SYKES ENTERPRISES INC, 10-Q filed on 8/7/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2018
Jul. 19, 2018
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q2  
Trading Symbol SYKE  
Entity Registrant Name SYKES ENTERPRISES INC  
Entity Central Index Key 0001010612  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   42,821,212
v3.10.0.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 162,422 $ 343,734
Receivables, net 347,885 341,958
Prepaid expenses 23,516 22,132
Other current assets 19,140 19,743
Total current assets 552,963 727,567
Property and equipment, net 142,920 160,790
Goodwill, net 265,991 269,265
Intangibles, net 139,829 140,277
Deferred charges and other assets 32,698 29,193
Total assets 1,134,401 1,327,092
Current liabilities:    
Accounts payable 22,236 32,133
Accrued employee compensation and benefits 98,557 102,899
Income taxes payable 843 2,606
Deferred revenue and customer liabilities 32,503 34,717
Other accrued expenses and current liabilities 36,765 30,888
Total current liabilities 190,904 203,243
Deferred grants 2,913 3,233
Long-term debt 90,000 275,000
Long-term income tax liabilities 24,471 27,098
Other long-term liabilities 25,250 22,039
Total liabilities 333,538 530,613
Commitments and loss contingency (Note 13)
Shareholders' equity:    
Preferred stock, $0.01 par value per share, 10,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value per share, 200,000 shares authorized; 42,821 and 42,899 shares issued, respectively 428 429
Additional paid-in capital 282,622 282,385
Retained earnings 567,988 546,843
Accumulated other comprehensive income (loss) (47,933) (31,104)
Treasury stock at cost: 122 and 117 shares, respectively (2,242) (2,074)
Total shareholders' equity 800,863 796,479
Total liabilities and shareholders' equity $ 1,134,401 $ 1,327,092
v3.10.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 42,821,000 42,899,000
Treasury stock, shares 122,000 117,000
v3.10.0.1
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income Statement [Abstract]        
Revenues $ 396,785 $ 375,438 $ 811,156 $ 759,452
Operating expenses:        
Direct salaries and related costs 264,924 248,615 539,996 495,751
General and administrative 102,037 92,236 204,477 184,280
Depreciation, net 14,560 13,820 29,396 27,168
Amortization of intangibles 3,629 5,250 7,842 10,481
Impairment of long-lived assets 5,175 4,189 8,701 4,391
Total operating expenses 390,325 364,110 790,412 722,071
Income from operations 6,460 11,328 20,744 37,381
Other income (expense):        
Interest income 175 144 346 299
Interest (expense) (1,149) (1,865) (2,355) (3,564)
Other income (expense), net (537) 793 (382) 1,606
Total other income (expense), net (1,511) (928) (2,391) (1,659)
Income before income taxes 4,949 10,400 18,353 35,722
Income taxes (2,229) 1,555 227 8,165
Net income $ 7,178 $ 8,845 $ 18,126 $ 27,557
Net income per common share:        
Basic $ 0.17 $ 0.21 $ 0.43 $ 0.66
Diluted $ 0.17 $ 0.21 $ 0.43 $ 0.66
Weighted average common shares outstanding:        
Basic 42,125 41,854 42,035 41,756
Diluted 42,160 41,934 42,197 41,919
v3.10.0.1
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Statement of Comprehensive Income [Abstract]        
Net income $ 7,178 $ 8,845 $ 18,126 $ 27,557
Other comprehensive income (loss), net of taxes:        
Foreign currency translation adjustments, net of taxes (13,597) 16,484 (13,306) 20,382
Unrealized gain (loss) on net investment hedges, net of taxes   (2,936)   (3,304)
Unrealized gain (loss) on cash flow hedging instruments, net of taxes (481) (396) (3,374) 136
Unrealized actuarial gain (loss) related to pension liability, net of taxes (46) (16) (129) (39)
Unrealized gain (loss) on postretirement obligation, net of taxes (10) (12) (20) (25)
Other comprehensive income (loss), net of taxes (14,134) 13,124 (16,829) 17,150
Comprehensive income (loss) $ (6,956) $ 21,969 $ 1,297 $ 44,707
v3.10.0.1
Condensed Consolidated Statements of Changes in Shareholders' Equity - 6 months ended Jun. 30, 2018 - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Beginning Balance at Dec. 31, 2017 $ 796,479 $ 429 $ 282,385 $ 546,843 $ (31,104) $ (2,074)
Beginning Balance, shares at Dec. 31, 2017   42,899        
Stock-based compensation expense 3,750   3,750      
Issuance of common stock under equity award plans, net of forfeitures     168     (168)
Issuance of common stock under equity award plans, net of forfeitures, Share   40        
Shares repurchased for tax withholding on equity awards (3,682) $ (1) (3,681)      
Shares repurchased for tax withholding on equity awards, Share   (118)        
Comprehensive income (loss) 1,297     18,126 (16,829)  
Ending Balance at Jun. 30, 2018 800,863 $ 428 $ 282,622 567,988 $ (47,933) $ (2,242)
Ending Balance, shares at Jun. 30, 2018   42,821        
Cumulative effect of accounting change | Accounting Standards Update 2014-09 [Member] $ 3,019     $ 3,019    
v3.10.0.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:    
Net income $ 18,126 $ 27,557
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 29,651 27,423
Amortization of intangibles 7,842 10,481
Amortization of deferred grants (344) (374)
Impairment losses 8,701 4,391
Unrealized foreign currency transaction (gains) losses, net (370) (611)
Stock-based compensation expense 3,750 4,732
Deferred income tax provision (benefit) 1,070 9,785
Unrealized (gains) losses and premiums on financial instruments, net 625 42
Amortization of deferred loan fees 134 134
Imputed interest expense and fair value adjustments to contingent consideration   (633)
Other (90) 144
Changes in assets and liabilities, net of acquisitions:    
Receivables, net (8,370) 9,059
Prepaid expenses (1,611) 78
Other current assets (2,016) (1,855)
Deferred charges and other assets (2,186) (1,008)
Accounts payable (5,499) 2,420
Income taxes receivable / payable (6,526) (14,086)
Accrued employee compensation and benefits (2,349) (1,779)
Other accrued expenses and current liabilities 5,079 (2,916)
Deferred revenue and customer liabilities (155) 2,398
Other long-term liabilities 1,922 (3,813)
Net cash provided by operating activities 47,384 71,569
Cash flows from investing activities:    
Capital expenditures (26,232) (35,859)
Cash paid for business acquisitions, net of cash acquired   (7,500)
Purchase of intangible assets (7,606) (275)
Other 484 25
Net cash (used for) investing activities (33,354) (43,609)
Cash flows from financing activities:    
Payments of long-term debt (190,000)  
Proceeds from issuance of long-term debt 5,000  
Shares repurchased for tax withholding on equity awards (3,682) (3,860)
Payments of contingent consideration related to acquisitions   (4,528)
Other 38 107
Net cash (used for) financing activities (188,644) (8,281)
Effects of exchange rates on cash, cash equivalents and restricted cash (6,748) 15,159
Net increase (decrease) in cash, cash equivalents and restricted cash (181,362) 34,838
Cash, cash equivalents and restricted cash - beginning 344,805 267,594
Cash, cash equivalents and restricted cash - ending 163,443 302,432
Supplemental disclosures of cash flow information:    
Cash paid during period for interest 1,975 3,066
Cash paid during period for income taxes 12,084 17,032
Non-cash transactions:    
Property and equipment additions in accounts payable 2,637 3,742
Unrealized gain (loss) on postretirement obligation, net of taxes in accumulated other comprehensive income (loss) $ (20) (25)
Shares repurchased for tax withholding on equity awards included in current liabilities   $ 119
v3.10.0.1
Overview and Basis of Presentation
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Overview and Basis of Presentation

Note 1. Overview and Basis of Presentation

Business Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a leading provider of multichannel demand generation and global customer engagement services. SYKES provides differentiated full lifecycle customer engagement solutions and services to Global 2000 companies and their end customers primarily within the communications, financial services, technology, transportation and leisure, healthcare, retail and other industries. SYKES primarily provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. SYKES also provides various enterprise support services in the United States that include services for its clients’ internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which includes order processing, payment processing, inventory control, product delivery and product returns handling. The Company has operations in two reportable segments entitled (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs; and (2) EMEA, which includes Europe, the Middle East and Africa.

2017 Tax Reform Act

In December 2017, the President of the United States (“U.S.”) signed into law the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”). In general, the 2017 Tax Reform Act reduces the U.S. federal corporate tax rate from 35% to 21%, effective in 2018. The 2017 Tax Reform Act moves from a worldwide business taxation approach to a participation exemption regime. The 2017 Tax Reform Act also imposes base-erosion prevention measures on non-U.S. earnings of U.S. entities, as well as a one-time mandatory deemed repatriation tax on accumulated non-U.S. earnings which was recorded in the fourth quarter of 2017. The impact of the 2017 Tax Reform Act on the consolidated financial results began with the fourth quarter of 2017, the period of enactment. This impact, along with the transitional taxes discussed in Note 11, Income Taxes, is reflected in the Other segment.

Acquisition

On April 24, 2017, the Company entered into a definitive Asset Purchase Agreement (the “Purchase Agreement”) to acquire certain assets from a Global 2000 telecommunications services provider. The aggregate purchase price of $7.5 million was paid on May 31, 2017, using cash on hand, resulting in $6.0 million of property and equipment and $1.5 million of customer relationship intangibles (the “Telecommunications Asset acquisition”). The Purchase Agreement contains customary representations and warranties, indemnification obligations and covenants. The Telecommunications Asset acquisition was completed to strengthen and create new partnerships for the Company and expand its geographic footprint in North America. The results of the Telecommunications Assets’ operations have been included in the Company’s consolidated financial statements in the Americas segment since its acquisition on May 31, 2017.

The Company accounted for the Telecommunications Asset acquisition in accordance with ASC 805, Business Combinations, whereby the fair value of the purchase price was allocated to the tangible and identifiable intangible assets acquired based on their estimated fair values as of the closing date. The Company completed its analysis of the purchase price allocation during the second quarter of 2017.

Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2018. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission (“SEC”) on March 1, 2018.

Principles of Consolidation The condensed consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. Investments in less than majority-owned subsidiaries in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Subsequent Events Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. On July 9, 2018, the Company entered into and closed a definitive Share Sale Agreement (“Sale Agreement”) to acquire all the outstanding shares of WhistleOut Pty Ltd and WhistleOut Inc. (together, known as “WhistleOut”) for AUD 30.2 million ($22.4 million). See Note 19, Subsequent Event, for further information. There were no other material subsequent events that required recognition or disclosure in the accompanying condensed consolidated financial statements.

Cash, Cash Equivalents and Restricted cash — Cash and cash equivalents consist of cash and highly liquid short-term investments, primarily held in non-interest-bearing investments which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets that sum to the amounts reported in the Condensed Consolidated Statements of Cash Flows (in thousands):

 

    June 30,
2018
    December 31,
2017
    June 30,
2017
    December 31,
2016
 

Cash and cash equivalents

  $ 162,422     $ 343,734     $ 301,451     $ 266,675  

Restricted cash included in “Other current assets”

    153       154       158       160  

Restricted cash included in “Deferred charges and other assets”

    868       917       823       759  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $       163,443     $       344,805     $       302,432     $       267,594  
 

 

 

   

 

 

   

 

 

   

 

 

 

Investments in Equity Method Investees — The Company uses the equity method to account for investments in companies if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee. The Company’s proportionate share of the net income or loss of an equity method investment is included in consolidated net income. Judgment regarding the level of influence over an equity method investment includes considering key factors such as the Company’s ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions.

The Company evaluates an equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing an equity method investment for impairment include the length of time (duration) and the extent (severity) to which the fair value of the equity method investment has been less than cost, the investee’s financial condition and near-term prospects, and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than-temporary is recognized in the period identified. As of June 30, 2018 and December 31, 2017, the Company did not identify any instances where the carrying values of its equity method investments were not recoverable.

In July 2017, the Company made a strategic investment of $10.0 million in XSell Technologies, Inc. (“XSell”) for 32.8% of XSell’s preferred stock. The Company plans to incorporate XSell’s machine learning and artificial intelligence algorithms into its business. The Company believes this will increase the sales performance of its agents to drive revenue for its clients, improve the experience of the Company’s clients’ end customers and enhance brand loyalty, reduce the cost of customer care and leverage analytics and machine learning to source the best agents and improve their performance.

The Company’s net investment in XSell of $9.6 million and $9.8 million was included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, respectively. The Company paid $5.0 million in July 2017 with the remaining $5.0 million included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017. The Company’s proportionate share of XSell’s income (loss) of $(0.1) million and $(0.3) million was included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018, respectively (none in 2017).

Customer-Acquisition Advertising Costs — The Company’s advertising costs are expensed as incurred. Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations for the three months ended June 30, 2018 and 2017 were $12.0 million and $8.6 million, respectively, and $22.0 million and $18.4 million for the six months ended June 30, 2018 and 2017, respectively. Total advertising costs included in “General and administrative” in the accompanying Condensed Consolidated Statements of Operations for the three months ended June 30, 2018 and 2017 were less than $0.1 million and $0.1 million, respectively, and less than $0.1 million and $0.1 million for the six months ended June 30, 2018 and 2017, respectively.

Reclassifications — Certain balances in the prior period have been reclassified to conform to current period presentation.

New Accounting Standards Not Yet Adopted

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”) and subsequent amendments (together, “ASC 842”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840, Leases. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities have the option to either apply the amendments (1) at the beginning of the earliest period presented using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements or (2) at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. There are also certain optional practical expedients that an entity may elect to apply.

The Company’s implementation team has compiled a detailed inventory of leases and a preliminary analysis of the impact to the financial statements. The Company continues to evaluate the critical factors of ASC 842. Based on an assessment of the Company’s business and system requirements, the implementation team has selected a lease accounting software solution to assist the Company in complying with ASC 842. The Company expects the adoption of ASC 842 to result in a material increase in the assets and liabilities on the consolidated balance sheets as a result of recognizing right-of-use assets and lease liabilities for existing operating leases based on the amount of the Company’s current lease commitments. The Company believes that the majority of its leases will maintain their current lease classification under ASC 842. The Company does not expect these amendments to have a material effect on its expense recognition timing or cash flows and, as a result, the Company expects the adoption of ASC 842 will result in an insignificant impact on the Company’s consolidated statements of income and on the consolidated statements of cash flows. The Company is continuing to evaluate the magnitude of the impact and related disclosures, as well as the timing and method of adoption, with respect to the transition method and optional practical expedients. The Company is also continuing to evaluate the full impact of ASC 842, as well as its impacts on its business processes, systems, and internal controls.

 

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedge Activities (“ASU 2017-12”). These amendments help simplify certain aspects of hedge accounting and better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update. The Company does not expect the adoption of ASU 2017-12 to materially impact its financial condition, results of operations, cash flows and disclosures.

Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). These amendments require measurement and recognition of expected versus incurred credit losses for financial assets held. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) and subsequent amendments (together, “ASC 606”). ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective transition method. See Note 2, Revenues, for further details.

Financial Instruments

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). These amendments modify how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception applies to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such, these investments may be measured at cost. These amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). These amendments clarify the presentation of cash receipts and payments in eight specific situations. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments have been applied using a retrospective transition method to each period presented. The adoption of ASU 2016-15 on January 1, 2018 did not have a material impact on the Company’s cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash (A Consensus of the FASB Emerging Issues Task Force (“ASU 2016-18”). These amendments clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, requiring entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments have been applied using a retrospective transition method to each period presented. The inclusion of restricted cash increased the beginning balance of cash in the Condensed Consolidated Statements of Cash Flows by $1.1 million for the six months ended June 30, 2018 and increased the beginning and ending balances of cash by $0.9 million and $1.0 million, respectively, for the six months ended June 30, 2017. Other than the change in presentation within the accompanying Condensed Consolidated Statements of Cash Flows, the retrospective adoption of ASU 2016-18 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Income Taxes

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”). These amendments require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The adoption of ASU 2016-16 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements and no cumulative-effect adjustment to retained earnings was required.

In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the 2017 Tax Reform Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. The Company evaluated the accounting treatment options related to the GILTI provisions and elected to treat any potential GILTI inclusions as a current period cost. The election did not have a material impact on the Company’s consolidated financial statements.

In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). These amendments add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). SAB 118, issued in December 2017, directs taxpayers to consider the implications of the 2017 Tax Reform Act as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. As described in Note 11, Income Taxes, and in accordance with SAB 118, the Company recorded amounts that were considered provisional.

Other Comprehensive Income

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”). These amendments allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Reform Act. These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendment in this update is permitted, including adoption in any interim period. These amendments can be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate tax rate in the 2017 Tax Reform Act is recognized. The early adoption of ASU 2018-02 on June 30, 2018 had no impact on the Company’s consolidated financial statements or disclosures.

Business Combinations

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business (“ASU 2017-01”). These amendments clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. These amendments were applied prospectively. The adoption of ASU 2017-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Retirement Benefits

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). These amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component outside of a subtotal of income from operations. If a separate line item is not used, the line items used in the income statement to present other components of net benefit cost must be disclosed. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. These amendments were applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The amendments allow a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements.

The Company adopted the income statement presentation aspects of ASU 2017-07 on a retrospective basis effective January 1, 2018. The following is a reconciliation of the effect of the reclassification of the interest cost and amortization of actuarial gain (loss) from operating expenses to other income (expense) in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017 (in thousands):

 

    As Previously
Reported
    Adjustments
Due to the
Adoption of
ASU 2017-07
      As Revised    

Three Months Ended June 30, 2017:

     

Direct salaries and related costs

  $ 248,643     $ (28   $ 248,615  

General and administrative

    92,246       (10     92,236  

Income from operations

    11,290       38       11,328  

Other income (expense), net

    831       (38     793  

Six Months Ended June 30, 2017:

     

Direct salaries and related costs

  $ 495,808     $ (57   $ 495,751  

General and administrative

    184,300       (20     184,280  

Income from operations

    37,304       77       37,381  

Other income (expense), net

    1,683       (77     1,606  
v3.10.0.1
Revenues
6 Months Ended
Jun. 30, 2018
Revenue from Contract with Customer [Abstract]  
Revenues

Note 2. Revenues

Adoption of ASC 606, Revenue from Contracts with Customers

On January 1, 2018, the Company adopted ASC 606, which includes ASU 2014-09 and all related amendments, using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting for revenues under ASC 605, Revenue Recognition (“ASC 605”).

The Company recorded an increase to opening retained earnings of $3.0 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606. The impact, all in the Americas segment, primarily related to the change in timing of revenue recognition associated with certain customer contracts that provide fees upon renewal, as well as changes in estimating variable consideration with respect to penalties and holdback provisions for failure to meet specified minimum service levels and other performance-based contingencies. Revenues recognized under ASC 606 are expected to be slightly higher during 2018 than revenues would have been under ASC 605. This is primarily attributable to the change in the timing of revenue recognition, as discussed above. The impact on revenues recognized for the three and six months ended June 30, 2018 is reported below.

 

The cumulative effect of the adjustments made to the Company’s Condensed Consolidated Balance Sheet as of December 31, 2017 for the line items impacted by the adoption of ASC 606 was as follows (in thousands):

 

    December 31,
2017
        Adjustments    
Due to the
Adoption of
ASC 606
    January 1, 2018  

Receivables, net

  $       341,958     $ 825     $ 342,783  

Deferred charges and other assets

    29,193       2,045       31,238  

Income taxes payable

    2,606       697       3,303  

Deferred revenue and customer liabilities

    34,717       (1,048     33,669  

Other long-term liabilities

    22,039       202       22,241  

Retained earnings

    546,843       3,019       549,862  

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Condensed Consolidated Balance Sheet as of June 30, 2018 were as follows (in thousands):

 

      As Reported       Balances
Without the
  Impact of the  
ASC 606

Adoption
    Effect of
Adoption
Increase
  (Decrease)  
 

June 30, 2018:

     

Receivables, net

  $ 347,885     $ 345,932     $ 1,953  

Deferred charges and other assets

    32,698       28,280       4,418  

Income taxes payable

    843       (733     1,576  

Deferred revenue and customer liabilities

    32,503       34,585       (2,082

Other long-term liabilities

    25,250       25,524       (274

Retained earnings

    567,988       560,837       7,151  

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Condensed Consolidated Statement of Operations for the three months ended June 30, 2018 were as follows, along with the impact per share (in thousands, except per share data):

 

    As Reported     Balances
Without the
Impact of
  the ASC 606  
Adoption
    Effect of
  Adoption  
Increase
(Decrease)
 

Three Months Ended June 30, 2018:

     

Revenues

  $ 396,785     $ 394,483     $ 2,302  

Income from operations

    6,460       4,158       2,302  

Income before income taxes

    4,949       2,647       2,302  

Income taxes

    (2,229     (2,804     575  

Net income

    7,178       5,451       1,727  

Net income per common share:

     

Basic

  $ 0.17     $ 0.13     $ 0.04  
 

 

 

   

 

 

   

 

 

 

Diluted

  $ 0.17     $ 0.13     $ 0.04  
 

 

 

   

 

 

   

 

 

 

 

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Condensed Consolidated Statement of Operations for the six months ended June 30, 2018 were as follows, along with the impact per share (in thousands, except per share data):

 

    As Reported     Balances
Without the
Impact of
  the ASC 606  
Adoption
    Effect of
  Adoption  
Increase
(Decrease)
 

Six Months Ended June 30, 2018:

     

Revenues

  $ 811,156     $ 805,759     $ 5,397  

Income from operations

    20,744       15,347       5,397  

Income before income taxes

    18,353       12,956       5,397  

Income taxes

    227       (1,038     1,265  

Net income

    18,126       13,994       4,132  

Net income per common share:

     

Basic

  $ 0.43     $ 0.33     $ 0.10  
 

 

 

   

 

 

   

 

 

 

Diluted

  $             0.43     $             0.33     $             0.10  
 

 

 

   

 

 

   

 

 

 

The Company’s net cash provided by operating activities for the six months ended June 30, 2018 did not change due to the adoption of ASC 606.

Practical Expedients

The Company utilized the practical expedient that allows for the application of ASC 606 to a portfolio of contracts (or performance obligations) with similar characteristics if the entity reasonably expects that the effects on the financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio.

Costs of Obtaining Customer Contracts

ASC 606 requires an entity to recognize as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (e.g., a sales commission). Because the Company’s sales commissions are not directly incremental to obtaining customer contracts, they are expensed as incurred.

Recognition of Revenues Accounting Policy

The Company’s “Recognition of Revenues” accounting policy under ASC 606 is outlined below. For the Company’s accounting policy under ASC 605, see Note 1, Overview and Summary of Significant Accounting Policies, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

The Company recognizes revenues in accordance with ASC 606, whereby revenues are recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services.

Customer Engagement Solutions and Services

Under ASC 606, the Company accounts for a contract with a client when it has approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. The Company’s customer engagement solutions and services are classified as stand-ready performance obligations. Because the Company’s customers simultaneously receive and consume the benefits of its services as they are delivered, the performance obligations are satisfied over time. The Company recognizes revenues over time using output methods such as a per minute, per hour, per call, per transaction or per time and materials basis. These output methods faithfully depict the satisfaction of the Company’s obligation to deliver the services as requested and represent a direct measurement of value to the customer. The Company’s contracts have a single performance obligation as the promise to transfer the customer solutions and services are not separately identifiable from other promises in the contract, and therefore not distinct.

 

The stated term of the Company’s contracts with customers range from 30 days to six years. The majority of these contracts include termination for convenience or without cause provisions allowing either party to cancel the contract without substantial cost or penalty within a defined notification period (“termination rights”), typically varying periods up to 180 days. Because of the termination rights, only the noncancelable portion qualifies as a legally enforceable contract under Step 1, Identify the Contract with a Customer, of ASC 606 (“Step 1”) and is accounted for as such, even if the customer is unlikely to exercise its termination right. Furthermore, the amounts excluded from assessment under Step 1 are, in effect, optional customer purchases of additional services.

If the termination right is only provided to the customer, the unsatisfied performance obligations will be evaluated as a customer option. The Company typically does not include options that would result in a material right. If options to purchase additional services or options to renew are included in customer contracts, the Company evaluates the option in order to determine if the arrangement includes promises that may represent a material right and needs to be accounted for as a performance obligation in the contract with the customer.

The Company’s primary billing terms are that payment is due upon receipt of the invoice, payable usually within 30 or 60 days. Invoices are generally issued on a monthly basis as control transfers and/or as services are rendered. Revenue recognition is limited to the established transaction price, the amount to which the Company expects to be entitled to under the contract, including the amount of expected fees for those contracts with renewal provisions, and the amount that is not contingent upon delivery of any future product or service or meeting other specified performance obligations. The transaction price, once determined, is allocated to the single performance obligation on a contract by contract basis.

The Company’s contracts include penalties and holdbacks provisions for failure to meet specified minimum service levels and other performance-based contingencies, as well as the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred. Certain customers also receive cash discounts for early payment. These provisions are accounted for as variable consideration and are estimated using historical service and pricing trends, the individual contract provisions, and the Company’s best judgment at the time. None of these variable consideration components are subject to constraint due to the short time period to resolution, the Company’s extensive history with similar transactions, and the limited number of possible outcomes and third-party influence. The portion of the consideration received under the contract that the Company expects to ultimately refund to the customer is excluded from the transaction price and is recorded as a refund liability.

Other Revenues

In the Americas, the Company provides a range of enterprise support services including technical staffing services and outsourced corporate help desk services, primarily in the U.S. Revenues for enterprise support services are recognized over time using output methods such as number of positions filled similar to the Company’s outsourced customer engagement services and solutions.

In EMEA, the Company offers fulfillment services that are integrated with its customer care and technical support services. The Company’s fulfillment solutions include order processing, payment processing, inventory control, product delivery and product returns handling. Sales are recognized upon shipment to the customer and satisfaction of all obligations.

The Company also has miscellaneous other revenues in the Other segment.

In total, other revenues are immaterial, representing 0.6% and 0.5% of the Company’s consolidated total revenues for the three months ended June 30, 2018 and 2017, respectively, and 0.6% and 0.6% of the Company’s consolidated total revenues for the six months ended June 30, 2018 and 2017, respectively.

Disaggregated Revenues

The Company disaggregates its revenues from contracts with customers by service type and geographic location (see Note 16, Segments and Geographic Information), for each of its reportable segments, as the Company believes it best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by economic factors.

