Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Stream Global Services, Inc. | ' |
Entity Central Index Key | '0001405287 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'No | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 1,000 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $15,675 | $18,735 |
Accounts receivable, net | 188,377 | 164,929 |
Income taxes receivable | 2,400 | 2,282 |
Deferred income taxes | 5,424 | 8,586 |
Prepaid expenses and other current assets | 15,912 | 18,140 |
Total current assets | 227,788 | 212,672 |
Equipment and fixtures, net | 105,035 | 96,851 |
Deferred income taxes | 2,867 | 3,483 |
Goodwill | 253,876 | 226,749 |
Intangible assets, net | 62,684 | 52,340 |
Other assets | 9,048 | 11,933 |
Total assets | 661,298 | 604,028 |
Current liabilities: | ' | ' |
Accounts payable | 19,034 | 16,359 |
Accrued employee compensation and benefits | 71,828 | 58,035 |
Other accrued expenses | 37,216 | 20,473 |
Income taxes payable | 1,573 | 1,115 |
Current portion of long-term debt | 37,860 | 5,333 |
Current portion of capital lease obligations | 9,709 | 9,279 |
Other liabilities | 9,625 | 5,591 |
Total current liabilities | 186,845 | 116,185 |
Long-term debt, net of current portion | 236,369 | 240,354 |
Capital lease obligations, net of current portion | 5,898 | 5,967 |
Deferred income taxes | 14,875 | 15,673 |
Other long-term liabilities | 17,618 | 15,953 |
Total liabilities | 461,605 | 394,132 |
Contingencies (Note 14) | ' | ' |
Stockholders' equity: | ' | ' |
Additional paid-in-capital | 337,685 | 336,572 |
Accumulated deficit | -123,705 | -120,031 |
Accumulated other comprehensive loss | -14,287 | -6,645 |
Total stockholders' equity | 199,693 | 209,896 |
Total liabilities and stockholders' equity | 661,298 | 604,028 |
Voting common stock | ' | ' |
Stockholders' equity: | ' | ' |
Voting common stock, par value $0.001 per share, 1 share authorized and outstanding | ' | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (Voting common stock, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Voting common stock | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 1 | 1 |
Common stock, shares outstanding | 1 | 1 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Condensed Statements of Operations | ' | ' | ' | ' |
Revenue | $256,011 | $210,931 | $747,977 | $624,213 |
Direct cost of revenue | 150,626 | 121,997 | 442,831 | 364,775 |
Gross profit | 105,385 | 88,934 | 305,146 | 259,438 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 74,435 | 63,665 | 223,452 | 194,526 |
Severance, restructuring and other charges, net | 3,631 | 3,419 | 10,251 | 12,871 |
Depreciation and amortization expense | 16,953 | 14,554 | 48,425 | 43,227 |
Total operating expenses | 95,019 | 81,638 | 282,128 | 250,624 |
Income from operations | 10,366 | 7,296 | 23,018 | 8,814 |
Other expenses, net: | ' | ' | ' | ' |
Foreign currency loss | 1,541 | 1,258 | 1,084 | 1,053 |
Interest expense, net | 8,752 | 7,422 | 25,714 | 22,087 |
Total other expenses, net | 10,293 | 8,680 | 26,798 | 23,140 |
Income (loss) before provision for income taxes | 73 | -1,384 | -3,780 | -14,326 |
Provision (benefit) for income taxes | -2,531 | 797 | -106 | 2,976 |
Net income (loss) | $2,604 | ($2,181) | ($3,674) | ($17,302) |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Consolidated Condensed Statements of Comprehensive Income (Loss) | ' | ' | ' | ' | ||||
Net income (loss) | $2,604 | ($2,181) | ($3,674) | ($17,302) | ||||
Other comprehensive income (loss): | ' | ' | ' | ' | ||||
Change in unrealized gain (loss) on forward exchange contracts, net of tax | 1,714 | 2,316 | -8,477 | 5,527 | ||||
Change in cumulative translation adjustment | 2,443 | [1] | 2,151 | [1] | 835 | [1] | -349 | [1] |
Comprehensive income (loss) | $6,761 | $2,286 | ($11,316) | ($12,124) | ||||
[1] | During the nine months ended September 30, 2012, we substantially liquidated our investment in Costa Rica. Accordingly, we reclassified $228 from cumulative translation adjustment to other foreign currency loss in our statement of operations. There were no sales or liquidations of investments in foreign entities during the three or nine months ended September 30, 2013. |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Condensed Statements of Comprehensive Income (Loss) | ' | ' | ' |
Foreign currency reclassification adjustment realized upon liquidation of investment | ' | ' | $228 |
Sales or liquidations of investments in foreign entities | $0 | $0 | ' |
Consolidated_Condensed_Stateme3
Consolidated Condensed Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities: | ' | ' |
Net loss | ($3,674) | ($17,302) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 48,425 | 43,227 |
Amortization of bond discount and debt issuance costs | 4,440 | 3,302 |
Deferred taxes | 132 | 415 |
Loss on impairment or disposal of assets | 57 | 433 |
Noncash stock compensation | 1,113 | 2,310 |
Other noncash adjustments | ' | -228 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -9,773 | -371 |
Income taxes receivable | -133 | -1,958 |
Prepaid expenses and other current assets | -5,330 | 518 |
Other assets | -313 | -356 |
Accounts payable | 431 | 999 |
Accrued expenses and other liabilities | 14,497 | 2,394 |
Net cash provided by operating activities | 49,872 | 33,383 |
Investing Activities: | ' | ' |
Acquisitions of business | -44,022 | ' |
Cash acquired from acquisitions | 5,217 | ' |
Additions to equipment and fixtures | -31,147 | -36,556 |
Net cash used in investing activities | -69,952 | -36,556 |
Financing Activities: | ' | ' |
Net payments on line of credit (Note 10) | -4,884 | -8,095 |
Payments on long-term debt | -3,015 | -559 |
Payments of capital lease obligations | -8,994 | -9,375 |
Proceeds from issuance of debt, net | 35,698 | 9,278 |
Proceeds from capital leases | ' | 630 |
Tax payments for withholding on restricted stock | ' | -11 |
Net cash provided by (used in) financing activities | 18,805 | -8,132 |
Effect of exchange rates on cash and cash equivalents | -1,785 | 89 |
Net decrease in cash and cash equivalents | -3,060 | -11,216 |
Cash and cash equivalents, beginning of period | 18,735 | 23,248 |
Cash and cash equivalents, end of period | 15,675 | 12,032 |
Supplemental cash flow information: | ' | ' |
Cash paid for interest | 15,155 | 14,044 |
Cash paid for income taxes | 4,090 | 6,140 |
Noncash financing activities: | ' | ' |
Capital lease financing | $7,380 | $4,592 |
Our_Business
Our Business | 9 Months Ended |
Sep. 30, 2013 | |
Our Business | ' |
Our Business | ' |
Note 1—Our Business | |
Stream Global Services, Inc. (“we,” “us,” “Stream,” the “Company” or “SGS”) is a global business process outsourcing (“BPO”) service provider and wholly owned subsidiary of SGS Holdings, Inc. (“Parent”) specializing in customer relationship management (“CRM”), including sales, customer care and technical support primarily for Fortune 1000 companies. Our clients include multinational computing/hardware, telecommunications service providers, software/networking, entertainment/media, retail, travel and financial services companies. Our service programs are delivered through a set of standardized best practices and sophisticated technologies by a highly skilled multilingual workforce with the ability to support 35 languages across approximately 56 service centers in 22 countries. We continue to expand our global presence and service offerings to increase revenue, improve operational efficiencies and drive brand loyalty for our clients. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
Note 2—Basis of Presentation | |
Our consolidated condensed financial statements as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 include our accounts and those of our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to cash and accounts payable in the consolidated condensed statement of cash flows for the nine months ended September 30, 2012. The effect of the reclassification increased net cash provided by operating activities by $1,254 for the nine months ended September 30, 2012. | |
In compliance with Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”), the Company analyzes its contractual arrangements to determine whether they represent variable interests in a variable interest entity (“VIE”) and, if so, whether the Company is the primary beneficiary. ASC 810 requires the Company to consolidate a VIE if the Company is determined to be the primary beneficiary regardless of ownership of voting shares. The Company is the primary beneficiary of a VIE in China, which it consolidates. The assets, liabilities and obligations of the VIE are not material to these consolidated financial statements. | |
We have evaluated subsequent events through the date these financial statements were issued. There were no subsequent events which required recognition or disclosure in the consolidated condensed financial statements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Note 3—Summary of Significant Accounting Policies | ||||||||||||||
Unaudited Interim Financial Information | ||||||||||||||
The accompanying consolidated condensed financial statements as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly our financial position and results of operations and cash flows. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ended December 31, 2013, or for any other interim period or future year. | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of the consolidated condensed financial statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, we evaluate our estimates including those related to revenue recognition, the allowance for bad debts, derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, valuation of long-lived assets, self-insurance reserves, contingencies, litigation and restructuring liabilities, and goodwill and other intangible assets. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. | ||||||||||||||
Foreign Currency Translation and Derivative Instruments | ||||||||||||||
The assets and liabilities of our foreign subsidiaries, for most of whom the functional currency is their local currency, are translated at the exchange rate in effect on the reporting date, and income and expenses are translated at the average exchange rate during the period. The net effect of translation gains and losses is not included in determining net income (loss), but is reflected in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity until the sale or until the liquidation of the net investment in the foreign subsidiary. Foreign currency transaction gains and losses are included in determining net income (loss), and are categorized as “Other expenses, net.” | ||||||||||||||
We account for derivative financial instruments utilizing the authoritative guidance in ASC 815, Derivatives and Hedging. We generally utilize forward contracts expiring within one to 24 months to reduce our foreign currency exposure due to exchange rate fluctuations on forecasted cash flows denominated in non-functional foreign currencies. Upon proper designation, certain of these contracts are accounted for as cash-flow hedges, as defined by the authoritative guidance. These contracts are entered into to protect against the risk that the value of the eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates. In using derivative financial instruments to hedge exposures to changes in exchange rates, we expose ourselves to counterparty credit risk. We do not believe that we are exposed to a concentration of credit risk with our derivative financial instruments as the counterparties are well established institutions and counterparty credit risk information is monitored on an ongoing basis. | ||||||||||||||
Unrealized gains and losses on all derivatives, including foreign currency forward contracts, are recognized in “Other current assets”, “Other current liabilities”, “Other assets, long term”, or Other long-term liabilities” on the balance sheet at fair value. Fair values for our derivative financial instruments are based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions. On the date the derivative contract is entered into, we determine whether the derivative contract should be designated as a cash flow hedge. Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are recorded in “Accumulated other comprehensive loss,” until the forecasted underlying transactions occur. To date we have not experienced any hedge ineffectiveness of our cash flow hedges that we intended to be effective. Any realized gains or losses resulting from the cash flow hedges are recognized together with the hedged transaction within “Direct cost of revenue.” Cash flows from the derivative contracts are classified within “Cash flows from operating activities.” Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. | ||||||||||||||
We may also enter into derivative contracts that are intended to economically hedge certain risks, even though we do not qualify for or elect not to apply hedge accounting as defined by the authoritative guidance. | ||||||||||||||
Changes in fair value of derivatives not designated as cash flow hedges are reported in “Other expenses, net.” Upon settlement of the derivatives not qualifying as cash flow hedges, a gain or loss is reported in “Other expenses, net.” | ||||||||||||||
We formally document all relationships between hedging instruments and hedged items, as well as our risk management objective and strategy for undertaking various hedging activities. This process includes linking all derivatives that are designated as cash flow hedges to forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis (as required), whether the derivatives that are used in cash flow hedging transactions are highly effective in offsetting changes in cash flows of hedged items on a prospective and retrospective basis. When it is determined that a derivative is not highly effective as a cash flow hedge or that it has ceased to be a highly effective hedge or if a forecasted transaction is no longer probable of occurring, we discontinue hedge accounting prospectively. At September 30, 2013, all hedges were determined to be highly effective, except for certain hedges where we elect not to apply hedge accounting as defined by the authoritative guidance. | ||||||||||||||
Our hedging program has been effective in all periods presented and the amount of hedge ineffectiveness has not been material. | ||||||||||||||
As of September 30, 2013, we had the following open foreign currency contracts: | ||||||||||||||
Foreign Currency | Notional Amounts | Net Unrealized | ||||||||||||
(in US Dollars) | Gain (Loss) | |||||||||||||
Canadian Dollar | $ | 45,142 | $ | (489 | ) | |||||||||
Philippine Peso | 234,162 | (2,966 | ) | |||||||||||
Indian Rupee | 17,956 | (266 | ) | |||||||||||
Euro | 2,283 | 22 | ||||||||||||
British Pound | 21,951 | (470 | ) | |||||||||||
$ | 321,494 | $ | (4,169 | ) | ||||||||||
The table below summarizes the carrying values of derivative instruments as of September 30, 2013 and December 31, 2012: | ||||||||||||||
Carrying Values of Derivative Instruments as of | ||||||||||||||
September 30, 2013 | ||||||||||||||
Fair Value – | Fair Value – | Derivative Net | ||||||||||||
Assets | (Liabilities) | Carrying Value | ||||||||||||
Total derivatives designated as hedging instruments (1) | $ | 219 | $ | (5,414 | ) | $ | (5,195 | ) | ||||||
Total derivatives not designated as hedging instruments (1) | 1,613 | (587 | ) | 1,026 | ||||||||||
Total derivatives | $ | 1,832 | $ | (6,001 | ) | $ | (4,169 | ) | ||||||
Carrying Values of Derivative Instruments as of | ||||||||||||||
December 31, 2012 | ||||||||||||||
Fair Value – | Fair Value – | Derivative Net | ||||||||||||
Assets | (Liabilities) | Carrying Value | ||||||||||||
Total derivatives designated as hedging instruments (1) | $ | 3,623 | $ | (65 | ) | $ | 3,558 | |||||||
Total derivatives not designated as hedging instruments (1) | 382 | (138 | ) | 244 | ||||||||||
Total derivatives | $ | 4,005 | $ | (203 | ) | $ | 3,802 | |||||||
(1) Assets are included in “Other current assets” or “Other assets, long term” and liabilities are included in “Other current liabilities” or “Other long-term liabilities” on the accompanying consolidated balance sheets. | ||||||||||||||
As of September 30, 2013 and December 31, 2012, $4,987 of unrealized losses and $3,555 of unrealized gains, respectively, may be reclassified from other comprehensive income (loss) to earnings within the next 12 months based on current foreign exchange rates. As of September 30, 2013 and December 31, 2012, included in other current liabilities is $883 and included in other current assets is $586, respectively, of fair market value of derivatives designated as cash flow hedges that were acquired from a commercial bank in which one of our financial sponsors owns a non-controlling interest. | ||||||||||||||
The following table presents the impact of derivative instruments on the consolidated condensed statements of operations for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Derivatives designated as hedging instruments | $ | 2,047 | $ | (218 | ) | $ | 1,041 | $ | 120 | |||||
Derivatives not designated as hedging instruments | 586 | (589 | ) | 2,214 | (1,483 | ) | ||||||||
Total | $ | 2,633 | $ | (807 | ) | $ | 3,255 | $ | (1,363 | ) | ||||
Fair Value of Financial Instruments | ||||||||||||||
The following table presents information about our assets and liabilities and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability: | ||||||||||||||
September 30, | Quoted Prices in | Significant Other | Significant | |||||||||||
2013 | Active Markets | Observable | Unobservable | |||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||
Description | ||||||||||||||
Forward exchange contracts | $ | (4,169 | ) | $ | — | $ | (4,169 | ) | $ | — | ||||
Total | $ | (4,169 | ) | $ | — | $ | (4,169 | ) | $ | — | ||||
December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||
2012 | Active Markets | Observable | Unobservable | |||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||
Description | ||||||||||||||
