.37% - 1.6% | |||||||
Dividend yield | —% | —% | |||||||
Expected volatility | 56.5% - 67.6% | 56.8% - 77.9% | |||||||
Average expected life in years | 7 | 5 | |||||||
The risk-free interest rate is based on the U.S. Treasury strip yield in effect at the time of grant with a term equal to the expected term of the stock option granted. Average expected life and volatilities are based on historical experience, which we believe will be indicative of future experience. | |||||||||
Restricted Stock Awards and Deferred Stock Units | |||||||||
A summary of restricted stock awards and deferred stock units activity under the Plan as of December 31, 2013, and changes during the year then ended are presented below: | |||||||||
Number of | Weighted-Average | ||||||||
Restricted Shares and Units | Grant Date Fair Value | ||||||||
Nonvested balance as of January 1, 2013 | 13,656 | $ | 4.08 | ||||||
Vested | (9,255 | ) | 4.41 | ||||||
Forfeited | (1,067 | ) | 6.58 | ||||||
Nonvested balance as of December 31, 2013 | 3,334 | $ | 2.35 | ||||||
The total fair value of restricted stock awards and deferred stock units vested during the years ended December 31, 2013 and 2012 was $41 and $251, respectively. | |||||||||
Share-based Compensation Expense | |||||||||
The compensation expense that has been charged against income for stock option awards, restricted stock and deferred stock units for December 31, 2013 and 2012 was $1,607, and $1,275, respectively, and is included in selling, general and administrative expense. As of December 31, 2013, there was $1,940 of total unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted-average period of 2.1 years. As of December 31, 2013, there was $5 of total unrecognized compensation expense related to nonvested restricted stock awards, which is expected to be recognized over a weighted-average period of 0.8 years. | |||||||||
Employee Stock Purchase Plan | |||||||||
Under the terms of our employee stock purchase plan ("ESPP"), eligible employees may authorize payroll deductions up to 10% of their base pay to purchase shares of our common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each quarterly stock purchase period. On May 7, 2012, an additional 100,000 shares were authorized for issuance under the ESPP; therefore, a total of 400,000 shares were authorized under the ESPP and 107,475 shares were available for issuance as of December 31, 2013. | |||||||||
During 2013 and 2012, 24,404 and 50,317 shares were purchased under this plan at an average price of $3.97 and $2.05, respectively. Total expense recognized related to the ESPP during the years ended December 31, 2013 and 2012 was $26 and $35, respectively. The assumptions used to value the shares under the ESPP using the Black-Scholes method were as follows: | |||||||||
2013 | 2012 | ||||||||
Risk-free interest rate | 0.02% - 0.07% | 0.02% - 0.10% | |||||||
Dividend yield | —% | —% | |||||||
Expected volatility | 24.2% - 64.7% | 48.9% - 93.1% | |||||||
Expected life in years | 3 months | 3 months | |||||||
The weighted average grant date fair value of these shares was $1.07, and $0.70 per share during the years ended December 31, 2013 and 2012, respectively. | |||||||||
401(k) Plan | |||||||||
We have a safe harbor 401(k) plan that allows participation by all eligible employees as of the first day of the quarter following their hire date. Eligible employees may contribute up to the maximum limit determined by the Internal Revenue Code. Participants receive a matching contribution after completing one year of service and the minimum number of hours required under the plan. We match 100% of the participant’s contribution for the first 3% and 50% of the participant’s contribution for the next 2%. Company matching contributions to the 401(k) plan totaled $288 and $320 for the years ended December 31, 2013 and 2012, respectively. |
INTEREST_AND_OTHER_INCOME_EXPE
INTEREST AND OTHER INCOME (EXPENSE), NET | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Income and Expenses [Abstract] | ' | |||||||
INTEREST AND OTHER (INCOME) EXPENSE, NET | ' | |||||||
INTEREST AND OTHER INCOME (EXPENSE), NET | ||||||||
Interest and other income (expense), net for the years ended December 31, 2013 and 2012 were composed of the following: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Interest income | $ | 88 | $ | 86 | ||||
Interest (expense) | (114 | ) | (78 | ) | ||||
Gain (loss) on disposal of assets | (1,549 | ) | 45 | |||||
Other income (expense) | (4 | ) | 289 | |||||
Interest and other income (expense), net | $ | (1,579 | ) | $ | 342 | |||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
INCOME TAXES | ' | |||||||
INCOME TAXES | ||||||||
The domestic and foreign source component of income (loss) from continuing operations before income taxes was: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
U.S. | $ | (15,452 | ) | $ | (21,244 | ) | ||
Foreign | 9,276 | 10,872 | ||||||
Total | $ | (6,176 | ) | $ | (10,372 | ) | ||
Significant components of the provision for income taxes from continuing operations were: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Current: | ||||||||
Federal | $ | — | $ | (548 | ) | |||
State | — | (77 | ) | |||||
Foreign | (29 | ) | 499 | |||||
Total current (benefit) | $ | (29 | ) | $ | (126 | ) | ||
Deferred: | ||||||||
Federal | $ | 25 | $ | (10 | ) | |||
State | 2 | (1 | ) | |||||
Foreign | 232 | 253 | ||||||
Total deferred expense | $ | 259 | $ | 242 | ||||
Income tax expense | $ | 230 | $ | 116 | ||||
GAAP requires all items be considered, including items recorded in other comprehensive income, in determining the amount of tax benefit that results from a loss from continuing operations that should be allocated to continuing operations. | ||||||||
Significant components of deferred tax assets and deferred tax liabilities included in the accompanying consolidated balance sheets as of December 31, 2013 and 2012 were: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Current deferred tax assets (liabilities): | ||||||||
Accrued restructuring costs | $ | (41 | ) | $ | 218 | |||
Other accrued liabilities | 15 | 90 | ||||||
Derivative instruments | 816 | (176 | ) | |||||
Prepaid expenses | (209 | ) | (480 | ) | ||||
Cumulative translation adjustment | (1,397 | ) | (1,760 | ) | ||||
Other | 373 | 438 | ||||||
Total current net deferred tax liabilities | $ | (443 | ) | $ | (1,670 | ) | ||
Long-term deferred tax assets (liabilities): | ||||||||
Fixed assets | $ | 2,969 | $ | 3,385 | ||||
Accrued stock compensation | 3,085 | 2,556 | ||||||
Accrued restructuring costs | 47 | 89 | ||||||
Foreign tax credit carryforward | — | 525 | ||||||
Work opportunity credit carryforward | 4,988 | 4,988 | ||||||
Operating loss carryforward | 10,653 | 8,443 | ||||||
Intangibles and goodwill | 22 | — | ||||||
Other | 221 | 114 | ||||||
Total long-term net deferred tax assets | $ | 21,985 | $ | 20,100 | ||||
Subtotal | $ | 21,542 | $ | 18,430 | ||||
Valuation allowance | (20,000 | ) | (16,602 | ) | ||||
Total net deferred tax asset | $ | 1,542 | $ | 1,828 | ||||
We consider all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), and projected taxable income in assessing the realizability of deferred tax assets. In making such judgments, significant weight is given to evidence that can be objectively verified. In order to fully realize the U.S. deferred tax assets, we will need to generate sufficient taxable income in future periods before the expiration of the deferred tax assets governed by the tax code. | ||||||||
We do not provide for deferred taxes on the excess of the financial reporting basis over the tax basis in our investments in foreign subsidiaries that are essentially permanent in duration. In general, it is our practice and intention to reinvest the earnings of our foreign subsidiaries in those operations. Generally, the earnings of our foreign subsidiaries become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. Exceptions may be made on a year-by-year basis to repatriate current year earnings of certain foreign subsidiaries based on cash needs in the U.S. As of December 31, 2013, we have not provided for U.S. income taxes on undistributed earnings of our foreign subsidiaries, since such earnings are considered indefinitely reinvested. | ||||||||
At December 31, 2013 and 2012, U.S. income and foreign withholding taxes have not been provided for on approximately $1,300 and $244, respectively, of unremitted earnings of subsidiaries operating outside of the U.S. These earnings are estimated to represent the excess of the financial reporting over the tax basis in our investments in those subsidiaries and would become subject to U.S. income tax if they were remitted to the U.S. If we had not intended to utilize the undistributed earnings in our foreign operations for an indefinite period of time, the deferred tax liability as of December 31, 2013 would have been approximately $455. | ||||||||
Differences between U.S. federal statutory income tax rates and our effective tax rates for the years ended December 31, 2013 and 2012 for continuing operations were: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
U.S. statutory tax rate | 35 | % | 35 | % | ||||
Effect of state taxes (net of federal benefit) | -1 | % | 5.8 | % | ||||
Effect of change in Canadian tax rate | 1.5 | % | -0.3 | % | ||||
Other permanent differences (including meals and entertainment) | 1.8 | % | -0.4 | % | ||||
Stock based compensation | -0.9 | % | -0.8 | % | ||||
Rate differential on foreign earnings | 48.5 | % | 29.5 | % | ||||
Foreign income taxed in the U.S. | -95 | % | -43.2 | % | ||||
Uncertain tax positions | 19.5 | % | -45.4 | % | ||||
Unremitted foreign earnings of subsidiary | 27.7 | % | -16.5 | % | ||||
Tax expense allocation to other comprehensive income | — | % | 6.1 | % | ||||
Valuation allowance | -33.5 | % | 28 | % | ||||
Expiration of foreign tax credit carryforward | -8.5 | % | — | % | ||||
Other, net | 1.1 | % | 1.1 | % | ||||
Total | -3.8 | % | -1.1 | % | ||||
As of December 31, 2013, we had gross federal net operating loss carry forwards of approximately $34,560 expiring beginning in 2030 and gross state net operating loss carry forwards of approximately $60,435 expiring beginning in 2014. | ||||||||
We have been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines, Costa Rica and Honduras. Generally, a Tax Holiday is an agreement between us and a foreign government under which we receive certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, we had been granted approval for a Tax Holiday, whereby we had an exemption from income tax until late 2012 after which time the tax rate will be 5%; however, we have applied for an extension and are awaiting approval. In Costa Rica, we have been granted approval for an exemption equal to 100% of income tax through 2018, and for 50% of income tax for the four years thereafter. In Honduras, we have been granted approval for an indefinite exemption from income taxes. The exemption could be lifted at any time if the Honduran government approves legislation to appeal the exemption. The aggregate reduction in income tax expense for the years ended December 31, 2013 and 2012 was $2,620 and $2,383, respectively, which had a favorable impact on net loss of $0.17 per share and $0.16 per share, respectively. | ||||||||