 

The following table represents revenues from contracts with customers disaggregated by service type for the three and six months ended June 30, 2018 and 2017, by the reportable segment for each category (in thousands):

 

       Three Months Ended June 30,          Six Months Ended June 30,    
     2018      2017      2018      2017  

Americas:

           

Customer engagement solutions and services

   $ 326,766      $ 314,603      $ 667,188      $ 635,265  

Other revenues

     275        268        574        537  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Americas

     327,041        314,871        667,762        635,802  

EMEA:

           

Customer engagement solutions and services

     67,772        58,836        139,443        119,905  

Other revenues

     1,948        1,704        3,904        3,702  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total EMEA

     69,720        60,540        143,347        123,607  

Other:

           

Other revenues

     24        27        47        43  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Other

     24        27        47        43  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $       396,785      $       375,438      $       811,156      $       759,452  
  

 

 

    

 

 

    

 

 

    

 

 

 

Trade Accounts Receivable

The Company’s trade accounts receivable, net, consists of the following (in thousands):

 

       June 30, 2018         January 1, 2018   

Trade accounts receivable, net, current (1)

   $ 334,818      $ 332,014  

Trade accounts receivable, net, noncurrent (2)

     4,614        2,078  
  

 

 

    

 

 

 
   $ 339,432      $ 334,092  
  

 

 

    

 

 

 

(1) Included in “Receivables, net” in the accompanying Condensed Consolidated Balance Sheets. The January 1, 2018 balance includes the $0.8 million adjustment recorded upon adoption of ASC 606.

(2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets. The January 1, 2018 balance includes a $2.1 million adjustment recorded upon adoption of ASC 606.

The Company’s noncurrent trade accounts receivable result from contracts with customers that include renewal provisions that take effect subsequent to the satisfaction of the associated performance obligations. Payment is expected upon renewal, which occurs in bi-annual and annual increments over the associated expected contract term, the majority of which range from two to five years.

Deferred Revenue and Customer Liabilities

Deferred revenue and customer liabilities consists of the following (in thousands):

 

       June 30, 2018         January 1, 2018   

Deferred revenue

   $ 4,900      $ 4,598  

Customer arrangements with termination rights

     18,498        21,755  

Estimated refund liabilities (1)

     9,105        7,316  
  

 

 

    

 

 

 
   $ 32,503      $ 33,669  
  

 

 

    

 

 

 

(1) The January 1, 2018 balance includes the $1.0 million adjustment recorded upon adoption of ASC 606.

Deferred Revenue

The Company receives up-front fees in connection with certain contracts. In accordance with ASC 606, the up-front fees are recorded as a contract liability only to the extent a legally enforceable contract exists, typically varying periods up to 180 days. Accordingly, the up-front fees allocated to the notification period are recorded as deferred revenue, while the fees that extend beyond the notification period are classified as a customer arrangement with termination rights.

 

Revenues of $0.3 million and $4.2 million were recognized during the three and six months ended June 30, 2018, respectively, from amounts included in deferred revenue as of January 1, 2018.

The Company expects to recognize its deferred revenue as of June 30, 2018 over the next 180 days.

Customer Liabilities – Customer Arrangements with Termination Rights

Customer arrangements with termination rights represent the amount of up-front fees received for unsatisfied performance obligations for periods that extend beyond the legally enforceable contract period. All customer arrangements with termination rights are classified as current as the customer can terminate the contracts and demand pro-rata refunds of the up-front fees over varying periods, typically up to 180 days. The Company expects to recognize the majority of the customer arrangements with termination rights into revenue as the Company has not historically experienced a high rate of contract terminations.

Customer Liabilities – Refund Liabilities

Refund liabilities represent consideration received under the contract that the Company expects to ultimately refund to the customer and primarily relates to estimated penalties, holdbacks and chargebacks. Penalties and holdbacks result from the failure to meet specified minimum service levels in certain contracts and other performance-based contingencies. Chargebacks reflect the right of certain of the Company’s clients to chargeback accounts that do not meet certain requirements for specified periods after a sale has occurred.

Refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.

v3.10.0.1
Costs Associated with Exit or Disposal Activities
6 Months Ended
Jun. 30, 2018
Restructuring and Related Activities [Abstract]  
Costs Associated with Exit or Disposal Activities

Note 3. Costs Associated with Exit or Disposal Activities

During the second quarter of 2018, the Company initiated a restructuring plan to streamline excess capacity through targeted seat reductions (the “Americas 2018 Exit Plan”) in an on-going effort to manage and optimize capacity utilization. The Americas 2018 Exit Plan includes, but is not limited to, closing customer contact management centers and consolidating leased space in various locations in the U.S. and Canada. The Company anticipates finalizing the remainder of the site closures under the Americas 2018 Exit Plan by December 2018.

The Company’s actions will result in a reduction in seats as well as anticipated general and administrative cost savings, including lower depreciation expense, resulting from the 2018 site closures.

The cumulative costs expected and incurred as a result of the Americas 2018 Exit Plan are outlined below as of June 30, 2018 (in thousands):

 

     Costs Expected
To Be Incurred
     Cumulative
 Costs Incurred 
To Date
     Expected
    Remaining    
Costs
 

Lease obligations and facility exit costs (1)

   $ 6,692      $ 3,028      $ 3,664  

Severance and related costs (2)

     3,701        402        3,299  

Severance and related costs (1)

     488        219        269  

Non-cash impairment charges

     5,175        5,175        -  
  

 

 

    

 

 

    

 

 

 
   $ 16,056      $ 8,824      $ 7,232  
  

 

 

    

 

 

    

 

 

 

(1) Relates to “General and administrative” costs.

(2) Relates to “Direct salaries and related costs.”

The expected remaining severance charges are anticipated to be incurred during the third quarter of 2018. The expected remaining lease obligations and facility exit costs are anticipated to be incurred primarily during the third quarter of 2018 with the balance during the fourth quarter of 2018.

The following table summarizes the accrued liability and related charges for the three and six months ended June 30, 2018 (none in 2017) (in thousands):

 

     Lease Obligations
and Facility
Exit Costs
     Severance and
Related Costs
     Total  

Balance at the beginning of the period

   $ -      $ -      $ -  

Charges included in “Direct salaries and related costs”

     -        402        402  

Charges included in “General and administrative”

     3,028        219        3,247  

Cash payments

     (429      (131      (560

Balance sheet reclassifications (1)

     216        -        216  
  

 

 

    

 

 

    

 

 

 

Balance at the end of the period

   $                 2,815      $                    490      $                 3,305  
  

 

 

    

 

 

    

 

 

 

(1) Consists of the reclassification of deferred rent balances for locations subject to closure to the restructuring liability.

Restructuring Liability Classification

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with the Americas 2018 Exit Plan as of June 30, 2018 (none in 2017) (in thousands):

 

     Americas 2018
Exit Plan
 

Short-term accrued restructuring liability (1)

   $                             2,726  

Short-term accrued restructuring liability (2)

     490  

Long-term accrued restructuring liability (3)

     89  
  

 

 

 

Ending accrual at June 30, 2018

   $ 3,305  
  

 

 

 

(1) Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheet.

(2) Included in “Accrued employee compensation and benefits” in the accompanying Condensed Consolidated Balance Sheet.

(3) Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheet.

The long-term accrued restructuring liability relates to future rent obligations to be paid through the remainder of the lease terms, the last of which ends in September 2019.

v3.10.0.1
Fair Value
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair Value

Note 4. Fair Value

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

 

   

Level 1 Quoted prices for identical instruments in active markets.

   

Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

   

Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

 

   

Cash, short-term and other investments, investments held in rabbi trust and accounts payable The carrying values for cash, short-term and other investments, investments held in rabbi trust and accounts payable approximate their fair values.

   

Foreign currency forward contracts and options Foreign currency forward contracts and options, including premiums paid on options, are recognized at fair value based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk.

   

Embedded derivatives Embedded derivatives within certain hybrid lease agreements are bifurcated from the host contract and recognized at fair value based on pricing models or formulas using significant unobservable inputs, including adjustments for credit risk.

   

Long-term debt The carrying value of long-term debt approximates its estimated fair value as the debt bears interest based on variable market rates, as outlined in the debt agreement.

   

Contingent consideration The contingent consideration is recognized at fair value based on the discounted cash flow method.

Fair Value Measurements ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820-10-20 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

ASC 825 Financial Instruments (“ASC 825”) permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to use the fair value option permitted under ASC 825 for any of its financial assets and financial liabilities that are not already recorded at fair value.

Determination of Fair Value The Company generally uses quoted market prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access to determine fair value and classifies such items in Level 1. Fair values determined by Level 2 inputs utilize inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, and inputs other than quoted market prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency exchange rates, etc. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable.

 

The following section describes the valuation methodologies used by the Company to measure assets and liabilities at fair value on a recurring basis, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Foreign Currency Forward Contracts and Options The Company enters into foreign currency forward contracts and options over the counter and values such contracts using quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk. The key inputs include forward or option foreign currency exchange rates and interest rates. These items are classified in Level 2 of the fair value hierarchy.

Embedded Derivatives The Company uses significant unobservable inputs to determine the fair value of embedded derivatives, which are classified in Level 3 of the fair value hierarchy. These unobservable inputs include expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates, the results of which are adjusted for credit risk. These items are classified in Level 3 of the fair value hierarchy. See Note 6, Financial Derivatives, for further information.

Investments Held in Rabbi Trust The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 7, Investments Held in Rabbi Trust, and Note 15, Stock-Based Compensation.

Contingent Consideration The Company uses significant unobservable inputs to determine the fair value of contingent consideration, which is classified in Level 3 of the fair value hierarchy. The contingent consideration recorded related to the acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”) and liabilities assumed as part of the Clear Link Holdings, LLC (“Clearlink”) acquisition was recognized at fair value using a discounted cash flow methodology and a discount rate of approximately 14.0% and 10.0%, respectively.

The Company’s assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following as of June 30, 2018 (in thousands):

 

            Fair Value Measurements Using:  
     Balance at      Quoted
Prices in
Active
Markets
For
Identical
Assets
     Significant
Other
Observable
Inputs
     Significant
Unobservable
Inputs
 
     June 30,
2018
     Level 1      Level 2      Level 3  

Assets:

           

Foreign currency forward and option contracts(1)

   $ 1,354      $ -      $ 1,354      $ -  

Equity investments held in rabbi trust for the Deferred Compensation Plan(2)

     8,557        8,557        -        -  

Debt investments held in rabbi trust for the Deferred Compensation  Plan(2)

     3,307        3,307        -        -  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $           13,218      $         11,864      $ 1,354      $ -  
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Foreign currency forward and option contracts(1)

   $ 1,903      $ -      $ 1,903      $ -  

Embedded derivatives(1)

     598        -        -        598  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,501      $ -      $             1,903      $                598  
  

 

 

    

 

 

    

 

 

    

 

 

 

The Company’s assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following as of December 31, 2017 (in thousands):

 

            Fair Value Measurements Using:  
     Balance at      Quoted
Prices in
Active Markets
For Identical
Assets
     Significant
Other
Observable
Inputs
     Significant
Unobservable
Inputs
 
     December 31,
2017
     Level 1      Level 2      Level 3  

Assets:

           

Foreign currency forward and option contracts(1)

   $ 3,848      $ -      $ 3,848      $ -  

Embedded derivatives(1)

     52        -        -        52  

Equity investments held in rabbi trust for the Deferred Compensation Plan(2)

     8,094        8,094        -        -  

Debt investments held in rabbi trust for the Deferred Compensation Plan(2)

     3,533        3,533        -        -  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $           15,527      $         11,627      $             3,848      $ 52  
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Foreign currency forward and option contracts(1)

   $ 256      $ -      $ 256      $ -  

Embedded derivatives(1)

     579        -        -        579  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 835      $ -      $ 256      $                579  
  

 

 

    

 

 

    

 

 

    

 

 

 

(1) See Note 6, Financial Derivatives, for the classification in the accompanying Condensed Consolidated Balance Sheets.

(2) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. See Note 7, Investments Held in Rabbi Trust.

Reconciliations of Fair Value Measurements Categorized within Level 3 of the Fair Value Hierarchy

Embedded Derivatives in Lease Agreements

A rollforward of the net asset (liability) activity in the Company’s fair value of the embedded derivatives is as follows (in thousands):

 

         Three Months Ended June 30,             Six Months Ended June 30,      
     2018     2017     2018     2017  

Balance at the beginning of the period

   $ (409   $ (375   $ (527   $ (555

Gains (losses) recognized in “Other income (expense), net”

     (252     176       (165     315  

Settlements

     38       25       80       70  

Effect of foreign currency

     25       3       14       (1
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

   $ (598   $ (171   $ (598   $ (171
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in unrealized gains (losses) included in “Other income (expense), net” related to embedded derivatives held at the end of the period

   $ (253   $ 48     $ (171   $ 183  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Contingent Consideration

A rollforward of the activity in the Company’s fair value of the contingent consideration (liability) is as follows (none in 2018) (in thousands):

 

     Three Months
Ended June 30,
2017
     Six Months
Ended June 30,
2017
 

Balance at the beginning of the period

   $ (5,633    $ (6,100

Imputed interest

     (34      (68

Fair value gain (loss) adjustments (1)

     268        701  

Settlements

     4,402        4,528  

Effect of foreign currency

     (130      (188
  

 

 

    

 

 

 

Balance at the end of the period

   $ (1,127    $ (1,127
  

 

 

    

 

 

 

Change in unrealized gains (losses) included in “General and administrative” related to contingent consideration outstanding at the end of the period

   $ 268      $ 268  
  

 

 

    

 

 

 

(1) Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

The Company recorded a fair value gain of $0.3 million and $0.7 million in “General and administrative” during the three and six months ended June 30, 2017, respectively, related to the Clearlink contingent consideration. All outstanding Clearlink contingent consideration liabilities remaining as of June 30, 2017 were paid prior to December 31, 2017.

The Company paid $4.4 million in May 2017 to settle the outstanding Qelp contingent consideration obligation.

The Company accreted interest expense each period using the effective interest method until the contingent consideration reached the estimated future value. Interest expense related to the contingent consideration was included in “Interest (expense)” in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017.

Non-Recurring Fair Value

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs, including goodwill, other intangible assets, other long-lived assets and equity method investments. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if these assets were determined to be impaired. The adjusted carrying values for assets measured at fair value on a nonrecurring basis (no liabilities) subject to the requirements of ASC 820 were not material at June 30, 2018 and December 31, 2017.

The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands):

 

     Total Impairment (Loss)  
       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

Americas:

           

Property and equipment, net

   $ (5,175)      $ (4,189)      $ (8,701)      $ (4,391)  
  

 

 

    

 

 

    

 

 

    

 

 

 

In connection with the closure of certain under-utilized customer contact management centers in the U.S. and Canada, the Company recorded impairment charges of $5.2 million and $8.7 million related to leasehold improvements, equipment, furniture and fixtures which were not recoverable during the three and six months ended June 30, 2018, respectively. See Note 3, Costs Associated with Exit or Disposal Activities, for further information.

In connection with the closure of an under-utilized customer contact management center in the U.S., the Company recorded an impairment charge of $4.2 million during the three and six months ended June 30, 2017 related to leasehold improvements which were not recoverable and equipment, furniture and fixtures that could not be redeployed to other locations.

The Company recorded an impairment charge of $0.2 million related to the write-down of a vacant and unused parcel of land in the U.S. to its estimated fair value during the six months ended June 30, 2017.

v3.10.0.1
Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

Intangible Assets

The following table presents the Company’s purchased intangible assets as of June 30, 2018 (in thousands):

 

     Gross
 Intangibles 
     Accumulated
Amortization
    Net
 Intangibles 
     Weighted
Average
Amortization
Period (years)
 

Intangible assets subject to amortization:

          

Customer relationships

   $ 169,749      $ (100,859   $ 68,890        10  

Trade names and trademarks

     14,135        (9,651     4,484        7  

Non-compete agreements

     1,820        (1,356     464        3  

Content library

     526        (526     -        2  

Proprietary software

     1,040        (655     385        4  

Intangible assets not subject to amortization:

          

Domain names

     65,606        -       65,606        N/A  
  

 

 

    

 

 

   

 

 

    
   $ 252,876      $ (113,047)     $ 139,829        5  
  

 

 

    

 

 

   

 

 

    

The following table presents the Company’s purchased intangible assets as of December 31, 2017 (in thousands):

 

     Gross
Intangibles
     Accumulated
Amortization
    Net
 Intangibles 
     Weighted
Average
Amortization
Period (years)
 

Intangible assets subject to amortization:

          

Customer relationships

   $ 170,853      $ (95,175   $ 75,678        10  

Trade names and trademarks

     14,138        (8,797     5,341        7  

Non-compete agreements

     1,820        (1,052     768        3  

Content library

     542        (542     -        2  

Proprietary software

     1,040        (585     455        4  

Intangible assets not subject to amortization:

          

Domain names

     58,035        -       58,035        N/A  
  

 

 

    

 

 

   

 

 

    
   $ 246,428      $ (106,151)     $ 140,277        6  
  

 

 

    

 

 

   

 

 

    

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2018 is as follows (in thousands):

 

Years Ending December 31,

     Amount    

2018 (remaining six months)

     7,230  

2019

     14,022  

2020

     11,348  

2021

     6,799  

2022

     5,714  

2023

     4,882  

2024 and thereafter

     24,228  

Goodwill

Changes in goodwill for the six months ended June 30, 2018 consist of the following (in thousands):

 

       January 1,  
2018
       Acquisition        Effect of
Foreign
  Currency  
        June 30,    
2018
 

Americas

   $ 258,496      $ -      $ (2,872   $ 255,624  

EMEA

     10,769        -        (402     10,367  
  

 

 

    

 

 

    

 

 

   

 

 

 
   $ 269,265      $ -      $       (3,274   $       265,991  
  

 

 

    

 

 

    

 

 

   

 

 

 

 

Changes in goodwill for the year ended December 31, 2017 consist of the following (in thousands):

 

     January 1,
2017
     Acquisition      Effect of
Foreign
Currency
     December 31,
2017
 

Americas

   $ 255,842      $ 390      $ 2,264      $ 258,496  

EMEA

     9,562        -        1,207        10,769  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $     265,404      $           390      $         3,471      $     269,265  
  

 

 

    

 

 

    

 

 

    

 

 

 

The Company performs its annual goodwill impairment test during the third quarter, or more frequently if indicators of impairment exist.

For the annual goodwill impairment test, the Company elected to forgo the option to first assess qualitative factors and performed its annual quantitative goodwill impairment test as of July 31, 2017. Under ASC 350, the carrying value of assets is calculated at the reporting unit level. The quantitative assessment of goodwill includes comparing a reporting unit’s calculated fair value to its carrying value. The calculation of fair value requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth, the useful life over which cash flows will occur and determination of the Company’s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. If the fair value of the reporting unit is less than its carrying value, goodwill is considered impaired and an impairment loss is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

The process of evaluating the fair value of the reporting units is highly subjective and requires significant judgment and estimates as the reporting units operate in a number of markets and geographical regions. The Company considered the income and market approaches to determine its best estimates of fair value, which incorporated the following significant assumptions:

 

   

Revenue projections, including revenue growth during the forecast periods;

   

EBITDA margin projections over the forecast periods;

   

Estimated income tax rates;

   

Estimated capital expenditures; and

   

Discount rates based on various inputs, including the risks associated with the specific reporting units as well as their revenue growth and EBITDA margin assumptions.

As of July 31, 2017, the Company concluded that goodwill was not impaired for all six of its reporting units with goodwill, based on generally accepted valuation techniques and the significant assumptions outlined above. While the fair values of four of the six reporting units were substantially in excess of their carrying value, the Qelp and Clearlink reporting units’ fair value exceeded the respective carrying value, although not substantially.

The Qelp and Clearlink reporting units are at risk of future impairment if projected operating results are not met or other inputs into the fair value measurement change. However, as of June 30, 2018, the Company believes there were no indicators of impairment related to Qelp’s $10.4 million of goodwill or Clearlink’s $71.0 million of goodwill.

 

v3.10.0.1
Financial Derivatives
6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Derivatives

Note 6. Financial Derivatives

Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815 Derivatives and Hedging (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These contracts are entered into to hedge the exposure to variability in the cash flows of a specific asset or liability, or of a forecasted transaction that is attributable to changes in exchange rates.

The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Condensed Consolidated Balance Sheets are as follows (in thousands):

 

         June 30, 2018          December 31, 2017  

Deferred gains (losses) in AOCI

   $ (999    $ 2,550  

Tax on deferred gains (losses) in AOCI

                     96        (79
  

 

 

    

 

 

 

Deferred gains (losses) in AOCI, net of taxes

   $ (903    $             2,471  
  

 

 

    

 

 

 

Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months

   $ (882   
  

 

 

    

Deferred gains (losses) and other future reclassifications from AOCI will fluctuate with movements in the underlying market price of the forward contracts and options.

Non-Designated Hedges

Foreign Currency Forward Contracts – The Company also periodically enters into foreign currency hedge contracts that are not designated as hedges as defined under ASC 815. The purpose of these derivative instruments is to protect the Company’s interests against adverse foreign currency moves relating primarily to intercompany receivables and payables, and other assets and liabilities that are denominated in currencies other than the Company’s subsidiaries’ functional currencies. These contracts generally do not exceed 180 days in duration.

Embedded Derivatives – The Company enters into certain lease agreements which require payments not denominated in the functional currency of any substantial party to the agreements. The foreign currency component of these contracts meets the criteria under ASC 815 as embedded derivatives. The Company has determined that the embedded derivatives are not clearly and closely related to the economic characteristics and risks of the host contracts (lease agreements), and separate, stand-alone instruments with the same terms as the embedded derivative instruments would otherwise qualify as derivative instruments, thereby requiring separation from the lease agreements and recognition at fair value. Such instruments do not qualify for hedge accounting under ASC 815.

The Company had the following outstanding foreign currency forward contracts and options, and embedded derivatives (in thousands):

 

     June 30, 2018      December 31, 2017  
Contract Type   

Notional

Amount in
USD

     Settle
Through
Date
     Notional
Amount
in USD
     Settle
Through
Date
 

Cash flow hedges:

           

Options:

           

US Dollars/Philippine Pesos

   $         61,750        September 2019        $         78,000        December 2018    

Forwards:

           

US Dollars/Philippine Pesos

     53,400        September 2019        3,000        June 2018  

US Dollars/Costa Rican Colones

     82,500        August 2019        70,000        March 2019  

Euros/Hungarian Forints

     1,726        December 2018        3,554        December 2018  

Euros/Romanian Leis

     6,894        December 2018        13,977        December 2018  

Non-designated hedges:

           

Forwards

     6,153        September 2018        9,253        March 2018  

Embedded derivatives

     12,676        April 2030        13,519        April 2030  

Master netting agreements exist with each respective counterparty to reduce credit risk by permitting net settlement of derivative positions. In the event of default by the Company or one of its counterparties, these agreements include a set-off clause that provides the non-defaulting party the right to net settle all derivative transactions, regardless of the currency and settlement date. The maximum amount of loss due to credit risk that, based on gross fair value, the Company would incur if parties to the derivative transactions that make up the concentration failed to perform according to the terms of the contracts was $1.4 million and $3.8 million as of June 30, 2018 and December 31, 2017, respectively. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions are asset positions of $0.9 million and $3.6 million as of June 30, 2018 and December 31, 2017, respectively, and liability positions of $1.4 million and $0 as of June 30, 2018 and December 31, 2017, respectively.

Although legally enforceable master netting arrangements exist between the Company and each counterparty, the Company has elected to present the derivative assets and derivative liabilities on a gross basis in the accompanying Condensed Consolidated Balance Sheets. Additionally, the Company is not required to pledge, nor is it entitled to receive, cash collateral related to these derivative transactions.

The following tables present the fair value of the Company’s derivative instruments included in the accompanying Condensed Consolidated Balance Sheets (in thousands):

 

     Derivative Assets  
     June 30, 2018      December 31, 2017  

Derivatives designated as cash flow hedging instruments under ASC 815:

     

Foreign currency forward and option contracts (1)

   $ 1,343      $ 3,604  

Foreign currency forward and option contracts (2)

     11        -  
  

 

 

    

 

 

 
     1,354        3,604  

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts (1)

     -        244  

Embedded derivatives (1)

     -        9  

Embedded derivatives (2)

     -        43  
  

 

 

    

 

 

 

Total derivative assets

   $                                 1,354      $                                 3,900  
  

 

 

    

 

 

 
     Derivative Liabilities  
     June 30, 2018      December 31, 2017  

Derivatives designated as cash flow hedging instruments under ASC 815:

     

Foreign currency forward and option contracts (3)

   $ 1,595      $ 175  

Foreign currency forward and option contracts (4)

     129        81  
  

 

 

    

 

 

 
     1,724        256  

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts (3)

     179        -  

Embedded derivatives (3)

     108        189  

Embedded derivatives (4)

     490        390  
  

 

 

    

 

 

 

Total derivative liabilities

   $ 2,501      $ 835  
  

 

 

    

 

 

 

(1) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets.

(2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.