Forward exchange contracts | $ | 3,802 | $ | — | $ | 3,802 | $ | — | ||||||
Total | $ | 3,802 | $ | — | $ | 3,802 | $ | — | ||||||
The fair values of our forward exchange contracts are determined through market, observable and corroborated sources. | ||||||||||||||
The carrying amounts reflected in the consolidated balance sheets for other current assets, accounts payable, and other liabilities approximate fair value due to their short-term maturities. To the extent we have any outstanding borrowings under our revolving credit facility, the fair value would approximate its reported value because the interest rate is variable and reflects current market rates. | ||||||||||||||
At September 30, 2013, the fair value of our long term debt was $231,610. The fair value of our long term debt is determined from financial market quotations. | ||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued guidance adding new disclosure requirements for items reclassified out of accumulated other comprehensive income (“AOCI”). We implemented these requirements in the first quarter of 2013. The guidance is intended to help entities improve the transparency of changes in other comprehensive income (“OCI”) and items reclassified out of AOCI in financial statements. It does not amend any existing requirements for reporting net income or OCI in financial statements. The implementation of the guidance did not have a material impact on our consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Acquisitions | ' | ||||||
Acquisitions | ' | ||||||
Note 4—Acquisitions | |||||||
N2SP | |||||||
On August 20, 2013, we completed our acquisition of all of the outstanding share capital of N2SP Tunisie S.A.R.L. (“N2SP”). N2SP is a Tunisian-based company that provides outsourced technical and customer support services, primarily through a client-based click to chat website functionality. We believe that the acquisition of N2SP will strengthen our product offerings and enhances our profitability and growth potential in Europe. N2SP’s financial results are included in the Company’s consolidated results from the date of acquisition. Pro forma financial results are not presented as the acquisition is not material to the consolidated financial statements. The acquisition of N2SP for approximately $2,855, which was funded with cash on hand, has been allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. On a preliminary basis, approximately $2,615 was allocated to a customer relationship intangible asset. As of September 30, 2013, this allocation for N2SP remains preliminary as it relates to the valuation of certain working capital accounts and intangible assets. | |||||||
LBM | |||||||
On February 25, 2013, we completed our acquisition of all of the outstanding share capital of LBM Holdings Limited and the interests in its two subsidiaries, LBM Holdings (UK) Limited and LBM Direct Marketing Limited (collectively, “LBM”), for a purchase price of approximately $41,167. LBM is a United Kingdom-based BPO provider servicing large, multinational companies primarily in the UK marketplace. LBM provides a range of revenue generation services and capabilities for utilities, telecommunications and financial services companies in Europe. LBM has approximately 2,500 employees across 6 locations in England and Northern Ireland. We have included the financial results of the business combination in our consolidated results of operations beginning on the acquisition date, however the impact of the acquisition was not material to our consolidated condensed financial statements. | |||||||
The following summarizes the fair values of the identifiable assets acquired and liabilities assumed related to the LBM transaction as of the acquisition date: | |||||||
Final Purchase | |||||||
Price Allocation | |||||||
Current assets | $ | 17,812 | |||||
Property and equipment | 6,866 | ||||||
Goodwill | 26,227 | ||||||
Intangible assets | 18,614 | ||||||
Total assets acquired | 69,519 | ||||||
Current liabilities | 19,332 | ||||||
Other liabilities | 9,020 | ||||||
Total liabilities | 28,352 | ||||||
Allocated purchase price | $ | 41,167 | |||||
Intangible assets acquired and the related amortization periods are as follows: | |||||||
Estimated | Gross | ||||||
useful life | cost | ||||||
Customer relationships | 7 years | $ | 11,973 | ||||
Non-compete agreements | 2 years | 2,817 | |||||
Trade names | 4 years | 704 | |||||
Other | 3 years | 3,120 | |||||
$ | 18,614 | ||||||
Goodwill_and_Intangibles
Goodwill and Intangibles | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Goodwill and Intangibles | ' | ||||||||||||||||||||||
Goodwill and Intangibles | ' | ||||||||||||||||||||||
Note 5—Goodwill and Intangibles | |||||||||||||||||||||||
Goodwill and Indefinite Lived Intangible Assets | |||||||||||||||||||||||
We evaluate goodwill and indefinite-lived intangible assets for impairment annually and whenever events or changes in circumstances suggest that the carrying value of goodwill and indefinite-lived intangible assets may not be recoverable. We utilize internally developed models to estimate our expected future cash flow and utilize a discounted cash flow technique to estimate the fair value of the Company in connection with our evaluation of goodwill and indefinite-lived intangible assets. No impairment of goodwill and indefinite-lived intangible assets resulted from our most recent evaluation of goodwill and indefinite-lived intangible assets for impairment, which occurred in the fourth quarter of 2012, nor do we believe any indicators of impairment have occurred. Our next annual impairment assessment will be conducted in the fourth quarter of 2013. | |||||||||||||||||||||||
The following is a roll-forward of goodwill as of September 30, 2013: | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | 226,749 | |||||||||||||||||||||
Acquisition of LBM | 26,227 | ||||||||||||||||||||||
Acquisition of N2SP | 111 | ||||||||||||||||||||||
Currency translation effect | 789 | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 253,876 | |||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||
We review identified intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Recoverability of these assets is measured by comparison of their carrying value to future undiscounted cash flows that the assets are expected to generate over their remaining economic lives. If such assets are considered to be impaired, the impairment to be recognized in the statement of operations is the amount by which the carrying value of the assets exceeds their fair value, determined by either a quoted market price, if any, or a value determined by utilizing a discounted cash flow technique. There were no impairments recorded during 2013. | |||||||||||||||||||||||
Intangible assets at September 30, 2013 consisted of the following: | |||||||||||||||||||||||
Estimated | Weighted | Gross | Accumulated | Currency | Net | ||||||||||||||||||
useful life | average | cost | amortization | translation | |||||||||||||||||||
remaining | effect | ||||||||||||||||||||||
life | |||||||||||||||||||||||
Customer relationships | Up to 10 years | 2.8 | $ | 113,337 | $ | (72,680 | ) | $ | 338 | $ | 40,995 | ||||||||||||
Technology-based intangible assets | 3 to 5 years | 1.5 | 5,340 | (2,418 | ) | 74 | 2,996 | ||||||||||||||||
Non-compete agreements | 2 years | 1.8 | 2,817 | (910 | ) | 66 | 1,973 | ||||||||||||||||
Trade names | 4 years | 2.2 | 801 | (200 | ) | 19 | 620 | ||||||||||||||||
Trade names - indefinite | Indefinite | Indefinite | 16,100 | — | — | 16,100 | |||||||||||||||||
$ | 138,395 | $ | (76,208 | ) | $ | 497 | $ | 62,684 | |||||||||||||||
Future amortization expense of our intangible assets for the next five years and thereafter is expected to be as follows: | |||||||||||||||||||||||
Remainder of | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||
2013 | |||||||||||||||||||||||
Amortization | $ | 4,207 | $ | 13,218 | $ | 10,124 | $ | 7,461 | $ | 5,521 | $ | 4,680 | $ | 1,373 | |||||||||
Severance_Restructuring_and_Ot
Severance, Restructuring and Other Charges, Net | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Severance, Restructuring and Other Charges, Net | ' | |||||||||||||
Severance, Restructuring and Other Charges, Net | ' | |||||||||||||
Note 6—Severance, Restructuring and Other Charges, Net | ||||||||||||||
During the three and nine months ended September 30, 2013, we recorded a net expense of $3,631 and $10,251, respectively, primarily related to salary continuation related to reductions in workforce, management’s decision to exit locations and eliminate unprofitable programs and expenses related to the integration of acquisitions. | ||||||||||||||
During the three and nine months ended September 30, 2012, we recorded a net expense of $3,419 and $12,871, respectively, primarily related to salary continuation related to reductions in workforce, legal expenses related to our privatization transaction and the closure of call centers. | ||||||||||||||
Severance, restructuring and other charges, net, consist of the following: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Severance | $ | 1,165 | $ | 1,461 | $ | 3,560 | $ | 5,254 | ||||||
Location exit charges, net | 1,091 | 1,668 | 2,546 | 4,739 | ||||||||||
Transaction related expenses and other | 1,375 | 290 | 4,145 | 2,878 | ||||||||||
Severance, restructuring and other charges, net | $ | 3,631 | $ | 3,419 | $ | 10,251 | $ | 12,871 | ||||||
The activity in the Company’s restructuring and other liabilities, which are included in liabilities, is as follows: | ||||||||||||||
Reduction in | Closure of call | Transaction related | Total | |||||||||||
work-force | centers | expense | ||||||||||||
and severance | ||||||||||||||
Balance at December 31, 2012 | $ | 1,042 | $ | 1,810 | $ | 470 | $ | 3,322 | ||||||
Expense | 3,560 | 2,546 | 4,145 | 10,251 | ||||||||||
Cash Paid | (4,054 | ) | (3,827 | ) | (4,003 | ) | (11,884 | ) | ||||||
Balance at September 30, 2013 | $ | 548 | $ | 529 | $ | 612 | $ | 1,689 | ||||||
Equipment_and_Fixtures_Net
Equipment and Fixtures, Net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Equipment and Fixtures, Net | ' | |||||||
Equipment and Fixtures, Net | ' | |||||||
Note 7—Equipment and Fixtures, Net | ||||||||
Equipment and fixtures, net, consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Furniture and fixtures | $ | 23,701 | $ | 17,696 | ||||
Building improvements | 73,424 | 66,369 | ||||||
Computer equipment | 78,195 | 70,238 | ||||||
Software | 52,196 | 40,460 | ||||||
Telecom and other equipment | 58,456 | 55,418 | ||||||
Equipment and fixtures not yet placed in service | 8,440 | 1,380 | ||||||
$ | 294,412 | $ | 251,561 | |||||
Less: accumulated depreciation | (189,377 | ) | (154,710 | ) | ||||
$ | 105,035 | $ | 96,851 | |||||
Accrued_Employee_Compensation_
Accrued Employee Compensation and Benefits | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accrued Employee Compensation and Benefits | ' | |||||||
Accrued Employee Compensation and Benefits | ' | |||||||
Note 8—Accrued Employee Compensation and Benefits | ||||||||
Accrued employee compensation and benefits consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Compensation related amounts | $ | 40,103 | $ | 28,386 | ||||
Vacation liabilities | 15,699 | 14,176 | ||||||
Medical and dental liabilities | 2,405 | 2,078 | ||||||
Employer taxes | 2,785 | 2,098 | ||||||
Statutory retirement plans | 10,463 | 10,860 | ||||||
Other benefit related liabilities | 373 | 437 | ||||||
$ | 71,828 | $ | 58,035 | |||||
Other_Accrued_Expenses_and_Oth
Other Accrued Expenses and Other Liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Accrued Expenses and Other Liabilities | ' | |||||||
Other Accrued Expenses and Other Liabilities | ' | |||||||
Note 9—Other Accrued Expenses and Other Liabilities | ||||||||
Other accrued expenses consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Professional fees | $ | 4,875 | $ | 3,560 | ||||
Accrued interest | 13,809 | 6,226 | ||||||
Occupancy expense | 3,432 | 2,108 | ||||||
Technology expense | 2,156 | 1,841 | ||||||
Value added and sales tax | 3,285 | 1,547 | ||||||
Other accrued expenses | 9,659 | 5,191 | ||||||
$ | 37,216 | $ | 20,473 | |||||
Other current liabilities consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Lease exit liability | $ | 307 | $ | 1,704 | ||||
Deferred revenue | 1,063 | 1,512 | ||||||
Market lease reserves | 285 | 946 | ||||||
Forward exchange contracts | 5,689 | 204 | ||||||
Other | 2,281 | 1,225 | ||||||
Total other current liabilities | $ | 9,625 | $ | 5,591 | ||||
Other long-term liabilities consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Deferred rent | $ | 5,236 | $ | 4,415 | ||||
Accrued income taxes | 6,519 | 11,143 | ||||||
Market lease reserves | 128 | 61 | ||||||
Asset retirement obligation | 3,717 | — | ||||||
Forward exchange contracts | 312 | — | ||||||
Other | 1,706 | 334 | ||||||
Total other long-term liabilities | $ | 17,618 | $ | 15,953 | ||||
LongTerm_Debt_and_Revolving_Cr
Long-Term Debt and Revolving Credit Facility | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Long-Term Debt and Revolving Credit Facility | ' | |||||||
Long-Term Debt and Revolving Credit Facility | ' | |||||||
Note 10—Long-Term Debt and Revolving Credit Facility | ||||||||
Pursuant to an indenture dated as of October 1, 2009 (the “Indenture”), among Stream, certain of our subsidiaries and Wells Fargo Bank, National Association, as trustee, we issued $200 million aggregate principal amount of 11.25% Senior Secured Notes due 2014 (the “Notes”) at an initial offering price of 95.454% of the principal amount, the proceeds of which were used to pay off the debt from our Fifth Amended and Restated Revolving Credit, Term Loan and Security Agreement, dated as of January 8, 2009, as amended, with PNC Bank, National Association and other signatories thereto along with debt acquired from EGS. On March 8, 2013, we issued an additional $30 million aggregate principal amount of the Notes pursuant to the Indenture at an initial offering price of 102.00% of the principal amount (plus accrued interest), the proceeds of which were used to pay down our credit facility following the acquisition of LBM. The Notes are scheduled to be redeemed on October 1, 2014. | ||||||||
In addition, we and certain of our subsidiaries (collectively, the “Borrowers”) entered into a credit agreement, dated as of October 1, 2009, as amended by the First Amendment to Credit Agreement dated June 3, 2011, the Second Amendment to Credit Agreement dated November 1, 2011 and the Third Amendment to Credit Agreement dated December 27, 2012 (as amended, the “Credit Agreement”), with Wells Fargo Capital Finance, LLC, as agent and co-arranger, and Goldman Sachs Lending Partners LLC, as co-arranger, and each of the lenders party thereto, as lenders, providing for revolving credit financing (the “ABL Facility”) of up to $125 million, including a $20 million sub-limit for letters of credit. The ABL Facility has a term of five years effective from the date of the Third Amendment to Credit Agreement or 120 days prior to the maturity of our Notes (including any refinancing or extension of the Notes), whichever is less, at an interest rate of Wells Fargo’s base rate plus 150 basis points or LIBOR plus 250 basis points at our discretion. | ||||||||
We currently intend to replace, refinance or extend our ABL Credit Agreement at or prior to its maturity in June 2014 and to replace, refinance or extend the Notes at or prior to their maturity in October 2014. However, there can be no assurance that we will be able to do so on terms favorable to us, or at all. We believe that the renegotiated financing, combined with our cash generated from operations and existing cash and cash equivalents, should be sufficient to meet expected liquidity needs for the next 12 months. | ||||||||
We capitalized fees of $8,966 and $5,642 associated with the Notes and the Credit Agreement, respectively, at the inception of these agreements and subsequent amendments that are being amortized over their respective lives. We amortized $1,093 and $3,090 of such capitalized fees into expense for the three and nine months ended September 30, 2013. | ||||||||
The ABL facility has a fixed charge coverage ratio financial covenant that is operative when our availability under the facility is less than $25 million. As of September 30, 2013, we had $87,226 available under the ABL Facility. We made draws on the ABL Facility of $256,966 and $237,312 for the nine months ended September 30, 2013 and 2012, respectively, and payments on the ABL Facility of $261,850 and $245,407 for the nine months ended September 30, 2013 and 2012, respectively. We are in compliance with the financial covenant in the Credit Agreement as of September 30, 2013. Substantially all of the assets of Stream excluding intangible assets secure the Notes and the ABL Facility. See Note 16 for Guarantor Financial Information. | ||||||||
Long-term borrowings consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Revolving line of credit | $ | 29,797 | $ | 34,680 | ||||
11.25% Senior Secured Notes | 230,000 | 200,000 | ||||||
Other | 16,378 | 14,904 | ||||||
276,175 | 249,584 | |||||||
Less: current portion | (37,860 | ) | (5,333 | ) | ||||
Less: discount on notes payable | (1,946 | ) | (3,897 | ) | ||||
Long-term debt | $ | 236,369 | $ | 240,354 | ||||
Minimum principal payments on long-term debt subsequent to September 30, 2013 are as follows: | ||||||||
Total | ||||||||
2013 | $ | 1,233 | ||||||
2014 | 267,689 | |||||||
2015 | 4,854 | |||||||
2016 | 1,106 | |||||||
2017 | 1,293 | |||||||
Total | $ | 276,175 | ||||||
We had Letters of Credit in the aggregate outstanding amounts of zero and $3,245 at September 30, 2013 and December 31, 2012, respectively. | ||||||||
We had $299 and $380 of restricted cash as of September 30, 2013 and December 31, 2012, respectively. | ||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||
Note 11—Accumulated Other Comprehensive Loss | ||||||||||||||
