Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | HARTE HANKS INC | ||
Entity Central Index Key | 45919 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $356,141,644 | ||
Entity Common Stock, Shares Outstanding | 61,792,369 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $56,749 | $88,747 |
Accounts receivable (less allowance for doubtful accounts of $1,224 at December 31, 2014 and $1,729 at December 31, 2013) | 125,295 | 120,122 |
Inventory | 1,235 | 1,286 |
Prepaid expenses | 9,000 | 8,528 |
Current deferred income tax asset | 5,077 | 7,696 |
Prepaid income tax | 1,185 | 4,755 |
Other current assets | 7,953 | 8,171 |
Total current assets | 206,494 | 239,305 |
Property, plant and equipment | ||
Land | 20 | |
Buildings and improvements | 17,112 | 16,194 |
Software | 88,422 | 86,879 |
Equipment and furniture | 102,688 | 104,120 |
Software development and equipment installations in progress | 2,390 | 3,352 |
Gross property, plant and equipment | 210,612 | 210,565 |
Less accumulated depreciation and amortization | -173,699 | -169,854 |
Net property, plant and equipment | 36,913 | 40,711 |
Goodwill | 398,164 | 398,164 |
Other intangible assets (less accumulated amortization of $9,744 at December 31, 2014 and $9,748 at December 31, 2013) | 2,277 | 2,303 |
Other assets | 3,351 | 5,053 |
Total assets | 647,199 | 685,536 |
Current liabilities | ||
Current maturities of long-term debt | 18,375 | 15,313 |
Accounts payable | 36,478 | 36,756 |
Accrued payroll and related expenses | 9,773 | 16,255 |
Deferred revenue and customer advances | 33,631 | 36,257 |
Income taxes payable | 2,462 | 3,407 |
Customer postage and program deposits | 17,120 | 23,877 |
Other current liabilities | 6,430 | 8,978 |
Total current liabilities | 124,269 | 140,843 |
Long-term debt | 64,312 | 82,687 |
Pensions | 65,156 | 39,194 |
Other long-term liabilities (including deferred income taxes of $59,532 at December 31, 2014 and $65,788 at December 31, 2013) | 66,786 | 73,758 |
Total liabilities | 320,523 | 336,482 |
Stockholders' equity | ||
Common stock, $1 par value, 250,000,000 shares authorized 119,606,551 shares issued at December 31, 2014 and 119,186,705 shares issued at December 31, 2013 | 119,607 | 119,187 |
Additional paid-in capital | 346,239 | 345,095 |
Retained earnings | 1,165,707 | 1,163,201 |
Less treasury stock, 57,832,362 shares at cost at December 31, 2014 and 56,600,972 shares at cost at December 31, 2013 | -1,257,648 | -1,250,311 |
Accumulated other comprehensive loss | -47,229 | -28,118 |
Total stockholders' equity | 326,676 | 349,054 |
Total liabilities and stockholders' equity | $647,199 | $685,536 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Financial Statements | ||
Accounts receivable, allowance for doubtful accounts | $1,224 | $1,729 |
Other intangible assets, accumulated amortization | 9,774 | 9,748 |
Other long-term liabilities, deferred income taxes | $59,532 | $65,788 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 119,606,551 | 119,186,705 |
Treasury stock, shares (in shares) | 57,832,362 | 56,600,972 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income (Loss) | |||
Operating revenues | $553,676 | $559,609 | $581,091 |
Operating expenses | |||
Labor | 279,135 | 281,924 | 278,639 |
Production and distribution | 166,959 | 161,600 | 172,132 |
Advertising, selling, general and administrative | 51,900 | 54,937 | 51,729 |
Intangible asset impairment | 2,750 | ||
Depreciation, software and intangible asset amortization | 14,920 | 15,737 | 15,922 |
Total operating expenses | 512,914 | 516,948 | 518,422 |
Operating income | 40,762 | 42,661 | 62,669 |
Other expenses | |||
Interest expense, net | 2,559 | 2,998 | 3,484 |
Other, net | 897 | 46 | 2,993 |
Total other expenses | 3,456 | 3,044 | 6,477 |
Income from continuing operations before income taxes | 37,306 | 39,617 | 56,192 |
Income tax expense | 13,315 | 15,176 | 20,796 |
Income from continuing operations | 23,991 | 24,441 | 35,396 |
Income (loss) from discontinued operations, net of income taxes | 1,284 | -116,033 | |
Loss on sales of discontinued operations, net of income taxes | -12,355 | -2,716 | |
Total discontinued operations | -11,071 | -118,749 | |
Net income (loss) | 23,991 | 13,370 | -83,353 |
Basic earnings (loss) per common share | |||
Continuing operations (in dollars per share) | $0.38 | $0.39 | $0.56 |
Discontinued operations (in dollars per share) | $0 | ($0.18) | ($1.89) |
Basic earnings (loss) per common share (in dollars per share) | $0.38 | $0.21 | ($1.33) |
Weighted-average common shares outstanding | 62,444 | 62,503 | 62,887 |
Diluted earnings (loss) per common share | |||
Continuing operations (in dollars per share) | $0.38 | $0.39 | $0.56 |
Discontinued operations (in dollars per share) | $0 | ($0.18) | ($1.88) |
Diluted earnings (loss) per common share (in dollars per share) | $0.38 | $0.21 | ($1.32) |
Weighted-average common and common equivalent shares outstanding (in shares) | 62,658 | 62,812 | 63,148 |
Other comprehensive income (loss), net of tax | |||
Adjustment to pension liability | -17,281 | 22,152 | -5,726 |
Foreign currency translation adjustments | -1,830 | -536 | 1,315 |
Total other comprehensive income (loss), net of tax | -19,111 | 21,616 | -4,411 |
Comprehensive income (loss) | $4,880 | $34,986 | ($87,764) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net income (loss) | $23,991 | $13,370 | ($83,353) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
(Gain) Loss from discontinued operations | -1,284 | 116,033 | |
Loss on sale of discontinued operations | 12,355 | 2,716 | |
Intangible asset impairment | 2,750 | ||
Depreciation and software amortization | 14,894 | 15,530 | 15,676 |
Intangible asset amortization | 26 | 206 | 246 |
Stock-based compensation | 4,055 | 5,744 | 3,412 |
Excess tax benefits from stock-based compensation | -42 | -57 | |
Net pension cost (payments) | -2,860 | 784 | 158 |
Deferred income taxes | 5,798 | 1,744 | 721 |
Other, net | -2,606 | -325 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Decrease (increase) in accounts receivable, net | -5,173 | 7,630 | 12,069 |
Decrease (increase) in inventory | 51 | -507 | -45 |
Increase in prepaid expenses and other current assets | 3,316 | -2,536 | -4,618 |
(Decrease) increase in accounts payable | -278 | -1,336 | -4,270 |
(Decrease) increase in other accrued expenses and liabilities | -20,055 | 9,398 | -1,648 |
Other, net | 1,796 | -17,089 | -191 |
Net cash provided by continuing operations | 25,561 | 44,111 | 56,524 |
Net cash provided by (used in) discontinued operations | 15,461 | 19,856 | |
Net cash provided by operating activities | 25,561 | 59,572 | 76,380 |
Cash Flows from Investing Activities | |||
Purchases of property, plant and equipment | -11,265 | -15,873 | -13,461 |
Proceeds from the sale of property, plant and equipment | 169 | 3,723 | 537 |
Net cash flows from investing activities within discontinued operations | 22,500 | -395 | |
Net cash provided by (used in) investing activities | -11,096 | 10,350 | -13,319 |
Cash Flows from Financing Activities | |||
Repayment of borrowings | -15,313 | -12,250 | -69,188 |
Debt financing costs | -581 | ||
Issuance of common stock | -481 | 512 | 660 |
Excess tax benefits from stock-based compensation | 42 | 57 | |
Purchase of treasury stock | -7,354 | -1,625 | -4,402 |
Dividends paid | -21,485 | -16,121 | -26,961 |
Net cash used in financing activities | -44,633 | -30,023 | -99,834 |
Effect of exchange rate changes on cash and cash equivalents | -1,830 | -536 | 225 |
Net increase (decrease) in cash and cash equivalents | -31,998 | 39,363 | -36,548 |
Cash and cash equivalents at beginning of year | 88,747 | 49,384 | 85,932 |
Cash and cash equivalents at end of year | $56,749 | $88,747 | $49,384 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $118,487 | $341,149 | $1,276,266 | ($1,244,224) | ($45,323) | $446,355 |
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of stock options and release of unvested shares | 250 | 410 | -205 | 455 | ||
Net tax effect of stock options exercised and release of unvested shares | -3,082 | -3,082 | ||||
Stock-based compensation | 3,412 | 3,412 | ||||
Dividends paid ($0.34, $0.255, and $0.425 per share in 2014, 2013, and 2012 respectively) | -26,961 | -26,961 | ||||
Treasury stock issued | -303 | 454 | 151 | |||
Purchase of treasury stock | -4,402 | -4,402 | ||||
Net income (loss) | -83,353 | -83,353 | ||||
Other comprehensive income (loss) | -4,411 | -4,411 | ||||
Balance at Dec. 31, 2012 | 118,737 | 341,586 | 1,165,952 | -1,248,377 | -49,734 | 328,164 |
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of stock options and release of unvested shares | 450 | 469 | -407 | 512 | ||
Net tax effect of stock options exercised and release of unvested shares | -2,606 | -2,606 | ||||
Stock-based compensation | 5,744 | 5,744 | ||||
Dividends paid ($0.34, $0.255, and $0.425 per share in 2014, 2013, and 2012 respectively) | -16,121 | -16,121 | ||||
Treasury stock issued | -98 | 135 | 37 | |||
Purchase of treasury stock | -1,662 | -1,662 | ||||
Net income (loss) | 13,370 | 13,370 | ||||
Other comprehensive income (loss) | 21,616 | 21,616 | ||||
Balance at Dec. 31, 2013 | 119,187 | 345,095 | 1,163,201 | -1,250,311 | -28,118 | 349,054 |
Increase (Decrease) in Stockholders' Equity | ||||||
Exercise of stock options and release of unvested shares | 420 | -151 | -750 | -481 | ||
Net tax effect of stock options exercised and release of unvested shares | -1,993 | -1,993 | ||||
Stock-based compensation | 4,055 | 4,055 | ||||
Dividends paid ($0.34, $0.255, and $0.425 per share in 2014, 2013, and 2012 respectively) | -21,485 | -21,485 | ||||
Treasury stock issued | -767 | 1,307 | 540 | |||
Purchase of treasury stock | -7,894 | -7,894 | ||||
Net income (loss) | 23,991 | 23,991 | ||||
Other comprehensive income (loss) | -19,111 | -19,111 | ||||
Balance at Dec. 31, 2014 | $119,607 | $346,239 | $1,165,707 | ($1,257,648) | ($47,229) | $326,676 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Changes in Equity | |||||||
Dividends paid (in dollars per share) | $0.09 | $0.09 | $0.09 | $0.09 | $0.34 | $0.26 | $0.43 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Significant Accounting Policies | |||||||||||
Significant Accounting Policies | |||||||||||
Note A — Significant Accounting Policies | |||||||||||
Consolidation | |||||||||||
The accompanying consolidated financial statements present the financial position and the results of operations and cash flows of Harte Hanks, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||
As used in this report, the terms “Harte Hanks,” “we,” “us,” or “our” may refer to Harte Hanks, Inc., one or more of our consolidated subsidiaries, or all of them taken as a whole. | |||||||||||
Discontinued Operations | |||||||||||
As discussed in Note O, Discontinued Operations, we sold the assets of our Florida Shoppers operations on December 31, 2012 and the assets of our California Shoppers operations on September 27, 2013. The operating results and related balances of Shoppers, including the losses on the sales, are being reported as discontinued operations in the Consolidated Financial Statements. Unless otherwise stated, amounts related to the Shoppers operations are excluded from the Notes to Consolidated Financial Statements for all years presented. | |||||||||||
Reclassification of Prior Year Amounts | |||||||||||
All prior year amounts related to discontinued operations have been reclassified for comparative purposes. | |||||||||||
During the second quarter of 2014, the Company initiated a new strategy and revised the operational structure to suit that new strategy by organizing into two distinct operating divisions: Customer Interaction and Trillium Software. We determined that these two divisions were reportable segments and accordingly we have revised our segment reporting to reflect our current management approach and recast prior periods presented herein to conform to the current reportable segments presentation. | |||||||||||
Use of Estimates | |||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results and outcomes could differ from those estimates and assumptions. Such estimates include, but are not limited to, estimates related to pension accounting; estimates related to fair value for purposes of assessing goodwill, long-lived assets and intangible assets for impairment; estimates related to income taxes; and estimated related to contingencies. On an ongoing basis, management reviews its estimates based on currently available information. Changes in facts and circumstances could result in revised estimates and assumptions. | |||||||||||
Operating Expense Presentation in Consolidated Statements of Comprehensive Income (Loss) | |||||||||||
The “Labor” line in the Consolidated Statements of Comprehensive Income (Loss) includes all employee payroll and benefits, including stock-based compensation, along with temporary labor costs. The “Production and distribution” and “Advertising, selling, general and administrative” lines do not include labor, depreciation or amortization. | |||||||||||
Revenue Recognition | |||||||||||
We recognize revenue when all of the following criteria are satisfied: (i) persuasive evidence of an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) the service has been performed or the product has been delivered. | |||||||||||
Payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. | |||||||||||
Our accounting policy for revenue recognition has an impact on our reported results and relies on certain estimates that require judgments on the part of management. The portion of our revenue that is most subject to estimates and judgments is revenue recognized using the proportional performance method, as discussed below. | |||||||||||
Revenue is derived from a variety of services and products, and may be billed at hourly rates, monthly rates or a fixed price. For all sales, we require either a purchase order, a statement of work signed by the client, a written contract, or some other form of written authorization from the client. | |||||||||||
Revenue from agency and creative services, analytical services and market research is typically billed based on time and materials or at a fixed price. If billed at a fixed price, revenue is recognized on a proportional performance basis as the services specified in the arrangement are performed. In most cases, proportional performance is based on the ratio of direct costs incurred to total estimated costs where the costs incurred, primarily labor hours and outsourced services, represent a reasonable surrogate for output measures or contract performance. For fixed fee market research revenue streams, revenue is recognized in proportion to the value of service provided based on output criteria. | |||||||||||
Revenue from email marketing, social media marketing and other digital solutions is recognized as the work is performed. Revenue from these services is typically based on a fixed price or rate given to the client. | |||||||||||
Revenue associated with new marketing database builds is deferred until complete or until client acceptance. Upon completion or acceptance, revenue and direct build costs are then recognized over the term of the related arrangement as the services are provided. Revenue from database and website hosting services is recognized ratably over the contractual hosting period. Pricing for database builds are typically based on a fixed price and hosting fees are typically based on a fixed price per month or per contract. | |||||||||||
Revenue from technology database subscriptions is based on a fixed price and is recognized ratably over the term of the subscription. Revenue from stand-alone technology data sales is recognized at the time of delivery. | |||||||||||
Revenue from services such as data processing, printing, personalization of communication pieces using laser and inkjet printing, targeted mail, and transportation logistics is recognized as the work is performed. Revenue from these services is typically based on a fixed price or rate given to the client. Postage costs of mailings in our direct mail business are borne by our clients and are not directly reflected in our revenues or expenses. | |||||||||||
Revenue related to fulfillment and contact centers, including inbound and outbound calling and email management, is also typically based on a fixed price per transaction or service provided. Revenue from these services is recognized as the service or activity is performed. | |||||||||||
Revenue from software arrangements involving multiple elements is allocated to each element based on the vendor-specific objective evidence of fair values of the respective elements. For software sales with multiple elements (for example, software licenses with undelivered post-contract customer support or “PCS”), we allocate revenue to each component of the arrangement using the residual value method based on the fair value of the undelivered elements. This means we defer revenue from the software sale equal to the fair value of the undelivered elements. The fair value of PCS is based upon separate sales of renewals to other clients. The fair value of services, such as training and consulting, is based upon separate sales of these services to other clients. | |||||||||||
The revenue allocated to PCS is recognized ratably over the term of the support period. Revenue allocated to professional services is recognized as the services are performed. The revenue allocated to software products, including time-based software licenses, is recognized, if collection is probable, upon execution of a licensing agreement and shipment of the software or ratably over the term of the license, depending on the structure and terms of the arrangement. If the licensing agreement is for a term of a year or less and includes PCS, we recognize the software and the PCS revenue ratably over the term of the license. | |||||||||||
For certain non-software arrangements, we enter into contracts that include delivery of a combination of our service offerings. Such arrangements are divided into separate units of accounting, provided that the delivered element(s) has stand-alone value and objective and reliable evidence of the fair value of the undelivered element(s) exist(s). | |||||||||||
When we are able to unbundle the arrangement into separate units of accounting, revenue from each service is recognized separately, and in accordance with our revenue recognition policy for each element. If we are unable to unbundle the arrangement into separate units of accounting, we apply one of the revenue recognition policies to the entire arrangement. This might impact the timing of revenue recognition, but would not change the total revenue recognized from the arrangement. | |||||||||||
Taxes collected from customers and remitted to governmental authorities are not reflected in our revenues or expenses. | |||||||||||
Cash Equivalents | |||||||||||
All highly liquid investments with an original maturity of 90 days or less at the time of purchase are considered to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. | |||||||||||
Allowance for Doubtful Accounts | |||||||||||
We maintain our allowance for doubtful accounts at a balance adequate to reduce accounts receivable to the amount of cash expected to be realized upon collection. The methodology used to determine the minimum allowance balance is based on our prior collection experience and is generally related to the accounts receivable balance in various aging categories. The balance is also influenced by specific clients’ financial strength and circumstance. Accounts that are determined to be uncollectible are written off in the period in which they are determined to be uncollectible. Periodic changes to the allowance balance are recorded as increases or decreases to bad debt expense, which is included in the “Advertising, selling, general and administrative” line of our Consolidated Statements of Comprehensive Income (Loss). The changes in the allowance for doubtful accounts consisted of the following: | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Balance at beginning of year | $ | 1,729 | $ | 2,574 | $ | 2,445 | |||||
Net charges to expense | (68 | ) | 47 | 722 | |||||||
Amounts recovered against the allowance, net of charges | (437 | ) | (892 | ) | (593 | ) | |||||
Balance at end of year | $ | 1,224 | $ | 1,729 | $ | 2,574 | |||||
Inventory | |||||||||||
Inventory, consisting primarily of print materials and operating supplies, is stated at the lower of cost (first-in, first-out method) or market. | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment are stated on the basis of cost. Depreciation is computed using the straight-line method at rates calculated to amortize the cost of the assets over their useful lives. The general ranges of estimated useful lives are: | |||||||||||
Buildings and improvements | 10 to 40 years | ||||||||||
Software | 3 to 10 years | ||||||||||
Equipment and furniture | 3 to 20 years | ||||||||||
Long-lived assets such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We did not record an impairment of long-lived assets in 2014, 2013 or 2012. | |||||||||||
Property, plant and equipment includes capital lease assets. Capital lease assets at December 31, 2014 and 2013 consisted of: | |||||||||||
December 31, | |||||||||||
In thousands | 2014 | 2013 | |||||||||
Equipment and furniture | $ | 1,351 | $ | 2,323 | |||||||
Less accumulated amortization | (980 | ) | (1,535 | ) | |||||||
Net book value | $ | 371 | $ | 788 | |||||||
Amortization expense related to capital lease assets was $0.2 million, $0.3 million and $0.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
Depreciation and amortization on the remaining property, plant and equipment was $14.7 million, $15.4 million and $15.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
Goodwill and Other Intangibles | |||||||||||
Goodwill is recorded to the extent that the purchase price of an acquisition exceeds the fair value of the identifiable net assets acquired. Other intangibles with definite and indefinite useful lives are recorded at fair value at the date of the acquisition. The Company tests its goodwill and other intangible assets with indefinite useful lives for impairment as of November 30 of each year and as of an interim date should factors or indicators become apparent that would require an interim test. During the second quarter of 2014, Harte Hanks initiated a new strategy and began implementing changes to optimize our operational structure for that strategy. As a result, we now report two distinct divisions as reportable segments and reporting units — Customer Interaction and Trillium Software. The Company performs a qualitative assessment to determine whether fair value may be less than carrying value and, if necessary, assesses the impairment of its goodwill by determining the fair value of each of its reporting units and comparing the fair value to the carrying value for each reporting unit. Fair values of our reporting units and other intangibles with indefinite useful lives have been determined using discounted cash flow and cash flow multiple methodologies. Our overall market capitalization also was considered when evaluating the fair values of our reporting units. Intangible assets with definite useful lives are amortized over their respective estimated useful lives and reviewed for impairment if we believe that changes or triggering events have occurred that could have caused the carrying value of the intangible assets to exceed its fair value. | |||||||||||
As a result of a significant decrease in forecasted revenues and an overall strategic assessment of the related operations, management completed an evaluation of the Aberdeen Group trade name as of September 30, 2013. A discounted cash flow model was used to calculate the fair value of the Aberdeen Group trade name. The significant assumptions used in this method included the (i) revenue growth rates for the Aberdeen Group, (ii) discount rate, (iii) tax rate and (iv) royalty rate. These assumptions are considered Level 3 inputs under the fair value hierarchy established by FASB ASC 820, Fair Value Measurements and Disclosures. Harte Hanks recorded a non-cash trade name intangible asset impairment charge of $2.8 million. The impairment charge is included in Intangible impairment in the Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2013. | |||||||||||
As a result of continuing revenue declines in Shoppers, and in conjunction with management’s evaluation of the business, the Company determined that a triggering event had occurred in the second quarter of 2012. The subsequent goodwill impairment testing resulted in impairment charges in the second quarter of 2012 of $156.9 million. We also recorded $8.4 million in impairment charges related to trade names and client relationships associated with the Flyer, which are part of the Florida Shoppers operations. The total impairment of $165.3 million is included in discontinued operations. | |||||||||||
We have not recorded any other impairments of goodwill or other intangible assets in our continuing operations in any of the years during the three-year period ended December 31, 2014. | |||||||||||
Income Taxes | |||||||||||