Under accounting standards for uncertainty in income taxes (ASC 740-10), a company recognizes a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” in the accounting standards for income taxes refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. | ||||||||
The following table indicates the changes to our unrecognized tax benefits for the years ended December 31, 2013 and 2012. The term “unrecognized tax benefits” in the accounting standards for income taxes refers to the differences between a tax position taken or expected to be taken in a tax return and the benefit measured and recognized in the financial statements. If recognized, all of these benefits would impact our income tax expense, before consideration of any related valuation allowance. | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Unrecognized, January 1, | $ | 4,705 | $ | — | ||||
Additions based on tax positions taken in current year | 1,090 | 4,705 | ||||||
Reductions based on tax positions taken in prior year | (2,293 | ) | — | |||||
Unrecognized, December 31, | $ | 3,502 | $ | 4,705 | ||||
We file numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many state jurisdictions, as well as in Canada, the Philippines, Costa Rica and Honduras. Our U.S. federal returns and most state returns for tax years 2008 and forward are subject to examination. Canadian returns for tax years 2007 and forward are subject to examination. Our returns since our commencement of operations in the Philippines in 2008, Costa Rica in 2010 and Honduras in 2011 are subject to examination. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
Accumulated other comprehensive income (loss) consisted of the following items: | ||||||||||||
Foreign Currency Translation Adjustment | Derivatives Accounted for as Cash Flow Hedges | Total | ||||||||||
Balance at January 1, 2012 | $ | 2,385 | $ | (883 | ) | $ | 1,502 | |||||
Foreign currency translation | 670 | — | 670 | |||||||||
Reclassification to operations | — | (758 | ) | (758 | ) | |||||||
Unrealized gains (losses) | — | 1,749 | 1,749 | |||||||||
Tax (benefit) | (257 | ) | (377 | ) | (634 | ) | ||||||
Balance at December 31, 2012 | $ | 2,798 | $ | (269 | ) | $ | 2,529 | |||||
Foreign currency translation | (898 | ) | — | (898 | ) | |||||||
Reclassification to operations | — | 1,950 | 1,950 | |||||||||
Unrealized gains (losses) | — | (4,590 | ) | (4,590 | ) | |||||||
Balance at December 31, 2013 | $ | 1,900 | $ | (2,909 | ) | $ | (1,009 | ) | ||||
Reclassifications out of accumulated other comprehensive income for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(Gains) losses on cash flow hedges | ||||||||||||
Foreign exchange contracts | $ | 1,828 | $ | (758 | ) | Cost of services | ||||||
Foreign exchange contracts | 122 | — | Selling, general and administrative expenses | |||||||||
$ | 1,950 | $ | (758 | ) | ||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Operating Leases | ||||||||
We lease facilities and equipment under various non-cancelable operating leases. Some of these leases have renewal clauses that vary both in length and fee, based on our negotiations with the lessors. Rent expense, including equipment rentals, for 2013 and 2012 was $9,691, and $9,153, respectively. As of December 31, 2013, approximate minimum annual rentals under operating leases and approximate minimum payments to be received under annual non-cancelable subleases and leases were as follows. | ||||||||
Minimum Lease | Minimum | |||||||
Payments | Sublease/Lease Receivable | |||||||
2014 | $ | 10,103 | $ | 306 | ||||
2015 | 7,392 | — | ||||||
2016 | 5,818 | — | ||||||
2017 | 5,794 | — | ||||||
2018 | 4,370 | — | ||||||
Thereafter | 1,052 | — | ||||||
Total minimum lease payments | $ | 34,529 | $ | 306 | ||||
Capital Leases | ||||||||
We lease equipment and a facility under various non-cancelable capital leases. As of December 31, 2013, approximate minimum annual rentals under capital leases were as follows. | ||||||||
Minimum Lease Payments | ||||||||
2014 | $ | 371 | ||||||
2015 | 370 | |||||||
2016 | 377 | |||||||
2017 | 384 | |||||||
2018 | 392 | |||||||
Thereafter | 808 | |||||||
Total minimum lease payments | $ | 2,702 | ||||||
Less amount representing interest | (1,280 | ) | ||||||
Present value of obligations under capital leases | 1,422 | |||||||
Less current portion of obligations under capital leases | (113 | ) | ||||||
Obligations under capital leases, excluding current portion | $ | 1,309 | ||||||
Legal Proceedings | ||||||||
We have been involved from time to time in litigation arising in the normal course of business, none of which is expected by management to have a material adverse effect on our business, consolidated financial condition, results of operations or cash flows. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
SEGMENT INFORMATION | ' | |||||||
SEGMENT INFORMATION | ||||||||
We operate our business within three reportable segments, based on the geographic regions in which our services are rendered: Domestic, Asia Pacific and Latin America. As of December 31, 2013, our Domestic segment included the operations of seven facilities in the U.S. and one facility in Canada. Our Asia Pacific segment included the operations of three facilities in the Philippines and our Latin America segment included one facility in Costa Rica and one facility in Honduras. | ||||||||
We primarily evaluate segment operating performance in each reporting segment based on net sales, gross profit and working capital. Certain operating expenses are not allocated to each reporting segment; therefore, we do not present income statement information by reporting segment below the gross profit level. | ||||||||
Information about our reportable segments, which correspond to the geographic areas in which we operate, for the years ended December 31, 2013 and 2012 is as follows: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Revenue: | ||||||||
Domestic | $ | 120,928 | $ | 99,827 | ||||
Asia Pacific | 81,082 | 79,683 | ||||||
Latin America | 29,247 | 18,582 | ||||||
Total | $ | 231,257 | $ | 198,092 | ||||
Gross profit: | ||||||||
Domestic | $ | 13,291 | $ | 7,396 | ||||
Asia Pacific | 9,974 | 16,476 | ||||||
Latin America | 1,060 | (875 | ) | |||||
Total | $ | 24,325 | $ | 22,997 | ||||
Depreciation: | ||||||||
Domestic | $ | 7,340 | $ | 7,450 | ||||
Asia Pacific | 4,193 | 4,659 | ||||||
Latin America | 994 | 848 | ||||||
Total | $ | 12,527 | $ | 12,957 | ||||
Capital expenditures: | ||||||||
Domestic | $ | 5,555 | $ | 4,757 | ||||
Asia Pacific | 1,254 | 1,728 | ||||||
Latin America | 2,034 | 820 | ||||||
Total | $ | 8,843 | $ | 7,305 | ||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Total assets: | ||||||||
Domestic | $ | 76,224 | $ | 77,032 | ||||
Asia Pacific | 10,520 | 12,779 | ||||||
Latin America | 2,973 | 3,321 | ||||||
Total | $ | 89,717 | $ | 93,132 | ||||
The following tables present certain financial data based upon the geographic location where the services are provided: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Revenue: | ||||||||
United States | $ | 95,333 | $ | 69,403 | ||||
Canada | 25,595 | 30,424 | ||||||
Philippines | 81,082 | 79,683 | ||||||
Latin America | 29,247 | 18,582 | ||||||
Total | $ | 231,257 | $ | 198,092 | ||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Total property, plant and equipment, net: | ||||||||
United States | $ | 12,875 | $ | 13,549 | ||||
Canada | 96 | 420 | ||||||
Philippines | 7,050 | 9,921 | ||||||
Latin America | 2,189 | 2,420 | ||||||
Total | $ | 22,210 | $ | 26,310 | ||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
In February 2014, we announced the closure of our Jonesboro, Arkansas site. Operations will cease in the second quarter of 2014 when the business transitions to another facility. The lease will terminate in June 2015. |
BASIS_OF_PRESENTATION_AND_SUMM1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Consolidation | ' | |
Consolidation | ||
Our consolidated financial statements include the accounts of all wholly-owned subsidiaries after elimination of significant intercompany balances and transactions. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary. | ||
Concentration of Credit Risk | ' | |
Concentration of Credit Risk | ||
We are 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. We regularly monitor credit risk to mitigate the possibility of current and future exposures resulting in a loss. We evaluate the creditworthiness of clients prior to entering into an agreement to provide services and on an on-going basis as part of the processes of revenue recognition and accounts receivable. We do not believe we are exposed to more than a nominal amount of credit risk in our derivative hedging activities, as the counter parties are established, well-capitalized financial institutions. | ||
Foreign Currency Translation | ' | |
Foreign Currency Translation | ||
The assets and liabilities of our foreign operations that are recorded in foreign currencies are translated into U.S. dollars at exchange rates prevailing at the balance sheet date. Revenues and expenses are translated at the weighted-average exchange rate during the reporting period. Resulting translation adjustments, net of applicable deferred income taxes, are recorded in accumulated other comprehensive income. Foreign currency transaction gains and losses are included in the accompanying consolidated statements of operations and comprehensive loss. Such gains and losses were not material for any period presented. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Business Process Outsourcing Services —We invoice our clients monthly in arrears and recognize revenues for such services when completed. Substantially all of our contractual arrangements are based either on a production rate, meaning that we recognize revenue based on the billable hours or minutes of each call center agent, or on a rate per transaction basis. These rates could be based on the number of paid hours the agent works, the number of minutes the agent is available to answer calls, or the number of minutes the agent is actually handling calls for the client, depending on the client contract. Production rates vary by client contract and can fluctuate based on our performance against certain pre-determined criteria related to quality and performance. Additionally, some clients are contractually entitled to penalties when we are out of compliance with certain quality and/or performance obligations defined in the client contract. Such penalties are recorded as a reduction to revenue as incurred based on a measurement of the appropriate penalty under the terms of the client contract. Likewise, some client contracts stipulate that we are entitled to bonuses should we meet or exceed these predetermined quality and/or performance obligations. These bonuses are recognized as incremental revenue in the period in which they are earned. | ||
As a general rule, our contracts do not include multiple elements. We provide initial training to customer service representatives upon commencement of new contracts and recognize revenues for such training as the services are provided based upon the production rate (i.e., billable hours and rates related to the training services as stipulated in our contractual arrangements). Accordingly, the corresponding training costs, consisting primarily of labor and related expenses, are recognized as incurred. | ||