The following table shows the components of accumulated other comprehensive loss as of September 30, 2013: | ||||||||||||||
Unrealized gain (loss) | Cumulative | Accumulated | ||||||||||||
on forward | translation | other | ||||||||||||
exchange | adjustment | comprehensive | ||||||||||||
contracts, net of | loss | |||||||||||||
tax | ||||||||||||||
Beginning balance December 31, 2012 | $ | 3,283 | $ | (9,928 | ) | $ | (6,645 | ) | ||||||
Current period other comprehensive income (loss) | (8,477 | ) | 835 | (7,642 | ) | |||||||||
Ending balance September 30, 2013 | $ | (5,194 | ) | $ | (9,093 | ) | $ | (14,287 | ) | |||||
The following table summarizes activity in other comprehensive income (loss) related to forward exchange contracts held by the Company during the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Change in fair value of forward exchange contracts, net of tax | $ | 3,141 | $ | 2,462 | $ | (7,937 | ) | $ | 3,380 | |||||
Amount reclassified to direct cost of revenue | (1,427 | ) | (146 | ) | (540 | ) | 2,147 | |||||||
Change in unrealized gains/losses on forward exchange contracts | $ | 1,714 | $ | 2,316 | $ | (8,477 | ) | $ | 5,527 |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ' | |||||||
Note 12—Income Taxes | ||||||||
The domestic and foreign source components of income (loss) before taxes are as follows: | ||||||||
Nine months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
2013 | 2012 | |||||||
Total US | $ | (24,420 | ) | $ | (24,074 | ) | ||
Total Foreign | 20,640 | 9,748 | ||||||
Total | $ | (3,780 | ) | $ | (14,326 | ) | ||
The provisions for income taxes for the nine months ended September 30, 2013 and 2012 relates primarily to the foreign source component of income (loss) before tax. Our operations in countries outside the United States are generally taxed at lower statutory rates and also benefit from tax holidays. | ||||||||
We file income tax returns in the U.S. federal jurisdiction and various state and foreign tax jurisdictions. We operate in a number of international tax jurisdictions and are subject to audits of income tax returns by tax authorities in those jurisdictions. We have open audit periods beginning after 2004 through the current period in various jurisdictions and are currently under audit in India, Canada, Italy, and Philippines. | ||||||||
Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), limits the amount of US tax attributes (net operating loss carry forwards and tax credits) that can be utilized annually to offset future taxable income based on certain 3-year cumulative increases in the ownership interests of stockholders who are 5% stockholders under the Code. The Company has determined that an ownership change occurred under these federal income tax provisions on April 27, 2012. However, the Company does not expect to generate U.S. taxable income in excess of the accumulated limitation in 2013. | ||||||||
The Italy Revenue Agency Enactment No. 140973 provides for a refund claim in the event of non-deduction of employee and quasi-employee costs. This refund claim applied to tax years 2007 through 2011. We recorded a benefit of $1,031 related to this refund in the nine months ended September 30, 2013. | ||||||||
As of September 30, 2013 and December 31, 2012, the liability for unrecognized tax benefits (including interest and penalties) was $6,800 and $11,222, respectively, and was recorded within other long term liabilities in our consolidated financial statements. During the three and nine months ended September 30, 2013, the statute of limitations expired on uncertain tax positions resulting in a reduction in our liability for unrecognized tax benefits of $4,079. Included in these amounts is $1,599 for both the nine months ended September 30, 2013 and for the year ended December 31, 2012 of un-benefitted tax losses, which would be realized if the related uncertain tax positions were settled. As of January 1, 2013, we had reserved $2,633 for accrued interest and penalties, which decreased to $2,539 as of September 30, 2013. We recognize accrued interest and penalties associated with uncertain tax positions as part of the income tax provision. The total amount of net unrealized tax benefits that would affect income tax expense, if ever recognized in our consolidated financial statements, is $5,201. This amount includes interest and penalties of $2,539. We estimate that within the next 12 months, our unrecognized tax benefits, and interest and penalties, could decrease by $692 as a result of either settlements with taxing authorities or the expiration of the statute of limitations. |
Stock_Options
Stock Options | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stock Options | ' | |||||||||||
Stock Options | ' | |||||||||||
Note 13—Stock Options | ||||||||||||
The Company’s 2008 Stock Incentive Plan (the “2008 Plan”) was terminated on April 27, 2012. The 2008 Plan provided for the grant of incentive and nonqualified stock options. The 2008 Plan had authorized grants of up to 10,000 shares of common stock at an exercise price of not less than 100% of the fair value of the common stock at the date of grant. The 2008 Plan provided that the options shall have terms not to exceed ten years from the grant date. During the nine months ended September 30, 2012, we granted options to purchase 185 shares of our common stock to employees that were subsequently terminated. | ||||||||||||
The per share fair value of options granted was determined using the Black-Scholes-Merton model. | ||||||||||||
The following assumptions were used for the option grants in the nine months ended September 30, 2012 under the 2008 Plan: | ||||||||||||
Nine months ended | ||||||||||||
September 30, | ||||||||||||
2012 | ||||||||||||
Option term (years) | 6.38 | |||||||||||
Volatility | 71.89 | % | ||||||||||
Risk-free interest rate | 1.14 — 1.43 | % | ||||||||||
Dividend yield | 0 | % | ||||||||||
Weighted-average grant date fair value per option granted | $ | 1.73 | ||||||||||
During the nine months ended September 30, 2012, 1,534 stock option grants under the 2008 Plan were vested, zero were exercised, and 5,623 were forfeited. | ||||||||||||
At September 30, 2013, no stock options were outstanding under the 2008 Plan. There are no shares outstanding, vested, or expected to vest (including forfeiture adjusted unvested shares) as the plan was cancelled. | ||||||||||||
On June 8, 2012, the Board of Directors and stockholders of Parent approved the 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan provides for the grant of incentive and nonqualified stock options. The 2012 Plan has authorized grants of up to 80 shares of common stock of Parent at an exercise price of not less than 100% of the fair value of the common stock at the date of grant. The 2012 Plan provides that the options shall have terms not to exceed seven years from the grant date and the vesting term of the awards range from four to five years. | ||||||||||||
The following assumptions were used for the option grants in the nine months ended September 30, 2013 under the 2012 Plan: | ||||||||||||
Nine months ended | ||||||||||||
September 30, | ||||||||||||
2013 | ||||||||||||
Option term (years) | 5 | |||||||||||
Volatility | 44.35 | % | ||||||||||
Risk-free interest rate | 0.88 | % | ||||||||||
Dividend yield | 0 | % | ||||||||||
Weighted-average grant date fair value per option granted | $ | 70.87 | ||||||||||
The option term was calculated under the simplified method for all option grants issued during the nine months ended September 30, 2013. The volatility assumptions were based on a weighted average of the historical volatilities for the Company and its peer group. The risk-free interest rate assumptions were based upon the implied yields from the U.S. Treasury zero-coupon yield curve with a remaining term equal to the expected term in options. | ||||||||||||
During the nine months ended September 30, 2013, 19 stock option grants under the 2012 Plan were vested, zero were exercised, and 5.6 were forfeited. | ||||||||||||
Stock options issued under the 2012 Plan during the nine months ended September 30, 2013 were as follows: | ||||||||||||
Number | Weighted | Weighted | Weighted | |||||||||
of options | Average | Average | Average | |||||||||
Exercise | Fair | Remaining | ||||||||||
Price | Value | Contractual | ||||||||||
Term | ||||||||||||
(Years) | ||||||||||||
Outstanding at December 31, 2012 | 74.3 | $ | 425 | — | 6.82 | |||||||
Granted | 0.8 | 425 | $ | 70.87 | ||||||||
Exercised | — | — | ||||||||||
Forfeited | 5.6 | 425 | ||||||||||
Outstanding at September 30, 2013 | 69.5 | $ | 425 | 6.07 | ||||||||
At September 30, 2013, we had stock options to purchase 19 shares that were exercisable. The weighted average exercise price of options currently exercisable is $425.00 at September 30, 2013. The weighted average remaining contractual term of options currently exercisable is 6.05 years at September 30, 2013. The total fair value of options vested during the nine months ended September 30, 2013 was $120. The shares outstanding as of September 30, 2013 had a weighted average exercise price of $425.00 and a weighted average remaining contractual term of 6.07 years. | ||||||||||||
For the three months ended September 30, 2013, we recognized stock compensation expense of $397 within selling, general and administrative expenses. | ||||||||||||
For the nine months ended September 30, 2013, we recognized stock compensation expense of $1,113 within selling, general and administrative expenses. | ||||||||||||
As of September 30, 2013, the aggregate intrinsic value (i.e., the difference in the estimated fair value of our common stock and the exercise price to be paid by the option holder) of stock options outstanding, excluding the effects of expected forfeitures, was zero. The aggregate intrinsic value of the shares of exercisable stock at September 30, 2013 was zero. | ||||||||||||
As of September 30, 2013, there was $1,526 of unrecognized compensation cost related to the unvested portion of time-based arrangements granted under the 2012 Plan. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Contingencies | ' |
Contingencies | ' |
Note 14—Contingencies | |
We are subject to various lawsuits and claims in the normal course of business. In addition, from time to time, we receive communications from government or regulatory agencies concerning investigations or allegations of non-compliance with laws or regulations in jurisdictions in which we operate. Although the ultimate outcome of such lawsuits, claims and investigations cannot be ascertained, we believe, on the basis of present information, that the disposition or ultimate resolution of such claims, lawsuits and/or investigations will not have a material adverse effect on our business, results of operations or financial condition. We establish specific liabilities in connection with regulatory and legal actions that we deem to be probable and estimable, and we believe that our reserves for such liabilities are adequate. |
Geographic_Operations_and_Conc
Geographic Operations and Concentrations | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Geographic Operations and Concentrations | ' | |||||||||||||
Geographic Operations and Concentrations | ' | |||||||||||||
Note 15—Geographic Operations and Concentrations | ||||||||||||||
We operate in one operating segment and provide services primarily in two regions: “Americas,” which includes the United States, Canada, the Philippines, India, China, Nicaragua, the Dominican Republic, El Salvador, and Honduras; and “EMEA,” which includes Europe, the Middle East, and Africa. | ||||||||||||||
The following table presents geographic information regarding our operations: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Revenues | ||||||||||||||
Americas | ||||||||||||||
United States | $ | 51,900 | $ | 52,131 | $ | 162,782 | $ | 146,416 | ||||||
Philippines | 55,506 | 50,122 | 165,017 | 149,486 | ||||||||||
Canada | 24,720 | 25,908 | 79,945 | 81,562 | ||||||||||
Others | 34,129 | 29,768 | 97,623 | 85,898 | ||||||||||
Total Americas | 166,255 | 157,929 | 505,367 | 463,362 | ||||||||||
EMEA | ||||||||||||||
Great Britain | 31,169 | — | 69,844 | — | ||||||||||
Others | 58,587 | 53,002 | 172,766 | 160,851 | ||||||||||
Total EMEA | 89,756 | 53,002 | 242,610 | 160,851 | ||||||||||
$ | 256,011 | $ | 210,931 | $ | 747,977 | $ | 624,213 | |||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Total assets: | ||||||||||||||
Americas | $ | 520,028 | $ | 536,149 | ||||||||||
EMEA | 141,270 | 67,879 | ||||||||||||
$ | 661,298 | $ | 604,028 | |||||||||||
We derive significant revenues from one client. At September 30, 2013, our largest client by revenue is a global technology company. The percentage of revenue for clients exceeding 10% of revenue in the three and nine months ended September 30, 2013 and 2012 is as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Microsoft | 12 | % | 10 | % | 13 | % | 9 | % | ||||||
Related accounts receivable from this client was 6% of our total accounts receivable at September 30, 2013 and 4% of our total accounts receivable at September 30, 2012. |
Guarantor_Financial_Informatio
Guarantor Financial Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Guarantor Financial Information | ' | ||||||||||||||||
Guarantor Financial Information | ' | ||||||||||||||||
Note 16—Guarantor Financial Information | |||||||||||||||||
The Notes are guaranteed by the Company, along with certain of our wholly owned subsidiaries. Such guaranties are full, unconditional and joint and several. Condensed consolidating financial information related to the Company, our guarantor subsidiaries and our non-guarantor subsidiaries as of and for the three and nine months ended September 30, 2013 and 2012 are reflected below: | |||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net revenue | $ | — | $ | 109,849 | $ | 150,201 | $ | (4,039 | ) | $ | 256,011 | ||||||
Direct cost of revenue: | |||||||||||||||||
Customers | — | 58,677 | 91,949 | — | 150,626 | ||||||||||||
Intercompany | — | 3,165 | 874 | (4,039 | ) | — | |||||||||||
— | 61,842 | 92,823 | (4,039 | ) | 150,626 | ||||||||||||
Gross profit | — | 48,007 | 57,378 | — | 105,385 | ||||||||||||
Operating expenses | 465 | 45,069 | 49,485 | — | 95,019 | ||||||||||||
Non-operating expenses (income) | 8,734 | (748 | ) | 2,307 | — | 10,293 | |||||||||||
Equity in earnings of subsidiaries | (2,760 | ) | — | — | 2,760 | — | |||||||||||
Income (loss) before income taxes | (6,439 | ) | 3,686 | 5,586 | (2,760 | ) | 73 | ||||||||||
Provision (benefit) for income taxes | (9,043 | ) | 5,336 | 1,176 | — | (2,531 | ) | ||||||||||
Net income (loss) | $ | 2,604 | $ | (1,650 | ) | $ | 4,410 | $ | (2,760 | ) | $ | 2,604 | |||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net revenue | $ | — | $ | 335,165 | $ | 424,842 | $ | (12,030 | ) | $ | 747,977 | ||||||
Direct cost of revenue: | |||||||||||||||||
Customers | — | 182,141 | 260,690 | — | 442,831 | ||||||||||||
Intercompany | — | 9,905 | 2,125 | (12,030 | ) | — | |||||||||||
— | 192,046 | 262,815 | (12,030 | ) | 442,831 | ||||||||||||
Gross profit | — | 143,119 | 162,027 | — | 305,146 | ||||||||||||
Operating expenses | 1,254 | 139,333 | 141,541 | — | 282,128 | ||||||||||||
Non-operating expenses (income) | 25,871 | (4,910 | ) | 5,837 | — | 26,798 | |||||||||||
Equity in earnings of subsidiaries | (14,414 | ) | — | — | 14,414 | — | |||||||||||
Income (loss) before income taxes | (12,711 | ) | 8,696 | 14,649 | (14,414 | ) | (3,780 | ) | |||||||||
Provision (benefit) for income taxes | (9,037 | ) | 6,615 | 2,316 | — | (106 | ) | ||||||||||
Net income (loss) | $ | (3,674 | ) | $ | 2,081 | $ | 12,333 | $ | (14,414 | ) | $ | (3,674 | ) | ||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net revenue | $ | — | $ | 109,210 | $ | 108,293 | $ | (6,572 | ) | $ | 210,931 | ||||||
Direct cost of revenue: | |||||||||||||||||
Customers | — | 55,081 | 66,916 | — | 121,997 | ||||||||||||
Intercompany | — | 5,930 | 642 | (6,572 | ) | — | |||||||||||
— | 61,011 | 67,558 | (6,572 | ) | 121,997 | ||||||||||||
Gross profit | — | 48,199 | 40,735 | — | 88,934 | ||||||||||||
Operating expenses | 874 | 42,025 | 38,739 | — | 81,638 | ||||||||||||
Non-operating expenses (income) | 8,103 | (2,092 | ) | 2,669 | — | 8,680 | |||||||||||
Equity in earnings of subsidiaries | 2,288 | — | — | (2,288 | ) | — | |||||||||||
Income (loss) before income taxes | (11,265 | ) | 8,266 | (673 | ) | 2,288 | (1,384 | ) | |||||||||
Provision (benefit) for income taxes | (9,084 | ) | 9,886 | (5 | ) | — | 797 | ||||||||||
Net income (loss) | $ | (2,181 | ) | $ | (1,620 | ) | $ | (668 | ) | $ | 2,288 | $ | (2,181 | ) | |||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net revenue | $ | — | $ | 315,222 | $ | 332,156 | $ | (23,165 | ) | $ | 624,213 | ||||||
Direct cost of revenue: | |||||||||||||||||
Customers | — | 163,563 | 201,212 | — | 364,775 | ||||||||||||
Intercompany | — | 21,204 | 1,961 | (23,165 | ) | — | |||||||||||
— | 184,767 | 203,173 | (23,165 | ) | 364,775 | ||||||||||||
Gross profit | — | 130,455 | 128,983 | — | 259,438 | ||||||||||||
Operating expenses | 2,492 | 129,636 | 118,496 | — | 250,624 | ||||||||||||
Non-operating expenses (income) | 23,465 | (6,486 | ) | 6,161 | — | 23,140 | |||||||||||
Equity in earnings of subsidiaries | 430 | — | — | (430 | ) | — | |||||||||||
Income (loss) before income taxes | (26,387 | ) | 7,305 | 4,326 | 430 | (14,326 | ) | ||||||||||
Provision (benefit) for income taxes | (9,085 | ) | 8,111 | 3,950 | — | 2,976 | |||||||||||
Net income (loss) | $ | (17,302 | ) | $ | (806 | ) | $ | 376 | $ | 430 | $ | (17,302 | ) | ||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net income (loss) | $ | 2,604 | $ | (1,650 | ) | $ | 4,410 | $ | (2,760 | ) | $ | 2,604 | |||||
Other comprehensive income: | |||||||||||||||||
Change in unrealized gain on forward exchange contracts, net of tax | 1,714 | 1,113 | 601 | (1,714 | ) | 1,714 | |||||||||||
Change in cumulative translation adjustment | 2,443 | 1,734 | 709 | (2,443 | ) | 2,443 | |||||||||||