(3) Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

(4) Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

 

The following table presents the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the three months ended June 30, 2018 and 2017 (in thousands):

 

     Gain (Loss)
Recognized in AOCI
on Derivatives
(Effective Portion)
    Gain (Loss)
Reclassified From
AOCI Into
“Revenues”
(Effective Portion)
    Gain (Loss)
Recognized in
“Revenues” on
Derivatives
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
 
     June 30,     June 30,     June 30,  
     2018     2017     2018      2017     2018      2017  

Derivatives designated as cash flow hedging instruments under ASC 815:

              

Foreign currency forward and option contracts

   $ (305   $ (1,232   $ 191      $ (820   $ 2      $ -  

Derivatives designated as net investment hedging instruments under ASC 815:

              

Foreign currency forward contracts

     -       (4,774     -        -       -        -  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $         (305)     $       (6,006)     $         191      $       (820)     $             2      $               -  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

The following table presents the gains (losses) recognized in “Other income (expense), net” of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the three months ended June 30, 2018 and 2017 (in thousands):

 

           Three Months Ended June 30,        
     2018      2017  

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts

   $ (93)      $ 921  

Embedded derivatives

     (252      176  
  

 

 

    

 

 

 
   $ (345    $ 1,097  
  

 

 

    

 

 

 

The following table presents the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the six months ended June 30, 2018 and 2017 (in thousands):

 

     Gain (Loss)
Recognized in AOCI
on Derivatives
(Effective Portion)
    Gain (Loss)
Reclassified From
AOCI Into
“Revenues”
(Effective Portion)
    Gain (Loss)
Recognized in
“Revenues” on
Derivatives
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
 
     June 30,     June 30,     June 30,  
     2018     2017     2018      2017     2018      2017  

Derivatives designated as cash flow hedging instruments under ASC 815:

              

Foreign currency forward and option contracts

   $ (3,001   $ (1,466   $ 428      $ (1,580   $ 8      $ -  

Derivatives designated as net investment hedging instruments under ASC 815:

              

Foreign currency forward contracts

     -       (5,373     -        -       -        -  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $     (3,001)     $       (6,839)     $         428      $     (1,580)     $             8      $               -  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

The following table presents the gains (losses) recognized in “Other income (expense), net” of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the six months ended June 30, 2018 and 2017 (in thousands):

 

     Six Months Ended June 30,  
     2018      2017  

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts

   $ (1,262    $ 82  

Embedded derivatives

     (165      315  
  

 

 

    

 

 

 
   $             (1,427    $               397  
  

 

 

    

 

 

 
v3.10.0.1
Investments Held in Rabbi Trust
6 Months Ended
Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments Held in Rabbi Trust

Note 7. Investments Held in Rabbi Trust

The Company’s investments held in rabbi trust, classified as trading securities and included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets, at fair value, consist of the following (in thousands):

 

     June 30, 2018      December 31, 2017  
     Cost      Fair Value      Cost      Fair Value  

Mutual funds

   $         8,252      $         11,864      $         8,096      $         11,627  
  

 

 

    

 

 

    

 

 

    

 

 

 

The mutual funds held in rabbi trust were 72% equity-based and 28% debt-based as of June 30, 2018. Net investment income (losses), included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

 

       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

Net realized gains (losses) from sale of trading securities

   $ 27      $ 149      $ 32      $ 149  

Dividend and interest income

     43        25        68        39  

Net unrealized holding gains (losses)

     72        149        17        542  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (losses)

   $ 142      $ 323      $ 117      $ 730  
  

 

 

    

 

 

    

 

 

    

 

 

 
v3.10.0.1
Deferred Grants
6 Months Ended
Jun. 30, 2018
Text Block [Abstract]  
Deferred Grants

Note 8. Deferred Grants

Deferred grants, net of accumulated amortization, consist of the following (in thousands):

 

         June 30, 2018            December 31, 2017    

Property grants

   $                 2,587      $     2,843  

Lease grants

     441        507  

Employment grants

     68        61  
  

 

 

    

 

 

 

Total deferred grants

     3,096        3,411  

Less: Lease grants - short-term (1)

     (115      (117

Less: Employment grants - short-term (1)

     (68      (61
  

 

 

    

 

 

 

Total long-term deferred grants

   $ 2,913      $ 3,233  
  

 

 

    

 

 

 

(1) Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

v3.10.0.1
Borrowings
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Borrowings

Note 9. Borrowings

On May 12, 2015, the Company entered into a $440 million revolving credit facility (the “Credit Agreement”) with a group of lenders and KeyBank National Association, as Lead Arranger, Sole Book Runner, Administrative Agent, Swing Line Lender and Issuing Lender (“KeyBank”). The Credit Agreement is subject to certain borrowing limitations and includes certain customary financial and restrictive covenants.

The Credit Agreement includes a $200 million alternate-currency sub-facility, a $10 million swingline sub-facility and a $35 million letter of credit sub-facility, and may be used for general corporate purposes including acquisitions, share repurchases, working capital support and letters of credit, subject to certain limitations. The Company is not currently aware of any inability of its lenders to provide access to the full commitment of funds that exist under the revolving credit facility, if necessary. However, there can be no assurance that such facility will be available to the Company, even though it is a binding commitment of the financial institutions.

The Credit Agreement matures on May 12, 2020, and had outstanding borrowings of $90.0 million and $275.0 million at June 30, 2018 and December 31, 2017, respectively, included in “Long-term debt” in the accompanying Condensed Consolidated Balance Sheets.

Borrowings under the Credit Agreement bear interest at the rates set forth in the Credit Agreement. In addition, the Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company’s leverage ratio and due quarterly in arrears as calculated on the average unused amount of the Credit Agreement.

The Credit Agreement is guaranteed by all the Company’s existing and future direct and indirect material U.S. subsidiaries and secured by a pledge of 100% of the non-voting and 65% of the voting capital stock of all the direct foreign subsidiaries of the Company and those of the guarantors.

In May 2015, the Company paid an underwriting fee of $0.9 million for the Credit Agreement, which is deferred and amortized over the term of the loan, along with the deferred loan fees of $0.4 million related to the previous credit agreement.

The following table presents information related to our credit agreements (dollars in thousands):

 

       Three Months Ended June 30,           Six Months Ended June 30,      
     2018     2017     2018     2017  

Average daily utilization

   $ 100,110     $ 267,000     $ 110,691     $ 267,000  

Interest expense (1), (2)

   $ 915     $ 1,600     $ 1,916     $ 3,043  

Weighted average interest rate (2)

     3.7     2.4     3.5     2.3

(1) Excludes the amortization of deferred loan fees.

(2) Includes the commitment fee.

In January 2018, the Company repaid $175.0 million of long-term debt outstanding under its Credit Agreement, primarily using funds repatriated from its foreign subsidiaries.

v3.10.0.1
Accumulated Other Comprehensive Income (Loss)
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 10. Accumulated Other Comprehensive Income (Loss)

The Company presents data in the Condensed Consolidated Statements of Changes in Shareholders’ Equity in accordance with ASC 220, Comprehensive Income (“ASC 220”). ASC 220 establishes rules for the reporting of comprehensive income (loss) and its components. The components of accumulated other comprehensive income (loss) consist of the following (in thousands):

 

     Foreign
Currency
Translation
Adjustments
    Unrealized
Gain
(Loss) on
Net
Investment
Hedge
    Unrealized
Gain (Loss)
on
Cash Flow
Hedging
Instruments
    Unrealized
Actuarial
Gain
(Loss)
Related
to Pension
Liability
    Unrealized
Gain
(Loss) on
Post
Retirement
Obligation
    Total  

Balance at January 1, 2017

   $ (72,393   $     6,266     $ (2,225   $     1,125     $         200     $   (67,027

Pre-tax amount

            36,101       (8,352          2,276       527       (30     30,522  

Tax (provision) benefit

     -       3,132       (54     (18     -       3,060  

Reclassification of (gain) loss to net income

     -       -       2,444       (53     (50     2,341  

Foreign currency translation

     (23     -       30       (7     -       -  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2017

     (36,315     1,046       2,471       1,574       120       (31,104

Pre-tax amount

     (13,522     -       (2,993     -       -       (16,515

Tax (provision) benefit

     -       -       194       7       -       201  

Reclassification of (gain) loss to net income

     -       -       (460     (35     (20     (515

Foreign currency translation

     216       -       (115     (101     -       -  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at June 30, 2018

   $ (49,621   $ 1,046     $ (903   $ 1,445     $ 100     $ (47,933
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The following table summarizes the amounts reclassified to net income from accumulated other comprehensive income (loss) and the associated line item in the accompanying Condensed Consolidated Statements of Operations (in thousands):

 

         Three Months Ended    
June 30,
        Six Months Ended    
June 30,
   

Statements of

Operations

 
     2018      2017     2018      2017     Location  

Gain (Loss) on Cash Flow Hedging Instruments: (1)

            

Pre-tax amount

   $ 193      $ (820   $ 436      $ (1,580     Revenues  

Tax (provision) benefit

     17        17       24        58       Income taxes  
  

 

 

    

 

 

   

 

 

    

 

 

   

Reclassification to net income

     210        (803     460        (1,522  

Actuarial Gain (Loss) Related to Pension Liability: (2)

            

Pre-tax amount

     14        11       29        21      
Other income
(expense), net
 
 

Tax (provision) benefit

     3        -       6        -       Income taxes  
  

 

 

    

 

 

   

 

 

    

 

 

   

Reclassification to net income

     17        11       35        21    

Gain (Loss) on Post Retirement Obligation: (2),(3)

            

Reclassification to net income

     10        13       20        25      
Other income
(expense), net
 
 
  

 

 

    

 

 

   

 

 

    

 

 

   

Total reclassification of gain (loss) to net income

   $         237      $         (779   $          515      $     (1,476  
  

 

 

    

 

 

   

 

 

    

 

 

   

(1) See Note 6, Financial Derivatives, for further information.

(2) See Note 14, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(3) No related tax (provision) benefit.

As discussed in Note 11, Income Taxes, for periods prior to December 31, 2017, any remaining outside basis differences associated with the Company’s investments in its foreign subsidiaries are considered to be indefinitely reinvested and no provision for income taxes on those earnings or translation adjustments has been provided.

v3.10.0.1
Income Taxes
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes

Note 11. Income Taxes

The Company’s effective tax rates were (45.0)% and 15.0% for the three months ended June 30, 2018 and 2017, respectively. The decrease in the effective tax rate in 2018 compared to 2017 was primarily due to a $2.0 million increase in benefit associated with the settlement of tax audits and ancillary issues. In addition, the Company recognized a benefit of $0.5 million from the reduction in the U.S. federal corporate tax rate from 35% to 21% as a result of the 2017 Tax Reform Act. The decrease in the effective tax rate was also significantly affected by shifts in earnings among the various jurisdictions in which the Company operates. Several additional factors, none of which are individually material, also impacted the rate. The difference between the Company’s effective tax rate as compared to the U.S. statutory federal tax rate of 21.0% was primarily due to the aforementioned factors as well as the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions and tax credits, partially offset by the tax impact of permanent differences, state income and foreign withholding.

The Company’s effective tax rates were 1.2% and 22.9% for the six months ended June 30, 2018 and 2017, respectively. The decrease in the effective tax rate was primarily due to the aforementioned $2.0 million increase in discrete benefit. In addition, the Company recognized a benefit of $1.1 million from the reduction in the U.S. federal corporate tax rate from 35% to 21% as a result of the 2017 Tax Reform Act. This was partially offset by a $0.6 million decrease in the amount of excess tax benefits from stock-based compensation recognized in the six months ended June 30, 2018 as compared to June 30, 2017. The decrease in the effective tax rate was also significantly affected by shifts in earnings among the various jurisdictions in which the Company operates. Several additional factors, none of which are individually material, also impacted the rate. The difference between the Company’s effective tax rate as compared to the U.S. statutory federal tax rate of 21.0% was primarily due to the aforementioned factors as well as the recognition of tax benefits resulting from foreign tax rate differentials, income earned in certain tax holiday jurisdictions and tax credits, partially offset by the tax impact of permanent differences, state income and foreign withholding.

The 2017 Tax Reform Act made significant changes to the Internal Revenue Code, including, but not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a participation exemption regime, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. The Company estimated its provision for income taxes in accordance with the 2017 Tax Reform Act and guidance available upon enactment and as a result recorded $32.7 million as additional income tax expense in the fourth quarter of 2017, the period in which the legislation was signed into law. The $32.7 million estimate includes the provisional amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings of $32.7 million based on cumulative foreign earnings of $531.8 million and $1.0 million of foreign withholding taxes on certain anticipated distributions. The provisional tax expense was partially offset by a provisional benefit of $1.0 million related to the remeasurement of certain deferred tax assets and liabilities, based on the rates at which they are expected to reverse in the future. The Company has not determined the need for nor recorded any adjustments to this provisional amount as of June 30, 2018. The Company anticipates finalizing these provisional amounts no later than the fourth quarter of 2018.

Prior to December 31, 2017, no additional income taxes have been provided for any remaining outside basis differences inherent in the Company’s investments in its foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any remaining outside basis difference in these entities is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates.

On December 22, 2017, the SEC issued SAB 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Reform Act. In accordance with SAB 118, the Company has determined that the deferred tax benefit recorded in connection with the remeasurement of certain deferred tax assets and liabilities and the current tax expense recorded in connection with the transition tax on the mandatory deemed repatriation of foreign earnings was a provisional amount and a reasonable estimate at June 30, 2018 and December 31, 2017. Additional work is necessary for a more detailed analysis of the Company’s deferred tax assets and liabilities and its historical foreign earnings as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of identification, but no later than one year from the enactment date.

The 2017 Tax Reform Act instituted a number of new provisions effective January 1, 2018, including GILTI, Foreign Derived Intangible Income (“FDII”) and Base Erosion and Anti-Abuse Tax (“BEAT”). The Company made a reasonable estimate of the impact of each of these provisions of the 2017 Tax Reform Act on its effective tax rate for the three and six months ended June 30, 2018 and determined that the resulting impact was not material. The Company will continue to refine its provisional estimates related to the GILTI, FDII and BEAT rules as additional information is made available.

The Company received assessments for the Canadian 2003-2009 audit. Requests for Competent Authority Assistance were filed with both the Canadian Revenue Agency and the U.S. Internal Revenue Service and the Company paid mandatory security deposits to Canada as part of this process. As of June 30, 2017, the Company determined that all material aspects of the Canadian audit were effectively settled pursuant to ASC 740. As a result, the Company recognized an income tax benefit of $1.2 million, net of the U.S. tax impact, at that time and the deposits were applied against the anticipated liability. During the three months ended June 30, 2018, the Company finalized procedures ancillary to the Canadian audit and recognized an additional $2.7 million income tax benefit due to the elimination of certain assessed penalties, interest and withholding taxes.

With the effective settlement of the Canadian audit, the Company has no significant tax jurisdictions under audit; however, the Company is currently under audit in several tax jurisdictions. The Company believes it is adequately reserved for the remaining audits and their resolution is not expected to have a material impact on its financial conditions and results of operations.

v3.10.0.1
Earnings Per Share
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share

Note 12. Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method.

The numbers of shares used in the earnings per share computation are as follows (in thousands):

 

       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

Basic:

           

Weighted average common shares outstanding

     42,125        41,854        42,035        41,756  

Diluted:

           

Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust

     35        80        162        163  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total weighted average diluted shares outstanding

     42,160        41,934        42,197        41,919  
  

 

 

    

 

 

    

 

 

    

 

 

 

Anti-dilutive shares excluded from the diluted earnings per share calculation

     31        46        6        16  
  

 

 

    

 

 

    

 

 

    

 

 

 

On August 18, 2011, the Company’s Board of Directors (the “Board”) authorized the Company to purchase up to 5.0 million shares of its outstanding common stock (the “2011 Share Repurchase Program”). On March 16, 2016, the Board authorized an increase of 5.0 million shares to the 2011 Share Repurchase Program for a total of 10.0 million shares. A total of 5.3 million shares have been repurchased under the 2011 Share Repurchase Program since inception. The shares are purchased, from time to time, through open market purchases or in negotiated private transactions, and the purchases are based on factors, including but not limited to, the stock price, management discretion and general market conditions. The 2011 Share Repurchase Program has no expiration date.

There were no shares repurchased under the Company’s share repurchase program during the three and six months ended June 30, 2018 and 2017.

v3.10.0.1
Commitments and Loss Contingency
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Loss Contingency

Note 13. Commitments and Loss Contingency

Commitments

During the six months ended June 30, 2018, the Company entered into several leases in the ordinary course of business. The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of June 30, 2018 (in thousands):

 

    

   Amount  

2018 (remaining six months)

   $ 630  

2019

     8,118  

2020

     8,520  

2021

     8,643  

2022

     7,959  

2023

     3,343  

2024 and thereafter

     8,211  
  

 

 

 
   $         45,424  
  

 

 

 

During the six months ended June 30, 2018, the Company entered into agreements with third-party vendors in the ordinary course of business whereby the Company committed to purchase goods and services used in its normal operations. These agreements generally are not cancelable, range from one to five-year periods and may contain fixed or minimum annual commitments. Certain of these agreements allow for renegotiation of the minimum annual commitments. The following is a schedule of the future minimum purchases remaining under the agreements as of June 30, 2018 (in thousands):

 

    

   Amount  

2018 (remaining six months)

   $ 10,237  

2019

     6,346  

2020

     1,699  

2021

     193  

2022

     -  

2023

     -  

2024 and thereafter

     -  
  

 

 

 
   $       18,475  
  

 

 

 

Loss Contingency

Contingencies are recorded in the consolidated financial statements when it is probable that a liability will be incurred and the amount of the loss is reasonably estimable, or otherwise disclosed, in accordance with ASC 450, Contingencies (“ASC 450”). Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450.

The Company received a state audit assessment and is currently rebutting the position. The Company has determined that the likelihood of a liability is reasonably possible and developed a range of possible loss up to $1.0 million, net of federal benefit.

The Company, from time to time, is involved in legal actions arising in the ordinary course of business. With respect to these matters, management believes that the Company has adequate legal defenses and/or, when possible and appropriate, has provided adequate accruals related to those matters such that the ultimate outcome will not have a material adverse effect on the Company’s financial position or results of operations.

v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits
6 Months Ended
Jun. 30, 2018
Retirement Benefits [Abstract]  
Defined Benefit Pension Plan and Postretirement Benefits

Note 14. Defined Benefit Pension Plan and Postretirement Benefits

Defined Benefit Pension Plans

The following table provides information about the net periodic benefit cost for the Company’s pension plans (in thousands):

 

       Three Months Ended June 30,           Six Months Ended June 30,      
     2018     2017     2018     2017  

Service cost

   $ 109     $ 128     $ 223     $ 253  

Interest cost

     48       49       98       98  

Recognized actuarial (gains)

     (14     (11     (29     (21
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 143     $ 166     $ 292     $ 330  
  

 

 

   

 

 

   

 

 

   

 

 

 

The Company’s service cost for its qualified pension plans was included in “Direct salaries and related costs” and “General and administrative” costs in its Condensed Consolidated Statements of Operations for the three and six months ended June 30, 3018 and 2017. The remaining components of net periodic benefit cost were included in “Other income (expense), net” in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 and 2017. See Note 1, Overview and Basis of Presentation, for further information related to the adoption of ASU 2016-18.

 

Employee Retirement Savings Plans

The Company maintains a 401(k) plan covering defined employees who meet established eligibility requirements. Under the plan provisions, the Company matches 50% of participant contributions to a maximum matching amount of 2% of participant compensation. The Company’s contributions included in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands):

 

       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

401(k) plan contributions

   $ 344      $ 309      $ 803      $ 620  
  

 

 

    

 

 

    

 

 

    

 

 

 

Split-Dollar Life Insurance Arrangement

In 1996, the Company entered into a split-dollar life insurance arrangement to benefit the former Chairman and Chief Executive Officer of the Company. Under the terms of the arrangement, the Company retained a collateral interest in the policy to the extent of the premiums paid by the Company. The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands):

 

         June 30, 2018          December 31, 2017  

Postretirement benefit obligation

   $ 12      $ 15  

Unrealized gains (losses) in AOCI (1)

     100        120  

(1) Unrealized gains (losses) are due to changes in discount rates related to the postretirement obligation.

v3.10.0.1
Stock-Based Compensation
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

Note 15. Stock-Based Compensation

The Company’s stock-based compensation plans include the 2011 Equity Incentive Plan, the Non-Employee Director Fee Plan and the Deferred Compensation Plan. The following table summarizes the stock-based compensation expense (primarily in the Americas) and income tax benefits related to the stock-based compensation (in thousands):

 

       Three Months Ended June 30,           Six Months Ended June 30,      
     2018     2017     2018     2017  

Stock-based compensation (expense) (1)

   $ (1,673   $ (2,261   $ (3,750   $ (4,732

Income tax benefit (2)

     402       871       900       1,822  

(1) Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

(2) Included in “Income taxes” in the accompanying Condensed Consolidated Statements of Operations.

There were no capitalized stock-based compensation costs as of June 30, 2018 and December 31, 2017.

Beginning January 1, 2017, as a result of the adoption of ASU 2016-09, Compensation – Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), the Company began accounting for forfeitures as they occur, rather than estimating expected forfeitures. The net cumulative effect of this change was recognized as a $0.2 million reduction to retained earnings as of January 1, 2017. Additionally, excess tax benefits (deficiencies) from stock compensation are included in “Income taxes” in the accompanying Condensed Consolidated Statements of Operations subsequent to the adoption of ASU 2016-09.

2011 Equity Incentive Plan The Company’s Board of Directors (the “Board”) adopted the Sykes Enterprises, Incorporated 2011 Equity Incentive Plan (the “2011 Plan”) on March 23, 2011, as amended on May 11, 2011 to reduce the number of shares of common stock available to 4.0 million shares. The 2011 Plan was approved by the shareholders at the May 2011 Annual Shareholders’ Meeting. The 2011 Plan replaced and superseded the Company’s 2001 Equity Incentive Plan (the “2001 Plan”), which expired on March 14, 2011. The outstanding awards granted under the 2001 Plan will remain in effect until their exercise, expiration or termination. The 2011 Plan permits the grant of restricted stock, stock appreciation rights, stock options and other stock-based awards to certain employees of the Company, members of the Company’s Board and certain non-employees who provide services to the Company in order to encourage them to remain in the employment of, or to faithfully provide services to, the Company and to increase their interest in the Company’s success.

 

Stock Appreciation Rights The Board, at the recommendation of the Compensation and Human Resources Development Committee (the “Compensation Committee”), has approved in the past, and may approve in the future, awards of stock-settled stock appreciation rights (“SARs”) for eligible participants. SARs represent the right to receive, without payment to the Company, a certain number of shares of common stock, as determined by the Compensation Committee, equal to the amount by which the fair market value of a share of common stock at the time of exercise exceeds the grant price. The SARs are granted at the fair market value of the Company’s common stock on the date of the grant and vest one-third on each of the first three anniversaries of the date of grant, provided the participant is employed by the Company on such date. The SARs have a term of 10 years from the date of grant. The fair value of each SAR is estimated on the date of grant using the Black-Scholes valuation model that uses various assumptions.

The following table summarizes the assumptions used to estimate the fair value of SARS granted:

 

             Six Months Ended June 30,          
     2018     2017  

Expected volatility

     21.4     19.3

Weighted-average volatility

     21.4     19.3

Expected dividend rate

     0.0     0.0

Expected term (in years)

     5.0       5.0  

Risk-free rate

     2.5     1.9

The following table summarizes SARs activity as of June 30, 2018 and for the six months then ended:

 

Stock Appreciation Rights

   Shares (000s)     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual

Term
(in years)
     Aggregate
Intrinsic
 Value (000s) 
 

Outstanding at January 1, 2018

     734     $               -        

Granted

     333     $ -        

Exercised

     (43   $ -        

Forfeited or expired

     -     $ -        
  

 

 

         

Outstanding at June 30, 2018

     1,024     $ -        8.6      $ 790  
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested or expected to vest at June 30, 2018

     1,024     $ -        8.6      $ 790  
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at June 30, 2018

     363     $ -        7.6      $ 580  
  

 

 

   

 

 

    

 

 

    

 

 

 

The following table summarizes information regarding SARs granted and exercised (in thousands, except per SAR amounts):

 

             Six Months Ended June 30,          
     2018      2017  

Number of SARs granted

     333        396  

Weighted average grant-date fair value per SAR

   $ 6.84      $ 6.24  

Intrinsic value of SARs exercised

   $ 305      $ 1,678  

Fair value of SARs vested

   $ 1,950      $ 1,846  

The following table summarizes nonvested SARs activity as of June 30, 2018 and for the six months then ended:

 

Nonvested Stock Appreciation Rights

     Shares (000s)        Weighted
Average
Grant-Date
Fair Value
 

Nonvested at January 1, 2018

     600      $                   6.88  

Granted

     333      $ 6.84  

Vested

     (272    $ 7.16  

Forfeited or expired

     -      $ -  
  

 

 

    

Nonvested at June 30, 2018

     661      $ 6.74  
  

 

 

    

As of June 30, 2018, there was $4.0 million of total unrecognized compensation cost, net of actual forfeitures, related to nonvested SARs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 1.5 years.

Restricted Shares The Board, at the recommendation of the Compensation Committee, has approved in the past, and may approve in the future, awards of performance and employment-based restricted shares (“restricted shares”) for eligible participants. In some instances, where the issuance of restricted shares has adverse tax consequences to the recipient, the Board may instead issue restricted stock units (“RSUs”). The restricted shares are shares of the Company’s common stock (or in the case of RSUs, represent an equivalent number of shares of the Company’s common stock) which are issued to the participant subject to (a) restrictions on transfer for a period of time and (b) forfeiture under certain conditions. The performance goals, including revenue growth and income from operations targets, provide a range of vesting possibilities from 0% to 100% and will be measured at the end of the performance period. If the performance conditions are met for the performance period, the shares will vest and all restrictions on the transfer of the restricted shares will lapse (or in the case of RSUs, an equivalent number of shares of the Company’s common stock will be issued to the recipient). The Company recognizes compensation cost, net of actual forfeitures, based on the fair value (which approximates the current market price) of the restricted shares (and RSUs) on the date of grant ratably over the requisite service period based on the probability of achieving the performance goals.

Changes in the probability of achieving the performance goals from period to period will result in corresponding changes in compensation expense. The employment-based restricted shares currently outstanding vest one-third on each of the first three anniversaries of the date of grant, provided the participant is employed by the Company on such date.

The following table summarizes nonvested restricted shares/RSUs activity as of June 30, 2018 and for the six months then ended:

 

Nonvested Restricted Shares and RSUs

     Shares (000s)        Weighted
Average
Grant-Date
Fair Value
 

Nonvested at January 1, 2018

     1,109      $             28.50  

Granted

     488      $ 28.15  

Vested

     (323    $ 25.78  

Forfeited or expired

     (59    $ 27.00  
  

 

 

    

Nonvested at June 30, 2018

     1,215      $ 29.15  
  

 

 

    

The following table summarizes information regarding restricted shares/RSUs granted and vested (in thousands, except per restricted share/RSU amounts):

 

             Six Months Ended June 30,          
     2018      2017  

Number of restricted shares/RSUs granted

     488        480  

Weighted average grant-date fair value per restricted share/RSU

   $ 28.15      $ 29.42  

Fair value of restricted shares/RSUs vested

   $             8,342      $             6,868  

As of June 30, 2018, there was $32.3 million of total unrecognized compensation cost, net of actual forfeitures, related to nonvested restricted shares/RSUs granted under the 2011 Plan. This cost is expected to be recognized over a weighted average period of 1.8 years.