Allowance for Doubtful Accounts | ' | |
Allowance for Doubtful Accounts | ||
An allowance for doubtful accounts is provided for known and estimated potential losses arising from sales to customers based on a periodic review of these accounts. There was no allowance for doubtful accounts as of December 31, 2013 or 2012. | ||
Fair Value of Financial Instruments | ' | |
Fair Value of Financial Instruments | ||
The carrying value of our cash and cash equivalents, accounts receivable, notes receivable, accounts payable and line of credit approximate fair value because of their short-term nature. | ||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk. | ||
Accounting guidance for the measurement of fair value establishes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The levels of the fair value hierarchy are described below: | ||
Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. | ||
Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | ||
Level 3 Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. | ||
Refer to Note 8, “Fair Value Measurements,” for additional information on how we determine fair value for our assets and liabilities. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
We consider cash equivalents to be short-term, highly liquid investments readily convertible to known amounts of cash and so near their maturity at purchase that they present insignificant risk of changes in value because of changes in interest rates. | ||
Restricted Cash | ' | |
Restricted cash of $456 included in other current assets at December 31, 2013 represents escrowed funds related to the sales leaseback of our Greeley North property. | ||
Derivative Instruments and Hedging Activities | ' | |
Derivative Instruments and Hedging Activities | ||
Our derivative instruments consist of foreign currency forward contracts and are recorded as either an asset or liability measured at its fair value, with changes in the fair value of qualifying hedges recorded in other comprehensive income. Changes in a derivative’s fair value are recognized currently in the statements of operations unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative’s gains and losses to offset the related results of the hedged item and requires that we must formally document, designate and assess the effectiveness of transactions that receive hedge accounting treatment. | ||
We generally are able to apply cash flow hedge accounting which associates the results of the hedges with forecasted future expenses. The current mark-to-market gain or loss is recorded in accumulated other comprehensive income and will be re-classified to operations as the forecasted expenses are incurred, typically within one year. During 2013 and 2012, our cash flow hedges were highly effective and hedge ineffectiveness was not material. While we expect that our derivative instruments that have been designated as hedges will continue to meet the conditions for hedge accounting, if hedges do not qualify as highly effective or if we do not believe that forecasted transactions will occur, the changes in the fair value of the derivatives used as hedges will be reflected in earnings. | ||
Property, Plant and Equipment | ' | |
Property, Plant and Equipment | ||
Property, plant, and equipment are stated at depreciated cost. Additions and improvement activities are capitalized. Maintenance and repairs are expensed as incurred. Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: | ||
Estimated Useful Life | ||
Buildings and building improvements | 15-30 years | |
Telephone and computer equipment | 3-5 years | |
Software | 3 years | |
Furniture, fixtures, and miscellaneous equipment | 5-7 years | |
We depreciate leasehold improvements associated with operating leases over the shorter of the expected useful life or remaining life of the lease. Depreciation for assets obtained under a capital lease is included in depreciation expense. | ||
Impairment of Long-Lived Assets | ' | |
Impairment of Long-Lived Assets | ||
We periodically, on at least an annual basis, evaluate potential impairments of our long-lived assets. In our annual evaluation or when we determine that the carrying value of a long-lived asset may not be recoverable, based upon the existence of one or more indicators of impairment, we evaluate the projected undiscounted cash flows related to the assets. If these cash flows are less than the carrying values of the assets, we measure the impairment based on the excess of the carrying value of the long-lived asset over the long-lived asset’s fair value. Our projections contain assumptions pertaining to anticipated levels of utilization and revenue that may or may not be under contract but are based on our experience and/or projections received from our customers. | ||
Goodwill and Intangible Assets, Goodwill, Policy | ' | |
Goodwill | ||
Goodwill is recorded at fair value and not amortized, but is reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, that the fair value of the reporting unit may be more likely than not less than carrying amount, or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test. | ||
The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the quantitative impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied fair value of goodwill exceeds the carrying amount, then goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was determined as the exit price a market participant would pay for the same business). We have elected to perform the annual impairment assessment for goodwill in the fourth quarter. | ||
We completed the acquisitions of two companies during 2013 for which one has finalized purchase price accounting. No events or changes in circumstances have occurred since the closing of these acquisitions to indicate any impairment at December 31, 2013 to the carrying amount of the newly acquired goodwill; therefore, based on our qualitative assessment, it is not more likely than not an impairment has occurred. | ||
Intangible Assets, Finite-Lived, Policy | ' | |
Intangible Assets | ||
We amortize all acquisition-related intangible assets that are subject to amortization based using the straight-line method over the estimated useful life based on economic benefit as follows: | ||
Estimated Useful Life | ||
Developed technology | 8 years | |
Customer base and customer relationships | 3 years | |
Trade name | 6 years | |
Noncompete agreement | 2 years | |
We perform a review of intangible assets to determine if facts and circumstances indicate that the useful life is shorter than we had originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, we assess recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, we accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. | ||
For further discussion of identified intangible assets, refer to Note 3, "Goodwill and Intangible Assets." | ||
Assets Held for Sale | ' | |
Assets Held for Sale | ||
We classify an asset as held for sale when the facts and circumstances meet the criteria for such classification, including the following (a) we have committed to a plan to sell the asset, (b) the asset is available for immediate sale, (c) we have initiated actions to complete the sale, (d) the sale is expected to be completed within one year, (e) the asset is being actively marketed at a price that is reasonable relative to its fair value and (f) the plan to sell is unlikely to be subject to significant changes or termination. Assets held for sale are reported at the lower of cost or fair value less costs to sell. | ||
Restructuring Charges | ' | |
Restructuring Charges | ||
On an ongoing basis, management assesses the profitability and utilization of our facilities and in some cases management has chosen to close facilities. Severance payments that occur from reductions in workforce are in accordance with our postemployment policy and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, instead of upon commitment to an exit plan. A significant assumption used in determining the amount of the estimated liability for closing a facility is the estimated liability for future lease payments on vacant facilities. We determine our estimate of sublease payments based on our ability to successfully negotiate early termination agreements with landlords, a third-party broker or management’s assessment of our ability to sublease the facility based upon the market conditions in which the facility is located. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain. | ||
Leases | ' | |
Leases | ||
Rent holidays, landlord/tenant incentives and escalations are included in some instances in the base price of our rent payments over the term of our operating leases. We recognize rent holidays and rent escalations on a straight-line basis over the lease term. The landlord/tenant incentives are recorded as deferred rent and amortized on a straight line basis over the lease term. | ||
Assets held under capital leases are included in property, plant and equipment, net in our consolidated balance sheets and depreciated over the term of the lease. Rent payments under the leases are recognized as a reduction of the capital lease obligation and interest expense. | ||
Deferred Gains on Sale and Leaseback Transactions | ||
We amortize deferred gains on the sale and leaseback of properties under operating leases over the life of the lease. The amortization of these gains is recorded as a reduction to rent expense. The deferred gain is recorded in our consolidated balance sheet in current and other current liabilities. | ||
Income Taxes | ' | |
Income Taxes | ||
Income taxes are accounted for under the asset and liability method. Deferred income taxes reflect net effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. We are subject to foreign income taxes on our foreign operations. We are required to estimate our income taxes in each jurisdiction in which we operate. This process involves estimating our actual current tax exposure, together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. The tax effects of these temporary differences are recorded as deferred tax assets or deferred tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted. We record a valuation allowance when it is more likely than not that we will not realize the net deferred tax assets in a certain jurisdiction. | ||
We record tax benefits when they are more likely than not to be realized. Our policy is to reflect penalties and interest as part of income tax expense as they become applicable. | ||
Stock-Based Compensation | ' | |
Stock-Based Compensation | ||
We recognize expense related to all share-based payments to employees, including grants of employee stock options, based on the grant-date fair values amortized straight-line over the period during which the employees are required to provide services in exchange for the equity instruments. We include an estimate of forfeitures when calculating compensation expense. We use the Black-Scholes method for valuing stock-based awards. See Note 11, “Share-Based Compensation and Employee Benefit Plans,” for further information regarding the assumptions used to calculate share-based payment expense. | ||