Comprehensive income (loss) | $ | 6,761 | $ | 1,197 | $ | 5,720 | $ | (6,917 | ) | $ | 6,761 | ||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net income (loss) | $ | (3,674 | ) | $ | 2,081 | $ | 12,333 | $ | (14,414 | ) | $ | (3,674 | ) | ||||
Other comprehensive income: | |||||||||||||||||
Change in unrealized gain on forward exchange contracts, net of tax | (8,477 | ) | (1,459 | ) | (7,018 | ) | 8,477 | (8,477 | ) | ||||||||
Change in cumulative translation adjustment | 835 | 1,213 | (378 | ) | (835 | ) | 835 | ||||||||||
Comprehensive income (loss) | $ | (11,316 | ) | $ | 1,835 | $ | 4,937 | $ | (6,772 | ) | $ | (11,316 | ) | ||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net income (loss) | $ | (2,181 | ) | $ | (1,620 | ) | $ | (668 | ) | $ | 2,288 | $ | (2,181 | ) | |||
Other comprehensive income: | |||||||||||||||||
Change in unrealized gain on forward exchange contracts, net of tax | 2,316 | 1,423 | 893 | (2,316 | ) | 2,316 | |||||||||||
Change in cumulative translation adjustment | 2,151 | 1,355 | 796 | (2,151 | ) | 2,151 | |||||||||||
Comprehensive income (loss) | $ | 2,286 | $ | 1,158 | $ | 1,021 | $ | (2,179 | ) | $ | 2,286 | ||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net income (loss) | $ | (17,302 | ) | $ | (806 | ) | $ | 376 | $ | 430 | $ | (17,302 | ) | ||||
Other comprehensive income: | |||||||||||||||||
Change in unrealized gain on forward exchange contracts, net of tax | 5,527 | 2,016 | 3,511 | (5,527 | ) | 5,527 | |||||||||||
Change in cumulative translation adjustment | (349 | ) | 19 | (368 | ) | 349 | (349 | ) | |||||||||
Comprehensive income (loss) | $ | (12,124 | ) | $ | 1,229 | $ | 3,519 | $ | (4,748 | ) | $ | (12,124 | ) | ||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 6 | $ | 1,614 | $ | 14,055 | $ | — | $ | 15,675 | |||||||
Accounts receivable, net | — | 150,709 | 37,668 | — | 188,377 | ||||||||||||
Intercompany receivable | 37,576 | — | 103,075 | (140,651 | ) | — | |||||||||||
Other current assets | 3,972 | 10,437 | 9,327 | — | 23,736 | ||||||||||||
Total current assets | 41,554 | 162,760 | 164,125 | (140,651 | ) | 227,788 | |||||||||||
Equipment and fixtures, net and other assets | — | 54,092 | 62,858 | — | 116,950 | ||||||||||||
Investment in subsidiaries | 456,947 | 134,288 | 17 | (591,252 | ) | — | |||||||||||
Intercompany receivable | — | 140,766 | — | (140,766 | ) | — | |||||||||||
Goodwill and intangible assets, net | — | 162,682 | 153,878 | — | 316,560 | ||||||||||||
Total assets | $ | 498,501 | $ | 654,588 | $ | 380,878 | $ | (872,669 | ) | $ | 661,298 | ||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Accounts payable | $ | — | $ | 8,939 | $ | 10,095 | $ | — | $ | 19,034 | |||||||
Accrued employee compensation and benefits | — | 21,372 | 50,456 | — | 71,828 | ||||||||||||
Other accrued expenses | 13,113 | 6,703 | 17,400 | — | 37,216 | ||||||||||||
Other current liabilities | 29,797 | 11,615 | 17,355 | — | 58,767 | ||||||||||||
Intercompany payable | — | 133,269 | 7,382 | (140,651 | ) | — | |||||||||||
Total current liabilities | 42,910 | 181,898 | 102,688 | (140,651 | ) | 186,845 | |||||||||||
Intercompany notes payable | 27,845 | — | 112,921 | (140,766 | ) | — | |||||||||||
Long-term liabilities | 228,053 | 26,771 | 19,936 | — | 274,760 | ||||||||||||
Total shareholders’ equity (deficit) | 199,693 | 445,919 | 145,333 | (591,252 | ) | 199,693 | |||||||||||
Total liabilities and stockholders’ equity | $ | 498,501 | $ | 654,588 | $ | 380,878 | $ | (872,669 | ) | $ | 661,298 | ||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 6 | $ | 9,975 | $ | 8,754 | $ | — | $ | 18,735 | |||||||
Accounts receivable, net | — | 146,078 | 18,851 | — | 164,929 | ||||||||||||
Intercompany receivable | 32,239 | — | 88,776 | (121,015 | ) | — | |||||||||||
Other current assets | 3,587 | 14,878 | 10,543 | — | 29,008 | ||||||||||||
Total current assets | 35,832 | 170,931 | 126,924 | (121,015 | ) | 212,672 | |||||||||||
Equipment and fixtures, net and other assets | 2,254 | 48,019 | 61,994 | — | 112,267 | ||||||||||||
Investment in subsidiaries | 450,175 | 74,783 | 17 | (524,975 | ) | — | |||||||||||
Intercompany receivable | — | 114,480 | — | (114,480 | ) | — | |||||||||||
Goodwill and intangible assets, net | — | 169,792 | 109,297 | — | 279,089 | ||||||||||||
Total assets | $ | 488,261 | $ | 578,005 | $ | 298,232 | $ | (760,470 | ) | $ | 604,028 | ||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Accounts payable | $ | — | $ | 7,485 | $ | 8,874 | $ | — | $ | 16,359 | |||||||
Accrued employee compensation and benefits | — | 18,467 | 39,568 | — | 58,035 | ||||||||||||
Other accrued expenses | 5,947 | 5,876 | 8,650 | — | 20,473 | ||||||||||||
Other current liabilities | — | 11,683 | 9,635 | — | 21,318 | ||||||||||||
Intercompany payable | — | 118,041 | 2,974 | (121,015 | ) | — | |||||||||||
Total current liabilities | 5,947 | 161,552 | 69,701 | (121,015 | ) | 116,185 | |||||||||||
Intercompany notes payable | 41,634 | — | 72,846 | (114,480 | ) | — | |||||||||||
Long-term liabilities | 230,784 | 31,915 | 15,248 | — | 277,947 | ||||||||||||
Total shareholders’ equity (deficit) | 209,896 | 384,538 | 140,437 | (524,975 | ) | 209,896 | |||||||||||
Total liabilities and stockholders’ equity | $ | 488,261 | $ | 578,005 | $ | 298,232 | $ | (760,470 | ) | $ | 604,028 | ||||||
Condensed Statements of Cash Flows | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | (6,591 | ) | $ | 26,604 | $ | 29,859 | $ | — | $ | 49,872 | ||||||
Cash flows from investing activities: | |||||||||||||||||
Net intercompany receivables | (5,337 | ) | (26,287 | ) | (14,299 | ) | 45,923 | — | |||||||||
Acquisition of business | — | — | (44,022 | ) | — | (44,022 | ) | ||||||||||
Cash acquired from acquisition | — | — | 5,217 | — | 5,217 | ||||||||||||
Additions to equipment and fixtures | — | (21,439 | ) | (9,708 | ) | — | (31,147 | ) | |||||||||
Net cash used in investing activities | (5,337 | ) | (47,726 | ) | (62,812 | ) | 45,923 | (69,952 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||||
Net borrowings (repayments) on line of credit | (4,884 | ) | — | — | — | (4,884 | ) | ||||||||||
Net borrowings (repayments) on long term debt | 30,601 | 3,182 | (1,100 | ) | — | 32,683 | |||||||||||
Net repayments on capital leases | — | (6,582 | ) | (2,412 | ) | — | (8,994 | ) | |||||||||
Net intercompany payables | (13,789 | ) | 15,448 | 44,264 | (45,923 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | 11,928 | 12,048 | 40,752 | (45,923 | ) | 18,805 | |||||||||||
Effect of exchange rates on cash and cash equivalents | — | 713 | (2,498 | ) | — | (1,785 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | — | (8,361 | ) | 5,301 | — | (3,060 | ) | ||||||||||
Cash and cash equivalents, beginning of period | 6 | 9,975 | 8,754 | — | 18,735 | ||||||||||||
Cash and cash equivalents, end of period | $ | 6 | $ | 1,614 | $ | 14,055 | $ | — | $ | 15,675 | |||||||
Condensed Statements of Cash Flows | |||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | (5,781 | ) | $ | 9,557 | $ | 29,607 | $ | — | $ | 33,383 | ||||||
Cash flows from investing activities: | |||||||||||||||||
Net intercompany receivables | (9,032 | ) | (31,610 | ) | (23,981 | ) | 64,623 | — | |||||||||
Investment in subsidiaries | — | (100 | ) | — | 100 | — | |||||||||||
Additions to equipment and fixtures | — | (11,214 | ) | (25,342 | ) | — | (36,556 | ) | |||||||||
Net cash used in investing activities | (9,032 | ) | (42,924 | ) | (49,323 | ) | 64,723 | (36,556 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||||
Net repayments on line of credit | (8,095 | ) | — | — | — | (8,095 | ) | ||||||||||
Net borrowings (repayments) on long term debt | — | 1,125 | 7,594 | — | 8,719 | ||||||||||||
Net repayments on capital leases | — | (6,687 | ) | (2,058 | ) | — | (8,745 | ) | |||||||||
Investment from parent | — | — | 100 | (100 | ) | — | |||||||||||
Net intercompany payables | 22,919 | 30,994 | 10,710 | (64,623 | ) | — | |||||||||||
Tax payments for withholding on restricted stock | (11 | ) | — | — | — | (11 | ) | ||||||||||
Net cash provided by (used in) financing activities | 14,813 | 25,432 | 16,346 | (64,723 | ) | (8,132 | ) | ||||||||||
Effect of exchange rates on cash and cash equivalents | — | 144 | (55 | ) | — | 89 | |||||||||||
Net decrease in cash and cash equivalents | — | (7,791 | ) | (3,425 | ) | — | (11,216 | ) | |||||||||
Cash and cash equivalents, beginning of period | 6 | 11,143 | 12,099 | — | 23,248 | ||||||||||||
Cash and cash equivalents, end of period | $ | 6 | $ | 3,352 | $ | 8,674 | $ | — | $ | 12,032 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Unaudited Interim Financial Information | ' | |||||||||||||
Unaudited Interim Financial Information | ||||||||||||||
The accompanying consolidated condensed financial statements as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly our financial position and results of operations and cash flows. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ended December 31, 2013, or for any other interim period or future year. | ||||||||||||||
Use of Estimates | ' | |||||||||||||
Use of Estimates | ||||||||||||||
The preparation of the consolidated condensed financial statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, we evaluate our estimates including those related to revenue recognition, the allowance for bad debts, derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, valuation of long-lived assets, self-insurance reserves, contingencies, litigation and restructuring liabilities, and goodwill and other intangible assets. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. | ||||||||||||||
Foreign Currency Translation and Derivative Instruments | ' | |||||||||||||
Foreign Currency Translation and Derivative Instruments | ||||||||||||||
The assets and liabilities of our foreign subsidiaries, for most of whom the functional currency is their local currency, are translated at the exchange rate in effect on the reporting date, and income and expenses are translated at the average exchange rate during the period. The net effect of translation gains and losses is not included in determining net income (loss), but is reflected in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity until the sale or until the liquidation of the net investment in the foreign subsidiary. Foreign currency transaction gains and losses are included in determining net income (loss), and are categorized as “Other expenses, net.” | ||||||||||||||
We account for derivative financial instruments utilizing the authoritative guidance in ASC 815, Derivatives and Hedging. We generally utilize forward contracts expiring within one to 24 months to reduce our foreign currency exposure due to exchange rate fluctuations on forecasted cash flows denominated in non-functional foreign currencies. Upon proper designation, certain of these contracts are accounted for as cash-flow hedges, as defined by the authoritative guidance. These contracts are entered into to protect against the risk that the value of the eventual cash flows resulting from such transactions will be adversely affected by changes in exchange rates. In using derivative financial instruments to hedge exposures to changes in exchange rates, we expose ourselves to counterparty credit risk. We do not believe that we are exposed to a concentration of credit risk with our derivative financial instruments as the counterparties are well established institutions and counterparty credit risk information is monitored on an ongoing basis. | ||||||||||||||
Unrealized gains and losses on all derivatives, including foreign currency forward contracts, are recognized in “Other current assets”, “Other current liabilities”, “Other assets, long term”, or Other long-term liabilities” on the balance sheet at fair value. Fair values for our derivative financial instruments are based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions. On the date the derivative contract is entered into, we determine whether the derivative contract should be designated as a cash flow hedge. Changes in the fair value of derivatives that are highly effective and designated as cash flow hedges are recorded in “Accumulated other comprehensive loss,” until the forecasted underlying transactions occur. To date we have not experienced any hedge ineffectiveness of our cash flow hedges that we intended to be effective. Any realized gains or losses resulting from the cash flow hedges are recognized together with the hedged transaction within “Direct cost of revenue.” Cash flows from the derivative contracts are classified within “Cash flows from operating activities.” Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. | ||||||||||||||
We may also enter into derivative contracts that are intended to economically hedge certain risks, even though we do not qualify for or elect not to apply hedge accounting as defined by the authoritative guidance. | ||||||||||||||
Changes in fair value of derivatives not designated as cash flow hedges are reported in “Other expenses, net.” Upon settlement of the derivatives not qualifying as cash flow hedges, a gain or loss is reported in “Other expenses, net.” | ||||||||||||||
We formally document all relationships between hedging instruments and hedged items, as well as our risk management objective and strategy for undertaking various hedging activities. This process includes linking all derivatives that are designated as cash flow hedges to forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis (as required), whether the derivatives that are used in cash flow hedging transactions are highly effective in offsetting changes in cash flows of hedged items on a prospective and retrospective basis. When it is determined that a derivative is not highly effective as a cash flow hedge or that it has ceased to be a highly effective hedge or if a forecasted transaction is no longer probable of occurring, we discontinue hedge accounting prospectively. At September 30, 2013, all hedges were determined to be highly effective, except for certain hedges where we elect not to apply hedge accounting as defined by the authoritative guidance. | ||||||||||||||
Our hedging program has been effective in all periods presented and the amount of hedge ineffectiveness has not been material. | ||||||||||||||
As of September 30, 2013, we had the following open foreign currency contracts: | ||||||||||||||
Foreign Currency | Notional Amounts | Net Unrealized | ||||||||||||
(in US Dollars) | Gain (Loss) | |||||||||||||
Canadian Dollar | $ | 45,142 | $ | (489 | ) | |||||||||
Philippine Peso | 234,162 | (2,966 | ) | |||||||||||
Indian Rupee | 17,956 | (266 | ) | |||||||||||
Euro | 2,283 | 22 | ||||||||||||
British Pound | 21,951 | (470 | ) | |||||||||||
$ | 321,494 | $ | (4,169 | ) | ||||||||||
The table below summarizes the carrying values of derivative instruments as of September 30, 2013 and December 31, 2012: | ||||||||||||||
Carrying Values of Derivative Instruments as of | ||||||||||||||
September 30, 2013 | ||||||||||||||
Fair Value – | Fair Value – | Derivative Net | ||||||||||||
Assets | (Liabilities) | Carrying Value | ||||||||||||
Total derivatives designated as hedging instruments (1) | $ | 219 | $ | (5,414 | ) | $ | (5,195 | ) | ||||||
Total derivatives not designated as hedging instruments (1) | 1,613 | (587 | ) | 1,026 | ||||||||||
Total derivatives | $ | 1,832 | $ | (6,001 | ) | $ | (4,169 | ) | ||||||
Carrying Values of Derivative Instruments as of | ||||||||||||||
December 31, 2012 | ||||||||||||||
Fair Value – | Fair Value – | Derivative Net | ||||||||||||
Assets | (Liabilities) | Carrying Value | ||||||||||||
Total derivatives designated as hedging instruments (1) | $ | 3,623 | $ | (65 | ) | $ | 3,558 | |||||||
Total derivatives not designated as hedging instruments (1) | 382 | (138 | ) | 244 | ||||||||||
Total derivatives | $ | 4,005 | $ | (203 | ) | $ | 3,802 | |||||||
(1) Assets are included in “Other current assets” or “Other assets, long term” and liabilities are included in “Other current liabilities” or “Other long-term liabilities” on the accompanying consolidated balance sheets. | ||||||||||||||
As of September 30, 2013 and December 31, 2012, $4,987 of unrealized losses and $3,555 of unrealized gains, respectively, may be reclassified from other comprehensive income (loss) to earnings within the next 12 months based on current foreign exchange rates. As of September 30, 2013 and December 31, 2012, included in other current liabilities is $883 and included in other current assets is $586, respectively, of fair market value of derivatives designated as cash flow hedges that were acquired from a commercial bank in which one of our financial sponsors owns a non-controlling interest. | ||||||||||||||
The following table presents the impact of derivative instruments on the consolidated condensed statements of operations for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Derivatives designated as hedging instruments | $ | 2,047 | $ | (218 | ) | $ | 1,041 | $ | 120 | |||||
Derivatives not designated as hedging instruments | 586 | (589 | ) | 2,214 | (1,483 | ) | ||||||||
Total | $ | 2,633 | $ | (807 | ) | $ | 3,255 | $ | (1,363 | ) | ||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
The following table presents information about our assets and liabilities and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability: | ||||||||||||||
September 30, | Quoted Prices in | Significant Other | Significant | |||||||||||
2013 | Active Markets | Observable | Unobservable | |||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||
Description | ||||||||||||||
Forward exchange contracts | $ | (4,169 | ) | $ | — | $ | (4,169 | ) | $ | — | ||||
Total | $ | (4,169 | ) | $ | — | $ | (4,169 | ) | $ | — | ||||
December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||
2012 | Active Markets | Observable | Unobservable | |||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||
Description | ||||||||||||||
Forward exchange contracts | $ | 3,802 | $ | — | $ | 3,802 | $ | — | ||||||
Total | $ | 3,802 | $ | — | $ | 3,802 | $ | — | ||||||