Income taxes are calculated using the asset and liability method. Deferred income taxes are recognized for the tax consequences resulting from temporary differences by applying enacted statutory tax rates applicable to future years. These temporary differences are associated with differences between the financial and the tax basis of existing assets and liabilities. Valuation allowances have been established where we have assessed that it is more likely than not that certain deferred tax assets will not be realized in the foreseeable future. Any statutory change in tax rates will be recognized immediately in deferred taxes and income. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. | |||||||||||
Earnings Per Share | |||||||||||
Basic earnings per common share are based upon the weighted-average number of common shares outstanding during the period. Diluted earnings per common share are based upon the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. Dilutive common stock equivalents are calculated based on the assumed exercise of stock options and vesting of unvested shares using the treasury stock method. | |||||||||||
Stock-Based Compensation | |||||||||||
All share-based awards are recognized as operating expense in the “Labor” line of the Consolidated Statements of Comprehensive Income (Loss). Calculated expense is based on the fair values of the awards on the date of grant and is recognized over the requisite service period. | |||||||||||
Reserve for Healthcare, Workers’ Compensation, Automobile and General Liability | |||||||||||
We are self-insured for our workers’ compensation, automobile, general liability and the majority of our healthcare insurance. We make various subjective judgments about a number of factors in determining our reserve for healthcare, workers’ compensation, automobile and general liability insurance, and the related expense. Our deductible for individual healthcare claims is $0.3 million. Our deductible for workers’ compensation is $0.5 million. We have a $0.3 million deductible for automobile and general liability claims. Our insurance administrator provides us with estimated loss reserves, based upon its experience dealing with similar types of claims, as well as amounts paid to date against these claims. We apply actuarial factors to both insurance estimated loss reserves and to paid claims and then determine reserve levels, taking into account these calculations. At December 31, 2014 and 2013, our reserve for healthcare, workers’ compensation, net, automobile and general liability was $7.8 million and $9.4 million, respectively. Periodic changes to the reserve for workers’ compensation, automobile and general liability are recorded as increases or decreases to insurance expense, which is included in the “Advertising, selling, general and administrative” line of our Consolidated Statements of Comprehensive Income (Loss). Periodic changes to the reserve for healthcare are recorded as increases or decreases to employee benefits expense, which is included in the “Labor” line of our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||
Foreign Currencies | |||||||||||
In most instances the functional currencies of our foreign operations are the local currencies. Assets and liabilities recorded in foreign currencies are translated in U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during a given month. Adjustments resulting from this translation are charged or credited to other comprehensive loss. | |||||||||||
Geographic Concentrations | |||||||||||
Depending on the needs of our clients, our services are provided in an integrated approach through more than 30 facilities worldwide, of which 8 are located outside of the U.S. | |||||||||||
Information about the operations in different geographic areas: | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Revenue (1) | |||||||||||
United States | $ | 463,752 | $ | 469,596 | $ | 492,118 | |||||
Other countries | 89,924 | 90,013 | 88,973 | ||||||||
Total revenue | $ | 553,676 | $ | 559,609 | $ | 581,091 | |||||
December 31, | |||||||||||
In thousands | 2014 | 2013 | |||||||||
Property, plant and equipment (2) | |||||||||||
United States | $ | 33,134 | $ | 34,556 | |||||||
Other countries | 3,779 | 6,155 | |||||||||
Total property, plant and equipment | $ | 36,913 | $ | 40,711 | |||||||
-1 | Geographic revenues are based on the location of the service being performed. | ||||||||||
-2 | Property, plant and equipment are based on physical location. | ||||||||||
Recent Accounting Pronouncements | |||||||||||
During the second quarter of 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU changes the requirements for reporting discontinued operations. Under the ASU, discontinued operations are defined as either a: | |||||||||||
· | Component of an entity or group of components that: | ||||||||||
· | has been disposed, meets the criteria to be classified as held-for sale, or has been abandoned/spun-off; and | ||||||||||
· | represents a strategic shift that has (or will have a major effect on an entity’s operations and financial results), or a | ||||||||||
· | Business or nonprofit activity that, on acquisition, meets the criteria to be classified as held-for sale. | ||||||||||
This ASU is effective for interim periods beginning after December 15, 2014, is applied prospectively and early adoption is permitted. This ASU does not have an impact on our December 31, 2014 financial statements and does not impact any of our previously reported and disclosed discontinued operations. The impact of the Company will be dependent on any transaction that is within the scope of the new guidance. | |||||||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. | |||||||||||
Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | |
Note B — Fair Value of Financial Instruments | |
FASB ASC 820, Fair Value Measurements and Disclosures, (ASC 820) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into three levels: | |
Level 1Quoted prices in active markets for identical assets or liabilities. | |
Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |
Because of their maturities and/or variable interest rates, certain financial instruments have fair values approximating their carrying values. These instruments include cash and cash equivalents, accounts receivable and trade payables. The fair value of our outstanding debt is disclosed in Note C, Long-Term Debt. The fair value of the assets in our funded pension plan is disclosed in Note F, Employee Benefit Plans. As discussed in Note E, Goodwill and Other Intangible Assets, in the third quarter of 2013, the fair value of our Aberdeen Group trade name was calculated using a discounted cash flow model. | |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Long-Term Debt | ||||||||||||||
Long-Term Debt | ||||||||||||||
Note C — Long-Term Debt | ||||||||||||||
Our long-term debt obligations at year-end were as follows: | ||||||||||||||
December 31, | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
2013 Revolving Credit Facility, various interest rates based on Eurodollar rate, due August 16, 2016 ($73.8 million capacity and effective rate of 2.42% at December 31, 2014) | $ | — | $ | — | ||||||||||
2011 Term Loan Facility, various interest rates based on LIBOR (effective rate of 2.17% at December 31, 2014), due August 16, 2016 | 82,687 | 98,000 | ||||||||||||
Total debt | $ | 82,687 | $ | 98,000 | ||||||||||
Less current maturities | 18,375 | 15,313 | ||||||||||||
Total long-term debt | $ | 64,312 | $ | 82,687 | ||||||||||
The carrying values and estimated fair values of our outstanding debt at year-end were as follows: | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
In thousands | Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | |||||||||||
Total Debt | $ | 82,687 | $ | 82,687 | $ | 98,000 | $ | 98,000 | ||||||
The estimated fair values were calculated using current rates provided to us by our bankers for debt of the same remaining maturity and characteristics. These current rates are considered Level 2 inputs under the fair value hierarchy established by ASC 820. | ||||||||||||||
Credit Facilities | ||||||||||||||
On August 16, 2011, we entered into a five-year $122.5 million term loan facility (2011 Term Loan Facility) with Bank of America, N.A., as Administrative Agent. The 2011 Term Loan Facility matures on August 16, 2016. For each borrowing under the 2011 Term Loan Facility, we can generally choose to have the interest rate for that borrowing calculated based on either (i) the LIBOR rate (as defined in the 2011 Term Loan Facility) for the applicable interest period, plus a spread (ranging from 2.00% to 2.75% per annum) based on our total net funded debt-to-EBITDA ratio (as defined in the 2011 Term Loan Facility) then in effect; or (ii) the highest of (a) the Agent’s prime rate, (b) the BBA daily floating rate LIBOR, as determined by Agent for such date, plus 1.00%, and (c) the Federal Funds Rate plus 0.50%, plus a spread (ranging from 1.00% to 1.75% per annum) based on our total net funded debt-to-EBITDA ratio then in effect. We may elect to prepay the 2011 Term Loan Facility at any time without incurring any prepayment penalties. | ||||||||||||||
On August 8, 2013, we entered into a three-year $80 million revolving credit facility, which includes a $25 million letter of credit sub-facility and a $5 million swing line loan sub-facility (2013 Revolving Credit Facility) with Bank of America, N.A. (as Administrative Agent, Swing Line Lender and L/C Issuer) and the other lenders party thereto. The 2013 Revolving Credit Facility permits us to request up to a $15 million increase in the total amount of the facility. The 2013 Revolving Credit Facility matures on August 16, 2016. We may elect to prepay the 2013 Revolving Credit Facility at any time without incurring any prepayment penalties. | ||||||||||||||
The 2013 Revolving Credit Facility amends and restates our August 12, 2010 credit facility (2010 Revolving Credit Facility), with the lenders party thereto and the Agent, and replaces its three-year $70 million revolving credit facility, under which Harte Hanks had no borrowings as of August 8, 2013 (except for letters of credit totaling approximately $9.5 million). The 2013 Revolving Credit Facility did not replace, and is in addition to, the 2011 Term Loan Facility. | ||||||||||||||
For each borrowing under the 2013 Revolving Credit Facility, we can generally choose to have the interest rate for that borrowing calculated on either (i) the Eurodollar rate for the applicable interest period plus a spread which is determined based on our total net debt-to-EBITDA ratio then in effect, which ranges from 2.25% to 3.00% per annum; or (ii) the highest of (a) the Agent’s prime rate, (b) the Federal Funds Rate plus 0.50% per annum or (c) Eurodollar rate plus 1.00% per annum, plus a spread which is determined based on our total debt-to-EBITDA ratio then in effect, which spread ranges from 1.25% to 2.00% per annum. | ||||||||||||||
We also pay a quarterly commitment fee under the 2013 Revolving Credit Facility, which is based on a rate applied to the difference between total commitment amount under the 2013 Revolving Credit Facility and the aggregate amount of outstanding obligations under such facility. The commitment fee rate ranges from 0.50% to 0.55% per annum, depending on our total net debt-to-EBITDA ratio then in effect. | ||||||||||||||
In addition, we pay a letter of credit fee with respect to outstanding letters of credit. That fee is calculated by applying a rate equal to the spread applicable to Eurodollar based loans plus a fronting fee of 0.125% per annum to the average daily undrawn amount of the outstanding letters of credit. | ||||||||||||||
At December 31, 2014 we had letters of credit totaling $6.2 million issued under the 2013 Revolving Credit Facility, decreasing the amount available for borrowing to $73.8 million. At December 31, 2013 we had letters of credit totaling $7.5 million issued under the 2013 Revolving Credit Facility, decreasing the amount available for borrowing to $72.5 million. | ||||||||||||||
Under both of our credit facilities, we are required to maintain an interest coverage ratio of not less than 2.75 to 1, and we must maintain a total debt-to-EBITDA ratio of not more than 2.25 to 1 under the 2013 Revolving Credit Facility and 3.00 to 1 under the 2011 Term Loan Facility. The credit facilities also contain customary covenants restricting our and our subsidiaries’ ability to: | ||||||||||||||
· | authorize distributions, dividends, stock redemptions and repurchases if a payment event of default has occurred and is continuing; | |||||||||||||
· | enter into certain merger or liquidation transactions; | |||||||||||||
· | grant liens; | |||||||||||||
· | enter into certain sale and leaseback transactions; | |||||||||||||
· | have foreign subsidiaries account for more than 25% of the consolidated revenue, or 20% of the assets of Harte Hanks and its subsidiaries, in the aggregate; | |||||||||||||
· | enter into certain transactions with affiliates; and | |||||||||||||
· | allow the total indebtedness of Harte Hanks’ subsidiaries to exceed $20.0 million. | |||||||||||||
The credit facilities each also include customary covenants regarding reporting obligations, delivery of notices regarding certain events, maintaining our corporate existence, payment of obligations, maintenance of our properties and insurance thereon at customary levels with financially sound and reputable insurance companies, maintaining books and records and compliance with applicable laws. The credit facilities each also provide for customary events of default including nonpayment of principal or interest, breach of representations and warranties, violations of covenants, failure to pay certain other indebtedness, bankruptcy and material judgments and liabilities, certain violations of environmental laws or ERISA or the occurrence of a change of control. Our material domestic subsidiaries have guaranteed the performance of Harte Hanks under our credit facilities. As of December 31, 2014, we were in compliance with all of the covenants of our credit facilities. | ||||||||||||||
The future minimum principal payments related to our debt at December 31, 2014 are as follows: | ||||||||||||||
In thousands | ||||||||||||||
2015 | $ | 18,375 | ||||||||||||
2016 | 64,312 | |||||||||||||
2017 | — | |||||||||||||
2018 | — | |||||||||||||
2019 | — | |||||||||||||
Thereafter | — | |||||||||||||
$ | 82,687 | |||||||||||||
Cash payments for interest were $2.5 million, $2.8 million and $3.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Taxes | |||||||||||||||||
Income Taxes | |||||||||||||||||
Note D — Income Taxes | |||||||||||||||||
The components of income tax expense (benefit) are as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||||||
Current | |||||||||||||||||
Federal | $ | 5,836 | $ | 8,689 | $ | 14,676 | |||||||||||
State and Local | 619 | 3,554 | 3,521 | ||||||||||||||
Foreign | 1,062 | 1,189 | 1,878 | ||||||||||||||
Total Current | $ | 7,517 | $ | 13,432 | $ | 20,075 | |||||||||||
Deferred | |||||||||||||||||
Federal | $ | 2,862 | $ | 3,532 | $ | 2,831 | |||||||||||
State and local | 2,177 | (2,142 | ) | (1,232 | ) | ||||||||||||
Foreign | 759 | 354 | (878 | ) | |||||||||||||
Total Deferred | $ | 5,798 | $ | 1,744 | $ | 721 | |||||||||||
Total income tax expense | $ | 13,315 | $ | 15,176 | $ | 20,796 | |||||||||||
The U.S. and foreign components of income from continuing operations before income taxes were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||||||
United States | $ | 29,962 | $ | 33,143 | $ | 52,287 | |||||||||||
Foreign | 7,344 | 6,474 | 3,905 | ||||||||||||||
Total income (loss) from continuing operations before income taxes | $ | 37,306 | $ | 39,617 | $ | 56,192 | |||||||||||
The differences between total income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate to income before income taxes were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2014 | Rate | 2013 | Rate | 2012 | Rate | |||||||||||
Computed expected income tax expense (benefit) | $ | 13,057 | 35 | % | $ | 13,866 | 35 | % | $ | 19,667 | 35 | % | |||||
Net effect of state income taxes | 1,817 | 5 | % | 918 | 2 | % | 2,501 | 4 | % | ||||||||
Foreign subsidiary dividend inclusions | 135 | 0 | % | 1,125 | 3 | % | 120 | 0 | % | ||||||||
Foreign tax rate benefit | (749 | ) | -2 | % | (570 | ) | -1 | % | (366 | ) | -1 | % | |||||
Change in beginning of year valuation allowance | (537 | ) | -1 | % | (87 | ) | 0 | % | (1,225 | ) | -2 | % | |||||
Other, net | (408 | ) | -1 | % | (76 | ) | 0 | % | 99 | 0 | % | ||||||
Income tax expense (benefit) for the period | $ | 13,315 | 36 | % | $ | 15,176 | 38 | % | $ | 20,796 | 37 | % | |||||
Total income tax expense (benefit) was allocated as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||||||
Continuing operations | $ | 13,315 | $ | 15,176 | $ | 20,796 | |||||||||||
Discontinued operations | — | 1,225 | (48,959 | ) | |||||||||||||
Loss on sale | — | (9,047 | ) | (2,147 | ) | ||||||||||||
Stockholders’ equity | (9,527 | ) | 17,373 | (736 | ) | ||||||||||||
Total | $ | 3,788 | $ | 24,727 | $ | (31,046 | ) | ||||||||||
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
In thousands | 2014 | 2013 | |||||||||||||||
Deferred tax assets | |||||||||||||||||
Deferred compensation and retirement plan | $ | 25,432 | $ | 14,449 | |||||||||||||
Accrued expenses not deductible until paid | 3,925 | 4,430 | |||||||||||||||
Employee stock-based compensation | 1,182 | 2,561 | |||||||||||||||
Accrued payroll not deductible until paid | 948 | 2,270 | |||||||||||||||
Accounts receivable, net | 1,175 | 1,345 | |||||||||||||||
Other, net | 76 | 124 | |||||||||||||||
State income tax | 60 | 269 | |||||||||||||||
Federal net operating loss carryforwards | 130 | 130 | |||||||||||||||
Foreign net operating loss carryforwards | 2,805 | 2,750 | |||||||||||||||
State net operating loss carryfowards | 2,010 | 2,037 | |||||||||||||||
Foreign tax credit carryforwards | 739 | 1,125 | |||||||||||||||
Capital loss carryforwards | 7,182 | 6,713 | |||||||||||||||
Total gross deferred tax assets | 45,664 | 38,203 | |||||||||||||||
Less valuation analysis | (10,933 | ) | (10,744 | ) | |||||||||||||
Net deferred tax assets | $ | 34,731 | $ | 27,459 | |||||||||||||
Deferred tax liabilities | |||||||||||||||||
Property, plant and equipment | $ | (6,484 | ) | $ | (7,250 | ) | |||||||||||
Goodwill and other intangibles | (82,702 | ) | (78,301 | ) | |||||||||||||
Total gross deferred tax liabilities | (89,186 | ) | (85,551 | ) | |||||||||||||
Net deferred tax liabilities | $ | (54,455 | ) | $ | (58,092 | ) | |||||||||||
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based on the expectation of future taxable income and that the deductible temporary differences will offset existing taxable temporary differences, we believe it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances, at December 31, 2014 and 2013. | |||||||||||||||||
Net deferred taxes are recorded both as a current deferred income tax asset and as other long-term liabilities based upon the classification of the related assets and liabilities that give rise to the temporary difference. There are approximately $29.7 million and $19.8 million of deferred tax assets related to non-current items that are netted with long-term deferred tax liabilities at December 31, 2014 and 2013, respectively. | |||||||||||||||||
Harte Hanks or one of our subsidiaries files income tax returns in the U.S. federal, U.S. state and foreign jurisdictions. For U.S. federal, U.S. state and foreign returns, we are no longer subject to tax examinations for years prior to 2010. | |||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefit is as follows: | |||||||||||||||||
In thousands | |||||||||||||||||
Balance at January 1, 2013 | $ | 51 | |||||||||||||||
Additions for current year tax positions | — | ||||||||||||||||
Additions for prior year tax positions | — | ||||||||||||||||
Reductions for prior year tax positions | — | ||||||||||||||||
Lapse of statute | (24 | ) | |||||||||||||||
Settlements | — | ||||||||||||||||
Balance at December 31, 2013 | $ | 27 | |||||||||||||||
Additions for current year tax positions | $ | — | |||||||||||||||
Additions for prior year tax positions | — | ||||||||||||||||
Reductions for prior year tax positions | — | ||||||||||||||||
Lapse of statute | (27 | ) | |||||||||||||||
Settlements | — | ||||||||||||||||
Balance at December 31, 2014 | $ | — | |||||||||||||||
As of December 31, 2014 there is no federally effected unrecognized tax benefit to be recognized in future periods. | |||||||||||||||||
We have elected to classify any interest and penalties related to income taxes within income tax expense in our Consolidated Statements of Comprehensive Income (Loss). We did not recognize any tax benefits for the reduction of accrued interest and penalties associated with the reduction of the liability for unrecognized tax benefits during the year ended December 31, 2013, but recognized $0.1 million during the year ended December 31, 2014 and December 31, 2013. We did not have any interest and penalties accrued at December 31, 2014 or 2013. | |||||||||||||||||
As of December 31, 2014, we had net operating loss carryforwards that are available to reduce future taxable income and that will begin to expire in 2029. | |||||||||||||||||
The valuation allowance for deferred tax assets was $10.9 million and $10.7 million at December 31, 2014 and 2013. The net change in valuation allowance was an increase of $0.2 million in 2014 and $8.3 million in 2013. The valuation allowance at December 31, 2014 and December 31, 2013 relates to net operating loss, capital loss, and foreign tax credit carryforwards, which are not expected to be realized. As part of our assessment of the realizability of our deferred tax assets, and based on the expectations of future taxable income and that the deductible temporary differences will offset existing taxable temporary differences, we reduced our January 1, 2012 valuation allowance associated with the Florida Shoppers net operating loss by $1.0 million. | |||||||||||||||||
Deferred income taxes have not been provided on the undistributed earnings of our foreign subsidiaries as these earnings have been, and under current plans will continue to be, permanently reinvested in these subsidiaries. As of December 31, 2014, the net cumulative undistributed earnings of these subsidiaries were approximately $1.9 million. If those earnings were not considered permanently reinvested, U.S. federal deferred income taxes would have been recorded, after consideration of U.S. foreign tax credits. However, it is not practicable to estimate the amount of additional taxes which may be payable upon the distribution of their cumulative earnings. As of December 31, 2014 approximately $4.7 million of cash is located within certain foreign subsidiaries that if repatriated would require that we accrue and pay approximately $0.9 million in additional tax. | |||||||||||||||||
Cash payments for income taxes were $4.9 million, $11.3 million and $13.6 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Other Intangible Assets | |||||||||||
Goodwill and Other Intangible Assets | |||||||||||
Note E — Goodwill and Other Intangible Assets | |||||||||||
Goodwill represents the excess of the purchase price of an acquisition over the fair values of the identifiable net assets acquired. Other intangible assets with definite and indefinite useful lives are recorded at fair value at the date of acquisition. The Company tests its goodwill and other intangible assets with indefinite useful lives for impairment as of November 30 of each year and as of an interim date should factors or indicators become apparent that would require an interim test. The Company performs a qualitative assessment to determine whether fair value may be less than carrying value and, if necessary, assesses the impairment of its goodwill by determining the fair value of each of its reporting units and comparing the fair value to the carrying value for each reporting unit. During the second quarter of 2014, Harte Hanks initiated a new strategy and began implementing changes to optimize our operational structure for that strategy. As a result, we now report two distinct divisions as reportable segments and reporting units — Customer Interaction and Trillium Software. We performed an impairment test immediately before and after this change in reporting units, utilizing the same methodology as our November 30 annual impairment test and no indication of impairment was identified. | |||||||||||
In 2013, as a result of a significant decrease in forecasted revenues and an overall strategic assessment of the related operations, management completed an evaluation of the Aberdeen Group trade name as of September 30, 2013. A discounted cash flow model was used to calculate the fair value of the Aberdeen Group trade name. The significant assumptions used in this method included the (i) revenue growth rates for the Aberdeen Group, (ii) discount rate, (iii) tax rate and (iv) royalty rate. These assumptions are considered Level 3 inputs under the fair value hierarchy established by ASC 820. As a result of this analysis, during the third quarter of 2013 the Company recorded a non-cash trade name intangible asset impairment charge of $2.8 million. The impairment charge is included in Intangible impairment in the Consolidated Statements of Comprehensive Income (Loss) in the year ended December 31, 2013. | |||||||||||