Recently Adopted and Issued Accounting Standards | ' | |
Recently Adopted Accounting Standards | ||
In July 2012, the FASB issued Accounting Standard Update 2012-02, Intangibles-Goodwill and Other: Testing Indefinite-Lived Intangible Assets for Impairment ("ASU 2012-02"). The intent of ASU 2012-02 is to simplify how registrants test indefinite-lived intangible asset for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. ASU 2012-02 permits registrants to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with U.S. GAAP. An entity will have an option not to calculate annually the fair value of an indefinite-lived intangible asset if the entity determines that it is not more likely than not that the asset is impaired. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted. We adopted this new guidance during 2013 and the adoption of the new guidance did not impact our financial position, results of operations, comprehensive income or cash flows, other than related disclosures. | ||
Recently Issued Accounting Standards | ||
In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB Accounting Standards Codification (“ASC”) Topic 740, Income Taxes (“FASB ASC Topic 740”). This update clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on our financial statements. | ||
In March 2013, the FASB issued ASU 2013-05 Topic 830 - Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this ASU resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. ASU 2013-05 is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The adoption of this ASU is not expected to have a material impact on our financial statements. |
BASIS_OF_PRESENTATION_AND_SUMM2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of Estimated Useful Lives | ' | |||||||
Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: | ||||||||
Estimated Useful Life | ||||||||
Buildings and building improvements | 15-30 years | |||||||
Telephone and computer equipment | 3-5 years | |||||||
Software | 3 years | |||||||
Furniture, fixtures, and miscellaneous equipment | 5-7 years | |||||||
Our property, plant and equipment as of December 31, 2013 and 2012, consisted of the following, by asset class: | ||||||||
2013 | 2012 | |||||||
Land | $ | 70 | $ | 272 | ||||
Buildings and improvements | 26,264 | 25,824 | ||||||
Telephone and computer equipment | 40,414 | 42,917 | ||||||
Software | 37,192 | 39,948 | ||||||
Furniture, fixtures, and miscellaneous equipment | 16,952 | 19,664 | ||||||
Construction in progress | 1,222 | 2,603 | ||||||
122,114 | 131,228 | |||||||
Less accumulated depreciation | (99,904 | ) | (104,918 | ) | ||||
Total property, plant and equipment, net | $ | 22,210 | $ | 26,310 | ||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | ' | |||||||
We amortize all acquisition-related intangible assets that are subject to amortization based using the straight-line method over the estimated useful life based on economic benefit as follows: | ||||||||
Estimated Useful Life | ||||||||
Developed technology | 8 years | |||||||
Customer base and customer relationships | 3 years | |||||||
Trade name | 6 years | |||||||
Noncompete agreement | 2 years |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Ideal Dialogue Company [Member] | ' | ||||
Business Acquisition [Line Items] | ' | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ||||
The following summarizes the final purchase price allocation of the fair values of the assets acquired as of the acquisition date: | |||||
Acquisition Date | |||||
Fair Value | |||||
Property, plant and equipment | $ | 13 | |||
Developed technology | 390 | ||||
Customer base | 130 | ||||
Trade name | 70 | ||||
Noncompete agreement | 10 | ||||
Goodwill | 887 | ||||
Total purchase price | $ | 1,500 | |||
RN's On Call [Member] | ' | ||||
Business Acquisition [Line Items] | ' | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ||||
The estimates of fair value of identifiable assets acquired are preliminary, pending completion of a valuation, thus are subject to revisions that may result in adjustments to the values presented below: | |||||
Preliminary Estimate of Acquisition Date Fair Value | |||||
Customer relationships | $ | 750 | |||
Goodwill | 750 | ||||
Total purchase price | $ | 1,500 | |||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||
Schedule of Finite-Lived Intangible Assets | ' | ||||||||||||||
The following table presents our intangible assets as of December 31, 2013: | |||||||||||||||
Gross Intangibles | Accumulated Amortization | Net Intangibles | Weighted Average Amortization Period (years) | ||||||||||||
Developed technology | $ | 390 | $ | 37 | $ | 353 | 4.14 | ||||||||
Customer base and customer relationships | 880 | 137 | 744 | 1.67 | |||||||||||
Trade name | 70 | 9 | 61 | 3.14 | |||||||||||
Noncompete agreement | 10 | 4 | 6 | 1.2 | |||||||||||
$ | 1,350 | $ | 186 | $ | 1,164 | 3.52 | |||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||||
We estimated future amortization expense for the succeeding years relating to the intangible assets resulting from acquisitions as follows: | |||||||||||||||
Year Ending December 31, | Amount | ||||||||||||||
2014 | $ | 359 | |||||||||||||
2015 | 355 | ||||||||||||||
2016 | 217 | ||||||||||||||
2017 | 60 | ||||||||||||||
2018 | 60 | ||||||||||||||
Thereafter | 113 | ||||||||||||||
IMPAIRMENT_LOSSES_AND_RESTRUCT1
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | ' | ||||||||||||||||||||||||
A summary of the activity under the restructuring plans as of December 31, 2013, and changes during the years ended December 31, 2013 and 2012 are presented below: | |||||||||||||||||||||||||
Facility-Related Costs | |||||||||||||||||||||||||
Victoria | Laramie | Grand | Decatur | Regina | Total | ||||||||||||||||||||
Junction | |||||||||||||||||||||||||
Balance as of January 1, 2012 | $ | 483 | $ | 63 | $ | 252 | $ | — | $ | 852 | $ | 1,650 | |||||||||||||
Expense (reversal) | — | (20 | ) | (138 | ) | 464 | 671 | 977 | |||||||||||||||||
Payments, net of receipts for sublease | 54 | (43 | ) | (114 | ) | (378 | ) | (1,197 | ) | (1,678 | ) | ||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 8 | 8 | |||||||||||||||||||
Balance as of December 31, 2012 | $ | 537 | $ | — | $ | — | $ | 86 | $ | 334 | $ | 957 | |||||||||||||
Expense (reversal) | (443 | ) | — | — | (56 | ) | — | (499 | ) | ||||||||||||||||
Payments, net of receipts for sublease | (78 | ) | — | — | (30 | ) | (328 | ) | (436 | ) | |||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||
Balance as of December 31, 2013 | $ | 16 | $ | — | $ | — | $ | — | $ | — | $ | 16 | |||||||||||||
PRINCIPAL_CLIENTS_Tables
PRINCIPAL CLIENTS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||
Schedule of Revenue by Major Client | ' | ||||||||||
The following table represents revenue concentration of our principal clients: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Revenue | Percentage | Revenue | Percentage | ||||||||
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T, Inc. (1) | $ | 58,395 | 25.30% | $ | 63,904 | 32.30% | |||||
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom (2) | $ | 64,095 | 27.70% | $ | 55,916 | 28.20% | |||||
Comcast Cable Communications Management, LLC, subsidiary of Comcast Corporation (2) | $ | 45,887 | 19.80% | * | * | ||||||
* less than 10% | |||||||||||
(1) Revenue from this customer is generated through our Domestic and Asia Pacific segments. | |||||||||||
(2) Revenue from this customer is generated through our Domestic, Asia Pacific and Latin America segments. |
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | |||||||||||||||
The following table shows the notional principal of our derivative instruments as of December 31, 2013: | ||||||||||||||||
Currency | Notional | |||||||||||||||
Principal | ||||||||||||||||
Instruments qualifying as accounting hedges: | ||||||||||||||||
Foreign exchange contracts | Canadian dollar | 10,860 | ||||||||||||||
Foreign exchange contracts | Philippine peso | 1,511,910 | ||||||||||||||
Schedule of Derivative Instruments in the Consolidated Balance Sheets, Fair Value | ' | |||||||||||||||
The following table shows our derivative instruments measured at gross fair value as reflected in the consolidated balance sheets in derivative asset/liability as of December 31, 2013 and 2012: | ||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||
Foreign exchange contracts | $ | — | $ | 2,160 | $ | 733 | $ | 253 | ||||||||
Schedule of Derivative Instruments, Gain (Loss) in the Consolidated Statement of Operations | ' | |||||||||||||||
The following table shows the effect of our derivative instruments designated as cash flow hedges for the years ended December 31, 2013 and 2012: | ||||||||||||||||
Gain (Loss) Recognized in AOCI, net of tax | Gain (Loss) Reclassified from AOCI into Income | |||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cash flow hedges: | ||||||||||||||||
Foreign exchange contracts | $ | (4,590 | ) | $ | 1,749 | $ | (1,950 | ) | $ | 758 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | |||||||||||||||
The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||
Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 2,160 | $ | — | $ | 2,160 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 2,160 | $ | — | $ | 2,160 | ||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||
on a Recurring Basis as of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 733 | $ | — | $ | 733 | ||||||||
Total fair value of assets measured on a recurring basis | $ | — | $ | 733 | $ | — | $ | 733 | ||||||||
Liabilities: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Total fair value of liabilities measured on a recurring basis | $ | — | $ | 253 | $ | — | $ | 253 | ||||||||
Assets and Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis During the Year ended December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Property, plant and equipment, net | $ | — | $ | — | $ | 531 | $ | 531 | ||||||||
Total fair value of assets measured on a non-recurring basis | $ | — | $ | — | $ | 531 | $ | 531 | ||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 16 | $ | 16 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 16 | $ | 16 | ||||||||
Assets and Liabilities Measured at Fair Value on a | ||||||||||||||||
Non-Recurring Basis During the Year ended December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Assets held for sale | $ | — | $ | — | $ | 4,969 | $ | 4,969 | ||||||||
Total fair value of assets measured on a non-recurring basis | $ | — | $ | — | $ | 4,969 | $ | 4,969 | ||||||||
Liabilities: | ||||||||||||||||
Accrued restructuring costs | $ | — | $ | — | $ | 957 | $ | 957 | ||||||||
Total fair value of liabilities measured on a non-recurring basis | $ | — | $ | — | $ | 957 | $ | 957 | ||||||||
PROPERTY_PLANT_EQUIPMENT_Table
PROPERTY, PLANT & EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Schedule of Property, Plant and Equipment | ' | |||||||
Depreciation and amortization is computed using the straight-line method based on their estimated useful lives, as follows: | ||||||||
Estimated Useful Life | ||||||||