The fair values of our forward exchange contracts are determined through market, observable and corroborated sources. | ||||||||||||||
The carrying amounts reflected in the consolidated balance sheets for other current assets, accounts payable, and other liabilities approximate fair value due to their short-term maturities. To the extent we have any outstanding borrowings under our revolving credit facility, the fair value would approximate its reported value because the interest rate is variable and reflects current market rates. | ||||||||||||||
At September 30, 2013, the fair value of our long term debt was $231,610. The fair value of our long term debt is determined from financial market quotations. | ||||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued guidance adding new disclosure requirements for items reclassified out of accumulated other comprehensive income (“AOCI”). We implemented these requirements in the first quarter of 2013. The guidance is intended to help entities improve the transparency of changes in other comprehensive income (“OCI”) and items reclassified out of AOCI in financial statements. It does not amend any existing requirements for reporting net income or OCI in financial statements. The implementation of the guidance did not have a material impact on our consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Schedule of open foreign currency contracts | ' | |||||||||||||
Foreign Currency | Notional Amounts | Net Unrealized | ||||||||||||
(in US Dollars) | Gain (Loss) | |||||||||||||
Canadian Dollar | $ | 45,142 | $ | (489 | ) | |||||||||
Philippine Peso | 234,162 | (2,966 | ) | |||||||||||
Indian Rupee | 17,956 | (266 | ) | |||||||||||
Euro | 2,283 | 22 | ||||||||||||
British Pound | 21,951 | (470 | ) | |||||||||||
$ | 321,494 | $ | (4,169 | ) | ||||||||||
Schedule of carrying values of derivative instruments | ' | |||||||||||||
Carrying Values of Derivative Instruments as of | ||||||||||||||
September 30, 2013 | ||||||||||||||
Fair Value – | Fair Value – | Derivative Net | ||||||||||||
Assets | (Liabilities) | Carrying Value | ||||||||||||
Total derivatives designated as hedging instruments (1) | $ | 219 | $ | (5,414 | ) | $ | (5,195 | ) | ||||||
Total derivatives not designated as hedging instruments (1) | 1,613 | (587 | ) | 1,026 | ||||||||||
Total derivatives | $ | 1,832 | $ | (6,001 | ) | $ | (4,169 | ) | ||||||
Carrying Values of Derivative Instruments as of | ||||||||||||||
December 31, 2012 | ||||||||||||||
Fair Value – | Fair Value – | Derivative Net | ||||||||||||
Assets | (Liabilities) | Carrying Value | ||||||||||||
Total derivatives designated as hedging instruments (1) | $ | 3,623 | $ | (65 | ) | $ | 3,558 | |||||||
Total derivatives not designated as hedging instruments (1) | 382 | (138 | ) | 244 | ||||||||||
Total derivatives | $ | 4,005 | $ | (203 | ) | $ | 3,802 | |||||||
(1) Assets are included in “Other current assets” or “Other assets, long term” and liabilities are included in “Other current liabilities” or “Other long-term liabilities” on the accompanying consolidated balance sheets. | ||||||||||||||
Schedule of the impact of derivative instruments on the consolidated condensed statements of operations | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Derivatives designated as hedging instruments | $ | 2,047 | $ | (218 | ) | $ | 1,041 | $ | 120 | |||||
Derivatives not designated as hedging instruments | 586 | (589 | ) | 2,214 | (1,483 | ) | ||||||||
Total | $ | 2,633 | $ | (807 | ) | $ | 3,255 | $ | (1,363 | ) | ||||
Fair value information about assets and liabilities | ' | |||||||||||||
September 30, | Quoted Prices in | Significant Other | Significant | |||||||||||
2013 | Active Markets | Observable | Unobservable | |||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||
Description | ||||||||||||||
Forward exchange contracts | $ | (4,169 | ) | $ | — | $ | (4,169 | ) | $ | — | ||||
Total | $ | (4,169 | ) | $ | — | $ | (4,169 | ) | $ | — | ||||
December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||
2012 | Active Markets | Observable | Unobservable | |||||||||||
(Level 1) | Inputs (Level 2) | (Level 3) | ||||||||||||
Description | ||||||||||||||
Forward exchange contracts | $ | 3,802 | $ | — | $ | 3,802 | $ | — | ||||||
Total | $ | 3,802 | $ | — | $ | 3,802 | $ | — |
Acquisitions_Tables
Acquisitions (Tables) (LBM) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
LBM | ' | ||||||
Acquisitions | ' | ||||||
Summary of the fair values of the identifiable assets acquired and liabilities assumed | ' | ||||||
Final Purchase | |||||||
Price Allocation | |||||||
Current assets | $ | 17,812 | |||||
Property and equipment | 6,866 | ||||||
Goodwill | 26,227 | ||||||
Intangible assets | 18,614 | ||||||
Total assets acquired | 69,519 | ||||||
Current liabilities | 19,332 | ||||||
Other liabilities | 9,020 | ||||||
Total liabilities | 28,352 | ||||||
Allocated purchase price | $ | 41,167 | |||||
Schedule of intangible assets acquired and the related amortization periods | ' | ||||||
Estimated | Gross | ||||||
useful life | cost | ||||||
Customer relationships | 7 years | $ | 11,973 | ||||
Non-compete agreements | 2 years | 2,817 | |||||
Trade names | 4 years | 704 | |||||
Other | 3 years | 3,120 | |||||
$ | 18,614 | ||||||
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Goodwill and Intangibles | ' | ||||||||||||||||||||||
Schedule of roll-forward of goodwill | ' | ||||||||||||||||||||||
Balance at December 31, 2012 | $ | 226,749 | |||||||||||||||||||||
Acquisition of LBM | 26,227 | ||||||||||||||||||||||
Acquisition of N2SP | 111 | ||||||||||||||||||||||
Currency translation effect | 789 | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 253,876 | |||||||||||||||||||||
Schedule of intangible assets | ' | ||||||||||||||||||||||
Estimated | Weighted | Gross | Accumulated | Currency | Net | ||||||||||||||||||
useful life | average | cost | amortization | translation | |||||||||||||||||||
remaining | effect | ||||||||||||||||||||||
life | |||||||||||||||||||||||
Customer relationships | Up to 10 years | 2.8 | $ | 113,337 | $ | (72,680 | ) | $ | 338 | $ | 40,995 | ||||||||||||
Technology-based intangible assets | 3 to 5 years | 1.5 | 5,340 | (2,418 | ) | 74 | 2,996 | ||||||||||||||||
Non-compete agreements | 2 years | 1.8 | 2,817 | (910 | ) | 66 | 1,973 | ||||||||||||||||
Trade names | 4 years | 2.2 | 801 | (200 | ) | 19 | 620 | ||||||||||||||||
Trade names - indefinite | Indefinite | Indefinite | 16,100 | — | — | 16,100 | |||||||||||||||||
$ | 138,395 | $ | (76,208 | ) | $ | 497 | $ | 62,684 | |||||||||||||||
Schedule of future amortization expense of intangible assets for the next five years and thereafter | ' | ||||||||||||||||||||||
Remainder of | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||||
2013 | |||||||||||||||||||||||
Amortization | $ | 4,207 | $ | 13,218 | $ | 10,124 | $ | 7,461 | $ | 5,521 | $ | 4,680 | $ | 1,373 | |||||||||
Severance_Restructuring_and_Ot1
Severance, Restructuring and Other Charges, Net (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Severance, Restructuring and Other Charges, Net | ' | |||||||||||||
Summary of severance, restructuring and other charges, net | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Severance | $ | 1,165 | $ | 1,461 | $ | 3,560 | $ | 5,254 | ||||||
Location exit charges, net | 1,091 | 1,668 | 2,546 | 4,739 | ||||||||||
Transaction related expenses and other | 1,375 | 290 | 4,145 | 2,878 | ||||||||||
Severance, restructuring and other charges, net | $ | 3,631 | $ | 3,419 | $ | 10,251 | $ | 12,871 | ||||||
Schedule of the activity in the Company's restructuring and other liabilities, which are included in liabilities | ' | |||||||||||||
Reduction in | Closure of call | Transaction related | Total | |||||||||||
work-force | centers | expense | ||||||||||||
and severance | ||||||||||||||
Balance at December 31, 2012 | $ | 1,042 | $ | 1,810 | $ | 470 | $ | 3,322 | ||||||
Expense | 3,560 | 2,546 | 4,145 | 10,251 | ||||||||||
Cash Paid | (4,054 | ) | (3,827 | ) | (4,003 | ) | (11,884 | ) | ||||||
Balance at September 30, 2013 | $ | 548 | $ | 529 | $ | 612 | $ | 1,689 |
Equipment_and_Fixtures_Net_Tab
Equipment and Fixtures, Net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Equipment and Fixtures, Net | ' | |||||||
Schedule of equipment and fixtures, net | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Furniture and fixtures | $ | 23,701 | $ | 17,696 | ||||
Building improvements | 73,424 | 66,369 | ||||||
Computer equipment | 78,195 | 70,238 | ||||||
Software | 52,196 | 40,460 | ||||||
Telecom and other equipment | 58,456 | 55,418 | ||||||
Equipment and fixtures not yet placed in service | 8,440 | 1,380 | ||||||
$ | 294,412 | $ | 251,561 | |||||
Less: accumulated depreciation | (189,377 | ) | (154,710 | ) | ||||
$ | 105,035 | $ | 96,851 |
Accrued_Employee_Compensation_1
Accrued Employee Compensation and Benefits (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accrued Employee Compensation and Benefits | ' | |||||||
Schedule of accrued employee compensation and benefits | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Compensation related amounts | $ | 40,103 | $ | 28,386 | ||||
Vacation liabilities | 15,699 | 14,176 | ||||||
Medical and dental liabilities | 2,405 | 2,078 | ||||||
Employer taxes | 2,785 | 2,098 | ||||||
Statutory retirement plans | 10,463 | 10,860 | ||||||
Other benefit related liabilities | 373 | 437 | ||||||
$ | 71,828 | $ | 58,035 | |||||
Other_Accrued_Expenses_and_Oth1
Other Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Accrued Expenses and Other Liabilities | ' | |||||||
Schedule of other accrued expenses | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Professional fees | $ | 4,875 | $ | 3,560 | ||||
Accrued interest | 13,809 | 6,226 | ||||||
Occupancy expense | 3,432 | 2,108 | ||||||
Technology expense | 2,156 | 1,841 | ||||||
Value added and sales tax | 3,285 | 1,547 | ||||||
Other accrued expenses | 9,659 | 5,191 | ||||||
$ | 37,216 | $ | 20,473 | |||||
Schedule of other current liabilities | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Lease exit liability | $ | 307 | $ | 1,704 | ||||
Deferred revenue | 1,063 | 1,512 | ||||||
Market lease reserves | 285 | 946 | ||||||
Forward exchange contracts | 5,689 | 204 | ||||||
Other | 2,281 | 1,225 | ||||||
Total other current liabilities | $ | 9,625 | $ | 5,591 | ||||
Schedule of other long-term liabilities | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Deferred rent | $ | 5,236 | $ | 4,415 | ||||
Accrued income taxes | 6,519 | 11,143 | ||||||
Market lease reserves | 128 | 61 | ||||||
Asset retirement obligation | 3,717 | — | ||||||
Forward exchange contracts | 312 | — | ||||||
Other | 1,706 | 334 | ||||||
Total other long-term liabilities | $ | 17,618 | $ | 15,953 |
LongTerm_Debt_and_Revolving_Cr1
Long-Term Debt and Revolving Credit Facility (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Long-Term Debt and Revolving Credit Facility | ' | |||||||
Schedule of long-term borrowings | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Revolving line of credit | $ | 29,797 | $ | 34,680 | ||||
11.25% Senior Secured Notes | 230,000 | 200,000 | ||||||
Other | 16,378 | 14,904 | ||||||
276,175 | 249,584 | |||||||
Less: current portion | (37,860 | ) | (5,333 | ) | ||||
Less: discount on notes payable | (1,946 | ) | (3,897 | ) | ||||
Long-term debt | $ | 236,369 | $ | 240,354 | ||||
Schedule of minimum principal payments on long-term debt | ' | |||||||
Total | ||||||||
2013 | $ | 1,233 | ||||||
2014 | 267,689 | |||||||
2015 | 4,854 | |||||||
2016 | 1,106 | |||||||
2017 | 1,293 | |||||||
Total | $ | 276,175 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||
Schedule of components of accumulated other comprehensive loss | ' | |||||||||||||
Unrealized gain (loss) | Cumulative | Accumulated | ||||||||||||
on forward | translation | other | ||||||||||||
exchange | adjustment | comprehensive | ||||||||||||
contracts, net of | loss | |||||||||||||
tax | ||||||||||||||
Beginning balance December 31, 2012 | $ | 3,283 | $ | (9,928 | ) | $ | (6,645 | ) | ||||||
Current period other comprehensive income (loss) | (8,477 | ) | 835 | (7,642 | ) | |||||||||
Ending balance September 30, 2013 | $ | (5,194 | ) | $ | (9,093 | ) | $ | (14,287 | ) | |||||
Summary of activity in other comprehensive income (loss) related to forward exchange contracts held | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Change in fair value of forward exchange contracts, net of tax | $ | 3,141 | $ | 2,462 | $ | (7,937 | ) | $ | 3,380 | |||||
Amount reclassified to direct cost of revenue | (1,427 | ) | (146 | ) | (540 | ) | 2,147 | |||||||
Change in unrealized gains/losses on forward exchange contracts | $ | 1,714 | $ | 2,316 | $ | (8,477 | ) | $ | 5,527 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Taxes | ' | |||||||
Schedule of domestic and foreign source components of income (loss) before taxes | ' | |||||||
Nine months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
2013 | 2012 | |||||||
Total US | $ | (24,420 | ) | $ | (24,074 | ) | ||
Total Foreign | 20,640 | 9,748 | ||||||
Total | $ | (3,780 | ) | $ | (14,326 | ) | ||
Stock_Options_Tables
Stock Options (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
2008 Stock Incentive Plan | ' | |||||||||||
Stock Options | ' | |||||||||||
Schedule of assumptions used for the option grants | ' | |||||||||||
Nine months ended | ||||||||||||
September 30, | ||||||||||||
2012 | ||||||||||||
Option term (years) | 6.38 | |||||||||||
Volatility | 71.89 | % | ||||||||||
Risk-free interest rate | 1.14 — 1.43 | % | ||||||||||
Dividend yield | 0 | % | ||||||||||
Weighted-average grant date fair value per option granted | $ | 1.73 | ||||||||||
2012 Stock Incentive Plan | ' | |||||||||||
Stock Options | ' | |||||||||||
Schedule of assumptions used for the option grants | ' | |||||||||||
Nine months ended | ||||||||||||
September 30, | ||||||||||||
2013 | ||||||||||||
Option term (years) | 5 | |||||||||||
Volatility | 44.35 | % | ||||||||||
Risk-free interest rate | 0.88 | % | ||||||||||
Dividend yield | 0 | % | ||||||||||
Weighted-average grant date fair value per option granted | $ | 70.87 | ||||||||||
Schedule of stock options | ' | |||||||||||
Number | Weighted | Weighted | Weighted | |||||||||
of options | Average | Average | Average | |||||||||
Exercise | Fair | Remaining | ||||||||||
Price | Value | Contractual | ||||||||||
Term | ||||||||||||
(Years) | ||||||||||||
Outstanding at December 31, 2012 | 74.3 | $ | 425 | — | 6.82 | |||||||
Granted | 0.8 | 425 | $ | 70.87 | ||||||||
Exercised | — | — | ||||||||||
Forfeited | 5.6 | 425 | ||||||||||
Outstanding at September 30, 2013 | 69.5 | $ | 425 | 6.07 |
Geographic_Operations_and_Conc1
Geographic Operations and Concentrations (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Geographic Operations and Concentrations | ' | |||||||||||||
Schedule of geographic information regarding operations | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Revenues | ||||||||||||||
Americas | ||||||||||||||
United States | $ | 51,900 | $ | 52,131 | $ | 162,782 | $ | 146,416 | ||||||
Philippines | 55,506 | 50,122 | 165,017 | 149,486 | ||||||||||
Canada | 24,720 | 25,908 | 79,945 | 81,562 | ||||||||||
Others | 34,129 | 29,768 | 97,623 | 85,898 | ||||||||||
Total Americas | 166,255 | 157,929 | 505,367 | 463,362 | ||||||||||
EMEA | ||||||||||||||
Great Britain | 31,169 | — | 69,844 | — | ||||||||||
Others | 58,587 | 53,002 | 172,766 | 160,851 | ||||||||||
Total EMEA | 89,756 | 53,002 | 242,610 | 160,851 | ||||||||||
$ | 256,011 | $ | 210,931 | $ | 747,977 | $ | 624,213 | |||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Total assets: | ||||||||||||||
Americas | $ | 520,028 | $ | 536,149 | ||||||||||
EMEA | 141,270 | 67,879 | ||||||||||||
$ | 661,298 | $ | 604,028 | |||||||||||
Schedule of percentage of revenue for clients exceeding 10% of revenue | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Microsoft | 12 | % | 10 | % | 13 | % | 9 | % |
Guarantor_Financial_Informatio1
Guarantor Financial Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Guarantor Financial Information | ' | ||||||||||||||||
Condensed Consolidating Statement of Operations | ' | ||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net revenue | $ | — | $ | 109,849 | $ | 150,201 | $ | (4,039 | ) | $ | 256,011 | ||||||
Direct cost of revenue: | |||||||||||||||||
Customers | — | 58,677 | 91,949 | — | 150,626 | ||||||||||||
Intercompany | — | 3,165 | 874 | (4,039 | ) | — | |||||||||||
— | 61,842 | 92,823 | (4,039 | ) | 150,626 | ||||||||||||
Gross profit | — | 48,007 | 57,378 | — | 105,385 | ||||||||||||
Operating expenses | 465 | 45,069 | 49,485 | — | 95,019 | ||||||||||||
Non-operating expenses (income) | 8,734 | (748 | ) | 2,307 | — | 10,293 | |||||||||||
Equity in earnings of subsidiaries | (2,760 | ) | — | — | 2,760 | — | |||||||||||
Income (loss) before income taxes | (6,439 | ) | 3,686 | 5,586 | (2,760 | ) | 73 | ||||||||||
Provision (benefit) for income taxes | (9,043 | ) | 5,336 | 1,176 | — | (2,531 | ) | ||||||||||
Net income (loss) | $ | 2,604 | $ | (1,650 | ) | $ | 4,410 | $ | (2,760 | ) | $ | 2,604 | |||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net revenue | $ | — | $ | 335,165 | $ | 424,842 | $ | (12,030 | ) | $ | 747,977 | ||||||
Direct cost of revenue: | |||||||||||||||||
Customers | — | 182,141 | 260,690 | — | 442,831 | ||||||||||||
Intercompany | — | 9,905 | 2,125 | (12,030 | ) | — | |||||||||||
— | 192,046 | 262,815 | (12,030 | ) | 442,831 | ||||||||||||
Gross profit | — | 143,119 | 162,027 | — | 305,146 | ||||||||||||
Operating expenses | 1,254 | 139,333 | 141,541 | — | 282,128 | ||||||||||||
Non-operating expenses (income) | 25,871 | (4,910 | ) | 5,837 | — | 26,798 | |||||||||||
Equity in earnings of subsidiaries | (14,414 | ) | — | — | 14,414 | — | |||||||||||
Income (loss) before income taxes | (12,711 | ) | 8,696 | 14,649 | (14,414 | ) | (3,780 | ) | |||||||||
Provision (benefit) for income taxes | (9,037 | ) | 6,615 | 2,316 | — | (106 | ) | ||||||||||