Non-Employee Director Fee Plan The Company’s 2004 Non-Employee Director Fee Plan (the “2004 Fee Plan”), as amended on May 17, 2012, provided that all new non-employee directors joining the Board would receive an initial grant of shares of common stock on the date the new director is elected or appointed, the number of which will be determined by dividing $60,000 by the closing price of the Company’s common stock on the trading day immediately preceding the date a new director is elected or appointed, rounded to the nearest whole number of shares. The initial grant of shares vested in twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant. The award lapses with respect to all unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares are forfeited.

 

The 2004 Fee Plan also provided that each non-employee director would receive, on the day after the annual shareholders’ meeting, an annual retainer for service as a non-employee director (the “Annual Retainer”). Prior to May 17, 2012, the Annual Retainer was $95,000, of which $50,000 was payable in cash, and the remainder was paid in stock. The annual grant of cash vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant. The annual grant of shares paid to non-employee directors prior to May 17, 2012 vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant. On May 17, 2012, upon the recommendation of the Compensation Committee, the Board adopted the Fifth Amended and Restated Non-Employee Director Fee Plan (the “Amendment”), which increased the common stock component of the Annual Retainer by $30,000, resulting in a total Annual Retainer of $125,000, of which $50,000 was payable in cash and the remainder paid in stock. In addition, the Amendment also changed the vesting period for the annual equity award, from a two-year vesting period, to a one-year vesting period (consisting of four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant). The award lapses with respect to all unpaid cash and unvested shares in the event the non-employee director ceases to be a director of the Company, and any unvested shares and unpaid cash are forfeited.

In addition to the Annual Retainer award, the 2004 Fee Plan also provided for any non-employee Chairman of the Board to receive an additional annual cash award of $100,000, and each non-employee director serving on a committee of the Board to receive an additional annual cash award. The additional annual cash award for the Chairperson of the Audit Committee is $20,000 and Audit Committee members are entitled to an annual cash award of $10,000. The annual cash awards for the Chairpersons of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee are $15,000, $12,500 and $12,500, respectively, and all other members of such committees are entitled to an annual cash award of $7,500.

The 2004 Fee Plan expired in May 2014, prior to the 2014 annual shareholders’ meeting. In March 2014, upon the recommendation of the Compensation Committee, the Board determined that, following the expiration of the 2004 Fee Plan, the compensation of non-employee Directors should continue on the same terms as provided in the Fifth Amended and Restated Non-Employee Director Fee Plan, except the amounts of cash and equity grants shall be determined annually by the Board and that the stock portion of such compensation would be issued under the 2011 Plan.

At the Board’s regularly scheduled meeting on December 10, 2014, upon the recommendation of the Compensation Committee, the Board determined that the amount of the cash and equity compensation payable to non-employee directors beginning on the date of the 2015 annual shareholders’ meeting would be increased as follows: cash compensation would be increased by $5,000 per year to a total of $55,000 and equity compensation would be increased by $25,000 per year to a total of $100,000. No change would be made in the additional amounts payable to the Chairman of the Board or the Chairs or members of the various Board committees for their service on such committees, and no changes would be made in the payment terms described above for such cash and equity compensation.

At the Board’s regularly scheduled meeting on December 6, 2016, upon the recommendation of the Compensation Committee, the Board determined that the amount of the cash compensation payable to non-employee directors beginning on the date of the 2017 annual shareholders’ meeting would be increased by $15,000 per year to a total of $70,000.

The Board may pay additional cash compensation to any non-employee director for services on behalf of the Board over and above those typically expected of directors, including but not limited to service on a special committee of the Board. Directors who are executive officers of the Company receive no compensation for service as members of either the Board of Directors or any committees of the Board.

 

The following table summarizes nonvested common stock share award activity as of June 30, 2018 and for the six months then ended:

 

Nonvested Common Stock Share Awards

     Shares (000s)        Weighted
Average
Grant-Date
Fair Value
 

Nonvested at January 1, 2018

     8      $ 32.21  

Granted

     34      $                 27.68  

Vested

     (15    $ 29.87  

Forfeited or expired

     -      $ -  
  

 

 

    

Nonvested at June 30, 2018

     27      $ 27.73  
  

 

 

    

The following table summarizes information regarding common stock share awards granted and vested (in thousands, except per share award amounts):

 

         Six Months Ended June 30,      
     2018      2017  

Number of share awards granted

     34        24  

Weighted average grant-date fair value per share award

   $ 27.68      $ 32.93  

Fair value of share awards vested

   $             450      $             430  

As of June 30, 2018, there was $0.7 million of total unrecognized compensation cost, net of actual forfeitures, related to nonvested common stock share awards granted under the Fee Plan. This cost is expected to be recognized over a weighted average period of less than one year.

Deferred Compensation Plan The Company’s non-qualified Deferred Compensation Plan (the “Deferred Compensation Plan”), which is not shareholder-approved, was adopted by the Board effective December 17, 1998. It was last amended and restated on August 15, 2017, effective January 1, 2018. Eligibility is limited to a select group of key management and employees who are expected to receive an annualized base salary (which will not take into account bonuses or commissions) that exceeds the amount taken into account for purposes of determining highly compensated employees under Section 414(q) of the Internal Revenue Code of 1986 based on the current year’s base salary and applicable dollar amounts. The Deferred Compensation Plan provides participants with the ability to defer between 1% and 80% of their compensation (between 1% and 100% prior to June 30, 2016, the effective date of the first amendment) until the participant’s retirement, termination, disability or death, or a change in control of the Company. Using the Company’s common stock, the Company matches 50% of the amounts deferred by participants on a quarterly basis up to a total of $12,000 per year for the president, chief executive officer and executive vice presidents, $7,500 per year for senior vice presidents, global vice presidents and vice presidents, and, effective January 1, 2017, $5,000 per year for all other participants (there was no match for other participants prior to January 1, 2017, the effective date of the second amendment). Matching contributions and the associated earnings vest over a seven-year service period. Vesting will be accelerated in the event of the participant’s death or disability, a change in control or retirement (defined as separate from service after age 65). In the event of a distribution of benefits as a result of a change in control of the Company, the Company will increase the benefit by an amount sufficient to offset the income tax obligations created by the distribution of benefits. Deferred compensation amounts used to pay benefits, which are held in a rabbi trust, include investments in various mutual funds and shares of the Company’s common stock (see Note 7, Investments Held in Rabbi Trust).

As of June 30, 2018 and December 31, 2017, liabilities of $11.8 million and $11.6 million, respectively, of the Deferred Compensation Plan were recorded in “Accrued employee compensation and benefits” in the accompanying Condensed Consolidated Balance Sheets. Additionally, the Company’s common stock match associated with the Deferred Compensation Plan, with a carrying value of approximately $2.2 million and $2.1 million as of June 30, 2018 and December 31, 2017, respectively, is included in “Treasury stock” in the accompanying Condensed Consolidated Balance Sheets.

 

The following table summarizes nonvested common stock activity as of June 30, 2018 and for the six months then ended:

 

Nonvested Common Stock

     Shares (000s)        Weighted
Average
Grant-Date
Fair Value
 

Nonvested at January 1, 2018

     3      $               29.56  

Granted

     10      $ 28.86  

Vested

     (7    $ 28.89  

Forfeited or expired

     -      $ -  
  

 

 

    

Nonvested at June 30, 2018

     6      $ 29.19  
  

 

 

    

The following table summarizes information regarding shares of common stock granted and vested (in thousands, except per common stock amounts):

 

          Six Months Ended June 30,        
    2018     2017  

Number of shares of common stock granted

    10       10  

Weighted average grant-date fair value per common stock

  $ 28.86     $ 30.66  

Fair value of common stock vested

  $ 213     $ 240  

Cash used to settle the obligation

  $ 644     $ 422  

As of June 30, 2018, there was $0.1 million of total unrecognized compensation cost, net of actual forfeitures, related to nonvested common stock granted under the Deferred Compensation Plan. This cost is expected to be recognized over a weighted average period of 3.7 years.

v3.10.0.1
Segments and Geographic Information
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segments and Geographic Information

Note 16. Segments and Geographic Information

The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers.

The reportable segments consist of (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, and provides outsourced customer engagement solutions (with an emphasis on inbound technical support, digital support and demand generation, and customer service) and technical staffing and (2) EMEA, which includes Europe, the Middle East and Africa, and provides outsourced customer engagement solutions (with an emphasis on technical support and customer service) and fulfillment services. The sites within Latin America, Australia and the Asia Pacific Rim are included in the Americas segment given the nature of the business and client profile, which is primarily made up of U.S.-based companies that are using the Company’s services in these locations to support their customer engagement needs.

 

Information about the Company’s reportable segments is as follows (in thousands):

 

       Americas       EMEA         Other (1)         Consolidated  

Three Months Ended June 30, 2018:

        

Revenues

   $ 327,041     $       69,720     $ 24     $ 396,785  

Percentage of revenues

     82.4     17.6     0.0     100.0

Depreciation, net

   $ 12,335     $ 1,476     $ 749     $ 14,560  

Amortization of intangibles

   $ 3,415     $ 214     $ -     $ 3,629  

Income (loss) from operations

   $ 19,824     $ 2,220     $ (15,584   $ 6,460  

Total other income (expense), net

         (1,511     (1,511

Income taxes

         2,229       2,229  
        

 

 

 

Net income

         $ 7,178  
        

 

 

 

Three Months Ended June 30, 2017:

        

Revenues

   $ 314,871     $ 60,540     $ 27     $ 375,438  

Percentage of revenues

     83.9     16.1     0.0     100.0

Depreciation, net

   $ 11,842     $ 1,254     $ 724     $ 13,820  

Amortization of intangibles

   $ 4,989     $ 261     $ -     $ 5,250  

Income (loss) from operations

   $ 26,127     $ 2,163     $ (16,962)     $ 11,328  

Total other income (expense), net

         (928     (928

Income taxes

         (1,555     (1,555
        

 

 

 

Net income

         $ 8,845  
        

 

 

 

Six Months Ended June 30, 2018:

        

Revenues

   $ 667,762     $ 143,347     $ 47     $ 811,156  

Percentage of revenues

     82.3     17.7     0.0     100.0

Depreciation, net

   $ 25,018     $ 2,887     $ 1,491     $ 29,396  

Amortization of intangibles

   $ 7,407     $ 435     $ -     $ 7,842  

Income (loss) from operations

   $ 45,688     $ 6,859     $ (31,803)     $ 20,744  

Total other income (expense), net

         (2,391     (2,391

Income taxes

         (227     (227
        

 

 

 

Net income

         $ 18,126  
        

 

 

 

Six Months Ended June 30, 2017:

        

Revenues

   $ 635,802     $ 123,607     $ 43     $ 759,452  

Percentage of revenues

     83.7     16.3     0.0     100.0

Depreciation, net

   $ 23,310     $ 2,440     $ 1,418     $ 27,168  

Amortization of intangibles

   $ 9,967     $ 514     $     $ 10,481  

Income (loss) from operations

   $ 64,099     $ 7,743     $ (34,461)     $ 37,381  

Total other income (expense), net

         (1,659     (1,659

Income taxes

         (8,165     (8,165
        

 

 

 

Net income

         $ 27,557  
        

 

 

 

(1) Other items (including corporate and other costs, other income and expense, and income taxes) are included for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the periods shown. Inter-segment revenues are not material to the Americas and EMEA segment results.

The Company’s reportable segments are evaluated regularly by its chief operating decision maker to decide how to allocate resources and assess performance. The chief operating decision maker evaluates performance based upon reportable segment revenue and income (loss) from operations. Because assets by segment are not reported to or used by the Company’s chief operating decision maker to allocate resources, or to assess performance, total assets by segment are not disclosed.

 

The following table represents a disaggregation of revenue from contracts with customers by geographic location for the three and six months ended June 30, 2018 and 2017, by the reportable segment for each category (in thousands):

 

       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

Americas:

           

United States

   $ 165,648      $ 151,654      $ 337,094      $ 305,298  

The Philippines

     56,571        56,779        116,657        115,319  

Costa Rica

     30,973        32,924        63,048        66,249  

Canada

     24,828        27,020        52,017        56,742  

El Salvador

     20,584        18,369        40,595        36,714  

People’s Republic of China

     8,149        9,282        17,497        18,542  

Australia

     7,700        6,440        15,402        13,090  

Mexico

     5,632        5,832        11,950        11,441  

Other

     6,956        6,571        13,502        12,407  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Americas

     327,041        314,871        667,762        635,802  
  

 

 

    

 

 

    

 

 

    

 

 

 

EMEA:

           

Germany

     22,404        18,457        46,579        38,894  

Sweden

     13,674        14,043        27,804        28,344  

United Kingdom

     11,960        9,407        25,307        19,140  

Romania

     8,191        6,685        16,327        13,078  

Other

     13,491        11,948        27,330        24,151  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total EMEA

     69,720        60,540        143,347        123,607  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Other

     24        27        47        43  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 396,785      $ 375,438      $ 811,156      $ 759,452  
  

 

 

    

 

 

    

 

 

    

 

 

 

Revenues are attributed to countries based on location of customer, except for revenues for The Philippines, Costa Rica, the People’s Republic of China and India which are primarily comprised of customers located in the U.S., but serviced by centers in those respective geographic locations.

v3.10.0.1
Other Income (Expense)
6 Months Ended
Jun. 30, 2018
Other Income and Expenses [Abstract]  
Other Income (Expense)

Note 17. Other Income (Expense)

Other income (expense), net consists of the following (in thousands):

 

       Three Months Ended June 30,           Six Months Ended June 30,      
     2018     2017     2018     2017  

Foreign currency transaction gains (losses)

   $ 641     $ (535   $ 2,089     $ 644  

Gains (losses) on derivative instruments not designated as hedges

     (345     1,097       (1,427     397  

Other miscellaneous income (expense)

     (833     231       (1,044     565  
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ (537   $ 793     $ (382   $ 1,606  
  

 

 

   

 

 

   

 

 

   

 

 

 
v3.10.0.1
Related Party Transactions
6 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

Note 18. Related Party Transactions

In January 2008, the Company entered into a lease for a customer engagement center located in Kingstree, South Carolina. The landlord, Kingstree Office One, LLC, is an entity controlled by John H. Sykes, the founder, former Chairman and former Chief Executive Officer of the Company and the father of Charles Sykes, President and Chief Executive Officer of the Company. The lease payments on the 20-year lease were negotiated at or below market rates, and the lease is cancellable at the option of the Company. The Company paid $0.1 million to the landlord during both the three months ended June 30, 2018 and 2017 and $0.2 million during both the six months ended June 30, 2018 and 2017 under the terms of the lease.

During the three and six months ended June 30, 2018, the Company contracted to receive services from XSell, an equity method investee, for $0.1 million. There were no such transactions in 2017. These related party transactions occurred in the normal course of business on terms and conditions that are similar to those of transactions with unrelated parties and, therefore, were measured at the exchange amount.

v3.10.0.1
Subsequent Event
6 Months Ended
Jun. 30, 2018
Subsequent Events [Abstract]  
Subsequent Event

Note 19. Subsequent Event

On July 9, 2018, the Company as guarantor and its wholly-owned subsidiaries, Sykes Australia Pty Ltd, an Australian company, and Clear Link Technologies, LLC, a Delaware limited liability company, entered into a Sale Agreement with WhistleOut Nominees Pty Ltd as trustee for the WhistleOut Holdings Unit Trust, CPC Investments USA Pty Ltd, JJZL Pty Ltd, Kenneth Wong as trustee for Wong Family Trust and C41 Pty Ltd as trustee for the Ottery Family Trust (together, the “Sellers”) to acquire all of the outstanding shares of WhistleOut.

The aggregate purchase price of AUD 30.2 million ($22.4 million), paid at the closing of the transaction on July 9, 2018, is subject to certain post-closing adjustments related to WhistleOut’s working capital. The purchase price was funded through $22.0 million of additional borrowings under the Company’s Credit Agreement. The Sale Agreement provides for a three-year, retention based earnout of AUD 14.0 million.

The Sale Agreement contains customary representations and warranties, indemnification obligations and covenants.

v3.10.0.1
Overview and Basis of Presentation (Policies)
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business

Business Sykes Enterprises, Incorporated and consolidated subsidiaries (“SYKES” or the “Company”) is a leading provider of multichannel demand generation and global customer engagement services. SYKES provides differentiated full lifecycle customer engagement solutions and services to Global 2000 companies and their end customers primarily within the communications, financial services, technology, transportation and leisure, healthcare, retail and other industries. SYKES primarily provides customer engagement solutions and services with an emphasis on inbound multichannel demand generation, customer service and technical support to its clients’ customers. Utilizing SYKES’ integrated onshore/offshore global delivery model, SYKES provides its services through multiple communication channels including phone, e-mail, social media, text messaging, chat and digital self-service. SYKES also provides various enterprise support services in the United States that include services for its clients’ internal support operations, from technical staffing services to outsourced corporate help desk services. In Europe, SYKES also provides fulfillment services, which includes order processing, payment processing, inventory control, product delivery and product returns handling. The Company has operations in two reportable segments entitled (1) the Americas, which includes the United States, Canada, Latin America, Australia and the Asia Pacific Rim, in which the client base is primarily companies in the United States that are using the Company’s services to support their customer management needs; and (2) EMEA, which includes Europe, the Middle East and Africa.

2017 Tax Reform Act

In December 2017, the President of the United States (“U.S.”) signed into law the Tax Cuts and Jobs Act (the “2017 Tax Reform Act”). In general, the 2017 Tax Reform Act reduces the U.S. federal corporate tax rate from 35% to 21%, effective in 2018. The 2017 Tax Reform Act moves from a worldwide business taxation approach to a participation exemption regime. The 2017 Tax Reform Act also imposes base-erosion prevention measures on non-U.S. earnings of U.S. entities, as well as a one-time mandatory deemed repatriation tax on accumulated non-U.S. earnings which was recorded in the fourth quarter of 2017. The impact of the 2017 Tax Reform Act on the consolidated financial results began with the fourth quarter of 2017, the period of enactment. This impact, along with the transitional taxes discussed in Note 11, Income Taxes, is reflected in the Other segment.

Acquisition

On April 24, 2017, the Company entered into a definitive Asset Purchase Agreement (the “Purchase Agreement”) to acquire certain assets from a Global 2000 telecommunications services provider. The aggregate purchase price of $7.5 million was paid on May 31, 2017, using cash on hand, resulting in $6.0 million of property and equipment and $1.5 million of customer relationship intangibles (the “Telecommunications Asset acquisition”). The Purchase Agreement contains customary representations and warranties, indemnification obligations and covenants. The Telecommunications Asset acquisition was completed to strengthen and create new partnerships for the Company and expand its geographic footprint in North America. The results of the Telecommunications Assets’ operations have been included in the Company’s consolidated financial statements in the Americas segment since its acquisition on May 31, 2017.

The Company accounted for the Telecommunications Asset acquisition in accordance with ASC 805, Business Combinations, whereby the fair value of the purchase price was allocated to the tangible and identifiable intangible assets acquired based on their estimated fair values as of the closing date. The Company completed its analysis of the purchase price allocation during the second quarter of 2017.

Basis of Presentation

Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for any future quarters or the year ending December 31, 2018. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission (“SEC”) on March 1, 2018.

Principles of Consolidation

Principles of Consolidation The condensed consolidated financial statements include the accounts of SYKES and its wholly-owned subsidiaries and controlled majority-owned subsidiaries. Investments in less than majority-owned subsidiaries in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Subsequent Events

Subsequent Events Subsequent events or transactions have been evaluated through the date and time of issuance of the condensed consolidated financial statements. On July 9, 2018, the Company entered into and closed a definitive Share Sale Agreement (“Sale Agreement”) to acquire all the outstanding shares of WhistleOut Pty Ltd and WhistleOut Inc. (together, known as “WhistleOut”) for AUD 30.2 million ($22.4 million). See Note 19, Subsequent Event, for further information. There were no other material subsequent events that required recognition or disclosure in the accompanying condensed consolidated financial statements.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted cash — Cash and cash equivalents consist of cash and highly liquid short-term investments, primarily held in non-interest-bearing investments which have original maturities of less than 90 days. Restricted cash includes cash whereby the Company’s ability to use the funds at any time is contractually limited or is generally designated for specific purposes arising out of certain contractual or other obligations.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets that sum to the amounts reported in the Condensed Consolidated Statements of Cash Flows (in thousands):

 

    June 30,
2018
    December 31,
2017
    June 30,
2017
    December 31,
2016
 

Cash and cash equivalents

  $ 162,422     $ 343,734     $ 301,451     $ 266,675  

Restricted cash included in “Other current assets”

    153       154       158       160  

Restricted cash included in “Deferred charges and other assets”

    868       917       823       759  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $       163,443     $       344,805     $       302,432     $       267,594  
 

 

 

   

 

 

   

 

 

   

 

 

 
Investments in Equity Method Investees

Investments in Equity Method Investees — The Company uses the equity method to account for investments in companies if the investment provides the ability to exercise significant influence, but not control, over operating and financial policies of the investee. The Company’s proportionate share of the net income or loss of an equity method investment is included in consolidated net income. Judgment regarding the level of influence over an equity method investment includes considering key factors such as the Company’s ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions.

The Company evaluates an equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing an equity method investment for impairment include the length of time (duration) and the extent (severity) to which the fair value of the equity method investment has been less than cost, the investee’s financial condition and near-term prospects, and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than-temporary is recognized in the period identified. As of June 30, 2018 and December 31, 2017, the Company did not identify any instances where the carrying values of its equity method investments were not recoverable.

In July 2017, the Company made a strategic investment of $10.0 million in XSell Technologies, Inc. (“XSell”) for 32.8% of XSell’s preferred stock. The Company plans to incorporate XSell’s machine learning and artificial intelligence algorithms into its business. The Company believes this will increase the sales performance of its agents to drive revenue for its clients, improve the experience of the Company’s clients’ end customers and enhance brand loyalty, reduce the cost of customer care and leverage analytics and machine learning to source the best agents and improve their performance.

The Company’s net investment in XSell of $9.6 million and $9.8 million was included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, respectively. The Company paid $5.0 million in July 2017 with the remaining $5.0 million included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017. The Company’s proportionate share of XSell’s income (loss) of $(0.1) million and $(0.3) million was included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018, respectively (none in 2017).

Customer-Acquisition Advertising Costs

Customer-Acquisition Advertising Costs — The Company’s advertising costs are expensed as incurred. Total advertising costs included in “Direct salaries and related costs” in the accompanying Condensed Consolidated Statements of Operations for the three months ended June 30, 2018 and 2017 were $12.0 million and $8.6 million, respectively, and $22.0 million and $18.4 million for the six months ended June 30, 2018 and 2017, respectively. Total advertising costs included in “General and administrative” in the accompanying Condensed Consolidated Statements of Operations for the three months ended June 30, 2018 and 2017 were less than $0.1 million and $0.1 million, respectively, and less than $0.1 million and $0.1 million for the six months ended June 30, 2018 and 2017, respectively.

Reclassifications

Reclassifications — Certain balances in the prior period have been reclassified to conform to current period presentation.

New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”) and subsequent amendments (together, “ASC 842”). These amendments require the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases under ASC 840, Leases. These amendments also require qualitative disclosures along with specific quantitative disclosures. These amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities have the option to either apply the amendments (1) at the beginning of the earliest period presented using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements or (2) at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. There are also certain optional practical expedients that an entity may elect to apply.

The Company’s implementation team has compiled a detailed inventory of leases and a preliminary analysis of the impact to the financial statements. The Company continues to evaluate the critical factors of ASC 842. Based on an assessment of the Company’s business and system requirements, the implementation team has selected a lease accounting software solution to assist the Company in complying with ASC 842. The Company expects the adoption of ASC 842 to result in a material increase in the assets and liabilities on the consolidated balance sheets as a result of recognizing right-of-use assets and lease liabilities for existing operating leases based on the amount of the Company’s current lease commitments. The Company believes that the majority of its leases will maintain their current lease classification under ASC 842. The Company does not expect these amendments to have a material effect on its expense recognition timing or cash flows and, as a result, the Company expects the adoption of ASC 842 will result in an insignificant impact on the Company’s consolidated statements of income and on the consolidated statements of cash flows. The Company is continuing to evaluate the magnitude of the impact and related disclosures, as well as the timing and method of adoption, with respect to the transition method and optional practical expedients. The Company is also continuing to evaluate the full impact of ASC 842, as well as its impacts on its business processes, systems, and internal controls.

 

Derivatives and Hedging

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedge Activities (“ASU 2017-12”). These amendments help simplify certain aspects of hedge accounting and better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early application permitted in any interim period after issuance of this update. The Company does not expect the adoption of ASU 2017-12 to materially impact its financial condition, results of operations, cash flows and disclosures.

Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). These amendments require measurement and recognition of expected versus incurred credit losses for financial assets held. These amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the guidance will have on its financial condition, results of operations and cash flows.

New Accounting Standards Recently Adopted

New Accounting Standards Recently Adopted

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) and subsequent amendments (together, “ASC 606”). ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and indicates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective transition method. See Note 2, Revenues, for further details.

Financial Instruments

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). These amendments modify how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception applies to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under ASC 820, Fair Value Measurements, and as such, these investments may be measured at cost. These amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). These amendments clarify the presentation of cash receipts and payments in eight specific situations. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments have been applied using a retrospective transition method to each period presented. The adoption of ASU 2016-15 on January 1, 2018 did not have a material impact on the Company’s cash flows.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) – Restricted Cash (A Consensus of the FASB Emerging Issues Task Force (“ASU 2016-18”). These amendments clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, requiring entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. These amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. These amendments have been applied using a retrospective transition method to each period presented. The inclusion of restricted cash increased the beginning balance of cash in the Condensed Consolidated Statements of Cash Flows by $1.1 million for the six months ended June 30, 2018 and increased the beginning and ending balances of cash by $0.9 million and $1.0 million, respectively, for the six months ended June 30, 2017. Other than the change in presentation within the accompanying Condensed Consolidated Statements of Cash Flows, the retrospective adoption of ASU 2016-18 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Income Taxes

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other than Inventory (“ASU 2016-16”). These amendments require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. These amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The adoption of ASU 2016-16 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements and no cumulative-effect adjustment to retained earnings was required.