In 2012, as a result of continuing revenue declines in Shoppers, and in conjunction with management’s evaluation of the business, the Company determined that a triggering event had occurred and that an interim step-one impairment test of Shoppers’ goodwill was warranted in connection with the preparation of its second quarter 2012 financial statements. The fair value of the Shoppers unit was estimated using a discounted cash flow model and a cash flow multiple model. The fair value of the Shoppers unit was estimated to be less than its related carrying value. Management determined that the goodwill balance with respect to this reporting unit was impaired and step-two testing was deemed necessary. | |||||||||||
The 2012 impairment analysis indicated that $156.9 million of goodwill and $8.4 million of other intangibles, relating to trade names and client relationships associated with the Tampa Flyer (included in the Florida Shoppers operations) acquisition in April 2005, were impaired. As a result, a total impairment charge of $165.3 million was recorded in the Consolidated Statements of Comprehensive Income (Loss) in the second quarter of 2012 and is reflected in the Discontinued Operations section of the Statements of Comprehensive Income (Loss). | |||||||||||
We performed our annual goodwill impairment testing as of November 30, 2014. Consistent with prior periods, fair value was determined using a discounted cash flow model, a cash flow multiple model, and with consideration of our overall market capitalization. We did not record any impairment losses in 2014, 2013 or 2012 related to goodwill associated with our continuing operations. | |||||||||||
The Company continues to monitor potential triggering events, including changes in the business climate in which it operates, attrition of key personnel, the current volatility in the capital markets, the Company’s market capitalization compared to its book value, the Company’s recent operating performance, and the Company’s financial projections. The occurrence of one or more triggering events could require additional impairment testing, which could result in additional impairment charges in the future. | |||||||||||
The net book value of our goodwill was allocated as follows: | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Continuing Operations | |||||||||||
Customer Interactions | $ | 248,891 | $ | 377,854 | $ | 377,854 | |||||
Trillium Software | 149,273 | 20,310 | 20,310 | ||||||||
Discontinued Operations | — | — | 10,551 | ||||||||
Total Goodwill | $ | 398,164 | $ | 398,164 | $ | 408,715 | |||||
Other intangibles with indefinite useful lives relate to trade names associated with the Aberdeen Group acquisition in September 2006. The changes in the carrying amount of other intangibles with indefinite lives are as follows: | |||||||||||
In thousands | |||||||||||
Balance at December 31, 2012 | $ | 5,000 | |||||||||
Purchase Price Consideration | — | ||||||||||
Impairment | (2,750 | ) | |||||||||
Balance at December 31, 2013 | $ | 2,250 | |||||||||
Purchase Price Consideration | — | ||||||||||
Balance at December 31, 2014 | $ | 2,250 | |||||||||
Other intangibles with definite useful lives all relate to contact databases, client relationships and non-compete agreements. Other intangible assets with definite useful lives are amortized on a straight-line basis over their respective estimated useful lives, typically a period of 3 to 10 years, and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We did not record an impairment loss related to other intangibles with definite useful lives associated with our continuing operations in any of the years in the three year period ended December 31, 2014. | |||||||||||
The changes in the carrying amount of other intangibles with definite lives are as follows: | |||||||||||
In thousands | |||||||||||
Balance at December 31, 2012 | $ | 259 | |||||||||
Purchase Price Consideration | — | ||||||||||
Amortization | (206 | ) | |||||||||
Impairment | — | ||||||||||
Balance at December 31, 2013 | $ | 53 | |||||||||
Purchase Price Consideration | — | ||||||||||
Amortization | (26 | ) | |||||||||
Impairment | — | ||||||||||
Balance at December 31, 2014 | $ | 27 | |||||||||
Amortization expense related to other intangibles with definite useful lives was $0.03 million, $0.2 million and $0.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. Expected amortization expense for the next five years is as follows: | |||||||||||
In thousands | |||||||||||
2015 | $ | 27 | |||||||||
2016 | — | ||||||||||
2017 | — | ||||||||||
2018 | — | ||||||||||
2019 | — | ||||||||||
Thereafter | — | ||||||||||
$ | 27 | ||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Employee Benefit Plans | ||||||||||||||
Employee Benefit Plans | ||||||||||||||
Note F — Employee Benefit Plans | ||||||||||||||
Prior to January 1, 1999, we maintained a defined benefit pension plan for which most of our employees were eligible (the Qualified Pension Plan). In conjunction with significant enhancements to our 401(k) plan, we elected to freeze benefits under the Qualified Pension Plan as of December 31, 1998. | ||||||||||||||
In 1994, we adopted a non-qualified, unfunded, supplemental pension plan (Restoration Pension Plan) covering certain employees, which provides for incremental pension payments so that total pension payments equal those amounts that would have been payable from the principal pension plan were it not for limitations imposed by income tax regulation. The benefits under the Restoration Pension Plan were intended to provide benefits equivalent to our Qualified Pension Plan as if such plan had not been frozen. | ||||||||||||||
Effective April 1, 2014, we froze benefits under our Restoration Pension Plan, which was accounted for as a curtailment of the plan in the second quarter of 2014. The plan freeze resulted in a reduction of plan expense of $0.4 million during 2014 and a reduction in the projected benefit obligation of $1.1 million. This curtailment gain offsets the unrecognized loss held by the Restoration Pension Plan. The remaining portion of the unrecognized loss will then be amortized over the average life expectancy of all participants. | ||||||||||||||
The overfunded or underfunded status of our defined benefit postretirement plans is recorded as an asset or liability on our balance sheet. The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligation. Periodic changes in the funded status are recognized through other comprehensive income. We currently measure the funded status of our defined benefit plans as of December 31, the date of our year-end consolidated balance sheets. | ||||||||||||||
The status of the defined benefit pension plans at year-end was as follows: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 161,370 | $ | 179,077 | ||||||||||
Service cost | 100 | 343 | ||||||||||||
Interest cost | 7,698 | 7,237 | ||||||||||||
Actuarial (gain) loss | 32,018 | (16,488 | ) | |||||||||||
Benefits paid | (9,051 | ) | (8,799 | ) | ||||||||||
Curtailments | (1,070 | ) | — | |||||||||||
Benefit obligation at end of year | $ | 191,065 | $ | 161,370 | ||||||||||
Change in plan assets | ||||||||||||||
Fair value of plan assets at beginning of year | 120,604 | 102,174 | ||||||||||||
Actual return on plan assets | 6,887 | 21,127 | ||||||||||||
Contributions | 5,932 | 6,102 | ||||||||||||
Benefits paid | (9,051 | ) | (8,799 | ) | ||||||||||
Fair value of plan assets at end of year | $ | 124,372 | $ | 120,604 | ||||||||||
Funded status at end of year | $ | (66,693 | ) | $ | (40,766 | ) | ||||||||
The following amounts have been recognized in the Consolidated Balance Sheets at December 31: | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
Other current liabilities | $ | 1,537 | $ | 1,572 | ||||||||||
Pensions | 65,156 | 39,194 | ||||||||||||
$ | 66,693 | $ | 40,766 | |||||||||||
The following amounts have been recognized in accumulated other comprehensive loss at December 31: | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
Net loss | $ | 49,560 | $ | 32,279 | ||||||||||
Prior service cost | — | — | ||||||||||||
$ | 49,560 | $ | 32,279 | |||||||||||
We plan to make total contributions of $4.0 million to our Qualified Pension Plan in 2015 in order to obtain the Pension Protection Act of 2006 full funding limit exemption. | ||||||||||||||
We are not required to make and do not intend to make any contributions to our Restoration Pension Plan in 2015 other than to the extent needed to cover benefit payments. We expect benefit payments under this supplemental pension plan to total approximately $1.5 million in 2015. In the event of a change of control, as defined in the plan document, the Restoration Pension Plan is required to be fully funded. | ||||||||||||||
The following information is presented for pension plans with an accumulated benefit obligation in excess of plan assets: | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
Projected benefit obligation | $ | 191,065 | $ | 161,370 | ||||||||||
Accumulated benefit obligation | $ | 191,065 | $ | 160,340 | ||||||||||
Fair value of plan assets | $ | 124,372 | $ | 120,604 | ||||||||||
The Restoration Pension Plan had an accumulated benefit obligation of $28.2 million and $24.1 million at December 31, 2014 and 2013, respectively. | ||||||||||||||
The following table presents the components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) for both plans: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
In thousands | 2014 | 2013 | 2012 | |||||||||||
Net Periodic Benefit Cost (Pre-Tax) | ||||||||||||||
Service cost | $ | 100 | $ | 343 | $ | 467 | ||||||||
Interest cost | 7,698 | 7,237 | 7,841 | |||||||||||
Expected return on plan assets | (8,418 | ) | (7,383 | ) | (6,733 | ) | ||||||||
Amortization of prior service cost | — | — | 4 | |||||||||||
Recognized actuarial loss | 3,654 | 6,687 | 5,999 | |||||||||||
Net periodic benefit cost | $ | 3,034 | $ | 6,884 | $ | 7,578 | ||||||||
Amounts Recognized in Other Comprehensive Income (Loss) (Pre-Tax) | ||||||||||||||
Net (gain) loss | $ | 28,802 | $ | (36,920 | ) | $ | 9,548 | |||||||
Prior service cost | — | — | (4 | ) | ||||||||||
Total (benefit) cost recognized in other comprehensive loss | $ | 28,802 | $ | (36,920 | ) | $ | 9,544 | |||||||
Net (benefit) cost recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 31,836 | $ | (30,036 | ) | $ | 17,122 | |||||||
The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2015 is $6.3 million. | ||||||||||||||
The weighted-average assumptions used for measurement of the defined pension plans were as follows: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||||||||||
Discount rate | 4.94 | % | 4.15 | % | 5.02 | % | ||||||||
Expected return on plan assets | 7.00 | % | 7.25 | % | 7.25 | % | ||||||||
Rate of compensation increase | N/A | 3.00 | % | 3.00 | % | |||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Weighted-average assumptions used to determine benefit obligations | ||||||||||||||
Discount rate | 4.13 | % | 4.94 | % | ||||||||||
Rate of compensation increase | N/A | 3.00 | % | |||||||||||
The discount rate assumptions are based on current yields of investment-grade corporate long-term bonds. The expected long-term return on plan assets is based on the expected future average annual return for each major asset class within the plan’s portfolio (which is principally comprised of equity investments) over a long-term horizon. In determining the expected long-term rate of return on plan assets, we evaluated input from our investment consultants, actuaries, and investment management firms, including their review of asset class return expectations, as well as long-term historical asset class returns. Projected returns by such consultants and economists are based on broad equity and bond indices. Additionally, we considered our historical 15-year compounded returns, which have been in excess of the forward-looking return expectations. | ||||||||||||||
The funded pension plan assets as of December 31, 2014 and 2013, by asset category, are as follows: | ||||||||||||||
In thousands | 2014 | % | 2013 | % | ||||||||||
Equity securities | $ | 82,010 | 66 | % | $ | 85,606 | 71 | % | ||||||
Debt securities | 32,381 | 26 | % | 30,460 | 25 | % | ||||||||
Other | 9,981 | 8 | % | 4,538 | 4 | % | ||||||||
Total plan assets | $ | 124,372 | 100 | % | $ | 120,604 | 100 | % | ||||||
The current economic environment presents employee benefit plans with unprecedented circumstances and challenges, which, in some cases over the last several years, have resulted in large declines in the fair value of investments. The fair values presented have been prepared using values and information available as of December 31, 2014 and 2013. | ||||||||||||||
The following tables present the fair value measurements of the assets in our funded pension plan: | ||||||||||||||
In thousands | December 31, | Quoted | Significant | Significant | ||||||||||
2014 | Prices in | Other | Unobservable | |||||||||||
Active | Observable | Inputs | ||||||||||||
Markets for | Inputs | (Level 3) | ||||||||||||
Identical | (Level 2) | |||||||||||||
Assets | ||||||||||||||
(Level 1) | ||||||||||||||
Equity securities | $ | 82,010 | $ | 82,010 | $ | — | $ | — | ||||||
Debt securities | 32,381 | 32,381 | — | — | ||||||||||
Other | 9,981 | — | 9,982 | — | ||||||||||
Total | $ | 124,372 | $ | 114,391 | $ | 9,982 | $ | — | ||||||
In thousands | December 31, | Quoted | Significant | Significant | ||||||||||
2013 | Prices in | Other | Unobservable | |||||||||||
Active | Observable | Inputs | ||||||||||||
Markets for | Inputs | (Level 3) | ||||||||||||
Identical | (Level 2) | |||||||||||||
Assets | ||||||||||||||
(Level 1) | ||||||||||||||
Equity securities | $ | 85,606 | $ | 85,606 | $ | — | $ | — | ||||||
Debt securities | 30,460 | 30,460 | — | — | ||||||||||
Other | 4,538 | — | 4,538 | — | ||||||||||
Total | $ | 120,604 | $ | 116,066 | $ | 4,538 | $ | — | ||||||
The investment policy for the Qualified Pension Plan focuses on the preservation and enhancement of the corpus of the plan’s assets through prudent asset allocation, quarterly monitoring and evaluation of investment results, and periodic meetings with investment managers. | ||||||||||||||
The investment policy’s goals and objectives are to meet or exceed the representative indices over a full market cycle (3-5 years). The policy establishes the following investment mix, which is intended to subject the principal to an acceptable level of volatility while still meeting the desired return objectives: | ||||||||||||||
Target | Acceptable Range | Benchmark Index | ||||||||||||
Domestic Equities | 50.0 | % | 35% - 75% | S&P 500 | ||||||||||
Large Cap Growth | 22.5 | % | 15% - 30% | Russell 1000 Growth | ||||||||||
Large Cap Value | 22.5 | % | 15% - 30% | Russell 1000 Value | ||||||||||
Mid Cap Value | 5.0 | % | 5% - 15% | Russell Mid Cap Value | ||||||||||
Mid Cap Growth | 0.0 | % | 0% - 10% | Russell Mid Cap Growth | ||||||||||
Domestic Fixed Income | 35.0 | % | 15% - 50% | LB Aggregate | ||||||||||
International Equities | 15.0 | % | 10% - 25% | MSC1 EAFE | ||||||||||
The funded pension plan provides for investment in various investment types. Investments, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risk. Due to the level of risk associated with investments, it is reasonably possible that changes in the value of investments will occur in the near term and may impact the funded status of the plan. To address the issue of risk, the investment policy places high priority on the preservation of the value of capital (in real terms) over a market cycle. Investments are made in companies with a minimum five-year operating history and sufficient trading volume to facilitate, under most market conditions, prompt sale without severe market effect. Investments are diversified; reasonable concentration in any one issue, issuer, industry or geographic area is allowed if the potential reward is worth the risk. | ||||||||||||||
The following table presents the investments that represented 5% or more of the funded pension plan’s assets as of December 31, 2014 and 2013: | ||||||||||||||
In thousands | 2014 | % | 2013 | % | ||||||||||
LM Institutional Fund Advisors I, Inc. Western Asset Core Plus | $ | 15,734 | 14 | % | $ | 16,643 | 14 | % | ||||||
State Street Government STIF 15 | $ | 10,332 | 8 | % | ||||||||||
PIMCO Total Return Fund Institutional Class | $ | 13,715 | 11 | % | $ | 13,817 | 11 | % | ||||||
No value is shown for the State Street Government STIF 15 investment as it did not meet the 5% threshold at December 31, 2013. | ||||||||||||||
Investment managers are evaluated by the performance of the representative indices over a full market cycle for each class of assets. The Pension Plan Committee reviews, on a quarterly basis, the investment portfolio of each manager, which includes rates of return, performance comparisons with the most appropriate indices, and comparisons of each manager’s performance with a universe of other portfolio managers that employ the same investment style. | ||||||||||||||
The expected future pension benefit payments for the next ten years as of December 31, 2014 are as follows: | ||||||||||||||
In thousands | ||||||||||||||
2015 | $ | 9,161 | ||||||||||||
2016 | 9,348 | |||||||||||||
2017 | 9,588 | |||||||||||||
2018 | 9,775 | |||||||||||||
2019 | 9,941 | |||||||||||||
2020-2023 | 55,210 | |||||||||||||
$ | 103,023 | |||||||||||||
We also sponsor a 401(k) retirement plan in which we match a portion of employees’ voluntary before-tax contributions. Under this plan, both employee and matching contributions vest immediately. Total 401(k) expense recognized in 2014, 2013 and 2012 was $3.8 million, $3.9 million and $4.0 million, respectively. | ||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity | |
Stockholders' Equity | |
Note G — Stockholders’ Equity | |
We paid a quarterly dividend of 8.5 cents per share in each quarter of 2014. | |
During 2014, we repurchased 1.2 million shares of our common stock for $7.9 million under our stock repurchase programs that were publicly announced in August of 2014 and 2012. Under the program announced in August 2014 our Board of Directors has authorized us to spend up to $20.0 million to repurchase shares of our outstanding common stock. As of December 31, 2014, we had authorization to spend $16.1 million to repurchase additional shares under this program. | |
During 2014, we received 108,159 shares of our common stock, with an estimated market value of $0.8 million, in connection with vesting of unvested shares as shares are returned to treasury to pay for an awardee’s tax obligation. | |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
Note H — Stock-Based Compensation | |||||||||||||||||
Compensation expense for stock-based awards is based on the fair values of the awards on the date of grant and is recognized on a straight-line basis over the vesting period of the entire award in the “Labor” line of the Consolidated Statements of Comprehensive Income (Loss). For the years ended December 31, 2014, 2013 and 2012, we recorded total stock-based compensation expense of $4.1 million, $5.7 million and $3.4 million, respectively. | |||||||||||||||||
In May 2013 our stockholders approved the 2013 Omnibus Incentive Plan (2013 Plan), pursuant to which we may issue up to 5.0 million shares of stock-based awards to directors, employees and consultants. The 2013 Plan replaced the stockholder-approved 2005 Omnibus Incentive Plan (2005 Plan), pursuant to which we issued equity securities to directors, officers and key employees. No additional stock-based awards will be granted under the 2005 Omnibus Incentive Plan, but awards previously granted under the 2005 Plan will remain outstanding in accordance with their respective terms. The 2005 Plan in turn replaced the stockholder-approved 1991 Stock Option Plan (1991 Plan), pursuant to which we issued stock options to directors, officers and key employees. No additional equity awards have been granted under the 1991 Plan since the effectiveness of the 2005 Plan. As of December 31, 2014, there were 3.2 million shares available for grant under the 2013 Plan. | |||||||||||||||||
In July 2013 we granted equity awards to our President and Chief Executive Officer as a material inducement to his acceptance of such positions. These option, restricted stock and performance unit awards (2013 CEO Plan) were not submitted for stockholder approval, and were separately registered with the SEC and listed with the NYSE. | |||||||||||||||||
Stock Options | |||||||||||||||||
Under the 2013 CEO Plan, the option award was granted at an exercise price equal to the market value of the common stock on the grant date. The options granted become exercisable in 25% increments on the first through fourth anniversaries of their date of grant, and expire on the tenth anniversary of their date of grant. As of December 31, 2014, options to purchase 0.4 million shares were outstanding under the 2013 CEO Plan at an exercise price of $9.29 per share. | |||||||||||||||||
Under the 2013 Plan, all options have been and will be granted at exercise prices equal to the market value of the common stock on the grant date. All such options are exercisable in 25% increments on the first through fourth anniversaries of their date of grant, and expire on the tenth anniversary of their date of grant. As of December 31, 2014, 2013 Plan options to purchase 1.0 million shares were outstanding with exercise prices ranging from $6.39 to $8.85 per share. | |||||||||||||||||
All options under the 2005 Plan were granted at an exercise prices equal to the market value of the common stock on the grant date. All 2005 Plan options granted prior to 2011 become exercisable in 25% increments on the second through fifth anniversaries of their date of grant and expire on the tenth anniversary of their date of grant. All options granted in 2011, 2012 and 2013 become exercisable in 25% increments on the first through fourth anniversaries of their date of grant, and expire on the tenth anniversary of their date of grant. As of December 31, 2014, 2005 Plan options to purchase 2.8 million shares were outstanding with exercise prices ranging from $6.04 to $28.85 per share. | |||||||||||||||||
Under the 1991 Plan, options were granted at exercise prices equal to the market value of the common stock on the grant date (1991 Plan market price options) and at exercise prices below the market value of the common stock (1991 Plan performance options). 1991 Plan market price options became exercisable in 25% increments on the second through fifth anniversaries of their date of grant and expire on the tenth anniversary of their date of grant. As of December 31, 2014, 1991 Plan market price options to purchase 0.3 million shares were outstanding at an exercise price of $25.63 per share. All remaining 1991 Plan performance options were exercised on or before January 2009. | |||||||||||||||||
All options granted under each of the four plans vest in full upon a change of control (as defined in each plan). | |||||||||||||||||
The following summarizes all stock option activity during the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||
In thousands | Number of | Weighted- | Weighted- | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Option | Remaining | Value | |||||||||||||||
Price | Contractual | (Thousands) | |||||||||||||||
Term | |||||||||||||||||
(Years) | |||||||||||||||||
Options outstanding at December 31, 2011 | 6,753,628 | $ | 15.75 | ||||||||||||||
Granted in 2012 | 970,500 | 8.98 | |||||||||||||||
Exercised in 2012 | (106,375 | ) | 6.04 | $ | 297 | ||||||||||||
Unvested options forfeited in 2012 | (798,311 | ) | 10.28 | ||||||||||||||
Vested options expired in 2012 | (1,712,813 | ) | 19.33 | ||||||||||||||
Options outstanding at December 31, 2012 | 5,106,629 | $ | 14.32 | ||||||||||||||
Granted in 2013 | 1,138,600 | 8.3 | |||||||||||||||
Exercised in 2013 | (151,875 | ) | 6.04 | $ | 268 | ||||||||||||
Unvested options forfeited in 2013 | (762,062 | ) | 11.97 | ||||||||||||||
Vested options expired in 2013 | (1,085,580 | ) | 13.47 | ||||||||||||||
Options outstanding at December 31, 2013 | 4,245,712 | $ | 13.65 | ||||||||||||||
Granted in 2014 | 1,002,955 | 8.01 | |||||||||||||||
Exercised in 2014 | (78,125 | ) | 6.19 | $ | 61 | ||||||||||||
Unvested options forfeited in 2014 | (437,984 | ) | 8.72 | ||||||||||||||
Vested options expired in 2014 | (268,537 | ) | 17.83 | ||||||||||||||
Options outstanding at December 31, 2014 | 4,464,021 | $ | 11.5 | 5.34 | $ | 1,158 | |||||||||||
Exercisable at December 31, 2014 | 2,137,350 | $ | 15.1 | 3.89 | $ | 496 | |||||||||||
The aggregate intrinsic value at year end in the table above represents the total pre-tax intrinsic value that would have been received by the option holders if all of the in-the-money options were exercised on December 31, 2014. The pre-tax intrinsic value is the difference between the closing price of our common stock on December 31, 2014 and the exercise price for each in-the-money option. This value fluctuates with the changes in the price of our common stock. | |||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2014: | |||||||||||||||||
Range of | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | ||||||||||||
Prices | Exercise | Remaining | Exercise | ||||||||||||||
Price | Life (Years) | Price | |||||||||||||||
$ | 0.00 - 6.99 | 656,710 | $ | 6.13 | 2.90 | 266,500 | $ | 6.04 | |||||||||
$ | 7.00 - 10.99 | 2,269,986 | $ | 8.40 | 7.68 | 468,650 | $ | 8.70 | |||||||||
$ | 11.00 - 11.99 | 469,875 | $ | 11.90 | 4.87 | 377,125 | $ | 11.90 | |||||||||
$ | 12.00 - 15.99 | 390,375 | $ | 14.24 | 4.21 | 348,000 | $ | 14.45 | |||||||||
$ | 16.00 - 24.49 | 53,000 | $ | 17.66 | 2.98 | 53,000 | $ | 17.66 | |||||||||
$ | 24.50 - 28.85 | 624,075 | $ | 25.86 | 0.68 | 624,075 | $ | 25.86 | |||||||||