Net income (loss) | $ | (3,674 | ) | $ | 2,081 | $ | 12,333 | $ | (14,414 | ) | $ | (3,674 | ) | ||||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net revenue | $ | — | $ | 109,210 | $ | 108,293 | $ | (6,572 | ) | $ | 210,931 | ||||||
Direct cost of revenue: | |||||||||||||||||
Customers | — | 55,081 | 66,916 | — | 121,997 | ||||||||||||
Intercompany | — | 5,930 | 642 | (6,572 | ) | — | |||||||||||
— | 61,011 | 67,558 | (6,572 | ) | 121,997 | ||||||||||||
Gross profit | — | 48,199 | 40,735 | — | 88,934 | ||||||||||||
Operating expenses | 874 | 42,025 | 38,739 | — | 81,638 | ||||||||||||
Non-operating expenses (income) | 8,103 | (2,092 | ) | 2,669 | — | 8,680 | |||||||||||
Equity in earnings of subsidiaries | 2,288 | — | — | (2,288 | ) | — | |||||||||||
Income (loss) before income taxes | (11,265 | ) | 8,266 | (673 | ) | 2,288 | (1,384 | ) | |||||||||
Provision (benefit) for income taxes | (9,084 | ) | 9,886 | (5 | ) | — | 797 | ||||||||||
Net income (loss) | $ | (2,181 | ) | $ | (1,620 | ) | $ | (668 | ) | $ | 2,288 | $ | (2,181 | ) | |||
Condensed Consolidating Statement of Operations | |||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net revenue | $ | — | $ | 315,222 | $ | 332,156 | $ | (23,165 | ) | $ | 624,213 | ||||||
Direct cost of revenue: | |||||||||||||||||
Customers | — | 163,563 | 201,212 | — | 364,775 | ||||||||||||
Intercompany | — | 21,204 | 1,961 | (23,165 | ) | — | |||||||||||
— | 184,767 | 203,173 | (23,165 | ) | 364,775 | ||||||||||||
Gross profit | — | 130,455 | 128,983 | — | 259,438 | ||||||||||||
Operating expenses | 2,492 | 129,636 | 118,496 | — | 250,624 | ||||||||||||
Non-operating expenses (income) | 23,465 | (6,486 | ) | 6,161 | — | 23,140 | |||||||||||
Equity in earnings of subsidiaries | 430 | — | — | (430 | ) | — | |||||||||||
Income (loss) before income taxes | (26,387 | ) | 7,305 | 4,326 | 430 | (14,326 | ) | ||||||||||
Provision (benefit) for income taxes | (9,085 | ) | 8,111 | 3,950 | — | 2,976 | |||||||||||
Net income (loss) | $ | (17,302 | ) | $ | (806 | ) | $ | 376 | $ | 430 | $ | (17,302 | ) | ||||
Condensed Consolidating Statement of Comprehensive Income | ' | ||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net income (loss) | $ | 2,604 | $ | (1,650 | ) | $ | 4,410 | $ | (2,760 | ) | $ | 2,604 | |||||
Other comprehensive income: | |||||||||||||||||
Change in unrealized gain on forward exchange contracts, net of tax | 1,714 | 1,113 | 601 | (1,714 | ) | 1,714 | |||||||||||
Change in cumulative translation adjustment | 2,443 | 1,734 | 709 | (2,443 | ) | 2,443 | |||||||||||
Comprehensive income (loss) | $ | 6,761 | $ | 1,197 | $ | 5,720 | $ | (6,917 | ) | $ | 6,761 | ||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net income (loss) | $ | (3,674 | ) | $ | 2,081 | $ | 12,333 | $ | (14,414 | ) | $ | (3,674 | ) | ||||
Other comprehensive income: | |||||||||||||||||
Change in unrealized gain on forward exchange contracts, net of tax | (8,477 | ) | (1,459 | ) | (7,018 | ) | 8,477 | (8,477 | ) | ||||||||
Change in cumulative translation adjustment | 835 | 1,213 | (378 | ) | (835 | ) | 835 | ||||||||||
Comprehensive income (loss) | $ | (11,316 | ) | $ | 1,835 | $ | 4,937 | $ | (6,772 | ) | $ | (11,316 | ) | ||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net income (loss) | $ | (2,181 | ) | $ | (1,620 | ) | $ | (668 | ) | $ | 2,288 | $ | (2,181 | ) | |||
Other comprehensive income: | |||||||||||||||||
Change in unrealized gain on forward exchange contracts, net of tax | 2,316 | 1,423 | 893 | (2,316 | ) | 2,316 | |||||||||||
Change in cumulative translation adjustment | 2,151 | 1,355 | 796 | (2,151 | ) | 2,151 | |||||||||||
Comprehensive income (loss) | $ | 2,286 | $ | 1,158 | $ | 1,021 | $ | (2,179 | ) | $ | 2,286 | ||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net income (loss) | $ | (17,302 | ) | $ | (806 | ) | $ | 376 | $ | 430 | $ | (17,302 | ) | ||||
Other comprehensive income: | |||||||||||||||||
Change in unrealized gain on forward exchange contracts, net of tax | 5,527 | 2,016 | 3,511 | (5,527 | ) | 5,527 | |||||||||||
Change in cumulative translation adjustment | (349 | ) | 19 | (368 | ) | 349 | (349 | ) | |||||||||
Comprehensive income (loss) | $ | (12,124 | ) | $ | 1,229 | $ | 3,519 | $ | (4,748 | ) | $ | (12,124 | ) | ||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 6 | $ | 1,614 | $ | 14,055 | $ | — | $ | 15,675 | |||||||
Accounts receivable, net | — | 150,709 | 37,668 | — | 188,377 | ||||||||||||
Intercompany receivable | 37,576 | — | 103,075 | (140,651 | ) | — | |||||||||||
Other current assets | 3,972 | 10,437 | 9,327 | — | 23,736 | ||||||||||||
Total current assets | 41,554 | 162,760 | 164,125 | (140,651 | ) | 227,788 | |||||||||||
Equipment and fixtures, net and other assets | — | 54,092 | 62,858 | — | 116,950 | ||||||||||||
Investment in subsidiaries | 456,947 | 134,288 | 17 | (591,252 | ) | — | |||||||||||
Intercompany receivable | — | 140,766 | — | (140,766 | ) | — | |||||||||||
Goodwill and intangible assets, net | — | 162,682 | 153,878 | — | 316,560 | ||||||||||||
Total assets | $ | 498,501 | $ | 654,588 | $ | 380,878 | $ | (872,669 | ) | $ | 661,298 | ||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Accounts payable | $ | — | $ | 8,939 | $ | 10,095 | $ | — | $ | 19,034 | |||||||
Accrued employee compensation and benefits | — | 21,372 | 50,456 | — | 71,828 | ||||||||||||
Other accrued expenses | 13,113 | 6,703 | 17,400 | — | 37,216 | ||||||||||||
Other current liabilities | 29,797 | 11,615 | 17,355 | — | 58,767 | ||||||||||||
Intercompany payable | — | 133,269 | 7,382 | (140,651 | ) | — | |||||||||||
Total current liabilities | 42,910 | 181,898 | 102,688 | (140,651 | ) | 186,845 | |||||||||||
Intercompany notes payable | 27,845 | — | 112,921 | (140,766 | ) | — | |||||||||||
Long-term liabilities | 228,053 | 26,771 | 19,936 | — | 274,760 | ||||||||||||
Total shareholders’ equity (deficit) | 199,693 | 445,919 | 145,333 | (591,252 | ) | 199,693 | |||||||||||
Total liabilities and stockholders’ equity | $ | 498,501 | $ | 654,588 | $ | 380,878 | $ | (872,669 | ) | $ | 661,298 | ||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 6 | $ | 9,975 | $ | 8,754 | $ | — | $ | 18,735 | |||||||
Accounts receivable, net | — | 146,078 | 18,851 | — | 164,929 | ||||||||||||
Intercompany receivable | 32,239 | — | 88,776 | (121,015 | ) | — | |||||||||||
Other current assets | 3,587 | 14,878 | 10,543 | — | 29,008 | ||||||||||||
Total current assets | 35,832 | 170,931 | 126,924 | (121,015 | ) | 212,672 | |||||||||||
Equipment and fixtures, net and other assets | 2,254 | 48,019 | 61,994 | — | 112,267 | ||||||||||||
Investment in subsidiaries | 450,175 | 74,783 | 17 | (524,975 | ) | — | |||||||||||
Intercompany receivable | — | 114,480 | — | (114,480 | ) | — | |||||||||||
Goodwill and intangible assets, net | — | 169,792 | 109,297 | — | 279,089 | ||||||||||||
Total assets | $ | 488,261 | $ | 578,005 | $ | 298,232 | $ | (760,470 | ) | $ | 604,028 | ||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||
Accounts payable | $ | — | $ | 7,485 | $ | 8,874 | $ | — | $ | 16,359 | |||||||
Accrued employee compensation and benefits | — | 18,467 | 39,568 | — | 58,035 | ||||||||||||
Other accrued expenses | 5,947 | 5,876 | 8,650 | — | 20,473 | ||||||||||||
Other current liabilities | — | 11,683 | 9,635 | — | 21,318 | ||||||||||||
Intercompany payable | — | 118,041 | 2,974 | (121,015 | ) | — | |||||||||||
Total current liabilities | 5,947 | 161,552 | 69,701 | (121,015 | ) | 116,185 | |||||||||||
Intercompany notes payable | 41,634 | — | 72,846 | (114,480 | ) | — | |||||||||||
Long-term liabilities | 230,784 | 31,915 | 15,248 | — | 277,947 | ||||||||||||
Total shareholders’ equity (deficit) | 209,896 | 384,538 | 140,437 | (524,975 | ) | 209,896 | |||||||||||
Total liabilities and stockholders’ equity | $ | 488,261 | $ | 578,005 | $ | 298,232 | $ | (760,470 | ) | $ | 604,028 | ||||||
Condensed Statements of Cash Flows | ' | ||||||||||||||||
Condensed Statements of Cash Flows | |||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | (6,591 | ) | $ | 26,604 | $ | 29,859 | $ | — | $ | 49,872 | ||||||
Cash flows from investing activities: | |||||||||||||||||
Net intercompany receivables | (5,337 | ) | (26,287 | ) | (14,299 | ) | 45,923 | — | |||||||||
Acquisition of business | — | — | (44,022 | ) | — | (44,022 | ) | ||||||||||
Cash acquired from acquisition | — | — | 5,217 | — | 5,217 | ||||||||||||
Additions to equipment and fixtures | — | (21,439 | ) | (9,708 | ) | — | (31,147 | ) | |||||||||
Net cash used in investing activities | (5,337 | ) | (47,726 | ) | (62,812 | ) | 45,923 | (69,952 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||||
Net borrowings (repayments) on line of credit | (4,884 | ) | — | — | — | (4,884 | ) | ||||||||||
Net borrowings (repayments) on long term debt | 30,601 | 3,182 | (1,100 | ) | — | 32,683 | |||||||||||
Net repayments on capital leases | — | (6,582 | ) | (2,412 | ) | — | (8,994 | ) | |||||||||
Net intercompany payables | (13,789 | ) | 15,448 | 44,264 | (45,923 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | 11,928 | 12,048 | 40,752 | (45,923 | ) | 18,805 | |||||||||||
Effect of exchange rates on cash and cash equivalents | — | 713 | (2,498 | ) | — | (1,785 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | — | (8,361 | ) | 5,301 | — | (3,060 | ) | ||||||||||
Cash and cash equivalents, beginning of period | 6 | 9,975 | 8,754 | — | 18,735 | ||||||||||||
Cash and cash equivalents, end of period | $ | 6 | $ | 1,614 | $ | 14,055 | $ | — | $ | 15,675 | |||||||
Condensed Statements of Cash Flows | |||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Parent | Guarantor | Non- | Elimination | Total | |||||||||||||
subsidiaries | Guarantor | ||||||||||||||||
subsidiaries | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | (5,781 | ) | $ | 9,557 | $ | 29,607 | $ | — | $ | 33,383 | ||||||
Cash flows from investing activities: | |||||||||||||||||
Net intercompany receivables | (9,032 | ) | (31,610 | ) | (23,981 | ) | 64,623 | — | |||||||||
Investment in subsidiaries | — | (100 | ) | — | 100 | — | |||||||||||
Additions to equipment and fixtures | — | (11,214 | ) | (25,342 | ) | — | (36,556 | ) | |||||||||
Net cash used in investing activities | (9,032 | ) | (42,924 | ) | (49,323 | ) | 64,723 | (36,556 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||||
Net repayments on line of credit | (8,095 | ) | — | — | — | (8,095 | ) | ||||||||||
Net borrowings (repayments) on long term debt | — | 1,125 | 7,594 | — | 8,719 | ||||||||||||
Net repayments on capital leases | — | (6,687 | ) | (2,058 | ) | — | (8,745 | ) | |||||||||
Investment from parent | — | — | 100 | (100 | ) | — | |||||||||||
Net intercompany payables | 22,919 | 30,994 | 10,710 | (64,623 | ) | — | |||||||||||
Tax payments for withholding on restricted stock | (11 | ) | — | — | — | (11 | ) | ||||||||||
Net cash provided by (used in) financing activities | 14,813 | 25,432 | 16,346 | (64,723 | ) | (8,132 | ) | ||||||||||
Effect of exchange rates on cash and cash equivalents | — | 144 | (55 | ) | — | 89 | |||||||||||
Net decrease in cash and cash equivalents | — | (7,791 | ) | (3,425 | ) | — | (11,216 | ) | |||||||||
Cash and cash equivalents, beginning of period | 6 | 11,143 | 12,099 | — | 23,248 | ||||||||||||
Cash and cash equivalents, end of period | $ | 6 | $ | 3,352 | $ | 8,674 | $ | — | $ | 12,032 | |||||||
Our_Business_Details
Our Business (Details) | Sep. 30, 2013 |
country | |
servicecenter | |
language | |
Our Business | ' |
Languages supported | 35 |
Number of locations | 56 |
Number of countries | 22 |
Basis_of_Presentation_Details
Basis of Presentation (Details) (Reclassification, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 |
Reclassification | ' |
Basis of Presentation | ' |
Increased net cash provided by operating activities due to reclassification of cash and accounts payable | $1,254 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Carrying Values of Derivative Instruments | ' | ' | ' | ' | ' |
Fair Value Assets | $1,832 | ' | $1,832 | ' | $4,005 |
Fair Value (Liabilities) | -6,001 | ' | -6,001 | ' | -203 |
Derivative Net Carrying Value | -4,169 | ' | -4,169 | ' | 3,802 |
Unrealized (losses) and gains, reclassified from other comprehensive income (loss) to earnings | -4,987 | ' | -4,987 | ' | 3,555 |
Total | 2,633 | -807 | 3,255 | -1,363 | ' |
Unrealized losses reclassified from other comprehensive income to earnings | ' | ' | '12 months | ' | ' |
Minimum | ' | ' | ' | ' | ' |
Carrying Values of Derivative Instruments | ' | ' | ' | ' | ' |
Forward contracts utilized, expiration period | ' | ' | '1 month | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Carrying Values of Derivative Instruments | ' | ' | ' | ' | ' |
Forward contracts utilized, expiration period | ' | ' | '24 months | ' | ' |
Commercial bank in which one of company's financial sponsors owns a non-controlling interest | ' | ' | ' | ' | ' |
Carrying Values of Derivative Instruments | ' | ' | ' | ' | ' |
Fair market value of derivatives designated as cash flow hedges included in current assets | 586 | ' | 586 | ' | 586 |
Fair market value of derivatives designated as cash flow hedges included in current liabilities | 883 | ' | 883 | ' | 883 |
Forward exchange contracts | ' | ' | ' | ' | ' |
Derivative instruments | ' | ' | ' | ' | ' |
Notional Amounts | 321,494 | ' | 321,494 | ' | ' |
Net Unrealized Gain (Loss) | -4,169 | ' | -4,169 | ' | ' |
Designated as hedging instruments | ' | ' | ' | ' | ' |
Carrying Values of Derivative Instruments | ' | ' | ' | ' | ' |
Fair Value Assets | 219 | ' | 219 | ' | 3,623 |
Fair Value (Liabilities) | -5,414 | ' | -5,414 | ' | -65 |
Derivative Net Carrying Value | -5,195 | ' | -5,195 | ' | 3,558 |
Gains on Hedges deemed effective cash flow hedges | 2,047 | -218 | 1,041 | 120 | ' |
Not designated as hedging instruments | ' | ' | ' | ' | ' |
Carrying Values of Derivative Instruments | ' | ' | ' | ' | ' |
Fair Value Assets | 1,613 | ' | 1,613 | ' | 382 |
Fair Value (Liabilities) | -587 | ' | -587 | ' | -138 |
Derivative Net Carrying Value | 1,026 | ' | 1,026 | ' | 244 |
Gains (losses) on hedges which do not apply hedge accounting | 586 | -589 | 2,214 | -1,483 | ' |
Canadian Dollar | Forward exchange contracts | ' | ' | ' | ' | ' |
Derivative instruments | ' | ' | ' | ' | ' |
Notional Amounts | 45,142 | ' | 45,142 | ' | ' |
Net Unrealized Gain (Loss) | -489 | ' | -489 | ' | ' |
Philippine Peso | Forward exchange contracts | ' | ' | ' | ' | ' |
Derivative instruments | ' | ' | ' | ' | ' |
Notional Amounts | 234,162 | ' | 234,162 | ' | ' |
Net Unrealized Gain (Loss) | -2,966 | ' | -2,966 | ' | ' |
Indian Rupee | Forward exchange contracts | ' | ' | ' | ' | ' |
Derivative instruments | ' | ' | ' | ' | ' |
Notional Amounts | 17,956 | ' | 17,956 | ' | ' |
Net Unrealized Gain (Loss) | -266 | ' | -266 | ' | ' |
Euro | Forward exchange contracts | ' | ' | ' | ' | ' |
Derivative instruments | ' | ' | ' | ' | ' |
Notional Amounts | 2,283 | ' | 2,283 | ' | ' |
Net Unrealized Gain (Loss) | 22 | ' | 22 | ' | ' |
British Pound | Forward exchange contracts | ' | ' | ' | ' | ' |
Derivative instruments | ' | ' | ' | ' | ' |
Notional Amounts | 21,951 | ' | 21,951 | ' | ' |
Net Unrealized Gain (Loss) | ($470) | ' | ($470) | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair value of assets and liabilities and fair value hierarchy of valuation techniques utilized | ' | ' |
Total | ($4,169) | $3,802 |
Total at Balance Sheet Date | ' | ' |
Fair value of assets and liabilities and fair value hierarchy of valuation techniques utilized | ' | ' |
Total | -4,169 | 3,802 |
Fair value of long term debt | 231,610 | ' |
Total at Balance Sheet Date | Forward exchange contracts | ' | ' |
Fair value of assets and liabilities and fair value hierarchy of valuation techniques utilized | ' | ' |
Total | -4,169 | 3,802 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair value of assets and liabilities and fair value hierarchy of valuation techniques utilized | ' | ' |
Total | -4,169 | 3,802 |
Significant Other Observable Inputs (Level 2) | Forward exchange contracts | ' | ' |
Fair value of assets and liabilities and fair value hierarchy of valuation techniques utilized | ' | ' |
Total | ($4,169) | $3,802 |
Acquisitions_Details
Acquisitions (Details) (USD $) | Feb. 25, 2013 | Sep. 30, 2013 | Feb. 25, 2013 | Aug. 20, 2013 |
In Thousands, unless otherwise specified | LBM | LBM | N2SP | |
Location | ||||
Subsidiary | ||||
Employee | ||||
Acquisitions | ' | ' | ' | ' |
Purchase price | ' | ' | ' | $2,855 |
Number of subsidiaries of acquired company | ' | ' | 2 | ' |
Number of employees of acquired company | ' | ' | 2,500 | ' |
Number of locations of acquired company | ' | ' | 6 | ' |
Fair values of the identifiable assets acquired and liabilities assumed | ' | ' | ' | ' |
Current assets | ' | 17,812 | ' | ' |
Property and equipment | ' | 6,866 | ' | ' |
Goodwill | ' | 26,227 | ' | ' |
Intangible assets | 18,614 | 18,614 | ' | ' |
Total assets acquired | ' | 69,519 | ' | ' |
Current liabilities | ' | 19,332 | ' | ' |
Other liabilities | ' | 9,020 | ' | ' |
Total liabilities | ' | 28,352 | ' | ' |
Allocated purchase price | ' | $41,167 | ' | ' |
Acquisitions_Details_2
Acquisitions (Details 2) (USD $) | Feb. 25, 2013 | Feb. 25, 2013 | Feb. 25, 2013 | Feb. 25, 2013 | Feb. 25, 2013 | Aug. 20, 2013 |
In Thousands, unless otherwise specified | Customer relationships | Non-compete agreements | Trade names | Other | N2SP | |
Customer relationships | ||||||
Acquired Intangible assets | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | '7 years | '2 years | '4 years | '3 years | ' |
Gross cost | $18,614 | $11,973 | $2,817 | $704 | $3,120 | $2,615 |
Goodwill_and_Intangibles_Detai
Goodwill and Intangibles (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2013 |
Intangible assets | ' | ' |
Impairment of goodwill | $0 | ' |
Impairment of indefinite lived intangible assets | 0 | ' |
Impairments recorded on finite lived assets | ' | 0 |
Gross cost | ' | 138,395 |
Accumulated amortization | ' | -76,208 |
Finite-Lived Intangible Assets, Translation Adjustments | ' | 497 |
Net | 52,340 | 62,684 |