In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the 2017 Tax Reform Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as period costs are both acceptable methods subject to an accounting policy election. The Company evaluated the accounting treatment options related to the GILTI provisions and elected to treat any potential GILTI inclusions as a current period cost. The election did not have a material impact on the Company’s consolidated financial statements.

In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). These amendments add various SEC paragraphs pursuant to the issuance of SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”). SAB 118, issued in December 2017, directs taxpayers to consider the implications of the 2017 Tax Reform Act as provisional when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law. As described in Note 11, Income Taxes, and in accordance with SAB 118, the Company recorded amounts that were considered provisional.

Other Comprehensive Income

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) (“ASU 2018-02”). These amendments allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Reform Act. These amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendment in this update is permitted, including adoption in any interim period. These amendments can be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate tax rate in the 2017 Tax Reform Act is recognized. The early adoption of ASU 2018-02 on June 30, 2018 had no impact on the Company’s consolidated financial statements or disclosures.

Business Combinations

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business (“ASU 2017-01”). These amendments clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods. These amendments were applied prospectively. The adoption of ASU 2017-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements.

Retirement Benefits

In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). These amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component outside of a subtotal of income from operations. If a separate line item is not used, the line items used in the income statement to present other components of net benefit cost must be disclosed. These amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. These amendments were applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The amendments allow a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements.

The Company adopted the income statement presentation aspects of ASU 2017-07 on a retrospective basis effective January 1, 2018. The following is a reconciliation of the effect of the reclassification of the interest cost and amortization of actuarial gain (loss) from operating expenses to other income (expense) in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017 (in thousands):

 

    As Previously
Reported
    Adjustments
Due to the
Adoption of
ASU 2017-07
      As Revised    

Three Months Ended June 30, 2017:

     

Direct salaries and related costs

  $ 248,643     $ (28   $ 248,615  

General and administrative

    92,246       (10     92,236  

Income from operations

    11,290       38       11,328  

Other income (expense), net

    831       (38     793  

Six Months Ended June 30, 2017:

     

Direct salaries and related costs

  $ 495,808     $ (57   $ 495,751  

General and administrative

    184,300       (20     184,280  

Income from operations

    37,304       77       37,381  

Other income (expense), net

    1,683       (77     1,606  
Financial Instruments
ASC 825 Financial Instruments (“ASC 825”) permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. The Company has not elected to use the fair value option permitted under ASC 825 for any of its financial assets and financial liabilities that are not already recorded at fair value.
 
Determination of Fair Value  The Company generally uses quoted market prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access to determine fair value and classifies such items in Level 1. Fair values determined by Level 2 inputs utilize inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted market prices in active markets for similar assets or liabilities, and inputs other than quoted market prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency exchange rates, etc. Assets or liabilities valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable.

The following section describes the valuation methodologies used by the Company to measure assets and liabilities at fair value on a recurring basis, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Foreign Currency Forward Contracts and Options — The Company enters into foreign currency forward contracts and options over the counter and values such contracts using quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk. The key inputs include forward or option foreign currency exchange rates and interest rates. These items are classified in Level 2 of the fair value hierarchy.

Embedded Derivatives — The Company uses significant unobservable inputs to determine the fair value of embedded derivatives, which are classified in Level 3 of the fair value hierarchy. These unobservable inputs include expected cash flows associated with the lease, currency exchange rates on the day of commencement, as well as forward currency exchange rates, the results of which are adjusted for credit risk. These items are classified in Level 3 of the fair value hierarchy. See Note 6, Financial Derivatives, for further information.

Investments Held in Rabbi Trust — The investment assets of the rabbi trust are valued using quoted market prices in active markets, which are classified in Level 1 of the fair value hierarchy. For additional information about the deferred compensation plan, refer to Note 7, Investments Held in Rabbi Trust, and Note 15, Stock-Based Compensation.

Contingent Consideration  The Company uses significant unobservable inputs to determine the fair value of contingent consideration, which is classified in Level 3 of the fair value hierarchy. The contingent consideration recorded related to the acquisition of Qelp B.V. and its subsidiary (together, known as “Qelp”) and liabilities assumed as part of the Clear Link Holdings, LLC (“Clearlink”) acquisition was recognized at fair value using a discounted cash flow methodology and a discount rate of approximately 14.0% and 10.0%, respectively.

 

 

Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair value hierarchy:

 

   

Level 1  Quoted prices for identical instruments in active markets.

   

Level 2  Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

   

Level 3  Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Fair Value of Financial Instruments — The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

 

   

Cash, short-term and other investments, investments held in rabbi trust and accounts payable  The carrying values for cash, short-term and other investments, investments held in rabbi trust and accounts payable approximate their fair values.

   

Foreign currency forward contracts and options  Foreign currency forward contracts and options, including premiums paid on options, are recognized at fair value based on quoted market prices of comparable instruments or, if none are available, on pricing models or formulas using current market and model assumptions, including adjustments for credit risk.

   

Embedded derivatives  Embedded derivatives within certain hybrid lease agreements are bifurcated from the host contract and recognized at fair value based on pricing models or formulas using significant unobservable inputs, including adjustments for credit risk.

   

Long-term debt  The carrying value of long-term debt approximates its estimated fair value as the debt bears interest based on variable market rates, as outlined in the debt agreement.

   

Contingent consideration  The contingent consideration is recognized at fair value based on the discounted cash flow method.

Fair Value Measurements  ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820-10-20 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Foreign Currency and Derivative Instruments
 Cash Flow Hedges – The Company has derivative assets and liabilities relating to outstanding forward contracts and options, designated as cash flow hedges, as defined under ASC 815 Derivatives and Hedging (“ASC 815”), consisting of Philippine Peso, Costa Rican Colon, Hungarian Forint and Romanian Leu contracts. These contracts are entered into to hedge the exposure to variability in the cash flows of a specific asset or liability, or of a forecasted transaction that is attributable to changes in exchange rates.
Earnings Per Share
Basic earnings per share are based on the weighted average number of common shares outstanding during the periods. Diluted earnings per share includes the weighted average number of common shares outstanding during the respective periods and the further dilutive effect, if any, from stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust using the treasury stock method.
Segments and Geographic Information
The Company operates within two regions, the Americas and EMEA. Each region represents a reportable segment comprised of aggregated regional operating segments, which portray similar economic characteristics. The Company aligns its business into two segments to effectively manage the business and support the customer care needs of every client and to respond to the demands of the Company’s global customers.
v3.10.0.1
Overview and Basis of Presentation (Tables)
6 Months Ended
Jun. 30, 2018
Summary of Cash and Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets that sum to the amounts reported in the Condensed Consolidated Statements of Cash Flows (in thousands):

 

    June 30,
2018
    December 31,
2017
    June 30,
2017
    December 31,
2016
 

Cash and cash equivalents

  $ 162,422     $ 343,734     $ 301,451     $ 266,675  

Restricted cash included in “Other current assets”

    153       154       158       160  

Restricted cash included in “Deferred charges and other assets”

    868       917       823       759  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $       163,443     $       344,805     $       302,432     $       267,594  
 

 

 

   

 

 

   

 

 

   

 

 

 
Accounting Standards Update 2014-09 [Member]  
Summary of Impact of Adoption of Accounting Standards

The cumulative effect of the adjustments made to the Company’s Condensed Consolidated Balance Sheet as of December 31, 2017 for the line items impacted by the adoption of ASC 606 was as follows (in thousands):

 

    December 31,
2017
        Adjustments    
Due to the
Adoption of
ASC 606
    January 1, 2018  

Receivables, net

  $       341,958     $ 825     $ 342,783  

Deferred charges and other assets

    29,193       2,045       31,238  

Income taxes payable

    2,606       697       3,303  

Deferred revenue and customer liabilities

    34,717       (1,048     33,669  

Other long-term liabilities

    22,039       202       22,241  

Retained earnings

    546,843       3,019       549,862  
Accounting Standards Update 2017-07 [Member]  
Summary of Impact of Adoption of Accounting Standards

The following is a reconciliation of the effect of the reclassification of the interest cost and amortization of actuarial gain (loss) from operating expenses to other income (expense) in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2017 (in thousands):

 

    As Previously
Reported
    Adjustments
Due to the
Adoption of
ASU 2017-07
      As Revised    

Three Months Ended June 30, 2017:

     

Direct salaries and related costs

  $ 248,643     $ (28   $ 248,615  

General and administrative

    92,246       (10     92,236  

Income from operations

    11,290       38       11,328  

Other income (expense), net

    831       (38     793  

Six Months Ended June 30, 2017:

     

Direct salaries and related costs

  $ 495,808     $ (57   $ 495,751  

General and administrative

    184,300       (20     184,280  

Income from operations

    37,304       77       37,381  

Other income (expense), net

    1,683       (77     1,606  
v3.10.0.1
Revenues (Tables)
6 Months Ended
Jun. 30, 2018
Revenues from Contracts with Customers Disaggregated by Service Type

The following table represents revenues from contracts with customers disaggregated by service type for the three and six months ended June 30, 2018 and 2017, by the reportable segment for each category (in thousands):

 

       Three Months Ended June 30,          Six Months Ended June 30,    
     2018      2017      2018      2017  

Americas:

           

Customer engagement solutions and services

   $ 326,766      $ 314,603      $ 667,188      $ 635,265  

Other revenues

     275        268        574        537  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Americas

     327,041        314,871        667,762        635,802  

EMEA:

           

Customer engagement solutions and services

     67,772        58,836        139,443        119,905  

Other revenues

     1,948        1,704        3,904        3,702  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total EMEA

     69,720        60,540        143,347        123,607  

Other:

           

Other revenues

     24        27        47        43  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Other

     24        27        47        43  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $       396,785      $       375,438      $       811,156      $       759,452  
  

 

 

    

 

 

    

 

 

    

 

 

 
Summary of Trade Accounts Receivable, Net

The Company’s trade accounts receivable, net, consists of the following (in thousands):

 

       June 30, 2018         January 1, 2018   

Trade accounts receivable, net, current (1)

   $ 334,818      $ 332,014  

Trade accounts receivable, net, noncurrent (2)

     4,614        2,078  
  

 

 

    

 

 

 
   $ 339,432      $ 334,092  
  

 

 

    

 

 

 

(1) Included in “Receivables, net” in the accompanying Condensed Consolidated Balance Sheets. The January 1, 2018 balance includes the $0.8 million adjustment recorded upon adoption of ASC 606.

(2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets. The January 1, 2018 balance includes a $2.1 million adjustment recorded upon adoption of ASC 606.

Components of Deferred Revenue and Customer Liabilities

Deferred revenue and customer liabilities consists of the following (in thousands):

 

       June 30, 2018         January 1, 2018   

Deferred revenue

   $ 4,900      $ 4,598  

Customer arrangements with termination rights

     18,498        21,755  

Estimated refund liabilities (1)

     9,105        7,316  
  

 

 

    

 

 

 
   $ 32,503      $ 33,669  
  

 

 

    

 

 

 

(1) The January 1, 2018 balance includes the $1.0 million adjustment recorded upon adoption of ASC 606.

Accounting Standards Update 2014-09 [Member]  
Summary of Impact of Adoption of Accounting Standards

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Condensed Consolidated Balance Sheet as of June 30, 2018 were as follows (in thousands):

 

      As Reported       Balances
Without the
  Impact of the  
ASC 606

Adoption
    Effect of
Adoption
Increase
  (Decrease)  
 

June 30, 2018:

     

Receivables, net

  $ 347,885     $ 345,932     $ 1,953  

Deferred charges and other assets

    32,698       28,280       4,418  

Income taxes payable

    843       (733     1,576  

Deferred revenue and customer liabilities

    32,503       34,585       (2,082

Other long-term liabilities

    25,250       25,524       (274

Retained earnings

    567,988       560,837       7,151  

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Condensed Consolidated Statement of Operations for the three months ended June 30, 2018 were as follows, along with the impact per share (in thousands, except per share data):

 

    As Reported     Balances
Without the
Impact of
  the ASC 606  
Adoption
    Effect of
  Adoption  
Increase
(Decrease)
 

Three Months Ended June 30, 2018:

     

Revenues

  $ 396,785     $ 394,483     $ 2,302  

Income from operations

    6,460       4,158       2,302  

Income before income taxes

    4,949       2,647       2,302  

Income taxes

    (2,229     (2,804     575  

Net income

    7,178       5,451       1,727  

Net income per common share:

     

Basic

  $ 0.17     $ 0.13     $ 0.04  
 

 

 

   

 

 

   

 

 

 

Diluted

  $ 0.17     $ 0.13     $ 0.04  
 

 

 

   

 

 

   

 

 

 

 

The financial statement line items impacted by the adoption of ASC 606 in the Company’s Condensed Consolidated Statement of Operations for the six months ended June 30, 2018 were as follows, along with the impact per share (in thousands, except per share data):

 

    As Reported     Balances
Without the
Impact of
  the ASC 606  
Adoption
    Effect of
  Adoption  
Increase
(Decrease)
 

Six Months Ended June 30, 2018:

     

Revenues

  $ 811,156     $ 805,759     $ 5,397  

Income from operations

    20,744       15,347       5,397  

Income before income taxes

    18,353       12,956       5,397  

Income taxes

    227       (1,038     1,265  

Net income

    18,126       13,994       4,132  

Net income per common share:

     

Basic

  $ 0.43     $ 0.33     $ 0.10  
 

 

 

   

 

 

   

 

 

 

Diluted

  $             0.43     $             0.33     $             0.10  
 

 

 

   

 

 

   

 

 

 
v3.10.0.1
Costs Associated with Exit or Disposal Activities (Tables)
6 Months Ended
Jun. 30, 2018
Restructuring and Related Activities [Abstract]  
Cumulative Costs Expected and Incurred as a Result of Exit Plan

The cumulative costs expected and incurred as a result of the Americas 2018 Exit Plan are outlined below as of June 30, 2018 (in thousands):

 

     Costs Expected
To Be Incurred
     Cumulative
 Costs Incurred 
To Date
     Expected
    Remaining    
Costs
 

Lease obligations and facility exit costs (1)

   $ 6,692      $ 3,028      $ 3,664  

Severance and related costs (2)

     3,701        402        3,299  

Severance and related costs (1)

     488        219        269  

Non-cash impairment charges

     5,175        5,175        -  
  

 

 

    

 

 

    

 

 

 
   $ 16,056      $ 8,824      $ 7,232  
  

 

 

    

 

 

    

 

 

 

(1) Relates to “General and administrative” costs.

(2) Relates to “Direct salaries and related costs.”

Summary of Accrued Liability and Related Charges

The following table summarizes the accrued liability and related charges for the three and six months ended June 30, 2018 (none in 2017) (in thousands):

 

     Lease Obligations
and Facility
Exit Costs
     Severance and
Related Costs
     Total  

Balance at the beginning of the period

   $ -      $ -      $ -  

Charges included in “Direct salaries and related costs”

     -        402        402  

Charges included in “General and administrative”

     3,028        219        3,247  

Cash payments

     (429      (131      (560

Balance sheet reclassifications (1)

     216        -        216  
  

 

 

    

 

 

    

 

 

 

Balance at the end of the period

   $                 2,815      $                    490      $                 3,305  
  

 

 

    

 

 

    

 

 

 

(1) Consists of the reclassification of deferred rent balances for locations subject to closure to the restructuring liability.

Summary of Company's Short-term and Long-term Accrued Liability with Exit Plan

The following table summarizes the Company’s short-term and long-term accrued liabilities associated with the Americas 2018 Exit Plan as of June 30, 2018 (none in 2017) (in thousands):

 

     Americas 2018
Exit Plan
 

Short-term accrued restructuring liability (1)

   $                             2,726  

Short-term accrued restructuring liability (2)

     490  

Long-term accrued restructuring liability (3)

     89  
  

 

 

 

Ending accrual at June 30, 2018

   $ 3,305  
  

 

 

 

(1) Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheet.

(2) Included in “Accrued employee compensation and benefits” in the accompanying Condensed Consolidated Balance Sheet.

(3) Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheet.

v3.10.0.1
Fair Value (Tables)
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company’s assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following as of June 30, 2018 (in thousands):

 

            Fair Value Measurements Using:  
     Balance at      Quoted
Prices in
Active
Markets
For
Identical
Assets
     Significant
Other
Observable
Inputs
     Significant
Unobservable
Inputs
 
     June 30,
2018
     Level 1      Level 2      Level 3  

Assets:

           

Foreign currency forward and option contracts(1)

   $ 1,354      $ -      $ 1,354      $ -  

Equity investments held in rabbi trust for the Deferred Compensation Plan(2)

     8,557        8,557        -        -  

Debt investments held in rabbi trust for the Deferred Compensation  Plan(2)

     3,307        3,307        -        -  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $           13,218      $         11,864      $ 1,354      $ -  
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Foreign currency forward and option contracts(1)

   $ 1,903      $ -      $ 1,903      $ -  

Embedded derivatives(1)

     598        -        -        598  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,501      $ -      $             1,903      $                598  
  

 

 

    

 

 

    

 

 

    

 

 

 

The Company’s assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following as of December 31, 2017 (in thousands):

 

            Fair Value Measurements Using:  
     Balance at      Quoted
Prices in
Active Markets
For Identical
Assets
     Significant
Other
Observable
Inputs
     Significant
Unobservable
Inputs
 
     December 31,
2017
     Level 1      Level 2      Level 3  

Assets:

           

Foreign currency forward and option contracts(1)

   $ 3,848      $ -      $ 3,848      $ -  

Embedded derivatives(1)

     52        -        -        52  

Equity investments held in rabbi trust for the Deferred Compensation Plan(2)

     8,094        8,094        -        -  

Debt investments held in rabbi trust for the Deferred Compensation Plan(2)

     3,533        3,533        -        -  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $           15,527      $         11,627      $             3,848      $ 52  
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities:

           

Foreign currency forward and option contracts(1)

   $ 256      $ -      $ 256      $ -  

Embedded derivatives(1)

     579        -        -        579  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 835      $ -      $ 256      $                579  
  

 

 

    

 

 

    

 

 

    

 

 

 

(1) See Note 6, Financial Derivatives, for the classification in the accompanying Condensed Consolidated Balance Sheets.

(2) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets. See Note 7, Investments Held in Rabbi Trust.

Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives

A rollforward of the net asset (liability) activity in the Company’s fair value of the embedded derivatives is as follows (in thousands):

 

         Three Months Ended June 30,             Six Months Ended June 30,      
     2018     2017     2018     2017  

Balance at the beginning of the period

   $ (409   $ (375   $ (527   $ (555

Gains (losses) recognized in “Other income (expense), net”

     (252     176       (165     315  

Settlements

     38       25       80       70  

Effect of foreign currency

     25       3       14       (1
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

   $ (598   $ (171   $ (598   $ (171
  

 

 

   

 

 

   

 

 

   

 

 

 

Change in unrealized gains (losses) included in “Other income (expense), net” related to embedded derivatives held at the end of the period

   $ (253   $ 48     $ (171   $ 183  
  

 

 

   

 

 

   

 

 

   

 

 

 
Rollforward of Fair Value of Contingent Consideration (Liability)

Contingent Consideration

A rollforward of the activity in the Company’s fair value of the contingent consideration (liability) is as follows (none in 2018) (in thousands):

 

     Three Months
Ended June 30,
2017
     Six Months
Ended June 30,
2017
 

Balance at the beginning of the period

   $ (5,633    $ (6,100

Imputed interest

     (34      (68

Fair value gain (loss) adjustments (1)

     268        701  

Settlements

     4,402        4,528  

Effect of foreign currency

     (130      (188
  

 

 

    

 

 

 

Balance at the end of the period

   $ (1,127    $ (1,127
  

 

 

    

 

 

 

Change in unrealized gains (losses) included in “General and administrative” related to contingent consideration outstanding at the end of the period

   $ 268      $ 268  
  

 

 

    

 

 

 

(1) Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets

The following table summarizes the total impairment losses related to nonrecurring fair value measurements of certain assets (no liabilities) subject to the requirements of ASC 820 (in thousands):

 

     Total Impairment (Loss)  
       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

Americas:

           

Property and equipment, net

   $ (5,175)      $ (4,189)      $ (8,701)      $ (4,391)  
  

 

 

    

 

 

    

 

 

    

 

 

 
v3.10.0.1
Goodwill and Intangible Assets (Tables)
6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Company's Purchased Intangible Assets

The following table presents the Company’s purchased intangible assets as of June 30, 2018 (in thousands):

 

     Gross
 Intangibles 
     Accumulated
Amortization
    Net
 Intangibles 
     Weighted
Average
Amortization
Period (years)
 

Intangible assets subject to amortization:

          

Customer relationships

   $ 169,749      $ (100,859   $ 68,890        10  

Trade names and trademarks

     14,135        (9,651     4,484        7  

Non-compete agreements

     1,820        (1,356     464        3  

Content library

     526        (526     -        2  

Proprietary software

     1,040        (655     385        4  

Intangible assets not subject to amortization:

          

Domain names

     65,606        -       65,606        N/A  
  

 

 

    

 

 

   

 

 

    
   $ 252,876      $ (113,047)     $ 139,829        5  
  

 

 

    

 

 

   

 

 

    

The following table presents the Company’s purchased intangible assets as of December 31, 2017 (in thousands):

 

     Gross
Intangibles
     Accumulated
Amortization
    Net
 Intangibles 
     Weighted
Average
Amortization
Period (years)
 

Intangible assets subject to amortization:

          

Customer relationships

   $ 170,853      $ (95,175   $ 75,678        10  

Trade names and trademarks

     14,138        (8,797     5,341        7  

Non-compete agreements

     1,820        (1,052     768        3  

Content library

     542        (542     -        2  

Proprietary software

     1,040        (585     455        4  

Intangible assets not subject to amortization:

          

Domain names

     58,035        -       58,035        N/A  
  

 

 

    

 

 

   

 

 

    
   $ 246,428      $ (106,151)     $ 140,277        6  
  

 

 

    

 

 

   

 

 

    
Estimated Future Amortization Expense

The Company’s estimated future amortization expense for the succeeding years relating to the purchased intangible assets resulting from acquisitions completed prior to June 30, 2018 is as follows (in thousands):

 

Years Ending December 31,

     Amount    

2018 (remaining six months)

     7,230  

2019

     14,022  

2020

     11,348  

2021

     6,799  

2022

     5,714  

2023

     4,882  

2024 and thereafter

     24,228  

Changes in Goodwill

Changes in goodwill for the six months ended June 30, 2018 consist of the following (in thousands):

 

       January 1,  
2018
       Acquisition        Effect of
Foreign
  Currency  
        June 30,    
2018
 

Americas

   $ 258,496      $ -      $ (2,872   $ 255,624  

EMEA

     10,769        -        (402     10,367  
  

 

 

    

 

 

    

 

 

   

 

 

 
   $ 269,265      $ -      $       (3,274   $       265,991  
  

 

 

    

 

 

    

 

 

   

 

 

 

 

Changes in goodwill for the year ended December 31, 2017 consist of the following (in thousands):

 

     January 1,
2017
     Acquisition      Effect of
Foreign
Currency
     December 31,
2017
 

Americas

   $ 255,842      $ 390      $ 2,264      $ 258,496  

EMEA

     9,562        -        1,207        10,769  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $     265,404      $           390      $         3,471      $     269,265  
  

 

 

    

 

 

    

 

 

    

 

 

 
v3.10.0.1
Financial Derivatives (Tables)
6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges

The deferred gains (losses) and related taxes on the Company’s cash flow hedges recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) in the accompanying Condensed Consolidated Balance Sheets are as follows (in thousands):

 

         June 30, 2018          December 31, 2017  

Deferred gains (losses) in AOCI

   $ (999    $ 2,550  

Tax on deferred gains (losses) in AOCI

                     96        (79
  

 

 

    

 

 

 

Deferred gains (losses) in AOCI, net of taxes

   $ (903    $             2,471  
  

 

 

    

 

 

 

Deferred gains (losses) expected to be reclassified to “Revenues” from AOCI during the next twelve months

   $ (882   
  

 

 

    
Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives

The Company had the following outstanding foreign currency forward contracts and options, and embedded derivatives (in thousands):

 

     June 30, 2018      December 31, 2017  
Contract Type   

Notional

Amount in
USD

     Settle
Through
Date
     Notional
Amount
in USD
     Settle
Through
Date
 

Cash flow hedges:

           

Options:

           

US Dollars/Philippine Pesos

   $         61,750        September 2019        $         78,000        December 2018    

Forwards:

           

US Dollars/Philippine Pesos

     53,400        September 2019        3,000        June 2018  

US Dollars/Costa Rican Colones

     82,500        August 2019        70,000        March 2019  

Euros/Hungarian Forints

     1,726        December 2018        3,554        December 2018  

Euros/Romanian Leis

     6,894        December 2018        13,977        December 2018  

Non-designated hedges:

           

Forwards

     6,153        September 2018        9,253        March 2018  

Embedded derivatives

     12,676        April 2030        13,519        April 2030  
Derivative Instruments Fair Value

The following tables present the fair value of the Company’s derivative instruments included in the accompanying Condensed Consolidated Balance Sheets (in thousands):

 

     Derivative Assets  
     June 30, 2018      December 31, 2017  

Derivatives designated as cash flow hedging instruments under ASC 815:

     

Foreign currency forward and option contracts (1)

   $ 1,343      $ 3,604  

Foreign currency forward and option contracts (2)

     11        -  
  

 

 

    

 

 

 
     1,354        3,604  

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts (1)

     -        244  

Embedded derivatives (1)

     -        9  

Embedded derivatives (2)

     -        43  
  

 

 

    

 

 

 

Total derivative assets

   $                                 1,354      $                                 3,900  
  

 

 

    

 

 

 
     Derivative Liabilities  
     June 30, 2018      December 31, 2017  

Derivatives designated as cash flow hedging instruments under ASC 815:

     

Foreign currency forward and option contracts (3)

   $ 1,595      $ 175  

Foreign currency forward and option contracts (4)

     129        81  
  

 

 

    

 

 

 
     1,724        256  

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts (3)

     179        -  

Embedded derivatives (3)

     108        189  

Embedded derivatives (4)

     490        390  
  

 

 

    

 

 

 

Total derivative liabilities

   $ 2,501      $ 835  
  

 

 

    

 

 

 

(1) Included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets.

(2) Included in “Deferred charges and other assets” in the accompanying Condensed Consolidated Balance Sheets.