4,464,021 | $ | 11.50 | 5.34 | 2,137,350 | $ | 15.10 | |||||||||||
The fair value of each option grant is estimated on the date of grant using the Black-Scholes Option-Pricing Model based on the following weighted-average assumptions used for grants during 2014, 2013 and 2012: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected term (in years) | 6.25 | 6.25 | 6.25 | ||||||||||||||
Expected stock price volatility | 47.10 | % | 46.59 | % | 44.24 | % | |||||||||||
Risk-free interest rate | 1.88 | % | 1.43 | % | 1.05 | % | |||||||||||
Expected dividend yield | 3.82 | % | 4.74 | % | 3.41 | % | |||||||||||
Expected term is estimated using the simplified method, which takes into account vesting and contractual term. The simplified method is being used to calculate expected term instead of historical experience due to a lack of relevant historical data resulting from changes in option vesting schedules and changes in the pool of employees receiving option grants. Expected stock price volatility is based on the historical volatility from traded shares of our stock over the expected term. The risk-free interest rate is based on the rate of a zero-coupon U.S. Treasury instrument with a remaining term approximately equal to the expected term. Expected dividend yield is based on historical stock price movement and anticipated future annual dividends over the expected term. Future annual dividends over the expected term are estimated to be $0.34 per share. | |||||||||||||||||
The weighted-average fair value of options granted during 2014, 2013 and 2012 was $2.59, $2.35 and $2.74, respectively. As of December 31, 2014, there was $3.8 million of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted average period of approximately 2.66 years. | |||||||||||||||||
Unvested Shares | |||||||||||||||||
Under the 2013 CEO Plan, unvested shares vest in three equal increments on the first three anniversaries of their date of grant, or if sooner, upon a change of control. | |||||||||||||||||
Under the 2013 Plan, unvested shares vest in three equal increments on the first three anniversaries of their date of grant, or if sooner, upon a change of control. | |||||||||||||||||
Under the 2005 Plan, unvested shares granted in 2011, 2012 and 2013 vest in three equal increments on the first three anniversaries of their date of grant, or if sooner, upon a change of control. | |||||||||||||||||
The following summarizes all unvested share activity during 2014, 2013 and 2012: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested shares outstanding at December 31, 2011 | 419,340 | $ | 11.42 | ||||||||||||||
Granted in 2012 | 332,113 | 9.91 | |||||||||||||||
Vested in 2012 | (143,626 | ) | 9.82 | ||||||||||||||
Forfeited in 2012 | (107,374 | ) | 11.09 | ||||||||||||||
Unvested shares outstanding at December 31, 2012 | 500,453 | $ | 10.95 | ||||||||||||||
Granted in 2013 | 591,931 | 8.02 | |||||||||||||||
Vested in 2013 | (297,375 | ) | 11.01 | ||||||||||||||
Forfeited in 2013 | (108,964 | ) | 8.94 | ||||||||||||||
Unvested shares outstanding at December 31, 2013 | 686,045 | $ | 8.72 | ||||||||||||||
Granted in 2014 | 529,426 | 7.9 | |||||||||||||||
Vested in 2014 | (342,613 | ) | 8.98 | ||||||||||||||
Forfeited in 2014 | (82,720 | ) | 8.37 | ||||||||||||||
Unvested shares outstanding at December 31, 2014 | 790,138 | $ | 8.1 | ||||||||||||||
The fair value of each unvested share is estimated on the date of grant as the closing market price of our common stock on the date of grant. As of December 31, 2014, there was $4.6 million of total unrecognized compensation cost related to unvested shares. This cost is expected to be recognized over a weighted average period of approximately 1.95 years. | |||||||||||||||||
Performance Stock Units | |||||||||||||||||
Under the 2013 Plan, 2005 Plan and 2013 CEO Plan performance stock units are a form of share-based award similar to unvested shares, except that the number of shares ultimately issued is based on our performance against specific performance goals over a defined (usually three-year) period. At the end of the performance period, the number of shares of stock issued will be determined by adjusting upward or downward from the maximum in a range between 0% and 100%. Upon a change of control, outstanding performance stock units will be paid out at the 100% level. | |||||||||||||||||
The following summarizes all performance stock unit activity during 2014, 2013 and 2012: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average Grant-Date Fair Value | ||||||||||||||||
Performance stock units outstanding at December 31, 2011 | 169,600 | $ | 11.34 | ||||||||||||||
Granted in 2012 | 136,000 | 8.84 | |||||||||||||||
Settled in 2012 | — | 0 | |||||||||||||||
Forfeited in 2012 | (65,900 | ) | 10.15 | ||||||||||||||
Performance stock units outstanding at December 31, 2012 | 239,700 | $ | 10.25 | ||||||||||||||
Granted in 2013 | 333,000 | 7.76 | |||||||||||||||
Settled in 2013 | — | 0 | |||||||||||||||
Forfeited in 2013 | (102,000 | ) | 9.84 | ||||||||||||||
Performance stock units outstanding at December 31, 2013 | 470,700 | $ | 8.58 | ||||||||||||||
Granted in 2014 | 308,507 | 7.09 | |||||||||||||||
Settled in 2014 | — | 0 | |||||||||||||||
Forfeited in 2014 | (175,533 | ) | 9.3 | ||||||||||||||
Performance stock units outstanding at December 31, 2014 | 603,674 | $ | 7.61 | ||||||||||||||
The fair value of each performance stock unit is estimated on the date of grant as the closing market price of our common stock on the date of grant, minus the present value of anticipated dividend payments. Periodic compensation expense is based on the current estimate of future performance against specific performance goals over a three-year period and is adjusted up or down based on those estimates. As of December 31, 2014, there was $0.8 million of total unrecognized compensation cost related to performance stock units. This cost is expected to be recognized over a weighted average period of approximately 2.15 years. | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies | |
Commitments and Contingencies | |
Note I — Commitments and Contingencies | |
At December 31, 2014, we had letters of credit in the amount of $6.2 million issued under the 2013 Revolving Credit Facility. No amounts were drawn against these letters of credit at December 31, 2014. These letters of credit exist to support insurance programs relating to workers’ compensation, automobile and general liability. | |
In the normal course of our business, we are obligated under some agreements to indemnify our clients as a result of claims that we infringe on the proprietary rights of third parties. The terms and duration of these commitments vary and, in some cases, may be indefinite, and certain of these commitments do not limit the maximum amount of future payments we could become obligated to make there under; accordingly, our actual aggregate maximum exposure related to these types of commitments cannot be reasonably estimated. Historically, we have not been obligated to make significant payments for obligations of this nature, and no liabilities have been recorded for these obligations in our financial statements. | |
We are also currently subject to various other legal proceedings in the course of conducting our businesses and, from time to time, we may become involved in additional claims and lawsuits incidental to our businesses. In the opinion of management, after consultation with counsel, none of these matters is currently considered to be reasonably possible of resulting in a material adverse effect on our consolidated financial position or results of operations. Nevertheless, we cannot predict the impact of future developments affecting our pending or future claims and lawsuits and any resolution of a claim or lawsuit within a particular fiscal quarter may adversely impact our results of operations for that quarter. We expense legal costs as incurred, and all recorded legal liabilities are adjusted as required as better information becomes available to us. The factors we consider when recording an accrual for contingencies include, among others: (i) the opinions and views of our legal counsel; (ii) our previous experience; and (iii) the decision of our management as to how we intend to respond to the complaints. | |
Leases
Leases | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases | ||||||||
Leases | ||||||||
Note J — Leases | ||||||||
We lease real estate and certain equipment under numerous lease agreements, most of which contain some renewal options. The total rent expense applicable to operating leases was $15.4 million, $14.5 million and $14.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Step rent provisions and escalation clauses, normal tenant improvements, rent holidays and other lease concessions are taken into account in computing minimum lease payments. We recognize the minimum lease payments on a straight-line basis over the minimum lease term. | ||||||||
The future minimum rental commitments for all non-cancelable operating leases with terms in excess of one year as of December 31, 2014 are as follows: | ||||||||
Operating Leases | ||||||||
In thousands | ||||||||
2015 | $ | 10,012 | ||||||
2016 | 6,380 | |||||||
2017 | 5,163 | |||||||
2018 | 3,340 | |||||||
2019 | 1,697 | |||||||
Thereafter | 1,466 | |||||||
$ | 28,058 | |||||||
We also lease certain equipment and software under capital leases. Our capital lease obligations at year-end were as follows: | ||||||||
In thousands | 2014 | 2013 | ||||||
Current portion of capital leases | $ | 134 | $ | 257 | ||||
Long-term portion of capital leases | 185 | 204 | ||||||
Total capital lease obligation | $ | 319 | $ | 461 | ||||
The future minimum lease payments for all capital leases operating as of December 31, 2014 are as follows: | ||||||||
Capital Leases | ||||||||
In thousands | ||||||||
2015 | $ | 134 | ||||||
2016 | 98 | |||||||
2017 | 59 | |||||||
2018 | 23 | |||||||
2019 | 5 | |||||||
Thereafter | — | |||||||
$ | 319 | |||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share | |||||||||||
Earnings Per Share | |||||||||||
Note K — Earnings Per Share | |||||||||||
Basic earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed on the basis of the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and unvested shares. | |||||||||||
Reconciliations of basic and diluted earnings per share (EPS) are as follows: | |||||||||||
In thousands, exept per share amounts | 2014 | 2013 | 2012 | ||||||||
Net Income | |||||||||||
Income from continuing operations | $ | 23,991 | $ | 24,441 | $ | 35,396 | |||||
Income (loss) from discontinued operations | — | (11,071 | ) | (118,749 | ) | ||||||
Net income (loss) | $ | 23,991 | $ | 13,370 | $ | (83,353 | ) | ||||
Basic EPS | |||||||||||
Weighted-average common shares outstanding used in earnings per share computations | 62,444 | 62,503 | 62,887 | ||||||||
Basic earnings (loss) per share | |||||||||||
Continuing operations | $ | 0.38 | $ | 0.39 | $ | 0.56 | |||||
Discontinued operations | — | (0.18 | ) | (1.89 | ) | ||||||
Net income | $ | 0.38 | $ | 0.21 | $ | (1.33 | ) | ||||
Diluted EPS | |||||||||||
Shares used in diluted earnings per share computations | 62,658 | 62,812 | 63,148 | ||||||||
Basic earnings (loss) per share | |||||||||||
Continuing operations | $ | 0.38 | $ | 0.39 | $ | 0.56 | |||||
Discontinued operations | — | (0.18 | ) | (1.88 | ) | ||||||
Net income | $ | 0.38 | $ | 0.21 | $ | (1.32 | ) | ||||
Computation of Shares Used in Earnings Per Share Computations | |||||||||||
Weighted-average common shares outstanding | 62,444 | 62,503 | 62,887 | ||||||||
Weighted-average common equivalent shares- dilutive effect of stock options and awards | 214 | 309 | 261 | ||||||||
Shares used in diluted earnings per share computations | 62,658 | 62,812 | 63,148 | ||||||||
For the purpose of calculating the shares used in the diluted EPS calculations, 4.1 million, 4.2 million and 4.9 million anti-dilutive options have been excluded from the EPS calculations for the years ended December 31, 2014, 2013 and 2012, respectively. There were 0.0 million and 0.1 million for the years ended December 31, 2014 and 2012, respectively, and no anti-dilutive unvested shares for the year ended December 31, 2013. | |||||||||||
Comprehensive_Income_Loss
Comprehensive Income (Loss) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Note L — Comprehensive Income (Loss) | |||||||||||
Comprehensive income (loss) for a period encompasses net income (loss) and all other changes in equity other than from transactions with our stockholders. Our comprehensive income (loss) was as follows: | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Net income (loss) | $ | 23,991 | $ | 13,370 | $ | (83,353 | ) | ||||
Other comprehensive income (loss): | |||||||||||
Adjustment to pension liability | (28,802 | ) | 36,920 | (9,544 | ) | ||||||
Tax (expense) benefit | 11,521 | (14,768 | ) | 3,818 | |||||||
Adjustment to pension liability, net of tax | (17,281 | ) | 22,152 | (5,726 | ) | ||||||
Foreign currency translation adjustment | (1,830 | ) | (536 | ) | 1,315 | ||||||
Total other comprehensive income (loss) | $ | (19,111 | ) | $ | 21,616 | $ | (4,411 | ) | |||
Total comprehensive income (loss) | $ | 4,880 | $ | 34,986 | $ | (87,764 | ) | ||||
Changes in accumulated other comprehensive income (loss) by component are as follows: | |||||||||||
In thousands | Defined Benefit | Foreign | Total | ||||||||
Pension Items | Currency Items | ||||||||||
Balance at December 31, 2013 | $ | (32,279 | ) | $ | 4,161 | $ | (28,118 | ) | |||
Other comprehensive income (loss), net of tax, before reclassifications | — | (1,830 | ) | (1,830 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (17,281 | ) | — | (17,281 | ) | ||||||
Net current period other comprehensive income (loss), net of tax | (17,281 | ) | (1,830 | ) | (19,111 | ) | |||||
Balance at December 31, 2014 | $ | (49,560 | ) | $ | 2,331 | $ | (47,229 | ) | |||
In thousands | Defined Benefit | Foreign | Total | ||||||||
Pension Items | Currency Items | ||||||||||
Balance at December 31, 2012 | $ | (54,431 | ) | $ | 4,697 | $ | (49,734 | ) | |||
Other comprehensive income (loss), net of tax, before reclassifications | — | (536 | ) | (536 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 22,152 | — | 22,152 | ||||||||
Net current period other comprehensive income (loss), net of tax | 22,152 | (536 | ) | 21,616 | |||||||
Balance at December 31, 2013 | $ | (32,279 | ) | $ | 4,161 | $ | (28,118 | ) | |||
Reclassification amounts related to the defined pension plans are included in the computation of net period pension benefit cost (see Note F, Employee Benefit Plans). | |||||||||||
Selected_Quarterly_Data_Unaudi
Selected Quarterly Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Selected Quarterly Data (Unaudited) | ||||||||||||||||||||||||||
Selected Quarterly Data (Unaudited) | ||||||||||||||||||||||||||
Note M — Selected Quarterly Data (Unaudited) | ||||||||||||||||||||||||||
In thousands, | 2014 Quarter Ended | 2013 Quarter Ended | ||||||||||||||||||||||||
except per share amounts | December 31 | September 30 | June 30 | March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||||
Revenues | $ | 146,518 | $ | 134,121 | $ | 140,310 | $ | 132,727 | $ | 152,179 | $ | 134,973 | $ | 140,105 | $ | 132,352 | ||||||||||
Operating income (loss) | 14,656 | 10,540 | 10,987 | 4,579 | 12,484 | 8,360 | 12,413 | 9,404 | ||||||||||||||||||
Income (loss) from continuing operations | 10,089 | 6,420 | 5,637 | 1,845 | 6,734 | 4,451 | 6,936 | 6,320 | ||||||||||||||||||
Income (loss) from discontinued operations | — | — | — | — | (168 | ) | (12,624 | ) | 1,373 | 348 | ||||||||||||||||
Net income (loss) | 10,089 | 6,420 | 5,637 | 1,845 | 6,566 | (8,173 | ) | 8,309 | 6,668 | |||||||||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.1 | $ | 0.09 | $ | 0.03 | $ | 0.11 | $ | 0.07 | $ | 0.11 | $ | 0.1 | ||||||||||
Discontinued operations | 0 | 0 | 0 | 0 | (0.01 | ) | (0.20 | ) | 0.02 | 0.01 | ||||||||||||||||
Net income (loss) | $ | 0.16 | $ | 0.1 | $ | 0.09 | $ | 0.03 | $ | 0.1 | $ | (0.13 | ) | $ | 0.13 | $ | 0.11 | |||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.1 | $ | 0.09 | $ | 0.03 | $ | 0.11 | $ | 0.07 | $ | 0.11 | $ | 0.1 | ||||||||||
Discontinued operations | 0 | 0 | 0 | 0 | (0.01 | ) | (0.20 | ) | 0.02 | 0.01 | ||||||||||||||||
Net income (loss) | $ | 0.16 | $ | 0.1 | $ | 0.09 | $ | 0.03 | $ | 0.1 | $ | (0.13 | ) | $ | 0.13 | $ | 0.11 | |||||||||
Earnings per common share amounts are computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share amounts may not equal the quarterly net income earnings per share amounts or the annual earnings per share amounts. | ||||||||||||||||||||||||||
Business_Segments
Business Segments | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Business Segments | |||||||||||
Business Segments | |||||||||||
Note N — Business Segments | |||||||||||
During the second quarter of 2014, Harte Hanks began executing a new strategy causing us to leverage our operational structure by organizing into two distinct operating divisions: Customer Interaction and Trillium Software. In accordance with ASC 280, Segment Reporting, we determined that under this new organizational structure, we will report the two operating divisions as two reportable segments — Customer Interaction and Trillium Software. Our reportable segments are described below. | |||||||||||
Customer Interaction | |||||||||||
Our Customer Interaction services offer a wide variety of integrated, multi-channel, data-driven marketing service solutions for our customers. We derive revenues by offering a full complement of capabilities and resources to provide these services in media from direct mail to email, including: | |||||||||||
agency and digital services; | |||||||||||
database marketing solutions and business-to-business lead generation; | |||||||||||
direct mail; and | |||||||||||
contact centers. | |||||||||||
Customer Interaction’s largest cost components are labor, outsourced costs and mail supply chain costs. 2013 results reflect an impairment loss of $2.8 million related to other intangible assets associated with our Aberdeen Group business recorded in the third quarter of 2013. | |||||||||||
Trillium Software | |||||||||||
Trillium Software is a leading enterprise data quality solutions provider. Our full complement of technologies and services includes global data profiling, data cleansing, enrichment, and data linking for e-business, customer relationship management, data governance, enterprise resource planning, supply chain management, data warehouse, and other enterprise applications. Revenues from the Trillium Software segment are comprised primarily of software, maintenance and professional services. | |||||||||||
Trillium Software’s largest cost component is software development, which is comprised primarily of labor. | |||||||||||
Corporate | |||||||||||
General corporate expense consists primarily of pension and workers compensation expense related to employees from operations we no longer own. | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Operating revenues | |||||||||||
Customer Interaction | $ | 499,444 | $ | 503,760 | $ | 528,042 | |||||
Trillium Software | 54,232 | 55,849 | 53,049 | ||||||||
Total operating revenues | $ | 553,676 | $ | 559,609 | $ | 581,091 | |||||
Operating income | |||||||||||
Customer Interaction | $ | 29,780 | $ | 32,021 | $ | 53,221 | |||||
Trillium Software | 13,347 | 15,396 | 14,658 | ||||||||
Corporate | (2,365 | ) | (4,756 | ) | (5,210 | ) | |||||
Total operating income | $ | 40,762 | $ | 42,661 | $ | 62,669 | |||||
Income from continuing operations before income taxes | $ | 40,762 | $ | 42,661 | $ | 62,669 | |||||
Interest expense | 2,834 | 3,103 | 3,573 | ||||||||
Interest income | (275 | ) | (105 | ) | (89 | ) | |||||
Other, net | 897 | 46 | 2,993 | ||||||||
Total income from continuing operations before income taxes | $ | 37,306 | $ | 39,617 | $ | 56,192 | |||||
Depreciation | |||||||||||
Customer Interaction | $ | 12,859 | $ | 13,477 | $ | 13,853 | |||||
Trillium Software | 2,035 | 2,053 | 1,823 | ||||||||
Corporate | — | — | — | ||||||||
Total depreciation | $ | 14,894 | $ | 15,530 | $ | 15,676 | |||||
Other intangible amortization | |||||||||||
Customer Interaction | $ | 26 | $ | 206 | $ | 246 | |||||
Trillium Software | — | — | — | ||||||||
Corporate | — | — | — | ||||||||
Total intangible amortization | $ | 26 | $ | 206 | $ | 246 | |||||
Capital expenditures | |||||||||||
Customer Interaction | $ | 9,341 | $ | 14,092 | $ | 11,108 | |||||
Trillium Software | 1,912 | 1,781 | 2,353 | ||||||||
Corporate | 12 | — | — | ||||||||
Total capital expenditures | $ | 11,265 | $ | 15,873 | $ | 13,461 | |||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Total assets | |||||||||||
Customer Interaction | $ | 533,073 | $ | 575,159 | $ | 570,784 | |||||
Trillium Software | 114,126 | 110,377 | 87,890 | ||||||||
Corporate | — | — | 47,538 | ||||||||
Total assets | $ | 647,199 | $ | 685,536 | $ | 706,212 | |||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Discontinued Operations | |||||||||||
Discontinued Operations | |||||||||||
Note O — Discontinued Operations | |||||||||||
We sold the assets of our Florida Shoppers operations to Coda Media Corp. on December 31, 2012 for gross proceeds of approximately $2.0 million in the form of a secured promissory note, subject to working capital adjustments. This transaction resulted in a loss on the sale of $2.7 million, net of $2.1 million of income tax benefit. The promissory note, which is secured by the assets which were sold, includes an interest rate of 2.5% per annum and is structured to make quarterly payments of interest until maturity. In 2013, the maturity date was extended from December 31, 2013 to June 30, 2014. In 2014 the maturity date was extended from June 30, 2014 to December 31, 2014 and then subsequently extended from December 31, 2014 to December 31, 2018. Due to a number of factors that put the collectability of the note in doubt, we have fully reserved the amount of this note receivable. These factors include the lack of cash paid at the date of the sale, the structure and length of the note, and historical and projected cash flows from the sold operations. This reserve was included in the calculation of the loss on the sale. | |||||||||||
We sold the assets of our California Shoppers operations to affiliates of OpenGate Capital Management, LLC (“OpenGate”) on September 27, 2013 for gross proceeds of approximately $22.5 million in cash. In addition, OpenGate agreed to assume certain liabilities associated with the Shoppers division. This transaction resulted in a loss on the sale of $12.4 million, net of $9.0 million of income tax benefit. This loss on sale includes transaction costs of approximately $2.6 million. | |||||||||||
Because the Shoppers operations represented distinct business units with operations and cash flows that can clearly be distinguished, both operationally and for financial purposes, from the rest of Harte Hanks, the results of the Shoppers operations are reported as discontinued operations for all periods presented. | |||||||||||
Results of the remaining Harte Hanks marketing services business are reported as continuing operations. | |||||||||||
Summarized operating results for the Shoppers discontinued operations, through the dates of disposal, are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Revenues | $ | — | $ | 140,834 | $ | 222,736 | |||||
Income (loss) from discontinued operations before impairment charges and income taxes | — | 2,509 | 344 | ||||||||
Impairment of goodwill and other intangible assets before income taxes | — | — | (165,336 | ) | |||||||
Loss on sale before income taxes | — | (21,402 | ) | (4,863 | ) | ||||||
Income tax benefit (expense) | — | 7,822 | 51,106 | ||||||||
Income (loss) from discontinued operations | $ | — | $ | (11,071 | ) | $ | (118,749 | ) | |||
The major components of cash flows for the Shoppers discontinued operations are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Gain (Loss) from discontinued operations | $ | — | $ | (11,071 | ) | $ | (118,749 | ) | |||
Impairment of goodwill and other intangible assets | — | — | 165,336 | ||||||||
Loss on sale | — | 12,355 | 2,716 | ||||||||
Deferred Income Taxes | — | 10,594 | (39,234 | ) | |||||||
Depreciation and software amortization | — | 2,592 | 5,062 | ||||||||
Other, net | — | 2,619 | 4,725 | ||||||||
Net cash provided by (used in) discontinued operations | $ | — | $ | 17,089 | $ | 19,856 | |||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Significant Accounting Policies | |||||||||||
Consolidation | |||||||||||
Consolidation | |||||||||||
The accompanying consolidated financial statements present the financial position and the results of operations and cash flows of Harte Hanks, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||
As used in this report, the terms “Harte Hanks,” “we,” “us,” or “our” may refer to Harte Hanks, Inc., one or more of our consolidated subsidiaries, or all of them taken as a whole. | |||||||||||
Discontinued Operations | |||||||||||
Discontinued Operations | |||||||||||
As discussed in Note O, Discontinued Operations, we sold the assets of our Florida Shoppers operations on December 31, 2012 and the assets of our California Shoppers operations on September 27, 2013. The operating results and related balances of Shoppers, including the losses on the sales, are being reported as discontinued operations in the Consolidated Financial Statements. Unless otherwise stated, amounts related to the Shoppers operations are excluded from the Notes to Consolidated Financial Statements for all years presented. | |||||||||||