Roll-forward of goodwill | ' | ' |
Goodwill at the beginning of the period | ' | 226,749 |
Currency translation effect | ' | 789 |
Goodwill at the end of the period | 226,749 | 253,876 |
Trade names | ' | ' |
Intangible assets | ' | ' |
Gross cost | ' | 16,100 |
Net | ' | 16,100 |
Customer relationships | ' | ' |
Intangible assets | ' | ' |
Gross cost | ' | 113,337 |
Accumulated amortization | ' | -72,680 |
Finite-Lived Intangible Assets, Translation Adjustments | ' | 338 |
Net | ' | 40,995 |
Customer relationships | Maximum | ' | ' |
Intangible assets | ' | ' |
Estimated useful life | ' | '10 years |
Customer relationships | Weighted average | ' | ' |
Intangible assets | ' | ' |
Weighted average remaining life | ' | '2 years 9 months 18 days |
Technology-based intangible assets | ' | ' |
Intangible assets | ' | ' |
Gross cost | ' | 5,340 |
Accumulated amortization | ' | -2,418 |
Finite-Lived Intangible Assets, Translation Adjustments | ' | 74 |
Net | ' | 2,996 |
Technology-based intangible assets | Minimum | ' | ' |
Intangible assets | ' | ' |
Estimated useful life | ' | '3 years |
Technology-based intangible assets | Maximum | ' | ' |
Intangible assets | ' | ' |
Estimated useful life | ' | '5 years |
Technology-based intangible assets | Weighted average | ' | ' |
Intangible assets | ' | ' |
Weighted average remaining life | ' | '1 year 6 months |
Non-compete agreements | ' | ' |
Intangible assets | ' | ' |
Estimated useful life | ' | '2 years |
Gross cost | ' | 2,817 |
Accumulated amortization | ' | -910 |
Finite-Lived Intangible Assets, Translation Adjustments | ' | 66 |
Net | ' | 1,973 |
Non-compete agreements | Weighted average | ' | ' |
Intangible assets | ' | ' |
Weighted average remaining life | ' | '1 year 9 months 18 days |
Trade names | ' | ' |
Intangible assets | ' | ' |
Estimated useful life | ' | '4 years |
Gross cost | ' | 801 |
Accumulated amortization | ' | -200 |
Finite-Lived Intangible Assets, Translation Adjustments | ' | 19 |
Net | ' | 620 |
Trade names | Weighted average | ' | ' |
Intangible assets | ' | ' |
Weighted average remaining life | ' | '2 years 2 months 12 days |
LBM | ' | ' |
Roll-forward of goodwill | ' | ' |
Acquisition | ' | 26,227 |
N2SP | ' | ' |
Roll-forward of goodwill | ' | ' |
Acquisition | ' | $111 |
Goodwill_and_Intangibles_Detai1
Goodwill and Intangibles (Details 2) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Future amortization expense of intangible assets | ' |
Remainder of 2013 | $4,207 |
2014 | 13,218 |
2015 | 10,124 |
2016 | 7,461 |
2017 | 5,521 |
2018 | 4,680 |
Thereafter | $1,373 |
Severance_Restructuring_and_Ot2
Severance, Restructuring and Other Charges, Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Summary of severance, restructuring and other charges | ' | ' | ' | ' |
Severance | $1,165 | $1,461 | $3,560 | $5,254 |
Location exit charges, net | 1,091 | 1,668 | 2,546 | 4,739 |
Transaction related expenses and other | 1,375 | 290 | 4,145 | 2,878 |
Severance, restructuring and other charges, net | $3,631 | $3,419 | $10,251 | $12,871 |
Severance_Restructuring_and_Ot3
Severance, Restructuring and Other Charges, Net (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Rollforward of the activity in restructuring and other liabilities | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | $3,322 | ' |
Expense | 3,631 | 3,419 | 10,251 | 12,871 |
Cash Paid | ' | ' | -11,884 | ' |
Balance at the end of the period | 1,689 | ' | 1,689 | ' |
Reduction in work-force and severance | ' | ' | ' | ' |
Rollforward of the activity in restructuring and other liabilities | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 1,042 | ' |
Expense | ' | ' | 3,560 | ' |
Cash Paid | ' | ' | -4,054 | ' |
Balance at the end of the period | 548 | ' | 548 | ' |
Closure of Call Centers | ' | ' | ' | ' |
Rollforward of the activity in restructuring and other liabilities | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 1,810 | ' |
Expense | ' | ' | 2,546 | ' |
Cash Paid | ' | ' | -3,827 | ' |
Balance at the end of the period | 529 | ' | 529 | ' |
Transaction Related Expenses | ' | ' | ' | ' |
Rollforward of the activity in restructuring and other liabilities | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 470 | ' |
Expense | ' | ' | 4,145 | ' |
Cash Paid | ' | ' | -4,003 | ' |
Balance at the end of the period | $612 | ' | $612 | ' |
Equipment_and_Fixtures_Net_Det
Equipment and Fixtures, Net (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Equipment and fixtures, net | ' | ' |
Equipment and fixtures, gross | $294,412 | $251,561 |
Less: accumulated depreciation | -189,377 | -154,710 |
Equipment and fixtures, net | 105,035 | 96,851 |
Furniture and fixtures | ' | ' |
Equipment and fixtures, net | ' | ' |
Equipment and fixtures, gross | 23,701 | 17,696 |
Building improvements | ' | ' |
Equipment and fixtures, net | ' | ' |
Equipment and fixtures, gross | 73,424 | 66,369 |
Computer equipment | ' | ' |
Equipment and fixtures, net | ' | ' |
Equipment and fixtures, gross | 78,195 | 70,238 |
Software | ' | ' |
Equipment and fixtures, net | ' | ' |
Equipment and fixtures, gross | 52,196 | 40,460 |
Telecom and other equipment | ' | ' |
Equipment and fixtures, net | ' | ' |
Equipment and fixtures, gross | 58,456 | 55,418 |
Equipment and fixtures not yet placed in service | ' | ' |
Equipment and fixtures, net | ' | ' |
Equipment and fixtures, gross | $8,440 | $1,380 |
Accrued_Employee_Compensation_2
Accrued Employee Compensation and Benefits (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Employee Compensation and Benefits | ' | ' |
Compensation related amounts | $40,103 | $28,386 |
Vacation liabilities | 15,699 | 14,176 |
Medical and dental liabilities | 2,405 | 2,078 |
Employer taxes | 2,785 | 2,098 |
Statutory retirement plans | 10,463 | 10,860 |
Other benefit related liabilities | 373 | 437 |
Accrued employee compensation and benefits, Net | $71,828 | $58,035 |
Other_Accrued_Expenses_and_Oth2
Other Accrued Expenses and Other Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Accrued Expenses and Other Liabilities | ' | ' |
Professional fees | $4,875 | $3,560 |
Accrued interest | 13,809 | 6,226 |
Occupancy expense | 3,432 | 2,108 |
Technology expense | 2,156 | 1,841 |
Value added and sales tax | 3,285 | 1,547 |
Other accrued expenses | 9,659 | 5,191 |
Total | $37,216 | $20,473 |
Other_Accrued_Expenses_and_Oth3
Other Accrued Expenses and Other Liabilities (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other current liabilities | ' | ' |
Lease exit liability | $307 | $1,704 |
Deferred revenue | 1,063 | 1,512 |
Market lease reserves | 285 | 946 |
Forward exchange contracts | 5,689 | 204 |
Other | 2,281 | 1,225 |
Total other current liabilities | $9,625 | $5,591 |
Other_Accrued_Expenses_and_Oth4
Other Accrued Expenses and Other Liabilities (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other long-term liabilities | ' | ' |
Deferred rent | $5,236 | $4,415 |
Accrued income taxes | 6,519 | 11,143 |
Market lease reserves | 128 | 61 |
Asset retirement obligation | 3,717 | ' |
Forward exchange contracts | 312 | ' |
Other | 1,706 | 334 |
Total other long-term liabilities | $17,618 | $15,953 |
LongTerm_Debt_and_Revolving_Cr2
Long-Term Debt and Revolving Credit Facility (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 27, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 27, 2012 | Mar. 08, 2013 | Oct. 31, 2009 | Sep. 30, 2013 | Oct. 01, 2009 | |
ABL revolving credit facility | ABL revolving credit facility | ABL revolving credit facility | ABL revolving credit facility | ABL revolving credit facility | ABL revolving credit facility | Letter of Credit | 11.25% Senior Secured Notes | 11.25% Senior Secured Notes | 11.25% Senior Secured Notes | 11.25% Senior Secured Notes | |||
Base rate | LIBOR | ||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30,000,000 | $200,000,000 | ' | ' |
Initial offering price as percentage of the principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102.00% | ' | ' | 95.45% |
Interest on Senior Secured Notes (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.25% | 11.25% |
Revolving credit financing | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | 20,000,000 | ' | ' | ' | ' |
Line of Credit Facility - Term | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility term specified as period prior to the maturity of notes | ' | ' | '120 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate base | ' | ' | ' | ' | ' | ' | 'Wells Fargo's base rate | 'LIBOR | ' | ' | ' | ' | ' |
Basis spread on variable rate base (as a percent) | ' | ' | ' | ' | ' | ' | 1.50% | 2.50% | ' | ' | ' | ' | ' |
Line of Credit Fees Capitalized | ' | ' | ' | ' | ' | 5,642,000 | ' | ' | ' | ' | ' | ' | 8,966,000 |
Amortization of Capitalized Fees into Expense | 1,093,000 | 3,090,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount drawn on ABL Facility | ' | ' | ' | 256,966,000 | 237,312,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Payment on ABL Facility | ' | ' | ' | 261,850,000 | 245,407,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Available Credit under ABL Facility | ' | ' | ' | 87,226,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability threshold for fixed charge coverage ratio financial covenant to be operational | ' | ' | ' | $25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period that renegotiated financing, cash generated by operations and existing cash should be sufficient to meet expected liquidity needs (in months) | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_and_Revolving_Cr3
Long-Term Debt and Revolving Credit Facility (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 01, 2009 |
In Thousands, unless otherwise specified | |||
Summary of long-term borrowings | ' | ' | ' |
Long-term debt, gross | $276,175 | $249,584 | ' |
Less: current portion | -37,860 | -5,333 | ' |
Less: discount on notes payable | -1,946 | -3,897 | ' |
Long-term debt | 236,369 | 240,354 | ' |
Revolving line of credit | ' | ' | ' |
Summary of long-term borrowings | ' | ' | ' |
Long-term debt, gross | 29,797 | 34,680 | ' |
11.25% Senior Secured Notes | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Interest on Senior Secured Notes (as a percent) | 11.25% | ' | 11.25% |
Summary of long-term borrowings | ' | ' | ' |
Long-term debt, gross | 230,000 | 200,000 | ' |
Other | ' | ' | ' |
Summary of long-term borrowings | ' | ' | ' |
Long-term debt, gross | $16,378 | $14,904 | ' |
LongTerm_Debt_and_Revolving_Cr4
Long-Term Debt and Revolving Credit Facility (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-Term Debt and Revolving Credit Facility | ' | ' |
2013 | $1,233 | ' |
2014 | 267,689 | ' |
2015 | 4,854 | ' |
2016 | 1,106 | ' |
2017 | 1,293 | ' |
Total | 276,175 | 249,584 |
Letters of Credit in the aggregate outstanding amounts | 0 | 3,245 |
Restricted cash | $299 | $380 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Beginning balance | ($6,645) |
Current period other comprehensive income (loss) | -7,642 |
Ending balance | -14,287 |
Unrealized gain (loss) on forward exchange contracts, net of tax | ' |
Beginning balance | 3,283 |
Current period other comprehensive income (loss) | -8,477 |
Ending balance | -5,194 |
Cumulative translation adjustment | ' |
Beginning balance | -9,928 |
Current period other comprehensive income (loss) | 835 |
Ending balance | ($9,093) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Activity in other comprehensive income (loss) related to forward exchange contracts held | ' | ' | ' | ' |
Change in fair value of forward exchange contracts, net of tax | $3,141 | $2,462 | ($7,937) | $3,380 |
Amount reclassified to direct cost of revenue | -1,427 | -146 | -540 | 2,147 |
Change in unrealized gains/losses on forward exchange contracts | $1,714 | $2,316 | ($8,477) | $5,527 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Domestic and foreign source component of income (loss) before taxes | ' | ' | ' | ' |
Total US | ' | ' | ($24,420) | ($24,074) |
Total Foreign | ' | ' | 20,640 | 9,748 |
Income (loss) before provision for income taxes | $73 | ($1,384) | ($3,780) | ($14,326) |
Income_Taxes_Details_2
Income Taxes (Details 2) | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Period over which cumulative increases in the ownership interests of 5% stockholders is measured | '3 years |
Percentage of stock held by shareholders for which cumulative increases in their ownership interests is measured over a 3 year period | 5.00% |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Income Taxes | ' | ' | ' |
Benefit recorded related to refund claim provided by Italy Revenue Agency | ' | $1,031 | ' |
Other disclosures | ' | ' | ' |
Liability for unrecognized tax benefits (including interest and penalties), recorded in other long term liabilities | 6,800 | 6,800 | 11,222 |
Reduction in unrecognized tax benefits resulting from lapse of applicable statute of limitations | 4,079 | 4,079 | ' |
Un-benefitted tax losses which would be realizable on settlement | ' | 1,599 | 1,599 |
Accrued Income tax interest and penalties | 2,539 | 2,539 | 2,633 |
Net unrealized tax benefits that would affect income tax expense | 5,201 | 5,201 | ' |
Interest and penalties | ' | 2,539 | ' |
Projected decrease in unrecognized tax benefits due to settlement with taxing authorities or expiration of statute | $692 | $692 | ' |
Stock_Options_Details
Stock Options (Details) | Dec. 31, 2008 | Sep. 30, 2012 | Dec. 31, 2008 | Dec. 31, 2008 | Sep. 30, 2013 | Jun. 08, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 08, 2012 |
2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | |
Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | Stock Options | |||
Maximum | Minimum | Maximum | Minimum | Minimum | |||||
Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized grants of common stock (in shares) | 10,000,000 | ' | ' | ' | ' | 80,000 | ' | ' | ' |
Purchase price percentage, grant date fair value of common stock granted | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Stock option term | ' | ' | ' | ' | ' | ' | '7 years | ' | ' |
Option exercise price as a percentage of the fair market value of the common stock at the date of grant | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Stock option term | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Vesting term | ' | ' | ' | ' | ' | ' | '5 years | '4 years | ' |
Number of options, Granted (in shares) | ' | 185,000 | ' | ' | 800 | ' | ' | ' | ' |
Stock_Options_Details_2
Stock Options (Details 2) (USD $) | 9 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2013 | |
2008 Stock Incentive Plan | 2012 Stock Incentive Plan | |
Assumptions used for the option grants | ' | ' |
Option term (years) | '6 years 4 months 17 days | '5 years |
Volatility (as a percent) | 71.89% | 44.35% |
Risk-free interest rate Minimum (as a percent) | 1.14% | ' |
Risk-free interest rate Maximum (as a percent) | 1.43% | ' |
Risk-free interest rate (as a percent) | ' | 0.88% |
Dividend yield (as a percent) | 0.00% | 0.00% |
Weighted-average grant date fair value per option granted (in dollars per share) | $1.73 | $70.87 |
Stock_Options_Details_3
Stock Options (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Stock Options | Stock Options | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2008 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | 2012 Stock Incentive Plan | |
Stock Options | Stock Options | |||||||
Stock Options | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options vested (in shares) | ' | ' | ' | ' | 1,534,000 | ' | ' | ' |
Stock options under the Plan | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options outstanding, beginning balance (in shares) | ' | ' | ' | ' | ' | 74,300 | ' | ' |
Weighted Average Exercise Price, beginning of period (in dollars per share) | ' | ' | ' | ' | ' | $425 | ' | ' |
Number of options, Granted (in shares) | ' | ' | ' | ' | 185,000 | 800 | ' | ' |
Stock options exercised (in shares) | ' | ' | ' | ' | 0 | ' | ' | 0 |
Stock options exercisable (in shares) | 0 | 0 | ' | ' | ' | ' | ' | 19,000 |
Weighted Average Exercise Price, Granted (in dollars per share) | ' | ' | ' | ' | ' | $425 | ' | ' |
Weighted Average Fair Value, Granted (in dollars per share) | ' | ' | $1.73 | ' | ' | $70.87 | ' | ' |
Number of options, Forfeited or modified (in shares) | ' | ' | ' | ' | 5,623,000 | 5,600 | ' | ' |
Weighted Average Exercise Price, Forfeited or modified (in dollars per share) | ' | ' | ' | ' | ' | $425 | ' | ' |
Number of options outstanding, closing balance (in shares) | ' | ' | ' | ' | ' | 69,500 | 74,300 | ' |
Weighted Average Exercise Price, end of period (in dollars per share) | ' | ' | ' | ' | ' | $425 | $425 | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | '6 years 25 days | '6 years 9 months 25 days | ' |
Recognized stock compensation expense within selling, general and administrative expenses | $397 | $1,113 | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of stock options outstanding, excluding the effects of expected forfeitures | 0 | 0 | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of stock options exercisable | 0 | 0 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | 1,526 |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average exercise price of options exercisable (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $425 |
Weighted average remaining contractual term of options exercisable | ' | ' | ' | ' | ' | ' | ' | '6 years 25 days |
Total fair value of options vested | ' | ' | ' | ' | ' | ' | ' | $120 |
Shares outstanding, vested, and expected to vest (including forfeiture adjusted unvested shares) | ' | ' | ' | 0 | ' | ' | ' | ' |
Weighted average exercise price of shares outstanding, vested, and expected to vest (including forfeiture adjusted unvested shares) (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $425 |
Weighted average remaining contractual term of shares outstanding, vested, and expected to vest (including forfeiture adjusted unvested shares) | ' | ' | ' | ' | ' | ' | ' | '6 years 18 days |
Geographic_Operations_and_Conc2