Buildings and building improvements | 15-30 years | |||||||
Telephone and computer equipment | 3-5 years | |||||||
Software | 3 years | |||||||
Furniture, fixtures, and miscellaneous equipment | 5-7 years | |||||||
Our property, plant and equipment as of December 31, 2013 and 2012, consisted of the following, by asset class: | ||||||||
2013 | 2012 | |||||||
Land | $ | 70 | $ | 272 | ||||
Buildings and improvements | 26,264 | 25,824 | ||||||
Telephone and computer equipment | 40,414 | 42,917 | ||||||
Software | 37,192 | 39,948 | ||||||
Furniture, fixtures, and miscellaneous equipment | 16,952 | 19,664 | ||||||
Construction in progress | 1,222 | 2,603 | ||||||
122,114 | 131,228 | |||||||
Less accumulated depreciation | (99,904 | ) | (104,918 | ) | ||||
Total property, plant and equipment, net | $ | 22,210 | $ | 26,310 | ||||
SHAREBASED_COMPENSATION_AND_EM1
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Schedule of Stock Options Activity | ' | ||||||||
A summary of stock option activity under the Plan as of December 31, 2013, and changes during the year ended December 31, 2013 are presented below: | |||||||||
Shares | Weighted | Weighted-Average | |||||||
Average | Remaining | ||||||||
Exercise Price | Contractual Term (in years) | ||||||||
Outstanding as of January 1, 2013 | 1,789,127 | $ | 4 | ||||||
Granted | 762,763 | 4.82 | |||||||
Exercised | (38,577 | ) | 3.64 | ||||||
Forfeited | (208,230 | ) | 4.64 | ||||||
Expired | (6,000 | ) | 25.95 | ||||||
Outstanding as of December 31, 2013 | 2,299,083 | $ | 4.16 | 8.01 | |||||
Vested and exercisable as of December 31, 2013 | 1,167,772 | $ | 4.45 | 7.36 | |||||
Vested and expected to vest as of December 31, 2013 | 2,089,628 | $ | 4.17 | 8.05 | |||||
Schedule of Stock Options, Valuation Assumptions | ' | ||||||||
The assumptions used to determine the value of our stock-based awards under the Black-Scholes method are summarized below: | |||||||||
2013 | 2012 | ||||||||
Risk-free interest rate | 0.36% - 2.7% | 0.37% - 1.6% | |||||||
Dividend yield | —% | —% | |||||||
Expected volatility | 56.5% - 67.6% | 56.8% - 77.9% | |||||||
Average expected life in years | 7 | 5 | |||||||
Schedule of Restricted Stock and Restricted Stock Units Award Activity | ' | ||||||||
A summary of restricted stock awards and deferred stock units activity under the Plan as of December 31, 2013, and changes during the year then ended are presented below: | |||||||||
Number of | Weighted-Average | ||||||||
Restricted Shares and Units | Grant Date Fair Value | ||||||||
Nonvested balance as of January 1, 2013 | 13,656 | $ | 4.08 | ||||||
Vested | (9,255 | ) | 4.41 | ||||||
Forfeited | (1,067 | ) | 6.58 | ||||||
Nonvested balance as of December 31, 2013 | 3,334 | $ | 2.35 | ||||||
Schedule of Employee Stock Purchase Plan, Valuation Assumptions | ' | ||||||||
The assumptions used to value the shares under the ESPP using the Black-Scholes method were as follows: | |||||||||
2013 | 2012 | ||||||||
Risk-free interest rate | 0.02% - 0.07% | 0.02% - 0.10% | |||||||
Dividend yield | —% | —% | |||||||
Expected volatility | 24.2% - 64.7% | 48.9% - 93.1% | |||||||
Expected life in years | 3 months | 3 months |
INTEREST_AND_OTHER_INCOME_EXPE1
INTEREST AND OTHER INCOME (EXPENSE), NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Income and Expenses [Abstract] | ' | |||||||
Schedule of Net Interest and Other Income | ' | |||||||
Interest and other income (expense), net for the years ended December 31, 2013 and 2012 were composed of the following: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Interest income | $ | 88 | $ | 86 | ||||
Interest (expense) | (114 | ) | (78 | ) | ||||
Gain (loss) on disposal of assets | (1,549 | ) | 45 | |||||
Other income (expense) | (4 | ) | 289 | |||||
Interest and other income (expense), net | $ | (1,579 | ) | $ | 342 | |||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Income before Income Taxes | ' | |||||||
The domestic and foreign source component of income (loss) from continuing operations before income taxes was: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
U.S. | $ | (15,452 | ) | $ | (21,244 | ) | ||
Foreign | 9,276 | 10,872 | ||||||
Total | $ | (6,176 | ) | $ | (10,372 | ) | ||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||
Significant components of the provision for income taxes from continuing operations were: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Current: | ||||||||
Federal | $ | — | $ | (548 | ) | |||
State | — | (77 | ) | |||||
Foreign | (29 | ) | 499 | |||||
Total current (benefit) | $ | (29 | ) | $ | (126 | ) | ||
Deferred: | ||||||||
Federal | $ | 25 | $ | (10 | ) | |||
State | 2 | (1 | ) | |||||
Foreign | 232 | 253 | ||||||
Total deferred expense | $ | 259 | $ | 242 | ||||
Income tax expense | $ | 230 | $ | 116 | ||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||
Significant components of deferred tax assets and deferred tax liabilities included in the accompanying consolidated balance sheets as of December 31, 2013 and 2012 were: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Current deferred tax assets (liabilities): | ||||||||
Accrued restructuring costs | $ | (41 | ) | $ | 218 | |||
Other accrued liabilities | 15 | 90 | ||||||
Derivative instruments | 816 | (176 | ) | |||||
Prepaid expenses | (209 | ) | (480 | ) | ||||
Cumulative translation adjustment | (1,397 | ) | (1,760 | ) | ||||
Other | 373 | 438 | ||||||
Total current net deferred tax liabilities | $ | (443 | ) | $ | (1,670 | ) | ||
Long-term deferred tax assets (liabilities): | ||||||||
Fixed assets | $ | 2,969 | $ | 3,385 | ||||
Accrued stock compensation | 3,085 | 2,556 | ||||||
Accrued restructuring costs | 47 | 89 | ||||||
Foreign tax credit carryforward | — | 525 | ||||||
Work opportunity credit carryforward | 4,988 | 4,988 | ||||||
Operating loss carryforward | 10,653 | 8,443 | ||||||
Intangibles and goodwill | 22 | — | ||||||
Other | 221 | 114 | ||||||
Total long-term net deferred tax assets | $ | 21,985 | $ | 20,100 | ||||
Subtotal | $ | 21,542 | $ | 18,430 | ||||
Valuation allowance | (20,000 | ) | (16,602 | ) | ||||
Total net deferred tax asset | $ | 1,542 | $ | 1,828 | ||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||
Differences between U.S. federal statutory income tax rates and our effective tax rates for the years ended December 31, 2013 and 2012 for continuing operations were: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
U.S. statutory tax rate | 35 | % | 35 | % | ||||
Effect of state taxes (net of federal benefit) | -1 | % | 5.8 | % | ||||
Effect of change in Canadian tax rate | 1.5 | % | -0.3 | % | ||||
Other permanent differences (including meals and entertainment) | 1.8 | % | -0.4 | % | ||||
Stock based compensation | -0.9 | % | -0.8 | % | ||||
Rate differential on foreign earnings | 48.5 | % | 29.5 | % | ||||
Foreign income taxed in the U.S. | -95 | % | -43.2 | % | ||||
Uncertain tax positions | 19.5 | % | -45.4 | % | ||||
Unremitted foreign earnings of subsidiary | 27.7 | % | -16.5 | % | ||||
Tax expense allocation to other comprehensive income | — | % | 6.1 | % | ||||
Valuation allowance | -33.5 | % | 28 | % | ||||
Expiration of foreign tax credit carryforward | -8.5 | % | — | % | ||||
Other, net | 1.1 | % | 1.1 | % | ||||
Total | -3.8 | % | -1.1 | % | ||||
Schedule of Unrecognized Tax Benefits Roll Forward | ' | |||||||
The following table indicates the changes to our unrecognized tax benefits for the years ended December 31, 2013 and 2012. The term “unrecognized tax benefits” in the accounting standards for income taxes refers to the differences between a tax position taken or expected to be taken in a tax return and the benefit measured and recognized in the financial statements. If recognized, all of these benefits would impact our income tax expense, before consideration of any related valuation allowance. | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Unrecognized, January 1, | $ | 4,705 | $ | — | ||||
Additions based on tax positions taken in current year | 1,090 | 4,705 | ||||||
Reductions based on tax positions taken in prior year | (2,293 | ) | — | |||||
Unrecognized, December 31, | $ | 3,502 | $ | 4,705 | ||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||
Schedule of Comprehensive Income (Loss) | ' | |||||||||||
Accumulated other comprehensive income (loss) consisted of the following items: | ||||||||||||
Foreign Currency Translation Adjustment | Derivatives Accounted for as Cash Flow Hedges | Total | ||||||||||
Balance at January 1, 2012 | $ | 2,385 | $ | (883 | ) | $ | 1,502 | |||||
Foreign currency translation | 670 | — | 670 | |||||||||
Reclassification to operations | — | (758 | ) | (758 | ) | |||||||
Unrealized gains (losses) | — | 1,749 | 1,749 | |||||||||
Tax (benefit) | (257 | ) | (377 | ) | (634 | ) | ||||||
Balance at December 31, 2012 | $ | 2,798 | $ | (269 | ) | $ | 2,529 | |||||
Foreign currency translation | (898 | ) | — | (898 | ) | |||||||
Reclassification to operations | — | 1,950 | 1,950 | |||||||||
Unrealized gains (losses) | — | (4,590 | ) | (4,590 | ) | |||||||
Balance at December 31, 2013 | $ | 1,900 | $ | (2,909 | ) | $ | (1,009 | ) | ||||
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||
Reclassifications out of accumulated other comprehensive income for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(Gains) losses on cash flow hedges | ||||||||||||
Foreign exchange contracts | $ | 1,828 | $ | (758 | ) | Cost of services | ||||||
Foreign exchange contracts | 122 | — | Selling, general and administrative expenses | |||||||||
$ | 1,950 | $ | (758 | ) | ||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||
As of December 31, 2013, approximate minimum annual rentals under operating leases and approximate minimum payments to be received under annual non-cancelable subleases and leases were as follows. | ||||||||
Minimum Lease | Minimum | |||||||
Payments | Sublease/Lease Receivable | |||||||
2014 | $ | 10,103 | $ | 306 | ||||
2015 | 7,392 | — | ||||||
2016 | 5,818 | — | ||||||
2017 | 5,794 | — | ||||||
2018 | 4,370 | — | ||||||
Thereafter | 1,052 | — | ||||||
Total minimum lease payments | $ | 34,529 | $ | 306 | ||||
Schedule of Future Minimum Lease Payments for Capital Leases | ' | |||||||
As of December 31, 2013, approximate minimum annual rentals under capital leases were as follows. | ||||||||
Minimum Lease Payments | ||||||||
2014 | $ | 371 | ||||||
2015 | 370 | |||||||
2016 | 377 | |||||||
2017 | 384 | |||||||
2018 | 392 | |||||||
Thereafter | 808 | |||||||
Total minimum lease payments | $ | 2,702 | ||||||
Less amount representing interest | (1,280 | ) | ||||||
Present value of obligations under capital leases | 1,422 | |||||||
Less current portion of obligations under capital leases | (113 | ) | ||||||
Obligations under capital leases, excluding current portion | $ | 1,309 | ||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||
Information about our reportable segments, which correspond to the geographic areas in which we operate, for the years ended December 31, 2013 and 2012 is as follows: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
Revenue: | ||||||||
Domestic | $ | 120,928 | $ | 99,827 | ||||
Asia Pacific | 81,082 | 79,683 | ||||||
Latin America | 29,247 | 18,582 | ||||||
Total | $ | 231,257 | $ | 198,092 | ||||