Reclassification of Prior Year Amounts | |||||||||||
Reclassification of Prior Year Amounts | |||||||||||
All prior year amounts related to discontinued operations have been reclassified for comparative purposes. | |||||||||||
During the second quarter of 2014, the Company initiated a new strategy and revised the operational structure to suit that new strategy by organizing into two distinct operating divisions: Customer Interaction and Trillium Software. We determined that these two divisions were reportable segments and accordingly we have revised our segment reporting to reflect our current management approach and recast prior periods presented herein to conform to the current reportable segments presentation. | |||||||||||
Use of Estimates | |||||||||||
Use of Estimates | |||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results and outcomes could differ from those estimates and assumptions. Such estimates include, but are not limited to, estimates related to pension accounting; estimates related to fair value for purposes of assessing goodwill, long-lived assets and intangible assets for impairment; estimates related to income taxes; and estimated related to contingencies. On an ongoing basis, management reviews its estimates based on currently available information. Changes in facts and circumstances could result in revised estimates and assumptions. | |||||||||||
Operating Expense Presentation in Consolidated Statements of Comprehensive Income (Loss) | |||||||||||
Operating Expense Presentation in Consolidated Statements of Comprehensive Income (Loss) | |||||||||||
The “Labor” line in the Consolidated Statements of Comprehensive Income (Loss) includes all employee payroll and benefits, including stock-based compensation, along with temporary labor costs. The “Production and distribution” and “Advertising, selling, general and administrative” lines do not include labor, depreciation or amortization. | |||||||||||
Revenue Recognition | |||||||||||
Revenue Recognition | |||||||||||
We recognize revenue when all of the following criteria are satisfied: (i) persuasive evidence of an arrangement exists; (ii) the price is fixed or determinable; (iii) collectability is reasonably assured; and (iv) the service has been performed or the product has been delivered. | |||||||||||
Payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. | |||||||||||
Our accounting policy for revenue recognition has an impact on our reported results and relies on certain estimates that require judgments on the part of management. The portion of our revenue that is most subject to estimates and judgments is revenue recognized using the proportional performance method, as discussed below. | |||||||||||
Revenue is derived from a variety of services and products, and may be billed at hourly rates, monthly rates or a fixed price. For all sales, we require either a purchase order, a statement of work signed by the client, a written contract, or some other form of written authorization from the client. | |||||||||||
Revenue from agency and creative services, analytical services and market research is typically billed based on time and materials or at a fixed price. If billed at a fixed price, revenue is recognized on a proportional performance basis as the services specified in the arrangement are performed. In most cases, proportional performance is based on the ratio of direct costs incurred to total estimated costs where the costs incurred, primarily labor hours and outsourced services, represent a reasonable surrogate for output measures or contract performance. For fixed fee market research revenue streams, revenue is recognized in proportion to the value of service provided based on output criteria. | |||||||||||
Revenue from email marketing, social media marketing and other digital solutions is recognized as the work is performed. Revenue from these services is typically based on a fixed price or rate given to the client. | |||||||||||
Revenue associated with new marketing database builds is deferred until complete or until client acceptance. Upon completion or acceptance, revenue and direct build costs are then recognized over the term of the related arrangement as the services are provided. Revenue from database and website hosting services is recognized ratably over the contractual hosting period. Pricing for database builds are typically based on a fixed price and hosting fees are typically based on a fixed price per month or per contract. | |||||||||||
Revenue from technology database subscriptions is based on a fixed price and is recognized ratably over the term of the subscription. Revenue from stand-alone technology data sales is recognized at the time of delivery. | |||||||||||
Revenue from services such as data processing, printing, personalization of communication pieces using laser and inkjet printing, targeted mail, and transportation logistics is recognized as the work is performed. Revenue from these services is typically based on a fixed price or rate given to the client. Postage costs of mailings in our direct mail business are borne by our clients and are not directly reflected in our revenues or expenses. | |||||||||||
Revenue related to fulfillment and contact centers, including inbound and outbound calling and email management, is also typically based on a fixed price per transaction or service provided. Revenue from these services is recognized as the service or activity is performed. | |||||||||||
Revenue from software arrangements involving multiple elements is allocated to each element based on the vendor-specific objective evidence of fair values of the respective elements. For software sales with multiple elements (for example, software licenses with undelivered post-contract customer support or “PCS”), we allocate revenue to each component of the arrangement using the residual value method based on the fair value of the undelivered elements. This means we defer revenue from the software sale equal to the fair value of the undelivered elements. The fair value of PCS is based upon separate sales of renewals to other clients. The fair value of services, such as training and consulting, is based upon separate sales of these services to other clients. | |||||||||||
The revenue allocated to PCS is recognized ratably over the term of the support period. Revenue allocated to professional services is recognized as the services are performed. The revenue allocated to software products, including time-based software licenses, is recognized, if collection is probable, upon execution of a licensing agreement and shipment of the software or ratably over the term of the license, depending on the structure and terms of the arrangement. If the licensing agreement is for a term of a year or less and includes PCS, we recognize the software and the PCS revenue ratably over the term of the license. | |||||||||||
For certain non-software arrangements, we enter into contracts that include delivery of a combination of our service offerings. Such arrangements are divided into separate units of accounting, provided that the delivered element(s) has stand-alone value and objective and reliable evidence of the fair value of the undelivered element(s) exist(s). | |||||||||||
When we are able to unbundle the arrangement into separate units of accounting, revenue from each service is recognized separately, and in accordance with our revenue recognition policy for each element. If we are unable to unbundle the arrangement into separate units of accounting, we apply one of the revenue recognition policies to the entire arrangement. This might impact the timing of revenue recognition, but would not change the total revenue recognized from the arrangement. | |||||||||||
Taxes collected from customers and remitted to governmental authorities are not reflected in our revenues or expenses. | |||||||||||
Cash Equivalents | |||||||||||
Cash Equivalents | |||||||||||
All highly liquid investments with an original maturity of 90 days or less at the time of purchase are considered to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. | |||||||||||
Allowance for Doubtful Accounts | |||||||||||
Allowance for Doubtful Accounts | |||||||||||
We maintain our allowance for doubtful accounts at a balance adequate to reduce accounts receivable to the amount of cash expected to be realized upon collection. The methodology used to determine the minimum allowance balance is based on our prior collection experience and is generally related to the accounts receivable balance in various aging categories. The balance is also influenced by specific clients’ financial strength and circumstance. Accounts that are determined to be uncollectible are written off in the period in which they are determined to be uncollectible. Periodic changes to the allowance balance are recorded as increases or decreases to bad debt expense, which is included in the “Advertising, selling, general and administrative” line of our Consolidated Statements of Comprehensive Income (Loss). The changes in the allowance for doubtful accounts consisted of the following: | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Balance at beginning of year | $ | 1,729 | $ | 2,574 | $ | 2,445 | |||||
Net charges to expense | (68 | ) | 47 | 722 | |||||||
Amounts recovered against the allowance, net of charges | (437 | ) | (892 | ) | (593 | ) | |||||
Balance at end of year | $ | 1,224 | $ | 1,729 | $ | 2,574 | |||||
Inventory | |||||||||||
Inventory | |||||||||||
Inventory, consisting primarily of print materials and operating supplies, is stated at the lower of cost (first-in, first-out method) or market. | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment are stated on the basis of cost. Depreciation is computed using the straight-line method at rates calculated to amortize the cost of the assets over their useful lives. The general ranges of estimated useful lives are: | |||||||||||
Buildings and improvements | 10 to 40 years | ||||||||||
Software | 3 to 10 years | ||||||||||
Equipment and furniture | 3 to 20 years | ||||||||||
Long-lived assets such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We did not record an impairment of long-lived assets in 2014, 2013 or 2012. | |||||||||||
Property, plant and equipment includes capital lease assets. Capital lease assets at December 31, 2014 and 2013 consisted of: | |||||||||||
December 31, | |||||||||||
In thousands | 2014 | 2013 | |||||||||
Equipment and furniture | $ | 1,351 | $ | 2,323 | |||||||
Less accumulated amortization | (980 | ) | (1,535 | ) | |||||||
Net book value | $ | 371 | $ | 788 | |||||||
Amortization expense related to capital lease assets was $0.2 million, $0.3 million and $0.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
Depreciation and amortization on the remaining property, plant and equipment was $14.7 million, $15.4 million and $15.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
Goodwill and Other Intangibles | |||||||||||
Goodwill and Other Intangibles | |||||||||||
Goodwill is recorded to the extent that the purchase price of an acquisition exceeds the fair value of the identifiable net assets acquired. Other intangibles with definite and indefinite useful lives are recorded at fair value at the date of the acquisition. The Company tests its goodwill and other intangible assets with indefinite useful lives for impairment as of November 30 of each year and as of an interim date should factors or indicators become apparent that would require an interim test. During the second quarter of 2014, Harte Hanks initiated a new strategy and began implementing changes to optimize our operational structure for that strategy. As a result, we now report two distinct divisions as reportable segments and reporting units — Customer Interaction and Trillium Software. The Company performs a qualitative assessment to determine whether fair value may be less than carrying value and, if necessary, assesses the impairment of its goodwill by determining the fair value of each of its reporting units and comparing the fair value to the carrying value for each reporting unit. Fair values of our reporting units and other intangibles with indefinite useful lives have been determined using discounted cash flow and cash flow multiple methodologies. Our overall market capitalization also was considered when evaluating the fair values of our reporting units. Intangible assets with definite useful lives are amortized over their respective estimated useful lives and reviewed for impairment if we believe that changes or triggering events have occurred that could have caused the carrying value of the intangible assets to exceed its fair value. | |||||||||||
As a result of a significant decrease in forecasted revenues and an overall strategic assessment of the related operations, management completed an evaluation of the Aberdeen Group trade name as of September 30, 2013. A discounted cash flow model was used to calculate the fair value of the Aberdeen Group trade name. The significant assumptions used in this method included the (i) revenue growth rates for the Aberdeen Group, (ii) discount rate, (iii) tax rate and (iv) royalty rate. These assumptions are considered Level 3 inputs under the fair value hierarchy established by FASB ASC 820, Fair Value Measurements and Disclosures. Harte Hanks recorded a non-cash trade name intangible asset impairment charge of $2.8 million. The impairment charge is included in Intangible impairment in the Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2013. | |||||||||||
As a result of continuing revenue declines in Shoppers, and in conjunction with management’s evaluation of the business, the Company determined that a triggering event had occurred in the second quarter of 2012. The subsequent goodwill impairment testing resulted in impairment charges in the second quarter of 2012 of $156.9 million. We also recorded $8.4 million in impairment charges related to trade names and client relationships associated with the Flyer, which are part of the Florida Shoppers operations. The total impairment of $165.3 million is included in discontinued operations. | |||||||||||
We have not recorded any other impairments of goodwill or other intangible assets in our continuing operations in any of the years during the three-year period ended December 31, 2014. | |||||||||||
Income Taxes | |||||||||||
Income Taxes | |||||||||||
Income taxes are calculated using the asset and liability method. Deferred income taxes are recognized for the tax consequences resulting from temporary differences by applying enacted statutory tax rates applicable to future years. These temporary differences are associated with differences between the financial and the tax basis of existing assets and liabilities. Valuation allowances have been established where we have assessed that it is more likely than not that certain deferred tax assets will not be realized in the foreseeable future. Any statutory change in tax rates will be recognized immediately in deferred taxes and income. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. | |||||||||||
Earnings Per Share | |||||||||||
Earnings Per Share | |||||||||||
Basic earnings per common share are based upon the weighted-average number of common shares outstanding during the period. Diluted earnings per common share are based upon the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. Dilutive common stock equivalents are calculated based on the assumed exercise of stock options and vesting of unvested shares using the treasury stock method. | |||||||||||
Stock-Based Compensation | |||||||||||
Stock-Based Compensation | |||||||||||
All share-based awards are recognized as operating expense in the “Labor” line of the Consolidated Statements of Comprehensive Income (Loss). Calculated expense is based on the fair values of the awards on the date of grant and is recognized over the requisite service period. | |||||||||||
Reserve for Healthcare, Workers' Compensation, Automobile and General Liability | |||||||||||
Reserve for Healthcare, Workers’ Compensation, Automobile and General Liability | |||||||||||
We are self-insured for our workers’ compensation, automobile, general liability and the majority of our healthcare insurance. We make various subjective judgments about a number of factors in determining our reserve for healthcare, workers’ compensation, automobile and general liability insurance, and the related expense. Our deductible for individual healthcare claims is $0.3 million. Our deductible for workers’ compensation is $0.5 million. We have a $0.3 million deductible for automobile and general liability claims. Our insurance administrator provides us with estimated loss reserves, based upon its experience dealing with similar types of claims, as well as amounts paid to date against these claims. We apply actuarial factors to both insurance estimated loss reserves and to paid claims and then determine reserve levels, taking into account these calculations. At December 31, 2014 and 2013, our reserve for healthcare, workers’ compensation, net, automobile and general liability was $7.8 million and $9.4 million, respectively. Periodic changes to the reserve for workers’ compensation, automobile and general liability are recorded as increases or decreases to insurance expense, which is included in the “Advertising, selling, general and administrative” line of our Consolidated Statements of Comprehensive Income (Loss). Periodic changes to the reserve for healthcare are recorded as increases or decreases to employee benefits expense, which is included in the “Labor” line of our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||
Foreign Currencies | |||||||||||
Foreign Currencies | |||||||||||
In most instances the functional currencies of our foreign operations are the local currencies. Assets and liabilities recorded in foreign currencies are translated in U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during a given month. Adjustments resulting from this translation are charged or credited to other comprehensive loss. | |||||||||||
Geographic Concentrations | |||||||||||
Geographic Concentrations | |||||||||||
Depending on the needs of our clients, our services are provided in an integrated approach through more than 30 facilities worldwide, of which 8 are located outside of the U.S. | |||||||||||
Information about the operations in different geographic areas: | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Revenue (1) | |||||||||||
United States | $ | 463,752 | $ | 469,596 | $ | 492,118 | |||||
Other countries | 89,924 | 90,013 | 88,973 | ||||||||
Total revenue | $ | 553,676 | $ | 559,609 | $ | 581,091 | |||||
December 31, | |||||||||||
In thousands | 2014 | 2013 | |||||||||
Property, plant and equipment (2) | |||||||||||
United States | $ | 33,134 | $ | 34,556 | |||||||
Other countries | 3,779 | 6,155 | |||||||||
Total property, plant and equipment | $ | 36,913 | $ | 40,711 | |||||||
(1)Geographic revenues are based on the location of the service being performed. | |||||||||||
(2)Property, plant and equipment are based on physical location. | |||||||||||
Recent Accounting Pronouncements | |||||||||||
Recent Accounting Pronouncements | |||||||||||
During the second quarter of 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU changes the requirements for reporting discontinued operations. Under the ASU, discontinued operations are defined as either a: | |||||||||||
· | Component of an entity or group of components that: | ||||||||||
· | has been disposed, meets the criteria to be classified as held-for sale, or has been abandoned/spun-off; and | ||||||||||
· | represents a strategic shift that has (or will have a major effect on an entity’s operations and financial results), or a | ||||||||||
· | Business or nonprofit activity that, on acquisition, meets the criteria to be classified as held-for sale. | ||||||||||
This ASU is effective for interim periods beginning after December 15, 2014, is applied prospectively and early adoption is permitted. This ASU does not have an impact on our December 31, 2014 financial statements and does not impact any of our previously reported and disclosed discontinued operations. The impact of the Company will be dependent on any transaction that is within the scope of the new guidance. | |||||||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. | |||||||||||
Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Significant Accounting Policies | |||||||||||
Schedule of changes in allowance for doubtful accounts | Year Ended December 31, | ||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Balance at beginning of year | $ | 1,729 | $ | 2,574 | $ | 2,445 | |||||
Net charges to expense | (68 | ) | 47 | 722 | |||||||
Amounts recovered against the allowance, net of charges | (437 | ) | (892 | ) | (593 | ) | |||||
Balance at end of year | $ | 1,224 | $ | 1,729 | $ | 2,574 | |||||
Schedule of estimated useful lives of property, plant and equipment | Buildings and improvements | 10 to 40 years | |||||||||
Software | 3 to 10 years | ||||||||||
Equipment and furniture | 3 to 20 years | ||||||||||
Schedule of capital lease assets | December 31, | ||||||||||
In thousands | 2014 | 2013 | |||||||||
Equipment and furniture | $ | 1,351 | $ | 2,323 | |||||||
Less accumulated amortization | (980 | ) | (1,535 | ) | |||||||
Net book value | $ | 371 | $ | 788 | |||||||
Schedule of information about the operations in different geographical areas | Year Ended December 31, | ||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Revenue (1) | |||||||||||
United States | $ | 463,752 | $ | 469,596 | $ | 492,118 | |||||
Other countries | 89,924 | 90,013 | 88,973 | ||||||||
Total revenue | $ | 553,676 | $ | 559,609 | $ | 581,091 | |||||
December 31, | |||||||||||
In thousands | 2014 | 2013 | |||||||||
Property, plant and equipment (2) | |||||||||||
United States | $ | 33,134 | $ | 34,556 | |||||||
Other countries | 3,779 | 6,155 | |||||||||
Total property, plant and equipment | $ | 36,913 | $ | 40,711 | |||||||
(1)Geographic revenues are based on the location of the service being performed. | |||||||||||
(2)Property, plant and equipment are based on physical location. | |||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Long-Term Debt | ||||||||||||||
Schedule of long-term debt obligations | ||||||||||||||
December 31, | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
2013 Revolving Credit Facility, various interest rates based on Eurodollar rate, due August 16, 2016 ($73.8 million capacity and effective rate of 2.42% at December 31, 2014) | $ | — | $ | — | ||||||||||
2011 Term Loan Facility, various interest rates based on LIBOR (effective rate of 2.17% at December 31, 2014), due August 16, 2016 | 82,687 | 98,000 | ||||||||||||
Total debt | $ | 82,687 | $ | 98,000 | ||||||||||
Less current maturities | 18,375 | 15,313 | ||||||||||||
Total long-term debt | $ | 64,312 | $ | 82,687 | ||||||||||
Schedule of carrying values and estimated fair values of outstanding debt | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
In thousands | Carrying | Fair | Carrying | Fair | ||||||||||
Value | Value | Value | Value | |||||||||||
Total Debt | $ | 82,687 | $ | 82,687 | $ | 98,000 | $ | 98,000 | ||||||
Schedule of future minimum principal payments related to debt | ||||||||||||||
In thousands | ||||||||||||||
2015 | $ | 18,375 | ||||||||||||
2016 | 64,312 | |||||||||||||
2017 | — | |||||||||||||
2018 | — | |||||||||||||
2019 | — | |||||||||||||
Thereafter | — | |||||||||||||
$ | 82,687 | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Taxes | |||||||||||||||||
Schedule of components of income tax expense (benefit) | Year Ended December 31, | ||||||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||||||
Current | |||||||||||||||||
Federal | $ | 5,836 | $ | 8,689 | $ | 14,676 | |||||||||||
State and Local | 619 | 3,554 | 3,521 | ||||||||||||||
Foreign | 1,062 | 1,189 | 1,878 | ||||||||||||||
Total Current | $ | 7,517 | $ | 13,432 | $ | 20,075 | |||||||||||
Deferred | |||||||||||||||||
Federal | $ | 2,862 | $ | 3,532 | $ | 2,831 | |||||||||||
State and local | 2,177 | (2,142 | ) | (1,232 | ) | ||||||||||||
Foreign | 759 | 354 | (878 | ) | |||||||||||||
Total Deferred | $ | 5,798 | $ | 1,744 | $ | 721 | |||||||||||
Total income tax expense | $ | 13,315 | $ | 15,176 | $ | 20,796 | |||||||||||
Schedule of components of income from continuing operations before income taxes | Year Ended December 31, | ||||||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||||||
United States | $ | 29,962 | $ | 33,143 | $ | 52,287 | |||||||||||
Foreign | 7,344 | 6,474 | 3,905 | ||||||||||||||
Total income (loss) from continuing operations before income taxes | $ | 37,306 | $ | 39,617 | $ | 56,192 | |||||||||||
Schedule of difference between total income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate | Year Ended December 31, | ||||||||||||||||
In thousands | 2014 | Rate | 2013 | Rate | 2012 | Rate | |||||||||||
Computed expected income tax expense (benefit) | $ | 13,057 | 35 | % | $ | 13,866 | 35 | % | $ | 19,667 | 35 | % | |||||
Net effect of state income taxes | 1,817 | 5 | % | 918 | 2 | % | 2,501 | 4 | % | ||||||||
Foreign subsidiary dividend inclusions | 135 | 0 | % | 1,125 | 3 | % | 120 | 0 | % | ||||||||
Foreign tax rate benefit | (749 | ) | -2 | % | (570 | ) | -1 | % | (366 | ) | -1 | % | |||||
Change in beginning of year valuation allowance | (537 | ) | -1 | % | (87 | ) | 0 | % | (1,225 | ) | -2 | % | |||||