Geographic Operations and Concentrations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
segment | |||||
region | |||||
Geographic Operations and Concentrations | ' | ' | ' | ' | ' |
Number of Operating Segments | ' | ' | 1 | ' | ' |
Number of regions that services are provided | ' | ' | 2 | ' | ' |
Geographic information regarding operations | ' | ' | ' | ' | ' |
Revenue | $256,011 | $210,931 | $747,977 | $624,213 | ' |
Total assets | 661,298 | ' | 661,298 | ' | 604,028 |
Americas | ' | ' | ' | ' | ' |
Geographic information regarding operations | ' | ' | ' | ' | ' |
Revenue | 166,255 | 157,929 | 505,367 | 463,362 | ' |
Total assets | 520,028 | ' | 520,028 | ' | 536,149 |
United States | ' | ' | ' | ' | ' |
Geographic information regarding operations | ' | ' | ' | ' | ' |
Revenue | 51,900 | 52,131 | 162,782 | 146,416 | ' |
Philippines | ' | ' | ' | ' | ' |
Geographic information regarding operations | ' | ' | ' | ' | ' |
Revenue | 55,506 | 50,122 | 165,017 | 149,486 | ' |
Canada | ' | ' | ' | ' | ' |
Geographic information regarding operations | ' | ' | ' | ' | ' |
Revenue | 24,720 | 25,908 | 79,945 | 81,562 | ' |
Others | ' | ' | ' | ' | ' |
Geographic information regarding operations | ' | ' | ' | ' | ' |
Revenue | 34,129 | 29,768 | 97,623 | 85,898 | ' |
EMEA | ' | ' | ' | ' | ' |
Geographic information regarding operations | ' | ' | ' | ' | ' |
Revenue | 89,756 | 53,002 | 242,610 | 160,851 | ' |
Total assets | 141,270 | ' | 141,270 | ' | 67,879 |
Great Britain | ' | ' | ' | ' | ' |
Geographic information regarding operations | ' | ' | ' | ' | ' |
Revenue | 31,169 | ' | 69,844 | ' | ' |
Others | ' | ' | ' | ' | ' |
Geographic information regarding operations | ' | ' | ' | ' | ' |
Revenue | $58,587 | $53,002 | $172,766 | $160,851 | ' |
Geographic_Operations_and_Conc3
Geographic Operations and Concentrations (Details 2) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Percentage of revenue form largest customers | ' | ' | ' | ' |
Number of largest clients | 1 | ' | 1 | ' |
Microsoft | ' | ' | ' | ' |
Percentage of revenue form largest customers | ' | ' | ' | ' |
Percentage of revenue | 12.00% | 10.00% | 13.00% | 9.00% |
Geographic_Operations_and_Conc4
Geographic Operations and Concentrations (Details 3) (Microsoft, Accounts Receivable, Credit Concentration Risk) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Microsoft | Accounts Receivable | Credit Concentration Risk | ' | ' |
Revenue, Major Customer | ' | ' |
Client accounts receivable as percentage of total accounts receivable | 6.00% | 4.00% |
Guarantor_Financial_Informatio2
Guarantor Financial Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Revenue | $256,011 | $210,931 | $747,977 | $624,213 |
Direct cost of revenue | 150,626 | 121,997 | 442,831 | 364,775 |
Gross profit | 105,385 | 88,934 | 305,146 | 259,438 |
Operating expenses | 95,019 | 81,638 | 282,128 | 250,624 |
Non-operating expenses (income) | 10,293 | 8,680 | 26,798 | 23,140 |
Income (loss) before provision for income taxes | 73 | -1,384 | -3,780 | -14,326 |
Provision (benefit) for income taxes | -2,531 | 797 | -106 | 2,976 |
Net income (loss) | 2,604 | -2,181 | -3,674 | -17,302 |
Customers | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Direct cost of revenue | 150,626 | 121,997 | 442,831 | 364,775 |
Parent | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Operating expenses | 465 | 874 | 1,254 | 2,492 |
Non-operating expenses (income) | 8,734 | 8,103 | 25,871 | 23,465 |
Equity in Earnings of Subsidiaries | -2,760 | 2,288 | -14,414 | 430 |
Income (loss) before provision for income taxes | -6,439 | -11,265 | -12,711 | -26,387 |
Provision (benefit) for income taxes | -9,043 | -9,084 | -9,037 | -9,085 |
Net income (loss) | 2,604 | -2,181 | -3,674 | -17,302 |
Guarantor subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Revenue | 109,849 | 109,210 | 335,165 | 315,222 |
Direct cost of revenue | 61,842 | 61,011 | 192,046 | 184,767 |
Gross profit | 48,007 | 48,199 | 143,119 | 130,455 |
Operating expenses | 45,069 | 42,025 | 139,333 | 129,636 |
Non-operating expenses (income) | -748 | -2,092 | -4,910 | -6,486 |
Income (loss) before provision for income taxes | 3,686 | 8,266 | 8,696 | 7,305 |
Provision (benefit) for income taxes | 5,336 | 9,886 | 6,615 | 8,111 |
Net income (loss) | -1,650 | -1,620 | 2,081 | -806 |
Guarantor subsidiaries | Customers | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Direct cost of revenue | 58,677 | 55,081 | 182,141 | 163,563 |
Guarantor subsidiaries | Intercompany | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Direct cost of revenue | 3,165 | 5,930 | 9,905 | 21,204 |
Non-Guarantor subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Revenue | 150,201 | 108,293 | 424,842 | 332,156 |
Direct cost of revenue | 92,823 | 67,558 | 262,815 | 203,173 |
Gross profit | 57,378 | 40,735 | 162,027 | 128,983 |
Operating expenses | 49,485 | 38,739 | 141,541 | 118,496 |
Non-operating expenses (income) | 2,307 | 2,669 | 5,837 | 6,161 |
Income (loss) before provision for income taxes | 5,586 | -673 | 14,649 | 4,326 |
Provision (benefit) for income taxes | 1,176 | -5 | 2,316 | 3,950 |
Net income (loss) | 4,410 | -668 | 12,333 | 376 |
Non-Guarantor subsidiaries | Customers | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Direct cost of revenue | 91,949 | 66,916 | 260,690 | 201,212 |
Non-Guarantor subsidiaries | Intercompany | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Direct cost of revenue | 874 | 642 | 2,125 | 1,961 |
Elimination | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Revenue | -4,039 | -6,572 | -12,030 | -23,165 |
Direct cost of revenue | -4,039 | -6,572 | -12,030 | -23,165 |
Equity in Earnings of Subsidiaries | 2,760 | -2,288 | 14,414 | -430 |
Income (loss) before provision for income taxes | -2,760 | 2,288 | -14,414 | 430 |
Net income (loss) | -2,760 | 2,288 | -14,414 | 430 |
Elimination | Intercompany | ' | ' | ' | ' |
Condensed Consolidating Statement of Operations | ' | ' | ' | ' |
Direct cost of revenue | ($4,039) | ($6,572) | ($12,030) | ($23,165) |
Guarantor_Financial_Informatio3
Guarantor Financial Information (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Condensed Consolidating Statement of Comprehensive Income | ' | ' | ' | ' | ||||
Net income (loss) | $2,604 | ($2,181) | ($3,674) | ($17,302) | ||||
Other Comprehensive income: | ' | ' | ' | ' | ||||
Change in unrealized gain (loss) on forward exchange contracts, net of tax | 1,714 | 2,316 | -8,477 | 5,527 | ||||
Change in cumulative translation adjustment | 2,443 | [1] | 2,151 | [1] | 835 | [1] | -349 | [1] |
Comprehensive income (loss) | 6,761 | 2,286 | -11,316 | -12,124 | ||||
Parent | ' | ' | ' | ' | ||||
Condensed Consolidating Statement of Comprehensive Income | ' | ' | ' | ' | ||||
Net income (loss) | 2,604 | -2,181 | -3,674 | -17,302 | ||||
Other Comprehensive income: | ' | ' | ' | ' | ||||
Change in unrealized gain (loss) on forward exchange contracts, net of tax | 1,714 | 2,316 | -8,477 | 5,527 | ||||
Change in cumulative translation adjustment | 2,443 | 2,151 | 835 | -349 | ||||
Comprehensive income (loss) | 6,761 | 2,286 | -11,316 | -12,124 | ||||
Guarantor subsidiaries | ' | ' | ' | ' | ||||
Condensed Consolidating Statement of Comprehensive Income | ' | ' | ' | ' | ||||
Net income (loss) | -1,650 | -1,620 | 2,081 | -806 | ||||
Other Comprehensive income: | ' | ' | ' | ' | ||||
Change in unrealized gain (loss) on forward exchange contracts, net of tax | 1,113 | 1,423 | -1,459 | 2,016 | ||||
Change in cumulative translation adjustment | 1,734 | 1,355 | 1,213 | 19 | ||||
Comprehensive income (loss) | 1,197 | 1,158 | 1,835 | 1,229 | ||||
Non-Guarantor subsidiaries | ' | ' | ' | ' | ||||
Condensed Consolidating Statement of Comprehensive Income | ' | ' | ' | ' | ||||
Net income (loss) | 4,410 | -668 | 12,333 | 376 | ||||
Other Comprehensive income: | ' | ' | ' | ' | ||||
Change in unrealized gain (loss) on forward exchange contracts, net of tax | 601 | 893 | -7,018 | 3,511 | ||||
Change in cumulative translation adjustment | 709 | 796 | -378 | -368 | ||||
Comprehensive income (loss) | 5,720 | 1,021 | 4,937 | 3,519 | ||||
Elimination | ' | ' | ' | ' | ||||
Condensed Consolidating Statement of Comprehensive Income | ' | ' | ' | ' | ||||
Net income (loss) | -2,760 | 2,288 | -14,414 | 430 | ||||
Other Comprehensive income: | ' | ' | ' | ' | ||||
Change in unrealized gain (loss) on forward exchange contracts, net of tax | -1,714 | -2,316 | 8,477 | -5,527 | ||||
Change in cumulative translation adjustment | -2,443 | -2,151 | -835 | 349 | ||||
Comprehensive income (loss) | ($6,917) | ($2,179) | ($6,772) | ($4,748) | ||||
[1] | During the nine months ended September 30, 2012, we substantially liquidated our investment in Costa Rica. Accordingly, we reclassified $228 from cumulative translation adjustment to other foreign currency loss in our statement of operations. There were no sales or liquidations of investments in foreign entities during the three or nine months ended September 30, 2013. |
Guarantor_Financial_Informatio4
Guarantor Financial Information (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $15,675 | $18,735 | $12,032 | $23,248 |
Accounts receivable, net | 188,377 | 164,929 | ' | ' |
Other current assets | 23,736 | 29,008 | ' | ' |
Total current assets | 227,788 | 212,672 | ' | ' |
Equipment and fixtures, net and other asset | 116,950 | 112,267 | ' | ' |
Goodwill and intangible assets, net | 316,560 | 279,089 | ' | ' |
Total assets | 661,298 | 604,028 | ' | ' |
Liabilities and Stockholders' Equity | ' | ' | ' | ' |
Accounts payable | 19,034 | 16,359 | ' | ' |
Accrued employee compensation and benefits | 71,828 | 58,035 | ' | ' |
Other accrued expenses | 37,216 | 20,473 | ' | ' |
Other current liabilities | 58,767 | 21,318 | ' | ' |
Total current liabilities | 186,845 | 116,185 | ' | ' |
Long-term liabilities | 274,760 | 277,947 | ' | ' |
Total shareholders' equity (deficit) | 199,693 | 209,896 | ' | ' |
Total liabilities and stockholders' equity | 661,298 | 604,028 | ' | ' |
Parent | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 6 | 6 | 6 | 6 |
Intercompany receivable | 37,576 | 32,239 | ' | ' |
Other current assets | 3,972 | 3,587 | ' | ' |
Total current assets | 41,554 | 35,832 | ' | ' |
Equipment and fixtures, net and other asset | ' | 2,254 | ' | ' |
Investment in subsidiaries | 456,947 | 450,175 | ' | ' |
Total assets | 498,501 | 488,261 | ' | ' |
Liabilities and Stockholders' Equity | ' | ' | ' | ' |
Other accrued expenses | 13,113 | 5,947 | ' | ' |
Other current liabilities | 29,797 | ' | ' | ' |
Total current liabilities | 42,910 | 5,947 | ' | ' |
Intercompany notes payable | 27,845 | 41,634 | ' | ' |
Long-term liabilities | 228,053 | 230,784 | ' | ' |
Total shareholders' equity (deficit) | 199,693 | 209,896 | ' | ' |
Total liabilities and stockholders' equity | 498,501 | 488,261 | ' | ' |
Guarantor subsidiaries | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 1,614 | 9,975 | 3,352 | 11,143 |
Accounts receivable, net | 150,709 | 146,078 | ' | ' |
Other current assets | 10,437 | 14,878 | ' | ' |
Total current assets | 162,760 | 170,931 | ' | ' |
Equipment and fixtures, net and other asset | 54,092 | 48,019 | ' | ' |
Investment in subsidiaries | 134,288 | 74,783 | ' | ' |
Intercompany receivable | 140,766 | 114,480 | ' | ' |
Goodwill and intangible assets, net | 162,682 | 169,792 | ' | ' |
Total assets | 654,588 | 578,005 | ' | ' |
Liabilities and Stockholders' Equity | ' | ' | ' | ' |
Accounts payable | 8,939 | 7,485 | ' | ' |
Accrued employee compensation and benefits | 21,372 | 18,467 | ' | ' |
Other accrued expenses | 6,703 | 5,876 | ' | ' |
Other current liabilities | 11,615 | 11,683 | ' | ' |
Intercompany payable | 133,269 | 118,041 | ' | ' |
Total current liabilities | 181,898 | 161,552 | ' | ' |
Long-term liabilities | 26,771 | 31,915 | ' | ' |
Total shareholders' equity (deficit) | 445,919 | 384,538 | ' | ' |
Total liabilities and stockholders' equity | 654,588 | 578,005 | ' | ' |
Non-Guarantor subsidiaries | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 14,055 | 8,754 | 8,674 | 12,099 |
Accounts receivable, net | 37,668 | 18,851 | ' | ' |
Intercompany receivable | 103,075 | 88,776 | ' | ' |
Other current assets | 9,327 | 10,543 | ' | ' |
Total current assets | 164,125 | 126,924 | ' | ' |
Equipment and fixtures, net and other asset | 62,858 | 61,994 | ' | ' |
Investment in subsidiaries | 17 | 17 | ' | ' |
Goodwill and intangible assets, net | 153,878 | 109,297 | ' | ' |
Total assets | 380,878 | 298,232 | ' | ' |
Liabilities and Stockholders' Equity | ' | ' | ' | ' |
Accounts payable | 10,095 | 8,874 | ' | ' |
Accrued employee compensation and benefits | 50,456 | 39,568 | ' | ' |
Other accrued expenses | 17,400 | 8,650 | ' | ' |
Other current liabilities | 17,355 | 9,635 | ' | ' |
Intercompany payable | 7,382 | 2,974 | ' | ' |
Total current liabilities | 102,688 | 69,701 | ' | ' |
Intercompany notes payable | 112,921 | 72,846 | ' | ' |
Long-term liabilities | 19,936 | 15,248 | ' | ' |
Total shareholders' equity (deficit) | 145,333 | 140,437 | ' | ' |
Total liabilities and stockholders' equity | 380,878 | 298,232 | ' | ' |
Elimination | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Intercompany receivable | -140,651 | -121,015 | ' | ' |
Total current assets | -140,651 | -121,015 | ' | ' |
Investment in subsidiaries | -591,252 | -524,975 | ' | ' |
Intercompany receivable | -140,766 | -114,480 | ' | ' |
Total assets | -872,669 | -760,470 | ' | ' |
Liabilities and Stockholders' Equity | ' | ' | ' | ' |
Intercompany payable | -140,651 | -121,015 | ' | ' |
Total current liabilities | -140,651 | -121,015 | ' | ' |
Intercompany notes payable | -140,766 | -114,480 | ' | ' |
Total shareholders' equity (deficit) | -591,252 | -524,975 | ' | ' |
Total liabilities and stockholders' equity | ($872,669) | ($760,470) | ' | ' |
Guarantor_Financial_Informatio5
Guarantor Financial Information (Details 4) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Statements of Cash Flows | ' | ' |
Net cash provided by (used in) operating activities | $49,872 | $33,383 |
Cash flows from investing activities: | ' | ' |
Acquisitions of business | -44,022 | ' |
Cash acquired from acquisitions | 5,217 | ' |
Additions to equipment and fixtures | -31,147 | -36,556 |
Net cash used in investing activities | -69,952 | -36,556 |
Cash flows from financing activities: | ' | ' |
Net borrowings (repayments) on line of credit | -4,884 | -8,095 |
Net borrowings (repayments) on long term debt | 32,683 | 8,719 |
Net repayments on capital leases | -8,994 | -8,745 |
Tax payments for withholding on restricted stock | ' | -11 |
Net cash provided by (used in) financing activities | 18,805 | -8,132 |
Effect of exchange rates on cash and cash equivalents | -1,785 | 89 |
Net decrease in cash and cash equivalents | -3,060 | -11,216 |
Cash and cash equivalents, beginning of period | 18,735 | 23,248 |
Cash and cash equivalents, end of period | 15,675 | 12,032 |
Parent | ' | ' |
Condensed Statements of Cash Flows | ' | ' |
Net cash provided by (used in) operating activities | -6,591 | -5,781 |
Cash flows from investing activities: | ' | ' |
Net intercompany receivables | -5,337 | -9,032 |
Net cash used in investing activities | -5,337 | -9,032 |
Cash flows from financing activities: | ' | ' |
Net borrowings (repayments) on line of credit | -4,884 | -8,095 |
Net borrowings (repayments) on long term debt | 30,601 | ' |
Net intercompany payables | -13,789 | 22,919 |
Tax payments for withholding on restricted stock | ' | -11 |
Net cash provided by (used in) financing activities | 11,928 | 14,813 |
Cash and cash equivalents, beginning of period | 6 | 6 |
Cash and cash equivalents, end of period | 6 | 6 |
Guarantor subsidiaries | ' | ' |
Condensed Statements of Cash Flows | ' | ' |
Net cash provided by (used in) operating activities | 26,604 | 9,557 |
Cash flows from investing activities: | ' | ' |
Net intercompany receivables | -26,287 | -31,610 |
Investment in subsidiaries | ' | -100 |
Additions to equipment and fixtures | -21,439 | -11,214 |
Net cash used in investing activities | -47,726 | -42,924 |
Cash flows from financing activities: | ' | ' |
Net borrowings (repayments) on long term debt | 3,182 | 1,125 |
Net repayments on capital leases | -6,582 | -6,687 |
Net intercompany payables | 15,448 | 30,994 |
Net cash provided by (used in) financing activities | 12,048 | 25,432 |
Effect of exchange rates on cash and cash equivalents | 713 | 144 |
Net decrease in cash and cash equivalents | -8,361 | -7,791 |
Cash and cash equivalents, beginning of period | 9,975 | 11,143 |
Cash and cash equivalents, end of period | 1,614 | 3,352 |
Non-Guarantor subsidiaries | ' | ' |
Condensed Statements of Cash Flows | ' | ' |
Net cash provided by (used in) operating activities | 29,859 | 29,607 |
Cash flows from investing activities: | ' | ' |
Net intercompany receivables | -14,299 | -23,981 |
Acquisitions of business | -44,022 | ' |
Cash acquired from acquisitions | 5,217 | ' |
Additions to equipment and fixtures | -9,708 | -25,342 |
Net cash used in investing activities | -62,812 | -49,323 |
Cash flows from financing activities: | ' | ' |
Net borrowings (repayments) on long term debt | -1,100 | 7,594 |
Net repayments on capital leases | -2,412 | -2,058 |
Investment from parent | ' | 100 |
Net intercompany payables | 44,264 | 10,710 |
Net cash provided by (used in) financing activities | 40,752 | 16,346 |
Effect of exchange rates on cash and cash equivalents | -2,498 | -55 |
Net decrease in cash and cash equivalents | 5,301 | -3,425 |
Cash and cash equivalents, beginning of period | 8,754 | 12,099 |
Cash and cash equivalents, end of period | 14,055 | 8,674 |
Elimination | ' | ' |
Cash flows from investing activities: | ' | ' |
Net intercompany receivables | 45,923 | 64,623 |
Investment in subsidiaries | ' | 100 |
Net cash used in investing activities | 45,923 | 64,723 |
Cash flows from financing activities: | ' | ' |
Investment from parent | ' | -100 |
Net intercompany payables | -45,923 | -64,623 |
Net cash provided by (used in) financing activities | ($45,923) | ($64,723) |