(3) Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

(4) Included in “Other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

Effect of the Company's Derivative Instruments

The following table presents the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the three months ended June 30, 2018 and 2017 (in thousands):

 

     Gain (Loss)
Recognized in AOCI
on Derivatives
(Effective Portion)
    Gain (Loss)
Reclassified From
AOCI Into
“Revenues”
(Effective Portion)
    Gain (Loss)
Recognized in
“Revenues” on
Derivatives
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
 
     June 30,     June 30,     June 30,  
     2018     2017     2018      2017     2018      2017  

Derivatives designated as cash flow hedging instruments under ASC 815:

              

Foreign currency forward and option contracts

   $ (305   $ (1,232   $ 191      $ (820   $ 2      $ -  

Derivatives designated as net investment hedging instruments under ASC 815:

              

Foreign currency forward contracts

     -       (4,774     -        -       -        -  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $         (305)     $       (6,006)     $         191      $       (820)     $             2      $               -  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

The following table presents the gains (losses) recognized in “Other income (expense), net” of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the three months ended June 30, 2018 and 2017 (in thousands):

 

           Three Months Ended June 30,        
     2018      2017  

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts

   $ (93)      $ 921  

Embedded derivatives

     (252      176  
  

 

 

    

 

 

 
   $ (345    $ 1,097  
  

 

 

    

 

 

 

The following table presents the effect of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the six months ended June 30, 2018 and 2017 (in thousands):

 

     Gain (Loss)
Recognized in AOCI
on Derivatives
(Effective Portion)
    Gain (Loss)
Reclassified From
AOCI Into
“Revenues”
(Effective Portion)
    Gain (Loss)
Recognized in
“Revenues” on
Derivatives
(Ineffective Portion
and Amount
Excluded from
Effectiveness Testing)
 
     June 30,     June 30,     June 30,  
     2018     2017     2018      2017     2018      2017  

Derivatives designated as cash flow hedging instruments under ASC 815:

              

Foreign currency forward and option contracts

   $ (3,001   $ (1,466   $ 428      $ (1,580   $ 8      $ -  

Derivatives designated as net investment hedging instruments under ASC 815:

              

Foreign currency forward contracts

     -       (5,373     -        -       -        -  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 
   $     (3,001)     $       (6,839)     $         428      $     (1,580)     $             8      $               -  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

 

The following table presents the gains (losses) recognized in “Other income (expense), net” of the Company’s derivative instruments included in the accompanying Condensed Consolidated Financial Statements for the six months ended June 30, 2018 and 2017 (in thousands):

 

     Six Months Ended June 30,  
     2018      2017  

Derivatives not designated as hedging instruments under ASC 815:

     

Foreign currency forward contracts

   $ (1,262    $ 82  

Embedded derivatives

     (165      315  
  

 

 

    

 

 

 
   $             (1,427    $               397  
  

 

 

    

 

 

 
v3.10.0.1
Investments Held in Rabbi Trust (Tables)
6 Months Ended
Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments Held in Rabbi Trust, Classified as Trading

The Company’s investments held in rabbi trust, classified as trading securities and included in “Other current assets” in the accompanying Condensed Consolidated Balance Sheets, at fair value, consist of the following (in thousands):

 

     June 30, 2018      December 31, 2017  
     Cost      Fair Value      Cost      Fair Value  

Mutual funds

   $         8,252      $         11,864      $         8,096      $         11,627  
  

 

 

    

 

 

    

 

 

    

 

 

 
Components of Investment Income (Losses), Included in Other Income (Expense), Net in Accompanying Consolidated Statements of Operations

The mutual funds held in rabbi trust were 72% equity-based and 28% debt-based as of June 30, 2018. Net investment income (losses), included in “Other income (expense), net” in the accompanying Condensed Consolidated Statements of Operations consists of the following (in thousands):

 

       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

Net realized gains (losses) from sale of trading securities

   $ 27      $ 149      $ 32      $ 149  

Dividend and interest income

     43        25        68        39  

Net unrealized holding gains (losses)

     72        149        17        542  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income (losses)

   $ 142      $ 323      $ 117      $ 730  
  

 

 

    

 

 

    

 

 

    

 

 

 
v3.10.0.1
Deferred Grants (Tables)
6 Months Ended
Jun. 30, 2018
Text Block [Abstract]  
Schedule of Deferred Grants, Net of Accumulated Amortization

Deferred grants, net of accumulated amortization, consist of the following (in thousands):

 

         June 30, 2018            December 31, 2017    

Property grants

   $                 2,587      $     2,843  

Lease grants

     441        507  

Employment grants

     68        61  
  

 

 

    

 

 

 

Total deferred grants

     3,096        3,411  

Less: Lease grants - short-term (1)

     (115      (117

Less: Employment grants - short-term (1)

     (68      (61
  

 

 

    

 

 

 

Total long-term deferred grants

   $ 2,913      $ 3,233  
  

 

 

    

 

 

 

(1) Included in “Other accrued expenses and current liabilities” in the accompanying Condensed Consolidated Balance Sheets.

v3.10.0.1
Borrowings (Tables)
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Information Related to Credit Agreements

The following table presents information related to our credit agreements (dollars in thousands):

 

       Three Months Ended June 30,           Six Months Ended June 30,      
     2018     2017     2018     2017  

Average daily utilization

   $ 100,110     $ 267,000     $ 110,691     $ 267,000  

Interest expense (1), (2)

   $ 915     $ 1,600     $ 1,916     $ 3,043  

Weighted average interest rate (2)

     3.7     2.4     3.5     2.3

(1) Excludes the amortization of deferred loan fees.

(2) Includes the commitment fee.

v3.10.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Components of Accumulated Other Comprehensive Income (Loss)

The Company presents data in the Condensed Consolidated Statements of Changes in Shareholders’ Equity in accordance with ASC 220, Comprehensive Income (“ASC 220”). ASC 220 establishes rules for the reporting of comprehensive income (loss) and its components. The components of accumulated other comprehensive income (loss) consist of the following (in thousands):

 

     Foreign
Currency
Translation
Adjustments
    Unrealized
Gain
(Loss) on
Net
Investment
Hedge
    Unrealized
Gain (Loss)
on
Cash Flow
Hedging
Instruments
    Unrealized
Actuarial
Gain
(Loss)
Related
to Pension
Liability
    Unrealized
Gain
(Loss) on
Post
Retirement
Obligation
    Total  

Balance at January 1, 2017

   $ (72,393   $     6,266     $ (2,225   $     1,125     $         200     $   (67,027

Pre-tax amount

            36,101       (8,352          2,276       527       (30     30,522  

Tax (provision) benefit

     -       3,132       (54     (18     -       3,060  

Reclassification of (gain) loss to net income

     -       -       2,444       (53     (50     2,341  

Foreign currency translation

     (23     -       30       (7     -       -  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2017

     (36,315     1,046       2,471       1,574       120       (31,104

Pre-tax amount

     (13,522     -       (2,993     -       -       (16,515

Tax (provision) benefit

     -       -       194       7       -       201  

Reclassification of (gain) loss to net income

     -       -       (460     (35     (20     (515

Foreign currency translation

     216       -       (115     (101     -       -  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at June 30, 2018

   $ (49,621   $ 1,046     $ (903   $ 1,445     $ 100     $ (47,933
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss)

The following table summarizes the amounts reclassified to net income from accumulated other comprehensive income (loss) and the associated line item in the accompanying Condensed Consolidated Statements of Operations (in thousands):

 

         Three Months Ended    
June 30,
        Six Months Ended    
June 30,
   

Statements of

Operations

 
     2018      2017     2018      2017     Location  

Gain (Loss) on Cash Flow Hedging Instruments: (1)

            

Pre-tax amount

   $ 193      $ (820   $ 436      $ (1,580     Revenues  

Tax (provision) benefit

     17        17       24        58       Income taxes  
  

 

 

    

 

 

   

 

 

    

 

 

   

Reclassification to net income

     210        (803     460        (1,522  

Actuarial Gain (Loss) Related to Pension Liability: (2)

            

Pre-tax amount

     14        11       29        21      
Other income
(expense), net
 
 

Tax (provision) benefit

     3        -       6        -       Income taxes  
  

 

 

    

 

 

   

 

 

    

 

 

   

Reclassification to net income

     17        11       35        21    

Gain (Loss) on Post Retirement Obligation: (2),(3)

            

Reclassification to net income

     10        13       20        25      
Other income
(expense), net
 
 
  

 

 

    

 

 

   

 

 

    

 

 

   

Total reclassification of gain (loss) to net income

   $         237      $         (779   $          515      $     (1,476  
  

 

 

    

 

 

   

 

 

    

 

 

   

(1) See Note 6, Financial Derivatives, for further information.

(2) See Note 14, Defined Benefit Pension Plan and Postretirement Benefits, for further information.

(3) No related tax (provision) benefit.

v3.10.0.1
Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Numbers of Shares Used in Earnings Per Share Computation

The numbers of shares used in the earnings per share computation are as follows (in thousands):

 

       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

Basic:

           

Weighted average common shares outstanding

     42,125        41,854        42,035        41,756  

Diluted:

           

Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust

     35        80        162        163  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total weighted average diluted shares outstanding

     42,160        41,934        42,197        41,919  
  

 

 

    

 

 

    

 

 

    

 

 

 

Anti-dilutive shares excluded from the diluted earnings per share calculation

     31        46        6        16  
  

 

 

    

 

 

    

 

 

    

 

 

 
v3.10.0.1
Commitments and Loss Contingency (Tables)
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Rental Payments for Operating Leases

The following is a schedule of future minimum rental payments required under operating leases that have noncancelable lease terms as of June 30, 2018 (in thousands):

 

    

   Amount  

2018 (remaining six months)

   $ 630  

2019

     8,118  

2020

     8,520  

2021

     8,643  

2022

     7,959  

2023

     3,343  

2024 and thereafter

     8,211  
  

 

 

 
   $         45,424  
  

 

 

 
Schedule of Future Minimum Purchases Remaining under Agreements

The following is a schedule of the future minimum purchases remaining under the agreements as of June 30, 2018 (in thousands):

 

    

   Amount  

2018 (remaining six months)

   $ 10,237  

2019

     6,346  

2020

     1,699  

2021

     193  

2022

     -  

2023

     -  

2024 and thereafter

     -  
  

 

 

 
   $       18,475  
  

 

 

 
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits (Tables)
6 Months Ended
Jun. 30, 2018
Retirement Benefits [Abstract]  
Net Periodic Benefit Cost and Other Accumulated Comprehensive Income for Pension Plans

The following table provides information about the net periodic benefit cost for the Company’s pension plans (in thousands):

 

       Three Months Ended June 30,           Six Months Ended June 30,      
     2018     2017     2018     2017  

Service cost

   $ 109     $ 128     $ 223     $ 253  

Interest cost

     48       49       98       98  

Recognized actuarial (gains)

     (14     (11     (29     (21
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 143     $ 166     $ 292     $ 330  
  

 

 

   

 

 

   

 

 

   

 

 

 
Company's Contributions to Employee Retirement Savings Plans

The Company’s contributions included in the accompanying Condensed Consolidated Statements of Operations were as follows (in thousands):

 

       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

401(k) plan contributions

   $ 344      $ 309      $ 803      $ 620  
  

 

 

    

 

 

    

 

 

    

 

 

 
Post-Retirement Benefit Obligation and Unrealized Gain (Losses)

The postretirement benefit obligation included in “Other long-term liabilities” and the unrealized gains (losses) included in “Accumulated other comprehensive income” in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands):

 

         June 30, 2018          December 31, 2017  

Postretirement benefit obligation

   $ 12      $ 15  

Unrealized gains (losses) in AOCI (1)

     100        120  

(1) Unrealized gains (losses) are due to changes in discount rates related to the postretirement obligation.

v3.10.0.1
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company

The following table summarizes the stock-based compensation expense (primarily in the Americas) and income tax benefits related to the stock-based compensation (in thousands):

 

       Three Months Ended June 30,           Six Months Ended June 30,      
     2018     2017     2018     2017  

Stock-based compensation (expense) (1)

   $ (1,673   $ (2,261   $ (3,750   $ (4,732

Income tax benefit (2)

     402       871       900       1,822  

(1) Included in “General and administrative” costs in the accompanying Condensed Consolidated Statements of Operations.

(2) Included in “Income taxes” in the accompanying Condensed Consolidated Statements of Operations.

Summary of Assumptions Used to Estimate Fair Value

The following table summarizes the assumptions used to estimate the fair value of SARS granted:

 

             Six Months Ended June 30,          
     2018     2017  

Expected volatility

     21.4     19.3

Weighted-average volatility

     21.4     19.3

Expected dividend rate

     0.0     0.0

Expected term (in years)

     5.0       5.0  

Risk-free rate

     2.5     1.9
Summary of Stock Appreciation Rights Activity

The following table summarizes SARs activity as of June 30, 2018 and for the six months then ended:

 

Stock Appreciation Rights

   Shares (000s)     Weighted
Average
Exercise
Price
     Weighted
Average
Remaining
Contractual

Term
(in years)
     Aggregate
Intrinsic
 Value (000s) 
 

Outstanding at January 1, 2018

     734     $               -        

Granted

     333     $ -        

Exercised

     (43   $ -        

Forfeited or expired

     -     $ -        
  

 

 

         

Outstanding at June 30, 2018

     1,024     $ -        8.6      $ 790  
  

 

 

   

 

 

    

 

 

    

 

 

 

Vested or expected to vest at June 30, 2018

     1,024     $ -        8.6      $ 790  
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at June 30, 2018

     363     $ -        7.6      $ 580  
  

 

 

   

 

 

    

 

 

    

 

 

 
Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised

The following table summarizes information regarding SARs granted and exercised (in thousands, except per SAR amounts):

 

             Six Months Ended June 30,          
     2018      2017  

Number of SARs granted

     333        396  

Weighted average grant-date fair value per SAR

   $ 6.84      $ 6.24  

Intrinsic value of SARs exercised

   $ 305      $ 1,678  

Fair value of SARs vested

   $ 1,950      $ 1,846  
Summary of Nonvested Stock Appreciation Rights

The following table summarizes nonvested SARs activity as of June 30, 2018 and for the six months then ended:

 

Nonvested Stock Appreciation Rights

     Shares (000s)        Weighted
Average
Grant-Date
Fair Value
 

Nonvested at January 1, 2018

     600      $                   6.88  

Granted

     333      $ 6.84  

Vested

     (272    $ 7.16  

Forfeited or expired

     -      $ -  
  

 

 

    

Nonvested at June 30, 2018

     661      $ 6.74  
  

 

 

    
Summary of Nonvested Restricted Shares and Restricted Stock Units

The following table summarizes nonvested restricted shares/RSUs activity as of June 30, 2018 and for the six months then ended:

 

Nonvested Restricted Shares and RSUs

     Shares (000s)        Weighted
Average
Grant-Date
Fair Value
 

Nonvested at January 1, 2018

     1,109      $             28.50  

Granted

     488      $ 28.15  

Vested

     (323    $ 25.78  

Forfeited or expired

     (59    $ 27.00  
  

 

 

    

Nonvested at June 30, 2018

     1,215      $ 29.15  
  

 

 

    
Summary of Weighted Average Grant-Date Fair Value Granted and Total Fair Value of Restricted Shares and Restricted Stock Units Vested

The following table summarizes information regarding restricted shares/RSUs granted and vested (in thousands, except per restricted share/RSU amounts):

 

             Six Months Ended June 30,          
     2018      2017  

Number of restricted shares/RSUs granted

     488        480  

Weighted average grant-date fair value per restricted share/RSU

   $ 28.15      $ 29.42  

Fair value of restricted shares/RSUs vested

   $             8,342      $             6,868  
Summary of Nonvested Common Stock Units and Share Awards

The following table summarizes nonvested common stock share award activity as of June 30, 2018 and for the six months then ended:

 

Nonvested Common Stock Share Awards

     Shares (000s)        Weighted
Average
Grant-Date
Fair Value
 

Nonvested at January 1, 2018

     8      $ 32.21  

Granted

     34      $                 27.68  

Vested

     (15    $ 29.87  

Forfeited or expired

     -      $ -  
  

 

 

    

Nonvested at June 30, 2018

     27      $ 27.73  
  

 

 

    
Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Total Fair Value of Common Stock Units and Share Awards Vested

The following table summarizes information regarding common stock share awards granted and vested (in thousands, except per share award amounts):

 

         Six Months Ended June 30,      
     2018      2017  

Number of share awards granted

     34        24  

Weighted average grant-date fair value per share award

   $ 27.68      $ 32.93  

Fair value of share awards vested

   $             450      $             430  
Summary of Nonvested Common Stock

The following table summarizes nonvested common stock activity as of June 30, 2018 and for the six months then ended:

 

Nonvested Common Stock

     Shares (000s)        Weighted
Average
Grant-Date
Fair Value
 

Nonvested at January 1, 2018

     3      $               29.56  

Granted

     10      $ 28.86  

Vested

     (7    $ 28.89  

Forfeited or expired

     -      $ -  
  

 

 

    

Nonvested at June 30, 2018

     6      $ 29.19  
  

 

 

    
Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation

The following table summarizes information regarding shares of common stock granted and vested (in thousands, except per common stock amounts):

 

          Six Months Ended June 30,        
    2018     2017  

Number of shares of common stock granted

    10       10  

Weighted average grant-date fair value per common stock

  $ 28.86     $ 30.66  

Fair value of common stock vested

  $ 213     $ 240  

Cash used to settle the obligation

  $ 644     $ 422  
v3.10.0.1
Segments and Geographic Information (Tables)
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Company's Reportable Segments

Information about the Company’s reportable segments is as follows (in thousands):

 

       Americas       EMEA         Other (1)         Consolidated  

Three Months Ended June 30, 2018:

        

Revenues

   $ 327,041     $       69,720     $ 24     $ 396,785  

Percentage of revenues

     82.4     17.6     0.0     100.0

Depreciation, net

   $ 12,335     $ 1,476     $ 749     $ 14,560  

Amortization of intangibles

   $ 3,415     $ 214     $ -     $ 3,629  

Income (loss) from operations

   $ 19,824     $ 2,220     $ (15,584   $ 6,460  

Total other income (expense), net

         (1,511     (1,511

Income taxes

         2,229       2,229  
        

 

 

 

Net income

         $ 7,178  
        

 

 

 

Three Months Ended June 30, 2017:

        

Revenues

   $ 314,871     $ 60,540     $ 27     $ 375,438  

Percentage of revenues

     83.9     16.1     0.0     100.0

Depreciation, net

   $ 11,842     $ 1,254     $ 724     $ 13,820  

Amortization of intangibles

   $ 4,989     $ 261     $ -     $ 5,250  

Income (loss) from operations

   $ 26,127     $ 2,163     $ (16,962)     $ 11,328  

Total other income (expense), net

         (928     (928

Income taxes

         (1,555     (1,555
        

 

 

 

Net income

         $ 8,845  
        

 

 

 

Six Months Ended June 30, 2018:

        

Revenues

   $ 667,762     $ 143,347     $ 47     $ 811,156  

Percentage of revenues

     82.3     17.7     0.0     100.0

Depreciation, net

   $ 25,018     $ 2,887     $ 1,491     $ 29,396  

Amortization of intangibles

   $ 7,407     $ 435     $ -     $ 7,842  

Income (loss) from operations

   $ 45,688     $ 6,859     $ (31,803)     $ 20,744  

Total other income (expense), net

         (2,391     (2,391

Income taxes

         (227     (227
        

 

 

 

Net income

         $ 18,126  
        

 

 

 

Six Months Ended June 30, 2017:

        

Revenues

   $ 635,802     $ 123,607     $ 43     $ 759,452  

Percentage of revenues

     83.7     16.3     0.0     100.0

Depreciation, net

   $ 23,310     $ 2,440     $ 1,418     $ 27,168  

Amortization of intangibles

   $ 9,967     $ 514     $     $ 10,481  

Income (loss) from operations

   $ 64,099     $ 7,743     $ (34,461)     $ 37,381  

Total other income (expense), net

         (1,659     (1,659

Income taxes

         (8,165     (8,165
        

 

 

 

Net income

         $ 27,557  
        

 

 

 

(1) Other items (including corporate and other costs, other income and expense, and income taxes) are included for purposes of reconciling to the Company’s consolidated totals as shown in the tables above for the periods shown. Inter-segment revenues are not material to the Americas and EMEA segment results.

Operations by Geographic Location

The following table represents a disaggregation of revenue from contracts with customers by geographic location for the three and six months ended June 30, 2018 and 2017, by the reportable segment for each category (in thousands):

 

       Three Months Ended June 30,            Six Months Ended June 30,      
     2018      2017      2018      2017  

Americas:

           

United States

   $ 165,648      $ 151,654      $ 337,094      $ 305,298  

The Philippines

     56,571        56,779        116,657        115,319  

Costa Rica

     30,973        32,924        63,048        66,249  

Canada

     24,828        27,020        52,017        56,742  

El Salvador

     20,584        18,369        40,595        36,714  

People’s Republic of China

     8,149        9,282        17,497        18,542  

Australia

     7,700        6,440        15,402        13,090  

Mexico

     5,632        5,832        11,950        11,441  

Other

     6,956        6,571        13,502        12,407  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Americas

     327,041        314,871        667,762        635,802  
  

 

 

    

 

 

    

 

 

    

 

 

 

EMEA:

           

Germany

     22,404        18,457        46,579        38,894  

Sweden

     13,674        14,043        27,804        28,344  

United Kingdom

     11,960        9,407        25,307        19,140  

Romania

     8,191        6,685        16,327        13,078  

Other

     13,491        11,948        27,330        24,151  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total EMEA

     69,720        60,540        143,347        123,607  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Other

     24        27        47        43  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 396,785      $ 375,438      $ 811,156      $ 759,452  
  

 

 

    

 

 

    

 

 

    

 

 

 
v3.10.0.1
Other Income (Expense) (Tables)
6 Months Ended
Jun. 30, 2018
Other Income and Expenses [Abstract]  
Other Income (Expense), Net

Other income (expense), net consists of the following (in thousands):

 

       Three Months Ended June 30,           Six Months Ended June 30,      
     2018     2017     2018     2017  

Foreign currency transaction gains (losses)

   $ 641     $ (535   $ 2,089     $ 644  

Gains (losses) on derivative instruments not designated as hedges

     (345     1,097       (1,427     397  

Other miscellaneous income (expense)

     (833     231       (1,044     565  
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ (537   $ 793     $ (382   $ 1,606  
  

 

 

   

 

 

   

 

 

   

 

 