Other, net | (408 | ) | -1 | % | (76 | ) | 0 | % | 99 | 0 | % | ||||||
Income tax expense (benefit) for the period | $ | 13,315 | 36 | % | $ | 15,176 | 38 | % | $ | 20,796 | 37 | % | |||||
Schedule of allocation of income tax expense (benefit) | Year Ended December 31, | ||||||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||||||
Continuing operations | $ | 13,315 | $ | 15,176 | $ | 20,796 | |||||||||||
Discontinued operations | — | 1,225 | (48,959 | ) | |||||||||||||
Loss on sale | — | (9,047 | ) | (2,147 | ) | ||||||||||||
Stockholders’ equity | (9,527 | ) | 17,373 | (736 | ) | ||||||||||||
Total | $ | 3,788 | $ | 24,727 | $ | (31,046 | ) | ||||||||||
Schedule of tax effects of temporary differences | Year Ended December 31, | ||||||||||||||||
In thousands | 2014 | 2013 | |||||||||||||||
Deferred tax assets | |||||||||||||||||
Deferred compensation and retirement plan | $ | 25,432 | $ | 14,449 | |||||||||||||
Accrued expenses not deductible until paid | 3,925 | 4,430 | |||||||||||||||
Employee stock-based compensation | 1,182 | 2,561 | |||||||||||||||
Accrued payroll not deductible until paid | 948 | 2,270 | |||||||||||||||
Accounts receivable, net | 1,175 | 1,345 | |||||||||||||||
Other, net | 76 | 124 | |||||||||||||||
State income tax | 60 | 269 | |||||||||||||||
Federal net operating loss carryforwards | 130 | 130 | |||||||||||||||
Foreign net operating loss carryforwards | 2,805 | 2,750 | |||||||||||||||
State net operating loss carryfowards | 2,010 | 2,037 | |||||||||||||||
Foreign tax credit carryforwards | 739 | 1,125 | |||||||||||||||
Capital loss carryforwards | 7,182 | 6,713 | |||||||||||||||
Total gross deferred tax assets | 45,664 | 38,203 | |||||||||||||||
Less valuation analysis | (10,933 | ) | (10,744 | ) | |||||||||||||
Net deferred tax assets | $ | 34,731 | $ | 27,459 | |||||||||||||
Deferred tax liabilities | |||||||||||||||||
Property, plant and equipment | $ | (6,484 | ) | $ | (7,250 | ) | |||||||||||
Goodwill and other intangibles | (82,702 | ) | (78,301 | ) | |||||||||||||
Total gross deferred tax liabilities | (89,186 | ) | (85,551 | ) | |||||||||||||
Net deferred tax liabilities | $ | (54,455 | ) | $ | (58,092 | ) | |||||||||||
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefit | In thousands | ||||||||||||||||
Balance at January 1, 2013 | $ | 51 | |||||||||||||||
Additions for current year tax positions | — | ||||||||||||||||
Additions for prior year tax positions | — | ||||||||||||||||
Reductions for prior year tax positions | — | ||||||||||||||||
Lapse of statute | (24 | ) | |||||||||||||||
Settlements | — | ||||||||||||||||
Balance at December 31, 2013 | $ | 27 | |||||||||||||||
Additions for current year tax positions | $ | — | |||||||||||||||
Additions for prior year tax positions | — | ||||||||||||||||
Reductions for prior year tax positions | — | ||||||||||||||||
Lapse of statute | (27 | ) | |||||||||||||||
Settlements | — | ||||||||||||||||
Balance at December 31, 2014 | $ | — | |||||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Other Intangible Assets | |||||||||||
Schedule of net book value of goodwill | In thousands | 2014 | 2013 | 2012 | |||||||
Continuing Operations | $ | — | $ | 398,164 | $ | 398,164 | |||||
Discontinued Operations | — | — | 10,551 | ||||||||
Customer Interactions | 248,891 | — | — | ||||||||
Trillium Software | 149,273 | — | — | ||||||||
Total Goodwill | $ | 398,164 | $ | 398,164 | $ | 408,715 | |||||
Schedule of changes in the carrying amount of other intangibles with indefinite lives | In thousands | ||||||||||
Balance at December 31, 2012 | $ | 5,000 | |||||||||
Purchase Price Consideration | — | ||||||||||
Impairment | (2,750 | ) | |||||||||
Balance at December 31, 2013 | $ | 2,250 | |||||||||
Purchase Price Consideration | — | ||||||||||
Balance at December 31, 2014 | $ | 2,250 | |||||||||
Schedule of changes in the carrying amount of other intangibles with definite lives | In thousands | ||||||||||
Balance at December 31, 2012 | $ | 259 | |||||||||
Purchase Price Consideration | — | ||||||||||
Amortization | (206 | ) | |||||||||
Impairment | — | ||||||||||
Balance at December 31, 2013 | $ | 53 | |||||||||
Purchase Price Consideration | — | ||||||||||
Amortization | (26 | ) | |||||||||
Impairment | — | ||||||||||
Balance at December 31, 2014 | $ | 27 | |||||||||
Schedule of expected amortization expense | In thousands | ||||||||||
2015 | $ | 27 | |||||||||
2016 | — | ||||||||||
2017 | — | ||||||||||
2018 | — | ||||||||||
2019 | — | ||||||||||
Thereafter | — | ||||||||||
$ | 27 | ||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Employee Benefit Plans | ||||||||||||||
Schedule of status of defined benefit pension plans | ||||||||||||||
Year Ended December 31, | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 161,370 | $ | 179,077 | ||||||||||
Service cost | 100 | 343 | ||||||||||||
Interest cost | 7,698 | 7,237 | ||||||||||||
Actuarial (gain) loss | 32,018 | (16,488 | ) | |||||||||||
Benefits paid | (9,051 | ) | (8,799 | ) | ||||||||||
Curtailments | (1,070 | ) | — | |||||||||||
Benefit obligation at end of year | $ | 191,065 | $ | 161,370 | ||||||||||
Change in plan assets | ||||||||||||||
Fair value of plan assets at beginning of year | 120,604 | 102,174 | ||||||||||||
Actual return on plan assets | 6,887 | 21,127 | ||||||||||||
Contributions | 5,932 | 6,102 | ||||||||||||
Benefits paid | (9,051 | ) | (8,799 | ) | ||||||||||
Fair value of plan assets at end of year | $ | 124,372 | $ | 120,604 | ||||||||||
Funded status at end of year | $ | (66,693 | ) | $ | (40,766 | ) | ||||||||
Schedule of amounts recognized in the Consolidated Balance Sheets | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
Other current liabilities | $ | 1,537 | $ | 1,572 | ||||||||||
Pensions | 65,156 | 39,194 | ||||||||||||
$ | 66,693 | $ | 40,766 | |||||||||||
Schedule of amounts recognized in accumulated other comprehensive loss | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
Net loss | $ | 49,560 | $ | 32,279 | ||||||||||
Prior service cost | — | — | ||||||||||||
$ | 49,560 | $ | 32,279 | |||||||||||
Schedule of accumulated benefit obligation in excess of plan assets | ||||||||||||||
In thousands | 2014 | 2013 | ||||||||||||
Projected benefit obligation | $ | 191,065 | $ | 161,370 | ||||||||||
Accumulated benefit obligation | $ | 191,065 | $ | 160,340 | ||||||||||
Fair value of plan assets | $ | 124,372 | $ | 120,604 | ||||||||||
Schedule of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) | ||||||||||||||
Year Ended December 31, | ||||||||||||||
In thousands | 2014 | 2013 | 2012 | |||||||||||
Net Periodic Benefit Cost (Pre-Tax) | ||||||||||||||
Service cost | $ | 100 | $ | 343 | $ | 467 | ||||||||
Interest cost | 7,698 | 7,237 | 7,841 | |||||||||||
Expected return on plan assets | (8,418 | ) | (7,383 | ) | (6,733 | ) | ||||||||
Amortization of prior service cost | — | — | 4 | |||||||||||
Recognized actuarial loss | 3,654 | 6,687 | 5,999 | |||||||||||
Net periodic benefit cost | $ | 3,034 | $ | 6,884 | $ | 7,578 | ||||||||
Amounts Recognized in Other Comprehensive Income (Loss) (Pre-Tax) | ||||||||||||||
Net (gain) loss | $ | 28,802 | $ | (36,920 | ) | $ | 9,548 | |||||||
Prior service cost | — | — | (4 | ) | ||||||||||
Total (benefit) cost recognized in other comprehensive loss | $ | 28,802 | $ | (36,920 | ) | $ | 9,544 | |||||||
Net (benefit) cost recognized in net periodic benefit cost and other comprehensive (income) loss | $ | 31,836 | $ | (30,036 | ) | $ | 17,122 | |||||||
Schedule of weighted-average assumptions used for measurement of the defined pension plans | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||||||||||
Discount rate | 4.94 | % | 4.15 | % | 5.02 | % | ||||||||
Expected return on plan assets | 7.00 | % | 7.25 | % | 7.25 | % | ||||||||
Rate of compensation increase | N/A | 3.00 | % | 3.00 | % | |||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Weighted-average assumptions used to determine benefit obligations | ||||||||||||||
Discount rate | 4.13 | % | 4.94 | % | ||||||||||
Rate of compensation increase | N/A | 3.00 | % | |||||||||||
Schedule of funded pension plan assets by asset category | ||||||||||||||
In thousands | 2014 | % | 2013 | % | ||||||||||
Equity securities | $ | 82,010 | 66 | % | $ | 85,606 | 71 | % | ||||||
Debt securities | 32,381 | 26 | % | 30,460 | 25 | % | ||||||||
Other | 9,981 | 8 | % | 4,538 | 4 | % | ||||||||
Total plan assets | $ | 124,372 | 100 | % | $ | 120,604 | 100 | % | ||||||
Schedule of fair value of plan assets | ||||||||||||||
In thousands | December 31, | Quoted | Significant | Significant | ||||||||||
2014 | Prices in | Other | Unobservable | |||||||||||
Active | Observable | Inputs | ||||||||||||
Markets for | Inputs | (Level 3) | ||||||||||||
Identical | (Level 2) | |||||||||||||
Assets | ||||||||||||||
(Level 1) | ||||||||||||||
Equity securities | $ | 82,010 | $ | 82,010 | $ | — | $ | — | ||||||
Debt securities | 32,381 | 32,381 | — | — | ||||||||||
Other | 9,981 | — | 9,982 | — | ||||||||||
Total | $ | 124,372 | $ | 114,391 | $ | 9,982 | $ | — | ||||||
In thousands | December 31, | Quoted | Significant | Significant | ||||||||||
2013 | Prices in | Other | Unobservable | |||||||||||
Active | Observable | Inputs | ||||||||||||
Markets for | Inputs | (Level 3) | ||||||||||||
Identical | (Level 2) | |||||||||||||
Assets | ||||||||||||||
(Level 1) | ||||||||||||||
Equity securities | $ | 85,606 | $ | 85,606 | $ | — | $ | — | ||||||
Debt securities | 30,460 | 30,460 | — | — | ||||||||||
Other | 4,538 | — | 4,538 | — | ||||||||||
Total | $ | 120,604 | $ | 116,066 | $ | 4,538 | $ | — | ||||||
Schedule of investment mix, which is intended to subject the principal to an acceptable level of volatility while still meeting the desired return objectives | ||||||||||||||
Target | Acceptable Range | Benchmark Index | ||||||||||||
Domestic Equities | 50.0 | % | 35% - 75% | S&P 500 | ||||||||||
Large Cap Growth | 22.5 | % | 15% - 30% | Russell 1000 Growth | ||||||||||
Large Cap Value | 22.5 | % | 15% - 30% | Russell 1000 Value | ||||||||||
Mid Cap Value | 5.0 | % | 5% - 15% | Russell Mid Cap Value | ||||||||||
Mid Cap Growth | 0.0 | % | 0% - 10% | Russell Mid Cap Growth | ||||||||||
Domestic Fixed Income | 35.0 | % | 15% - 50% | LB Aggregate | ||||||||||
International Equities | 15.0 | % | 10% - 25% | MSC1 EAFE | ||||||||||
Schedule of investments that represented 5% or more of the funded pension plan's assets | ||||||||||||||
In thousands | 2014 | % | 2013 | % | ||||||||||
LM Institutional Fund Advisors I, Inc. Western Asset Core Plus | $ | 15,734 | 14 | % | $ | 16,643 | 14 | % | ||||||
State Street Government STIF 15 | $ | 10,332 | 8 | % | ||||||||||
PIMCO Total Return Fund Institutional Class | $ | 13,715 | 11 | % | $ | 13,817 | 11 | % | ||||||
Schedule of expected future pension benefit payments | ||||||||||||||
In thousands | ||||||||||||||
2015 | $ | 9,161 | ||||||||||||
2016 | 9,348 | |||||||||||||
2017 | 9,588 | |||||||||||||
2018 | 9,775 | |||||||||||||
2019 | 9,941 | |||||||||||||
2020-2023 | 55,210 | |||||||||||||
$ | 103,023 | |||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
Summary of stock option activity | |||||||||||||||||
In thousands | Number of | Weighted- | Weighted- | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Option | Remaining | Value | |||||||||||||||
Price | Contractual | (Thousands) | |||||||||||||||
Term | |||||||||||||||||
(Years) | |||||||||||||||||
Options outstanding at December 31, 2011 | 6,753,628 | $ | 15.75 | ||||||||||||||
Granted in 2012 | 970,500 | 8.98 | |||||||||||||||
Exercised in 2012 | (106,375 | ) | 6.04 | $ | 297 | ||||||||||||
Unvested options forfeited in 2012 | (798,311 | ) | 10.28 | ||||||||||||||
Vested options expired in 2012 | (1,712,813 | ) | 19.33 | ||||||||||||||
Options outstanding at December 31, 2012 | 5,106,629 | $ | 14.32 | ||||||||||||||
Granted in 2013 | 1,138,600 | 8.3 | |||||||||||||||
Exercised in 2013 | (151,875 | ) | 6.04 | $ | 268 | ||||||||||||
Unvested options forfeited in 2013 | (762,062 | ) | 11.97 | ||||||||||||||
Vested options expired in 2013 | (1,085,580 | ) | 13.47 | ||||||||||||||
Options outstanding at December 31, 2013 | 4,245,712 | $ | 13.65 | ||||||||||||||
Granted in 2014 | 1,002,955 | 8.01 | |||||||||||||||
Exercised in 2014 | (78,125 | ) | 6.19 | $ | 61 | ||||||||||||
Unvested options forfeited in 2014 | (437,984 | ) | 8.72 | ||||||||||||||
Vested options expired in 2014 | (268,537 | ) | 17.83 | ||||||||||||||
Options outstanding at December 31, 2014 | 4,464,021 | $ | 11.5 | 5.34 | $ | 1,158 | |||||||||||
Exercisable at December 31, 2014 | 2,137,350 | $ | 15.1 | 3.89 | $ | 496 | |||||||||||
Summary of information of stock options outstanding | |||||||||||||||||
Range of | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||
Exercise | Outstanding | Average | Average | Exercisable | Average | ||||||||||||
Prices | Exercise | Remaining | Exercise | ||||||||||||||
Price | Life (Years) | Price | |||||||||||||||
$ | 0.00 - 6.99 | 656,710 | $ | 6.13 | 2.90 | 266,500 | $ | 6.04 | |||||||||
$ | 7.00 - 10.99 | 2,269,986 | $ | 8.40 | 7.68 | 468,650 | $ | 8.70 | |||||||||
$ | 11.00 - 11.99 | 469,875 | $ | 11.90 | 4.87 | 377,125 | $ | 11.90 | |||||||||
$ | 12.00 - 15.99 | 390,375 | $ | 14.24 | 4.21 | 348,000 | $ | 14.45 | |||||||||
$ | 16.00 - 24.49 | 53,000 | $ | 17.66 | 2.98 | 53,000 | $ | 17.66 | |||||||||
$ | 24.50 - 28.85 | 624,075 | $ | 25.86 | 0.68 | 624,075 | $ | 25.86 | |||||||||
4,464,021 | $ | 11.50 | 5.34 | 2,137,350 | $ | 15.10 | |||||||||||
Schedule of weighted-average assumptions used to estimate fair value | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected term (in years) | 6.25 | 6.25 | 6.25 | ||||||||||||||
Expected stock price volatility | 47.10 | % | 46.59 | % | 44.24 | % | |||||||||||
Risk-free interest rate | 1.88 | % | 1.43 | % | 1.05 | % | |||||||||||
Expected dividend yield | 3.82 | % | 4.74 | % | 3.41 | % | |||||||||||
Summary of unvested share activity | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average Grant | ||||||||||||||||
Date Fair Value | |||||||||||||||||
Unvested shares outstanding at December 31, 2011 | 419,340 | $ | 11.42 | ||||||||||||||
Granted in 2012 | 332,113 | 9.91 | |||||||||||||||
Vested in 2012 | (143,626 | ) | 9.82 | ||||||||||||||
Forfeited in 2012 | (107,374 | ) | 11.09 | ||||||||||||||
Unvested shares outstanding at December 31, 2012 | 500,453 | $ | 10.95 | ||||||||||||||
Granted in 2013 | 591,931 | 8.02 | |||||||||||||||
Vested in 2013 | (297,375 | ) | 11.01 | ||||||||||||||
Forfeited in 2013 | (108,964 | ) | 8.94 | ||||||||||||||
Unvested shares outstanding at December 31, 2013 | 686,045 | $ | 8.72 | ||||||||||||||
Granted in 2014 | 529,426 | 7.9 | |||||||||||||||
Vested in 2014 | (342,613 | ) | 8.98 | ||||||||||||||
Forfeited in 2014 | (82,720 | ) | 8.37 | ||||||||||||||
Unvested shares outstanding at December 31, 2014 | 790,138 | $ | 8.1 | ||||||||||||||
Summary of performance stock unit activity | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average Grant-Date Fair Value | ||||||||||||||||
Performance stock units outstanding at December 31, 2011 | 169,600 | $ | 11.34 | ||||||||||||||
Granted in 2012 | 136,000 | 8.84 | |||||||||||||||
Settled in 2012 | — | 0 | |||||||||||||||
Forfeited in 2012 | (65,900 | ) | 10.15 | ||||||||||||||
Performance stock units outstanding at December 31, 2012 | 239,700 | $ | 10.25 | ||||||||||||||
Granted in 2013 | 333,000 | 7.76 | |||||||||||||||
Settled in 2013 | — | 0 | |||||||||||||||
Forfeited in 2013 | (102,000 | ) | 9.84 | ||||||||||||||
Performance stock units outstanding at December 31, 2013 | 470,700 | $ | 8.58 | ||||||||||||||
Granted in 2014 | 308,507 | 7.09 | |||||||||||||||
Settled in 2014 | — | 0 | |||||||||||||||
Forfeited in 2014 | (175,533 | ) | 9.3 | ||||||||||||||
Performance stock units outstanding at December 31, 2014 | 603,674 | $ | 7.61 | ||||||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases | ||||||||
Schedule of future minimum rental commitments for all non-cancellable operating leases | In thousands | |||||||
2015 | $ | 10,012 | ||||||
2016 | 6,380 | |||||||
2017 | 5,163 | |||||||
2018 | 3,340 | |||||||
2019 | 1,697 | |||||||
Thereafter | 1,466 | |||||||
$ | 28,058 | |||||||
Schedule of capital lease obligations | In thousands | 2014 | 2013 | |||||
Current portion of capital leases | $ | 134 | $ | 257 | ||||
Long-term portion of capital leases | 185 | 204 | ||||||
Total capital lease obligation | $ | 319 | $ | 461 | ||||
Schedule of future minimum rental commitments for all capital leases | In thousands | |||||||
2015 | $ | 134 | ||||||
2016 | 98 | |||||||
2017 | 59 | |||||||
2018 | 23 | |||||||
2019 | 5 | |||||||
Thereafter | — | |||||||
$ | 319 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share | |||||||||||
Reconciliation of basic and diluted earnings per share | |||||||||||
In thousands, exept per share amounts | 2014 | 2013 | 2012 | ||||||||
Net Income | |||||||||||
Income from continuing operations | $ | 23,991 | $ | 24,441 | $ | 35,396 | |||||
Income (loss) from discontinued operations | — | (11,071 | ) | (118,749 | ) | ||||||
Net income (loss) | $ | 23,991 | $ | 13,370 | $ | (83,353 | ) | ||||
Basic EPS | |||||||||||
Weighted-average common shares outstanding used in earnings per share computations | 62,444 | 62,503 | 62,887 | ||||||||
Basic earnings (loss) per share | |||||||||||
Continuing operations | $ | 0.38 | $ | 0.39 | $ | 0.56 | |||||
Discontinued operations | — | (0.18 | ) | (1.89 | ) | ||||||
Net income | $ | 0.38 | $ | 0.21 | $ | (1.33 | ) | ||||
Diluted EPS | |||||||||||
Shares used in diluted earnings per share computations | 62,658 | 62,812 | 63,148 | ||||||||
Basic earnings (loss) per share | |||||||||||
Continuing operations | $ | 0.38 | $ | 0.39 | $ | 0.56 | |||||
Discontinued operations | — | (0.18 | ) | (1.88 | ) | ||||||
Net income | $ | 0.38 | $ | 0.21 | $ | (1.32 | ) | ||||
Computation of Shares Used in Earnings Per Share Computations | |||||||||||
Weighted-average common shares outstanding | 62,444 | 62,503 | 62,887 | ||||||||
Weighted-average common equivalent shares- dilutive effect of stock options and awards | 214 | 309 | 261 | ||||||||
Shares used in diluted earnings per share computations | 62,658 | 62,812 | 63,148 | ||||||||
Comprehensive_Income_Loss_Tabl
Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Comprehensive Income (Loss) | |||||||||||
Schedule of Comprehensive Income (Loss) | Year Ended December 31, | ||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Net income (loss) | $ | 23,991 | $ | 13,370 | $ | (83,353 | ) | ||||
Other comprehensive income (loss): | |||||||||||
Adjustment to pension liability | (28,802 | ) | 36,920 | (9,544 | ) | ||||||
Tax (expense) benefit | 11,521 | (14,768 | ) | 3,818 | |||||||
Adjustment to pension liability, net of tax | (17,281 | ) | 22,152 | (5,726 | ) | ||||||
Foreign currency translation adjustment | (1,830 | ) | (536 | ) | 1,315 | ||||||
Total other comprehensive income (loss) | $ | (19,111 | ) | $ | 21,616 | $ | (4,411 | ) | |||
Total comprehensive income (loss) | $ | 4,880 | $ | 34,986 | $ | (87,764 | ) | ||||
Schedule of changes in accumulated other comprehensive income | |||||||||||
In thousands | Defined Benefit | Foreign | Total | ||||||||
Pension Items | Currency Items | ||||||||||
Balance at December 31, 2013 | $ | (32,279 | ) | $ | 4,161 | $ | (28,118 | ) | |||
Other comprehensive income (loss), net of tax, before reclassifications | — | (1,830 | ) | (1,830 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (17,281 | ) | — | (17,281 | ) | ||||||
Net current period other comprehensive income (loss), net of tax | (17,281 | ) | (1,830 | ) | (19,111 | ) | |||||
Balance at December 31, 2014 | $ | (49,560 | ) | $ | 2,331 | $ | (47,229 | ) | |||
In thousands | Defined Benefit | Foreign | Total | ||||||||
Pension Items | Currency Items | ||||||||||
Balance at December 31, 2012 | $ | (54,431 | ) | $ | 4,697 | $ | (49,734 | ) | |||
Other comprehensive income (loss), net of tax, before reclassifications | — | (536 | ) | (536 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 22,152 | — | 22,152 | ||||||||
Net current period other comprehensive income (loss), net of tax | 22,152 | (536 | ) | 21,616 | |||||||
Balance at December 31, 2013 | $ | (32,279 | ) | $ | 4,161 | $ | (28,118 | ) | |||
Selected_Quarterly_Data_Unaudi1
Selected Quarterly Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Selected Quarterly Data (Unaudited) | ||||||||||||||||||||||||||
Schedule of selected quarterly data (unaudited) | In thousands, | 2014 Quarter Ended | 2013 Quarter Ended | |||||||||||||||||||||||
except per share amounts | December 31 | September 30 | June 30 | March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||||
Revenues | $ | 146,518 | $ | 134,121 | $ | 140,310 | $ | 132,727 | $ | 152,179 | $ | 134,973 | $ | 140,105 | $ | 132,352 | ||||||||||
Operating income (loss) | 14,656 | 10,540 | 10,987 | 4,579 | 12,484 | 8,360 | 12,413 | 9,404 | ||||||||||||||||||
Income (loss) from continuing operations | 10,089 | 6,420 | 5,637 | 1,845 | 6,734 | 4,451 | 6,936 | 6,320 | ||||||||||||||||||
Income (loss) from discontinued operations | — | — | — | — | (168 | ) | (12,624 | ) | 1,373 | 348 | ||||||||||||||||
Net income (loss) | 10,089 | 6,420 | 5,637 | 1,845 | 6,566 | (8,173 | ) | 8,309 | 6,668 | |||||||||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.1 | $ | 0.09 | $ | 0.03 | $ | 0.11 | $ | 0.07 | $ | 0.11 | $ | 0.1 | ||||||||||
Discontinued operations | 0 | 0 | 0 | 0 | (0.01 | ) | (0.20 | ) | 0.02 | 0.01 | ||||||||||||||||
Net income (loss) | $ | 0.16 | $ | 0.1 | $ | 0.09 | $ | 0.03 | $ | 0.1 | $ | (0.13 | ) | $ | 0.13 | $ | 0.11 | |||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.1 | $ | 0.09 | $ | 0.03 | $ | 0.11 | $ | 0.07 | $ | 0.11 | $ | 0.1 | ||||||||||
Discontinued operations | 0 | 0 | 0 | 0 | (0.01 | ) | (0.20 | ) | 0.02 | 0.01 | ||||||||||||||||
Net income (loss) | $ | 0.16 | $ | 0.1 | $ | 0.09 | $ | 0.03 | $ | 0.1 | $ | (0.13 | ) | $ | 0.13 | $ | 0.11 | |||||||||
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Business Segments | |||||||||||
Business segment reporting information | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Operating revenues | |||||||||||
Customer Interaction | $ | 499,444 | $ | 503,760 | $ | 528,042 | |||||
Trillium Software | 54,232 | 55,849 | 53,049 | ||||||||
Total operating revenues | $ | 553,676 | $ | 559,609 | $ | 581,091 | |||||
Operating income | |||||||||||
Customer Interaction | $ | 29,780 | $ | 32,021 | $ | 53,221 | |||||
Trillium Software | 13,347 | 15,396 | 14,658 | ||||||||
Corporate | (2,365 | ) | (4,756 | ) | (5,210 | ) | |||||
Total operating income | $ | 40,762 | $ | 42,661 | $ | 62,669 | |||||
Income from continuing operations before income taxes | $ | 40,762 | $ | 42,661 | $ | 62,669 | |||||
Interest expense | 2,834 | 3,103 | 3,573 | ||||||||
Interest income | (275 | ) | (105 | ) | (89 | ) | |||||
Other, net | 897 | 46 | 2,993 | ||||||||
Total income from continuing operations before income taxes | $ | 37,306 | $ | 39,617 | $ | 56,192 | |||||
Depreciation | |||||||||||
Customer Interaction | $ | 12,859 | $ | 13,477 | $ | 13,853 | |||||
Trillium Software | 2,035 | 2,053 | 1,823 | ||||||||
Corporate | — | — | — | ||||||||
Total depreciation | $ | 14,894 | $ | 15,530 | $ | 15,676 | |||||
Other intangible amortization | |||||||||||
Customer Interaction | $ | 26 | $ | 206 | $ | 246 | |||||
Trillium Software | — | — | — | ||||||||
Corporate | — | — | — | ||||||||
Total intangible amortization | $ | 26 | $ | 206 | $ | 246 | |||||
Capital expenditures | |||||||||||
Customer Interaction | $ | 9,341 | $ | 14,092 | $ | 11,108 | |||||
Trillium Software | 1,912 | 1,781 | 2,353 | ||||||||
Corporate | 12 | — | — | ||||||||
Total capital expenditures | $ | 11,265 | $ | 15,873 | $ | 13,461 | |||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Total assets | |||||||||||
Customer Interaction | $ | 533,073 | $ | 575,159 | $ | 570,784 | |||||
Trillium Software | 114,126 | 110,377 | 87,890 | ||||||||
Corporate | — | — | 47,538 | ||||||||
Total assets | $ | 647,199 | $ | 685,536 | $ | 706,212 | |||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Discontinued Operations | |||||||||||
Summary of operating results for the Shoppers discontinued operations | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Revenues | $ | — | $ | 140,834 | $ | 222,736 | |||||
Income (loss) from discontinued operations before impairment charges and income taxes | — | 2,509 | 344 | ||||||||
Impairment of goodwill and other intangible assets before income taxes | — | — | (165,336 | ) | |||||||
Loss on sale before income taxes | — | (21,402 | ) | (4,863 | ) | ||||||
Income tax benefit (expense) | — | 7,822 | 51,106 | ||||||||
Income (loss) from discontinued operations | $ | — | $ | (11,071 | ) | $ | (118,749 | ) | |||
Summary of major components of cash flows for the Shoppers discontinued operations | |||||||||||
Year Ended December 31, | |||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||
Gain (Loss) from discontinued operations | $ | — | $ | (11,071 | ) | $ | (118,749 | ) | |||
Impairment of goodwill and other intangible assets | — | — | 165,336 | ||||||||
Loss on sale | — | 12,355 | 2,716 | ||||||||
Deferred Income Taxes | — | 10,594 | (39,234 | ) | |||||||
Depreciation and software amortization | — | 2,592 | 5,062 | ||||||||
Other, net | — | 2,619 | 4,725 | ||||||||
Net cash provided by (used in) discontinued operations | $ | — | $ | 17,089 | $ | 19,856 | |||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2012 | |
item | segment | |||||
Changes in the allowance for doubtful accounts | ||||||