Gross profit: | ||||||||
Domestic | $ | 13,291 | $ | 7,396 | ||||
Asia Pacific | 9,974 | 16,476 | ||||||
Latin America | 1,060 | (875 | ) | |||||
Total | $ | 24,325 | $ | 22,997 | ||||
Depreciation: | ||||||||
Domestic | $ | 7,340 | $ | 7,450 | ||||
Asia Pacific | 4,193 | 4,659 | ||||||
Latin America | 994 | 848 | ||||||
Total | $ | 12,527 | $ | 12,957 | ||||
Capital expenditures: | ||||||||
Domestic | $ | 5,555 | $ | 4,757 | ||||
Asia Pacific | 1,254 | 1,728 | ||||||
Latin America | 2,034 | 820 | ||||||
Total | $ | 8,843 | $ | 7,305 | ||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Total assets: | ||||||||
Domestic | $ | 76,224 | $ | 77,032 | ||||
Asia Pacific | 10,520 | 12,779 | ||||||
Latin America | 2,973 | 3,321 | ||||||
Total | $ | 89,717 | $ | 93,132 | ||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | ' | |||||||
The following tables present certain financial data based upon the geographic location where the services are provided: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Revenue: | ||||||||
United States | $ | 95,333 | $ | 69,403 | ||||
Canada | 25,595 | 30,424 | ||||||
Philippines | 81,082 | 79,683 | ||||||
Latin America | 29,247 | 18,582 | ||||||
Total | $ | 231,257 | $ | 198,092 | ||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Total property, plant and equipment, net: | ||||||||
United States | $ | 12,875 | $ | 13,549 | ||||
Canada | 96 | 420 | ||||||
Philippines | 7,050 | 9,921 | ||||||
Latin America | 2,189 | 2,420 | ||||||
Total | $ | 22,210 | $ | 26,310 | ||||
BASIS_OF_PRESENTATION_AND_SUMM3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property, Plant & Equipment (Details) | 12 Months Ended |
Dec. 31, 2013 | |
segment | |
Property, Plant and Equipment [Line Items] | ' |
Number of segments | 3 |
Building and Building Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '15 years |
Building and Building Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '30 years |
Telephone and Computer Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '3 years |
Telephone and Computer Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '5 years |
Software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '3 years |
Furniture, Fixtures and Miscellaneous Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '5 years |
Furniture, Fixtures and Miscellaneous Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '7 years |
BASIS_OF_PRESENTATION_AND_SUMM4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangibles (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Developed technology | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, useful life | '8 years |
Customer base and customer relationships | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, useful life | '3 years |
Trade name | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, useful life | '6 years |
Noncompete agreement | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, useful life | '2 years |
BASIS_OF_PRESENTATION_AND_SUMM5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents (Details) (USD $) | Dec. 31, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Restricted cash | $456 |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Mar. 18, 2013 | Jul. 24, 2013 | Dec. 31, 2013 | Mar. 18, 2013 | Dec. 31, 2013 | Mar. 18, 2013 | Dec. 31, 2013 | Jul. 24, 2013 | Dec. 31, 2013 | Mar. 18, 2013 | Dec. 31, 2013 | Mar. 18, 2013 |
Ideal Dialogue Company [Member] | RN's On Call [Member] | Developed technology | Developed technology | Customer base and customer relationships | Customer base and customer relationships | Customer base and customer relationships | Customer base and customer relationships | Trade name | Trade name | Noncompete agreement | Noncompete agreement | ||
Ideal Dialogue Company [Member] | Ideal Dialogue Company [Member] | RN's On Call [Member] | RN's On Call [Member] | Ideal Dialogue Company [Member] | Ideal Dialogue Company [Member] | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' | ' | 390 | ' | 130 | ' | 750 | ' | 70 | ' | 10 |
Goodwill | ' | 887 | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | 597 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price | ' | $1,500 | $1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer relationships, estimated useful life | ' | ' | ' | '8 years | ' | '3 years | ' | '3 years | ' | '6 years | ' | '2 years | ' |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Goodwill | $1,637 | $0 |
Gross Intangibles | ' | 1,350 |
Accumulated Amortization | 186 | ' |
Net Intangibles | 1,164 | 0 |
Weighted Average Amortization Period (years) | '3 years 6 months 7 days | ' |
2014 | 359 | ' |
2015 | 355 | ' |
2016 | 217 | ' |
2017 | 60 | ' |
2018 | 60 | ' |
Thereafter | 113 | ' |
Developed technology | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Intangibles | ' | 390 |
Accumulated Amortization | 37 | ' |
Net Intangibles | 353 | ' |
Weighted Average Amortization Period (years) | '4 years 1 month 21 days | ' |
Customer relationships | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Intangibles | ' | 880 |
Accumulated Amortization | 137 | ' |
Net Intangibles | 744 | ' |
Weighted Average Amortization Period (years) | '1 year 8 months 1 day | ' |
Trade name | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Intangibles | ' | 70 |
Accumulated Amortization | 9 | ' |
Net Intangibles | 61 | ' |
Weighted Average Amortization Period (years) | '3 years 1 month 21 days | ' |
Noncompete agreement | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Intangibles | ' | 10 |
Accumulated Amortization | 4 | ' |
Net Intangibles | $6 | ' |
Weighted Average Amortization Period (years) | '1 year 2 months 12 days | ' |
IMPAIRMENT_LOSSES_AND_RESTRUCT2
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES (Textuals) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Domestic [Member] | Laramie, Wyoming [Member] | Enid, Oklahoma [Member] | Grand Junction [Member] | Operating Segments [Member] | Property, Plant and Equipment, Other Types [Member] | Property, Plant and Equipment, Other Types [Member] | |||
Domestic [Member] | Domestic [Member] | Domestic [Member] | |||||||
facility | |||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets | $531 | $3,086 | ' | ' | ' | ' | ' | $531 | $3,086 |
Number of facilities impaired | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Number of facilities, secured with new business | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Loss on disposal of IT assets | 966 | ' | ' | ' | ' | ' | ' | ' | ' |
Accelerated depreciation on IT assets | 637 | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation expense on reclassified assets | ' | ' | ' | 151 | 271 | ' | ' | ' | ' |
Accrual adjustment of restructuring reserve | ' | ' | ' | 20 | ' | 138 | ' | ' | ' |
Facility related costs paid | ' | ' | $9,870 | ' | ' | ' | ' | ' | ' |
IMPAIRMENT_LOSSES_AND_RESTRUCT3
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES Summary of Activity, Restructuring Plans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Laramie [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Reclassification of liability | $20 | ' |
Grand Junction [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Reclassification of liability | 138 | ' |
Facility Related Costs [Member] | Victoria [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Balance | 537 | 483 |
Expense (reversal) | -443 | 0 |
Payments for restructuring, net of expected sublease rentals | -78 | 54 |
Balance | 16 | 537 |
Facility Related Costs [Member] | Laramie [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Balance | 0 | 63 |
Expense (reversal) | 0 | -20 |
Payments for restructuring, net of expected sublease rentals | 0 | -43 |
Balance | 0 | 0 |
Facility Related Costs [Member] | Grand Junction [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Balance | 0 | 252 |
Expense (reversal) | 0 | -138 |
Payments for restructuring, net of expected sublease rentals | 0 | -114 |
Balance | 0 | 0 |
Facility Related Costs [Member] | Decatur [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Balance | 86 | 0 |
Expense (reversal) | -56 | 464 |
Payments for restructuring, net of expected sublease rentals | -30 | -378 |
Balance | 0 | 86 |
Facility Related Costs [Member] | Regina [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Balance | 334 | 852 |
Expense (reversal) | 0 | 671 |
Payments for restructuring, net of expected sublease rentals | -328 | -1,197 |
Foreign currency translation adjustment | -6 | 8 |
Balance | 0 | 334 |
Facility Related Costs [Member] | Domestic [Member] | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' |
Balance | 957 | 1,650 |
Expense (reversal) | -499 | 977 |
Payments for restructuring, net of expected sublease rentals | -436 | -1,678 |
Foreign currency translation adjustment | -6 | 8 |
Balance | $16 | $957 |
IMPAIRMENT_LOSSES_AND_RESTRUCT4
IMPAIRMENT LOSSES AND RESTRUCTURING CHARGES Notes Receivable (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Note receivable, interest rate | 4.40% |
Notes Receivable [Member] | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Note receivable | 645 |
Note receivable, unearned income | 18 |
NET_LOSS_PER_SHARE_Details
NET LOSS PER SHARE (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 2,302,417 | 1,803,199 |
PRINCIPAL_CLIENTS_Major_Custom
PRINCIPAL CLIENTS (Major Customer) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T Inc. [Member] | ' | ' | ||
Revenue, Major Customer [Line Items] | ' | ' | ||
Revenue | $58,395 | [1] | $63,904 | [1] |
Revenue concentration, percentage | 25.30% | [1] | 32.30% | [1] |
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom [Member] | ' | ' | ||
Revenue, Major Customer [Line Items] | ' | ' | ||
Revenue | 64,095 | [2] | 55,916 | [2] |
Revenue concentration, percentage | 27.70% | [2] | 28.20% | [2] |
Comcast Cable Communications Management LLC, subsidiary of Comcast Corporation [Member] | ' | ' | ||
Revenue, Major Customer [Line Items] | ' | ' | ||
Revenue | $45,887 | [2] | ' | |
Revenue concentration, percentage | 19.80% | [2] | ' | |
[1] | Revenue from this customer is generated through our Domestic and Asia Pacific segments. | |||
[2] | Revenue from this customer is generated through our Domestic, Asia Pacific and Latin America segments. |
PRINCIPAL_CLIENTS_Textual_Deta
PRINCIPAL CLIENTS (Textual) (Details) | 12 Months Ended | 6 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | |
T Mobile Usa Inc Subsidiary Of Deutsche Telekom [Member] | Comcast Cable Communications Management LLC, subsidiary of Comcast Corporation [Member] | |
Revenue, Major Customer [Line Items] | ' | ' |
Initial term of the Master Service Agreement | '5 years | '1 year |
Master Services Agreement renewal term | '1 year | '1 year |
Notice of termination option of the initial term | '90 days | '90 days |
DERIVATIVE_INSTRUMENTS_Textual
DERIVATIVE INSTRUMENTS (Textual) (Details) (Foreign Exchange Contract [Member]) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
CAD | PHP | Canada [Member] | Canada [Member] | Canada [Member] | Philippines [Member] | Philippines [Member] | Philippines [Member] | Minimum [Member] | Maximum [Member] | |
CAD | CAD | USD ($) | PHP | PHP | USD ($) | |||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract period | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | '9 months |