 
v3.10.0.1
Overview and Basis of Presentation - Additional Information (Detail)
$ in Millions
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jul. 09, 2018
USD ($)
Jul. 09, 2018
AUD ($)
Dec. 20, 2017
May 31, 2017
USD ($)
Apr. 24, 2017
Jul. 31, 2017
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
Segment
Jun. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
Jan. 01, 2018
USD ($)
Jan. 01, 2017
USD ($)
Dec. 31, 2016
USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Number of reportable segments | Segment                 2          
Statutory federal income tax rate             21.00% 35.00% 21.00% 35.00%        
Increase in cash, cash equivalents and restricted cash             $ 163,443,000 $ 302,432,000 $ 163,443,000 $ 302,432,000 $ 344,805,000     $ 267,594,000
XSell Technologies Inc [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Equity method investment, ownership percentage           32.80%                
Equity method investment paid           $ 5,000,000                
Deferred Charges and Other Assets [Member] | XSell Technologies Inc [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Equity method investment           $ 10,000,000 9,600,000   9,600,000   9,800,000      
Other Accrued Expenses and Current Liabilities [Member] | XSell Technologies Inc [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Remaining payment on equity method investment             5,000,000   5,000,000   $ 5,000,000      
Other Income (Expense), Net [Member] | XSell Technologies Inc [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Income (loss) from equity method investments             (100,000) 0 (300,000) 0        
Direct Salaries and Related Costs [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Total advertising costs             12,000,000 8,600,000 22,000,000 18,400,000        
General and Administrative [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Total advertising costs             $ 100,000 100,000            
Accounting Standards Update 2016-18 [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Increase in cash, cash equivalents and restricted cash               $ 1,000,000   1,000,000   $ 1,100,000 $ 900,000  
Maximum [Member] | General and Administrative [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Total advertising costs                 $ 100,000 $ 100,000        
US Federal Rate Prior To The 2017 Tax Reform Act [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Statutory federal income tax rate     35.00%         35.00%   35.00% 35.00%      
US 2017 Tax Reform Act [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Statutory federal income tax rate             21.00%   21.00%          
Global 2000 Telecommunications Services Provider [Member] | Americas [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Effective date of acquisition         May 31, 2017                  
Aggregate purchase price       $ 7,500,000                    
Property and equipment acquired       6,000,000                    
Date of Acquisition agreement         Apr. 24, 2017                  
Global 2000 Telecommunications Services Provider [Member] | Americas [Member] | Customer Relationships [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Intangibles acquired       $ 1,500,000                    
WhistleOut [Member] | Subsequent Event [Member]                            
Organization Consolidation And Presentation Of Financial Statements [Line Items]                            
Effective date of acquisition Jul. 09, 2018 Jul. 09, 2018                        
Aggregate purchase price $ 22,400,000 $ 30.2                        
v3.10.0.1
Overview and Basis of Presentation - Summary of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Jun. 30, 2017
Dec. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]        
Cash and cash equivalents $ 162,422 $ 343,734 $ 301,451 $ 266,675
Cash and Cash Equivalents and Restricted Cash 163,443 344,805 302,432 267,594
Other Current Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Other current assets" 153 154 158 160
Deferred Charges and Other Assets [Member]        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash included in "Deferred charges and other assets" $ 868 $ 917 $ 823 $ 759
v3.10.0.1
Overview and Basis of Presentation - Schedule of Impact of Adopting ASU 2017-07 on Statement of Operations (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Direct salaries and related costs $ 264,924 $ 248,615 $ 539,996 $ 495,751
General and administrative 102,037 92,236 204,477 184,280
Income from operations 6,460 11,328 20,744 37,381
Other income (expense), net $ (537) 793 $ (382) 1,606
As Previously Reported [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Direct salaries and related costs   248,643   495,808
General and administrative   92,246   184,300
Income from operations   11,290   37,304
Other income (expense), net   831   1,683
Accounting Standards Update 2017-07 [Member] | Adjustments Due to the Adoption of ASU 2017-07 [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Direct salaries and related costs   (28)   (57)
General and administrative   (10)   (20)
Income from operations   38   77
Other income (expense), net   $ (38)   $ (77)
v3.10.0.1
Revenues - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Jan. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Revenue, performance obligation satisfied over time, method used, description     The Company recognizes revenues over time using output methods such as a per minute, per hour, per call, per transaction or per time and materials basis.    
Stated contract term     30 days to six years    
Non-cancelable contract term     Varying periods up to 180 days    
Description of payment terms     The Company’s primary billing terms are that payment is due upon receipt of the invoice, payable usually within 30 or 60 days.    
Percentage of revenue 100.00% 100.00% 100.00% 100.00%  
Deferred revenue recognized in the period $ 300   $ 4,200    
Revenue remaining performance obligation expected timing of satisfaction explanation     The Company expects to recognize its deferred revenue as of June 30, 2018 over the next 180 days.    
Refund liabilities timing of resolution explanation     Refund liabilities are generally resolved in 180 days, once it is determined whether the requisite service levels and client requirements were achieved to settle the contingency.    
Accounting Standards Update 2014-09 [Member]          
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Retained earnings 3,019   $ 3,019    
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]          
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Retained earnings $ 3,019   $ 3,019   $ 3,000
Other Revenues [Member]          
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Percentage of revenue 0.60% 0.50% 0.60% 0.60%  
v3.10.0.1
Revenues - Summary of Impact of Adoption of Accounting Standards (Detail) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Jan. 01, 2018
Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Receivables, net $ 347,885   $ 347,885   $ 342,783 $ 341,958
Deferred charges and other assets 32,698   32,698   31,238 29,193
Income taxes payable 843   843   3,303 2,606
Deferred revenue and customer liabilities 32,503   32,503   33,669 34,717
Other long-term liabilities 25,250   25,250   22,241 22,039
Retained earnings 567,988   567,988   549,862 $ 546,843
Revenues 396,785 $ 375,438 811,156 $ 759,452    
Income from operations 6,460 11,328 20,744 37,381    
Income before income taxes 4,949 10,400 18,353 35,722    
Income taxes (2,229) 1,555 227 8,165    
Net income $ 7,178 $ 8,845 $ 18,126 $ 27,557    
Net income per common share:            
Basic $ 0.17 $ 0.21 $ 0.43 $ 0.66    
Diluted $ 0.17 $ 0.21 $ 0.43 $ 0.66    
Balances Without the Impact of the ASC 606 Adoption [Member] | Accounting Standards Update 2014-09 [Member]            
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Receivables, net $ 345,932   $ 345,932      
Deferred charges and other assets 28,280   28,280      
Income taxes payable (733)   (733)      
Deferred revenue and customer liabilities 34,585   34,585      
Other long-term liabilities 25,524   25,524      
Retained earnings 560,837   560,837      
Revenues 394,483   805,759      
Income from operations 4,158   15,347      
Income before income taxes 2,647   12,956      
Income taxes (2,804)   (1,038)      
Net income $ 5,451   $ 13,994      
Net income per common share:            
Basic $ 0.13   $ 0.33      
Diluted $ 0.13   $ 0.33      
Effect of Adoption Increase (Decrease) [Member] | Accounting Standards Update 2014-09 [Member]            
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]            
Receivables, net $ 1,953   $ 1,953   825  
Deferred charges and other assets 4,418   4,418   2,045  
Income taxes payable 1,576   1,576   697  
Deferred revenue and customer liabilities (2,082)   (2,082)   (1,048)  
Other long-term liabilities (274)   (274)   202  
Retained earnings 7,151   7,151   $ 3,019  
Revenues 2,302   5,397      
Income from operations 2,302   5,397      
Income before income taxes 2,302   5,397      
Income taxes 575   1,265      
Net income $ 1,727   $ 4,132      
Net income per common share:            
Basic $ 0.04   $ 0.10      
Diluted $ 0.04   $ 0.10      
v3.10.0.1
Revenues - Revenues from Contracts with Customers Disaggregated by Service Type (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Disaggregation of Revenue [Line Items]        
Revenues $ 396,785 $ 375,438 $ 811,156 $ 759,452
Americas [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 327,041 314,871 667,762 635,802
Americas [Member] | Customer Engagement Services [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 326,766 314,603 667,188 635,265
Americas [Member] | Other Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 275 268 574 537
EMEA [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 69,720 60,540 143,347 123,607
EMEA [Member] | Customer Engagement Services [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 67,772 58,836 139,443 119,905
EMEA [Member] | Other Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 1,948 1,704 3,904 3,702
Other Segment [Member]        
Disaggregation of Revenue [Line Items]        
Revenues 24 27 47 43
Other Segment [Member] | Other Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenues $ 24 $ 27 $ 47 $ 43
v3.10.0.1
Revenues - Summary of Trade Accounts Receivable, Net (Detail) - USD ($)
$ in Thousands
Jun. 30, 2018
Jan. 01, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net $ 339,432 $ 334,092
Receivables Net, Current [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net, current 334,818 332,014
Deferred Charges and Other Assets [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Trade accounts receivable, net, noncurrent $ 4,614 $ 2,078
v3.10.0.1
Revenues - Summary of Trade Accounts Receivable, Net (Parenthetical) (Detail) - Accounting Standards Update 2014-09 [Member] - Effect of Adoption Increase (Decrease) [Member]
$ in Millions
Jan. 01, 2018
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Trade accounts receivable, net, current $ 0.8
Trade accounts receivable, net, noncurrent $ 2.1
v3.10.0.1
Revenues - Components of Deferred Revenue and Customer Liabilities (Detail) - USD ($)
$ in Thousands
Jun. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Schedule of Deferred Revenue and Customer Liabilities [Line Items]      
Deferred revenue and customer liabilities $ 32,503 $ 33,669 $ 34,717
Deferred Revenue and Customer Liabilities [Member]      
Schedule of Deferred Revenue and Customer Liabilities [Line Items]      
Deferred revenue 4,900 4,598  
Customer arrangements with termination rights 18,498 21,755  
Estimated refund liabilities $ 9,105 $ 7,316  
v3.10.0.1
Revenues - Components of Deferred Revenue and Customer Liabilities (Parenthetical) (Detail)
$ in Millions
Jan. 01, 2018
USD ($)
Accounting Standards Update 2014-09 [Member] | Effect of Adoption Increase (Decrease) [Member]  
Deferred Revenue and Customer Liabilities [Abstract]  
Estimated refund liabilities $ 1.0
v3.10.0.1
Costs Associated with Exit or Disposal Activities - Cumulative Costs Expected and Incurred as a Result of Exit Plan (Detail) - 2018 Exit Plan [Member] - Americas [Member]
$ in Thousands
Jun. 30, 2018
USD ($)
Restructuring Cost and Reserve [Line Items]  
Costs Expected To Be Incurred $ 16,056
Cumulative Costs Incurred To Date 8,824
Expected Remaining Costs 7,232
Non-Cash Impairment Charges [Member]  
Restructuring Cost and Reserve [Line Items]  
Costs Expected To Be Incurred 5,175
Cumulative Costs Incurred To Date 5,175
General and Administrative [Member] | Lease Obligations and Facility Exit Costs [Member]  
Restructuring Cost and Reserve [Line Items]  
Costs Expected To Be Incurred 6,692
Cumulative Costs Incurred To Date 3,028
Expected Remaining Costs 3,664
General and Administrative [Member] | Severance and Related Costs [Member]  
Restructuring Cost and Reserve [Line Items]  
Costs Expected To Be Incurred 488
Cumulative Costs Incurred To Date 219
Expected Remaining Costs 269
Direct Salaries and Related Costs [Member] | Severance and Related Costs [Member]  
Restructuring Cost and Reserve [Line Items]  
Costs Expected To Be Incurred 3,701
Cumulative Costs Incurred To Date 402
Expected Remaining Costs $ 3,299
v3.10.0.1
Costs Associated with Exit or Disposal Activities - Summary of Accrued Liability and Related Charges (Detail) - Americas [Member] - 2018 Exit Plan [Member] - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2018
Restructuring Reserve [Roll Forward]    
Balance at the beginning of the period $ 0 $ 0
Cash payments (560) (560)
Balance sheet reclassifications 216 216
Balance at the end of the period 3,305 3,305
Lease Obligations and Facility Exit Costs [Member]    
Restructuring Reserve [Roll Forward]    
Balance at the beginning of the period 0 0
Cash payments (429) (429)
Balance sheet reclassifications 216 216
Balance at the end of the period 2,815 2,815
Severance and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Balance at the beginning of the period 0 0
Cash payments (131) (131)
Balance at the end of the period 490 490
Direct Salaries and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges 402 402
Direct Salaries and Related Costs [Member] | Severance and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges 402 402
General and Administrative [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges 3,247 3,247
General and Administrative [Member] | Lease Obligations and Facility Exit Costs [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges 3,028 3,028
General and Administrative [Member] | Severance and Related Costs [Member]    
Restructuring Reserve [Roll Forward]    
Restructuring charges $ 219 $ 219
v3.10.0.1
Costs Associated with Exit or Disposal Activities - Summary of Company's Short-term and Long-term Accrued Liability with Exit Plan (Detail) - 2018 Exit Plan [Member] - Americas [Member] - USD ($)
$ in Thousands
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]      
Ending accrual at June 30, 2018 $ 3,305 $ 0 $ 0
Other Accrued Expenses and Current Liabilities [Member]      
Restructuring Cost and Reserve [Line Items]      
Short-term accrued restructuring liability 2,726    
Accrued Employee Compensation and Benefits [Member]      
Restructuring Cost and Reserve [Line Items]      
Short-term accrued restructuring liability 490    
Other Long-Term Liabilities [Member]      
Restructuring Cost and Reserve [Line Items]      
Long-term accrued restructuring liability $ 89    
v3.10.0.1
Cost Associated with Exit or Disposal Activities - Additional Information (Detail)
6 Months Ended
Jun. 30, 2018
Americas [Member] | 2018 Exit Plan [Member]  
Restructuring Cost and Reserve [Line Items]  
Lease termination date Sep. 30, 2019
v3.10.0.1
Fair Value - Additional Information (Detail) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 6 Months Ended
May 31, 2017
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Payments of contingent consideration related to acquisitions         $ 4,528
Impairment charge   $ 5,175 $ 4,189 $ 8,701 4,391
Land [Member] | Property and Equipment [Member] | Americas [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Impairment charge         200
Costumer Contact Management Center [Member] | Leasehold Improvements Equipment Furniture and Fixtures [Member] | Property and Equipment [Member] | U.S. and Canada [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Impairment charge   $ 5,200 4,200 $ 8,700 4,200
Qelp [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Payments of contingent consideration related to acquisitions $ 4,400       4,400
Qelp [Member] | Measurement Input, Discount Rate [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Fair value discount rate   14.00%   14.00%  
Clearlink [Member] | Measurement Input, Discount Rate [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Fair value discount rate   10.00%   10.00%  
Clearlink [Member] | General and Administrative [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Fair value gain (loss) adjustments on contingent consideration     268   701
Clearlink [Member] | General and Administrative [Member] | (Gain) Loss Due to Changes in the Probability of Achievement of Revenue Targets [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Fair value gain (loss) adjustments on contingent consideration     $ 300   $ 700
v3.10.0.1
Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Assets:    
Derivative Assets $ 1,354 $ 3,900
Total assets 13,218 15,527
Liabilities:    
Derivative Liabilities 2,501 835
Total liabilities 2,501 835
Foreign Currency Forward and Option Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]    
Liabilities:    
Derivative Liabilities 1,903 256
Foreign Currency Forward and Option Contracts [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]    
Assets:    
Derivative Assets 1,354 3,848
Embedded Derivatives [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]    
Assets:    
Derivative Assets   52
Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]    
Liabilities:    
Derivative Liabilities 598 579
Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 8,557 8,094
Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 3,307 3,533
Quoted Prices in Active Markets For Identical Assets Level 1 [Member]    
Assets:    
Total assets 11,864 11,627
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Equity Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 8,557 8,094
Quoted Prices in Active Markets For Identical Assets Level 1 [Member] | Debt Investments Held in Rabbi Trust for the Deferred Compensation Plan [Member] | Other Current Assets [Member]    
Assets:    
Investments held in rabbi trust for the Deferred Compensation Plan 3,307 3,533
Significant Other Observable Inputs Level 2 [Member]    
Assets:    
Total assets 1,354 3,848
Liabilities:    
Total liabilities 1,903 256
Significant Other Observable Inputs Level 2 [Member] | Foreign Currency Forward and Option Contracts [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]    
Liabilities:    
Derivative Liabilities 1,903 256
Significant Other Observable Inputs Level 2 [Member] | Foreign Currency Forward and Option Contracts [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]    
Assets:    
Derivative Assets 1,354 3,848
Significant Unobservable Inputs Level 3 [Member]    
Assets:    
Total assets   52
Liabilities:    
Total liabilities 598 579
Significant Unobservable Inputs Level 3 [Member] | Embedded Derivatives [Member] | Other Current Assets, Deferred Charges and Other Assets [Member]    
Assets:    
Derivative Assets   52
Significant Unobservable Inputs Level 3 [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities and Other Accrued Expenses and Current Liabilities [Member]    
Liabilities:    
Derivative Liabilities $ 598 $ 579
v3.10.0.1
Fair Value - Rollforward of Net Asset (Liability) Activity of Fair Value of Embedded Derivatives (Detail) - Embedded Derivatives [Member] - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]        
Balance at the beginning of the period $ (409) $ (375) $ (527) $ (555)
Settlements 38 25 80 70
Effect of foreign currency 25 3 14 (1)
Balance at the end of the period (598) (171) (598) (171)
Other Income (Expense), Net [Member]        
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]        
Gains (losses) recognized in "Other income (expense), net" (252) 176 (165) 315
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]        
Change in unrealized gains (losses) included in "Other income (expense), net" related to embedded derivatives held at the end of the period $ (253) $ 48 $ (171) $ 183
v3.10.0.1
Fair Value - Rollforward of Fair Value of Contingent Consideration (Liability) (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Contingent consideration (liability), Beginning Balance $ (5,633) $ (6,100)
Imputed interest (34) (68)
Settlements 4,402 4,528
Effect of foreign currency (130) (188)
Contingent Consideration (liability), Ending Balance (1,127) (1,127)
General and Administrative [Member]    
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]    
Change in unrealized gains (losses) included in "General and administrative" related to contingent consideration outstanding at the end of the period 268 268
Clearlink [Member] | General and Administrative [Member]    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Fair value gain (loss) adjustments $ 268 $ 701
v3.10.0.1
Fair Value - Summary of Total Impairment Losses Related to Nonrecurring Fair Value Measurements of Certain Assets (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]        
Impairment of long-lived assets $ (5,175) $ (4,189) $ (8,701) $ (4,391)
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Property and Equipment [Member] | Americas [Member]        
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]        
Impairment of long-lived assets $ (5,175) $ (4,189) $ (8,701) $ (4,391)
v3.10.0.1
Goodwill and Intangible Assets - Company's Purchased Intangible Assets (Detail) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 252,876 $ 246,428
Accumulated Amortization (113,047) (106,151)
Net Intangibles $ 139,829 $ 140,277
Weighted Average Amortization Period (years) 5 years 6 years
Customer Relationships [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 169,749 $ 170,853
Accumulated Amortization (100,859) (95,175)
Net Intangibles $ 68,890 $ 75,678
Weighted Average Amortization Period (years) 10 years 10 years
Trade Name and Trademarks [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 14,135 $ 14,138
Accumulated Amortization (9,651) (8,797)
Net Intangibles $ 4,484 $ 5,341
Weighted Average Amortization Period (years) 7 years 7 years
Non-Compete Agreements [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 1,820 $ 1,820
Accumulated Amortization (1,356) (1,052)
Net Intangibles $ 464 $ 768
Weighted Average Amortization Period (years) 3 years 3 years
Content Library [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 526 $ 542
Accumulated Amortization $ (526) $ (542)
Weighted Average Amortization Period (years) 2 years 2 years
Proprietary Software [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 1,040 $ 1,040
Accumulated Amortization (655) (585)
Net Intangibles $ 385 $ 455
Weighted Average Amortization Period (years) 4 years 4 years
Domain Names Not Subject To Amortization [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Intangibles $ 65,606 $ 58,035
Net Intangibles $ 65,606 $ 58,035
v3.10.0.1
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Detail)
$ in Thousands
Jun. 30, 2018
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
2018 (remaining six months) $ 7,230
2019 14,022
2020 11,348
2021 6,799
2022 5,714
2023 4,882
2024 and thereafter $ 24,228
v3.10.0.1
Goodwill and Intangible Assets - Changes in Goodwill (Detail) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Goodwill [Line Items]    
Beginning Balance, Goodwill Net $ 269,265 $ 265,404
Acquisition   390
Effect of Foreign Currency (3,274) 3,471
Ending Balance, Goodwill Net 265,991 269,265
Americas [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 258,496 255,842
Acquisition   390
Effect of Foreign Currency (2,872) 2,264
Ending Balance, Goodwill Net 255,624 258,496
EMEA [Member]    
Goodwill [Line Items]    
Beginning Balance, Goodwill Net 10,769 9,562
Effect of Foreign Currency (402) 1,207
Ending Balance, Goodwill Net $ 10,367 $ 10,769
v3.10.0.1
Goodwill and Intangible Assets - Additional Information (Detail)
3 Months Ended 12 Months Ended
Jun. 30, 2018
USD ($)
Dec. 31, 2017
USD ($)
Reporting_Unit
Dec. 31, 2016
USD ($)
Goodwill [Line Items]      
Number of reporting units | Reporting_Unit   6  
Number of reporting units, fair value in excess of carrying value | Reporting_Unit   4  
Goodwill $ 265,991,000 $ 269,265,000 $ 265,404,000
Qelp [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill 10,400,000    
Clearlink [Member]      
Goodwill [Line Items]      
Goodwill Impairment Loss 0    
Goodwill $ 71,000,000    
v3.10.0.1
Financial Derivatives - Deferred Gains (Losses) and Related Taxes on Cash Flow Hedges (Detail) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Deferred gains (losses) in AOCI $ (999) $ 2,550
Tax on deferred gains (losses) in AOCI 96 (79)
Deferred gains (losses) in AOCI, net of taxes (903) $ 2,471
Deferred gains (losses) expected to be reclassified to "Revenues" from AOCI during the next twelve months $ (882)  
v3.10.0.1
Financial Derivatives - Additional Information (Detail) - USD ($)
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Maximum period of foreign currency hedge contracts 180 days  
Maximum amount of loss due to credit risk $ 1,400,000 $ 3,800,000
Total net settlement amount asset positions 900,000 3,600,000
Total net settlement amount liability positions $ 1,400,000 $ 0
v3.10.0.1
Financial Derivatives - Outstanding Foreign Currency Forward Contracts, Options and Embedded Derivatives (Detail) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Option Contracts [Member] | US Dollars/Philippine Pesos [Member]    
Derivative [Line Items]    
Notional Amount $ 61,750 $ 78,000
Settle Through Date Sep. 30, 2019 Dec. 31, 2018
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | US Dollars/Philippine Pesos [Member]    
Derivative [Line Items]    
Notional Amount $ 53,400 $ 3,000
Settle Through Date Sep. 30, 2019 Jun. 30, 2018
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | US Dollars/Costa Rican Colones [Member]    
Derivative [Line Items]    
Notional Amount $ 82,500 $ 70,000
Settle Through Date Aug. 31, 2019 Mar. 31, 2019
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Hungarian Forints [Member]    
Derivative [Line Items]    
Notional Amount $ 1,726 $ 3,554
Settle Through Date Dec. 31, 2018 Dec. 31, 2018
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Forwards [Member] | Euros/Romanian Leis [Member]    
Derivative [Line Items]    
Notional Amount $ 6,894 $ 13,977
Settle Through Date Dec. 31, 2018 Dec. 31, 2018
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Forwards [Member]    
Derivative [Line Items]    
Notional Amount $ 6,153 $ 9,253
Settle Through Date Sep. 30, 2018 Mar. 31, 2018
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member]    
Derivative [Line Items]    
Notional Amount $ 12,676 $ 13,519
Settle Through Date Apr. 30, 2030 Apr. 30, 2030
v3.10.0.1
Financial Derivatives - Derivative Instruments Fair Value (Detail) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Derivatives, Fair Value [Line Items]    
Derivative Assets $ 1,354 $ 3,900
Derivative Liabilities 2,501 835
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets   244
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 179  
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets   9
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Deferred Charges and Other Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets   43
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Accrued Expenses and Current Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 108 189
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member] | Other Long-Term Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 490 390
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Option Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 1,354 3,604
Derivative Liabilities 1,724 256
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Current Assets [Member] | Option Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 1,343 3,604
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Deferred Charges and Other Assets [Member] | Option Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Assets 11  
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Accrued Expenses and Current Liabilities [Member] | Option Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 1,595 175
Cash Flow Hedges [Member] | Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member] | Other Long-Term Liabilities [Member] | Option Contracts [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities $ 129 $ 81
v3.10.0.1
Financial Derivatives - Effect of Company's Derivative Instruments (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Derivative Instruments, Gain (Loss) [Line Items]        
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) $ (305) $ (6,006) $ (3,001) $ (6,839)
Gain (Loss) Reclassified From AOCI Into "Revenues" (Effective Portion) 191 (820) 428 (1,580)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) 2   8  
Gain (Loss) Recognized in Other Income (Expense) on Derivatives (345) 1,097 (1,427) 397
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Cash Flow Hedges [Member] | Foreign Currency Forward Contracts [Member] | Option Contracts [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) (305) (1,232) (3,001) (1,466)
Gain (Loss) Reclassified From AOCI Into "Revenues" (Effective Portion) 191 (820) 428 (1,580)
Gain (Loss) Recognized in "Revenues" on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) 2   8  
Derivatives Designated as Hedging Instruments under ASC 815 [Member] | Net Investment Hedges [Member] | Foreign Currency Forward Contracts [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)   (4,774)   (5,373)
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain (Loss) Recognized in Other Income (Expense) on Derivatives (345) 1,097 (1,427) 397
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Currency Forward Contracts [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain (Loss) Recognized in Other Income (Expense) on Derivatives (93) 921 (1,262) 82
Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Embedded Derivatives [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Gain (Loss) Recognized in Other Income (Expense) on Derivatives $ (252) $ 176 $ (165) $ 315
v3.10.0.1
Investments Held in Rabbi Trust - Investments Held in Rabbi Trust, Classified as Trading (Detail) - Mutual Funds [Member] - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Cost $ 8,252 $ 8,096
Other Current Assets [Member]    
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Mutual funds, Fair Value $ 11,864 $ 11,627
v3.10.0.1
Investments Held in Rabbi Trust - Additional Information (Detail)
Jun. 30, 2018
Equity-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 72.00%
Debt-Based Securities [Member]  
Schedule of Trading Securities and Other Trading Assets [Line Items]  
Mutual funds held in rabbi trust 28.00%
v3.10.0.1
Investments Held in Rabbi Trust - Components of Investment Income (Losses), Included in Other Income (Expense), Net in Accompanying Consolidated Statements of Operations (Detail) - Other Income (Expense), Net [Member] - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Schedule of Trading Securities and Other Trading Assets [Line Items]        
Net realized gains (losses) from sale of trading securities $ 27 $ 149 $ 32 $ 149
Dividend and interest income 43 25 68 39
Net unrealized holding gains (losses) 72 149 17 542
Net investment income (losses) $ 142 $ 323 $ 117 $ 730
v3.10.0.1
Deferred Grants - Schedule of Deferred Grants, Net of Accumulated Amortization (Detail) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Deferred Revenue Arrangement [Line Items]    
Lease grants $ 441 $ 507
Employment grants 68 61