Balance at beginning of year | $1,729,000 | $2,574,000 | $2,445,000 | |||
Net charges to expense | -68,000 | 47,000 | 722,000 | |||
Amounts recovered against the allowance, net of charges | -437,000 | -892,000 | -593,000 | |||
Balance at end of year | 1,224,000 | 1,729,000 | 2,574,000 | |||
Property, plant and equipment | ||||||
Equipment and furniture | 210,612,000 | 210,565,000 | ||||
Less accumulated amortization | -173,699,000 | -169,854,000 | ||||
Net property, plant and equipment | 36,913,000 | 40,711,000 | ||||
Depreciation and amortization expense | 14,894,000 | 15,530,000 | 15,676,000 | |||
Goodwill and Other Intangibles | ||||||
Number of reportable segments | 2 | 2 | ||||
Reserve for Healthcare, Workers' Compensation, Automobile and General Liability | ||||||
Deductible for automobile and general liability claims | 300,000 | |||||
Reserve for healthcare, workers' compensation, net, automobile and general liability | 7,800,000 | 9,400,000 | ||||
Deductible for individual healthcare claims | 300,000 | |||||
Deductible for workers' compensation | 500,000 | |||||
Customer Interaction | ||||||
Goodwill and Other Intangibles | ||||||
Impairment charges related to trade names and client relationships | 2,800,000 | 2,800,000 | ||||
Shoppers | ||||||
Goodwill and Other Intangibles | ||||||
Impairment charges related to goodwill | 156,900,000 | |||||
Impairment charges related to trade names and client relationships | 8,400,000 | |||||
Total impairment charges | 165,300,000 | |||||
Building and building improvements | Minimum | ||||||
Property, plant and equipment | ||||||
Estimated useful lives | 10 years | |||||
Building and building improvements | Maximum | ||||||
Property, plant and equipment | ||||||
Estimated useful lives | 40 years | |||||
Software | Minimum | ||||||
Property, plant and equipment | ||||||
Estimated useful lives | 3 years | |||||
Software | Maximum | ||||||
Property, plant and equipment | ||||||
Estimated useful lives | 10 years | |||||
Equipment and furniture | Minimum | ||||||
Property, plant and equipment | ||||||
Estimated useful lives | 3 years | |||||
Equipment and furniture | Maximum | ||||||
Property, plant and equipment | ||||||
Estimated useful lives | 20 years | |||||
Equipment and furniture - capital lease | ||||||
Property, plant and equipment | ||||||
Equipment and furniture | 1,351,000 | 2,323,000 | ||||
Less accumulated amortization | -980,000 | -1,535,000 | ||||
Net property, plant and equipment | 371,000 | 788,000 | ||||
Depreciation and amortization expense | 200,000 | 300,000 | 500,000 | |||
Property, plant and equipment except assets under capital leases | ||||||
Property, plant and equipment | ||||||
Depreciation and amortization expense | $14,700,000 | $15,400,000 | $15,400,000 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | |||||||||||
Information about the operations in different geographical areas | |||||||||||
Number of facilities through which services are provided | 30 | ||||||||||
Revenues | |||||||||||
Revenues | $146,518 | $134,121 | $140,310 | $132,727 | $152,179 | $134,973 | $140,105 | $132,352 | $553,676 | $559,609 | $581,091 |
Property, plant and equipment | |||||||||||
Property, Plant and Equipment, Net | 36,913 | 40,711 | 36,913 | 40,711 | |||||||
United States | |||||||||||
Revenues | |||||||||||
Revenues | 463,752 | 469,596 | 492,118 | ||||||||
Property, plant and equipment | |||||||||||
Property, Plant and Equipment, Net | 33,134 | 34,556 | 33,134 | 34,556 | |||||||
Other countries | |||||||||||
Information about the operations in different geographical areas | |||||||||||
Number of facilities through which services are provided | 8 | ||||||||||
Revenues | |||||||||||
Revenues | 89,924 | 90,013 | 88,973 | ||||||||
Property, plant and equipment | |||||||||||
Property, Plant and Equipment, Net | $3,779 | $6,155 | $3,779 | $6,155 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Long-term debt obligation | ||
Total debt | $82,687,000 | $98,000,000 |
Less current maturities | 18,375,000 | 15,313,000 |
Total long-term debt | 64,312,000 | 82,687,000 |
2013 Revolving Credit Facility, due August 16, 2016 | ||
Long-term debt obligation | ||
Basis of interest rate | Eurodollar rate | |
Remaining borrowing capacity | 73,800,000 | 72,500,000 |
Effective rate of interest (as a percent) | 2.42% | |
2011 Term Loan Facility, due August 16, 2016 | ||
Long-term debt obligation | ||
Basis of interest rate | LIBOR | |
Total debt | $82,687,000 | $98,000,000 |
Effective rate of interest (as a percent) | 2.17% |
LongTerm_Debt_Details_2
Long-Term Debt (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Value | ||
Carrying values and estimated fair values of outstanding debt | ||
Total debt | $82,687 | $98,000 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Carrying values and estimated fair values of outstanding debt | ||
Total debt | $82,687 | $98,000 |
LongTerm_Debt_Details_3
Long-Term Debt (Details 3) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Aug. 08, 2013 | Dec. 31, 2014 | Aug. 12, 2010 | Aug. 16, 2011 | Dec. 31, 2013 | |
Letter of Credit | |||||
Long-Term Debt | |||||
Letters of credit amount issued | $6,200,000 | ||||
2013 Revolving Credit Facility, due August 16, 2016 | |||||
Long-Term Debt | |||||
Term of debt instrument | 3 years | ||||
Maximum amount of facility | 80,000,000 | ||||
Maximum amount available for the issuance of letters of credit | 25,000,000 | ||||
Maximum amount available for the issuance of swingline loans | 5,000,000 | ||||
Amount of increase to the maximum borrowing capacity that may be requested | 15,000,000 | ||||
Reference rate | Eurodollar rate | ||||
Remaining borrowing capacity | 73,800,000 | 72,500,000 | |||
2013 Revolving Credit Facility, due August 16, 2016 | Minimum | |||||
Long-Term Debt | |||||
Commitment fee (as a percent) | 0.50% | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Maximum | |||||
Long-Term Debt | |||||
Commitment fee (as a percent) | 0.55% | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Eurodollar Rate | Interest Rate Option One | |||||
Long-Term Debt | |||||
Reference rate | Eurodollar rate | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Eurodollar Rate | Interest Rate Option One | Minimum | |||||
Long-Term Debt | |||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 2.25% | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Eurodollar Rate | Interest Rate Option One | Maximum | |||||
Long-Term Debt | |||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 3.00% | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Eurodollar Rate | Interest Rate Option Two | |||||
Long-Term Debt | |||||
Reference rate | Eurodollar rate | ||||
Additional variable interest rate spread (as a percent) | 1.00% | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Eurodollar Rate | Interest Rate Option Two | Minimum | |||||
Long-Term Debt | |||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 1.25% | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Eurodollar Rate | Interest Rate Option Two | Maximum | |||||
Long-Term Debt | |||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 2.00% | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Prime Rate | Interest Rate Option Two | |||||
Long-Term Debt | |||||
Reference rate | Agent's prime rate | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Federal Funds Rate | Interest Rate Option Two | |||||
Long-Term Debt | |||||
Reference rate | Federal Funds Rate | ||||
Additional variable interest rate spread (as a percent) | 0.50% | ||||
2013 Revolving Credit Facility, due August 16, 2016 | Letter of Credit | |||||
Long-Term Debt | |||||
Letters of credit amount issued | 6,200,000 | ||||
Fronting fee (as a percent) | 0.13% | ||||
2010 Revolving Credit Facility, due August 12, 2013 | |||||
Long-Term Debt | |||||
Term of debt instrument | 3 years | ||||
Maximum amount of facility | 70,000,000 | ||||
Borrowings outstanding other than letters of credit | 0 | ||||
2010 Revolving Credit Facility, due August 12, 2013 | Letter of Credit | |||||
Long-Term Debt | |||||
Letters of credit amount issued | 9,500,000 | 7,500,000 | |||
2011 Term Loan Facility, due August 16, 2016 | |||||
Long-Term Debt | |||||
Term of debt instrument | 5 years | ||||
Initial aggregate principal amount | $122,500,000 | ||||
Reference rate | LIBOR | ||||
2011 Term Loan Facility, due August 16, 2016 | London Interbank Offered Rate (LIBOR) | Interest Rate Option One | |||||
Long-Term Debt | |||||
Reference rate | LIBOR | ||||
2011 Term Loan Facility, due August 16, 2016 | London Interbank Offered Rate (LIBOR) | Interest Rate Option One | Minimum | |||||
Long-Term Debt | |||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 2.00% | ||||
2011 Term Loan Facility, due August 16, 2016 | London Interbank Offered Rate (LIBOR) | Interest Rate Option One | Maximum | |||||
Long-Term Debt | |||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 2.75% | ||||
2011 Term Loan Facility, due August 16, 2016 | Prime Rate | Interest Rate Option Two | |||||
Long-Term Debt | |||||
Reference rate | Agent's prime rate | ||||
2011 Term Loan Facility, due August 16, 2016 | Federal Funds Rate | Interest Rate Option Two | |||||
Long-Term Debt | |||||
Reference rate | Federal Funds Rate | ||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 0.50% | ||||
2011 Term Loan Facility, due August 16, 2016 | Federal Funds Rate | Interest Rate Option Two | Minimum | |||||
Long-Term Debt | |||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 1.00% | ||||
2011 Term Loan Facility, due August 16, 2016 | Federal Funds Rate | Interest Rate Option Two | Maximum | |||||
Long-Term Debt | |||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 1.75% | ||||
2011 Term Loan Facility, due August 16, 2016 | BBA Daily Floating Rate LIBOR | Interest Rate Option Two | |||||
Long-Term Debt | |||||
Reference rate | BBA daily floating rate LIBOR | ||||
Variable spread based on total debt-to-EBITDA ratio (as a percent) | 1.00% |
LongTerm_Debt_Details_4
Long-Term Debt (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Future minimum principal payments | |||
2015 | $18,375,000 | ||
2016 | 64,312,000 | ||
Total debt | 82,687,000 | 98,000,000 | |
Cash payments for interest | 2,500,000 | 2,800,000 | 3,200,000 |
Minimum | |||
Long-term debt obligation | |||
Interest coverage ratio (as a percent) | 2.75 | ||
Maximum | |||
Long-term debt obligation | |||
Aggregate percentage limit of consolidated revenue accounted for by foreign subsidiaries | 25.00% | ||
Aggregate percentage limit of assets accounted for by foreign subsidiaries | 20.00% | ||
Limit of allowed indebtedness of subsidiaries | 20,000,000 | ||
2013 Revolving Credit Facility, due August 16, 2016 | Maximum | |||
Long-term debt obligation | |||
Debt-to-EBITDA ratio (as a percent) | 2.25 | ||
2011 Term Loan Facility, due August 16, 2016 | |||
Future minimum principal payments | |||
Total debt | $82,687,000 | $98,000,000 | |
2011 Term Loan Facility, due August 16, 2016 | Maximum | |||
Long-term debt obligation | |||
Debt-to-EBITDA ratio (as a percent) | 3 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current | |||
Federal | $5,836,000 | $8,689,000 | $14,676,000 |
State and local | 619,000 | 3,554,000 | 3,521,000 |
Foreign | 1,062,000 | 1,189,000 | 1,878,000 |
Total current | 7,517,000 | 13,432,000 | 20,075,000 |
Deferred | |||
Federal | 2,862,000 | 3,532,000 | 2,831,000 |
State and local | 2,177,000 | -2,142,000 | -1,232,000 |
Foreign | 759,000 | 354,000 | -878,000 |
Total deferred | 5,798,000 | 1,744,000 | 721,000 |
Total income tax expense (benefit) | 13,315,000 | 15,176,000 | 20,796,000 |
The U.S. and foreign components of income before income taxes | |||
United States | 29,962,000 | 33,143,000 | 52,287,000 |
Foreign | 7,344,000 | 6,474,000 | 3,905,000 |
Income from continuing operations before income taxes | 37,306,000 | 39,617,000 | 56,192,000 |
Differences between total income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate | |||
Computed expected income tax expense (benefit) | 13,057,000 | 13,866,000 | 19,667,000 |
Net effect of state income taxes | 1,817,000 | 918,000 | 2,501,000 |
Foreign subsidiary dividend inclusions | 135,000 | 1,125,000 | 120,000 |
Foreign tax rate benefit | -749,000 | -570,000 | -366,000 |
Change in beginning of year valuation allowance | -537,000 | -87,000 | -1,225,000 |
Other, net | -408,000 | -76,000 | 99,000 |
Total income tax expense (benefit) | 13,315,000 | 15,176,000 | 20,796,000 |
Differences between total income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate | |||
Computed expected income tax expense (benefit) (as a percent) | 35.00% | 35.00% | 35.00% |
Net effect of state income taxes (as a percent) | 5.00% | 2.00% | 4.00% |
Foreign subsidiary dividend inclusions (as a percent) | 0.00% | 3.00% | 0.00% |
Foreign tax rate benefit (as a percent) | -2.00% | -1.00% | -1.00% |
Change in beginning of year valuation allowance (as a percent) | -1.00% | 0.00% | -2.00% |
Other, net (as a percent) | -1.00% | 0.00% | 0.00% |
Income tax expense (benefit) for the period (as a percent) | 36.00% | 38.00% | 37.00% |
Allocation of income tax expense (benefit) | |||
Continuing operations | 13,315,000 | 15,176,000 | 20,796,000 |
Discontinued operations | 1,225,000 | -48,959,000 | |
Loss on sale | -9,047,000 | -2,147,000 | |
Stockholders' equity | -9,527,000 | 17,373,000 | -736,000 |
Total | 3,788,000 | 24,727,000 | -31,046,000 |
Deferred tax assets | |||
Deferred compensation and retirement plan | 25,432,000 | 14,449,000 | |
Accrued expenses not deductible until paid | 3,925,000 | 4,430,000 | |
Employee stock-based compensation | 1,182,000 | 2,561,000 | |
Accrued payroll not deductible until paid | 948,000 | 2,270,000 | |
Accounts receivable, net | 1,175,000 | 1,345,000 | |
Other, net | 76,000 | 124,000 | |
State income tax | 60,000 | 269,000 | |
Federal net operating loss carryforwards | 130,000 | 130,000 | |
Foreign net operating loss carryforwards | 2,805,000 | 2,750,000 | |
State net operating loss carryforwards | 2,010,000 | 2,037,000 | |
Foreign tax credit carryforwards | 739,000 | 1,125,000 | |
Capital loss carryforwards | 7,182,000 | 6,713,000 | |
Total gross deferred tax assets | 45,664,000 | 38,203,000 | |
Less valuation analysis | -10,933,000 | -10,744,000 | |
Net deferred tax assets | 34,731,000 | 27,459,000 | |
Deferred tax liabilities | |||
Property, plant and equipment | -6,484,000 | -7,250,000 | |
Goodwill and other intangibles | -82,702,000 | -78,301,000 | |
Total gross deferred tax liabilities | -89,186,000 | -85,551,000 | |
Net deferred tax liabilities | -54,455,000 | -58,092,000 | |
Non-current deferred tax assets netted with long-term deferred tax liabilities | $29,700,000 | $19,800,000 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 02, 2012 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefit | ||||
Balance at the beginning of the period | $27,000 | $51,000 | ||
Lapse of statute | -27,000 | -24,000 | ||
Balance at the end of the period | 27,000 | 51,000 | ||
Federally effected unrecognized tax benefits | 0 | |||
Tax benefits for the reduction of accrued interest and penalties | 100,000 | 100,000 | ||
Valuation allowance for deferred tax assets | 10,933,000 | 10,744,000 | ||
Change in valuation allowance | 200,000 | 8,300,000 | ||
Undistributed earnings of foreign subsidiaries | 1,900,000 | |||
Cash held in foreign subsidiaries | 4,700,000 | |||
Additional income tax that would be due if cash held in foreign subsidiaries was repatriated. | 900,000 | |||
Income tax paid in cash | 4,900,000 | 11,300,000 | 13,600,000 | |
Florida Shoppers Operations | ||||
Reconciliation of the beginning and ending amount of unrecognized tax benefit | ||||
Change in valuation allowance | ($1,000,000) |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | |
item | segment | |||||
Intangible Assets | ||||||
Number of reportable segments | 2 | 2 | ||||
Changes in the carrying amount of goodwill | ||||||
Goodwill | $398,164,000 | $398,164,000 | $408,715,000 | |||
Continuing Operations | ||||||
Changes in the carrying amount of goodwill | ||||||
Goodwill | 398,164,000 | 398,164,000 | ||||
Discontinued Operations. | ||||||
Changes in the carrying amount of goodwill | ||||||
Goodwill | 10,551,000 | |||||
Customer Interaction | ||||||
Intangible Assets | ||||||
Non-cash trade name intangible asset impairment charge | 2,800,000 | 2,800,000 | ||||
Changes in the carrying amount of goodwill | ||||||
Goodwill | 248,891,000 | |||||
Trillium Software | ||||||
Changes in the carrying amount of goodwill | ||||||
Goodwill | 149,273,000 | |||||
Shoppers | ||||||
Intangible Assets | ||||||
Non-cash trade name intangible asset impairment charge | 8,400,000 | |||||
Impairment assumptions and analysis | ||||||
Impairment of goodwill | 156,900,000 | |||||
Total impairment charges | $165,300,000 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Changes in the carrying amount of other intangibles with indefinite lives | ||
Balance at beginning of the period | $5,000 | $2,250 |
Impairment | -2,750 | |
Balance at end of the period | $2,250 | $2,250 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the carrying amount of other intangibles with definite lives | |||
Balance at the beginning of the period | $53 | $259 | |
Purchase Price Consideration | 0 | 0 | |
Amortization | -26 | -206 | -246 |
Impairment | 0 | 0 | |
Balance at the end of the period | 27 | 53 | 259 |
Expected amortization expense | |||
2015 | 27 | ||
Total | $27 | $53 | $259 |
Minimum | |||
Intangible assets with useful lives | |||
Useful lives | 3 years | ||
Maximum | |||
Intangible assets with useful lives | |||
Useful lives | 10 years |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Amounts recognized in consolidated balance sheets | |||
Other current liabilities | $1,537,000 | $1,572,000 | |
Pensions | 65,156,000 | 39,194,000 | |
Total | 66,693,000 | 40,766,000 | |
Amounts recognized in accumulated other comprehensive income (loss) | |||
Net loss | 49,560,000 | 32,279,000 | |
Total | 49,560,000 | 32,279,000 | |
Pension Plan | |||
Employee Benefits Plans | |||
Curtailments | -1,070,000 | ||
Expected benefit payments in next fiscal year | 9,161,000 | ||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 161,370,000 | 179,077,000 | |
Service cost | 100,000 | 343,000 | 467,000 |
Interest cost | 7,698,000 | 7,237,000 | 7,841,000 |
Actuarial (gain) loss | 32,018,000 | -16,488,000 | |
Benefits paid | -9,051,000 | -8,799,000 | |
Curtailments | -1,070,000 | ||
Benefit obligation at end of year | 191,065,000 | 161,370,000 | 179,077,000 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 120,604,000 | 102,174,000 | |
Actual return on plan assets | 6,887,000 | 21,127,000 | |
Contributions | 5,932,000 | 6,102,000 | |
Benefits paid | -9,051,000 | -8,799,000 | |
Fair value of plan assets at end of year | 124,372,000 | 120,604,000 | 102,174,000 |
Funded status at end of year | -66,693,000 | -40,766,000 | |
Accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 191,065,000 | 161,370,000 | |
Accumulated benefit obligation | 191,065,000 | 160,340,000 | |
Fair value of plan assets | 124,372,000 | 120,604,000 | |
Net Periodic Benefit Cost (Pre-tax) | |||
Service cost | 100,000 | 343,000 | 467,000 |
Interest cost | 7,698,000 | 7,237,000 | 7,841,000 |
Expected return on plan assets | -8,418,000 | -7,383,000 | -6,733,000 |
Amortization of prior service cost | 4,000 | ||
Recognized actuarial loss | 3,654,000 | 6,687,000 | 5,999,000 |
Net periodic benefit cost | 3,034,000 | 6,884,000 | 7,578,000 |
Amounts Recognized in Other Comprehensive Income (Loss) (Pre-tax) | |||
Net (gain) loss | 28,802,000 | -36,920,000 | 9,548,000 |
Prior service cost | -4,000 | ||
Total (benefit) cost recognized in other comprehensive loss | 28,802,000 | -36,920,000 | 9,544,000 |
Net (benefit) cost recognized in net periodic benefit cost and other comprehensive (income) loss | 31,836,000 | -30,036,000 | 17,122,000 |
Estimated net loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in next fiscal year | 6,300,000 | ||
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount rate (as a percent) | 4.94% | 4.15% | 5.02% |
Expected return on plan assets (as a percent) | 7.00% | 7.25% | 7.25% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | |
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate (as a percent) | 4.13% | 4.94% | |
Rate of compensation increase (as a percent) | 3.00% | ||
Period considered for compounded returns | 15 years | ||
Qualified Pension Plan | |||
Employee Benefits Plans | |||
Contribution by employer in next fiscal year | 4,000,000 | ||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 120,604,000 | ||
Fair value of plan assets at end of year | 124,372,000 | ||
Restoration Pension Plan | |||
Employee Benefits Plans | |||
Reduction of plan expense over the remainder of 2014 | 400,000 | ||
Curtailments | 1,100,000 | ||
Expected benefit payments in next fiscal year | 1,500,000 | ||
Change in benefit obligation | |||
Curtailments | 1,100,000 | ||
Accumulated benefit obligation in excess of plan assets | |||
Accumulated benefit obligation | $28,200,000 | $24,100,000 |
Employee_Benefit_Plans_Details1
Employee Benefit Plans (Details 2) (Qualified Pension Plan, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Benefits Plans | ||
Fair value of plan assets | 124,372 | $120,604 |
Funded pension plan assets, by asset category (as a percent) | 100.00% | 100.00% |
Minimum | ||
Employee Benefits Plans | ||
Period to meet policy goals | 3 years | |
Maximum | ||
Employee Benefits Plans | ||
Period to meet policy goals | 5 years | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Employee Benefits Plans | ||
Fair value of plan assets | 114,391 | 116,066 |
Significant Other Observable Inputs (Level 2) | ||
Employee Benefits Plans | ||
Fair value of plan assets | 9,982 | 4,538 |
Equity Securities | ||
Employee Benefits Plans | ||
Fair value of plan assets | 82,010 | 85,606 |
Funded pension plan assets, by asset category (as a percent) | 66.00% | 71.00% |
Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Employee Benefits Plans | ||
Fair value of plan assets | 82,010 | 85,606 |
Debt Securities | ||
Employee Benefits Plans | ||
Fair value of plan assets | 32,381 | 30,460 |
Funded pension plan assets, by asset category (as a percent) | 26.00% | 25.00% |
Debt Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Employee Benefits Plans | ||
Fair value of plan assets | 32,381 | 30,460 |
Other Securities | ||
Employee Benefits Plans | ||
Fair value of plan assets | 9,981 | 4,538 |
Funded pension plan assets, by asset category (as a percent) | 8.00% | 4.00% |
Other Securities | Significant Other Observable Inputs (Level 2) | ||
Employee Benefits Plans | ||
Fair value of plan assets | 9,982 | $4,538 |
Employee_Benefit_Plans_Details2
Employee Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
401(k) retirement plan | |||
Expense recognized in the 401(k) retirement plan | $3,800,000 | $3,900,000 | $4,000,000 |
Pension Plan | |||
Employee Benefits Plans | |||
Fair value of plan assets | 124,372,000 | 120,604,000 | 102,174,000 |
Expected future pension benefit payments | |||
2015 | 9,161,000 | ||
2016 | 9,348,000 | ||
2017 | 9,588,000 | ||
2018 | 9,775,000 | ||
2019 | 9,941,000 | ||
2020-2023 | 55,210,000 | ||
Total | 103,023,000 | ||
Qualified Pension Plan | |||
Employee Benefits Plans | |||
Fair value of plan assets | 124,372,000 | 120,604,000 | |
Investments as a percent of Plan assets | 100.00% | 100.00% | |
Qualified Pension Plan | Minimum | |||
Expected future pension benefit payments | |||
Period of operating history and sufficient trading volume of invested entity | 5 years | ||
Qualified Pension Plan | Domestic Equities | |||
Employee Benefits Plans | |||
Target (as a percent) | 50.00% | ||
Acceptable Range, Minimum (as a percent) | 35.00% | ||
Acceptable Range, Maximum (as a percent) | 75.00% | ||
Qualified Pension Plan | Large Cap Growth | |||
Employee Benefits Plans | |||
Target (as a percent) | 22.50% | ||
Acceptable Range, Minimum (as a percent) | 15.00% | ||
Acceptable Range, Maximum (as a percent) | 30.00% | ||
Qualified Pension Plan | Large Cap Value | |||
Employee Benefits Plans | |||
Target (as a percent) | 22.50% | ||
Acceptable Range, Minimum (as a percent) | 15.00% | ||
Acceptable Range, Maximum (as a percent) | 30.00% | ||
Qualified Pension Plan | Mid Cap Value | |||
Employee Benefits Plans | |||
Target (as a percent) | 5.00% | ||
Acceptable Range, Minimum (as a percent) | 5.00% | ||
Acceptable Range, Maximum (as a percent) | 15.00% | ||
Qualified Pension Plan | Mid Cap Growth | |||
Employee Benefits Plans | |||
Target (as a percent) | 0.00% | ||
Acceptable Range, Minimum (as a percent) | 0.00% | ||
Acceptable Range, Maximum (as a percent) | 10.00% | ||
Qualified Pension Plan | Domestic Fixed Income | |||
Employee Benefits Plans | |||
Target (as a percent) | 35.00% | ||
Acceptable Range, Minimum (as a percent) | 15.00% | ||
Acceptable Range, Maximum (as a percent) | 50.00% | ||
Qualified Pension Plan | International Equities | |||
Employee Benefits Plans | |||
Target (as a percent) | 15.00% | ||
Acceptable Range, Minimum (as a percent) | 10.00% | ||
Acceptable Range, Maximum (as a percent) | 25.00% | ||
Qualified Pension Plan | LM Institutional Fund Advisors I Inc Western Asset Core Plus | |||
Employee Benefits Plans | |||
Fair value of plan assets | 15,734,000 | 16,643,000 | |
Investments as a percent of Plan assets | 14.00% | 14.00% | |
Qualified Pension Plan | State Street Government STIF 15 | |||
Employee Benefits Plans | |||
Fair value of plan assets | 10,332,000 | ||
Investments as a percent of Plan assets | 8.00% | ||