Contracts acquired, notional amount | ' | ' | 10,860 | 18,640 | ' | 2,515,110 | 3,013,540 | ' | ' | ' |
Derivative, notional amount | 10,860 | 1,511,910 | ' | ' | $10,448 | ' | ' | $35,948 | ' | ' |
Reclassification period of unrealized gains and losses from AOCI to earnings | '12 months | '12 months | ' | ' | ' | ' | ' | ' | ' | ' |
DERIVATIVE_INSTRUMENTS_Fair_Va
DERIVATIVE INSTRUMENTS (Fair Value of Derivative Instruments and Effect in AOCI) (Details) (Foreign Exchange Contract [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign Exchange Contract [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | $0 | $733 |
Derivative liabilities | 2,160 | 253 |
Gain (Loss) Recognized in AOCI, net of tax | -4,590 | 1,749 |
Gain (Loss) Reclassified from AOCI into Income | ($1,950) | $758 |
FAIR_VALUE_MEASUREMENTS_Recurr
FAIR VALUE MEASUREMENTS (Recurring and Nonrecurring) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Liabilities, Foreign exchange contracts | $2,160 | $253 |
Recurring [Member] | ' | ' |
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Assets, Foreign exchange contracts | ' | 733 |
Total fair value of assets measured on a recurring basis | ' | 733 |
Liabilities, Foreign exchange contracts | 2,160 | 253 |
Total fair value of liabilities measured on a recurring basis | 2,160 | 253 |
Nonrecurring [Member] | ' | ' |
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ' | ' |
Property, plant and equipment, net | 531 | ' |
Total fair value of assets measured on a non-recurring basis | 531 | 4,969 |
Assets held for sale | ' | 4,969 |
Accrued restructuring costs | 16 | 957 |
Total fair value of liabilities measured on a non-recurring basis | 16 | 957 |
Level 1 [Member] | Recurring [Member] | ' | ' |
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Assets, Foreign exchange contracts | ' | 0 |
Total fair value of assets measured on a recurring basis | ' | 0 |
Liabilities, Foreign exchange contracts | 0 | 0 |
Total fair value of liabilities measured on a recurring basis | 0 | 0 |
Level 1 [Member] | Nonrecurring [Member] | ' | ' |
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ' | ' |
Property, plant and equipment, net | 0 | ' |
Total fair value of assets measured on a non-recurring basis | 0 | 0 |
Assets held for sale | ' | 0 |
Accrued restructuring costs | 0 | 0 |
Total fair value of liabilities measured on a non-recurring basis | 0 | 0 |
Level 2 [Member] | Recurring [Member] | ' | ' |
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Assets, Foreign exchange contracts | ' | 733 |
Total fair value of assets measured on a recurring basis | ' | 733 |
Liabilities, Foreign exchange contracts | 2,160 | 253 |
Total fair value of liabilities measured on a recurring basis | 2,160 | 253 |
Level 2 [Member] | Nonrecurring [Member] | ' | ' |
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ' | ' |
Property, plant and equipment, net | 0 | ' |
Total fair value of assets measured on a non-recurring basis | 0 | 0 |
Assets held for sale | ' | 0 |
Accrued restructuring costs | 0 | 0 |
Total fair value of liabilities measured on a non-recurring basis | 0 | 0 |
Level 3 [Member] | Recurring [Member] | ' | ' |
Assets and Liabilities at Fair Value Measured on Recurring Basis | ' | ' |
Assets, Foreign exchange contracts | ' | 0 |
Total fair value of assets measured on a recurring basis | ' | 0 |
Liabilities, Foreign exchange contracts | 0 | 0 |
Total fair value of liabilities measured on a recurring basis | 0 | 0 |
Level 3 [Member] | Nonrecurring [Member] | ' | ' |
Assets and Liabilities at Fair Value on a Nonrecurring Basis | ' | ' |
Property, plant and equipment, net | 531 | ' |
Total fair value of assets measured on a non-recurring basis | 531 | 4,969 |
Assets held for sale | ' | 4,969 |
Accrued restructuring costs | 16 | 957 |
Total fair value of liabilities measured on a non-recurring basis | $16 | $957 |
FAIR_VALUE_MEASUREMENTS_Textua
FAIR VALUE MEASUREMENTS (Textuals) (Details) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Laramie, Wyoming and Greeley, Colorado [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Fair value of assets held for sale | $4,102 |
Enid, Oklahoma [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Fair value of assets held for sale | $867 |
PROPERTY_PLANT_EQUIPMENT_Detai
PROPERTY, PLANT & EQUIPMENT (Details) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Land [Member] | Land [Member] | Building and Building Improvements [Member] | Building and Building Improvements [Member] | Telephone and Computer Equipment [Member] | Telephone and Computer Equipment [Member] | Software [Member] | Software [Member] | Furniture, Fixtures and Miscellaneous Equipment [Member] | Furniture, Fixtures and Miscellaneous Equipment [Member] | Construction in Progress [Member] | Construction in Progress [Member] | Greeley North [Member] | Greeley West [Member] | Greeley, Colorado [Member] | Kingston, Ontario [Member] | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | $122,114 | $131,228 | $70 | $272 | $26,264 | $25,824 | $40,414 | $42,917 | $37,192 | $39,948 | $16,952 | $19,664 | $1,222 | $2,603 | ' | ' | ' | ' |
Less accumulated depreciation | -99,904 | -104,918 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property, plant and equipment, net | 22,210 | 26,310 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of property held for sale and sale leaseback | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,731 | ' |
Fair market value of assets under capital lease | 1,413 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,413 | ' | ' | ' |
Loss on sale leaseback transaction | 475 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 475 | ' | ' | ' |
Lease term/amortizaton period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | '3 years |
Loss on sale of asset held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 106 | ' | ' |
Proceeds from sale leaseback transactions, net of direct costs | 1,337 | 3,884 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,884 |
Deferred gain from sale leaseback transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $840 |
DEBT_Details
DEBT (Details) (Revolving Credit Facility [Member], Wells Fargo Bank [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ' |
Minimum borrowing capacity, upper limit | $10,000,000 |
Maximum borrowing capacity | 20,000,000 |
Increments for additional borrowing | 2,500,000 |
Letters of credit, maximum allowed | 5,000,000 |
Borrrowing base, as percentage of eligible accounts receivable less reserves | 85.00% |
Borrowings outstanding under revolving credit facility | 1,000,000 |
Remaining borrowing capacity | 13,920,000 |
Amount outstanding for undrawn letters of credit issued under revolving credit facility | $80,000 |
Description of variable rate basis | 'three-month LIBOR |
Line of credit facility, interest rate | 3.25% |
Line of credit facility, letters of credit fee percentage | 3.00% |
Monthly unused fee, rate per annum | 0.30% |
Minimum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 2.50% |
Maximum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 3.00% |
SHAREBASED_COMPENSATION_AND_EM2
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Textuals (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | 5-May-08 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | 7-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Restricted Stock and Restricted Stock Units (RSUs) [Member] | Restricted Stock and Restricted Stock Units (RSUs) [Member] | Stock Options [Member] | Restricted Stock [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Maximum [Member] | Minimum [Member] | First 3% [Member] | Next 2% [Member] | Director [Member] | ||||
Stock Awards Activity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares reserved for issuance under stock plans | ' | ' | 900,000 | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future grants | 129,961 | ' | 274,298 | ' | ' | ' | ' | ' | 107,475 | ' | ' | ' | ' | ' | ' | ' | ' |
Term of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Award vesting period for an award not subject to performance measures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Performance period for an award subject to performance measures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' |
Fair value equivalent of stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $22,500 |
Grant date fair value of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,500 |
Fair value of deferred stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,500 |
Weighted-average grant date fair value of options granted | $3.44 | $1.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of stock options vested | 965,000 | 1,153,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of restricted stock awards | ' | ' | ' | 41,000 | 251,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | 26,000 | 35,000 | 1,607,000 | 1,275,000 | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | ' | ' | ' | ' | ' | 1,940,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period that cost is expected to be recognized | ' | ' | ' | ' | ' | '2 years 1 month 6 days | '9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of base pay that a participating employee may elect | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price as percentage of lower of closing price on first or last trading day of offering period | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional shares authorized | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares purchased under the ESPP | ' | ' | ' | ' | ' | ' | ' | ' | 24,404 | 50,317 | ' | ' | ' | ' | ' | ' | ' |
Weighted average purchase price (in usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | $3.97 | $2.05 | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value (in usd per share) | ' | ' | ' | $2.35 | $4.08 | ' | ' | ' | $1.07 | $0.70 | ' | ' | ' | ' | ' | ' | ' |
Required service period for participants to receive a matching contribution | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of employee contribution matched, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 50.00% | ' |
Employer matching contribution, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 2.00% | ' |
Company matching contributions to the 401(k) | $288,000 | $320,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_AND_EM3
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Stock Options Activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Options Outstanding [Roll Forward] | ' |
Outstanding as of January 1, 2013 | 1,789,127 |
Granted | 762,763 |
Exercised | -38,577 |
Forfeited | -208,230 |
Expired | -6,000 |
Outstanding as of December 31, 2013 | 2,299,083 |
Options Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Oustanding (in usd per share) | $4 |
Granted (in usd per share) | $4.82 |
Exercised (in usd per share) | $3.64 |
Forfeited (in usd per share) | $4.64 |
Expired (in usd per share) | $25.95 |
Outstanding (in usd per share) | $4.16 |
Options, Additional Disclosures | ' |
Vested and exercisable | 1,167,772 |
Vested and exercisable (in usd per share) | $4.45 |
Outstanding, Weighted-Average Remaining Contractual Term | '8 years 4 days |