Total deferred grants 3,096 3,411
Total long-term deferred grants 2,913 3,233
Long Term Deferred Grants Net [Member]    
Deferred Revenue Arrangement [Line Items]    
Property grants 2,587 2,843
Total long-term deferred grants 2,913 3,233
Other Accrued Expenses and Current Liabilities [Member]    
Deferred Revenue Arrangement [Line Items]    
Less: Lease grants - short-term (115) (117)
Less: Employment grants - short-term $ (68) $ (61)
v3.10.0.1
Borrowings - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Jan. 31, 2018
Jun. 30, 2018
Mar. 31, 2018
Jun. 30, 2018
Dec. 31, 2017
May 31, 2015
May 12, 2015
Line of Credit Facility [Line Items]              
Outstanding borrowings   $ 90,000,000   $ 90,000,000 $ 275,000,000    
Long-term debt repaid       190,000,000      
Current Credit Agreement [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity             $ 440,000,000
Line of credit facility, expiration date   May 12, 2020          
Outstanding borrowings   $ 90,000,000   $ 90,000,000 $ 275,000,000    
Credit agreement customary fees description     The Company is required to pay certain customary fees, including a commitment fee determined quarterly based on the Company's leverage ratio and due quarterly in arrears as calculated on the average unused amount of the Credit Agreement        
Underwriting fee for credit agreement           $ 900,000  
Long-term debt repaid $ 175,000,000            
Current Credit Agreement [Member] | Non-Voting Capital Stock Direct Foreign Subsidiaries [Member]              
Line of Credit Facility [Line Items]              
Percentage of capital stock pledged under credit agreement     100.00%        
Current Credit Agreement [Member] | Voting Capital Stock Direct Foreign Subsidiaries [Member]              
Line of Credit Facility [Line Items]              
Percentage of capital stock pledged under credit agreement     65.00%        
Prior Credit Agreement [Member]              
Line of Credit Facility [Line Items]              
Underwriting fee for credit agreement     $ 400,000        
Current Credit Agreement Alternate-Currency Sub-Facility [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity             200,000,000
Current Credit Agreement Swingline Sub-Facility [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity             10,000,000
Current Credit Agreement Letter of Credit Sub-Facility [Member]              
Line of Credit Facility [Line Items]              
Maximum borrowing capacity             $ 35,000,000
v3.10.0.1
Borrowings - Information Related to Credit Agreements (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Line of Credit Facility [Abstract]        
Average daily utilization of borrowings $ 100,110 $ 267,000 $ 110,691 $ 267,000
Interest expense $ 915 $ 1,600 $ 1,916 $ 3,043
Weighted average interest rate 3.70% 2.40% 3.50% 2.30%
v3.10.0.1
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance, accumulated other comprehensive income (loss) $ (31,104) $ (67,027)
Pre-tax amount (16,515) 30,522
Tax (provision) benefit 201 3,060
Reclassification of (gain) loss to net income (515) 2,341
Ending balance, accumulated other comprehensive income (loss) (47,933) (31,104)
Foreign Currency Translation Adjustments [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance, accumulated other comprehensive income (loss) (36,315) (72,393)
Pre-tax amount (13,522) 36,101
Foreign currency translation 216 (23)
Ending balance, accumulated other comprehensive income (loss) (49,621) (36,315)
Unrealized Gain (Loss) on Net Investment Hedge [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance, accumulated other comprehensive income (loss) 1,046 6,266
Pre-tax amount   (8,352)
Tax (provision) benefit   3,132
Ending balance, accumulated other comprehensive income (loss) 1,046 1,046
Unrealized Gain (Loss) on Cash Flow Hedging Instruments [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance, accumulated other comprehensive income (loss) 2,471 (2,225)
Pre-tax amount (2,993) 2,276
Tax (provision) benefit 194 (54)
Reclassification of (gain) loss to net income (460) 2,444
Foreign currency translation (115) 30
Ending balance, accumulated other comprehensive income (loss) (903) 2,471
Unrealized Actuarial Gain (Loss) Related to Pension Liability [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance, accumulated other comprehensive income (loss) 1,574 1,125
Pre-tax amount   527
Tax (provision) benefit 7 (18)
Reclassification of (gain) loss to net income (35) (53)
Foreign currency translation (101) (7)
Ending balance, accumulated other comprehensive income (loss) 1,445 1,574
Unrealized Gain (Loss) on Post Retirement Obligation [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance, accumulated other comprehensive income (loss) 120 200
Pre-tax amount   (30)
Reclassification of (gain) loss to net income (20) (50)
Ending balance, accumulated other comprehensive income (loss) $ 100 $ 120
v3.10.0.1
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified to Net Income from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Pre-tax amount $ 4,949 $ 10,400 $ 18,353 $ 35,722
Tax (provision) benefit (2,229) 1,555 227 8,165
Reclassification of gain (loss) to net income 7,178 8,845 18,126 27,557
Reclassification out of Accumulated Other Comprehensive Income [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Reclassification of gain (loss) to net income 237 (779) 515 (1,476)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Cash Flow Hedging Instruments [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Tax (provision) benefit 17 17 24 58
Reclassification of gain (loss) to net income 210 (803) 460 (1,522)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Actuarial Gain (Loss) Related to Pension Liability [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Tax (provision) benefit 3   6  
Reclassification of gain (loss) to net income 17 11 35 21
Reclassification out of Accumulated Other Comprehensive Income [Member] | Revenues [Member] | Gain (Loss) on Cash Flow Hedging Instruments [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Pre-tax amount 193 (820) 436 (1,580)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Income (Expense), Net [Member] | Actuarial Gain (Loss) Related to Pension Liability [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Pre-tax amount 14 11 29 21
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Income (Expense), Net [Member] | Gain (Loss) on Post Retirement Obligation [Member]        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Reclassification of gain (loss) to net income $ 10 $ 13 $ 20 $ 25
v3.10.0.1
Income Taxes - Additional Information (Detail) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Dec. 20, 2017
Jun. 30, 2018
Dec. 31, 2017
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Income Tax [Line Items]              
Effective rate of tax   (45.00%)   15.00% 1.20% 22.90%  
Statutory federal income tax rate   21.00%   35.00% 21.00% 35.00%  
Increase in benefit associated with settlement of tax audits and ancillary issues   $ (2,000,000)     $ (2,000,000)    
Decrease in amount of excess tax benefits from stock-based compensation         600,000    
Undistributed earnings of foreign subsidiaries     $ 531,800,000       $ 531,800,000
Canada Revenue Agency [Member]              
Income Tax [Line Items]              
Income tax benefit recognized on settlement of Canadian audit   $ (2,700,000)   $ (1,200,000) $ (2,700,000) $ (1,200,000)  
US Federal Rate Prior To The 2017 Tax Reform Act [Member]              
Income Tax [Line Items]              
Statutory federal income tax rate 35.00%     35.00%   35.00% 35.00%
US 2017 Tax Reform Act [Member]              
Income Tax [Line Items]              
Statutory federal income tax rate   21.00%     21.00%    
Change in tax rate, income tax expense (benefit)   $ 500,000     $ 1,100,000    
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act     32,700,000       $ 32,700
US 2017 Tax Reform Act [Member] | One-Time Transition Tax on Mandatory Deemed Repatriation of Foreign Earnings [Member]              
Income Tax [Line Items]              
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act     32,700,000       32,700,000
US 2017 Tax Reform Act [Member] | Foreign Withholding Taxes on Certain Anticipated Distributions [Member]              
Income Tax [Line Items]              
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act     1,000,000       1,000,000
US 2017 Tax Reform Act [Member] | Remeasurement of Certain Deferred Tax Assets and Liabilities [Member]              
Income Tax [Line Items]              
Additional income tax expense/benefit attributable to the enactment of the 2017 Tax Reform Act     $ (1,000,000)       $ (1,000,000)
v3.10.0.1
Earnings Per Share - Numbers of Shares Used in Earnings Per Share Computation (Detail) - shares
shares in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Basic:        
Weighted average common shares outstanding 42,125 41,854 42,035 41,756
Diluted:        
Dilutive effect of stock appreciation rights, restricted stock, restricted stock units and shares held in rabbi trust 35 80 162 163
Total weighted average diluted shares outstanding 42,160 41,934 42,197 41,919
Anti-dilutive shares excluded from the diluted earnings per share calculation 31 46 6 16
v3.10.0.1
Earnings Per Share - Additional Information (Detail) - shares
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2016
Mar. 16, 2016
Aug. 18, 2011
Equity, Class of Treasury Stock [Line Items]              
Total Number of Shares Repurchased 0 0 0 0      
2011 Share Repurchase Program [Member]              
Equity, Class of Treasury Stock [Line Items]              
Maximum amount of shares authorized for repurchase           10,000,000 5,000,000
Total Number of Shares Repurchased         5,300,000    
Increase in shares authorized for repurchase           5,000,000  
v3.10.0.1
Commitments and Loss Contingency - Schedule of Future Minimum Rental Payments under Operating Leases (Detail)
$ in Thousands
Jun. 30, 2018
USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]  
2018 (remaining six months) $ 630
2019 8,118
2020 8,520
2021 8,643
2022 7,959
2023 3,343
2024 and thereafter 8,211
Total minimum payments required $ 45,424
v3.10.0.1
Commitments and Loss Contingency - Additional Information (Detail)
6 Months Ended
Jun. 30, 2018
USD ($)
Minimum [Member]  
Long-term Purchase Commitment [Line Items]  
Term of agreements with third party vendors 1 year
Loss Contingency, net of federal benefit $ 0
Maximum [Member]  
Long-term Purchase Commitment [Line Items]  
Term of agreements with third party vendors 5 years
Loss Contingency, net of federal benefit $ 1,000,000
v3.10.0.1
Commitments and Loss Contingency - Schedule of Future Minimum Purchases Remaining under Agreements (Detail)
$ in Thousands
Jun. 30, 2018
USD ($)
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract]  
2018 (remaining six months) $ 10,237
2019 6,346
2020 1,699
2021 193
2022 0
2023 0
2024 and thereafter 0
Total minimum payments required $ 18,475
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Net Periodic Benefit Cost for Pension Plans (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]        
Service cost $ 109 $ 128 $ 223 $ 253
Interest cost 48 49 98 98
Recognized actuarial (gains) (14) (11) (29) (21)
Net periodic benefit cost $ 143 $ 166 $ 292 $ 330
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Additional Information (Detail)
6 Months Ended
Jun. 30, 2018
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
Percentage of employer's contribution based on participants contribution 50.00%
Maximum [Member]  
Pension Plans, Postretirement and Other Employee Benefits [Line Items]  
Percentage of employer's contribution based on participants compensation 2.00%
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Company's Contributions to Employee Retirement Savings Plans (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Retirement Benefits [Abstract]        
401(k) plan contributions $ 344 $ 309 $ 803 $ 620
v3.10.0.1
Defined Benefit Pension Plan and Postretirement Benefits - Post-Retirement Benefit Obligation and Unrealized Gain (Losses) (Detail) - Split-Dollar Life Insurance Arrangement [Member] - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]    
Postretirement benefit obligation $ 12 $ 15
Unrealized gains (losses) in AOCI $ 100 $ 120
v3.10.0.1
Stock-Based Compensation - Stock-Based Compensation Expense, Income Tax Benefits Related to Stock-Based Compensation and Excess Tax Benefits (Provision) Recorded by Company (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
General and Administrative [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock-based compensation (expense) $ (1,673) $ (2,261) $ (3,750) $ (4,732)
Income Taxes [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Income tax benefit $ 402 $ 871 $ 900 $ 1,822
v3.10.0.1
Stock-Based Compensation - Additional Information (Detail) - USD ($)
6 Months Ended 12 Months Ended
Dec. 06, 2016
Dec. 10, 2014
Jun. 30, 2018
Dec. 31, 2016
Jun. 30, 2016
May 18, 2012
May 16, 2012
Dec. 31, 2017
Jan. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Capitalized stock-based compensation costs     $ 0         $ 0  
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Net cumulative effect reduction to retained earnings                 $ 200,000
2011 Equity Incentive Plan [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares of common stock available under the 2011 plan     4,000,000            
2011 Equity Incentive Plan [Member] | Stock Appreciation Rights (SARs) [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period     10 years            
Share-based compensation vesting period     One-third on each of the first three anniversaries of the date of grant            
Weighted average period     1 year 6 months            
Total unrecognized compensation cost     $ 4,000,000            
2011 Equity Incentive Plan [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation vesting period     One-third on each of the first three anniversaries of the date of grant            
Weighted average period     1 year 9 months 18 days            
Total unrecognized compensation cost     $ 32,300,000            
2011 Equity Incentive Plan [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member] | Minimum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Range of vesting possibilities     0.00%            
2011 Equity Incentive Plan [Member] | Restricted Shares and Restricted Stock Units (RSU's) [Member] | Maximum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Range of vesting possibilities     100.00%            
Non-Employee Director Fee Plan [Member] | Common Stock Awards [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Plan expiration date     May 31, 2014            
Total unrecognized compensation cost     $ 700,000            
Value of initial granted shares of common stock to new non employee director     $ 60,000            
Vesting period of initial granted shares of common stock to new non employee director     Twelve equal quarterly installments, one-twelfth on the date of grant and an additional one-twelfth on each successive third monthly anniversary of the date of grant.            
Value of Annual Retainer to Non-Employee Director           $ 125,000 $ 95,000    
Annual Retainer payable in cash to Non Employee Director $ 70,000 $ 55,000       50,000 $ 50,000    
Amended vesting period of cash Annual retainer to non-employee chairman and committee members     Vested in four equal quarterly installments, one-fourth on the day following the annual meeting of shareholders, and an additional one-fourth on each successive third monthly anniversary of the date of grant            
Vesting period of annual granted shares of common stock to non-employee director     Vests in eight equal quarterly installments, one-eighth on the day following the annual meeting of shareholders, and an additional one-eighth on each successive third monthly anniversary of the date of grant            
Increased stock component of annual retainer   25,000       $ 30,000      
Vesting period for the annual equity award           1 year 2 years    
Amended vesting period of annual granted shares of common stock to non-employee director     Four equal quarterly installments, one-fourth on the date of grant and an additional one-fourth on each successive third monthly anniversary of the date of grant            
Additional annual cash award to be given to any non employee chairman of board     $ 100,000            
Additional annual cash award to be given to Chairperson of the audit committee     20,000            
Additional annual cash award to be given to audit committee members     10,000            
Annual cash awards for the members of the Compensation Committee, Finance Committee and Nominating and Corporate Governance Committee     7,500            
Annual cash awards for the Chairpersons of the Compensation Committee     15,000            
Annual cash awards for the Chairpersons of the Finance Committee     12,500            
Annual cash awards for the Chairpersons of the Nominating and Corporate Governance Committee     $ 12,500            
Annual Retainer payable in stock to Non Employee Director   100,000              
Increased cash component of annual retainer $ 15,000 $ 5,000              
Non-Employee Director Fee Plan [Member] | Common Stock Awards [Member] | Maximum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Weighted average period     1 year            
Deferred Compensation Plan [Member] | Accrued Employee Compensation and Benefits [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Accrued employee compensation and benefits     $ 11,800,000         11,600,000  
Deferred Compensation Plan [Member] | Common Stock Awards [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Weighted average period     3 years 8 months 12 days            
Total unrecognized compensation cost     $ 100,000            
Percentage of contribution in respect of amounts deferred by certain senior management participants     50.00%            
Vesting period of matching contributions and associated earnings     7 years            
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Minimum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Deferred compensation plan, percentage of employee deferral       1.00% 1.00%        
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Maximum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Amounts deferred by certain senior management personnel     $ 5,000            
Deferred compensation plan, percentage of employee deferral       80.00% 100.00%        
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Treasury Stock [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Common stock match associated with the deferred compensation plan carrying value     2,200,000         $ 2,100,000  
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | President, Chief Executive Officer and Executive Vice Presidents [Member] | Maximum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Amounts deferred by certain senior management personnel     12,000            
Deferred Compensation Plan [Member] | Common Stock Awards [Member] | Senior Vice President, Global Vice Presidents and Vice Presidents [Member] | Maximum [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Amounts deferred by certain senior management personnel     $ 7,500            
2001 Equity Incentive Plan [Member]                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Plan expiration date     Mar. 14, 2011            
v3.10.0.1
Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member]
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected volatility 21.40% 19.30%
Weighted-average volatility 21.40% 19.30%
Expected dividend rate 0.00% 0.00%
Expected term (in years) 5 years 5 years
Risk-free rate 2.50% 1.90%
v3.10.0.1
Stock-Based Compensation - Summary of Stock Appreciation Rights Activity (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding Shares, beginning balance 734  
Granted, Shares 333 396
Exercised, Shares (43)  
Forfeited or expired, Shares 0  
Outstanding Shares, ending balance 1,024  
Vested or expected to vest, Shares 1,024  
Exercisable, Shares 363  
Outstanding, Weighted Average Exercise Price, beginning balance $ 0  
Granted, Weighted Average Exercise Price 0  
Exercised, Weighted Average Exercise Price 0  
Forfeited or expired, Weighted Average Exercise Price 0  
Outstanding, Weighted Average Exercise Price, ending balance 0  
Vested or expected to vest, Weighted Average Exercise Price 0  
Exercisable, Weighted Average Exercise Price $ 0  
Outstanding, Weighted Average Remaining Contractual Term 8 years 7 months 6 days  
Vested or expected to vest, Weighted Average Remaining Contractual Term 8 years 7 months 6 days  
Exercisable, Weighted Average Remaining Contractual Term 7 years 7 months 6 days  
Outstanding, Aggregate Intrinsic Value $ 790  
Vested or expected to vest, Aggregate Intrinsic Value 790  
Exercisable, Aggregate Intrinsic Value $ 580  
v3.10.0.1
Stock-Based Compensation - Weighted Average Grant Date of SARs Granted and Total Intrinsic Value of SARs Exercised (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Granted, Shares 333 396
Weighted average grant-date fair value per SAR $ 6.84 $ 6.24
Intrinsic value of SARs exercised $ 305 $ 1,678
Fair value of vested $ 1,950 $ 1,846
v3.10.0.1
Stock-Based Compensation - Summary of Nonvested Stock Appreciation Rights (Detail) - Stock Appreciation Rights (SARs) [Member] - 2011 Equity Incentive Plan [Member] - $ / shares
shares in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Nonvested Shares, beginning balance 600  
Granted, Shares 333 396
Vested, Shares (272)  
Forfeited or expired, Shares 0  
Nonvested Shares, ending balance 661  
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance $ 6.88  
Granted, Weighted Average Grant-Date Fair Value 6.84 $ 6.24
Vested, Weighted Average Grant-Date Fair Value 7.16  
Forfeited or expired, Weighted Average Grant-Date Fair Value 0  
Nonvested, Weighted Average Grant-Date Fair Value, ending balance $ 6.74  
v3.10.0.1
Stock-Based Compensation - Summary of Nonvested Restricted Shares and Restricted Stock Units (Detail) - Restricted Shares and Restricted Stock Units (RSU's) [Member] - 2011 Equity Incentive Plan [Member] - $ / shares
shares in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Nonvested Shares, beginning balance 1,109  
Granted, Shares 488 480
Vested, Shares (323)  
Forfeited, Shares (59)  
Nonvested Shares, ending balance 1,215  
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance $ 28.50  
Granted, Weighted Average Grant-Date Fair Value 28.15 $ 29.42
Vested, Weighted Average Grant-Date Fair Value 25.78  
Forfeited or expired, Weighted Average Grant-Date Fair Value 27.00  
Nonvested, Weighted Average Grant-Date Fair Value, ending balance $ 29.15  
v3.10.0.1
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value Granted and Total Fair Value of Restricted Shares and Restricted Stock Units Vested (Detail) - Restricted Shares and Restricted Stock Units (RSU's) [Member] - 2011 Equity Incentive Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Granted, Shares 488 480
Weighted average grant-date fair value $ 28.15 $ 29.42
Fair value of vested $ 8,342 $ 6,868
v3.10.0.1
Stock-Based Compensation - Summary of Nonvested Common Stock Units and Share Awards (Detail) - Common Stock Awards [Member] - Non-Employee Director Fee Plan [Member] - $ / shares
shares in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Nonvested Shares, beginning balance 8  
Granted, Shares 34 24
Vested, Shares (15)  
Forfeited, Shares 0  
Nonvested Shares, ending balance 27  
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance $ 32.21  
Granted, Weighted Average Grant-Date Fair Value 27.68 $ 32.93
Vested, Weighted Average Grant-Date Fair Value 29.87  
Forfeited or expired, Weighted Average Grant-Date Fair Value 0  
Nonvested, Weighted Average Grant-Date Fair Value, ending balance $ 27.73  
v3.10.0.1
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Units and Share Awards Granted and Total Fair Value of Common Stock Units and Share Awards Vested (Detail) - Common Stock Awards [Member] - Non-Employee Director Fee Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Granted, Shares 34 24
Weighted average grant-date fair value $ 27.68 $ 32.93
Fair value of vested $ 450 $ 430
v3.10.0.1
Stock-Based Compensation - Summary of Nonvested Common Stock (Detail) - Common Stock Awards [Member] - Deferred Compensation Plan [Member] - $ / shares
shares in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Nonvested Shares, beginning balance 3  
Granted, Shares 10 10
Vested, Shares (7)  
Forfeited, Shares 0  
Nonvested Shares, ending balance 6  
Nonvested, Weighted Average Grant-Date Fair Value, beginning balance $ 29.56  
Granted, Weighted Average Grant-Date Fair Value 28.86 $ 30.66
Vested, Weighted Average Grant-Date Fair Value 28.89  
Forfeited or expired, Weighted Average Grant-Date Fair Value 0  
Nonvested, Weighted Average Grant-Date Fair Value, ending balance $ 29.19  
v3.10.0.1
Stock-Based Compensation - Summary of Weighted Average Grant-Date Fair Value of Common Stock Awarded and Cash Used to Settle Company's Obligation under Deferred Compensation (Detail) - Common Stock Awards [Member] - Deferred Compensation Plan [Member] - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Granted, Shares 10 10
Weighted average grant-date fair value $ 28.86 $ 30.66
Fair value of vested $ 213 $ 240
Cash used to settle the obligation $ 644 $ 422
v3.10.0.1
Segments and Geographic Information - Additional Information (Detail)
6 Months Ended
Jun. 30, 2018
Segment
Region
Segment Reporting [Abstract]  
Number of operating regions | Region 2
Number of reportable segments | Segment 2
v3.10.0.1
Segments and Geographic Information - Company's Reportable Segments (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]        
Revenues $ 396,785 $ 375,438 $ 811,156 $ 759,452
Percentage of revenues 100.00% 100.00% 100.00% 100.00%
Depreciation, net $ 14,560 $ 13,820 $ 29,396 $ 27,168
Amortization of intangibles 3,629 5,250 7,842 10,481
Income (loss) from operations 6,460 11,328 20,744 37,381
Total other income (expense), net (1,511) (928) (2,391) (1,659)
Income taxes 2,229 (1,555) (227) (8,165)
Net income 7,178 8,845 18,126 27,557
Americas [Member]        
Segment Reporting Information [Line Items]        
Revenues 327,041 314,871 667,762 635,802
Americas [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 327,041 $ 314,871 $ 667,762 $ 635,802
Percentage of revenues 82.40% 83.90% 82.30% 83.70%
Depreciation, net $ 12,335 $ 11,842 $ 25,018 $ 23,310
Amortization of intangibles 3,415 4,989 7,407 9,967
Income (loss) from operations 19,824 26,127 45,688 64,099
EMEA [Member]        
Segment Reporting Information [Line Items]        
Revenues 69,720 60,540 143,347 123,607
EMEA [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 69,720 $ 60,540 $ 143,347 $ 123,607
Percentage of revenues 17.60% 16.10% 17.70% 16.30%
Depreciation, net $ 1,476 $ 1,254 $ 2,887 $ 2,440
Amortization of intangibles 214 261 435 514
Income (loss) from operations 2,220 2,163 6,859 7,743
Other Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues $ 24 $ 27 $ 47 $ 43
Percentage of revenues 0.00% 0.00% 0.00% 0.00%
Depreciation, net $ 749 $ 724 $ 1,491 $ 1,418
Income (loss) from operations (15,584) (16,962) (31,803) (34,461)
Total other income (expense), net (1,511) (928) (2,391) (1,659)
Income taxes $ 2,229 $ (1,555) $ (227) $ (8,165)
v3.10.0.1
Segments and Geographic Information - Operation by Geographic Location (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]        
Revenue $ 396,785 $ 375,438 $ 811,156 $ 759,452
Americas [Member]        
Segment Reporting Information [Line Items]        
Revenue 327,041 314,871 667,762 635,802
Americas [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenue 327,041 314,871 667,762 635,802
Americas [Member] | Operating Segments [Member] | United States [Member]        
Segment Reporting Information [Line Items]        
Revenue 165,648 151,654 337,094 305,298
Americas [Member] | Operating Segments [Member] | The Philippines [Member]        
Segment Reporting Information [Line Items]        
Revenue 56,571 56,779 116,657 115,319
Americas [Member] | Operating Segments [Member] | Costa Rica [Member]        
Segment Reporting Information [Line Items]        
Revenue 30,973 32,924 63,048 66,249
Americas [Member] | Operating Segments [Member] | Canada [Member]        
Segment Reporting Information [Line Items]        
Revenue 24,828 27,020 52,017 56,742
Americas [Member] | Operating Segments [Member] | El Salvador [Member]        
Segment Reporting Information [Line Items]        
Revenue 20,584 18,369 40,595 36,714
Americas [Member] | Operating Segments [Member] | China [Member]        
Segment Reporting Information [Line Items]        
Revenue 8,149 9,282 17,497 18,542
Americas [Member] | Operating Segments [Member] | Australia [Member]        
Segment Reporting Information [Line Items]        
Revenue 7,700 6,440 15,402 13,090
Americas [Member] | Operating Segments [Member] | Mexico [Member]        
Segment Reporting Information [Line Items]        
Revenue 5,632 5,832 11,950 11,441
Americas [Member] | Operating Segments [Member] | Other [Member]        
Segment Reporting Information [Line Items]        
Revenue 6,956 6,571 13,502 12,407
EMEA [Member]        
Segment Reporting Information [Line Items]        
Revenue 69,720 60,540 143,347 123,607
EMEA [Member] | Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenue 69,720 60,540 143,347 123,607
EMEA [Member] | Operating Segments [Member] | Other [Member]        
Segment Reporting Information [Line Items]        
Revenue 13,491 11,948 27,330 24,151
EMEA [Member] | Operating Segments [Member] | Germany [Member]        
Segment Reporting Information [Line Items]        
Revenue 22,404 18,457 46,579 38,894
EMEA [Member] | Operating Segments [Member] | Sweden [Member]        
Segment Reporting Information [Line Items]        
Revenue 13,674 14,043 27,804 28,344
EMEA [Member] | Operating Segments [Member] | United Kingdom [Member]        
Segment Reporting Information [Line Items]        
Revenue 11,960 9,407 25,307 19,140
EMEA [Member] | Operating Segments [Member] | Romania [Member]        
Segment Reporting Information [Line Items]        
Revenue 8,191 6,685 16,327 13,078
Other Segment [Member]        
Segment Reporting Information [Line Items]        
Revenue $ 24 $ 27 $ 47 $ 43
v3.10.0.1
Other Income (Expense) - Other Income (Expense), Net (Detail) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Other Nonoperating Income (Expense) [Abstract]        
Foreign currency transaction gains (losses) $ 641 $ (535) $ 2,089 $ 644
Gains (losses) on derivative instruments not designated as hedges (345) 1,097 (1,427) 397
Other miscellaneous income (expense) (833) 231 (1,044) 565
Other income (expense) $ (537) $ 793 $ (382) $ 1,606
v3.10.0.1
Related Party Transactions - Additional Information (Detail) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended
Jan. 31, 2008
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Schedule of Other Related Party Transactions [Line Items]          
Duration of lease 20 years        
Payment to landlord under the lease terms   $ 100,000 $ 100,000 $ 200,000 $ 200,000
Equity Method Investee [Member] | XSell Technologies Inc [Member]          
Schedule of Other Related Party Transactions [Line Items]          
Payment to equity method investee   $ 100,000 $ 0 $ 100,000 $ 0
v3.10.0.1
Subsequent Event - Additional Information (Detail)
$ in Thousands, $ in Millions
6 Months Ended
Jul. 09, 2018
USD ($)
Jul. 09, 2018
AUD ($)
Jun. 30, 2018
USD ($)
Subsequent Event [Line Items]      
Additional Borrowings to Fund Acquisition     $ 5,000
WhistleOut [Member] | Subsequent Event [Member]      
Subsequent Event [Line Items]      
Aggregate purchase price $ 22,400 $ 30.2  
Effective date of acquisition Jul. 09, 2018 Jul. 09, 2018  
Earnout period 3 years 3 years  
Earnout   $ 14.0  
WhistleOut [Member] | Subsequent Event [Member] | Current Credit Agreement [Member]      
Subsequent Event [Line Items]      
Additional Borrowings to Fund Acquisition $ 22,000