Qualified Pension Plan | PIMCO Total Return Fund Institutional Class | |||
Employee Benefits Plans | |||
Fair value of plan assets | $13,715,000 | $13,817,000 | |
Investments as a percent of Plan assets | 11.00% | 11.00% |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2014 | |
Stockholders' Equity | ||||||||
Dividends paid (in dollars per share) | $0.09 | $0.09 | $0.09 | $0.09 | $0.34 | $0.26 | $0.43 | |
Common stock received by Company in lieu of cash from stock option exercises and vesting of non-vested shares (in shares) | 108,159 | |||||||
Common stock received by Company in lieu of cash from stock option exercises and vesting of non-vested shares | $800,000 | |||||||
Stock Repurchase program | ||||||||
Common stock repurchased | 7,894,000 | 1,662,000 | 4,402,000 | |||||
2012 Stock Repurchase program | ||||||||
Stock Repurchase program | ||||||||
Common stock repurchased (in shares) | 1,200,000 | |||||||
Common stock repurchased | 7,900,000 | |||||||
Authorized amount to repurchase shares | 20,000,000 | |||||||
Amount available to repurchase additional shares | $16,100,000 | $16,100,000 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | |
Stock-Based Compensation | ||||
Stock-based compensation expense | $4,100,000 | $5,700,000 | $3,400,000 | |
2013 Plan | ||||
Stock-Based Compensation | ||||
Number of shares authorized under the plan | 5,000,000 | |||
2005 Plan | ||||
Stock-Based Compensation | ||||
Number of additional awards to be granted | 0 | |||
1991 Plan | ||||
Stock-Based Compensation | ||||
Number of additional awards to be granted | 0 | |||
Stock Option | ||||
Number of Shares | ||||
Options outstanding at the beginning of the period (in shares) | 4,245,712 | 5,106,629 | 6,753,628 | |
Granted (in shares) | 1,002,955 | 1,138,600 | 970,500 | |
Exercised (in shares) | -78,125 | -151,875 | -106,375 | |
Unvested options forfeited (in shares) | -437,984 | -762,062 | -798,311 | |
Vested options expired (in shares) | -268,537 | -1,085,580 | -1,712,813 | |
Options outstanding at the end of the period (in shares) | 4,464,021 | 4,245,712 | 5,106,629 | |
Exercisable (in shares) | 2,137,350 | |||
Weighted-Average Option Price | ||||
Options outstanding at the beginning of the period (in dollars per share) | $13.65 | $14.32 | $15.75 | |
Granted (in dollars per share) | $8.01 | $8.30 | $8.98 | |
Exercised (in dollars per share) | $6.19 | $6.04 | $6.04 | |
Unvested options forfeited (in dollars per share) | $8.72 | $11.97 | $10.28 | |
Vested options expired (in dollars per share) | $17.83 | $13.47 | $19.33 | |
Options outstanding at the end of the period (in dollars per share) | $11.50 | $13.65 | $14.32 | |
Exercisable (in dollars per share) | $15.10 | |||
Weighted-Average Remaining Contractual Term | ||||
Options outstanding at the end of the period | 5 years 4 months 2 days | |||
Exercisable at the end of the period | 3 years 10 months 21 days | |||
Aggregate Intrinsic Value | ||||
Exercised (in dollars) | 61,000 | 268,000 | 297,000 | |
Options outstanding at the end of the period (in dollars) | 1,158,000 | |||
Options exercisable at the end of the period (in dollars) | $496,000 | |||
Stock Option | 2013 CEO Plan | ||||
Stock-Based Compensation | ||||
Incremental percentage of options, that become exercisable on the first through fourth anniversaries | 25.00% | |||
Expiration term | 10 years | |||
Number of Shares | ||||
Options outstanding at the end of the period (in shares) | 400,000 | |||
Weighted-Average Option Price | ||||
Options outstanding at the end of the period (in dollars per share) | $9.29 | |||
Stock Option | 2013 Plan | ||||
Stock-Based Compensation | ||||
Shares available for grant | 3,200,000 | |||
Incremental percentage of options, that become exercisable on the first through fourth anniversaries | 25.00% | |||
Expiration term | 10 years | |||
Number of Shares | ||||
Options outstanding at the end of the period (in shares) | 1,000,000 | |||
Stock Option | 2013 Plan | Minimum | ||||
Weighted-Average Option Price | ||||
Options outstanding at the end of the period (in dollars per share) | $6.39 | |||
Stock Option | 2013 Plan | Maximum | ||||
Weighted-Average Option Price | ||||
Options outstanding at the end of the period (in dollars per share) | $8.85 | |||
Stock Option | 2005 Plan | ||||
Stock-Based Compensation | ||||
Expiration term | 10 years | |||
Incremental percentage of options, granted after 2010, that become exercisable on the first through fourth anniversaries | 25.00% | |||
Number of Shares | ||||
Options outstanding at the end of the period (in shares) | 2,800,000 | |||
Stock Option | 2005 Plan | Minimum | ||||
Weighted-Average Option Price | ||||
Options outstanding at the end of the period (in dollars per share) | $6.04 | |||
Stock Option | 2005 Plan | Maximum | ||||
Weighted-Average Option Price | ||||
Options outstanding at the end of the period (in dollars per share) | $28.85 | |||
Stock Option | 2005 Plan | Prior to 2011 | ||||
Stock-Based Compensation | ||||
Incremental percentage of options, granted prior to 2011, that become exercisable on the second through fifth anniversaries | 25.00% | |||
Expiration term | 10 years | |||
Stock Option | 1991 Plan | ||||
Stock-Based Compensation | ||||
Incremental percentage of options, granted prior to 2011, that become exercisable on the second through fifth anniversaries | 25.00% | |||
Expiration term | 10 years | |||
Number of Shares | ||||
Options outstanding at the end of the period (in shares) | 300,000 | |||
Weighted-Average Option Price | ||||
Options outstanding at the end of the period (in dollars per share) | $25.63 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (Stock Option, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Information of stock options by exercise price range. | |
Number Outstanding (in shares) | 4,464,021 |
Outstanding Weighted-Average Exercise Price (in dollars per share) | $11.50 |
Outstanding Weighted-Average Remaining Life | 5 years 4 months 2 days |
Number Exercisable (in shares) | 2,137,350 |
Exercisable Weighted-Average Exercise Price (in dollars per share) | $15.10 |
$ 0.00 - 6.99 | |
Information of stock options by exercise price range. | |
Range of Exercise Prices, minimum (in dollars per share) | $0 |
Range of Exercise Prices, maximum (in dollars per share) | $6.99 |
Number Outstanding (in shares) | 656,710 |
Outstanding Weighted-Average Exercise Price (in dollars per share) | $6.13 |
Outstanding Weighted-Average Remaining Life | 2 years 10 months 24 days |
Number Exercisable (in shares) | 266,500 |
Exercisable Weighted-Average Exercise Price (in dollars per share) | $6.04 |
$ 7.00 - 10.99 | |
Information of stock options by exercise price range. | |
Range of Exercise Prices, minimum (in dollars per share) | $7 |
Range of Exercise Prices, maximum (in dollars per share) | $10.99 |
Number Outstanding (in shares) | 2,269,986 |
Outstanding Weighted-Average Exercise Price (in dollars per share) | $8.40 |
Outstanding Weighted-Average Remaining Life | 7 years 8 months 5 days |
Number Exercisable (in shares) | 468,650 |
Exercisable Weighted-Average Exercise Price (in dollars per share) | $8.70 |
$ 11.00 - 11.99 | |
Information of stock options by exercise price range. | |
Range of Exercise Prices, minimum (in dollars per share) | $11 |
Range of Exercise Prices, maximum (in dollars per share) | $11.99 |
Number Outstanding (in shares) | 469,875 |
Outstanding Weighted-Average Exercise Price (in dollars per share) | $11.90 |
Outstanding Weighted-Average Remaining Life | 4 years 10 months 13 days |
Number Exercisable (in shares) | 377,125 |
Exercisable Weighted-Average Exercise Price (in dollars per share) | $11.90 |
$ 12.00 - 15.99 | |
Information of stock options by exercise price range. | |
Range of Exercise Prices, minimum (in dollars per share) | $12 |
Range of Exercise Prices, maximum (in dollars per share) | $15.99 |
Number Outstanding (in shares) | 390,375 |
Outstanding Weighted-Average Exercise Price (in dollars per share) | $14.24 |
Outstanding Weighted-Average Remaining Life | 4 years 2 months 16 days |
Number Exercisable (in shares) | 348,000 |
Exercisable Weighted-Average Exercise Price (in dollars per share) | $14.45 |
$ 16.00 - 24.49 | |
Information of stock options by exercise price range. | |
Range of Exercise Prices, minimum (in dollars per share) | $16 |
Range of Exercise Prices, maximum (in dollars per share) | $24.49 |
Number Outstanding (in shares) | 53,000 |
Outstanding Weighted-Average Exercise Price (in dollars per share) | $17.66 |
Outstanding Weighted-Average Remaining Life | 2 years 11 months 23 days |
Number Exercisable (in shares) | 53,000 |
Exercisable Weighted-Average Exercise Price (in dollars per share) | $17.66 |
$ 24.50 - 28.85 | |
Information of stock options by exercise price range. | |
Range of Exercise Prices, minimum (in dollars per share) | $24.50 |
Range of Exercise Prices, maximum (in dollars per share) | $28.85 |
Number Outstanding (in shares) | 624,075 |
Outstanding Weighted-Average Exercise Price (in dollars per share) | $25.86 |
Outstanding Weighted-Average Remaining Life | 8 months 5 days |
Number Exercisable (in shares) | 624,075 |
Exercisable Weighted-Average Exercise Price (in dollars per share) | $25.86 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 3) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Option | ||||
Weighted-average assumptions used to estimate fair value | ||||
Expected term | 6 years 3 months | 6 years 3 months | 6 years 3 months | |
Expected stock price volatility (as a percent) | 47.10% | 46.59% | 44.24% | |
Risk-free interest rate (as a percent) | 1.88% | 1.43% | 1.05% | |
Expected dividend yield (as a percent) | 3.82% | 4.74% | 3.41% | |
Other disclosures | ||||
Weighted-Average Grant-Date Fair Value (in dollars per share) | $2.59 | $2.35 | $2.74 | |
Unrecognized compensation cost | $3.80 | |||
Recognition period | 2 years 7 months 28 days | |||
Stock Option | Minimum | ||||
Weighted-average assumptions used to estimate fair value | ||||
Estimated dividend payments (in dollars per share) | $0.34 | |||
Unvested Shares | ||||
Other disclosures | ||||
Unrecognized compensation cost | 4.6 | |||
Recognition period | 1 year 11 months 12 days | |||
Number of Shares | ||||
Outstanding at the beginning of the period (in shares) | 686,045 | 500,453 | 419,340 | |
Granted (in shares) | 529,426 | 591,931 | 332,113 | |
Vested/Issued (in shares) | -342,613 | -297,375 | -143,626 | |
Forfeited (in shares) | -82,720 | -108,964 | -107,374 | |
Outstanding at the end of the period (in shares) | 790,138 | 686,045 | 500,453 | |
Weighted-Average Grant-Date Fair Value | ||||
Outstanding at the beginning of the period (in dollars per share) | $8.72 | $10.95 | $11.42 | |
Granted (in dollars per share) | $7.90 | $8.02 | $9.91 | |
Vested/Issued (in dollars per share) | $8.98 | $11.01 | $9.82 | |
Forfeited (in dollars per share) | $8.37 | $8.94 | $11.09 | |
Outstanding at the end of the period (in dollars per share) | $8.10 | $8.72 | $10.95 | |
Unvested Shares | 2005 Plan | ||||
Other disclosures | ||||
Number of equal increments over the first three anniversaries from the date of grant | 3 | |||
Unvested Shares | 2013 CEO Plan | ||||
Other disclosures | ||||
Number of equal increments over the first three anniversaries from the date of grant in which a majority of non-vested shares, granted after 2010, vest | 3 | |||
Restricted Shares | 2013 Plan | ||||
Other disclosures | ||||
Number of equal increments over the first three anniversaries from the date of grant | 3 | |||
Performance Shares | ||||
Other disclosures | ||||
Unrecognized compensation cost | $0.80 | |||
Recognition period | 2 years 1 month 24 days | |||
Number of Shares | ||||
Outstanding at the beginning of the period (in shares) | 603,674 | 470,700 | 239,700 | 169,600 |
Granted (in shares) | 308,507 | 333,000 | 136,000 | |
Forfeited (in shares) | -175,533 | -102,000 | -65,900 | |
Outstanding at the end of the period (in shares) | 603,674 | 470,700 | 239,700 | |
Weighted-Average Grant-Date Fair Value | ||||
Outstanding at the beginning of the period (in dollars per share) | $7.61 | $8.58 | $10.25 | $11.34 |
Granted (in dollars per share) | $7.09 | $7.76 | $8.84 | |
Vested/Issued (in dollars per share) | $0 | $0 | $0 | |
Forfeited (in dollars per share) | $9.30 | $9.84 | $10.15 | |
Outstanding at the end of the period (in dollars per share) | $7.61 | $8.58 | $10.25 | |
Performance Shares | 2013 Plan, 2005 Plan and 2013 CEO Plan | ||||
Other disclosures | ||||
Share Based Compensation Arrangement by Share Based Payment Award, Performance Measurement Period | 3 years | |||
Period over which performance goals are measured | 3 years | |||
Percentage payout upon change of control | 100.00% | |||
Performance Shares | 2013 Plan, 2005 Plan and 2013 CEO Plan | Minimum | ||||
Other disclosures | ||||
Percentage of award shares to be issued based on performance against goals | 0.00% | |||
Performance Shares | 2013 Plan, 2005 Plan and 2013 CEO Plan | Maximum | ||||
Other disclosures | ||||
Percentage of award shares to be issued based on performance against goals | 100.00% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Letter of Credit, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Contingencies | |
Letters of credit amount issued | $6.20 |
Amount drawn against letters of credit | 0 |
2013 Revolving Credit Facility, due August 16, 2016 | |
Contingencies | |
Letters of credit amount issued | $6.20 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Leases | |||
Rent expense | $15,400,000 | $14,500,000 | $14,900,000 |
Future minimum rental commitments for all non-cancellable operating leases | |||
2015 | 10,012,000 | ||
2016 | 6,380,000 | ||
2017 | 5,163,000 | ||
2018 | 3,340,000 | ||
2019 | 1,697,000 | ||
Thereafter | 1,466,000 | ||
Total | 28,058,000 | ||
Capital lease obligations | |||
Current portion of capital leases | 134,000 | 257,000 | |
Long-term portion of capital leases | 185,000 | 204,000 | |
Total capital lease obligations | 319,000 | 461,000 | |
Future minimum lease payments for all capital leases | |||
2015 | 134,000 | ||
2016 | 98,000 | ||
2017 | 59,000 | ||
2018 | 23,000 | ||
2019 | 5,000 | ||
Total | $319,000 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Income | |||||||||||
Income from continuing operations | $10,089 | $6,420 | $5,637 | $1,845 | $6,734 | $4,451 | $6,936 | $6,320 | $23,991 | $24,441 | $35,396 |
Income (loss) from discontinued operations | -168 | -12,624 | 1,373 | 348 | -11,071 | -118,749 | |||||
Net income (loss) | $10,089 | $6,420 | $5,637 | $1,845 | $6,566 | ($8,173) | $8,309 | $6,668 | $23,991 | $13,370 | ($83,353) |
Basic EPS | |||||||||||
Weighted-average common shares outstanding used in earnings per share computations | 62,444 | 62,503 | 62,887 | ||||||||
Continuing operations (in dollars per share) | $0.16 | $0.10 | $0.09 | $0.03 | $0.11 | $0.07 | $0.11 | $0.10 | $0.38 | $0.39 | $0.56 |
Discontinued operations (in dollars per share) | $0 | $0 | $0 | $0 | ($0.01) | ($0.20) | $0.02 | $0.01 | $0 | ($0.18) | ($1.89) |
Basic earnings (loss) per common share (in dollars per share) | $0.16 | $0.10 | $0.09 | $0.03 | $0.10 | ($0.13) | $0.13 | $0.11 | $0.38 | $0.21 | ($1.33) |
Diluted EPS | |||||||||||
Shares used in diluted earnings per share computations | 62,658 | 62,812 | 63,148 | ||||||||
Continuing operations (in dollars per share) | $0.16 | $0.10 | $0.09 | $0.03 | $0.11 | $0.07 | $0.11 | $0.10 | $0.38 | $0.39 | $0.56 |
Discontinued operations (in dollars per share) | $0 | $0 | $0 | $0 | ($0.01) | ($0.20) | $0.02 | $0.01 | $0 | ($0.18) | ($1.88) |
Diluted earnings (loss) per common share (in dollars per share) | $0.16 | $0.10 | $0.09 | $0.03 | $0.10 | ($0.13) | $0.13 | $0.11 | $0.38 | $0.21 | ($1.32) |
Computation of Shares Used in Earnings Per Share Computations | |||||||||||
Weighted-average common shares outstanding | 62,444 | 62,503 | 62,887 | ||||||||
Weighted-average common equivalent shares - dilutive effect of stock options and awards | 214 | 309 | 261 | ||||||||
Shares used in diluted earnings per share computations | 62,658 | 62,812 | 63,148 |
Earnings_Per_Share_Details_2
Earnings Per Share (Details 2) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted-average anti-dilutive shares have been excluded from the EPS calculations | 4.1 | 4.2 | 4.9 |
Unvested stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted-average anti-dilutive shares have been excluded from the EPS calculations | 0 | 0 | 0.1 |
Comprehensive_Income_Loss_Deta
Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive Income (Loss) | |||||||||||
Net income (loss) | $10,089 | $6,420 | $5,637 | $1,845 | $6,566 | ($8,173) | $8,309 | $6,668 | $23,991 | $13,370 | ($83,353) |
Other comprehensive income (loss): | |||||||||||
Adjustment to pension liability | -28,802 | 36,920 | -9,544 | ||||||||
Tax (expense) benefit | 11,521 | -14,768 | 3,818 | ||||||||
Adjustment to pension liability, net of tax | -17,281 | 22,152 | -5,726 | ||||||||
Foreign currency translation adjustments | -1,830 | -536 | 1,315 | ||||||||
Total other comprehensive income (loss), net of tax | -19,111 | 21,616 | -4,411 | ||||||||
Comprehensive income (loss) | 4,880 | 34,986 | -87,764 | ||||||||
Accumulated other comprehensive income | |||||||||||
Balance at beginning of period | -28,118 | -49,734 | -28,118 | -49,734 | |||||||
Other comprehensive income (loss), net of tax, before reclassifications | -1,830 | -536 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | -17,281 | 22,152 | |||||||||
Net current period other comprehensive income (loss), net of tax | -19,111 | 21,616 | -4,411 | ||||||||
Balance at end of period | -47,229 | -28,118 | -47,229 | -28,118 | -49,734 | ||||||
Accumulated Defined Benefit Plans Adjustment | |||||||||||
Accumulated other comprehensive income | |||||||||||
Balance at beginning of period | -32,279 | -54,431 | -32,279 | -54,431 | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | -17,281 | 22,152 | |||||||||
Net current period other comprehensive income (loss), net of tax | -17,281 | 22,152 | |||||||||
Balance at end of period | -49,560 | -32,279 | -49,560 | -32,279 | |||||||
Accumulated Translation Adjustment | |||||||||||
Accumulated other comprehensive income | |||||||||||
Balance at beginning of period | 4,161 | 4,697 | 4,161 | 4,697 | |||||||
Other comprehensive income (loss), net of tax, before reclassifications | -1,830 | -536 | |||||||||
Net current period other comprehensive income (loss), net of tax | -1,830 | -536 | |||||||||
Balance at end of period | $2,331 | $4,161 | $2,331 | $4,161 |
Selected_Quarterly_Data_Unaudi2
Selected Quarterly Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Data (Unaudited) | |||||||||||
Revenues | $146,518 | $134,121 | $140,310 | $132,727 | $152,179 | $134,973 | $140,105 | $132,352 | $553,676 | $559,609 | $581,091 |
Operating income (loss) | 14,656 | 10,540 | 10,987 | 4,579 | 12,484 | 8,360 | 12,413 | 9,404 | 40,762 | 42,661 | 62,669 |
Income (loss) from continuing operations | 10,089 | 6,420 | 5,637 | 1,845 | 6,734 | 4,451 | 6,936 | 6,320 | 23,991 | 24,441 | 35,396 |
Income (loss) from discontinued operations | -168 | -12,624 | 1,373 | 348 | -11,071 | -118,749 | |||||
Net income (loss) | $10,089 | $6,420 | $5,637 | $1,845 | $6,566 | ($8,173) | $8,309 | $6,668 | $23,991 | $13,370 | ($83,353) |
Basic earnings (loss) per common share | |||||||||||
Continuing operations (in dollars per share) | $0.16 | $0.10 | $0.09 | $0.03 | $0.11 | $0.07 | $0.11 | $0.10 | $0.38 | $0.39 | $0.56 |
Discontinued operations (in dollars per share) | $0 | $0 | $0 | $0 | ($0.01) | ($0.20) | $0.02 | $0.01 | $0 | ($0.18) | ($1.89) |
Basic earnings (loss) per common share (in dollars per share) | $0.16 | $0.10 | $0.09 | $0.03 | $0.10 | ($0.13) | $0.13 | $0.11 | $0.38 | $0.21 | ($1.33) |
Diluted earnings (loss) per common share | |||||||||||
Continuing operations (in dollars per share) | $0.16 | $0.10 | $0.09 | $0.03 | $0.11 | $0.07 | $0.11 | $0.10 | $0.38 | $0.39 | $0.56 |
Discontinued operations (in dollars per share) | $0 | $0 | $0 | $0 | ($0.01) | ($0.20) | $0.02 | $0.01 | $0 | ($0.18) | ($1.88) |
Diluted earnings (loss) per common share (in dollars per share) | $0.16 | $0.10 | $0.09 | $0.03 | $0.10 | ($0.13) | $0.13 | $0.11 | $0.38 | $0.21 | ($1.32) |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | segment | ||||||||||
Business Segments | |||||||||||
Number of operating segments | 2 | ||||||||||
Number of reportable segments | 2 | 2 | |||||||||
Business segments, information about operations | |||||||||||
Intangible asset impairment | $2,750 | ||||||||||
Operating revenues | 146,518 | 134,121 | 140,310 | 132,727 | 152,179 | 134,973 | 140,105 | 132,352 | 553,676 | 559,609 | 581,091 |
Operating income | 14,656 | 10,540 | 10,987 | 4,579 | 12,484 | 8,360 | 12,413 | 9,404 | 40,762 | 42,661 | 62,669 |
Interest expense | 2,834 | 3,103 | 3,573 | ||||||||
Interest income | -275 | -105 | -89 | ||||||||
Other, net | 897 | 46 | 2,993 | ||||||||
Income from continuing operations before income taxes | 37,306 | 39,617 | 56,192 | ||||||||
Depreciation | 14,894 | 15,530 | 15,676 | ||||||||
Other intangible amortization | 26 | 206 | 246 | ||||||||
Capital Expenditure | 11,265 | 15,873 | 13,461 | ||||||||
Total assets | 647,199 | 685,536 | 647,199 | 685,536 | 706,212 | ||||||
Customer Interaction | |||||||||||
Business segments, information about operations | |||||||||||
Intangible asset impairment | 2,800 | ||||||||||
Operating Segments | Customer Interaction | |||||||||||
Business segments, information about operations | |||||||||||
Operating revenues | 499,444 | 503,760 | 528,042 | ||||||||
Operating income | 29,780 | 32,021 | 53,221 | ||||||||
Depreciation | 12,859 | 13,477 | 13,853 | ||||||||
Other intangible amortization | 26 | 206 | 246 | ||||||||
Capital Expenditure | 9,341 | 14,092 | 11,108 | ||||||||
Total assets | 533,073 | 575,159 | 533,073 | 575,159 | 570,784 | ||||||
Operating Segments | Trillium Software | |||||||||||
Business segments, information about operations | |||||||||||
Operating revenues | 54,232 | 55,849 | 53,049 | ||||||||
Operating income | 13,347 | 15,396 | 14,658 | ||||||||
Depreciation | 2,035 | 2,053 | 1,823 | ||||||||
Capital Expenditure | 1,912 | 1,781 | 2,353 | ||||||||
Total assets | 114,126 | 110,377 | 114,126 | 110,377 | 87,890 | ||||||
Corporate, Non-Segment | |||||||||||
Business segments, information about operations | |||||||||||
Operating income | -2,365 | -4,756 | -5,210 | ||||||||
Capital Expenditure | 12 | ||||||||||
Total assets | $47,538 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2014 | |
Discontinued operations | ||||||||
Loss on sale of discontinued operations | $12,355,000 | $2,716,000 | ||||||
Income tax benefit from sale of assets | 9,047,000 | 2,147,000 | ||||||
Summarized operating results for the Shoppers discontinued operations | ||||||||
Loss on sale before income taxes | -12,355,000 | -2,716,000 | ||||||
Total discontinued operations | -168,000 | -12,624,000 | 1,373,000 | 348,000 | -11,071,000 | -118,749,000 | ||
Major components of cash flows for the Shoppers discontinued operations | ||||||||
Gain (Loss) from discontinued operations | -168,000 | -12,624,000 | 1,373,000 | 348,000 | -11,071,000 | -118,749,000 | ||
Loss on sales of discontinued operations, net of income taxes | 12,355,000 | 2,716,000 | ||||||
Net cash provided by (used in) discontinued operations | 15,461,000 | 19,856,000 | ||||||
Florida Shoppers Operations | ||||||||
Discontinued operations | ||||||||
Gross proceeds from sale of assets in form of cash | 2,000,000 | |||||||
Loss on sale of discontinued operations | 2,700,000 | |||||||
Income tax benefit from sale of assets | 2,100,000 | |||||||
Interest rate on promissory note (as a percent) | 2.50% | |||||||
Major components of cash flows for the Shoppers discontinued operations | ||||||||
Loss on sales of discontinued operations, net of income taxes | 2,700,000 | |||||||
California Shoppers Operations | ||||||||
Discontinued operations | ||||||||
Gross proceeds from sale of assets in form of cash | 22,500,000 | |||||||
Loss on sale of discontinued operations | 12,400,000 | |||||||
Income tax benefit from sale of assets | 9,000,000 | |||||||
Transaction costs | 2,600,000 | |||||||
Major components of cash flows for the Shoppers discontinued operations | ||||||||
Loss on sales of discontinued operations, net of income taxes | 12,400,000 | |||||||
Shoppers | ||||||||
Discontinued operations | ||||||||
Loss on sale of discontinued operations | 12,355,000 | 2,716,000 | ||||||
Summarized operating results for the Shoppers discontinued operations | ||||||||
Revenues | 140,834,000 | 222,736,000 | ||||||
Income (loss) from discontinued operations before impairment charges and income taxes | 2,509,000 | 344,000 | ||||||
Impairment of goodwill and other intangible assets before income taxes | -165,336,000 | |||||||
Loss on sale before income taxes | -21,402,000 | -4,863,000 | ||||||
Income tax benefit | 7,822,000 | 51,106,000 | ||||||
Total discontinued operations | -11,071,000 | -118,749,000 | ||||||
Major components of cash flows for the Shoppers discontinued operations | ||||||||
Gain (Loss) from discontinued operations | -11,071,000 | -118,749,000 | ||||||
Impairment of goodwill and other intangible assets | 165,336,000 | |||||||
Loss on sales of discontinued operations, net of income taxes | 12,355,000 | 2,716,000 | ||||||
Deferred Income Taxes | 10,594,000 | -39,234,000 | ||||||
Depreciation and software amortization | 2,592,000 | 5,062,000 | ||||||
Other, net | 2,619,000 | 4,725,000 | ||||||
Net cash provided by (used in) discontinued operations | $17,089,000 | $19,856,000 |