Vested and exercisable, Weighted-Average Remaining Contractual Term | '7 years 4 months 10 days |
Options, Vested and Expected to Vest | ' |
Vested and expected to vest | 2,089,628 |
Vested and expected to vest (in usd per share) | $4.17 |
Vested and expected to vest, Weighted-Average Remaining Contactual Term | '8 years 18 days |
SHAREBASED_COMPENSATION_AND_EM4
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Restricted Stock Awards and Deferred Stock Units Activity) (Details) (Restricted Stock and Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock and Restricted Stock Units (RSUs) [Member] | ' |
Restricted Stock Awards Outstanding [Roll Forward] | ' |
Nonvested balance as of January 1, 2013 | 13,656 |
Vested | -9,255 |
Forfeited | -1,067 |
Nonvested balance as of December 31, 2013 | 3,334 |
Restricted Stock Awards, Weighted-Average Grant Date Fair Value [Roll Forward] | ' |
Nonvested (in usd per share) | $4.08 |
Vested (in usd per share) | $4.41 |
Forfeited (in usd per share) | $6.58 |
Nonvested (in usd per share) | $2.35 |
SHAREBASED_COMPENSATION_AND_EM5
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Options, Valuation Assumptions) (Details) (Stock Options [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation Assumptions [Line Items] | ' | ' |
Dividend yield | 0.00% | 0.00% |
Average expected life in years | '7 years | '5 years |
Minimum [Member] | ' | ' |
Valuation Assumptions [Line Items] | ' | ' |
Risk-free interest rate | 0.36% | 0.37% |
Expected volatility | 56.50% | 56.80% |
Maximum [Member] | ' | ' |
Valuation Assumptions [Line Items] | ' | ' |
Risk-free interest rate | 2.70% | 1.60% |
Expected volatility | 67.60% | 77.90% |
SHAREBASED_COMPENSATION_AND_EM6
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (ESPP, Valuation Assumptions) (Details) (Employee Stock Purchase Plan [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation Assumptions [Line Items] | ' | ' |
Dividend yield | 0.00% | 0.00% |
Expected life in years | '3 months | '3 months |
Minimum [Member] | ' | ' |
Valuation Assumptions [Line Items] | ' | ' |
Risk-free interest rate | 0.02% | 0.02% |
Expected volatility | 24.20% | 48.90% |
Maximum [Member] | ' | ' |
Valuation Assumptions [Line Items] | ' | ' |
Risk-free interest rate | 0.07% | 0.10% |
Expected volatility | 64.70% | 93.10% |
INTEREST_AND_OTHER_INCOME_EXPE2
INTEREST AND OTHER INCOME (EXPENSE), NET (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | ' | ' |
Interest income | $88 | $86 |
Interest (expense) | -114 | -78 |
Gain (loss) on disposal of assets | -1,549 | 45 |
Other income (expense) | -4 | 289 |
Interest and other income (expense), net | ($1,579) | $342 |
INCOME_TAXES_Income_Before_Inc
INCOME TAXES (Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
U.S. | ($15,452) | ($21,244) |
Foreign | 9,276 | 10,872 |
Loss before income taxes | ($6,176) | ($10,372) |
INCOME_TAXES_Components_of_Inc
INCOME TAXES (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | ' | ' |
Federal | $0 | ($548) |
State | 0 | -77 |
Foreign | -29 | 499 |
Total current (benefit) | -29 | -126 |
Deferred: | ' | ' |
Federal | 25 | -10 |
State | 2 | -1 |
Foreign | 232 | 253 |
Total deferred expense | 259 | 242 |
Income tax expense | $230 | $116 |
INCOME_TAXES_Deferred_Tax_Asse
INCOME TAXES (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets (liabilities): | ' | ' |
Accrued restructuring costs | ($41) | $218 |
Other accrued liabilities | 15 | 90 |
Derivative instruments | 816 | -176 |
Prepaid expenses | -209 | -480 |
Cumulative translation adjustment | -1,397 | -1,760 |
Other | 373 | 438 |
Total current net deferred tax liabilities | -443 | -1,670 |
Long-term deferred tax assets (liabilities): | ' | ' |
Fixed assets | 2,969 | 3,385 |
Accrued stock compensation | 3,085 | 2,556 |
Accrued restructuring costs | 47 | 89 |
Foreign tax credit carryforward | 0 | 525 |
Work opportunity credit carryforward | 4,988 | 4,988 |
Operating loss carryforward | 10,653 | 8,443 |
Intangibles and goodwill | 22 | 0 |
Other | 221 | 114 |
Total long-term net deferred tax assets | 21,985 | 20,100 |
Subtotal | 21,542 | 18,430 |
Valuation allowance | -20,000 | -16,602 |
Total net deferred tax asset | $1,542 | $1,828 |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of Tax Rates) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate Reconciliation [Line Items] | ' | ' |
U.S. statutory tax rate | 35.00% | 35.00% |
Effect of state taxes (net of federal benefit) | -1.00% | 5.80% |
Effect of change in Canadian tax rate | 1.50% | -0.30% |
Other permanent differences (including meals and entertainment) | 1.80% | -0.40% |
Stock based compensation | -0.90% | -0.80% |
Rate differential on foreign earnings | 48.50% | 29.50% |
Foreign income taxed in the U.S. | -95.00% | -43.20% |
Uncertain tax positions | 19.50% | -45.40% |
Unremitted foreign earnings of subsidiary | 27.70% | -16.50% |
Tax expense allocation to other comprehensive income | 0.00% | 6.10% |
Valuation allowance | -33.50% | 28.00% |
Expiration of foreign tax credit carryforward | -8.50% | 0.00% |
Other, net | 1.10% | 1.10% |
Total | -3.80% | -1.10% |
INCOME_TAXES_Uncertain_Income_
INCOME TAXES (Uncertain Income Tax Positions) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Unrecognized Tax Benefits [Roll Forward] | ' | ' |
Unrecognized, January 1, | $4,705 | $0 |
Additions based on tax positions taken in current year | 1,090 | 4,705 |
Reductions based on tax positions taken in prior year | -2,293 | 0 |
Unrecognized, December 31, | $3,502 | $4,705 |
INCOME_TAXES_Textuals_Details
INCOME TAXES (Textuals) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' |
Unremitted earnings of foreign subsidiaries | $1,300 | $244 |
Deferred tax liability not recognized on undistributed earnings of foreign subsidiaries | 455 | ' |
Aggregate reduction in income tax expense | 2,620 | 2,383 |
Impact of reduction in income tax expense on earnings per share (in usd per share) | $0.17 | $0.16 |
Federal [Member] | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' |
Net operating loss carryforwards | 34,560 | ' |
State [Member] | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' |
Net operating loss carryforwards | $60,435 | ' |
Philippines [Member] | Foreign [Member] | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' |
Income tax rate | 5.00% | ' |
Costa Rica [Member] | Through 2018 [Member] | Foreign [Member] | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' |
Tax exemption rate | 100.00% | ' |
Costa Rica [Member] | Four Years Thereafter [Member] | Foreign [Member] | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ' | ' |
Tax exemption rate | 50.00% | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' |
Foreign Currency Translation Adjustment - Beginning balance | $2,798 | $2,385 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments - Beginning balance | -269 | -883 |
Total - Beginning balance | 2,529 | 1,502 |
Foreign currency translation | -898 | 670 |
Reclassification to operations | 1,950 | -758 |
Unrealized gains (losses) | -4,590 | 1,749 |
Foreign Currency Translation Adjustment - Tax (provision) benefit | ' | -257 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments - Tax (provision) benefit | ' | -377 |
Total - Tax (provision) benefit | ' | -634 |
Foreign Currency Translation Adjustment - Ending balance | 1,900 | 2,798 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments - Ending balance | -2,909 | -269 |
Total - Ending balance | -1,009 | 2,529 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Cost of services | 206,932 | 175,095 |
Selling, general and administrative expenses | 28,828 | 29,645 |
Foreign Exchange Contract [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Cost of services | 1,828 | -758 |
Selling, general and administrative expenses | $122 | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Operating Lease) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Rental expense, including equipment rentals | $9,691 | $9,153 |
Minimum Lease Payments | ' | ' |
2014 | 10,103 | ' |
2015 | 7,392 | ' |
2016 | 5,818 | ' |
2017 | 5,794 | ' |
2018 | 4,370 | ' |
Thereafter | 1,052 | ' |
Total minimum lease payments | 34,529 | ' |
Minimum Sublease/Lease Receivable | ' | ' |
2014 | 306 | ' |
2015 | 0 | ' |
2016 | 0 | ' |
2017 | 0 | ' |
2018 | 0 | ' |
Thereafter | 0 | ' |
Total minimum lease payments | $306 | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Capital Lease) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $371 |
2015 | 370 |
2016 | 377 |
2017 | 384 |
2018 | 392 |
Thereafter | 808 |
Total minimum lease payments | 2,702 |
Less amount representing interest | -1,280 |
Present value of obligations under capital leases | 1,422 |
Less current portion of obligations under capital leases | -113 |
Obligations under capital leases, excluding current portion | $1,309 |
SEGMENT_INFORMATION_Textual_De
SEGMENT INFORMATION (Textual) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
facility | |
U.S. [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating segments | 7 |
Canada [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating segments | 1 |
Philippines [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating segments | 3 |
Costa Rica [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating segments | 1 |
Honduras [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Number of operating segments | 1 |
SEGMENT_INFORMATION_Segment_Re
SEGMENT INFORMATION (Segment Reporting) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | $231,257 | $198,092 |
Gross profit | 24,325 | 22,997 |
Depreciation | 12,527 | 12,957 |
Capital expenditures | 8,843 | 7,305 |
Total assets | 89,717 | 93,132 |
Domestic [Member] | Reportable Geographical Components [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 120,928 | 99,827 |
Gross profit | 13,291 | 7,396 |
Depreciation | 7,340 | 7,450 |
Capital expenditures | 5,555 | 4,757 |
Total assets | 76,224 | 77,032 |
Asia Pacific [Member] | Reportable Geographical Components [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 81,082 | 79,683 |
Gross profit | 9,974 | 16,476 |
Depreciation | 4,193 | 4,659 |
Capital expenditures | 1,254 | 1,728 |
Total assets | 10,520 | 12,779 |
Latin America [Member] | Reportable Geographical Components [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue | 29,247 | 18,582 |
Gross profit | 1,060 | -875 |
Depreciation | 994 | 848 |
Capital expenditures | 2,034 | 820 |
Total assets | $2,973 | $3,321 |
SEGMENT_INFORMATION_Geographic
SEGMENT INFORMATION (Geographical Data) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | $231,257 | $198,092 |
Total property, plant and equipment, net | 22,210 | 26,310 |
United States [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | 95,333 | 69,403 |
Total property, plant and equipment, net | 12,875 | 13,549 |
Canada [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | 25,595 | 30,424 |
Total property, plant and equipment, net | 96 | 420 |
Philippines [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | 81,082 | 79,683 |
Total property, plant and equipment, net | 7,050 | 9,921 |
Latin America [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Revenue | 29,247 | 18,582 |
Total property, plant and equipment, net | $2,189 | $2,420 |